Merger Arbitrage Mondays – August 15, 2011

  • August 14, 2011

Given the turmoil in global markets, it was not surprising to see that no new deals announced and only one deal closed last week. Several of the juicy spreads we saw last week in companies like optionsXpress (OXPS), Varian Semiconductor (VSEA) and Blackboard (BBBB) have narrowed considerably since then but plenty of other interesting deals still remain.

You can find all the active deals listed below in our Merger Arbitrage Tool that automatically updates itself during market hours.

Deal Statistics:

Total Number of Deals Closed in 2011 134
Total Number of Deals Not Completed in 2011 1
Total Number of Pending Deals
Cash Deals 37
Stock Deals 24
Stock & Cash Deals 11
Total Number of Pending Deals 72

Deal Updates:

  1. On August 12, 2011, Transatlantic Holdings (TRH) entered into a confidentiality agreement and discussions with National Indemnity Company, a unit of Warren Buffett’s Berkshire Hathaway, over a $3.2 billion takeover offer.
  2. On August 12, 2011, optionsXpress (OXPS) and Charles Schwab (SCHW) received the necessary regulatory approvals to complete their merger. The spread on this deal was 7.7% or 53% annualized when we published the Merger Arbitrage Mondays post last week.


Closed Deal:

  1. The acquisition of Nobel Learning Communities (NLCI) by an affiliate of Leeds Equity Partners on August 09, 2011


Top 10 deals with largest spreads:

Symbol Announced
Date
Acquiring
Company
Closing
Price
Last
Price
Closing
Date
Profit Annualized
Profit
GRAN 04/27/2011 FNB United Corp (FNBN) $1.45 $0.770 09/30/2011 88.47% 702.02%
FNDT 06/27/2011 S1 Corporation (SONE) $24.75 $15.96 12/31/2011 55.09% 145.70%
CRU 05/05/2011 Capital Product Partners L.P. (CPLP) $9.27 $6.60 09/30/2011 40.40% 320.57%
HRBN 06/20/2011 Tech Full Electric Company Limited (N/A) $24.00 $17.91 12/31/2011 34.00% 89.94%
MHS 07/21/2011 Express Scripts, Inc. (ESRX) $66.62 $53.94 06/30/2012 23.51% 26.81%
TAM 01/19/2011 LAN Airlines S.A. (LFL) $22.47 $18.25 12/31/2011 23.14% 61.20%
ABVA 07/27/2011 Eagle Bancorp, Inc. (EGBN) $5.12 $4.60 12/31/2011 11.40% 30.15%
ALTH 07/20/2011 Amag Pharmaceuticals (AMAG) $1.92 $1.74 12/31/2011 10.30% 27.23%
CSR 04/20/2011 Rightmark Holdings Limited (N/A) $6.50 $5.95 09/30/2011 9.24% 73.35%
CFSG 05/20/2011 Bain Capital Partners (N/A) $9.00 $8.31 11/15/2011 8.30% 32.94%

List of all pending deals:

The list of all pending deals is only available to InsideArbitrage Premium and Plus members.


Voluntary Disclosure: I have a long position in Blackboard (BBBB)