Merger Arbitrage Mondays – October 17, 2011

  • October 16, 2011

Merger activity held steady last week with four new deals announced and three closing. The size of the deals were however much bigger with several multi-billion dollar deals including one of the largest energy deal in history.

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 2011164
Total Number of Deals Not Completed in 20112
Total Number of Pending Deals
Cash Deals34
Stock Deals18
Stock & Cash Deals10
Total Number of Pending Deals62

New Deals:

  1. The acquisition of Complete Production Services (CPX) by Superior Energy Services (SPN) for $2.7 billion in a cash plus stock deal, where Complete stockholders will receive 0.945 common shares of Superior and cash of $7.00 in exchange for each share of Complete common stock held at closing.
  2. The acquisition of BigBand Networks (BBND) by Arris Group (ARRS) for approximately $172 million or $2.24 per share in cash.
  3. The acquisition of 99 Cents Only Stores (NDN) by affiliates of Ares Management LLC and Canada Pension Plan Investment Board for $1.6 billion or $22.00 per share in cash.
  4. The acquisition of El Paso (EP) by Kinder Morgan (KMI) for $21 billion in a cash plus stock deal, where shareholders of El Paso will receive $26.87 per share, which includes $14.65 in cash, o.4187 of a Kinder share and 0.640 of a warrant.

Closed Deals:

  1. The acquisition of Ness Technologies (NSTC) by an affiliate of Citi Venture Capital International on October 12, 2011.
  2. The acquisition of APAC Customer Services (APAC) by One Equity Partners on October 14, 2011.
  3. The acquisition of Cephalon (CEPH) by Teva Pharmaceuticals (TEVA) on October 14, 2011.

Top 10 deals with largest spreads:

SymbolAnnounced

Date

Acquiring

Company

Closing

Price

Last

Price

Closing

Date

ProfitAnnualized

Profit

GRAN04/27/2011FNB United Corp (FNBN)$1.18$0.7210/31/201164.06%1670.20%
EP10/16/2011Kinder Morgan, Inc. (KMI)$26.87$19.5903/31/201237.16%81.70%
AATI05/26/2011Skyworks Solutions, Inc. (SWKS)$5.63$4.4912/31/201125.49%124.04%
MHS07/21/2011Express Scripts, Inc. (ESRX)$61.35$49.1206/30/201224.89%35.35%
ALTH07/20/2011Amag Pharmaceuticals (AMAG)$1.88$1.5212/31/201123.81%115.90%
TAM01/19/2011LAN Airlines S.A. (LFL)$20.23$17.6112/31/201114.89%72.46%
HRBN06/20/2011Tech Full Electric Company Limited (N/A)$24.00$22.0912/31/20118.65%42.08%
ABVA07/27/2011Eagle Bancorp, Inc. (EGBN)$5.55$5.1212/31/20118.43%41.03%
LOOP04/27/2011CoStar Group (CSGP)$18.56$17.5012/31/20116.06%29.50%
GR09/21/2011United Technologies Corp. (UTX)$127.50$121.1706/30/20125.22%7.42%

List of all pending deals:

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


SymbolAnnounced

Date

Acquiring

Company

Deal

Type

Closing

Value

Closing

Price

Last

Price

VolumeClosing

Date

ProfitAnnu.

Profit

+GRAN04/27/2011FNB United Corp (FNBN)All StockN/A$1.18$0.72107,63010/31/201164.06%1670.20%
+EP10/16/2011Kinder Morgan, Inc. (KMI)Cash Plus Stock$21 billion$26.87$19.597,887,94103/31/201237.16%81.70%
+AATI05/26/2011Skyworks Solutions, Inc. (SWKS)Cash Plus Stock$258.6 million$5.63$4.49113,55112/31/201125.49%124.04%
+MHS07/21/2011Express Scripts, Inc. (ESRX)Cash Plus Stock$29.1 billion$61.35$49.121,700,70006/30/201224.89%35.35%
+ALTH07/20/2011Amag Pharmaceuticals (AMAG)All Stock$686 million$1.88$1.52470,64712/31/201123.81%115.90%
+TAM01/19/2011LAN Airlines S.A. (LFL)All StockN/A$20.23$17.61554,88412/31/201114.89%72.46%
+HRBN06/20/2011Tech Full Electric Company Limited (N/A)All CashN/A$24.00$22.09901,85512/31/20118.65%42.08%
+ABVA07/27/2011Eagle Bancorp, Inc. (EGBN)All Stock$31.2 million$5.55$5.1212,80712/31/20118.43%41.03%
+LOOP04/27/2011CoStar Group (CSGP)Cash Plus Stock$860 million$18.56$17.50124,08012/31/20116.06%29.50%
+GR09/21/2011United Technologies Corp. (UTX)All Cash$18.4 billion$127.50$121.172,001,50306/30/20125.22%7.42%
+CEG04/28/2011Exelon Corporation (EXC)All Stock$7.9 billion$40.20$38.571,843,71201/31/20124.24%14.59%
+OCNF07/26/2011Ocean Rig (DryShips) (ORIG)Cash Plus Stock$118 million$19.61$18.8757,41112/31/20113.93%19.13%
+BFSB08/17/2011Investors Bancorp, Inc. (ISBC)All Cash$10.3 million$0.80$0.77N/A12/31/20113.90%18.96%
+ORCH04/06/2011Laboratory Corporation of America Holdings (LH)All Cash$85.4 million$2.80$2.7039,22410/31/20113.70%96.56%
+MMI08/15/2011Google (GOOG)All Cash$12.5 billion$40.00$38.7213,568,28401/31/20123.31%11.38%
+ACMR10/04/2011affiliate of Sbar’s Inc (N/A)All Cash$40.8 million$1.60$1.55144,56112/31/20113.23%15.70%
+NETL09/12/2011Broadcom (BRCM)All Cash$3.7 billion$50.00$48.502,598,18206/30/20123.09%4.39%
+TGE10/31/2011Dawson Geophysical Company (DWSN)All Stock$157 million$5.26$5.1135,10310/31/20113.01%78.57%
+CPX10/10/2011Superior Energy Services (SPN)Cash Plus Stock$2.7 billion$32.16$31.233,689,83112/31/20112.96%14.43%
+HNB06/02/2011BankUnited Inc. (BKU)Cash Plus Stock$71.4 million$3.37$3.2810012/31/20112.85%13.88%
+PGN01/10/2011Duke Energy Corporation (DUK)All Stock$13.7 billion$52.04$50.661,678,91312/31/20112.73%13.27%
+CONM07/12/2011Ayelet Investments (N/A)All Cash$57.2 million$3.85$3.7615,40012/31/20112.39%11.65%
+CFSG05/20/2011Bain Capital Partners (N/A)All Cash$265.5 million$9.00$8.8070,46411/15/20112.27%28.61%
+GLA09/01/2011The Gores Group (N/A)All CashN/A$0.46$0.451,20012/31/20112.22%10.81%
+NDN10/11/2011affiliates of Ares Management LLC and Canada Pension Plan Investment Board (N/A)All Cash$1.6 billion$22.00$21.563,844,05803/31/20122.04%4.49%
+PVSA06/15/2011F.N.B. Corporation (FNB)All Stock$130 million$20.19$19.811,00012/31/20111.92%9.34%
+ENP07/11/2011Vanguard Natural Resources (VNR)All Stock$545 million$20.42$20.04104,58112/31/20111.91%9.29%
+HGIC09/29/2011Nationwide Mutual Insurance Co (N/A)All Cash$760 million$60.00$58.8863,98201/31/20121.90%6.55%
+NXG08/29/2011AuRico Gold Inc. (AUQ)All Stock$1.46 billion$3.78$3.711,561,26010/31/20111.83%47.61%
+CLFC12/09/2010Nara Bancorp Inc. (NARA)All Stock$285.7 million$5.25$5.1656,34411/30/20111.78%14.81%
+PNNW11/12/2010City of Nashua (N/A)All Cash$138 million$29.00$28.504,88012/31/20111.75%8.54%
+TIN09/06/2011International Paper (IP)All Cash$4.3 billion$32.00$31.502,914,01003/31/20121.59%3.49%
+AMAC09/22/2011Tunstall Healthcare Group Limited (N/A)All Cash$82.3 million$8.55$8.4337,79012/31/20111.42%6.93%
+VSEA05/04/2011Applied Materials Inc. (AMAT)All Cash$4.9 billion$63.00$62.34913,58511/15/20111.06%13.33%
+AHCI07/29/2011Saga Group Limited (N/A)All Cash$175 million$3.90$3.8660,63512/31/20111.04%5.04%
+SONE10/03/2011ACI Worldwide (ACIW)Cash Plus Stock$516 million$9.67$9.581,708,32612/31/20110.98%4.76%
+PMIC09/08/2011Ace (ACE)All CashN/A$20.30$20.122,90003/31/20120.89%1.97%
+MFW09/12/2011MacAndrews and Forbes (N/A)All CashN/A$25.00$24.7886,41212/31/20110.89%4.32%
+GLBL09/12/2011Technip (N/A)All Cash$1.1 billion$8.00$7.931,071,32101/31/20120.88%3.04%
+KCI07/13/2011Consortium of Funds (N/A)All Cash$6.3 billion$68.50$67.982,099,83612/31/20110.76%3.72%
+FNDT06/27/2011GTCR (N/A)All Cash$352.7$23.33$23.168,20112/31/20110.73%3.57%
+STBC04/28/2011Valley National Bancorp (VLY)All Stock$222 million$11.40$11.3227,44010/31/20110.71%18.43%
+GAS12/07/2010AGL Resources Inc. (AGL)Cash Plus Stock$2.4 billion$55.72$55.38316,70311/15/20110.61%7.66%
+PPDI10/03/2011affiliates of The Carlyle Group and Hellman & Friedman (N/A)All Cash$3.9 billion$33.25$33.057,258,97312/31/20110.61%2.95%
+CALP09/08/2011PerkinElmer Inc. (PKI)All Cash$600 million$10.50$10.46483,64512/31/20110.38%1.86%
+TLVT06/01/2011Schneider Electric (N/A)All Cash$2.02 billion$40.00$39.8528,72212/31/20110.38%1.83%
+ICGN07/20/2011Pfizer Inc. (PFE)All Cash$56 million$6.00$5.9816,65812/31/20110.33%1.63%
+SWTX10/07/2011Solutia Inc. (SOA)All Cash$113 million$13.60$13.5658,71012/31/20110.29%1.44%
+FPIC05/24/2011The Doctors Company (N/A)All Cash$362 million$42.00$41.9252,57412/31/20110.19%0.93%
+ARJ07/11/2011Lonza Group Ltd (N/A)All Cash$1.4 billion$47.20$47.12486,13612/31/20110.17%0.83%
+EM08/04/2011Blackstone (N/A)All Cash$3 billion$19.00$18.97761,25412/31/20110.16%0.77%
+CV07/12/2011Gaz metro Limited Partnership (N/A)All Cash$702 million$35.25$35.2080,78012/31/20110.14%0.69%
+NLC07/20/2011Ecolab Inc. (ECL)All Stock$5.4 billion$36.98$36.972,999,80512/31/20110.03%0.12%
+DPL04/19/2011AES Corporation (AES)All Cash$4.7 billion$30.00$30.25643,08201/31/2012-0.83%-2.85%
+NST10/18/2010Northeast Utilities (NU)All Stock$4.17 billion$43.70$44.08297,42010/31/2011-0.86%-22.31%
+BBND10/11/2011Arris Group Inc. (ARRS)All Cash$172 million$2.24$2.26460,38012/31/2011-0.88%-4.31%
+PAET08/01/2011Windstream Corp. (WIN)All Stock$2.3 billion$5.45$5.59917,81601/31/2012-2.49%-8.56%
+TOBC06/20/2011Susquehanna Bancshares (SUSQ)All Stock$343 million$21.34$22.8815,47503/31/2012-6.74%-14.82%
+RLRN08/16/2011Permira Funds (N/A)All Cash$455 million$15.50$16.6896,79612/31/2011-7.07%-34.43%
+BARI04/20/2011Brookline Bancorp (BRKL)Cash Plus Stock$234 million$39.13$44.133,86012/31/2011-11.33%-55.16%
+SUG06/16/2011Energy Transfer Equity (ETE)All Stock$9.4 billion$35.71$40.791,348,47503/31/2012-12.45%-27.38%
+NYX02/15/2011Deutsche Boerse (N/A)All StockN/A$13.93$27.502,744,52812/31/2011-49.36%-240.22%