Merger Arbitrage Mondays – October 31, 2011

  • October 31, 2011

Merger activity increased last week with five new deals announced and three closing.

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 2011172
Total Number of Deals Not Completed in 20114
Total Number of Pending Deals
Cash Deals34
Stock Deals16
Stock & Cash Deals10
Total Number of Pending Deals60

New Deals:

  1. The acquisition of Healthspring (HS) by Cigna (CI) for $3.8 billion or $55.00 per share in cash.
  2. The acquisition of RightNow (RNOW) by Oracle (ORCL) for $1.3 billion or $43.00 per share in cash.
  3. The acquisition of Adolor (ADLR) by Cubist Pharmaceuticals (CBST) for $190 million or $4.25 per share in cash. In addition to the upfront cash payment, each Adolor stockholder will receive one Contingent Payment Right (CPR), entitling the holder to receive additional cash payments of up to $4.50 for each share they own if certain regulatory approvals and/or commercialization milestones for ADL5945 are achieved.
  4. The acquisition of China Advanced Construction Materials Group (CADC) by Novel Gain Holdings Limited, CACMG Acquisition and members of the management team for $2.65 per share in cash. Essentially this is a going private transaction with CADC emerging as the surviving entity.
  5. The acquisition of The Connecticut Bank and Trust Company (CTBC) by Berkshire Hills Bancorp (BHLB) for $30 million in an all stock deal, where shareholders of The Connecticut Bank and Trust Company will receive either $8.25 per share in cash, or 0.3810 shares of Berkshire Hills Bancorp per share held. Under the terms of the merger agreement, 70% of the outstanding CBT shares will be exchanged for Berkshire shares at a fixed exchange ratio of 0.3810 Berkshire shares for each share of CBT. The remaining 30% of CBT shares will be exchanged for cash in the amount of $8.25 per share. Since the majority of shareholders will receive stock, we have classified this as an all stock deal.

Deal Updates:

  1. On October 28, 2011, Dawson Geophysical Company (DWSN) announced that TGC Industries (TGE) had terminated the definitive merger agreement pursuant to which Dawson would have acquired TGC in a tax-free stock-for-stock transaction.
  2. Chilean airline LAN and Brazil’s TAM have started to define the corporate structure of the group they will merge to create one of the world’s largest airlines. According to Reuters, a small Chilean airline dropped its appeal against larger rival LAN’s planned takeover of TAM, removing a major hurdle to the deal.

Closed Deals:

  1. The acquisition of Bank of Granite Corporation (GRAN) by FNB United Corp (FNBN) on October 24, 2011.
  2. The acquisition of Northgate Minerals Corporation (NXG) by AuRico Gold (AUQ) on October 26, 2011.
  3. The acquisition of Icagen (ICGN) by Pfizer (PFE) on October 28, 2011

Top 10 deals with largest spreads:

SymbolAnnounced

Date

Acquiring

Company

Closing

Price

Last

Price

Closing

Date

ProfitAnnualized

Profit

AATI05/26/2011Skyworks Solutions, Inc. (SWKS)$5.45$4.4512/31/201122.48%134.50%
MHS07/21/2011Express Scripts, Inc. (ESRX)$66.63$55.5006/30/201220.05%30.11%
CADC10/24/2011Novel Gain Holdings Limited (N/A)$2.65$2.2603/31/201217.26%41.44%
VTRO10/17/2011Inuvo, Inc. (INUV)$2.07$1.7903/31/201215.73%37.78%
ABVA07/27/2011Eagle Bancorp, Inc. (EGBN)$6.16$5.5012/31/201112.01%71.84%
TAM01/19/2011LAN Airlines S.A. (LFL)$23.32$20.8612/31/201111.79%70.54%
EP10/16/2011Kinder Morgan, Inc. (KMI)$27.79$25.4403/31/20129.25%22.22%
HRBN06/20/2011Tech Full Electric Company Limited (N/A)$24.00$22.5512/31/20116.43%38.48%
LOOP04/27/2011CoStar Group (CSGP)$18.81$17.8012/31/20115.68%33.98%
CEG04/28/2011Exelon Corporation (EXC)$41.45$39.8001/31/20124.15%16.45%

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

+AATI05/26/2011Skyworks Solutions, Inc. (SWKS)Cash Plus Stock$258.6 million$5.45$4.45180,66612/31/201122.48%134.50%
+MHS07/21/2011Express Scripts, Inc. (ESRX)Cash Plus Stock$29.1 billion$66.63$55.504,837,12506/30/201220.05%30.11%
+CADC10/24/2011Novel Gain Holdings Limited (N/A)All CashN/A$2.65$2.26118,28803/31/201217.26%41.44%
+VTRO10/17/2011Inuvo, Inc. (INUV)All StockN/A$2.07$1.7939,79803/31/201215.73%37.78%
+ABVA07/27/2011Eagle Bancorp, Inc. (EGBN)All Stock$31.2 million$6.16$5.509,25312/31/201112.01%71.84%
+TAM01/19/2011LAN Airlines S.A. (LFL)All StockN/A$23.32$20.86494,59512/31/201111.79%70.54%
+EP10/16/2011Kinder Morgan, Inc. (KMI)Cash Plus Stock$21 billion$27.79$25.4412,271,79903/31/20129.25%22.22%
+HRBN06/20/2011Tech Full Electric Company Limited (N/A)All CashN/A$24.00$22.55760,01112/31/20116.43%38.48%
+LOOP04/27/2011CoStar Group (CSGP)Cash Plus Stock$860 million$18.81$17.80223,27912/31/20115.68%33.98%
+CEG04/28/2011Exelon Corporation (EXC)All Stock$7.9 billion$41.45$39.805,344,20401/31/20124.15%16.45%
+GR09/21/2011United Technologies Corp. (UTX)All Cash$18.4 billion$127.50$122.731,886,64006/30/20123.89%5.84%
+ORCH04/06/2011Laboratory Corporation of America Holdings (LH)All Cash$85.4 million$2.80$2.70215,97710/31/20113.70%0.00%
+CTBC10/26/2011Berkshire Hills Bancorp, Inc. (BHLB)All Stock$30 million$7.78$7.50102,37504/30/20123.68%7.39%
+HNB06/02/2011BankUnited Inc. (BKU)Cash Plus Stock$71.4 million$3.54$3.42N/A12/31/20113.45%20.63%
+MMI08/15/2011Google (GOOG)All Cash$12.5 billion$40.00$38.962,897,86201/31/20122.67%10.59%
+BFSB08/17/2011Investors Bancorp, Inc. (ISBC)All Cash$10.3 million$0.80$0.78N/A12/31/20112.56%15.34%
+CPX10/10/2011Superior Energy Services (SPN)Cash Plus Stock$2.7 billion$35.18$34.431,584,16712/31/20112.18%13.03%
+PVSA06/15/2011F.N.B. Corporation (FNB)All Stock$130 million$22.43$22.0027,58712/31/20111.97%11.79%
+PGN01/10/2011Duke Energy Corporation (DUK)All Stock$13.7 billion$53.45$52.431,234,26412/31/20111.95%11.66%
+CFSG05/20/2011Bain Capital Partners (N/A)All Cash$265.5 million$9.00$8.8644,41711/15/20111.58%38.45%
+PAET08/01/2011Windstream Corp. (WIN)All Stock$2.3 billion$5.64$5.56751,60101/31/20121.51%6.01%
+HS10/24/2011Cigna (CI)All Cash$3.8 billion$55.00$54.181,520,85506/30/20121.51%2.27%
+NETL09/12/2011Broadcom (BRCM)All Cash$3.7 billion$50.00$49.28744,08106/30/20121.46%2.19%
+FNDT06/27/2011GTCR (N/A)All Cash$352.7$23.33$23.0036,44612/31/20111.43%8.59%
+OCNF07/26/2011Ocean Rig (DryShips) (ORIG)Cash Plus Stock$118 million$19.27$19.0071,50912/31/20111.40%8.39%
+PNNW11/12/2010City of Nashua (N/A)All Cash$138 million$29.00$28.609,13912/31/20111.40%8.37%
+STBC04/28/2011Valley National Bancorp (VLY)All Stock$222 million$12.31$12.1599,32010/31/20111.32%0.00%
+ENP07/11/2011Vanguard Natural Resources (VNR)All Stock$545 million$21.99$21.74110,11512/31/20111.15%6.88%
+HGIC09/29/2011Nationwide Mutual Insurance Co (N/A)All Cash$760 million$60.00$59.3682,35901/31/20121.08%4.28%
+CONM07/12/2011Ayelet Investments (N/A)All Cash$57.2 million$3.85$3.8120,90012/31/20111.05%6.28%
+MFW09/12/2011MacAndrews and Forbes (N/A)All CashN/A$25.00$24.77241,01412/31/20110.93%5.56%
+NDN10/11/2011affiliates of Ares Management LLC and Canada Pension Plan Investment Board (N/A)All Cash$1.6 billion$22.00$21.802,308,03303/31/20120.92%2.20%
+CLFC12/09/2010Nara Bancorp Inc. (NARA)All Stock$285.7 million$6.69$6.63141,56411/30/20110.88%10.65%
+ANDS10/17/2011Roche (N/A)All Cash$230 million$3.70$3.67525,77112/31/20110.82%4.89%
+PPDI10/03/2011affiliates of The Carlyle Group and Hellman & Friedman (N/A)All Cash$3.9 billion$33.25$32.993,370,94912/31/20110.79%4.72%
+SONE10/03/2011ACI Worldwide (ACIW)Cash Plus Stock$516 million$9.97$9.901,290,49512/31/20110.66%3.94%
+ACMR10/04/2011affiliate of Sbar’s Inc (N/A)All Cash$40.8 million$1.60$1.5987,23612/31/20110.63%3.76%
+TIN09/06/2011International Paper (IP)All Cash$4.3 billion$32.00$31.80777,14203/31/20120.63%1.51%
+GLBL09/12/2011Technip (N/A)All Cash$1.1 billion$8.00$7.951,610,01601/31/20120.63%2.50%
+NLC07/20/2011Ecolab Inc. (ECL)All Stock$5.4 billion$38.53$38.32854,12112/31/20110.54%3.24%
+VSEA05/04/2011Applied Materials Inc. (AMAT)All Cash$4.9 billion$63.00$62.80515,96111/15/20110.32%7.75%
+CALP09/08/2011PerkinElmer Inc. (PKI)All Cash$600 million$10.50$10.47606,87212/31/20110.29%1.71%
+KCI07/13/2011Consortium of Funds (N/A)All Cash$6.3 billion$68.50$68.381,662,29012/31/20110.18%1.05%
+EM08/04/2011Blackstone (N/A)All Cash$3 billion$19.00$18.971,239,60912/31/20110.16%0.95%
+BEXP10/17/2011Statoil ASA (STO)All Cash$4.4 billion$36.50$36.495,885,04603/31/20120.03%0.07%
+GAS12/07/2010AGL Resources Inc. (AGL)Cash Plus Stock$2.4 billion$57.24$57.23251,43111/15/20110.02%0.54%
+GLA09/01/2011The Gores Group (N/A)All CashN/A$0.46$0.4660012/31/20110.00%0.00%
+BBND10/11/2011Arris Group Inc. (ARRS)All Cash$172 million$2.24$2.24350,37312/31/20110.00%0.00%
+SWTX10/07/2011Solutia Inc. (SOA)All Cash$113 million$13.60$13.6152,50112/31/2011-0.07%-0.44%
+PMIC09/08/2011Ace (ACE)All CashN/A$20.30$20.323,99103/31/2012-0.10%-0.24%
+NST10/18/2010Northeast Utilities (NU)All Stock$4.17 billion$45.37$45.42319,03910/31/2011-0.11%0.00%
+RNOW10/24/2011Oracle (ORCL)All Cash$1.5 billion$43.00$43.101,321,70703/31/2012-0.23%-0.56%
+AMAC09/22/2011Tunstall Healthcare Group Limited (N/A)All Cash$82.3 million$8.55$8.5777,30212/31/2011-0.23%-1.40%
+CV07/12/2011Gaz metro Limited Partnership (N/A)All Cash$702 million$35.25$35.4046,05312/31/2011-0.42%-2.54%
+TOBC06/20/2011Susquehanna Bancshares (SUSQ)All Stock$343 million$25.88$26.1531,05803/31/2012-1.02%-2.45%
+DPL04/19/2011AES Corporation (AES)All Cash$4.7 billion$30.00$30.36522,81001/31/2012-1.19%-4.70%
+ADLR10/24/2011Cubist Pharmaceuticals (CBST)All Cash$190 million$4.25$4.49326,46112/31/2011-5.35%-31.98%
+SUG06/16/2011Energy Transfer Equity (ETE)All Stock$9.4 billion$38.58$42.33537,37603/31/2012-8.86%-21.27%
+BARI04/20/2011Brookline Bancorp (BRKL)Cash Plus Stock$234 million$39.74$44.095,75512/31/2011-9.87%-59.07%
+NYX02/15/2011Deutsche Boerse (N/A)All StockN/A$13.93$28.003,119,53712/31/2011-50.26%-300.76%