Merger Arbitrage Mondays – November 07, 2011

  • November 7, 2011

Merger activity decreased last week with three new deals announced and four 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 2011176
Total Number of Deals Not Completed in 20114
Total Number of Pending Deals
Cash Deals34
Stock Deals16
Stock & Cash Deals9
Total Number of Pending Deals59

New Deals:

  1. The acquisition of interCLICK (ICLK) by Yahoo (YHOO) for $270 million or $9.00 per share in cash.
  2. The acquisition of INX Inc. (INXI) by Presidio for $8.75 per share in cash.
  3. The acquisition of Sonesta International Hotels Corp. (SNSTA) by SAC an affiliate of Hospitality Properties Trust (HPT) for $174 million or $31.00 per share in cash.

The Sonesta acquisition is an interesting one to me personally because I have a long position in lodging and movie theater company Marcus (MCS) and have a couple of other hotel companies like Sunstone Hotel Investors (SHO) and Strategic Hotels & Resorts (BEE) on my watch list. HPT is paying a 71% premium for Sonesta and more than 5 times tangible book value. In contrast SHO trades for just 0.71 tangible book. Sonesta’s property portfolio is more globally diversified with more properties in Egypt and Peru than in the United States, while Sunstone’s mid-scale properties are concentrated in the United States.

Deal Updates:

On November 3, Skyworks Solutions (SWKS) filed a form 8-K and a letter with the SEC requesting consent to withdraw the Registration Statement the company filed in relation to its acquisition of AnalogicTech (AATI). AnalogicTech issued a press release the same day claiming, Skyworks’ allegations are false, baseless and entirely without merit.  AnalogicTech stands behind its financial statements and accounting practices and will continue to defend itself vigorously against Skyworks’ spurious claims.”

For all practical purposes the deal appears to be off. We will update the database if and when the deal is officially cancelled.

Closed Deals:

  1. The acquisition of Emdeon (EM) by Blackstone on November 02, 2011
  2. The acquisition of Harbin Electric (HRBN) by Tech Full Electric Company Limited on November 03, 2011
  3. The acquisition of OceanFreight (OCNF) by DryShips (DRYS) on November 03, 2011
  4. The acquisition of Kinetic Concepts (KCI) by a consortium comprised of funds advised by Apax Partners on November 04, 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)$6.13$3.8512/31/201159.23%400.33%
MHS07/21/2011Express Scripts, Inc. (ESRX)$65.42$55.0606/30/201218.82%29.10%
CADC10/24/2011Novel Gain Holdings Limited (N/A)$2.65$2.3203/31/201214.22%35.81%
ABVA07/27/2011Eagle Bancorp, Inc. (EGBN)$5.80$5.1012/31/201113.68%92.47%
TAM01/19/2011LAN Airlines S.A. (LFL)$22.16$19.7812/31/201112.02%81.26%
EP10/16/2011Kinder Morgan, Inc. (KMI)$27.46$24.9603/31/201210.03%25.25%
LOOP04/27/2011CoStar Group (CSGP)$18.85$17.8112/31/20115.85%39.56%
ORCH04/06/2011Laboratory Corporation of America Holdings (LH)$2.80$2.6711/15/20114.87%222.14%
CEG04/28/2011Exelon Corporation (EXC)$40.94$39.2101/31/20124.41%18.93%
GR09/21/2011United Technologies Corp. (UTX)$127.50$122.5006/30/20124.08%6.31%

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$6.13$3.85275,29412/31/201159.23%400.33%
+MHS07/21/2011Express Scripts, Inc. (ESRX)Cash Plus Stock$29.1 billion$65.42$55.064,561,84506/30/201218.82%29.10%
+CADC10/24/2011Novel Gain Holdings Limited (N/A)All CashN/A$2.65$2.32140,03403/31/201214.22%35.81%
+ABVA07/27/2011Eagle Bancorp, Inc. (EGBN)All Stock$31.2 million$5.80$5.1012,75212/31/201113.68%92.47%
+TAM01/19/2011LAN Airlines S.A. (LFL)All StockN/A$22.16$19.78263,07912/31/201112.02%81.26%
+EP10/16/2011Kinder Morgan, Inc. (KMI)Cash Plus Stock$21 billion$27.46$24.9611,536,12203/31/201210.03%25.25%
+LOOP04/27/2011CoStar Group (CSGP)Cash Plus Stock$860 million$18.85$17.81125,80912/31/20115.85%39.56%
+ORCH04/06/2011Laboratory Corporation of America Holdings (LH)All Cash$85.4 million$2.80$2.6751,55311/15/20114.87%222.14%
+CEG04/28/2011Exelon Corporation (EXC)All Stock$7.9 billion$40.94$39.214,253,73201/31/20124.41%18.93%
+GR09/21/2011United Technologies Corp. (UTX)All Cash$18.4 billion$127.50$122.503,541,73006/30/20124.08%6.31%
+MMI08/15/2011Google (GOOG)All Cash$12.5 billion$40.00$38.972,323,98101/31/20122.64%11.35%
+PGN01/10/2011Duke Energy Corporation (DUK)All Stock$13.7 billion$53.92$52.661,648,64012/31/20112.40%16.20%
+PAET08/01/2011Windstream Corp. (WIN)All Stock$2.3 billion$5.45$5.331,838,91501/31/20122.27%9.75%
+INXI11/01/2011Presidio (N/A)All CashN/A$8.75$8.57270,92603/31/20122.10%5.29%
+CPX10/10/2011Superior Energy Services (SPN)Cash Plus Stock$2.7 billion$34.76$34.111,673,84312/31/20111.92%12.96%
+HS10/24/2011Cigna (CI)All Cash$3.8 billion$55.00$53.991,314,82706/30/20121.87%2.89%
+PVSA06/15/2011F.N.B. Corporation (FNB)All Stock$130 million$23.15$22.743,03612/31/20111.81%12.25%
+HGIC09/29/2011Nationwide Mutual Insurance Co (N/A)All Cash$760 million$60.00$58.9738,74401/31/20121.75%7.50%
+ENP07/11/2011Vanguard Natural Resources (VNR)All Stock$545 million$21.29$20.9251,83912/31/20111.74%11.79%
+PNNW11/12/2010City of Nashua (N/A)All Cash$138 million$29.00$28.521,84812/31/20111.68%11.38%
+NDN10/11/2011affiliates of Ares Management LLC and Canada Pension Plan Investment Board (N/A)All Cash$1.6 billion$22.00$21.671,514,86603/31/20121.52%3.83%
+NETL09/12/2011Broadcom (BRCM)All Cash$3.7 billion$50.00$49.30866,72606/30/20121.42%2.20%
+FNDT06/27/2011GTCR (N/A)All Cash$352.7$23.33$23.0335,83612/31/20111.30%8.80%
+STBC04/28/2011Valley National Bancorp (VLY)All Stock$222 million$11.90$11.7511,70901/15/20121.28%6.75%
+HNB06/02/2011BankUnited Inc. (BKU)Cash Plus Stock$71.4 million$3.51$3.47N/A12/31/20111.27%8.60%
+SNSTA11/03/2011SAC an affiliate of Hospitality Properties Trust (N/A)All Cash$174 million$31.00$30.6610,72503/31/20121.11%2.79%
+SONE10/03/2011ACI Worldwide (ACIW)Cash Plus Stock$516 million$9.95$9.84445,21912/31/20111.07%7.21%
+ACMR10/04/2011affiliate of Sbar’s Inc (N/A)All Cash$40.8 million$1.60$1.58535,00012/31/20110.95%6.40%
+GLA09/01/2011The Gores Group (N/A)All CashN/A$0.46$0.456N/A12/31/20110.88%5.93%
+ANDS10/17/2011Roche (N/A)All Cash$230 million$3.70$3.675884,20212/31/20110.68%4.60%
+MFW09/12/2011MacAndrews and Forbes (N/A)All CashN/A$25.00$24.8460,71912/31/20110.64%4.35%
+NLC07/20/2011Ecolab Inc. (ECL)All Stock$5.4 billion$38.55$38.322,045,10212/31/20110.60%4.03%
+VSEA05/04/2011Applied Materials Inc. (AMAT)All Cash$4.9 billion$63.00$62.634,157,20311/15/20110.59%26.95%
+PPDI10/03/2011affiliates of The Carlyle Group and Hellman & Friedman (N/A)All Cash$3.9 billion$33.25$33.064,217,13312/31/20110.57%3.88%
+CONM07/12/2011Ayelet Investments (N/A)All Cash$57.2 million$3.85$3.8315,35012/31/20110.52%3.53%
+TIN09/06/2011International Paper (IP)All Cash$4.3 billion$32.00$31.84797,28103/31/20120.50%1.26%
+GAS12/07/2010AGL Resources Inc. (AGL)Cash Plus Stock$2.4 billion$55.87$55.59128,22611/15/20110.50%22.81%
+GLBL09/12/2011Technip (N/A)All Cash$1.1 billion$8.00$7.9657,481,58501/31/20120.44%1.89%
+BEXP10/17/2011Statoil ASA (STO)All Cash$4.4 billion$36.50$36.383,980,73203/31/20120.33%0.83%
+CLFC12/09/2010Nara Bancorp Inc. (NARA)All Stock$285.7 million$6.82$6.8023,75911/30/20110.30%4.83%
+NST10/18/2010Northeast Utilities (NU)All Stock$4.17 billion$45.47$45.34171,99212/31/20110.30%2.00%
+VTRO10/17/2011Inuvo, Inc. (INUV)All StockN/A$1.65$1.6520,68803/31/20120.26%0.64%
+ICLK11/01/2011Yahoo! Inc. (YHOO)All Cash$270 million$9.00$8.98636,75003/31/20120.22%0.56%
+CFSG05/20/2011Bain Capital Partners (N/A)All Cash$265.5 million$9.00$8.99484,86711/15/20110.11%5.08%
+CALP09/08/2011PerkinElmer Inc. (PKI)All Cash$600 million$10.50$10.49821,03912/31/20110.10%0.64%
+CV07/12/2011Gaz metro Limited Partnership (N/A)All Cash$702 million$35.25$35.2344,44312/31/20110.06%0.38%
+AMAC09/22/2011Tunstall Healthcare Group Limited (N/A)All Cash$82.3 million$8.55$8.556,35012/31/20110.00%0.00%
+RNOW10/24/2011Oracle (ORCL)All Cash$1.5 billion$43.00$43.00567,32903/31/20120.00%0.00%
+SWTX10/07/2011Solutia Inc. (SOA)All Cash$113 million$13.60$13.6050,83812/31/20110.00%0.00%
+BBND10/11/2011Arris Group Inc. (ARRS)All Cash$172 million$2.24$2.24110,04812/31/20110.00%0.00%
+PMIC09/08/2011Ace (ACE)All CashN/A$20.30$20.339,00003/31/2012-0.15%-0.37%
+CTBC10/26/2011Berkshire Hills Bancorp, Inc. (BHLB)All Stock$30 million$7.31$7.36N/A04/30/2012-0.71%-1.49%
+DPL04/19/2011AES Corporation (AES)All Cash$4.7 billion$30.00$30.38607,40301/31/2012-1.25%-5.37%
+TOBC06/20/2011Susquehanna Bancshares (SUSQ)All Stock$343 million$25.64$26.035,52103/31/2012-1.50%-3.77%
+ADLR10/24/2011Cubist Pharmaceuticals (CBST)All Cash$190 million$4.25$4.44130,90112/31/2011-4.28%-28.92%
+BFSB08/17/2011Investors Bancorp, Inc. (ISBC)All Cash$10.3 million$0.80$0.88996,14712/31/2011-10.01%-67.67%
+SUG06/16/2011Energy Transfer Equity (ETE)All Stock$9.4 billion$37.58$42.08485,76603/31/2012-10.69%-26.92%
+BARI04/20/2011Brookline Bancorp (BRKL)Cash Plus Stock$234 million$36.83$42.873,38812/31/2011-14.08%-95.20%
+NYX02/15/2011Deutsche Boerse (N/A)All StockN/A$13.93$26.662,063,42912/31/2011-47.76%-322.85%