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Merger Arbitrage Mondays – December 05, 2011

  • December 5, 2011

Merger activity decreased last week with two new deals announced and nine 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 2011192
Total Number of Deals Not Completed in 20116
Total Number of Pending Deals
Cash Deals33
Stock Deals12
Stock & Cash Deals9
Total Number of Pending Deals54

New Deals:

  1. The acquisition of Magma Design Automation (LAVA) by Synopsis (SNPS) for $507 million or $7.35 per share in cash.
  2. The acquisition of SuccessFactors (SFSF) by SAP AG (SAP) for $3.4 billion or $40.00 per share in cash.

Updated Deals:

  1. On November 28, 2011, Eagle Bancorp, Inc. (EGBN) and Alliance Bankshares Corporation (ABVA) announced that they have mutually agreed to terminate their agreement to merge.
  2. On November 30, 2011 Radio frequency chipmaker Skyworks Solutions (SWKS) said it will buy smaller rival Advanced Analogic Technologies (AATI) for $5.80 per share in cash, a price lower than the original offer, ending a standoff between the two companies.
  3. On December 02, 2011 Laboratory Corporation of America Holdings (LH) extended its tender offer for all outstanding shares of Orchid Cellmark (ORCH) to December 09, 2011.

Closed Deals:

  1. The acquisition of Southwall Technologies (SWTX) by Solutia (SOA) on November 28, 2011.
  2. The acquisition of Fundtech (FNDT) by an affiliate of GTCR on November 30, 2011.
  3. The acquisition of Penn Millers Holding Corporation (PMIC) by ACE Limited (ACE) on November 30, 2011.
  4. The acquisition of Center Financial Bancorp (CLFC) by Nara Bancorp (BBCN) on December 01, 2011.
  5. The acquisition of DPL Inc. (DPL) by AES Corporation (AES) on December 01, 2011.
  6. The acquisition of Encore Energy Partners (ENP) by Vanguard Natural Resources (VNR) on December 01, 2011.
  7. The acquisition of Global Industries Ltd. (GLBL) by Technip on December 01, 2011.
  8. The acquisition of Nalco Holdings (NLC) by Ecolab (ECL) on December 01, 2011.
  9. The acquisition of PAETEC Holding (PAET) by Windstream (WIN) on December 02, 2011.

Top 10 deals with largest spreads:

SymbolAnnounced

Date

Acquiring

Company

Closing

Price

Last

Price

Closing

Date

ProfitAnnualized

Profit

SFSF12/03/2011SAP AG (SAP)$40.00$26.2503/31/201252.38%163.41%
VTRO10/17/2011Inuvo, Inc. (INUV)$1.70$1.3703/31/201224.13%75.28%
MHS07/21/2011Express Scripts, Inc. (ESRX)$66.55$57.4806/30/201215.79%27.70%
EP10/16/2011Kinder Morgan, Inc. (KMI)$28.59$25.2903/31/201213.05%40.70%
CADC10/24/2011Novel Gain Holdings Limited (N/A)$2.65$2.3503/31/201212.77%39.83%
BXG11/14/2011BFC Financial Corporation (BFCF.PK)$3.04$2.7106/30/201212.18%21.37%
TAM01/19/2011LAN Airlines S.A. (LFL)$21.07$19.6012/31/20117.49%105.22%
VRUS11/21/2011Gilead Sciences, Inc. (GILD)$137.00$128.4403/31/20126.66%20.79%
LOOP04/27/2011CoStar Group (CSGP)$18.96$17.9812/31/20115.48%76.86%
HNB06/02/2011BankUnited Inc. (BKU)$3.59$3.4112/31/20115.35%75.07%

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

+SFSF12/03/2011SAP AG (SAP)All Cash$3.4 billion$40.00$26.25N/A03/31/201252.38%163.41%
+VTRO10/17/2011Inuvo, Inc. (INUV)All StockN/A$1.70$1.3728,84403/31/201224.13%75.28%
+MHS07/21/2011Express Scripts, Inc. (ESRX)Cash Plus Stock$29.1 billion$66.55$57.481,800,72906/30/201215.79%27.70%
+EP10/16/2011Kinder Morgan, Inc. (KMI)Cash Plus Stock$21 billion$28.59$25.2911,354,73203/31/201213.05%40.70%
+CADC10/24/2011Novel Gain Holdings Limited (N/A)All CashN/A$2.65$2.3512,26603/31/201212.77%39.83%
+BXG11/14/2011BFC Financial Corporation (BFCF.PK)All StockN/A$3.04$2.7156,66506/30/201212.18%21.37%
+TAM01/19/2011LAN Airlines S.A. (LFL)All StockN/A$21.07$19.60361,31312/31/20117.49%105.22%
+VRUS11/21/2011Gilead Sciences, Inc. (GILD)All Cash$11 billion$137.00$128.442,579,71703/31/20126.66%20.79%
+LOOP04/27/2011CoStar Group (CSGP)Cash Plus Stock$860 million$18.96$17.9833,29712/31/20115.48%76.86%
+HNB06/02/2011BankUnited Inc. (BKU)Cash Plus Stock$71.4 million$3.59$3.41N/A12/31/20115.35%75.07%
+CTBC10/26/2011Berkshire Hills Bancorp, Inc. (BHLB)All Stock$30 million$7.79$7.4146,86304/30/20125.10%12.65%
+GR09/21/2011United Technologies Corp. (UTX)All Cash$18.4 billion$127.50$122.412,446,26606/30/20124.16%7.30%
+ORCH04/06/2011Laboratory Corporation of America Holdings (LH)All Cash$85.4 million$2.80$2.71N/A12/09/20113.32%303.04%
+MMI08/15/2011Google (GOOG)All Cash$12.5 billion$40.00$38.783,233,15001/31/20123.15%20.15%
+SNDA11/22/2011Premium Lead Company Limited (“Parent”) and New Era Investment Holding Ltd. (N/A)All Cash$2.3 billion$41.35$40.25189,14203/31/20122.73%8.53%
+LAVA11/30/2011Synopsys Inc. (SNPS)All Cash$507 million$7.35$7.169,271,92103/31/20122.65%8.28%
+CEG04/28/2011Exelon Corporation (EXC)All Stock$7.9 billion$40.30$39.311,392,37401/31/20122.51%16.08%
+HGIC09/29/2011Nationwide Mutual Insurance Co (N/A)All Cash$760 million$60.00$58.9146,12601/31/20121.85%11.85%
+GEDU11/21/2011Pearson plc (N/A)All Cash$294 million$11.01$10.82485,96812/31/20111.76%24.65%
+TRH11/21/2011Alleghany Corporation (Y)Cash Plus Stock$3.4 billion$54.83$53.921,032,44003/31/20121.70%5.29%
+STBC04/28/2011Valley National Bancorp (VLY)All Stock$222 million$11.86$11.6812,23201/15/20121.54%13.72%
+ADPI11/07/2011JLL Partners, Inc. (N/A)All Cash$398 million$19.00$18.73123,21103/31/20121.44%4.50%
+NETL09/12/2011Broadcom (BRCM)All Cash$3.7 billion$50.00$49.311,059,03706/30/20121.40%2.46%
+PNS11/10/2011Avnet (AVT)All Cash$22 million$2.40$2.3722,13201/31/20121.27%8.11%
+SONE10/03/2011ACI Worldwide (ACIW)Cash Plus Stock$516 million$9.78$9.66861,30112/31/20111.27%17.76%
+VPF11/17/2011CTS Corp (N/A)All Cash$18 million$4.15$4.101,50001/31/20121.22%7.81%
+INXI11/01/2011Presidio (N/A)All CashN/A$8.75$8.65124,28003/31/20121.16%3.61%
+CPX10/10/2011Superior Energy Services (SPN)Cash Plus Stock$2.7 billion$35.78$35.42820,35112/31/20111.03%14.45%
+HS10/24/2011Cigna (CI)All Cash$3.8 billion$55.00$54.49513,92606/30/20120.94%1.64%
+NDN10/11/2011affiliates of Ares Management LLC and Canada Pension Plan Investment Board (N/A)All Cash$1.6 billion$22.00$21.83601,47103/31/20120.78%2.43%
+TOBC06/20/2011Susquehanna Bancshares (SUSQ)All Stock$343 million$27.72$27.5159,85403/31/20120.77%2.41%
+AATI05/26/2011Skyworks Solutions, Inc. (SWKS)All Cash$258.6 million$5.80$5.76548,27512/31/20110.69%9.75%
+PNNW11/12/2010City of Nashua (N/A)All Cash$138 million$29.00$28.804,66212/31/20110.69%9.75%
+TIN09/06/2011International Paper (IP)All Cash$4.3 billion$32.00$31.79818,48203/31/20120.66%2.06%
+PGN01/10/2011Duke Energy Corporation (DUK)All Stock$13.7 billion$53.87$53.551,164,60512/31/20110.60%8.38%
+MSSR11/08/2011Landry’s, Inc. (N/A)All Cash$131.6 million$8.75$8.70330,32001/15/20120.57%5.12%
+TKLC11/07/2011a consortium led by Siris Capital Group, LLC (N/A)All Cash$780 million$11.00$10.96664,77303/31/20120.36%1.14%
+NST10/18/2010Northeast Utilities (NU)All Stock$4.17 billion$45.05$44.91508,73412/31/20110.32%4.50%
+MFW09/12/2011MacAndrews and Forbes (N/A)All CashN/A$25.00$24.9331,00612/31/20110.28%3.94%
+AMAC09/22/2011Tunstall Healthcare Group Limited (N/A)All Cash$82.3 million$8.55$8.5338,10012/31/20110.23%3.29%
+CV07/12/2011Gaz metro Limited Partnership (N/A)All Cash$702 million$35.25$35.1838,13212/31/20110.20%2.79%
+RNOW10/24/2011Oracle (ORCL)All Cash$1.5 billion$43.00$42.92179,82503/31/20120.19%0.58%
+FRPT11/07/2011General Dynamics Corp. (GD)All Cash$360 million$5.52$5.511,247,29012/31/20110.18%2.55%
+PPDI10/03/2011affiliates of The Carlyle Group and Hellman & Friedman (N/A)All Cash$3.9 billion$33.25$33.191,421,83512/31/20110.18%2.54%
+PVSA06/15/2011F.N.B. Corporation (FNB)All Stock$130 million$23.33$23.303,32412/31/20110.11%1.59%
+BEXP10/17/2011Statoil ASA (STO)All Cash$4.4 billion$36.50$36.49884,21103/31/20120.03%0.09%
+ICLK11/01/2011Yahoo! Inc. (YHOO)All Cash$270 million$9.00$9.01213,62503/31/2012-0.11%-0.35%
+GAS12/07/2010AGL Resources Inc. (AGL)Cash Plus Stock$2.4 billion$55.08$55.31186,73012/31/2011-0.42%-5.84%
+SNSTA11/03/2011SAC an affiliate of Hospitality Properties Trust (N/A)All Cash$174 million$31.00$31.601,33903/31/2012-1.90%-5.92%
+BFSB08/17/2011Investors Bancorp, Inc. (ISBC)All Cash$10.3 million$0.80$0.852,00012/31/2011-5.88%-82.58%
+ADLR10/24/2011Cubist Pharmaceuticals (CBST)All Cash$190 million$4.25$4.601,120,10212/31/2011-7.61%-106.81%
+BARI04/20/2011Brookline Bancorp (BRKL)Cash Plus Stock$234 million$37.96$43.303,40512/31/2011-12.34%-173.24%
+SUG06/16/2011Energy Transfer Equity (ETE)All Stock$9.4 billion$36.43$41.60713,48203/31/2012-12.43%-38.77%
+NYX02/15/2011Deutsche Boerse (N/A)All StockN/A$13.93$27.661,539,96612/31/2011-49.65%-697.05%