Merger Arbitrage Mondays – December 05, 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 2011 192
Total Number of Deals Not Completed in 2011 6
Total Number of Pending Deals
Cash Deals 33
Stock Deals 12
Stock & Cash Deals 9
Total Number of Pending Deals 54

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:

Symbol Announced

Date

Acquiring

Company

Closing

Price

Last

Price

Closing

Date

Profit Annualized

Profit

SFSF 12/03/2011 SAP AG (SAP) $40.00 $26.25 03/31/2012 52.38% 163.41%
VTRO 10/17/2011 Inuvo, Inc. (INUV) $1.70 $1.37 03/31/2012 24.13% 75.28%
MHS 07/21/2011 Express Scripts, Inc. (ESRX) $66.55 $57.48 06/30/2012 15.79% 27.70%
EP 10/16/2011 Kinder Morgan, Inc. (KMI) $28.59 $25.29 03/31/2012 13.05% 40.70%
CADC 10/24/2011 Novel Gain Holdings Limited (N/A) $2.65 $2.35 03/31/2012 12.77% 39.83%
BXG 11/14/2011 BFC Financial Corporation (BFCF.PK) $3.04 $2.71 06/30/2012 12.18% 21.37%
TAM 01/19/2011 LAN Airlines S.A. (LFL) $21.07 $19.60 12/31/2011 7.49% 105.22%
VRUS 11/21/2011 Gilead Sciences, Inc. (GILD) $137.00 $128.44 03/31/2012 6.66% 20.79%
LOOP 04/27/2011 CoStar Group (CSGP) $18.96 $17.98 12/31/2011 5.48% 76.86%
HNB 06/02/2011 BankUnited Inc. (BKU) $3.59 $3.41 12/31/2011 5.35% 75.07%

List of all pending deals:

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


Symbol Announced

Date

Acquiring

Company

Deal

Type

Closing

Value

Closing

Price

Last

Price

Volume Closing

Date

Profit Annu.

Profit

+ SFSF 12/03/2011 SAP AG (SAP) All Cash $3.4 billion $40.00 $26.25 N/A 03/31/2012 52.38% 163.41%
+ VTRO 10/17/2011 Inuvo, Inc. (INUV) All Stock N/A $1.70 $1.37 28,844 03/31/2012 24.13% 75.28%
+ MHS 07/21/2011 Express Scripts, Inc. (ESRX) Cash Plus Stock $29.1 billion $66.55 $57.48 1,800,729 06/30/2012 15.79% 27.70%
+ EP 10/16/2011 Kinder Morgan, Inc. (KMI) Cash Plus Stock $21 billion $28.59 $25.29 11,354,732 03/31/2012 13.05% 40.70%
+ CADC 10/24/2011 Novel Gain Holdings Limited (N/A) All Cash N/A $2.65 $2.35 12,266 03/31/2012 12.77% 39.83%
+ BXG 11/14/2011 BFC Financial Corporation (BFCF.PK) All Stock N/A $3.04 $2.71 56,665 06/30/2012 12.18% 21.37%
+ TAM 01/19/2011 LAN Airlines S.A. (LFL) All Stock N/A $21.07 $19.60 361,313 12/31/2011 7.49% 105.22%
+ VRUS 11/21/2011 Gilead Sciences, Inc. (GILD) All Cash $11 billion $137.00 $128.44 2,579,717 03/31/2012 6.66% 20.79%
+ LOOP 04/27/2011 CoStar Group (CSGP) Cash Plus Stock $860 million $18.96 $17.98 33,297 12/31/2011 5.48% 76.86%
+ HNB 06/02/2011 BankUnited Inc. (BKU) Cash Plus Stock $71.4 million $3.59 $3.41 N/A 12/31/2011 5.35% 75.07%
+ CTBC 10/26/2011 Berkshire Hills Bancorp, Inc. (BHLB) All Stock $30 million $7.79 $7.41 46,863 04/30/2012 5.10% 12.65%
+ GR 09/21/2011 United Technologies Corp. (UTX) All Cash $18.4 billion $127.50 $122.41 2,446,266 06/30/2012 4.16% 7.30%
+ ORCH 04/06/2011 Laboratory Corporation of America Holdings (LH) All Cash $85.4 million $2.80 $2.71 N/A 12/09/2011 3.32% 303.04%
+ MMI 08/15/2011 Google (GOOG) All Cash $12.5 billion $40.00 $38.78 3,233,150 01/31/2012 3.15% 20.15%
+ SNDA 11/22/2011 Premium Lead Company Limited (“Parent”) and New Era Investment Holding Ltd. (N/A) All Cash $2.3 billion $41.35 $40.25 189,142 03/31/2012 2.73% 8.53%
+ LAVA 11/30/2011 Synopsys Inc. (SNPS) All Cash $507 million $7.35 $7.16 9,271,921 03/31/2012 2.65% 8.28%
+ CEG 04/28/2011 Exelon Corporation (EXC) All Stock $7.9 billion $40.30 $39.31 1,392,374 01/31/2012 2.51% 16.08%
+ HGIC 09/29/2011 Nationwide Mutual Insurance Co (N/A) All Cash $760 million $60.00 $58.91 46,126 01/31/2012 1.85% 11.85%
+ GEDU 11/21/2011 Pearson plc (N/A) All Cash $294 million $11.01 $10.82 485,968 12/31/2011 1.76% 24.65%
+ TRH 11/21/2011 Alleghany Corporation (Y) Cash Plus Stock $3.4 billion $54.83 $53.92 1,032,440 03/31/2012 1.70% 5.29%
+ STBC 04/28/2011 Valley National Bancorp (VLY) All Stock $222 million $11.86 $11.68 12,232 01/15/2012 1.54% 13.72%
+ ADPI 11/07/2011 JLL Partners, Inc. (N/A) All Cash $398 million $19.00 $18.73 123,211 03/31/2012 1.44% 4.50%
+ NETL 09/12/2011 Broadcom (BRCM) All Cash $3.7 billion $50.00 $49.31 1,059,037 06/30/2012 1.40% 2.46%
+ PNS 11/10/2011 Avnet (AVT) All Cash $22 million $2.40 $2.37 22,132 01/31/2012 1.27% 8.11%
+ SONE 10/03/2011 ACI Worldwide (ACIW) Cash Plus Stock $516 million $9.78 $9.66 861,301 12/31/2011 1.27% 17.76%
+ VPF 11/17/2011 CTS Corp (N/A) All Cash $18 million $4.15 $4.10 1,500 01/31/2012 1.22% 7.81%
+ INXI 11/01/2011 Presidio (N/A) All Cash N/A $8.75 $8.65 124,280 03/31/2012 1.16% 3.61%
+ CPX 10/10/2011 Superior Energy Services (SPN) Cash Plus Stock $2.7 billion $35.78 $35.42 820,351 12/31/2011 1.03% 14.45%
+ HS 10/24/2011 Cigna (CI) All Cash $3.8 billion $55.00 $54.49 513,926 06/30/2012 0.94% 1.64%
+ NDN 10/11/2011 affiliates of Ares Management LLC and Canada Pension Plan Investment Board (N/A) All Cash $1.6 billion $22.00 $21.83 601,471 03/31/2012 0.78% 2.43%
+ TOBC 06/20/2011 Susquehanna Bancshares (SUSQ) All Stock $343 million $27.72 $27.51 59,854 03/31/2012 0.77% 2.41%
+ AATI 05/26/2011 Skyworks Solutions, Inc. (SWKS) All Cash $258.6 million $5.80 $5.76 548,275 12/31/2011 0.69% 9.75%
+ PNNW 11/12/2010 City of Nashua (N/A) All Cash $138 million $29.00 $28.80 4,662 12/31/2011 0.69% 9.75%
+ TIN 09/06/2011 International Paper (IP) All Cash $4.3 billion $32.00 $31.79 818,482 03/31/2012 0.66% 2.06%
+ PGN 01/10/2011 Duke Energy Corporation (DUK) All Stock $13.7 billion $53.87 $53.55 1,164,605 12/31/2011 0.60% 8.38%
+ MSSR 11/08/2011 Landry’s, Inc. (N/A) All Cash $131.6 million $8.75 $8.70 330,320 01/15/2012 0.57% 5.12%
+ TKLC 11/07/2011 a consortium led by Siris Capital Group, LLC (N/A) All Cash $780 million $11.00 $10.96 664,773 03/31/2012 0.36% 1.14%
+ NST 10/18/2010 Northeast Utilities (NU) All Stock $4.17 billion $45.05 $44.91 508,734 12/31/2011 0.32% 4.50%
+ MFW 09/12/2011 MacAndrews and Forbes (N/A) All Cash N/A $25.00 $24.93 31,006 12/31/2011 0.28% 3.94%
+ AMAC 09/22/2011 Tunstall Healthcare Group Limited (N/A) All Cash $82.3 million $8.55 $8.53 38,100 12/31/2011 0.23% 3.29%
+ CV 07/12/2011 Gaz metro Limited Partnership (N/A) All Cash $702 million $35.25 $35.18 38,132 12/31/2011 0.20% 2.79%
+ RNOW 10/24/2011 Oracle (ORCL) All Cash $1.5 billion $43.00 $42.92 179,825 03/31/2012 0.19% 0.58%
+ FRPT 11/07/2011 General Dynamics Corp. (GD) All Cash $360 million $5.52 $5.51 1,247,290 12/31/2011 0.18% 2.55%
+ PPDI 10/03/2011 affiliates of The Carlyle Group and Hellman & Friedman (N/A) All Cash $3.9 billion $33.25 $33.19 1,421,835 12/31/2011 0.18% 2.54%
+ PVSA 06/15/2011 F.N.B. Corporation (FNB) All Stock $130 million $23.33 $23.30 3,324 12/31/2011 0.11% 1.59%
+ BEXP 10/17/2011 Statoil ASA (STO) All Cash $4.4 billion $36.50 $36.49 884,211 03/31/2012 0.03% 0.09%
+ ICLK 11/01/2011 Yahoo! Inc. (YHOO) All Cash $270 million $9.00 $9.01 213,625 03/31/2012 -0.11% -0.35%
+ GAS 12/07/2010 AGL Resources Inc. (AGL) Cash Plus Stock $2.4 billion $55.08 $55.31 186,730 12/31/2011 -0.42% -5.84%
+ SNSTA 11/03/2011 SAC an affiliate of Hospitality Properties Trust (N/A) All Cash $174 million $31.00 $31.60 1,339 03/31/2012 -1.90% -5.92%
+ BFSB 08/17/2011 Investors Bancorp, Inc. (ISBC) All Cash $10.3 million $0.80 $0.85 2,000 12/31/2011 -5.88% -82.58%
+ ADLR 10/24/2011 Cubist Pharmaceuticals (CBST) All Cash $190 million $4.25 $4.60 1,120,102 12/31/2011 -7.61% -106.81%
+ BARI 04/20/2011 Brookline Bancorp (BRKL) Cash Plus Stock $234 million $37.96 $43.30 3,405 12/31/2011 -12.34% -173.24%
+ SUG 06/16/2011 Energy Transfer Equity (ETE) All Stock $9.4 billion $36.43 $41.60 713,482 03/31/2012 -12.43% -38.77%
+ NYX 02/15/2011 Deutsche Boerse (N/A) All Stock N/A $13.93 $27.66 1,539,966 12/31/2011 -49.65% -697.05%

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