Merger Arbitrage Mondays – December 12, 2011

Merger activity remained steady last week with two new deals announced and three closing.

In addition to the two new acquisitions, on December 07, 2011, J. C. Penney Company (JCP) and Martha Stewart Living Omnimedia (MSO) announced that they have entered into a strategic alliance where J.C. Penney will invest $38.5 Million in Martha Stewart at $3.50 per share for 16.6% stake.

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 195
Total Number of Deals Not Completed in 2011 6
Total Number of Pending Deals
Cash Deals 33
Stock Deals 12
Stock & Cash Deals 8
Total Number of Pending Deals 53

New Deals:

  1. The acquisition of DemandTec (DMAN) by International Business Machines (IBM) for $440 million or $13.20 per share in cash.
  2. The acquisition of Blue Coat Systems (BCSI) by private equity investment firm Thoma Bravo, LLC for $1.3 billion or $25.81 per share in cash.

Closed Deals:

  1. The acquisition of Pharmaceutical Product Development (PPDI) by affiliates of The Carlyle Group and affiliates of Hellman & Friedman on December 05, 2011.
  2. The acquisition of Brigham Exploration Company (BEXP) by Statoil ASA (STO) on December 8, 2011.
  3. The acquisition of Nicor (GAS) by AGL Resources (AGL) on December 10, 2011.

Top 10 deals with largest spreads:

Symbol Announced

Date

Acquiring

Company

Closing

Price

Last

Price

Closing

Date

Profit Annualized

Profit

VTRO 10/17/2011 Inuvo, Inc. (INUV) $1.55 $1.29 03/31/2012 19.84% 65.85%
MHS 07/21/2011 Express Scripts, Inc. (ESRX) $66.05 $57.13 06/30/2012 15.62% 28.36%
CADC 10/24/2011 Novel Gain Holdings Limited (N/A) $2.65 $2.30 03/31/2012 15.22% 50.49%
EP 10/16/2011 Kinder Morgan, Inc. (KMI) $28.00 $24.87 03/31/2012 12.60% 41.81%
TAM 01/19/2011 LAN Airlines S.A. (LFL) $21.54 $19.77 12/31/2011 8.94% 171.70%
GEDU 11/21/2011 Pearson plc (N/A) $11.01 $10.24 12/31/2011 7.52% 144.45%
CTBC 10/26/2011 Berkshire Hills Bancorp, Inc. (BHLB) $7.91 $7.42 04/30/2012 6.65% 17.34%
VRUS 11/21/2011 Gilead Sciences, Inc. (GILD) $137.00 $129.00 03/31/2012 6.20% 20.58%
LOOP 04/27/2011 CoStar Group (CSGP) $18.98 $17.98 12/31/2011 5.53% 106.33%
GR 09/21/2011 United Technologies Corp. (UTX) $127.50 $122.87 06/30/2012 3.77% 6.84%

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

+ VTRO 10/17/2011 Inuvo, Inc. (INUV) All Stock N/A $1.55 $1.29 700 03/31/2012 19.84% 65.85%
+ MHS 07/21/2011 Express Scripts, Inc. (ESRX) Cash Plus Stock $29.1 billion $66.05 $57.13 2,030,600 06/30/2012 15.62% 28.36%
+ CADC 10/24/2011 Novel Gain Holdings Limited (N/A) All Cash N/A $2.65 $2.30 26,684 03/31/2012 15.22% 50.49%
+ EP 10/16/2011 Kinder Morgan, Inc. (KMI) Cash Plus Stock $21 billion $28.00 $24.87 8,695,031 03/31/2012 12.60% 41.81%
+ TAM 01/19/2011 LAN Airlines S.A. (LFL) All Stock N/A $21.54 $19.77 732,986 12/31/2011 8.94% 171.70%
+ GEDU 11/21/2011 Pearson plc (N/A) All Cash $294 million $11.01 $10.24 751,336 12/31/2011 7.52% 144.45%
+ CTBC 10/26/2011 Berkshire Hills Bancorp, Inc. (BHLB) All Stock $30 million $7.91 $7.42 19,020 04/30/2012 6.65% 17.34%
+ VRUS 11/21/2011 Gilead Sciences, Inc. (GILD) All Cash $11 billion $137.00 $129.00 886,223 03/31/2012 6.20% 20.58%
+ LOOP 04/27/2011 CoStar Group (CSGP) Cash Plus Stock $860 million $18.98 $17.98 272,237 12/31/2011 5.53% 106.33%
+ GR 09/21/2011 United Technologies Corp. (UTX) All Cash $18.4 billion $127.50 $122.87 939,582 06/30/2012 3.77% 6.84%
+ SNDA 11/22/2011 Premium Lead Company Limited (“Parent”) and New Era Investment Holding Ltd. (N/A) All Cash $2.3 billion $41.35 $39.96 119,805 03/31/2012 3.48% 11.54%
+ CEG 04/28/2011 Exelon Corporation (EXC) All Stock $7.9 billion $40.53 $39.36 2,460,744 01/31/2012 2.97% 21.69%
+ MMI 08/15/2011 Google (GOOG) All Cash $12.5 billion $40.00 $38.87 3,606,149 01/31/2012 2.91% 21.22%
+ BCSI 12/09/2011 Thoma Bravo, LLC (N/A) All Cash $1.3 billion $25.81 $25.11 50,592,452 03/31/2012 2.79% 9.25%
+ BXG 11/14/2011 BFC Financial Corporation (BFCF.PK) All Stock N/A $2.80 $2.74 34,876 06/30/2012 2.19% 3.98%
+ LAVA 11/30/2011 Synopsys Inc. (SNPS) All Cash $507 million $7.35 $7.20 2,462,913 03/31/2012 2.08% 6.91%
+ STBC 04/28/2011 Valley National Bancorp (VLY) All Stock $222 million $11.99 $11.77 30,350 01/15/2012 1.87% 20.07%
+ HGIC 09/29/2011 Nationwide Mutual Insurance Co (N/A) All Cash $760 million $60.00 $58.92 34,977 01/31/2012 1.83% 13.38%
+ TRH 11/21/2011 Alleghany Corporation (Y) Cash Plus Stock $3.4 billion $55.78 $54.92 401,048 03/31/2012 1.57% 5.22%
+ HNB 06/02/2011 BankUnited Inc. (BKU) Cash Plus Stock $71.4 million $3.53 $3.48 N/A 12/31/2011 1.55% 29.78%
+ VPF 11/17/2011 CTS Corp (N/A) All Cash $18 million $4.15 $4.10 100 01/31/2012 1.22% 8.90%
+ ADPI 11/07/2011 JLL Partners, Inc. (N/A) All Cash $398 million $19.00 $18.80 118,758 03/31/2012 1.06% 3.53%
+ HS 10/24/2011 Cigna (CI) All Cash $3.8 billion $55.00 $54.47 831,588 06/30/2012 0.97% 1.77%
+ SONE 10/03/2011 ACI Worldwide (ACIW) Cash Plus Stock $516 million $9.82 $9.73 614,285 12/31/2011 0.94% 18.08%
+ AATI 05/26/2011 Skyworks Solutions, Inc. (SWKS) All Cash $258.6 million $5.80 $5.75 1,634,149 12/31/2011 0.87% 16.70%
+ NETL 09/12/2011 Broadcom (BRCM) All Cash $3.7 billion $50.00 $49.57 2,010,609 06/30/2012 0.87% 1.58%
+ PNS 11/10/2011 Avnet (AVT) All Cash $22 million $2.40 $2.38 14,030 01/31/2012 0.84% 6.13%
+ CPX 10/10/2011 Superior Energy Services (SPN) Cash Plus Stock $2.7 billion $34.48 $34.22 905,559 12/31/2011 0.76% 14.63%
+ PNNW 11/12/2010 City of Nashua (N/A) All Cash $138 million $29.00 $28.80 5,883 12/31/2011 0.69% 13.34%
+ TIN 09/06/2011 International Paper (IP) All Cash $4.3 billion $32.00 $31.78 2,187,457 03/31/2012 0.69% 2.30%
+ DMAN 12/08/2011 International Business Machines Corp. (IBM) All Cash $440 million $13.20 $13.12 3,529,225 03/31/2012 0.61% 2.02%
+ RNOW 10/24/2011 Oracle (ORCL) All Cash $1.5 billion $43.00 $42.75 1,031,481 03/31/2012 0.58% 1.94%
+ TOBC 06/20/2011 Susquehanna Bancshares (SUSQ) All Stock $343 million $27.55 $27.39 28,835 03/31/2012 0.58% 1.92%
+ NDN 10/11/2011 affiliates of Ares Management LLC and Canada Pension Plan Investment Board (N/A) All Cash $1.6 billion $22.00 $21.88 827,664 03/31/2012 0.55% 1.82%
+ INXI 11/01/2011 Presidio (N/A) All Cash N/A $8.75 $8.71 32,188 03/31/2012 0.46% 1.52%
+ MSSR 11/08/2011 Landry’s, Inc. (N/A) All Cash $131.6 million $8.75 $8.71 284,624 01/15/2012 0.46% 4.93%
+ SFSF 12/03/2011 SAP AG (SAP) All Cash $3.4 billion $40.00 $39.87 5,238,843 03/31/2012 0.33% 1.08%
+ PVSA 06/15/2011 F.N.B. Corporation (FNB) All Stock $130 million $24.09 $24.02 1,796 12/31/2011 0.29% 5.49%
+ CV 07/12/2011 Gaz metro Limited Partnership (N/A) All Cash $702 million $35.25 $35.16 46,946 12/31/2011 0.26% 4.92%
+ AMAC 09/22/2011 Tunstall Healthcare Group Limited (N/A) All Cash $82.3 million $8.55 $8.53 880 12/31/2011 0.23% 4.50%
+ PGN 01/10/2011 Duke Energy Corporation (DUK) All Stock $13.7 billion $54.50 $54.37 1,211,812 12/31/2011 0.23% 4.48%
+ NST 10/18/2010 Northeast Utilities (NU) All Stock $4.17 billion $45.00 $44.92 249,163 12/31/2011 0.18% 3.49%
+ FRPT 11/07/2011 General Dynamics Corp. (GD) All Cash $360 million $5.52 $5.51 1,518,856 12/31/2011 0.18% 3.49%
+ MFW 09/12/2011 MacAndrews and Forbes (N/A) All Cash N/A $25.00 $24.99 133,746 12/31/2011 0.04% 0.77%
+ ICLK 11/01/2011 Yahoo! Inc. (YHOO) All Cash $270 million $9.00 $9.00 111,478 03/31/2012 0.00% 0.00%
+ TKLC 11/07/2011 a consortium led by Siris Capital Group, LLC (N/A) All Cash $780 million $11.00 $11.02 725,020 03/31/2012 -0.18% -0.60%
+ ORCH 04/06/2011 Laboratory Corporation of America Holdings (LH) All Cash $85.4 million $2.80 $2.81 655,942 12/09/2011 -0.36% 43.30%
+ SNSTA 11/03/2011 SAC an affiliate of Hospitality Properties Trust (N/A) All Cash $174 million $31.00 $31.48 1,200 03/31/2012 -1.52% -5.06%
+ BFSB 08/17/2011 Investors Bancorp, Inc. (ISBC) All Cash $10.3 million $0.80 $0.841 2,848 12/31/2011 -4.88% -93.65%
+ SUG 06/16/2011 Energy Transfer Equity (ETE) All Stock $9.4 billion $38.59 $42.00 977,495 03/31/2012 -8.12% -26.94%
+ ADLR 10/24/2011 Cubist Pharmaceuticals (CBST) All Cash $190 million $4.25 $4.77 437,663 12/31/2011 -10.90% -209.42%
+ BARI 04/20/2011 Brookline Bancorp (BRKL) Cash Plus Stock $234 million $37.11 $43.04 28,185 12/31/2011 -13.77% -264.54%
+ NYX 02/15/2011 Deutsche Boerse (N/A) All Stock N/A $13.93 $27.25 1,878,938 12/31/2011 -48.90% -939.30%

2 Comments

  1. Paul Tal
    December 12, 2011 at 2:18 pm

    re: KMI/EP transaction. 3/31 close does not seem realistic. In late November, company projected a Q2 2012 close. Since then FTC has made another document request which means extension of 30 days after the company has provided information for FTC approval.

  2. Asif
    December 19, 2011 at 12:07 am

    You are right. We will update the database to reflect the mid-2012 date.

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