Merger Arbitrage Mondays – December 19, 2011

Merger activity increased last week with three 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 2011 198
Total Number of Deals Not Completed in 2011 6
Total Number of Pending Deals
Cash Deals 32
Stock Deals 13
Stock & Cash Deals 8
Total Number of Pending Deals 53

New Deals:

  1. The acquisition of Synovis Life Technologies (SYNO) by Baxter International (BAX) for $325 million or $28 per share in cash.
  2. The acquisition of Novellus Systems (NVLS) by Lam Research Corp (LCRX) for $3.3 billion in an all stock deal, where shareholders of Novellus Systems will receive 1.125 shares of Lam Research common stock for each share of Novellus that they own. Lam Research will also initiate a $1.6 billion share buyback program after the deal closes.
  3. The acquisition of SonoSite (SONO) by Fujifilm Holdings for $995 million or $54 per share in cash.

Closed Deals:

  1. The acquisition of Adolor Corporation (ADLR) by Cubist Pharmaceuticals (CBST) on December 12, 2011.
  2. The acquisition of interCLICK (ICLK) by Yahoo (YHOO) on December 14, 2011.
  3. The acquisition of Orchid Cellmark (ORCH) by Laboratory Corporation of America (LH) on December 16, 2011

Top 10 deals with largest spreads:

Symbol Announced

Date

Acquiring

Company

Closing

Price

Last

Price

Closing

Date

Profit Annualized

Profit

MHS 07/21/2011 Express Scripts, Inc. (ESRX) $64.05 $54.63 06/30/2012 17.25% 32.45%
CADC 10/24/2011 Novel Gain Holdings Limited (N/A) $2.65 $2.28 03/31/2012 16.23% 57.51%
EP 10/16/2011 Kinder Morgan, Inc. (KMI) $28.10 $24.98 06/30/2012 12.51% 23.53%
VRUS 11/21/2011 Gilead Sciences, Inc. (GILD) $137.00 $123.75 03/31/2012 10.71% 37.94%
VTRO 10/17/2011 Inuvo, Inc. (INUV) $1.44 $1.33 03/31/2012 8.10% 28.72%
LOOP 04/27/2011 CoStar Group (CSGP) $18.89 $17.56 12/31/2011 7.60% 231.08%
BXG 11/14/2011 BFC Financial Corporation (BFCF.PK) $2.96 $2.76 06/30/2012 7.25% 13.63%
TAM 01/19/2011 LAN Airlines S.A. (LFL) $21.38 $19.98 06/30/2012 7.03% 13.22%
CTBC 10/26/2011 Berkshire Hills Bancorp, Inc. (BHLB) $7.95 $7.47 04/30/2012 6.39% 17.55%
GEDU 11/21/2011 Pearson plc (N/A) $11.01 $10.36 12/31/2011 6.27% 190.84%

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

+ MHS 07/21/2011 Express Scripts, Inc. (ESRX) Cash Plus Stock $29.1 billion $64.05 $54.63 3,390,708 06/30/2012 17.25% 32.45%
+ CADC 10/24/2011 Novel Gain Holdings Limited (N/A) All Cash N/A $2.65 $2.28 69,535 03/31/2012 16.23% 57.51%
+ EP 10/16/2011 Kinder Morgan, Inc. (KMI) Cash Plus Stock $21 billion $28.10 $24.98 N/A 06/30/2012 12.51% 23.53%
+ VRUS 11/21/2011 Gilead Sciences, Inc. (GILD) All Cash $11 billion $137.00 $123.75 6,144,125 03/31/2012 10.71% 37.94%
+ VTRO 10/17/2011 Inuvo, Inc. (INUV) All Stock N/A $1.44 $1.33 37,524 03/31/2012 8.10% 28.72%
+ LOOP 04/27/2011 CoStar Group (CSGP) Cash Plus Stock $860 million $18.89 $17.56 247,202 12/31/2011 7.60% 231.08%
+ BXG 11/14/2011 BFC Financial Corporation (BFCF.PK) All Stock N/A $2.96 $2.76 81,551 06/30/2012 7.25% 13.63%
+ TAM 01/19/2011 LAN Airlines S.A. (LFL) All Stock N/A $21.38 $19.98 N/A 06/30/2012 7.03% 13.22%
+ CTBC 10/26/2011 Berkshire Hills Bancorp, Inc. (BHLB) All Stock $30 million $7.95 $7.47 4,068 04/30/2012 6.39% 17.55%
+ GEDU 11/21/2011 Pearson plc (N/A) All Cash $294 million $11.01 $10.36 398,338 12/31/2011 6.27% 190.84%
+ GR 09/21/2011 United Technologies Corp. (UTX) All Cash $18.4 billion $127.50 $122.73 1,274,565 06/30/2012 3.89% 7.31%
+ SNDA 11/22/2011 Premium Lead Company Limited (“Parent”) and New Era Investment Holding Ltd. (N/A) All Cash $2.3 billion $41.35 $39.98 250,117 03/31/2012 3.43% 12.14%
+ MMI 08/15/2011 Google (GOOG) All Cash $12.5 billion $40.00 $38.70 2,099,639 01/31/2012 3.36% 28.51%
+ HNB 06/02/2011 BankUnited Inc. (BKU) Cash Plus Stock $71.4 million $3.56 $3.45 2,600 12/31/2011 3.15% 95.83%
+ LAVA 11/30/2011 Synopsys Inc. (SNPS) All Cash $507 million $7.35 $7.17 1,797,761 03/31/2012 2.51% 8.90%
+ CEG 04/28/2011 Exelon Corporation (EXC) All Stock $7.9 billion $39.84 $38.96 3,945,475 01/31/2012 2.26% 19.20%
+ PGN 01/10/2011 Duke Energy Corporation (DUK) All Stock $13.7 billion $54.89 $53.71 2,937,437 12/31/2011 2.19% 66.75%
+ HGIC 09/29/2011 Nationwide Mutual Insurance Co (N/A) All Cash $760 million $60.00 $58.78 199,839 01/31/2012 2.08% 17.62%
+ TRH 11/21/2011 Alleghany Corporation (Y) Cash Plus Stock $3.4 billion $55.77 $54.75 446,996 03/31/2012 1.86% 6.59%
+ BCSI 12/09/2011 Thoma Bravo, LLC (N/A) All Cash $1.3 billion $25.81 $25.34 3,120,436 03/31/2012 1.85% 6.57%
+ ADPI 11/07/2011 JLL Partners, Inc. (N/A) All Cash $398 million $19.00 $18.67 222,542 03/31/2012 1.77% 6.26%
+ AATI 05/26/2011 Skyworks Solutions, Inc. (SWKS) All Cash $258.6 million $5.80 $5.74 869,289 12/31/2011 1.05% 31.79%
+ VPF 11/17/2011 CTS Corp (N/A) All Cash $18 million $4.15 $4.11 8,100 01/31/2012 0.97% 8.26%
+ STBC 04/28/2011 Valley National Bancorp (VLY) All Stock $222 million $11.69 $11.58 76,220 01/15/2012 0.95% 12.84%
+ NETL 09/12/2011 Broadcom (BRCM) All Cash $3.7 billion $50.00 $49.55 732,362 06/30/2012 0.91% 1.71%
+ CPX 10/10/2011 Superior Energy Services (SPN) Cash Plus Stock $2.7 billion $32.83 $32.54 2,019,796 12/31/2011 0.88% 26.81%
+ SONE 10/03/2011 ACI Worldwide (ACIW) Cash Plus Stock $516 million $9.72 $9.64 551,733 12/31/2011 0.87% 26.41%
+ PNS 11/10/2011 Avnet (AVT) All Cash $22 million $2.40 $2.38 29,118 01/31/2012 0.84% 7.13%
+ HS 10/24/2011 Cigna (CI) All Cash $3.8 billion $55.00 $54.57 864,001 06/30/2012 0.79% 1.48%
+ TOBC 06/20/2011 Susquehanna Bancshares (SUSQ) All Stock $343 million $27.72 $27.51 62,404 03/31/2012 0.77% 2.73%
+ TIN 09/06/2011 International Paper (IP) All Cash $4.3 billion $32.00 $31.77 1,292,797 03/31/2012 0.72% 2.57%
+ RNOW 10/24/2011 Oracle (ORCL) All Cash $1.5 billion $43.00 $42.70 622,202 03/31/2012 0.70% 2.49%
+ DMAN 12/08/2011 International Business Machines Corp. (IBM) All Cash $440 million $13.20 $13.11 910,920 03/31/2012 0.69% 2.43%
+ INXI 11/01/2011 Presidio (N/A) All Cash N/A $8.75 $8.70 28,717 03/31/2012 0.57% 2.04%
+ NVLS 12/14/2011 Lam Research Corp (LRCX) All Stock $3.3 billion $40.41 $40.18 7,957,795 06/30/2012 0.57% 1.08%
+ PNNW 11/12/2010 City of Nashua (N/A) All Cash $138 million $29.00 $28.84 25,538 12/31/2011 0.55% 16.87%
+ NDN 10/11/2011 affiliates of Ares Management LLC and Canada Pension Plan Investment Board (N/A) All Cash $1.6 billion $22.00 $21.89 906,852 03/31/2012 0.50% 1.78%
+ SONO 12/15/2011 FUJIFILM Holdings Corporation (N/A) All Cash $995 million $54.00 $53.8 941,106 03/31/2012 0.37% 1.32%
+ SYNO 12/13/2011 Baxter International Inc. (BAX) All Cash $325 million $28.00 $27.90 260,748 03/31/2012 0.36% 1.27%
+ PVSA 06/15/2011 F.N.B. Corporation (FNB) All Stock $130 million $23.87 $23.79 9,719 12/31/2011 0.34% 10.34%
+ SFSF 12/03/2011 SAP AG (SAP) All Cash $3.4 billion $40.00 $39.88 5,900,502 03/31/2012 0.30% 1.07%
+ FRPT 11/07/2011 General Dynamics Corp. (GD) All Cash $360 million $5.52 $5.51 1,762,161 12/31/2011 0.18% 5.52%
+ CV 07/12/2011 Gaz metro Limited Partnership (N/A) All Cash $702 million $35.25 $35.20 117,594 12/31/2011 0.14% 4.32%
+ MSSR 11/08/2011 Landry’s, Inc. (N/A) All Cash $131.6 million $8.75 $8.74 178,905 01/15/2012 0.11% 1.55%
+ MFW 09/12/2011 MacAndrews and Forbes (N/A) All Cash N/A $25.00 $24.98 305,626 12/31/2011 0.08% 2.44%
+ SNSTA 11/03/2011 SAC an affiliate of Hospitality Properties Trust (N/A) All Cash $174 million $31.00 $31.00 N/A 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 $11.01 1,117,715 03/31/2012 -0.09% -0.32%
+ AMAC 09/22/2011 Tunstall Healthcare Group Limited (N/A) All Cash $82.3 million $8.55 $8.56 8,406 12/31/2011 -0.12% -3.55%
+ NST 10/18/2010 Northeast Utilities (NU) All Stock $4.17 billion $45.58 $45.84 844,099 12/31/2011 -0.57% -17.33%
+ BFSB 08/17/2011 Investors Bancorp, Inc. (ISBC) All Cash $10.3 million $0.80 $0.820 27,140 12/31/2011 -2.44% -74.19%
+ SUG 06/16/2011 Energy Transfer Equity (ETE) All Stock $9.4 billion $38.84 $42.21 3,155,779 03/31/2012 -7.98% -28.29%
+ BARI 04/20/2011 Brookline Bancorp (BRKL) Cash Plus Stock $234 million $36.64 $42.65 20,739 12/31/2011 -14.08% -428.29%
+ NYX 02/15/2011 Deutsche Boerse (N/A) All Stock N/A $13.93 $26.23 3,638,753 12/31/2011 -46.91% -1426.78%

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