Merger Arbitrage Mondays – December 26, 2011

Merger activity increased last week with six 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 2011 202
Total Number of Deals Not Completed in 2011 6
Total Number of Pending Deals
Cash Deals 33
Stock Deals 15
Stock & Cash Deals 9
Total Number of Pending Deals 57

New Deals:

  1. The acquisition of Winn-Dixie Stores (WINN) by BI-LO for $560 million or $9.50 per share in cash.
  2. The acquisition of CommerceFirst Bancorp (CMFB) by Sandy Spring Bancorp (SASR) for $25.4 million in a cash plus stock deal, where shareholders of CommerceFirst Bancorp will receive 0.8043 Sandy Spring shares for each CommerceFirst share or the cash consideration will be $13.60 per share. CommerceFirst shareholders will be permitted to elect Sandy Spring common stock or cash, or a combination of each; subject to proration procedures to preserve the aggregate 50% stock and 50% cash consideration mix.
  3. The acquisition of WCA Waste Corporation (WCAA) by Macquarie Infrastructure Partners II for $526 million or $6.5 per share in cash.
  4. The acquisition of Delphi Financial Group (DFG) by Tokio Marine Holdings for $2.7 billion or $43.875 per Class A share and $52.875 per Class B share in cash, through TMHD’s wholly owned subsidiary, Tokio Marine & Nichido Fire Insurance Co., Ltd. (TMNF). In addition, Delphi shareholders will receive $1.00 in cash per share pursuant to a one-time special dividend from Delphi for each share of Class A and Class B stock they own.
  5. The acquisition of Parlux Fragrances (PARL) by Perfumania Holdings (PERF) for $170 million, where shareholders of Parlux fragrances can elect to receive either $4.00 in cash plus 0.20 shares of Perfumania common stock or (ii) .53333 shares of Perfumania common stock, subject to proration. The maximum amount of cash that will be paid as merger consideration is $61,895,288, and the maximum number of Perfumania shares issuable in the merger is 5,919,052.
  6. The acquisition of Baldwin Technology (BLD) by Forsyth Baldwin, LLC for $27.3 million, where shareholders of Baldwin Technology will receive $0.96 per share in cash, subject to adjustment at closing based on certain criteria, including the extent that the difference between Baldwin Technology’s aggregate cash balances and the balance of aged accounts payable is less than $1,800,000.

Closed Deals:

  1. The acquisition of M & F Worldwide (MFW) by MacAndrews & Forbes Holdings on December 21, 2011.
  2. The acquisition of Global Education & Technology Group (GEDU) by Pearson plc on December 21, 2011.
  3. The acquisition of Force Protection (FRPT) by General Dynamics (GD) on December 22, 2011.
  4. The acquisition of American Medical Alert Corp (AMAC) by Tunstall Healthcare Group on December 22, 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) $65.45 $56.10 06/30/2012 16.67% 32.54%
VTRO 10/17/2011 Inuvo, Inc. (INUV) $1.27 $1.11 03/31/2012 14.21% 54.02%
CADC 10/24/2011 Novel Gain Holdings Limited (N/A) $2.65 $2.35 03/31/2012 12.77% 48.54%
CMFB 12/20/2011 Sandy Spring Bancorp Inc. (SASR) $14.44 $12.89 06/30/2012 12.00% 23.43%
VRUS 11/21/2011 Gilead Sciences, Inc. (GILD) $137.00 $123.02 03/31/2012 11.36% 43.21%
EP 10/16/2011 Kinder Morgan, Inc. (KMI) $28.74 $26.20 06/30/2012 9.71% 18.96%
CTBC 10/26/2011 Berkshire Hills Bancorp, Inc. (BHLB) $8.43 $7.73 04/30/2012 9.03% 26.15%
BLD 12/23/2011 Forsyth Baldwin, LLC (N/A) $0.96 $0.90 06/30/2012 6.67% 13.01%
TAM 01/19/2011 LAN Airlines S.A. (LFL) $21.41 $20.09 06/30/2012 6.58% 12.83%
LOOP 04/27/2011 CoStar Group (CSGP) $18.98 $18.31 12/31/2011 3.67% 267.85%

List of all pending deals:

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

Note: Please disregard the large spread for PARL. The announcement came out right before market close on Friday and trading in both PARL and PERF was halted. Our Merger Arbitrage tool should display the correct spread when these stocks start trading again.

Symbol Announced

Date

Acquiring

Company

Deal

Type

Closing

Value

Closing

Price

Last

Price

Volume Closing

Date

Profit Annu.

Profit

+ PARL 12/23/2011 Perfumania Holdings, Inc. (PERF) All Stock $170 million $10.51 $3.47 89,052 06/30/2012 202.78% 395.81%
+ MHS 07/21/2011 Express Scripts, Inc. (ESRX) Cash Plus Stock $29.1 billion $65.45 $56.10 1,523,951 06/30/2012 16.67% 32.54%
+ VTRO 10/17/2011 Inuvo, Inc. (INUV) All Stock N/A $1.27 $1.11 17,014 03/31/2012 14.21% 54.02%
+ CADC 10/24/2011 Novel Gain Holdings Limited (N/A) All Cash N/A $2.65 $2.35 65,400 03/31/2012 12.77% 48.54%
+ CMFB 12/20/2011 Sandy Spring Bancorp Inc. (SASR) All Stock $25.4 million $14.44 $12.89 N/A 06/30/2012 12.00% 23.43%
+ VRUS 11/21/2011 Gilead Sciences, Inc. (GILD) All Cash $11 billion $137.00 $123.02 1,724,433 03/31/2012 11.36% 43.21%
+ EP 10/16/2011 Kinder Morgan, Inc. (KMI) Cash Plus Stock $21 billion $28.74 $26.20 3,960,475 06/30/2012 9.71% 18.96%
+ CTBC 10/26/2011 Berkshire Hills Bancorp, Inc. (BHLB) All Stock $30 million $8.43 $7.73 35,731 04/30/2012 9.03% 26.15%
+ BLD 12/23/2011 Forsyth Baldwin, LLC (N/A) All Cash $27.3 million $0.96 $0.90 1,069,348 06/30/2012 6.67% 13.01%
+ TAM 01/19/2011 LAN Airlines S.A. (LFL) All Stock N/A $21.41 $20.09 418,179 06/30/2012 6.58% 12.83%
+ LOOP 04/27/2011 CoStar Group (CSGP) Cash Plus Stock $860 million $18.98 $18.31 348,752 12/31/2011 3.67% 267.85%
+ GR 09/21/2011 United Technologies Corp. (UTX) All Cash $18.4 billion $127.50 $123.40 585,034 06/30/2012 3.32% 6.49%
+ MMI 08/15/2011 Google (GOOG) All Cash $12.5 billion $40.00 $38.76 1,061,719 01/31/2012 3.20% 32.44%
+ SNDA 11/22/2011 Premium Lead Company Limited (“Parent”) and New Era Investment Holding Ltd. (N/A) All Cash $2.3 billion $41.35 $40.08 35,011 03/31/2012 3.17% 12.05%
+ PGN 01/10/2011 Duke Energy Corporation (DUK) All Stock $13.7 billion $57.19 $55.62 892,578 12/31/2011 2.82% 205.75%
+ LAVA 11/30/2011 Synopsys Inc. (SNPS) All Cash $507 million $7.35 $7.16 1,072,769 03/31/2012 2.65% 10.09%
+ RRR 12/16/2011 United Rentals, Inc. (URI) Cash Plus Stock $1.9 billion $19.21 $18.77 2,324,878 06/30/2012 2.36% 4.61%
+ NST 10/18/2010 Northeast Utilities (NU) All Stock $4.17 billion $46.85 $45.89 181,258 12/31/2011 2.10% 152.95%
+ CEG 04/28/2011 Exelon Corporation (EXC) All Stock $7.9 billion $40.47 $39.71 704,640 01/31/2012 1.92% 19.50%
+ HGIC 09/29/2011 Nationwide Mutual Insurance Co (N/A) All Cash $760 million $60.00 $58.88 35,514 01/31/2012 1.90% 19.29%
+ BCSI 12/09/2011 Thoma Bravo, LLC (N/A) All Cash $1.3 billion $25.81 $25.33 965,402 03/31/2012 1.89% 7.20%
+ TRH 11/21/2011 Alleghany Corporation (Y) Cash Plus Stock $3.4 billion $55.79 $54.90 238,232 03/31/2012 1.62% 6.15%
+ DFG 12/21/2011 Tokio Marine Holdings (N/A) All Cash $2.7 billion $44.80 $44.13 1,428,652 06/30/2012 1.52% 2.96%
+ WINN 12/19/2011 BI-LO, LLC (N/A) All Cash $560 million $9.50 $9.365 1,430,997 04/30/2012 1.44% 4.18%
+ TOBC 06/20/2011 Susquehanna Bancshares (SUSQ) All Stock $343 million $28.80 $28.40 41,169 03/31/2012 1.40% 5.32%
+ PNS 11/10/2011 Avnet (AVT) All Cash $22 million $2.40 $2.37 2,600 01/31/2012 1.27% 12.83%
+ TIN 09/06/2011 International Paper (IP) All Cash $4.3 billion $32.00 $31.61 501,817 03/31/2012 1.23% 4.69%
+ ADPI 11/07/2011 JLL Partners, Inc. (N/A) All Cash $398 million $19.00 $18.79 82,275 03/31/2012 1.12% 4.25%
+ NETL 09/12/2011 Broadcom (BRCM) All Cash $3.7 billion $50.00 $49.47 757,697 06/30/2012 1.07% 2.09%
+ NVLS 12/14/2011 Lam Research Corp (LRCX) All Stock $3.3 billion $41.55 $41.12 1,406,164 06/30/2012 1.04% 2.02%
+ VPF 11/17/2011 CTS Corp (N/A) All Cash $18 million $4.15 $4.11 2,500 01/31/2012 0.97% 9.87%
+ SONE 10/03/2011 ACI Worldwide (ACIW) Cash Plus Stock $516 million $9.76 $9.68 119,980 12/31/2011 0.87% 63.44%
+ SYNO 12/13/2011 Baxter International Inc. (BAX) All Cash $325 million $28.00 $27.79 283,409 03/31/2012 0.76% 2.87%
+ CPX 10/10/2011 Superior Energy Services (SPN) Cash Plus Stock $2.7 billion $34.72 $34.46 1,025,665 12/31/2011 0.75% 54.41%
+ TKLC 11/07/2011 a consortium led by Siris Capital Group, LLC (N/A) All Cash $780 million $11.00 $10.92 1,835,242 03/31/2012 0.73% 2.79%
+ MRT 12/16/2011 Fertitta Morton (N/A) All Cash $116.6 million $6.90 $6.85 100,187 02/15/2012 0.73% 5.22%
+ RNOW 10/24/2011 Oracle (ORCL) All Cash $1.5 billion $43.00 $42.69 270,609 03/31/2012 0.73% 2.76%
+ AATI 05/26/2011 Skyworks Solutions, Inc. (SWKS) All Cash $258.6 million $5.80 $5.76 326,281 12/31/2011 0.69% 50.69%
+ SFSF 12/03/2011 SAP AG (SAP) All Cash $3.4 billion $40.00 $39.73 1,423,460 03/31/2012 0.68% 2.58%
+ HS 10/24/2011 Cigna (CI) All Cash $3.8 billion $55.00 $54.64 220,810 06/30/2012 0.66% 1.29%
+ PNNW 11/12/2010 City of Nashua (N/A) All Cash $138 million $29.00 $28.82 7,344 12/31/2011 0.62% 45.59%
+ DMAN 12/08/2011 International Business Machines Corp. (IBM) All Cash $440 million $13.20 $13.13 1,078,761 03/31/2012 0.53% 2.03%
+ NDN 10/11/2011 affiliates of Ares Management LLC and Canada Pension Plan Investment Board (N/A) All Cash $1.6 billion $22.00 $21.92 323,436 03/31/2012 0.36% 1.39%
+ INXI 11/01/2011 Presidio (N/A) All Cash N/A $8.75 $8.72 2,870 03/31/2012 0.34% 1.31%
+ MSSR 11/08/2011 Landry’s, Inc. (N/A) All Cash $131.6 million $8.75 $8.72 68,034 01/15/2012 0.34% 6.28%
+ STBC 04/28/2011 Valley National Bancorp (VLY) All Stock $222 million $12.14 $12.10 6,902 01/15/2012 0.33% 6.03%
+ SNSTA 11/03/2011 SAC an affiliate of Hospitality Properties Trust (N/A) All Cash $174 million $31.00 $30.90 300 03/31/2012 0.32% 1.23%
+ CV 07/12/2011 Gaz metro Limited Partnership (N/A) All Cash $702 million $35.25 $35.15 12,903 12/31/2011 0.28% 20.77%
+ SONO 12/15/2011 FUJIFILM Holdings Corporation (N/A) All Cash $995 million $54.00 $53.86 35,821 03/31/2012 0.26% 0.99%
+ PVSA 06/15/2011 F.N.B. Corporation (FNB) All Stock $130 million $24.61 $24.58 4,100 12/31/2011 0.13% 9.33%
+ BARI 04/20/2011 Brookline Bancorp (BRKL) Cash Plus Stock $234 million $38.61 $38.59 2,578 12/31/2011 0.06% 4.28%
+ HNB 06/02/2011 BankUnited Inc. (BKU) Cash Plus Stock $71.4 million $3.65 $3.69 1,005 12/31/2011 -1.06% -77.63%
+ WCAA 12/21/2011 Macquarie Infrastructure Partners II (N/A) All Cash $526 million $6.50 $6.62 1,495,055 03/31/2012 -1.81% -6.89%
+ BXG 11/14/2011 BFC Financial Corporation (BFCF.PK) All Stock N/A $2.75 $2.87 153,548 06/30/2012 -4.11% -8.03%
+ SUG 06/16/2011 Energy Transfer Equity (ETE) All Stock $9.4 billion $39.80 $42.19 1,306,764 03/31/2012 -5.66% -21.54%
+ BFSB 08/17/2011 Investors Bancorp, Inc. (ISBC) All Cash $10.3 million $0.80 $0.92 3,576 12/31/2011 -13.04% -952.17%
+ NYX 02/15/2011 Deutsche Boerse (N/A) All Stock N/A $13.93 $26.38 1,374,999 12/31/2011 -47.21% -3446.30%

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