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Merger Arbitrage Mondays – January 16, 2012

  • January 16, 2012

Merger activity increased last week with two new deals announced and two closing. Georgia Gulf (GGC) received an unsolicited $1.03 billion or $30/share offer from Westlake Chemical (WLK) and stock shot up 34.52% to $32.93 on expectations of a rival bid. Since this is an unsolicited bid that is yet to be accepted, we have not included the deal in our database.

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 20126
Total Number of Pending Deals
Cash Deals31
Stock Deals13
Stock & Cash Deals9
Total Number of Pending Deals53

New Deals:

  1. The acquisition of Inhibitex (INHX) by Bristol-Myers Squibb (BMY) for $2.5 billion or $26 per share in cash.
  2. China GrenTech Corporation Limited (GRRF) accepted the going private offer it received on November 14, 2011 from Talenthome Management Limited, which is jointly owned indirectly by Mr. Yingjie Gao, China GrenTech’s Chairman and Chief Executive Officer, Ms. Rong Yu, China GrenTech’s Director and Chief Financial Officer. Shareholders will receive $0.126 in cash for each ordinary share they hold. Since each American Depository Share (ADS) represents 25 ordinary shares, ADS holders will receive $3.15 per ADS. The transaction is expected to close before the end of the second quarter of 2012.

Closed Deals:

  1. The acquisition of Advanced Analogic Technologies Incorporated (AATI) by Skyworks Solutions (SWKS) on January 10, 2012.
  2. The acquisition 99 Cents Only Stores (NDN) by affiliates of Ares Management LLC and Canada Pension Plan Investment Board on January 13, 2012.

Top 10 deals with largest spreads:

SymbolAnnounced

Date

Acquiring

Company

Closing

Price

Last

Price

Closing

Date

ProfitAnnualized

Profit

MHS07/21/2011Express Scripts, Inc. (ESRX)$68.61$60.5306/30/201213.35%29.36%
CMFB12/20/2011Sandy Spring Bancorp Inc. (SASR)$14.58$13.0906/30/201211.40%25.06%
LOOP04/27/2011CoStar Group (CSGP)$18.78$16.9301/31/201210.92%265.80%
EP10/16/2011Kinder Morgan, Inc. (KMI)$29.37$26.7306/30/20129.87%21.70%
PARL12/23/2011Perfumania Holdings, Inc. (PERF)$5.74$5.2306/30/20129.73%21.38%
GRRF01/12/2012Talenthome Management Limited (N/A)$3.15$2.9306/30/20127.51%16.51%
CTBC10/26/2011Berkshire Hills Bancorp, Inc. (BHLB)$8.67$8.1504/30/20126.40%22.25%
TAM01/19/2011LAN Airlines S.A. (LFL)$22.23$20.9806/30/20125.96%13.10%
INHX01/07/2012Bristol-Myers Squibb Company (BMY)$26.00$24.5503/31/20125.91%28.74%
HGIC09/29/2011Nationwide Mutual Insurance Co (N/A)$60.00$56.8001/31/20125.63%137.09%

List of all pending deals:

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


Voluntary Disclosure: I have a long position in INHX.