Merger Arbitrage Mondays – 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 2012 6
Total Number of Pending Deals
Cash Deals 31
Stock Deals 13
Stock & Cash Deals 9
Total Number of Pending Deals 53

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:

Symbol Announced

Date

Acquiring

Company

Closing

Price

Last

Price

Closing

Date

Profit Annualized

Profit

MHS 07/21/2011 Express Scripts, Inc. (ESRX) $68.61 $60.53 06/30/2012 13.35% 29.36%
CMFB 12/20/2011 Sandy Spring Bancorp Inc. (SASR) $14.58 $13.09 06/30/2012 11.40% 25.06%
LOOP 04/27/2011 CoStar Group (CSGP) $18.78 $16.93 01/31/2012 10.92% 265.80%
EP 10/16/2011 Kinder Morgan, Inc. (KMI) $29.37 $26.73 06/30/2012 9.87% 21.70%
PARL 12/23/2011 Perfumania Holdings, Inc. (PERF) $5.74 $5.23 06/30/2012 9.73% 21.38%
GRRF 01/12/2012 Talenthome Management Limited (N/A) $3.15 $2.93 06/30/2012 7.51% 16.51%
CTBC 10/26/2011 Berkshire Hills Bancorp, Inc. (BHLB) $8.67 $8.15 04/30/2012 6.40% 22.25%
TAM 01/19/2011 LAN Airlines S.A. (LFL) $22.23 $20.98 06/30/2012 5.96% 13.10%
INHX 01/07/2012 Bristol-Myers Squibb Company (BMY) $26.00 $24.55 03/31/2012 5.91% 28.74%
HGIC 09/29/2011 Nationwide Mutual Insurance Co (N/A) $60.00 $56.80 01/31/2012 5.63% 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.

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