Merger Arbitrage Mondays – January 30, 2012

Merger activity increased last week with five 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 2012 11
Total Number of Pending Deals
Cash Deals 29
Stock Deals 15
Stock & Cash Deals 11
Total Number of Pending Deals 55
Total Deal Size $335.5 billion

New Deals:

  1. The acquisition of MineFinders Corporation (MFN) by Pan American Silver Corp. (PAAS) in a cash plus stock deal. Under the terms of the agreement, Minefinders shareholders will be entitled to elect to receive, in exchange for each Minefinders share held, either: (i) 0.55 shares of Pan American and $1.84 in cash; or (ii) 0.6235 shares of Pan American; or (iii) $15.60 in cash, subject to pro-ration under total aggregate cash and share pools of approximately $176 million and approximately 53 million Pan American shares, respectively, on a fully-diluted basis.
  2. The acquisition of Indiana Community Bancorp (INCB) by Old National Bancorp (ONB) for $79.2 million in an all stock deal, where Indiana Community shareholders will receive 1.90 shares of Old National common stock for each share of Indiana Community held by them.
  3. The acquisition of Micromet (MITI) by Amgen (AMGN) for $1.16 billion or $11.00 per share in cash.
  4. The acquisition of VIST Financial Corp (VIST) by Tompkins Financial Corporation (TMP) for $86 million in an all stock deal, where VIST shareholders will receive 0.3127 shares of Tompkins Financial common stock for each share of VIST common stock held. The exchange ratio is subject to adjustment based on the average of the closing prices of Tompkins Financial common stock for the 20 business days ending three business days prior to the VIST shareholder meeting called to consider the merger agreement (the “Average Closing Price”). If the Average Closing Price is more than $43.98, the Exchange Ratio shall be 0.2842; and if the Average Closing Price is less than $35.98, the Exchange Ratio shall be 0.3475.
  5. The acquisition of Solutia (SOA) by Eastman Chemical Company (EMN) for $4.7 billion in a cash plus stock deal, where Solutia stockholders will receive $22.00 in cash and 0.12 shares of Eastman common stock for each share of Solutia common stock.

Updated Deals:

  1. On January 24, 2012, ACI Worlwide (ACIW) further extended its exchange offer for S1 Corporation (SONE). ACI and S1 will not close the transaction prior to February 10, 2012 without the DOJ’s prior consent.

Closed Deals:

  1. The acquisition of Pennichuck Corporation (PNNW) by the City of Nashua on January 25, 2012.
  2. The acquisition of Valpey-Fisher Corporation (VPF) by CTS Corporation (CTS) on January 25, 2012.
  3. The acquisition of RightNow Technologies (RNOW) by Oracle (ORCL) on January 25, 2012.
  4. The acquisition of Tekelec (TKLC) by Siris Capital Group on January 27, 2012.

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) $1.79 $1.37 03/31/2012 30.90% 184.91%
VQ 01/16/2012 Denver Parent Corporation (N/A) $12.50 $10.51 03/31/2012 18.93% 113.30%
LOOP 04/27/2011 CoStar Group (CSGP) $18.73 $16.50 01/31/2012 13.54% 4941.41%
MHS 07/21/2011 Express Scripts, Inc. (ESRX) $70.47 $62.07 06/30/2012 13.53% 32.48%
VIST 01/26/2012 Tompkins Financial Corporation (TMP) $12.58 $11.19 09/30/2012 12.45% 18.62%
INCB 01/25/2012 Old National Bancorp Capital (ONB) $22.97 $20.80 06/30/2012 10.44% 25.06%
EP 10/16/2011 Kinder Morgan, Inc. (KMI) $29.17 $26.54 06/30/2012 9.90% 23.77%
GRRF 01/12/2012 Talenthome Management Limited (N/A) $3.15 $2.91 06/30/2012 8.25% 19.80%
CMFB 12/20/2011 Sandy Spring Bancorp Inc. (SASR) $14.12 $13.12 06/30/2012 7.59% 18.22%
CTBC 10/26/2011 Berkshire Hills Bancorp, Inc. (BHLB) $8.76 $8.17 04/30/2012 7.26% 29.11%

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 $1.79 $1.37 42,607 03/31/2012 30.90% 184.91%
+ VQ 01/16/2012 Denver Parent Corporation (N/A) All Cash $1.5 billion $12.50 $10.51 531,722 03/31/2012 18.93% 113.30%
+ LOOP 04/27/2011 CoStar Group (CSGP) Cash Plus Stock $860 million $18.73 $16.50 121,131 01/31/2012 13.54% 4941.41%
+ MHS 07/21/2011 Express Scripts, Inc. (ESRX) Cash Plus Stock $29.1 billion $70.47 $62.07 3,598,939 06/30/2012 13.53% 32.48%
+ VIST 01/26/2012 Tompkins Financial Corporation (TMP) All Stock 86 million $12.58 $11.19 N/A 09/30/2012 12.45% 18.62%
+ INCB 01/25/2012 Old National Bancorp Capital (ONB) All Stock $79.2 million $22.97 $20.80 64,075 06/30/2012 10.44% 25.06%
+ EP 10/16/2011 Kinder Morgan, Inc. (KMI) Cash Plus Stock $21 billion $29.17 $26.54 6,977,602 06/30/2012 9.90% 23.77%
+ GRRF 01/12/2012 Talenthome Management Limited (N/A) All Cash $71.45 milion $3.15 $2.91 20,692 06/30/2012 8.25% 19.80%
+ CMFB 12/20/2011 Sandy Spring Bancorp Inc. (SASR) All Stock $25.4 million $14.12 $13.12 497 06/30/2012 7.59% 18.22%
+ CTBC 10/26/2011 Berkshire Hills Bancorp, Inc. (BHLB) All Stock $30 million $8.76 $8.17 1,600 04/30/2012 7.26% 29.11%
+ HGIC 09/29/2011 Nationwide Mutual Insurance Co (N/A) All Cash $760 million $60.00 $56.71 31,519 01/31/2012 5.80% 2117.53%
+ BLD 12/23/2011 Forsyth Baldwin, LLC (N/A) All Cash $27.3 million $0.96 $0.912 600 06/30/2012 5.26% 12.64%
+ HNB 06/02/2011 BankUnited Inc. (BKU) Cash Plus Stock $71.4 million $3.68 $3.50 900 03/31/2012 5.07% 30.34%
+ CRIC 12/28/2011 E-House (China) Holdings (EJ) Cash Plus Stock $603 million $5.29 $5.04 21,283 06/30/2012 4.96% 11.91%
+ TAM 01/19/2011 LAN Airlines S.A. (LFL) All Stock N/A $22.67 $21.64 665,025 06/30/2012 4.76% 11.44%
+ CADC 10/24/2011 Novel Gain Holdings Limited (N/A) All Cash N/A $2.65 $2.53 91,929 03/31/2012 4.74% 28.38%
+ INHX 01/07/2012 Bristol-Myers Squibb Company (BMY) All Cash $2.5 billion $26.00 $25.07 2,141,667 03/31/2012 3.71% 22.20%
+ BXG 11/14/2011 BFC Financial Corporation (BFCF.PK) All Stock N/A $2.72 $2.64 65,123 06/30/2012 3.03% 7.28%
+ MMI 08/15/2011 Google (GOOG) All Cash $12.5 billion $40.00 $38.93 4,540,485 01/31/2012 2.75% 1003.21%
+ LAVA 11/30/2011 Synopsys Inc. (SNPS) All Cash $507 million $7.35 $7.17 1,171,623 03/31/2012 2.51% 15.02%
+ GR 09/21/2011 United Technologies Corp. (UTX) All Cash $18.4 billion $127.50 $124.57 313,117 06/30/2012 2.35% 5.65%
+ PGN 01/10/2011 Duke Energy Corporation (DUK) All Stock $13.7 billion $55.33 $54.07 1,054,630 03/31/2012 2.34% 13.97%
+ TOBC 06/20/2011 Susquehanna Bancshares (SUSQ) All Stock $343 million $31.47 $30.83 34,197 03/31/2012 2.07% 12.41%
+ SOA 01/27/2012 Eastman Chemical Company (EMN) Cash Plus Stock $4.7 billion $28.05 $27.52 78,706,248 06/30/2012 1.92% 4.62%
+ CEG 04/28/2011 Exelon Corporation (EXC) All Stock $7.9 billion $36.78 $36.15 1,362,356 01/31/2012 1.75% 637.61%
+ SNDA 11/22/2011 Premium Lead Company Limited (“Parent”) and New Era Investment Holding Ltd. (N/A) All Cash $2.3 billion $41.35 $40.65 119,890 03/31/2012 1.72% 10.30%
+ NVLS 12/14/2011 Lam Research Corp (LRCX) All Stock $3.3 billion $48.49 $47.67 2,802,296 06/30/2012 1.71% 4.12%
+ MFN 01/23/2012 Pan American Silver Corp. (PAAS) Cash Plus Stock $1.5 billion $14.58 $14.34 1,730,208 03/31/2012 1.70% 10.16%
+ NST 10/18/2010 Northeast Utilities (NU) All Stock $4.17 billion $45.57 $44.81 407,421 03/31/2012 1.69% 10.09%
+ TRH 11/21/2011 Alleghany Corporation (Y) Cash Plus Stock $3.4 billion $55.99 $55.17 376,170 03/31/2012 1.48% 8.86%
+ RRR 12/16/2011 United Rentals, Inc. (URI) Cash Plus Stock $1.9 billion $21.50 $21.28 1,092,312 06/30/2012 1.01% 2.43%
+ TIN 09/06/2011 International Paper (IP) All Cash $4.3 billion $32.00 $31.68 2,472,618 03/31/2012 1.01% 6.04%
+ MITI 01/26/2012 Amgen Inc. (AMGN) All Cash 1.16 billion $11.00 $10.90 21,210,172 03/31/2012 0.92% 5.49%
+ SONE 10/03/2011 ACI Worldwide (ACIW) Cash Plus Stock $516 million $10.00 $9.91 180,546 02/10/2012 0.86% 28.46%
+ WINN 12/19/2011 BI-LO, LLC (N/A) All Cash $560 million $9.50 $9.44 287,158 04/30/2012 0.64% 2.55%
+ DFG 12/21/2011 Tokio Marine Holdings (N/A) All Cash $2.7 billion $44.80 $44.54 243,034 06/30/2012 0.58% 1.40%
+ CPX 10/10/2011 Superior Energy Services (SPN) Cash Plus Stock $2.7 billion $32.46 $32.29 2,650,913 03/31/2012 0.52% 3.12%
+ CSA 12/27/2011 Ventas, Inc. (VTR) All Cash $700 million $4.25 $4.23 1,831,493 06/30/2012 0.47% 1.14%
+ NETL 09/12/2011 Broadcom (BRCM) All Cash $3.7 billion $50.00 $49.77 442,294 06/30/2012 0.46% 1.11%
+ SFSF 12/03/2011 SAP AG (SAP) All Cash $3.4 billion $40.00 $39.82 1,092,188 03/31/2012 0.45% 2.70%
+ CNVO 01/17/2012 Blackbaud (BLKB) All Cash $275 million $16.00 $15.93 90,990 03/31/2012 0.44% 2.63%
+ PNS 11/10/2011 Avnet (AVT) All Cash $22 million $2.40 $2.39 2,200 01/31/2012 0.42% 152.72%
+ BCSI 12/09/2011 Thoma Bravo, LLC (N/A) All Cash $1.3 billion $25.81 $25.72 500,422 03/31/2012 0.35% 2.09%
+ CV 07/12/2011 Gaz metro Limited Partnership (N/A) All Cash $702 million $35.25 $35.14 61,448 06/30/2012 0.31% 0.75%
+ ADPI 11/07/2011 JLL Partners, Inc. (N/A) All Cash $398 million $19.00 $18.95 39,240 03/31/2012 0.26% 1.58%
+ SONO 12/15/2011 FUJIFILM Holdings Corporation (N/A) All Cash $995 million $54.00 $53.91 140,307 03/31/2012 0.17% 1.00%
+ WCAA 12/21/2011 Macquarie Infrastructure Partners II (N/A) All Cash $526 million $6.50 $6.49 106,518 03/31/2012 0.15% 0.92%
+ SYNO 12/13/2011 Baxter International Inc. (BAX) All Cash $325 million $28.00 $27.96 84,088 03/31/2012 0.14% 0.86%
+ DMAN 12/08/2011 International Business Machines Corp. (IBM) All Cash $440 million $13.20 $13.19 154,985 03/31/2012 0.08% 0.45%
+ SNSTA 11/03/2011 SAC an affiliate of Hospitality Properties Trust (N/A) All Cash $174 million $31.00 $30.98 700 03/31/2012 0.06% 0.39%
+ HS 10/24/2011 Cigna (CI) All Cash $3.8 billion $55.00 $54.97 1,136,352 06/30/2012 0.05% 0.13%
+ MRT 12/16/2011 Fertitta Morton (N/A) All Cash $116.6 million $6.90 $6.90 232,203 02/15/2012 0.00% 0.00%
+ PARL 12/23/2011 Perfumania Holdings, Inc. (PERF) All Stock $170 million $5.24 $5.29 137,641 06/30/2012 -0.90% -2.15%
+ SUG 06/16/2011 Energy Transfer Equity (ETE) All Stock $9.4 billion $42.60 $43.26 328,131 03/31/2012 -1.53% -9.13%
+ NYX 02/15/2011 Deutsche Boerse (N/A) All Stock N/A $19.06 $27.57 1,670,603 03/31/2012 -30.87% -184.73%

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