Merger Arbitrage Mondays – January 30, 2012

  • 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 201211
Total Number of Pending Deals
Cash Deals29
Stock Deals15
Stock & Cash Deals11
Total Number of Pending Deals55
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:

SymbolAnnounced

Date

Acquiring

Company

Closing

Price

Last

Price

Closing

Date

ProfitAnnualized

Profit

VTRO10/17/2011Inuvo, Inc. (INUV)$1.79$1.3703/31/201230.90%184.91%
VQ01/16/2012Denver Parent Corporation (N/A)$12.50$10.5103/31/201218.93%113.30%
LOOP04/27/2011CoStar Group (CSGP)$18.73$16.5001/31/201213.54%4941.41%
MHS07/21/2011Express Scripts, Inc. (ESRX)$70.47$62.0706/30/201213.53%32.48%
VIST01/26/2012Tompkins Financial Corporation (TMP)$12.58$11.1909/30/201212.45%18.62%
INCB01/25/2012Old National Bancorp Capital (ONB)$22.97$20.8006/30/201210.44%25.06%
EP10/16/2011Kinder Morgan, Inc. (KMI)$29.17$26.5406/30/20129.90%23.77%
GRRF01/12/2012Talenthome Management Limited (N/A)$3.15$2.9106/30/20128.25%19.80%
CMFB12/20/2011Sandy Spring Bancorp Inc. (SASR)$14.12$13.1206/30/20127.59%18.22%
CTBC10/26/2011Berkshire Hills Bancorp, Inc. (BHLB)$8.76$8.1704/30/20127.26%29.11%

List of all pending deals:

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


SymbolAnnounced

Date

Acquiring

Company

Deal

Type

Closing

Value

Closing

Price

Last

Price

VolumeClosing

Date

ProfitAnnu.

Profit

+VTRO10/17/2011Inuvo, Inc. (INUV)All StockN/A$1.79$1.3742,60703/31/201230.90%184.91%
+VQ01/16/2012Denver Parent Corporation (N/A)All Cash$1.5 billion$12.50$10.51531,72203/31/201218.93%113.30%
+LOOP04/27/2011CoStar Group (CSGP)Cash Plus Stock$860 million$18.73$16.50121,13101/31/201213.54%4941.41%
+MHS07/21/2011Express Scripts, Inc. (ESRX)Cash Plus Stock$29.1 billion$70.47$62.073,598,93906/30/201213.53%32.48%
+VIST01/26/2012Tompkins Financial Corporation (TMP)All Stock86 million$12.58$11.19N/A09/30/201212.45%18.62%
+INCB01/25/2012Old National Bancorp Capital (ONB)All Stock$79.2 million$22.97$20.8064,07506/30/201210.44%25.06%
+EP10/16/2011Kinder Morgan, Inc. (KMI)Cash Plus Stock$21 billion$29.17$26.546,977,60206/30/20129.90%23.77%
+GRRF01/12/2012Talenthome Management Limited (N/A)All Cash$71.45 milion$3.15$2.9120,69206/30/20128.25%19.80%
+CMFB12/20/2011Sandy Spring Bancorp Inc. (SASR)All Stock$25.4 million$14.12$13.1249706/30/20127.59%18.22%
+CTBC10/26/2011Berkshire Hills Bancorp, Inc. (BHLB)All Stock$30 million$8.76$8.171,60004/30/20127.26%29.11%
+HGIC09/29/2011Nationwide Mutual Insurance Co (N/A)All Cash$760 million$60.00$56.7131,51901/31/20125.80%2117.53%
+BLD12/23/2011Forsyth Baldwin, LLC (N/A)All Cash$27.3 million$0.96$0.91260006/30/20125.26%12.64%
+HNB06/02/2011BankUnited Inc. (BKU)Cash Plus Stock$71.4 million$3.68$3.5090003/31/20125.07%30.34%
+CRIC12/28/2011E-House (China) Holdings (EJ)Cash Plus Stock$603 million$5.29$5.0421,28306/30/20124.96%11.91%
+TAM01/19/2011LAN Airlines S.A. (LFL)All StockN/A$22.67$21.64665,02506/30/20124.76%11.44%
+CADC10/24/2011Novel Gain Holdings Limited (N/A)All CashN/A$2.65$2.5391,92903/31/20124.74%28.38%
+INHX01/07/2012Bristol-Myers Squibb Company (BMY)All Cash$2.5 billion$26.00$25.072,141,66703/31/20123.71%22.20%
+BXG11/14/2011BFC Financial Corporation (BFCF.PK)All StockN/A$2.72$2.6465,12306/30/20123.03%7.28%
+MMI08/15/2011Google (GOOG)All Cash$12.5 billion$40.00$38.934,540,48501/31/20122.75%1003.21%
+LAVA11/30/2011Synopsys Inc. (SNPS)All Cash$507 million$7.35$7.171,171,62303/31/20122.51%15.02%
+GR09/21/2011United Technologies Corp. (UTX)All Cash$18.4 billion$127.50$124.57313,11706/30/20122.35%5.65%
+PGN01/10/2011Duke Energy Corporation (DUK)All Stock$13.7 billion$55.33$54.071,054,63003/31/20122.34%13.97%
+TOBC06/20/2011Susquehanna Bancshares (SUSQ)All Stock$343 million$31.47$30.8334,19703/31/20122.07%12.41%
+SOA01/27/2012Eastman Chemical Company (EMN)Cash Plus Stock$4.7 billion$28.05$27.5278,706,24806/30/20121.92%4.62%
+CEG04/28/2011Exelon Corporation (EXC)All Stock$7.9 billion$36.78$36.151,362,35601/31/20121.75%637.61%
+SNDA11/22/2011Premium Lead Company Limited (“Parent”) and New Era Investment Holding Ltd. (N/A)All Cash$2.3 billion$41.35$40.65119,89003/31/20121.72%10.30%
+NVLS12/14/2011Lam Research Corp (LRCX)All Stock$3.3 billion$48.49$47.672,802,29606/30/20121.71%4.12%
+MFN01/23/2012Pan American Silver Corp. (PAAS)Cash Plus Stock$1.5 billion$14.58$14.341,730,20803/31/20121.70%10.16%
+NST10/18/2010Northeast Utilities (NU)All Stock$4.17 billion$45.57$44.81407,42103/31/20121.69%10.09%
+TRH11/21/2011Alleghany Corporation (Y)Cash Plus Stock$3.4 billion$55.99$55.17376,17003/31/20121.48%8.86%
+RRR12/16/2011United Rentals, Inc. (URI)Cash Plus Stock$1.9 billion$21.50$21.281,092,31206/30/20121.01%2.43%
+TIN09/06/2011International Paper (IP)All Cash$4.3 billion$32.00$31.682,472,61803/31/20121.01%6.04%
+MITI01/26/2012Amgen Inc. (AMGN)All Cash1.16 billion$11.00$10.9021,210,17203/31/20120.92%5.49%
+SONE10/03/2011ACI Worldwide (ACIW)Cash Plus Stock$516 million$10.00$9.91180,54602/10/20120.86%28.46%
+WINN12/19/2011BI-LO, LLC (N/A)All Cash$560 million$9.50$9.44287,15804/30/20120.64%2.55%
+DFG12/21/2011Tokio Marine Holdings (N/A)All Cash$2.7 billion$44.80$44.54243,03406/30/20120.58%1.40%
+CPX10/10/2011Superior Energy Services (SPN)Cash Plus Stock$2.7 billion$32.46$32.292,650,91303/31/20120.52%3.12%
+CSA12/27/2011Ventas, Inc. (VTR)All Cash$700 million$4.25$4.231,831,49306/30/20120.47%1.14%
+NETL09/12/2011Broadcom (BRCM)All Cash$3.7 billion$50.00$49.77442,29406/30/20120.46%1.11%
+SFSF12/03/2011SAP AG (SAP)All Cash$3.4 billion$40.00$39.821,092,18803/31/20120.45%2.70%
+CNVO01/17/2012Blackbaud (BLKB)All Cash$275 million$16.00$15.9390,99003/31/20120.44%2.63%
+PNS11/10/2011Avnet (AVT)All Cash$22 million$2.40$2.392,20001/31/20120.42%152.72%
+BCSI12/09/2011Thoma Bravo, LLC (N/A)All Cash$1.3 billion$25.81$25.72500,42203/31/20120.35%2.09%
+CV07/12/2011Gaz metro Limited Partnership (N/A)All Cash$702 million$35.25$35.1461,44806/30/20120.31%0.75%
+ADPI11/07/2011JLL Partners, Inc. (N/A)All Cash$398 million$19.00$18.9539,24003/31/20120.26%1.58%
+SONO12/15/2011FUJIFILM Holdings Corporation (N/A)All Cash$995 million$54.00$53.91140,30703/31/20120.17%1.00%
+WCAA12/21/2011Macquarie Infrastructure Partners II (N/A)All Cash$526 million$6.50$6.49106,51803/31/20120.15%0.92%
+SYNO12/13/2011Baxter International Inc. (BAX)All Cash$325 million$28.00$27.9684,08803/31/20120.14%0.86%
+DMAN12/08/2011International Business Machines Corp. (IBM)All Cash$440 million$13.20$13.19154,98503/31/20120.08%0.45%
+SNSTA11/03/2011SAC an affiliate of Hospitality Properties Trust (N/A)All Cash$174 million$31.00$30.9870003/31/20120.06%0.39%
+HS10/24/2011Cigna (CI)All Cash$3.8 billion$55.00$54.971,136,35206/30/20120.05%0.13%
+MRT12/16/2011Fertitta Morton (N/A)All Cash$116.6 million$6.90$6.90232,20302/15/20120.00%0.00%
+PARL12/23/2011Perfumania Holdings, Inc. (PERF)All Stock$170 million$5.24$5.29137,64106/30/2012-0.90%-2.15%
+SUG06/16/2011Energy Transfer Equity (ETE)All Stock$9.4 billion$42.60$43.26328,13103/31/2012-1.53%-9.13%
+NYX02/15/2011Deutsche Boerse (N/A)All StockN/A$19.06$27.571,670,60303/31/2012-30.87%-184.73%