Merger Arbitrage Mondays – April 02, 2012

Merger activity increased last week with four new deals announced and three 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 40
Total Number of Pending Deals
Cash Deals 34
Stock Deals 12
Stock & Cash Deals 6
Total Number of Pending Deals 52
Total Deal Size $357.15 billion

New Deals:

  1. The acquisition of Comverge (COMV) by Peak Merger Corp., an affiliate of H.I.G. Capital, LLC for $49 million or $1.75 per share in cash.
  2. The acquisition of Opnext (OPXT) by Oclaro (OCLR) in an all stock deal for $177 million. Under the terms of the agreement, shareholders of Opnext will receive 0.42 shares of Oclaro common stock for every share of Opnext common stock they own.
  3. The acquisition of ISTA Pharmaceuticals (ISTA) by Bausch + Lomb for $500 million or $9.10 per share in cash.
  4. The acquisition of Southern Community Financial Corp (SCMF) by Capital Bank Financial Corp for $2.88 per share in cash.

Closed Deals:

  1. The acquisition of Southern Union Company (SUG) by Energy Transfer Equity on March 27, 2012.
  2. The acquisition of ATS Corporation (ATSC) by Salient Federal Solutions, Inc. on March 30, 2012.
  3. The acquisition of MineFinders (MFN) by Pan American Silver Corp. (PAAS) on March 30, 2012.

Top 10 deals with largest spreads:

Symbol Announced

Date

Acquiring

Company

Closing

Price

Last

Price

Closing

Date

Profit Annualized

Profit

TUDO 03/12/2012 Youku Inc. (YOKU) $35.07 $29.53 09/30/2012 18.77% 37.86%
VQ 01/16/2012 Denver Parent Corporation (N/A) $12.50 $10.84 06/30/2012 15.31% 62.80%
CADC 10/24/2011 Novel Gain Holdings Limited (N/A) $2.65 $2.41 03/31/2012 9.96% -1817.43%
SCMF 03/27/2012 Capital Bank Financial Corp (N/A) $2.88 $2.62 06/30/2012 9.92% 40.70%
EP 10/16/2011 Kinder Morgan, Inc. (KMI) $31.79 $29.55 06/30/2012 7.59% 31.13%
OPXT 03/26/2012 Oclaro, Inc. (OCLR) $1.65 $1.55 06/30/2012 6.76% 27.73%
INCB 01/25/2012 Old National Bancorp Capital (ONB) $24.97 $23.51 06/30/2012 6.19% 25.40%
VIST 01/26/2012 Tompkins Financial Corporation (TMP) $12.53 $11.90 09/30/2012 5.27% 10.62%
TAM 01/19/2011 LAN Airlines S.A. (LFL) $26.18 $25.13 06/30/2012 4.18% 17.15%
HGIC 09/29/2011 Nationwide Mutual Insurance Co (N/A) $60.00 $57.70 06/30/2012 3.99% 16.35%

List of all pending deals:

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


Symbol Announced

Date

Acquiring

Company

Deal

Type

Closing

Value

Closing

Price

Last

Price

Volume Closing

Date

Profit Annu.

Profit

+ TUDO 03/12/2012 Youku Inc. (YOKU) All Stock $1 billion $35.07 $29.53 552,037 09/30/2012 18.77% 37.86%
+ VQ 01/16/2012 Denver Parent Corporation (N/A) All Cash $1.5 billion $12.50 $10.84 266,783 06/30/2012 15.31% 62.80%
+ CADC 10/24/2011 Novel Gain Holdings Limited (N/A) All Cash N/A $2.65 $2.41 23,412 03/31/2012 9.96% 0.00%
+ SCMF 03/27/2012 Capital Bank Financial Corp (N/A) All Cash N/A $2.88 $2.62 49,747 06/30/2012 9.92% 40.70%
+ EP 10/16/2011 Kinder Morgan, Inc. (KMI) Cash Plus Stock $21 billion $31.79 $29.55 8,713,527 06/30/2012 7.59% 31.13%
+ OPXT 03/26/2012 Oclaro, Inc. (OCLR) All Stock $177 million $1.65 $1.55 2,379,471 06/30/2012 6.76% 27.73%
+ INCB 01/25/2012 Old National Bancorp Capital (ONB) All Stock $79.2 million $24.97 $23.51 3,725 06/30/2012 6.19% 25.40%
+ VIST 01/26/2012 Tompkins Financial Corporation (TMP) All Stock 86 million $12.53 $11.90 21,609 09/30/2012 5.27% 10.62%
+ TAM 01/19/2011 LAN Airlines S.A. (LFL) All Stock N/A $26.18 $25.13 571,345 06/30/2012 4.18% 17.15%
+ HGIC 09/29/2011 Nationwide Mutual Insurance Co (N/A) All Cash $760 million $60.00 $57.70 53,323 06/30/2012 3.99% 16.35%
+ BXG 11/14/2011 BFC Financial Corporation (BFCF.PK) All Stock N/A $4.48 $4.31 90,241 06/30/2012 3.94% 16.18%
+ CMFB 12/20/2011 Sandy Spring Bancorp Inc. (SASR) All Stock $25.4 million $14.61 $14.09 4,790 06/30/2012 3.72% 15.26%
+ CNVO 01/17/2012 Blackbaud (BLKB) All Cash $275 million $16.00 $15.47 76,449 04/15/2012 3.43% 96.19%
+ MHS 07/21/2011 Express Scripts, Inc. (ESRX) Cash Plus Stock $29.1 billion $72.69 $70.30 14,698,724 06/30/2012 3.39% 13.92%
+ PGN 01/10/2011 Duke Energy Corporation (DUK) All Stock $13.7 billion $54.89 $53.11 2,256,605 07/01/2012 3.35% 13.58%
+ SURW 02/06/2012 Consolidated Communications Holdings, Inc. (CNSL) All Cash $340.9 million $23.00 $22.55 62,041 06/30/2012 2.00% 8.18%
+ GRRF 01/12/2012 Talenthome Management Limited (N/A) All Cash $71.45 milion $3.15 $3.09 68,525 06/30/2012 1.94% 7.96%
+ MMI 08/15/2011 Google (GOOG) All Cash $12.5 billion $40.00 $39.24 2,493,476 06/30/2012 1.94% 7.94%
+ GR 09/21/2011 United Technologies Corp. (UTX) All Cash $18.4 billion $127.50 $125.44 611,992 06/30/2012 1.64% 6.73%
+ CTBC 10/26/2011 Berkshire Hills Bancorp, Inc. (BHLB) All Stock $30 million $8.73 $8.60 4,995 04/30/2012 1.54% 20.09%
+ LOOP 04/27/2011 CoStar Group (CSGP) Cash Plus Stock $860 million $19.06 $18.78 687,697 04/30/2012 1.47% 19.17%
+ ABVT 03/19/2012 Zayo Group (N/A) All Cash $2.2 billion $84.00 $82.80 629,449 12/31/2069 1.45% 0.03%
+ FFFD 03/13/2012 Great Western Bancorporation, Inc. (N/A) All Cash $41.5 million $30.58 $30.15 5,500 08/31/2012 1.43% 3.45%
+ CRIC 12/28/2011 E-House (China) Holdings (EJ) Cash Plus Stock $603 million $5.23 $5.16 116,693 06/30/2012 1.36% 5.56%
+ EBTX 03/06/2012 Cadence Bancorp (N/A) All Cash $250 million $20.62 $20.37 119,713 12/31/2012 1.23% 1.64%
+ RVSN 03/15/2012 Avaya (N/A) All Cash $230 million $11.85 $11.71 58,641 12/31/2069 1.20% 0.02%
+ ISTA 03/26/2012 Bausch + Lomb (N/A) All Cash $500 million $9.10 $9.01 4,193,159 06/30/2012 1.00% 4.10%
+ SOA 01/27/2012 Eastman Chemical Company (EMN) Cash Plus Stock $4.7 billion $28.20 $27.94 3,041,961 06/30/2012 0.94% 3.86%
+ PCBC 03/12/2012 UnionBanCal Corp. (N/A) All Cash $1.51 billion $46.00 $45.61 63,884 12/31/2012 0.86% 1.14%
+ CRYP 02/02/2012 Amaya Gaming Group (N/A) All Cash $35.82 million $2.54 $2.52 26,632 04/30/2012 0.79% 10.35%
+ ADGF 03/19/2012 TaylorMade-adidas Golf business (N/A) All Cash $70 million $10.80 $10.72 120,377 12/31/2069 0.75% 0.01%
+ RRR 12/16/2011 United Rentals, Inc. (URI) Cash Plus Stock $1.9 billion $22.74 $22.59 1,128,781 06/30/2012 0.65% 2.66%
+ NVLS 12/14/2011 Lam Research Corp (LRCX) All Stock $3.3 billion $50.20 $49.91 1,384,110 06/30/2012 0.58% 2.36%
+ PBY 01/30/2012 The Gores Group (N/A) All Cash $1 billion $15.00 $14.92 574,263 06/30/2012 0.54% 2.20%
+ TRCR 03/07/2012 Nuance Communications (NUAN) All Cash $300 million $29.50 $29.35 204,610 09/30/2012 0.51% 1.03%
+ SRLS 02/13/2012 Linden Capital Partners (N/A) All Cash $82 million $4.00 $3.98 32,200 06/30/2012 0.50% 2.06%
+ ZOLL 03/12/2012 Asahi Kasei Corp (N/A) All Cash $2.21 billion $93.00 $92.63 577,711 06/30/2012 0.40% 1.64%
+ CSA 12/27/2011 Ventas, Inc. (VTR) All Cash $700 million $4.25 $4.24 371,576 06/30/2012 0.24% 0.97%
+ MDS 03/13/2012 TBC Corporation (N/A) All Cash $310 million $11.50 $11.48 145,212 06/30/2012 0.17% 0.71%
+ TLEO 02/09/2012 Oracle Corporation (ORCL) All Cash $1.9 billion $46.00 $45.93 1,209,167 06/30/2012 0.15% 0.63%
+ NST 10/18/2010 Northeast Utilities (NU) All Stock $4.17 billion $48.70 $48.63 336,513 04/16/2012 0.15% 3.83%
+ CV 07/12/2011 Gaz metro Limited Partnership (N/A) All Cash $702 million $35.25 $35.20 126,071 06/30/2012 0.14% 0.58%
+ TNB 01/30/2012 ABB Ltd (ABB) All Cash $3.9 billion $72.00 $71.91 424,785 06/30/2012 0.13% 0.51%
+ CHUX 02/06/2012 Fidelity National Financial, Inc. (FNF) All Cash $221 million $9.85 $9.84 116,506 06/30/2012 0.10% 0.42%
+ AEA 02/15/2012 Grupo Elektra (N/A) All Cash $780 million $10.50 $10.49 887,927 06/30/2012 0.10% 0.39%
+ DFG 12/21/2011 Tokio Marine Holdings (N/A) All Cash $2.7 billion $44.80 $44.77 250,095 06/30/2012 0.07% 0.27%
+ ARCL 03/05/2012 PLATO Learning (N/A) All Cash $291 million $11.10 $11.12 685,075 06/30/2012 -0.18% -0.74%
+ QSFT 03/09/2012 Insight Venture Partners (N/A) All Cash $2 billion $23.00 $23.27 555,735 09/30/2012 -1.16% -2.34%
+ CHG 02/21/2012 Fortis Inc. (N/A) All Cash $1.5 billion $65.00 $66.73 66,263 03/31/2013 -2.59% -2.61%
+ COMV 03/26/2012 Peak Merger Corp (N/A) All Cash $49 million $1.75 $1.84 97,206 06/30/2012 -4.89% -20.06%
+ WOLF 03/13/2012 An affiliate of Apollo Global Management, LLC (N/A) All Cash $703 million $5.00 $5.72 195,445 06/30/2012 -12.59% -51.62%
+ PARL 12/23/2011 Perfumania Holdings, Inc. (PERF) All Stock $170 million $4.94 $5.66 282,973 06/30/2012 -12.74% -52.27%

3 Comments

  1. BNL
    April 3, 2012 at 7:44 am

    I really appreciate you providing this update each week.

    I’m wondering if you know of any good websites or other resources that provide thorough assessments of these specific arbitrage deals. I’ve been reading a lot about general arbitrage investing, but I haven’t found good resources online for actually assessing the specific deals.

    • Asif
      April 3, 2012 at 2:45 pm

      Glad to hear you find these updates useful. There are two mainstream media sites that discuss deals and there are some investment blogs that also discuss merger and special situations.

      The two media sites you can refer to are,

      Deal Journal

      Deal Book

      A couple of blogs that sometimes discuss mergers are,

      Whopper Investments

      Kid Dynamite’s World

      I hope this helps.

  2. BNL
    April 4, 2012 at 2:06 pm

    Thanks. I’m checking out those sites now.

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