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Merger Arbitrage Mondays – May 21, 2012

  • May 20, 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 201263
Total Number of Pending Deals
Cash Deals42
Stock Deals11
Stock & Cash Deals7
Total Number of Pending Deals60
Total Deal Size$382.96 billion

New Deals:

  1. The acquisition of Golfsmith International (GOLF) by Golf Town, Canada’s largest specialty golf retailer, for $96.5 million or $6.10 per share in cash.
  2. The acquisition of Tii Network Technologies (TIII) by Kelta Inc. for $33.1 million or $2.15 per share in cash.
  3. The acquisition of Citizens South Banking Corporation (CSBC) by Park Sterling Bank (PSTB) for $77.8 million in a stock or cash deal. Under the terms of the agreement, shareholders of Citizens South Banking Corporation will have the right to receive either $7.00 in cash or 1.4799 Park Sterling shares for each Citizens South share they hold, subject to the limitation that the total consideration will consist of 30.0% in cash and 70.0% in Park Sterling shares. We have listed the deal as an all stock transaction in our Merger Arbitrage Tool.
  4. The acquisition of BIDZ.com (BIDZ) by Glendon Group for $0.78 per share in cash.
  5. The acquisition of Pansoft Company Limited (PSOF) by Timesway Group Limited for $4.15 per share in cash. Timesway Group Limited is controlled by Chairman Hugh Wang and CEO Guoqiang Lin and had voting power over 63% of the Company’s voting securities as of June 30, 2011. This is essentially a “going private” transaction with management attempting to take the company private.

Deal Updates:

On Saturday, Google received approval from China for the Motorola Mobility (MMI) deal and the deal is expected to close this week.

Closed Deals:

  1. The acquisition of Delphi Financial Group, Inc. (DFG) by Tokio Marine Holdings on May 15, 2012.
  2. The acquisition of X-Rite, Incorporated (XRIT) by Danaher (DHR) on May 15, 2012.
  3. The acquisition of Archipelago (ARCL) by PLATO Learning on May 18, 2012.
  4. The acquisition of Thomas & Betts Corporation (TNB) by ABB Ltd (ABB) on May 18, 2012.

Top 10 deals with largest spreads:

SymbolAnnounced

Date

Acquiring

Company

Closing

Price

Last

Price

Closing

Date

ProfitAnnualized

Profit

CADC10/24/2011Novel Gain Holdings Limited (N/A)$2.65$1.7506/30/201251.43%469.29%
PBY01/30/2012The Gores Group (N/A)$15.00$11.1706/30/201234.29%312.88%
VQ01/16/2012Denver Parent Corporation (N/A)$12.50$9.4906/30/201231.72%289.42%
ABVA05/03/2012Washington First Bankshares (WFBI.OB)$4.77$4.1012/31/201216.28%26.53%
TUDO03/12/2012Youku Inc. (YOKU)$32.33$29.9809/30/20127.84%21.68%
GEOI04/25/2012Halcon Resources (HK)$36.04$33.4809/30/20127.63%21.11%
PSOF05/17/2012Timesway Group Limited (N/A)$4.15$3.8609/30/20127.51%20.77%
INCB01/25/2012Old National Bancorp Capital (ONB)$21.95$20.7006/30/20126.01%54.88%
SCMF03/27/2012Capital Bank Financial Corp (N/A)$2.88$2.7306/30/20125.49%50.14%
CEBK05/01/2012Independent Bank Corp. (INDB)$32.00$30.5012/31/20124.92%8.01%

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

+CADC10/24/2011Novel Gain Holdings Limited (N/A)All CashN/A$2.65$1.7578,30406/30/201251.43%469.29%
+PBY01/30/2012The Gores Group (N/A)All Cash$1 billion$15.00$11.17701,51406/30/201234.29%312.88%
+VQ01/16/2012Denver Parent Corporation (N/A)All Cash$1.5 billion$12.50$9.49289,49106/30/201231.72%289.42%
+ABVA05/03/2012Washington First Bankshares (WFBI.OB)All Stock$24.4 million$4.77$4.1014,55412/31/201216.28%26.53%
+TUDO03/12/2012Youku Inc. (YOKU)All Stock$1 billion$32.33$29.98127,34009/30/20127.84%21.68%
+GEOI04/25/2012Halcon Resources (HK)Cash Plus Stock$1 billion$36.04$33.48430,60809/30/20127.63%21.11%
+PSOF05/17/2012Timesway Group Limited (N/A)All CashN$4.15$3.8616,04209/30/20127.51%20.77%
+INCB01/25/2012Old National Bancorp Capital (ONB)All Stock$79.2 million$21.95$20.7082506/30/20126.01%54.88%
+SCMF03/27/2012Capital Bank Financial Corp (N/A)All CashN/A$2.88$2.7312,17606/30/20125.49%50.14%
+CEBK05/01/2012Independent Bank Corp. (INDB)All Cash$54.8 million$32.00$30.501,23512/31/20124.92%8.01%
+TIII05/14/2012Kelta, Inc. (N/A)All Cash$33.1 million$2.15$2.05190,27309/30/20124.88%13.49%
+PSS05/01/2012a consortium comprised of Wolverine Worldwide, Blum Capital Partners and Golden Gate Capital (WWW)All Cash$2 billion$21.75$21.042,575,31310/31/20123.37%7.56%
+BIDZ05/17/2012Glendon Group, Inc. (N/A)All CashN/A$0.78$0.755555,70412/31/20123.31%5.40%
+PGN01/10/2011Duke Energy Corporation (DUK)All Stock$13.7 billion$56.06$54.362,019,83007/01/20123.14%27.91%
+TAM01/19/2011LAN Airlines S.A. (LFL)All StockN/A$21.46$20.81886,99406/30/20123.10%28.33%
+CMFB12/20/2011Sandy Spring Bancorp Inc. (SASR)All Stock$25.4 million$14.13$13.71N/A06/30/20123.07%28.06%
+ERT04/10/2012Genstar Capital LLC (N/A)All Cash$400 million$8.00$7.79582,03109/30/20122.70%7.45%
+SUN04/30/2012Energy Transfer Partners, L.P. (ETP)Cash Plus Stock$5.3 billion$48.11$46.871,586,99612/31/20122.64%4.31%
+GPRO04/30/2012Hologic, Inc. (HOLX)All Cash$3.7 billion$82.75$80.661,266,85412/31/20122.59%4.22%
+GR09/21/2011United Technologies Corp. (UTX)All Cash$18.4 billion$127.50$124.742,173,22706/30/20122.21%20.19%
+OPXT03/26/2012Oclaro, Inc. (OCLR)All Stock$177 million$0.92$0.90460,73606/30/20122.20%20.07%
+EP10/16/2011Kinder Morgan, Inc. (KMI)Cash Plus Stock$21 billion$29.22$28.6113,198,46506/30/20122.12%19.38%
+SURW02/06/2012Consolidated Communications Holdings, Inc. (CNSL)All Cash$340.9 million$23.00$22.5376,66206/30/20122.09%19.04%
+MMI08/15/2011Google (GOOG)All Cash$12.5 billion$40.00$39.2011,545,98706/30/20122.04%18.62%
+KNOL04/18/2012WOW! Internet, Cable & Phone (N/A)All Cash$1.5 billion$19.75$19.401,053,60909/30/20121.80%4.99%
+RFMI04/13/2012Murata Manufacturing (N/A)All Cash$19.6 million$1.78$1.752,40009/30/20121.71%4.74%
+ALTH04/05/2012Spectrum Pharmaceuticals (SPPI)All Cash$206 million$1.82$1.79385,87206/30/20121.68%15.29%
+SMSC05/02/2012Microchip Technology Inc. (MCHP)All Cash$939 million$37.00$36.41594,04609/30/20121.62%4.48%
+EF04/16/2012Lee Equity Partners, LLC (N/A)All Cash$258 million$8.85$8.71491,71609/30/20121.61%4.44%
+VIST01/26/2012Tompkins Financial Corporation (TMP)All Stock86 million$11.37$11.205,50009/30/20121.52%4.19%
+CHSI04/18/2012SXC Health Solutions, Corp. (SXCI)Cash Plus Stock$4.4 billion$86.71$85.50623,64212/31/20121.42%2.31%
+ESIC05/01/2012Open Text Corp. (OTEX)All Cash$232 million$7.25$7.15618,93909/30/20121.40%3.87%
+PLXT04/30/2012Integrated Device Technology, Inc. (IDTI)Cash Plus Stock$330 million$6.31$6.23899,54806/30/20121.35%12.30%
+PCBC03/12/2012UnionBanCal Corp. (N/A)All Cash$1.51 billion$46.00$45.4664,33512/31/20121.19%1.94%
+ABVT03/19/2012Zayo Group (N/A)All Cash$2.2 billion$84.00$83.05353,21306/30/20121.14%10.44%
+EBTX03/06/2012Cadence Bancorp (N/A)All Cash$250 million$20.62$20.4312,00012/31/20120.93%1.52%
+FFFD03/13/2012Great Western Bancorporation, Inc. (N/A)All Cash$41.5 million$30.58$30.3020008/31/20120.92%3.31%
+RDEA04/23/2012AstraZeneca (AZN)All Cash$1.26 billion$32.00$31.73335,42609/30/20120.85%2.35%
+RVSN03/15/2012Avaya (N/A)All Cash$230 million$11.85$11.7666,75006/15/20120.77%11.17%
+SOA01/27/2012Eastman Chemical Company (EMN)Cash Plus Stock$4.7 billion$27.31$27.12954,22206/30/20120.70%6.35%
+GOLF05/14/2012Golf Town (N/A)All Cash$96.5 million$6.10$6.0620,83809/30/20120.66%1.83%
+PFCB05/01/2012Centerbridge Partners LP (N/A)All Cash$1.09 billion$51.50$51.17955,57409/30/20120.64%1.78%
+DRJ04/16/2012Fanatics (N/A)All Cash$183 million$3.45$3.4374,98209/30/20120.58%1.61%
+COMV03/26/2012Peak Merger Corp (N/A)All Cash$49 million$1.75$1.74N/A06/30/20120.57%5.24%
+CHRS05/02/2012Ascena Retail Group Inc. (ASNA)All Cash$890 million$7.35$7.312,885,04606/30/20120.55%4.99%
+GTSI05/07/2012an affiliate of UNICOM Systems (N/A)All Cash$76.67 million$7.75$7.7132,66907/31/20120.52%2.67%
+CV07/12/2011Gaz metro Limited Partnership (N/A)All Cash$702 million$35.25$35.0749,63206/30/20120.51%4.68%
+CRYP02/02/2012Amaya Gaming Group (N/A)All Cash$35.82 million$2.54$2.531,56505/31/20120.40%14.43%
+CPWM05/09/2012Bed Bath & Beyond Inc. (BBBY)All Cash$495 million$22.00$21.92716,55405/31/20120.36%13.32%
+NVLS12/14/2011Lam Research Corp (LRCX)All Stock$3.3 billion$42.27$42.12876,18506/30/20120.35%3.17%
+ISTA03/26/2012Bausch + Lomb (N/A)All Cash$500 million$9.10$9.07390,44606/30/20120.33%3.02%
+KNSY05/03/2012Royal DSM (N/A)All CashN/A$38.50$38.39156,56506/30/20120.29%2.61%
+ADGF03/19/2012TaylorMade-adidas Golf business (N/A)All Cash$70 million$10.80$10.7835,51406/30/20120.19%1.69%
+DDIC04/04/2012Viasystems Group Inc. (VIAS)All Cash$268 million$13.00$12.98184,92407/31/20120.15%0.79%
+IPSU05/01/2012Louis Dreyfus Commodities LLC (N/A)All Cash$203 million$6.35$6.38300,94606/30/2012-0.47%-4.29%
+CHG02/21/2012Fortis Inc. (N/A)All Cash$1.5 billion$65.00$65.5264,62303/31/2013-0.79%-0.92%
+CSBC05/14/2012Park Sterling Corporation (PSTB)All Stock$77.8 million$6.08$6.1431,59412/31/2012-0.94%-1.53%
+SRSL04/17/2012DTS, Inc. (DTSI)Cash Plus Stock$148 million$8.76$9.0879,55609/30/2012-3.50%-9.68%
+BXG11/14/2011BFC Financial Corporation (BFCF.PK)All StockN/A$4.80$5.0291,76106/30/2012-4.29%-39.12%
+QSFT03/09/2012Insight Venture Partners (N/A)All Cash$2 billion$23.00$24.50642,84309/30/2012-6.12%-16.93%

Voluntary Disclosure: I have a long position in Motorola Mobility (MMI).