Merger Arbitrage Mondays – June 11, 2012

  • June 10, 2012

Merger activity remained steady last week with six 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 201273
Total Number of Deals Not Completed in 20121
Total Number of Pending Deals
Cash Deals47
Stock Deals12
Stock & Cash Deals7
Total Number of Pending Deals66
Total Deal Size$401.2 billion

New Deals:

  1. The acquisition of Credo Petroleum (CRED) by Forestar Group (FOR) for $146 million or $14.50 per share in cash.
  2. The acquisition of MEDTOX Scientific (MTOX) by Laboratory Corp. of America Holdings (LH) for $241 million or $27.00 per share in cash.
  3. The acquisition of Gushan Environmental Energy Limited (GU) by Trillion Energy Holdings Limited in a going private transaction where the CEO who already owns 34.8% of the company plans on acquiring the rest of the company with his own funds. Under the terms of the agreement, shareholders of Gushan Environmental Energy Limited will receive $1.62 per ADS in cash. Each American Depository Share (ADS) represents 10 ordinary shares of Gushan.
  4. The acquisition of SRI Surgical Express (STRC) by Synergy Health plc for $38.5 million or $3.70 per share in cash.
  5. The acquisition of Kenneth Cole Productions (KCP) by Kenneth D. Cole, Chairman and Chief Creative Officer of the Company in a going private transaction for $245 million or $15.25 per share in cash. Mr. Cole owns 46% of the company and controls 89% of the voting power.
  6. The acquisition of China TransInfo Technology Corp. (CTFO) by TransCloud Company Limited for $146.6 million or $5.80 per share in cash. The CEO of CTFO kept buying shares on the open market for months on end until January of this year as you can see from this page.

Updated Deals:

  1. On June 6, 2012, Venoco (VQ) shreholders approved the buyout offer valued at $735 million from Timothy Marquez, the company’s co-founder, chairman and CEO.

Closed Deals:

  1. The acquisition of Novellus Systems (NVLS) by Lam Research Corp (LRCX) on June 4, 2012.
  2. The acquisition of RADVision Ltd. (RVSN) by Avaya on June 5, 2012.
  3. The acquisition of ISTA Pharmaceuticals (ISTA) by Bausch + Lomb on June 6, 2012
  4. The acquisition of Dreams (DRJ) by Fanatics on June 6, 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$1.6106/30/201264.60%1240.93%
VQ01/16/2012Denver Parent Corporation (N/A)$12.50$10.1406/30/201223.27%447.11%
TLB05/31/2012Sycamore Partners (N/A)$2.75$2.3709/30/201216.03%52.72%
GU06/04/2012Trillion Energy Holdings Limited And Trillion Energy Investments Holdings Limited (N/A)$1.62$1.4609/30/201210.96%36.04%
GEOI04/25/2012Halcon Resources (HK)$40.09$36.9009/30/20128.65%28.45%
CTFO06/08/2012TransCloud Company Limited (N/A)$5.80$5.3509/30/20128.41%27.66%
INCB01/25/2012Old National Bancorp Capital (ONB)$21.51$19.8406/30/20128.41%161.51%
SURW02/06/2012Consolidated Communications Holdings, Inc. (CNSL)$23.00$21.4806/30/20127.08%135.94%
TUDO03/12/2012Youku Inc. (YOKU)$37.83$35.4809/30/20126.63%21.81%
CEBK05/01/2012Independent Bank Corp. (INDB)$32.00$30.2512/31/20125.79%10.40%

List of all pending deals:

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