Merger Arbitrage Mondays – June 25, 2012

  • June 25, 2012

Merger activity increased last week with four new deals announced and five 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 79
Total Number of Deals Not Completed in 2012 1
Total Number of Pending Deals
Cash Deals 47
Stock Deals 12
Stock & Cash Deals 8
Total Number of Pending Deals 67
Total Deal Size $402.38 billion

New Deals:

  1. The acquisition of Extorre Gold Mines Limited (XG) by Yamana Gold (AUY) for $414 million in a cash plus stock deal. Extorre shareholders will receive $3.50 in cash and 0.0467 of a common share of Yamana, in exchange for each Extorre share held.
  2. The acquisition of Network Equipment Technologies (NWK) by Sonus Networks (SONS) for $42 million or $1.35 per share in cash.
  3. The acquisition of Network Engines (NEI) by UNICOM Systems for $63.2 million or $1.45 per share in cash.
  4. The acquisition of Sun Healthcare Group (SUNH) by Genesis Healthcare for $275 million or $8.50 per share in cash.

Updated Deals:

  1. On June 19, 2012, Quest Software (QSFTaccepted a $25.75-a-share bid from Insight Venture Partners and agreed to the addition of Vector Capital to the buyout group.

Closed Deals:

  1. The acquisition of GTSI Corp. (GTSI) by an affiliate of UNICOM Systems on June 18, 2012.
  2. The acquisition of Imperial Sugar (IPSU) by Louis Dreyfus Commodities on June 20, 2012.
  3. The acquisition of Ardea Biosciences (RDEA) by AstraZeneca (AZN) on June 20, 2012.
  4. The acquisition of North Central Bancshares (FFFD) by Great Western Bancorporation on June 22, 2012.
  5. The acquisition of TAM S.A. (TAM) by LAN Airlines S.A. (LFL) on June 22, 2012

Top 10 deals with largest spreads:

Symbol Announced

Date

Acquiring

Company

Closing

Price

Last

Price

Closing

Date

Profit Annualized

Profit

CADC 10/24/2011 Novel Gain Holdings Limited (N/A) $2.65 $1.56 06/30/2012 69.87% 5100.64%
ABVA 05/03/2012 Washington First Bankshares (WFBI) $5.30 $4.27 12/31/2012 24.22% 46.78%
VQ 01/16/2012 Denver Parent Corporation (N/A) $12.50 $10.64 07/20/2012 17.48% 255.23%
TLB 05/31/2012 Sycamore Partners (N/A) $2.75 $2.50 09/30/2012 10.00% 37.63%
GU 06/04/2012 Trillion Energy Holdings Limited And Trillion Energy Investments Holdings Limited (N/A) $1.62 $1.48 09/30/2012 9.46% 35.59%
GEOI 04/25/2012 Halcon Resources (HK) $40.77 $37.80 09/30/2012 7.85% 29.56%
SURW 02/06/2012 Consolidated Communications Holdings, Inc. (CNSL) $23.00 $21.63 06/30/2012 6.33% 462.37%
CTFO 06/08/2012 TransCloud Company Limited (N/A) $5.80 $5.49 09/30/2012 5.65% 21.25%
INCB 01/25/2012 Old National Bancorp Capital (ONB) $22.10 $20.96 06/30/2012 5.42% 396.00%
SCMF 03/27/2012 Capital Bank Financial Corp (N/A) $2.88 $2.75 06/30/2012 4.73% 345.09%

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

+ CADC 10/24/2011 Novel Gain Holdings Limited (N/A) All Cash N/A $2.65 $1.56 6,610 06/30/2012 69.87% 5100.64%
+ ABVA 05/03/2012 Washington First Bankshares (WFBI) All Stock $24.4 million $5.30 $4.27 730 12/31/2012 24.22% 46.78%
+ VQ 01/16/2012 Denver Parent Corporation (N/A) All Cash $1.5 billion $12.50 $10.64 644,531 07/20/2012 17.48% 255.23%
+ TLB 05/31/2012 Sycamore Partners (N/A) All Cash $369 million $2.75 $2.50 2,488,228 09/30/2012 10.00% 37.63%
+ GU 06/04/2012 Trillion Energy Holdings Limited And Trillion Energy Investments Holdings Limited (N/A) All Cash N/A $1.62 $1.48 6,450 09/30/2012 9.46% 35.59%
+ GEOI 04/25/2012 Halcon Resources (HK) Cash Plus Stock $1 billion $40.77 $37.80 504,259 09/30/2012 7.85% 29.56%
+ SURW 02/06/2012 Consolidated Communications Holdings, Inc. (CNSL) All Cash $340.9 million $23.00 $21.63 240,590 06/30/2012 6.33% 462.37%
+ CTFO 06/08/2012 TransCloud Company Limited (N/A) All Cash $146.6 million $5.80 $5.49 129,045 09/30/2012 5.65% 21.25%
+ INCB 01/25/2012 Old National Bancorp Capital (ONB) All Stock $79.2 million $22.10 $20.96 3,105 06/30/2012 5.42% 396.00%
+ SCMF 03/27/2012 Capital Bank Financial Corp (N/A) All Cash N/A $2.88 $2.75 52,191 06/30/2012 4.73% 345.09%
+ PSOF 05/17/2012 Timesway Group Limited (N/A) All Cash N $4.15 $3.98 6,200 09/30/2012 4.27% 16.07%
+ BXG 11/14/2011 BFC Financial Corporation (BFCF.PK) All Stock N/A $4.80 $4.61 1,774,501 06/30/2012 4.12% 300.87%
+ CEBK 05/01/2012 Independent Bank Corp. (INDB) All Cash $54.8 million $32.00 $30.76 320 12/31/2012 4.03% 7.79%
+ BIDZ 05/17/2012 Glendon Group, Inc. (N/A) All Cash N/A $0.78 $0.75 30,109 12/31/2012 4.00% 7.72%
+ VRTA 05/31/2012 Vestin Realty Mortgage II, Inc. (VRTB) All Stock N/A $0.97 $0.93 13,150 12/31/2012 3.95% 7.64%
+ TUDO 03/12/2012 Youku Inc. (YOKU) All Stock $1 billion $35.97 $34.75 94,424 09/30/2012 3.50% 13.18%
+ NEBS 05/31/2012 United Financial Bancorp, Inc. (UBNK) All Stock $91.0 million $13.29 $12.85 102,021 12/31/2012 3.42% 6.61%
+ BTFG 05/29/2012 Trustmark Corporation (TRMK) All Stock $55.4 million $3.01 $2.91 35,652 12/31/2012 3.31% 6.39%
+ XG 06/18/2012 Yamana Gold, Inc. (AUY) Cash Plus Stock $414 million $4.21 $4.08 519,059 09/30/2012 3.13% 11.76%
+ OPXT 03/26/2012 Oclaro, Inc. (OCLR) All Stock $177 million $1.20 $1.17 2,896,833 06/30/2012 2.67% 194.67%
+ CBE 05/21/2012 Eaton Corporation (ETN) Cash Plus Stock $11.46 billion $68.79 $67.06 2,724,053 12/31/2012 2.58% 4.99%
+ NWK 06/19/2012 Sonus Networks, Inc. (SONS) All Cash $42 million $1.35 $1.32 470,986 09/30/2012 2.27% 8.55%
+ EF 04/16/2012 Lee Equity Partners, LLC (N/A) All Cash $258 million $8.85 $8.66 98,041 09/30/2012 2.19% 8.26%
+ PSS 05/01/2012 a consortium comprised of Wolverine Worldwide, Blum Capital Partners and Golden Gate Capital (WWW) All Cash $2 billion $21.75 $21.29 1,945,307 10/31/2012 2.16% 6.16%
+ NEI 06/19/2012 UNICOM Systems (N/A) All Cash $63.2 million $1.45 $1.42 799,506 09/30/2012 2.11% 7.95%
+ SUNH 06/30/2012 Genesis HealthCare (N/A) All Cash $275 million $8.50 $8.34 3,079,784 09/30/2012 1.92% 7.22%
+ INMD 06/11/2012 Sagard Capital Partners, L.P. (N/A) All Cash $169.5 million $14.05 $13.83 672,564 11/15/2012 1.59% 4.06%
+ SUN 04/30/2012 Energy Transfer Partners, L.P. (ETP) Cash Plus Stock $5.3 billion $48.52 $47.77 2,115,514 12/31/2012 1.58% 3.05%
+ TIII 05/14/2012 Kelta, Inc. (N/A) All Cash $33.1 million $2.15 $2.12 9,233 09/30/2012 1.42% 5.32%
+ PLXT 04/30/2012 Integrated Device Technology, Inc. (IDTI) Cash Plus Stock $330 million $6.51 $6.42 661,064 06/30/2012 1.37% 100.35%
+ CSBC 05/14/2012 Park Sterling Corporation (PSTB) All Stock $77.8 million $6.70 $6.62 56,840 12/31/2012 1.27% 2.45%
+ KCP 06/06/2012 Kenneth D. Cole, Chairman and Chief Creative Officer of the Company (N/A) All Cash $245 million $15.25 $15.07 173,493 09/30/2012 1.19% 4.49%
+ RFMI 04/13/2012 Murata Manufacturing (N/A) All Cash $19.6 million $1.78 $1.76 3,230 09/30/2012 1.14% 4.28%
+ BNHN 05/22/2012 Angelo, Gordon & Co. (N/A) All Cash $296 million $16.30 $16.12 391,348 12/31/2012 1.12% 2.16%
+ ALTH 04/05/2012 Spectrum Pharmaceuticals (SPPI) All Cash $206 million $1.82 $1.80 766,805 06/30/2012 1.11% 81.11%
+ GPRO 04/30/2012 Hologic, Inc. (HOLX) All Cash $3.7 billion $82.75 $81.94 1,486,970 12/31/2012 0.99% 1.91%
+ EDGR 05/22/2012 R.R. Donnelley & Sons Company (RRD) All Cash $70.5 million $1.09 $1.08 16,237 09/30/2012 0.93% 3.48%
+ NOIZ 06/10/2012 Mercury Computer Systems, Inc. (MRCY) All Cash $75.4 million $14.80 $14.67 34,489 09/30/2012 0.89% 3.33%
+ SMSC 05/02/2012 Microchip Technology Inc. (MCHP) All Cash $939 million $37.00 $36.69 418,589 09/30/2012 0.84% 3.18%
+ PCBC 03/12/2012 UnionBanCal Corp. (N/A) All Cash $1.51 billion $46.00 $45.62 36,218 12/31/2012 0.83% 1.61%
+ IBI 05/29/2012 GS Capital Partners LP and P2 Capital Partners, LLC (N/A) All Cash $1.1 billion $25.50 $25.29 227,917 09/30/2012 0.83% 3.12%
+ GOLF 05/14/2012 Golf Town (N/A) All Cash $96.5 million $6.10 $6.06 18,265 09/30/2012 0.66% 2.48%
+ ARBA 05/22/2012 SAP AG (SAP) All Cash $4.3 billion $45.00 $44.74 1,930,408 09/30/2012 0.58% 2.19%
+ GR 09/21/2011 United Technologies Corp. (UTX) All Cash $18.4 billion $127.50 $126.85 1,465,126 06/30/2012 0.51% 37.41%
+ ERT 04/10/2012 Genstar Capital LLC (N/A) All Cash $400 million $8.00 $7.97 617,915 09/30/2012 0.38% 1.42%
+ PGN 01/10/2011 Duke Energy Corporation (DUK) All Stock $13.7 billion $59.77 $59.58 2,448,183 07/01/2012 0.33% 19.81%
+ CFK 05/30/2012 National Oilwell Varco, Inc. (N/A) All Cash $231.8 million $12.38 $12.34 600 07/31/2012 0.32% 3.29%
+ MTOX 06/04/2012 Laboratory Corp. of America Holdings (LH) All Cash $241 million $27.00 $26.92 78,002 09/30/2012 0.30% 1.12%
+ CRED 06/04/2012 Forestar Group Inc. (FOR) All Cash $146 million $14.50 $14.46 585,233 12/31/2012 0.28% 0.53%
+ CHSI 04/18/2012 SXC Health Solutions, Corp. (SXCI) Cash Plus Stock $4.4 billion $91.09 $90.85 588,276 12/31/2012 0.27% 0.52%
+ KNOL 04/18/2012 WOW! Internet, Cable & Phone (N/A) All Cash $1.5 billion $19.75 $19.70 854,752 09/30/2012 0.25% 0.96%
+ PFCB 05/01/2012 Centerbridge Partners LP (N/A) All Cash $1.09 billion $51.50 $51.38 1,744,468 09/30/2012 0.23% 0.88%
+ LCRY 05/29/2012 Teledyne Technologies Inc. (TDY) All Cash $291 million $14.30 $14.27 387,869 09/30/2012 0.21% 0.79%
+ SOA 01/27/2012 Eastman Chemical Company (EMN) Cash Plus Stock $4.7 billion $27.64 $27.60 1,878,412 06/30/2012 0.14% 10.26%
+ KNSY 05/03/2012 Royal DSM (N/A) All Cash N/A $38.50 $38.46 114,359 06/30/2012 0.10% 7.59%
+ ABVT 03/19/2012 Zayo Group (N/A) All Cash $2.2 billion $84.00 $83.95 114,894 06/30/2012 0.06% 4.35%
+ CPWM 05/09/2012 Bed Bath & Beyond Inc. (BBBY) All Cash $495 million $22.00 $21.99 168,360 07/31/2012 0.05% 0.46%
+ CV 07/12/2011 Gaz metro Limited Partnership (N/A) All Cash $702 million $35.25 $35.25 113,184 06/30/2012 0.00% 0.00%
+ CRYP 02/02/2012 Amaya Gaming Group (N/A) All Cash $35.82 million $2.54 $2.54 1,930 06/25/2012 0.00% 0.00%
+ EBTX 03/06/2012 Cadence Bancorp (N/A) All Cash $250 million $20.62 $20.62 110,853 07/02/2012 0.00% 0.00%
+ ESIC 05/01/2012 Open Text Corp. (OTEX) All Cash $232 million $7.25 $7.25 2,263,918 09/30/2012 0.00% 0.00%
+ STRC 06/07/2012 Synergy Health plc (N/A) All Cash $38.5 million $3.70 $3.70 N/A 07/16/2012 0.00% 0.00%
+ CHG 02/21/2012 Fortis Inc. (N/A) All Cash $1.5 billion $65.00 $65.14 38,863 03/31/2013 -0.21% -0.28%
+ BFED 05/31/2012 Berkshire Hills Bancorp Inc. (BHLB) All Stock $132 million $19.57 $19.62 59,962 12/31/2012 -0.26% -0.51%
+ VIST 01/26/2012 Tompkins Financial Corporation (TMP) All Stock 86 million $11.85 $12.00 66,134 09/30/2012 -1.26% -4.76%
+ QSFT 03/09/2012 Insight Venture Partners (N/A) All Cash $2.17 billion $25.75 $26.22 1,510,265 09/30/2012 -1.79% -6.75%
+ SRSL 04/17/2012 DTS, Inc. (DTSI) Cash Plus Stock $148 million $8.26 $9.05 57,804 09/30/2012 -8.68% -32.67%

Voluntary Disclosure: I hold a long position in Talbots (TLB).