Merger Arbitrage Mondays – June 4, 2012

  • June 4, 2012

Merger activity increased last week with six new deals announced and one closing.

You can find all the active deals listed below in our Merger Arbitrage Tool that automatically updates itself during market hours.

Deal Statistcs:

Total Number of Deals Closed in 201267
Total Number of Deals Not Completed in 20111
Total Number of Pending Deals
Cash Deals46
Stock Deals12
Stock & Cash Deals7
Total Number of Pending Deals65
Total Deal Size$400.26 billion

New Deals:

  1. The acquisition of Interline Brands (IBI) by GS Capital Partners LP and P2 Capital Partners, LLC for $1.1 billion or $25.50 per share in cash.
  2. The acquisition of LeCroy (LCRY) by Teledyne Technologies (TDY) for $291 million or $14.30 per share in cash.
  3. The acquisition of BancTrust Financial Group (BTFG) by Trustmark Corporation (TRMK) for $55.4 million in an all stock deal. Under the terms of the agreement, shareholders of BancTrust Financial Group will receive 0.125 shares of Trustmark common stock for each share of BancTrust common stock in a tax-free exchange.
  4. The acquisition of CE Franklin (CFK) by National Oilwell Varco for CAD$240 million or CAD$12.75 per share in cash.
  5. The acquisition of The Talbots (TLB) by Sycamore Partners for $369 million or $2.75 per share in cash. This is an interesting deal where Sycamore Partners had initially bid as high as $3.05 for Talbots and then walked away from the deal when the board did not accept the bid. The stock dropped to an intraday low of just $1.28 last week after Sycamore walked. Despite this new bid of $2.75, the spread on the deal is still 14.58% or 44.73% annualized.
  6. The acquisition of Beacon Federal Bancorp (BFED) by Berkshire Hills Bancorp (BHLB) for $132 million. Under the terms of the merger agreement, 50% of the outstanding Beacon shares will be exchanged for Berkshire shares at a fixed exchange ratio of 0.92 shares for each Beacon share, while the remaining 50% of Beacon shares will be exchanged for cash in the amount of $20.50 per share. To take a more conservative approach, we have entered this deal as an all stock deal.

Updated Deals:

  1. On May 30, 2012, The Pep Boys — Manny, Moe & Jack called off its planned acquisition by investment firm The Gores Group.
  2. On May 31, 2012, The Amaya Gaming Group extended its buyout offer for CryptoLogic (CRYP) to June 25, 2012.

Closed Deals:

  1. The acquisition of Commerce First Bancorp (CMFB) by Sandy Spring Bancorp (SASR) on May 31, 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$1.6006/30/201265.63%921.27%
VQ01/16/2012Denver Parent Corporation (N/A)$12.50$9.6306/30/201229.80%418.38%
TLB05/31/2012Sycamore Partners (N/A)$2.75$2.4009/30/201214.58%45.11%
SURW02/06/2012Consolidated Communications Holdings, Inc. (CNSL)$23.00$21.2106/30/20128.44%118.48%
GEOI04/25/2012Halcon Resources (HK)$36.87$34.6209/30/20126.49%20.07%
TUDO03/12/2012Youku Inc. (YOKU)$34.91$32.8209/30/20126.38%19.74%
CEBK05/01/2012Independent Bank Corp. (INDB)$32.00$30.1412/31/20126.17%10.73%
INCB01/25/2012Old National Bancorp Capital (ONB)$21.00$19.7906/30/20126.09%85.48%
PSOF05/17/2012Timesway Group Limited (N/A)$4.15$3.9409/30/20125.33%16.49%
EF04/16/2012Lee Equity Partners, LLC (N/A)$8.85$8.4109/30/20125.23%16.18%

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$1.6015,98006/30/201265.63%921.27%
+VQ01/16/2012Denver Parent Corporation (N/A)All Cash$1.5 billion$12.50$9.63655,24806/30/201229.80%418.38%
+TLB05/31/2012Sycamore Partners (N/A)All Cash$369 million$2.75$2.405,484,25509/30/201214.58%45.11%
+SURW02/06/2012Consolidated Communications Holdings, Inc. (CNSL)All Cash$340.9 million$23.00$21.21139,18906/30/20128.44%118.48%
+GEOI04/25/2012Halcon Resources (HK)Cash Plus Stock$1 billion$36.87$34.62231,13409/30/20126.49%20.07%
+TUDO03/12/2012Youku Inc. (YOKU)All Stock$1 billion$34.91$32.8277,30109/30/20126.38%19.74%
+CEBK05/01/2012Independent Bank Corp. (INDB)All Cash$54.8 million$32.00$30.1410012/31/20126.17%10.73%
+INCB01/25/2012Old National Bancorp Capital (ONB)All Stock$79.2 million$21.00$19.793,34306/30/20126.09%85.48%
+PSOF05/17/2012Timesway Group Limited (N/A)All CashN$4.15$3.943,38609/30/20125.33%16.49%
+EF04/16/2012Lee Equity Partners, LLC (N/A)All Cash$258 million$8.85$8.41386,08709/30/20125.23%16.18%
+PGN01/10/2011Duke Energy Corporation (DUK)All Stock$13.7 billion$58.39$55.501,874,03107/01/20125.21%70.38%
+TAM01/19/2011LAN Airlines S.A. (LFL)All StockN/A$22.04$21.17735,49906/30/20124.11%57.76%
+TIII05/14/2012Kelta, Inc. (N/A)All Cash$33.1 million$2.15$2.07596,41909/30/20123.61%11.18%
+BTFG05/29/2012Trustmark Corporation (TRMK)All Stock$55.4 million$2.96$2.8664,65012/31/20123.58%6.23%
+PSS05/01/2012a consortium comprised of Wolverine Worldwide, Blum Capital Partners and Golden Gate Capital (WWW)All Cash$2 billion$21.75$21.072,599,15910/31/20123.23%7.91%
+SCMF03/27/2012Capital Bank Financial Corp (N/A)All CashN/A$2.88$2.793,89906/30/20123.23%45.29%
+SUN04/30/2012Energy Transfer Partners, L.P. (ETP)Cash Plus Stock$5.3 billion$47.33$45.973,024,66012/31/20122.95%5.13%
+ALTH04/05/2012Spectrum Pharmaceuticals (SPPI)All Cash$206 million$1.82$1.771,843,45206/30/20122.82%39.66%
+CBE05/21/2012Eaton Corporation (ETN)Cash Plus Stock$11.46 billion$70.33$68.502,577,37712/31/20122.67%4.64%
+BIDZ05/17/2012Glendon Group, Inc. (N/A)All CashN/A$0.78$0.7636,87012/31/20122.63%4.57%
+GPRO04/30/2012Hologic, Inc. (HOLX)All Cash$3.7 billion$82.75$80.771,038,72412/31/20122.45%4.26%
+PLXT04/30/2012Integrated Device Technology, Inc. (IDTI)Cash Plus Stock$330 million$6.28$6.152,975,00106/30/20122.15%30.25%
+IBI05/29/2012GS Capital Partners LP and P2 Capital Partners, LLC (N/A)All Cash$1.1 billion$25.50$25.07877,90509/30/20121.72%5.31%
+ERT04/10/2012Genstar Capital LLC (N/A)All Cash$400 million$8.00$7.87366,31909/30/20121.65%5.11%
+CFK05/30/2012National Oilwell Varco, Inc. (N/A)All Cash$231.8 million$12.38$12.18246,30007/31/20121.64%10.51%
+GR09/21/2011United Technologies Corp. (UTX)All Cash$18.4 billion$127.50$125.522,238,73806/30/20121.58%22.14%
+BNHN05/22/2012Angelo, Gordon & Co. (N/A)All Cash$296 million$16.30$16.07344,65112/31/20121.43%2.49%
+KNOL04/18/2012WOW! Internet, Cable & Phone (N/A)All Cash$1.5 billion$19.75$19.49385,73909/30/20121.33%4.13%
+PCBC03/12/2012UnionBanCal Corp. (N/A)All Cash$1.51 billion$46.00$45.4019,31712/31/20121.32%2.30%
+PFCB05/01/2012Centerbridge Partners LP (N/A)All Cash$1.09 billion$51.50$50.871,332,96209/30/20121.24%3.83%
+RFMI04/13/2012Murata Manufacturing (N/A)All Cash$19.6 million$1.78$1.7638,32009/30/20121.14%3.52%
+ESIC05/01/2012Open Text Corp. (OTEX)All Cash$232 million$7.25$7.17575,51109/30/20121.12%3.45%
+SMSC05/02/2012Microchip Technology Inc. (MCHP)All Cash$939 million$37.00$36.60304,69909/30/20121.09%3.38%
+LCRY05/29/2012Teledyne Technologies Inc. (TDY)All Cash$291 million$14.30$14.161,143,31109/30/20120.99%3.06%
+EDGR05/22/2012R.R. Donnelley & Sons Company (RRD)All Cash$70.5 million$1.09$1.08170,98409/30/20120.93%2.86%
+GTSI05/07/2012an affiliate of UNICOM Systems (N/A)All Cash$76.67 million$7.75$7.6830,07807/31/20120.91%5.84%
+ABVT03/19/2012Zayo Group (N/A)All Cash$2.2 billion$84.00$83.27344,72806/30/20120.88%12.31%
+OPXT03/26/2012Oclaro, Inc. (OCLR)All Stock$177 million$1.00$0.988260,06806/30/20120.75%10.51%
+GOLF05/14/2012Golf Town (N/A)All Cash$96.5 million$6.10$6.06609,61209/30/20120.66%2.04%
+VIST01/26/2012Tompkins Financial Corporation (TMP)All Stock86 million$11.37$11.305,41709/30/20120.59%1.82%
+CV07/12/2011Gaz metro Limited Partnership (N/A)All Cash$702 million$35.25$35.0737,67406/30/20120.51%7.21%
+RVSN03/15/2012Avaya (N/A)All Cash$230 million$11.85$11.7941,35506/15/20120.51%16.89%
+SOA01/27/2012Eastman Chemical Company (EMN)Cash Plus Stock$4.7 billion$27.23$27.101,592,30906/30/20120.49%6.90%
+CHSI04/18/2012SXC Health Solutions, Corp. (SXCI)Cash Plus Stock$4.4 billion$86.50$86.08480,96212/31/20120.49%0.85%
+EBTX03/06/2012Cadence Bancorp (N/A)All Cash$250 million$20.62$20.5357,90312/31/20120.44%0.76%
+CHRS05/02/2012Ascena Retail Group Inc. (ASNA)All Cash$890 million$7.35$7.322,120,14106/30/20120.41%5.75%
+ARBA05/22/2012SAP AG (SAP)All Cash$4.3 billion$45.00$44.823,149,49009/30/20120.40%1.24%
+CRYP02/02/2012Amaya Gaming Group (N/A)All Cash$35.82 million$2.54$2.535,40006/25/20120.40%6.87%
+IPSU05/01/2012Louis Dreyfus Commodities LLC (N/A)All Cash$203 million$6.35$6.33341,83106/30/20120.32%4.44%
+RDEA04/23/2012AstraZeneca (AZN)All Cash$1.26 billion$32.00$31.90218,86009/30/20120.31%0.97%
+FFFD03/13/2012Great Western Bancorporation, Inc. (N/A)All Cash$41.5 million$30.58$30.49N/A08/31/20120.30%1.22%
+DRJ04/16/2012Fanatics (N/A)All Cash$183 million$3.45$3.4467,84009/30/20120.29%0.90%
+ISTA03/26/2012Bausch + Lomb (N/A)All Cash$500 million$9.10$9.08669,17806/30/20120.22%3.09%
+ADGF03/19/2012TaylorMade-adidas Golf business (N/A)All Cash$70 million$10.80$10.78N/A06/30/20120.19%2.60%
+KNSY05/03/2012Royal DSM (N/A)All CashN/A$38.50$38.43217,94206/30/20120.18%2.56%
+NVLS12/14/2011Lam Research Corp (LRCX)All Stock$3.3 billion$40.65$40.583,311,69406/30/20120.16%2.29%
+CSBC05/14/2012Park Sterling Corporation (PSTB)All Stock$77.8 million$6.41$6.4041,94012/31/20120.12%0.22%
+DDIC04/04/2012Viasystems Group Inc. (VIAS)All Cash$268 million$13.00$12.99N/A07/31/20120.08%0.49%
+CPWM05/09/2012Bed Bath & Beyond Inc. (BBBY)All Cash$495 million$22.00$22.01217,51507/31/2012-0.05%-0.29%
+BFED05/31/2012Berkshire Hills Bancorp Inc. (BHLB)All Stock$132 million$19.09$19.23849,85112/31/2012-0.73%-1.27%
+CHG02/21/2012Fortis Inc. (N/A)All Cash$1.5 billion$65.00$65.4945,00103/31/2013-0.75%-0.91%
+BXG11/14/2011BFC Financial Corporation (BFCF.PK)All StockN/A$4.80$4.9446,90406/30/2012-2.83%-39.79%
+QSFT03/09/2012Insight Venture Partners (N/A)All Cash$2 billion$23.00$23.743,456,17209/30/2012-3.12%-9.64%
+SRSL04/17/2012DTS, Inc. (DTSI)Cash Plus Stock$148 million$8.53$8.9642,29409/30/2012-4.81%-14.89%
+ABVA05/03/2012Washington First Bankshares (WFBI.OB)All Stock$24.4 millionN/A$4.2640012/31/2012N/AN/A