Merger Arbitrage Mondays – July 2, 2012

  • July 2, 2012

Merger activity decreased last week with two new deals announced and two 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 201282
Total Number of Deals Not Completed in 20121
Total Number of Pending Deals
Cash Deals46
Stock Deals12
Stock & Cash Deals8
Total Number of Pending Deals66
Total Deal Size$404.75 billion

New Deals:

  1. The acquisition of J. Alexander’s Corp (JAX) by Fidelity National Financial (FNF) for $72 million or $12.00 per share in cash. Shareholders of J. Alexander’s can elect to receive $12 per share in cash or a combination of $3 in cash and one share of Class A common stock of American Blue Ribbon Holdings Inc (ABRH), a majority owned subsidiary of Fidelity. When issued, the ABRH shares will be listed for trading on Nasdaq.
  2. The acquisition of Elster Group (ELT) by Melrose PLC for $2.3 billion in an all cash transaction, where Melrose will acquire all outstanding American Depositary Shares (ADS) of Elster for $20.50 per ADS in cash. Each ADS represents one-fourth of one ordinary share of Elster.

Updated Deals:

  1. On June 25, 2012, Dell (DELL) offered a bid for $27.50 or $2.3 billion for Quest Software (QSFT), topping a $2.17 billion bid from the group led by New-York based Insight Venture Partners.

Closed Deals:

  1. The acquisition of Kensey Nash Corporation (KNSY) by Royal DSM on June 25, 2012.
  2. The acquisition of CryptoLogic Limited (CRYP) by Amaya Gaming Group on June 26, 2012.
  3. The acquisition of Central Vermont Public Service Corp. (CV) by Gaz metro Limited Partnership on June 27, 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$1.6406/30/201261.59%-11239.33%
VQ01/16/2012Denver Parent Corporation (N/A)$12.50$10.0107/20/201224.88%504.41%
ABVA05/03/2012Washington First Bankshares (WFBI)$5.30$4.33512/31/201222.36%44.84%
GU06/04/2012Trillion Energy Holdings Limited And Trillion Energy Investments Holdings Limited (N/A)$1.62$1.4809/30/20129.46%38.36%
SURW02/06/2012Consolidated Communications Holdings, Inc. (CNSL)$23.00$21.0707/02/20129.16%0.00%
TLB05/31/2012Sycamore Partners (N/A)$2.75$2.5209/30/20129.13%37.01%
JAX06/25/2012Fidelity National Financial, Inc. (FNF)$12.00$11.3612/31/20125.63%11.30%
PSOF05/17/2012Timesway Group Limited (N/A)$4.15$3.9709/30/20124.53%18.39%
CTFO06/08/2012TransCloud Company Limited (N/A)$5.80$5.5509/30/20124.50%18.27%
GEOI04/25/2012Halcon Resources (HK)$38.24$36.6109/30/20124.45%18.04%

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$1.646,15006/30/201261.59%0.00%
+VQ01/16/2012Denver Parent Corporation (N/A)All Cash$1.5 billion$12.50$10.01971,35107/20/201224.88%504.41%
+ABVA05/03/2012Washington First Bankshares (WFBI)All Stock$24.4 million$5.30$4.335N/A12/31/201222.36%44.84%
+GU06/04/2012Trillion Energy Holdings Limited And Trillion Energy Investments Holdings Limited (N/A)All CashN/A$1.62$1.4829,06009/30/20129.46%38.36%
+SURW02/06/2012Consolidated Communications Holdings, Inc. (CNSL)All Cash$340.9 million$23.00$21.0770,42407/02/20129.16%0.00%
+TLB05/31/2012Sycamore Partners (N/A)All Cash$369 million$2.75$2.521,686,14809/30/20129.13%37.01%
+JAX06/25/2012Fidelity National Financial, Inc. (FNF)All Cash$72 million$12.00$11.3629,34012/31/20125.63%11.30%
+PSOF05/17/2012Timesway Group Limited (N/A)All CashN$4.15$3.9790009/30/20124.53%18.39%
+CTFO06/08/2012TransCloud Company Limited (N/A)All Cash$146.6 million$5.80$5.5583,18909/30/20124.50%18.27%
+GEOI04/25/2012Halcon Resources (HK)Cash Plus Stock$1 billion$38.24$36.61221,12309/30/20124.45%18.04%
+INCB01/25/2012Old National Bancorp Capital (ONB)All Stock$79.2 million$22.82$22.052,50009/30/20123.49%14.14%
+BXG11/14/2011BFC Financial Corporation (BFCF.PK)All StockN/A$5.12$4.9686,40906/30/20123.23%0.00%
+BIDZ05/17/2012Glendon Group, Inc. (N/A)All CashN/A$0.78$0.7561,02012/31/20123.17%6.37%
+TUDO03/12/2012Youku Inc. (YOKU)All Stock$1 billion$34.58$33.5221,37909/30/20123.16%12.82%
+NWK06/19/2012Sonus Networks, Inc. (SONS)All Cash$42 million$1.35$1.31285,33809/30/20123.05%12.38%
+NEI06/19/2012UNICOM Systems (N/A)All Cash$63.2 million$1.45$1.41152,89309/30/20122.84%11.51%
+CSBC05/14/2012Park Sterling Corporation (PSTB)All Stock$77.8 million$6.97$6.7870,70112/31/20122.81%5.63%
+NEBS05/31/2012United Financial Bancorp, Inc. (UBNK)All Stock$91.0 million$13.77$13.4211,71712/31/20122.60%5.21%
+CBE05/21/2012Eaton Corporation (ETN)Cash Plus Stock$11.46 billion$69.85$68.183,343,69912/31/20122.46%4.93%
+XG06/18/2012Yamana Gold, Inc. (AUY)Cash Plus Stock$414 million$4.22$4.12522,26709/30/20122.41%9.76%
+BTFG05/29/2012Trustmark Corporation (TRMK)All Stock$55.4 million$3.06$2.9945,59412/31/20122.34%4.70%
+BFED05/31/2012Berkshire Hills Bancorp Inc. (BHLB)All Stock$132 million$20.24$19.8340,90112/31/20122.07%4.15%
+EF04/16/2012Lee Equity Partners, LLC (N/A)All Cash$258 million$8.85$8.70147,90909/30/20121.72%6.99%
+IBI05/29/2012GS Capital Partners LP and P2 Capital Partners, LLC (N/A)All Cash$1.1 billion$25.50$25.071,000,89209/30/20121.72%6.96%
+ALTH04/05/2012Spectrum Pharmaceuticals (SPPI)All Cash$206 million$1.82$1.791,128,44207/09/20121.68%87.39%
+PLXT04/30/2012Integrated Device Technology, Inc. (IDTI)Cash Plus Stock$330 million$6.45$6.35517,66807/12/20121.58%57.77%
+SUNH06/20/2012Genesis HealthCare (N/A)All Cash$275 million$8.50$8.37742,85009/30/20121.55%6.30%
+PSS05/01/2012a consortium comprised of Wolverine Worldwide, Blum Capital Partners and Golden Gate Capital (WWW)All Cash$2 billion$21.75$21.421,085,07710/31/20121.54%4.65%
+INMD06/11/2012Sagard Capital Partners, L.P. (N/A)All Cash$169.5 million$14.05$13.85126,94611/15/20121.44%3.88%
+SUN04/30/2012Energy Transfer Partners, L.P. (ETP)Cash Plus Stock$5.3 billion$48.18$47.501,162,56212/31/20121.43%2.86%
+TIII05/14/2012Kelta, Inc. (N/A)All Cash$33.1 million$2.15$2.1234,67209/30/20121.42%5.74%
+VIST01/26/2012Tompkins Financial Corporation (TMP)All Stock86 million$11.78$11.623,09809/30/20121.40%5.67%
+OPXT03/26/2012Oclaro, Inc. (OCLR)All Stock$177 million$1.28$1.26332,25509/30/20121.33%5.41%
+KCP06/06/2012Kenneth D. Cole, Chairman and Chief Creative Officer of the Company (N/A)All Cash$245 million$15.25$15.05115,26009/30/20121.33%5.39%
+BNHN05/22/2012Angelo, Gordon & Co. (N/A)All Cash$296 million$16.30$16.11368,92612/31/20121.18%2.37%
+ELT06/29/2012Melrose PLC (N/A)All Cash$2.3 billion$20.50$20.3044,489,43209/30/20120.99%4.00%
+EDGR05/22/2012R.R. Donnelley & Sons Company (RRD)All Cash$70.5 million$1.09$1.0856,22409/30/20120.93%3.76%
+CEBK05/01/2012Independent Bank Corp. (INDB)All Cash$54.8 million$32.00$31.722,85212/31/20120.88%1.77%
+GPRO04/30/2012Hologic, Inc. (HOLX)All Cash$3.7 billion$82.75$82.19737,84212/31/20120.68%1.37%
+GOLF05/14/2012Golf Town (N/A)All Cash$96.5 million$6.10$6.0691,40609/30/20120.66%2.68%
+PCBC03/12/2012UnionBanCal Corp. (N/A)All Cash$1.51 billion$46.00$45.7323,76112/31/20120.59%1.18%
+STRC06/07/2012Synergy Health plc (N/A)All Cash$38.5 million$3.70$3.6812,39907/16/20120.54%14.17%
+NOIZ06/10/2012Mercury Computer Systems, Inc. (MRCY)All Cash$75.4 million$14.80$14.7212,51209/30/20120.54%2.20%
+ARBA05/22/2012SAP AG (SAP)All Cash$4.3 billion$45.00$44.761,973,21209/30/20120.54%2.17%
+GR09/21/2011United Technologies Corp. (UTX)All Cash$18.4 billion$127.50$126.901,034,73208/31/20120.47%2.88%
+KNOL04/18/2012WOW! Internet, Cable & Phone (N/A)All Cash$1.5 billion$19.75$19.67469,33209/30/20120.41%1.65%
+SMSC05/02/2012Microchip Technology Inc. (MCHP)All Cash$939 million$37.00$36.89189,09309/30/20120.30%1.21%
+LCRY05/29/2012Teledyne Technologies Inc. (TDY)All Cash$291 million$14.30$14.26192,97409/30/20120.28%1.14%
+CRED06/04/2012Forestar Group Inc. (FOR)All Cash$146 million$14.50$14.4743,20712/31/20120.21%0.42%
+MTOX06/04/2012Laboratory Corp. of America Holdings (LH)All Cash$241 million$27.00$26.96207,55209/30/20120.15%0.60%
+ESIC05/01/2012Open Text Corp. (OTEX)All Cash$232 million$7.25$7.24421,00509/30/20120.14%0.56%
+PGN01/10/2011Duke Energy Corporation (DUK)All Stock$13.7 billion$60.24$60.17N/A07/02/20120.12%0.00%
+CHSI04/18/2012SXC Health Solutions, Corp. (SXCI)Cash Plus Stock$4.4 billion$93.54$93.44350,98212/31/20120.11%0.21%
+VRTA05/31/2012Vestin Realty Mortgage II, Inc. (VRTB)All StockN/A$0.93$0.9311,50012/31/20120.08%0.15%
+ERT04/10/2012Genstar Capital LLC (N/A)All Cash$400 million$8.00$7.995338,64209/30/20120.06%0.25%
+PFCB05/01/2012Centerbridge Partners LP (N/A)All Cash$1.09 billion$51.50$51.47341,50009/30/20120.06%0.24%
+ABVT03/19/2012Zayo Group (N/A)All Cash$2.2 billion$84.00$84.00593,26006/30/20120.00%0.00%
+RFMI04/13/2012Murata Manufacturing (N/A)All Cash$19.6 million$1.78$1.7821,10009/30/20120.00%0.00%
+CPWM05/09/2012Bed Bath & Beyond Inc. (BBBY)All Cash$495 million$22.00$22.00522,33307/31/20120.00%0.00%
+SOA01/27/2012Eastman Chemical Company (EMN)Cash Plus Stock$4.7 billion$28.04$28.052,184,81207/06/2012-0.02%-1.82%
+EBTX03/06/2012Cadence Bancorp (N/A)All Cash$250 million$20.62$20.63100,78307/02/2012-0.05%0.00%
+CFK05/30/2012National Oilwell Varco, Inc. (N/A)All Cash$231.8 million$12.38$12.4811,43007/31/2012-0.80%-10.09%
+CHG02/21/2012Fortis Inc. (N/A)All Cash$1.5 billion$65.00$65.6929,64903/31/2013-1.05%-1.41%
+QSFT03/09/2012Insight Venture Partners (N/A)All Cash$2.17 billion$25.75$27.811,728,03009/30/2012-7.41%-30.04%
+SCMF03/27/2012Capital Bank Financial Corp (N/A)All CashN/A$2.88$3.1679,99709/30/2012-8.86%-35.94%
+SRSL04/17/2012DTS, Inc. (DTSI)Cash Plus Stock$148 million$8.12$9.00149,92309/30/2012-9.80%-39.75%

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