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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 2012 82
Total Number of Deals Not Completed in 2012 1
Total Number of Pending Deals
Cash Deals 46
Stock Deals 12
Stock & Cash Deals 8
Total Number of Pending Deals 66
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:

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 $1.64 06/30/2012 61.59% -11239.33%
VQ 01/16/2012 Denver Parent Corporation (N/A) $12.50 $10.01 07/20/2012 24.88% 504.41%
ABVA 05/03/2012 Washington First Bankshares (WFBI) $5.30 $4.335 12/31/2012 22.36% 44.84%
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% 38.36%
SURW 02/06/2012 Consolidated Communications Holdings, Inc. (CNSL) $23.00 $21.07 07/02/2012 9.16% 0.00%
TLB 05/31/2012 Sycamore Partners (N/A) $2.75 $2.52 09/30/2012 9.13% 37.01%
JAX 06/25/2012 Fidelity National Financial, Inc. (FNF) $12.00 $11.36 12/31/2012 5.63% 11.30%
PSOF 05/17/2012 Timesway Group Limited (N/A) $4.15 $3.97 09/30/2012 4.53% 18.39%
CTFO 06/08/2012 TransCloud Company Limited (N/A) $5.80 $5.55 09/30/2012 4.50% 18.27%
GEOI 04/25/2012 Halcon Resources (HK) $38.24 $36.61 09/30/2012 4.45% 18.04%

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 $1.64 6,150 06/30/2012 61.59% 0.00%
+ VQ 01/16/2012 Denver Parent Corporation (N/A) All Cash $1.5 billion $12.50 $10.01 971,351 07/20/2012 24.88% 504.41%
+ ABVA 05/03/2012 Washington First Bankshares (WFBI) All Stock $24.4 million $5.30 $4.335 N/A 12/31/2012 22.36% 44.84%
+ GU 06/04/2012 Trillion Energy Holdings Limited And Trillion Energy Investments Holdings Limited (N/A) All Cash N/A $1.62 $1.48 29,060 09/30/2012 9.46% 38.36%
+ SURW 02/06/2012 Consolidated Communications Holdings, Inc. (CNSL) All Cash $340.9 million $23.00 $21.07 70,424 07/02/2012 9.16% 0.00%
+ TLB 05/31/2012 Sycamore Partners (N/A) All Cash $369 million $2.75 $2.52 1,686,148 09/30/2012 9.13% 37.01%
+ JAX 06/25/2012 Fidelity National Financial, Inc. (FNF) All Cash $72 million $12.00 $11.36 29,340 12/31/2012 5.63% 11.30%
+ PSOF 05/17/2012 Timesway Group Limited (N/A) All Cash N $4.15 $3.97 900 09/30/2012 4.53% 18.39%
+ CTFO 06/08/2012 TransCloud Company Limited (N/A) All Cash $146.6 million $5.80 $5.55 83,189 09/30/2012 4.50% 18.27%
+ GEOI 04/25/2012 Halcon Resources (HK) Cash Plus Stock $1 billion $38.24 $36.61 221,123 09/30/2012 4.45% 18.04%
+ INCB 01/25/2012 Old National Bancorp Capital (ONB) All Stock $79.2 million $22.82 $22.05 2,500 09/30/2012 3.49% 14.14%
+ BXG 11/14/2011 BFC Financial Corporation (BFCF.PK) All Stock N/A $5.12 $4.96 86,409 06/30/2012 3.23% 0.00%
+ BIDZ 05/17/2012 Glendon Group, Inc. (N/A) All Cash N/A $0.78 $0.756 1,020 12/31/2012 3.17% 6.37%
+ TUDO 03/12/2012 Youku Inc. (YOKU) All Stock $1 billion $34.58 $33.52 21,379 09/30/2012 3.16% 12.82%
+ NWK 06/19/2012 Sonus Networks, Inc. (SONS) All Cash $42 million $1.35 $1.31 285,338 09/30/2012 3.05% 12.38%
+ NEI 06/19/2012 UNICOM Systems (N/A) All Cash $63.2 million $1.45 $1.41 152,893 09/30/2012 2.84% 11.51%
+ CSBC 05/14/2012 Park Sterling Corporation (PSTB) All Stock $77.8 million $6.97 $6.78 70,701 12/31/2012 2.81% 5.63%
+ NEBS 05/31/2012 United Financial Bancorp, Inc. (UBNK) All Stock $91.0 million $13.77 $13.42 11,717 12/31/2012 2.60% 5.21%
+ CBE 05/21/2012 Eaton Corporation (ETN) Cash Plus Stock $11.46 billion $69.85 $68.18 3,343,699 12/31/2012 2.46% 4.93%
+ XG 06/18/2012 Yamana Gold, Inc. (AUY) Cash Plus Stock $414 million $4.22 $4.12 522,267 09/30/2012 2.41% 9.76%
+ BTFG 05/29/2012 Trustmark Corporation (TRMK) All Stock $55.4 million $3.06 $2.99 45,594 12/31/2012 2.34% 4.70%
+ BFED 05/31/2012 Berkshire Hills Bancorp Inc. (BHLB) All Stock $132 million $20.24 $19.83 40,901 12/31/2012 2.07% 4.15%
+ EF 04/16/2012 Lee Equity Partners, LLC (N/A) All Cash $258 million $8.85 $8.70 147,909 09/30/2012 1.72% 6.99%
+ IBI 05/29/2012 GS Capital Partners LP and P2 Capital Partners, LLC (N/A) All Cash $1.1 billion $25.50 $25.07 1,000,892 09/30/2012 1.72% 6.96%
+ ALTH 04/05/2012 Spectrum Pharmaceuticals (SPPI) All Cash $206 million $1.82 $1.79 1,128,442 07/09/2012 1.68% 87.39%
+ PLXT 04/30/2012 Integrated Device Technology, Inc. (IDTI) Cash Plus Stock $330 million $6.45 $6.35 517,668 07/12/2012 1.58% 57.77%
+ SUNH 06/20/2012 Genesis HealthCare (N/A) All Cash $275 million $8.50 $8.37 742,850 09/30/2012 1.55% 6.30%
+ PSS 05/01/2012 a consortium comprised of Wolverine Worldwide, Blum Capital Partners and Golden Gate Capital (WWW) All Cash $2 billion $21.75 $21.42 1,085,077 10/31/2012 1.54% 4.65%
+ INMD 06/11/2012 Sagard Capital Partners, L.P. (N/A) All Cash $169.5 million $14.05 $13.85 126,946 11/15/2012 1.44% 3.88%
+ SUN 04/30/2012 Energy Transfer Partners, L.P. (ETP) Cash Plus Stock $5.3 billion $48.18 $47.50 1,162,562 12/31/2012 1.43% 2.86%
+ TIII 05/14/2012 Kelta, Inc. (N/A) All Cash $33.1 million $2.15 $2.12 34,672 09/30/2012 1.42% 5.74%
+ VIST 01/26/2012 Tompkins Financial Corporation (TMP) All Stock 86 million $11.78 $11.62 3,098 09/30/2012 1.40% 5.67%
+ OPXT 03/26/2012 Oclaro, Inc. (OCLR) All Stock $177 million $1.28 $1.26 332,255 09/30/2012 1.33% 5.41%
+ KCP 06/06/2012 Kenneth D. Cole, Chairman and Chief Creative Officer of the Company (N/A) All Cash $245 million $15.25 $15.05 115,260 09/30/2012 1.33% 5.39%
+ BNHN 05/22/2012 Angelo, Gordon & Co. (N/A) All Cash $296 million $16.30 $16.11 368,926 12/31/2012 1.18% 2.37%
+ ELT 06/29/2012 Melrose PLC (N/A) All Cash $2.3 billion $20.50 $20.30 44,489,432 09/30/2012 0.99% 4.00%
+ EDGR 05/22/2012 R.R. Donnelley & Sons Company (RRD) All Cash $70.5 million $1.09 $1.08 56,224 09/30/2012 0.93% 3.76%
+ CEBK 05/01/2012 Independent Bank Corp. (INDB) All Cash $54.8 million $32.00 $31.72 2,852 12/31/2012 0.88% 1.77%
+ GPRO 04/30/2012 Hologic, Inc. (HOLX) All Cash $3.7 billion $82.75 $82.19 737,842 12/31/2012 0.68% 1.37%
+ GOLF 05/14/2012 Golf Town (N/A) All Cash $96.5 million $6.10 $6.06 91,406 09/30/2012 0.66% 2.68%
+ PCBC 03/12/2012 UnionBanCal Corp. (N/A) All Cash $1.51 billion $46.00 $45.73 23,761 12/31/2012 0.59% 1.18%
+ STRC 06/07/2012 Synergy Health plc (N/A) All Cash $38.5 million $3.70 $3.68 12,399 07/16/2012 0.54% 14.17%
+ NOIZ 06/10/2012 Mercury Computer Systems, Inc. (MRCY) All Cash $75.4 million $14.80 $14.72 12,512 09/30/2012 0.54% 2.20%
+ ARBA 05/22/2012 SAP AG (SAP) All Cash $4.3 billion $45.00 $44.76 1,973,212 09/30/2012 0.54% 2.17%
+ GR 09/21/2011 United Technologies Corp. (UTX) All Cash $18.4 billion $127.50 $126.90 1,034,732 08/31/2012 0.47% 2.88%
+ KNOL 04/18/2012 WOW! Internet, Cable & Phone (N/A) All Cash $1.5 billion $19.75 $19.67 469,332 09/30/2012 0.41% 1.65%
+ SMSC 05/02/2012 Microchip Technology Inc. (MCHP) All Cash $939 million $37.00 $36.89 189,093 09/30/2012 0.30% 1.21%
+ LCRY 05/29/2012 Teledyne Technologies Inc. (TDY) All Cash $291 million $14.30 $14.26 192,974 09/30/2012 0.28% 1.14%
+ CRED 06/04/2012 Forestar Group Inc. (FOR) All Cash $146 million $14.50 $14.47 43,207 12/31/2012 0.21% 0.42%
+ MTOX 06/04/2012 Laboratory Corp. of America Holdings (LH) All Cash $241 million $27.00 $26.96 207,552 09/30/2012 0.15% 0.60%
+ ESIC 05/01/2012 Open Text Corp. (OTEX) All Cash $232 million $7.25 $7.24 421,005 09/30/2012 0.14% 0.56%
+ PGN 01/10/2011 Duke Energy Corporation (DUK) All Stock $13.7 billion $60.24 $60.17 N/A 07/02/2012 0.12% 0.00%
+ CHSI 04/18/2012 SXC Health Solutions, Corp. (SXCI) Cash Plus Stock $4.4 billion $93.54 $93.44 350,982 12/31/2012 0.11% 0.21%
+ VRTA 05/31/2012 Vestin Realty Mortgage II, Inc. (VRTB) All Stock N/A $0.93 $0.93 11,500 12/31/2012 0.08% 0.15%
+ ERT 04/10/2012 Genstar Capital LLC (N/A) All Cash $400 million $8.00 $7.995 338,642 09/30/2012 0.06% 0.25%
+ PFCB 05/01/2012 Centerbridge Partners LP (N/A) All Cash $1.09 billion $51.50 $51.47 341,500 09/30/2012 0.06% 0.24%
+ ABVT 03/19/2012 Zayo Group (N/A) All Cash $2.2 billion $84.00 $84.00 593,260 06/30/2012 0.00% 0.00%
+ RFMI 04/13/2012 Murata Manufacturing (N/A) All Cash $19.6 million $1.78 $1.78 21,100 09/30/2012 0.00% 0.00%
+ CPWM 05/09/2012 Bed Bath & Beyond Inc. (BBBY) All Cash $495 million $22.00 $22.00 522,333 07/31/2012 0.00% 0.00%
+ SOA 01/27/2012 Eastman Chemical Company (EMN) Cash Plus Stock $4.7 billion $28.04 $28.05 2,184,812 07/06/2012 -0.02% -1.82%
+ EBTX 03/06/2012 Cadence Bancorp (N/A) All Cash $250 million $20.62 $20.63 100,783 07/02/2012 -0.05% 0.00%
+ CFK 05/30/2012 National Oilwell Varco, Inc. (N/A) All Cash $231.8 million $12.38 $12.48 11,430 07/31/2012 -0.80% -10.09%
+ CHG 02/21/2012 Fortis Inc. (N/A) All Cash $1.5 billion $65.00 $65.69 29,649 03/31/2013 -1.05% -1.41%
+ QSFT 03/09/2012 Insight Venture Partners (N/A) All Cash $2.17 billion $25.75 $27.81 1,728,030 09/30/2012 -7.41% -30.04%
+ SCMF 03/27/2012 Capital Bank Financial Corp (N/A) All Cash N/A $2.88 $3.16 79,997 09/30/2012 -8.86% -35.94%
+ SRSL 04/17/2012 DTS, Inc. (DTSI) Cash Plus Stock $148 million $8.12 $9.00 149,923 09/30/2012 -9.80% -39.75%

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