Merger Arbitrage Mondays – August 20, 2012

Merger activity increased last week with five new deals announced and 3 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 114
Total Number of Deals Not Completed in 2012 1
Total Number of Pending Deals
Cash Deals 44
Stock Deals 12
Stock & Cash Deals 7
Total Number of Pending Deals 63
Total Deal Size $458.82 billion

New Deals:

  1. The acquisition of Comverse Technology (CMVT) by Verint Systems (VRNT) for $805.7 million in an all stock deal. Comverse currently holds approximately 41% of Verint’s common shares and all of Verint’s outstanding convertible preferred shares. The deal is expected to close in the fiscal first quarter ending April 2013.
  2. The acquisition of Taro Pharmaceutical Industries (TARO) by Sun Pharmaceutical Industries for $1.45 billion or $39.50 in an all cash transaction. Sun Pharmaceutical already owns 66% of Taro’s ordinary shares and 100% of the shares of Taro’s founders, giving it 77.5 % of the voting rights in the company.
  3. The acquisition of FSI International (FSII) by Tokyo Electron for $252.5 million or $6.20 per share in an all cash deal. The deal is expected to close by the end of 2012.
  4. The acquisition of Yucheng Technologies Limited (YTEC) by New Sihitech Limited in a “going private” transaction for $79.5 million or $3.90 per share in an all cash deal. The deal is expected to close before the end of the fourth quarter of 2012.
  5. The acquisition of Physicians Formula Holdings (FACE) by Swander Pace Capital for $65 million or $4.25 per share in cash. The deal is expected to close later this year.

Closed Deals:

  1. The acquisition of Lincare Holdings (LNCR) by Linde AG on August 13, 2012.
  2. The acquisition of LaCrosse Footware Inc. (BOOT) by ABC-MART, Inc on August 16, 2012.
  3. The acquisition of MModal (MODL) by One Equity Partners, the private investment arm of JP Morgan Chase & Co, on August 17, 2012.

Deal Updates:

  1. On August 16, 2012 Venoco (VQ) indicated that its CEO is in advanced talks to obtain funding for the deal to take the company private. Venoco expects the deal to close before the September 14 deadline.

Top 10 deals with largest spreads:

Symbol Announced

Date

Acquiring

Company

Closing

Price

Last

Price

Closing

Date

Profit Annualized

Profit

VQ 01/16/2012 Denver Parent Corporation (N/A) $12.50 $10.92 08/31/2012 14.47% 480.10%
VRTA 05/31/2012 Vestin Realty Mortgage II, Inc. (VRTB) $1.06 $0.952 12/31/2012 11.11% 30.50%
SHAW 07/30/2012 Chicago Bridge & Iron Company (CBI) $45.85 $41.68 03/31/2013 10.00% 16.36%
PLXT 04/30/2012 Integrated Device Technology, Inc. (IDTI) $6.38 $5.81 08/09/2012 9.85% -326.82%
ABVA 05/03/2012 Washington First Bankshares (WFBI) $4.88 $4.47 12/31/2012 9.14% 25.08%
GU 06/04/2012 Trillion Energy Holdings Limited And Trillion Energy Investments Holdings Limited (N/A) $1.62 $1.49 09/30/2012 8.72% 77.67%
YTEC 08/13/2012 New Sihitech Limited (N/A) $3.90 $3.65 12/31/2012 6.85% 18.80%
NXY 07/23/2012 CNOOC Ltd. (CEO) $27.50 $25.75 12/31/2012 6.80% 18.65%
FSIN 06/28/2012 Chairman and Co-Chief Executive Officer, Mr. Li Fu, and Abax Global Capital (Hong Kong) Limited (N/A) $9.50 $8.94 12/31/2012 6.26% 17.19%
WWIN 07/24/2012 Winner Holding Limited (N/A) $4.50 $4.26 03/31/2013 5.63% 9.22%

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

+ VQ 01/16/2012 Denver Parent Corporation (N/A) All Cash $1.5 billion $12.50 $10.92 1,709,016 08/31/2012 14.47% 480.10%
+ VRTA 05/31/2012 Vestin Realty Mortgage II, Inc. (VRTB) All Stock N/A $1.06 $0.952 N/A 12/31/2012 11.11% 30.50%
+ SHAW 07/30/2012 Chicago Bridge & Iron Company (CBI) Cash Plus Stock $3 billion $45.85 $41.68 1,169,929 03/31/2013 10.00% 16.36%
+ PLXT 04/30/2012 Integrated Device Technology, Inc. (IDTI) Cash Plus Stock $330 million $6.38 $5.81 211,223 08/09/2012 9.85% 0.00%
+ ABVA 05/03/2012 Washington First Bankshares (WFBI) All Stock $24.4 million $4.88 $4.47 5,800 12/31/2012 9.14% 25.08%
+ GU 06/04/2012 Trillion Energy Holdings Limited And Trillion Energy Investments Holdings Limited (N/A) All Cash N/A $1.62 $1.49 21,648 09/30/2012 8.72% 77.67%
+ YTEC 08/13/2012 New Sihitech Limited (N/A) All Cash $79.5 million $3.90 $3.65 24,288 12/31/2012 6.85% 18.80%
+ NXY 07/23/2012 CNOOC Ltd. (CEO) All Cash $15.1 billion $27.50 $25.75 4,676,264 12/31/2012 6.80% 18.65%
+ FSIN 06/28/2012 Chairman and Co-Chief Executive Officer, Mr. Li Fu, and Abax Global Capital (Hong Kong) Limited (N/A) All Cash N/A $9.50 $8.94 233,249 12/31/2012 6.26% 17.19%
+ WWIN 07/24/2012 Winner Holding Limited (N/A) All Cash N/A $4.50 $4.26 32,821 03/31/2013 5.63% 9.22%
+ CFFC 08/02/2012 City Holding Company (CHCO) All Stock $26.1 million $5.89 $5.60 31,003 03/31/2013 5.15% 8.43%
+ PSOF 05/17/2012 Timesway Group Limited (N/A) All Cash N $4.15 $3.97 3,900 09/30/2012 4.53% 40.36%
+ CTFO 06/08/2012 TransCloud Company Limited (N/A) All Cash $146.6 million $5.80 $5.55 52,216 09/30/2012 4.50% 40.10%
+ BIDZ 05/17/2012 Glendon Group, Inc. (N/A) All Cash N/A $0.78 $0.75 3,334 12/31/2012 4.00% 10.98%
+ FSBI 07/19/2012 WesBanco Inc. (WSBC) Cash Plus Stock $70.8 million $21.60 $20.96 1,700 03/31/2013 3.07% 5.03%
+ ALTH 04/05/2012 Spectrum Pharmaceuticals (SPPI) All Cash $206 million $1.82 $1.77 609,741 08/20/2012 2.82% 0.00%
+ NEBS 05/31/2012 United Financial Bancorp, Inc. (UBNK) All Stock $91.0 million $13.59 $13.22 803 12/31/2012 2.78% 7.62%
+ SAVB 08/08/2012 SCBT Financial Corporation (SCBT) All Stock $67.1 million $9.78 $9.52 16,468 12/31/2012 2.78% 7.62%
+ CSBC 05/14/2012 Park Sterling Corporation (PSTB) All Stock $77.8 million $7.19 $7.00 24,757 12/31/2012 2.75% 7.54%
+ INCB 01/25/2012 Old National Bancorp Capital (ONB) All Stock $79.2 million $24.93 $24.28 2,279 09/30/2012 2.67% 23.76%
+ AGP 07/09/2012 WellPoint Inc. (WLP) All Cash $4.9 billion $92.00 $89.97 1,187,013 03/31/2013 2.26% 3.69%
+ BFED 05/31/2012 Berkshire Hills Bancorp Inc. (BHLB) All Stock $132 million $20.42 $20.11 36,376 12/31/2012 1.56% 4.29%
+ BTFG 05/29/2012 Trustmark Corporation (TRMK) All Stock $55.4 million $3.05 $3.00 38,012 12/31/2012 1.54% 4.23%
+ GEOY 07/23/2012 DigitalGlobe, Inc. (DGI) Cash Plus Stock $900 million $27.99 $27.58 173,496 03/31/2013 1.48% 2.42%
+ SUN 04/30/2012 Energy Transfer Partners, L.P. (ETP) Cash Plus Stock $5.3 billion $47.95 $47.41 679,058 12/31/2012 1.13% 3.11%
+ GEN 07/23/2012 NRG Energy, Inc. (NRG) All Stock $1.7 billion $2.62 $2.59 16,119,030 03/31/2013 1.13% 1.85%
+ ARBA 05/22/2012 SAP AG (SAP) All Cash $4.3 billion $45.00 $44.50 857,287 09/30/2012 1.12% 10.00%
+ CBE 05/21/2012 Eaton Corporation (ETN) Cash Plus Stock $11.46 billion $75.07 $74.31 944,225 12/31/2012 1.02% 2.80%
+ EDGR 05/22/2012 R.R. Donnelley & Sons Company (RRD) All Cash $70.5 million $1.09 $1.08 N/A 09/30/2012 0.93% 8.24%
+ TUDO 03/12/2012 Youku Inc. (YOKU) All Stock $1 billion $29.54 $29.30 13,495 09/30/2012 0.82% 7.27%
+ NWK 06/19/2012 Sonus Networks, Inc. (SONS) All Cash $42 million $1.35 $1.34 18,215 09/30/2012 0.75% 6.64%
+ NEI 06/19/2012 UNICOM Systems (N/A) All Cash $63.2 million $1.45 $1.44 57,171 09/30/2012 0.69% 6.18%
+ KCP 06/06/2012 Kenneth D. Cole, Chairman and Chief Creative Officer of the Company (N/A) All Cash $245 million $15.25 $15.15 29,346 09/30/2012 0.66% 5.88%
+ CEBK 05/01/2012 Independent Bank Corp. (INDB) All Cash $54.8 million $32.00 $31.80 198 12/31/2012 0.63% 1.73%
+ SUNH 06/20/2012 Genesis HealthCare (N/A) All Cash $275 million $8.50 $8.45 221,393 09/30/2012 0.59% 5.27%
+ PSS 05/01/2012 a consortium comprised of Wolverine Worldwide, Blum Capital Partners and Golden Gate Capital (WWW) All Cash $2 billion $21.75 $21.63 555,263 10/31/2012 0.55% 2.81%
+ EF 04/16/2012 Lee Equity Partners, LLC (N/A) All Cash $258 million $8.85 $8.81 136,127 09/30/2012 0.45% 4.04%
+ CELL 07/02/2012 Ingram Micro Inc. (IM) All Cash $840 million $9.00 $8.96 550,143 12/31/2012 0.45% 1.23%
+ PCBC 03/12/2012 UnionBanCal Corp. (N/A) All Cash $1.51 billion $46.00 $45.82 19,380 12/31/2012 0.39% 1.08%
+ USHS 08/07/2012 The Home Depot (HD) All Cash $93.4 million $12.50 $12.46 31,125 12/31/2012 0.32% 0.88%
+ RA 07/23/2012 Genesee & Wyoming Inc. (GWR) All Cash $1.39 billion $27.50 $27.43 81,697 09/30/2012 0.26% 2.27%
+ CONM 07/16/2012 Correct Care Solutions, LLC (N/A) All Cash $59 million $3.95 $3.94 10,300 09/30/2012 0.25% 2.26%
+ QSFT 07/02/2012 Dell Inc. (DELL) All Cash $2.4 billion $28.00 $27.94 455,883 09/30/2012 0.21% 1.91%
+ FSII 08/13/2012 Tokyo Electron (N/A) All Cash $252.5 million $6.20 $6.19 938,315 12/31/2012 0.16% 0.44%
+ BNHN 05/22/2012 Angelo, Gordon & Co. (N/A) All Cash $296 million $16.30 $16.28 39,271 12/31/2012 0.12% 0.34%
+ IBI 05/29/2012 GS Capital Partners LP and P2 Capital Partners, LLC (N/A) All Cash $1.1 billion $25.50 $25.47 69,629 09/30/2012 0.12% 1.05%
+ PLFE 07/13/2012 Athene Annuity (N/A) All Cash $415 million $14.00 $13.99 31,404 12/31/2012 0.07% 0.20%
+ INMD 06/11/2012 Sagard Capital Partners, L.P. (N/A) All Cash $169.5 million $14.05 $14.04 22,786 11/15/2012 0.07% 0.30%
+ ELT 06/29/2012 Melrose PLC (N/A) All Cash $2.3 billion $20.50 $20.49 530,759 09/30/2012 0.05% 0.43%
+ CRED 06/04/2012 Forestar Group Inc. (FOR) All Cash $146 million $14.50 $14.50 14,628 12/31/2012 0.00% 0.00%
+ PRX 07/16/2012 an affiliate of TPG (N/A) All Cash $1.9 billion $50.00 $50.02 486,400 12/31/2012 -0.04% -0.11%
+ FX 07/09/2012 Thomson Reuters Corporation (TRI) All Cash $625 million $22.00 $22.01 74,067 09/30/2012 -0.05% -0.40%
+ RBN 08/09/2012 National Oilwell Varco, Inc. (NOV) All Cash $2.5 billion $60.00 $60.07 480,250 12/31/2012 -0.12% -0.32%
+ CHG 02/21/2012 Fortis Inc. (N/A) All Cash $1.5 billion $65.00 $65.28 21,344 03/31/2013 -0.43% -0.70%
+ PEET 07/23/2012 Joh. A. Benckiser (N/A) All Cash $1 billion $73.50 $73.86 94,821 10/31/2012 -0.49% -2.47%
+ XG 06/18/2012 Yamana Gold, Inc. (AUY) Cash Plus Stock $414 million $4.22 $4.25 88,590 09/30/2012 -0.69% -6.16%
+ JAX 06/25/2012 Fidelity National Financial, Inc. (FNF) All Cash $78 million $13.00 $13.12 38,820 12/31/2012 -0.91% -2.51%
+ FACE 08/13/2012 Swander Pace Capital (N/A) All Cash $65 million $4.25 $4.30 62,769 12/31/2012 -1.16% -3.19%
+ AUTH 07/27/2012 Apple Inc. (AAPL) All Cash $356 million $8.00 $8.11 402,615 12/31/2069 -1.36% -0.02%
+ TARO 08/13/2012 Sun Pharmaceutical (N/A) All Cash $1.45 billion $39.50 $40.40 8,837 12/31/2012 -2.23% -6.11%
+ BXG 11/14/2011 BFC Financial Corporation (BFCF) All Stock N/A $5.60 $5.96 18,795 06/30/2012 -6.04% 43.23%
+ SCMF 03/27/2012 Capital Bank Financial Corp (N/A) All Cash N/A $2.88 $3.18 20,543 09/30/2012 -9.43% -83.99%
+ WAVE 08/02/2012 AT&T, Inc. (T) All Cash $600 million $1.00 $1.18 11,510 12/31/2069 -15.25% -0.27%

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