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Merger Arbitrage Mondays – August 20, 2012

  • August 19, 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 2012114
Total Number of Deals Not Completed in 20121
Total Number of Pending Deals
Cash Deals44
Stock Deals12
Stock & Cash Deals7
Total Number of Pending Deals63
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:

SymbolAnnounced

Date

Acquiring

Company

Closing

Price

Last

Price

Closing

Date

ProfitAnnualized

Profit

VQ01/16/2012Denver Parent Corporation (N/A)$12.50$10.9208/31/201214.47%480.10%
VRTA05/31/2012Vestin Realty Mortgage II, Inc. (VRTB)$1.06$0.95212/31/201211.11%30.50%
SHAW07/30/2012Chicago Bridge & Iron Company (CBI)$45.85$41.6803/31/201310.00%16.36%
PLXT04/30/2012Integrated Device Technology, Inc. (IDTI)$6.38$5.8108/09/20129.85%-326.82%
ABVA05/03/2012Washington First Bankshares (WFBI)$4.88$4.4712/31/20129.14%25.08%
GU06/04/2012Trillion Energy Holdings Limited And Trillion Energy Investments Holdings Limited (N/A)$1.62$1.4909/30/20128.72%77.67%
YTEC08/13/2012New Sihitech Limited (N/A)$3.90$3.6512/31/20126.85%18.80%
NXY07/23/2012CNOOC Ltd. (CEO)$27.50$25.7512/31/20126.80%18.65%
FSIN06/28/2012Chairman and Co-Chief Executive Officer, Mr. Li Fu, and Abax Global Capital (Hong Kong) Limited (N/A)$9.50$8.9412/31/20126.26%17.19%
WWIN07/24/2012Winner Holding Limited (N/A)$4.50$4.2603/31/20135.63%9.22%

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

+VQ01/16/2012Denver Parent Corporation (N/A)All Cash$1.5 billion$12.50$10.921,709,01608/31/201214.47%480.10%
+VRTA05/31/2012Vestin Realty Mortgage II, Inc. (VRTB)All StockN/A$1.06$0.952N/A12/31/201211.11%30.50%
+SHAW07/30/2012Chicago Bridge & Iron Company (CBI)Cash Plus Stock$3 billion$45.85$41.681,169,92903/31/201310.00%16.36%
+PLXT04/30/2012Integrated Device Technology, Inc. (IDTI)Cash Plus Stock$330 million$6.38$5.81211,22308/09/20129.85%0.00%
+ABVA05/03/2012Washington First Bankshares (WFBI)All Stock$24.4 million$4.88$4.475,80012/31/20129.14%25.08%
+GU06/04/2012Trillion Energy Holdings Limited And Trillion Energy Investments Holdings Limited (N/A)All CashN/A$1.62$1.4921,64809/30/20128.72%77.67%
+YTEC08/13/2012New Sihitech Limited (N/A)All Cash$79.5 million$3.90$3.6524,28812/31/20126.85%18.80%
+NXY07/23/2012CNOOC Ltd. (CEO)All Cash$15.1 billion$27.50$25.754,676,26412/31/20126.80%18.65%
+FSIN06/28/2012Chairman and Co-Chief Executive Officer, Mr. Li Fu, and Abax Global Capital (Hong Kong) Limited (N/A)All CashN/A$9.50$8.94233,24912/31/20126.26%17.19%
+WWIN07/24/2012Winner Holding Limited (N/A)All CashN/A$4.50$4.2632,82103/31/20135.63%9.22%
+CFFC08/02/2012City Holding Company (CHCO)All Stock$26.1 million$5.89$5.6031,00303/31/20135.15%8.43%
+PSOF05/17/2012Timesway Group Limited (N/A)All CashN$4.15$3.973,90009/30/20124.53%40.36%
+CTFO06/08/2012TransCloud Company Limited (N/A)All Cash$146.6 million$5.80$5.5552,21609/30/20124.50%40.10%
+BIDZ05/17/2012Glendon Group, Inc. (N/A)All CashN/A$0.78$0.753,33412/31/20124.00%10.98%
+FSBI07/19/2012WesBanco Inc. (WSBC)Cash Plus Stock$70.8 million$21.60$20.961,70003/31/20133.07%5.03%
+ALTH04/05/2012Spectrum Pharmaceuticals (SPPI)All Cash$206 million$1.82$1.77609,74108/20/20122.82%0.00%
+NEBS05/31/2012United Financial Bancorp, Inc. (UBNK)All Stock$91.0 million$13.59$13.2280312/31/20122.78%7.62%
+SAVB08/08/2012SCBT Financial Corporation (SCBT)All Stock$67.1 million$9.78$9.5216,46812/31/20122.78%7.62%
+CSBC05/14/2012Park Sterling Corporation (PSTB)All Stock$77.8 million$7.19$7.0024,75712/31/20122.75%7.54%
+INCB01/25/2012Old National Bancorp Capital (ONB)All Stock$79.2 million$24.93$24.282,27909/30/20122.67%23.76%
+AGP07/09/2012WellPoint Inc. (WLP)All Cash$4.9 billion$92.00$89.971,187,01303/31/20132.26%3.69%
+BFED05/31/2012Berkshire Hills Bancorp Inc. (BHLB)All Stock$132 million$20.42$20.1136,37612/31/20121.56%4.29%
+BTFG05/29/2012Trustmark Corporation (TRMK)All Stock$55.4 million$3.05$3.0038,01212/31/20121.54%4.23%
+GEOY07/23/2012DigitalGlobe, Inc. (DGI)Cash Plus Stock$900 million$27.99$27.58173,49603/31/20131.48%2.42%
+SUN04/30/2012Energy Transfer Partners, L.P. (ETP)Cash Plus Stock$5.3 billion$47.95$47.41679,05812/31/20121.13%3.11%
+GEN07/23/2012NRG Energy, Inc. (NRG)All Stock$1.7 billion$2.62$2.5916,119,03003/31/20131.13%1.85%
+ARBA05/22/2012SAP AG (SAP)All Cash$4.3 billion$45.00$44.50857,28709/30/20121.12%10.00%
+CBE05/21/2012Eaton Corporation (ETN)Cash Plus Stock$11.46 billion$75.07$74.31944,22512/31/20121.02%2.80%
+EDGR05/22/2012R.R. Donnelley & Sons Company (RRD)All Cash$70.5 million$1.09$1.08N/A09/30/20120.93%8.24%
+TUDO03/12/2012Youku Inc. (YOKU)All Stock$1 billion$29.54$29.3013,49509/30/20120.82%7.27%
+NWK06/19/2012Sonus Networks, Inc. (SONS)All Cash$42 million$1.35$1.3418,21509/30/20120.75%6.64%
+NEI06/19/2012UNICOM Systems (N/A)All Cash$63.2 million$1.45$1.4457,17109/30/20120.69%6.18%
+KCP06/06/2012Kenneth D. Cole, Chairman and Chief Creative Officer of the Company (N/A)All Cash$245 million$15.25$15.1529,34609/30/20120.66%5.88%
+CEBK05/01/2012Independent Bank Corp. (INDB)All Cash$54.8 million$32.00$31.8019812/31/20120.63%1.73%
+SUNH06/20/2012Genesis HealthCare (N/A)All Cash$275 million$8.50$8.45221,39309/30/20120.59%5.27%
+PSS05/01/2012a consortium comprised of Wolverine Worldwide, Blum Capital Partners and Golden Gate Capital (WWW)All Cash$2 billion$21.75$21.63555,26310/31/20120.55%2.81%
+EF04/16/2012Lee Equity Partners, LLC (N/A)All Cash$258 million$8.85$8.81136,12709/30/20120.45%4.04%
+CELL07/02/2012Ingram Micro Inc. (IM)All Cash$840 million$9.00$8.96550,14312/31/20120.45%1.23%
+PCBC03/12/2012UnionBanCal Corp. (N/A)All Cash$1.51 billion$46.00$45.8219,38012/31/20120.39%1.08%
+USHS08/07/2012The Home Depot (HD)All Cash$93.4 million$12.50$12.4631,12512/31/20120.32%0.88%
+RA07/23/2012Genesee & Wyoming Inc. (GWR)All Cash$1.39 billion$27.50$27.4381,69709/30/20120.26%2.27%
+CONM07/16/2012Correct Care Solutions, LLC (N/A)All Cash$59 million$3.95$3.9410,30009/30/20120.25%2.26%
+QSFT07/02/2012Dell Inc. (DELL)All Cash$2.4 billion$28.00$27.94455,88309/30/20120.21%1.91%
+FSII08/13/2012Tokyo Electron (N/A)All Cash$252.5 million$6.20$6.19938,31512/31/20120.16%0.44%
+BNHN05/22/2012Angelo, Gordon & Co. (N/A)All Cash$296 million$16.30$16.2839,27112/31/20120.12%0.34%
+IBI05/29/2012GS Capital Partners LP and P2 Capital Partners, LLC (N/A)All Cash$1.1 billion$25.50$25.4769,62909/30/20120.12%1.05%
+PLFE07/13/2012Athene Annuity (N/A)All Cash$415 million$14.00$13.9931,40412/31/20120.07%0.20%
+INMD06/11/2012Sagard Capital Partners, L.P. (N/A)All Cash$169.5 million$14.05$14.0422,78611/15/20120.07%0.30%
+ELT06/29/2012Melrose PLC (N/A)All Cash$2.3 billion$20.50$20.49530,75909/30/20120.05%0.43%
+CRED06/04/2012Forestar Group Inc. (FOR)All Cash$146 million$14.50$14.5014,62812/31/20120.00%0.00%
+PRX07/16/2012an affiliate of TPG (N/A)All Cash$1.9 billion$50.00$50.02486,40012/31/2012-0.04%-0.11%
+FX07/09/2012Thomson Reuters Corporation (TRI)All Cash$625 million$22.00$22.0174,06709/30/2012-0.05%-0.40%
+RBN08/09/2012National Oilwell Varco, Inc. (NOV)All Cash$2.5 billion$60.00$60.07480,25012/31/2012-0.12%-0.32%
+CHG02/21/2012Fortis Inc. (N/A)All Cash$1.5 billion$65.00$65.2821,34403/31/2013-0.43%-0.70%
+PEET07/23/2012Joh. A. Benckiser (N/A)All Cash$1 billion$73.50$73.8694,82110/31/2012-0.49%-2.47%
+XG06/18/2012Yamana Gold, Inc. (AUY)Cash Plus Stock$414 million$4.22$4.2588,59009/30/2012-0.69%-6.16%
+JAX06/25/2012Fidelity National Financial, Inc. (FNF)All Cash$78 million$13.00$13.1238,82012/31/2012-0.91%-2.51%
+FACE08/13/2012Swander Pace Capital (N/A)All Cash$65 million$4.25$4.3062,76912/31/2012-1.16%-3.19%
+AUTH07/27/2012Apple Inc. (AAPL)All Cash$356 million$8.00$8.11402,61512/31/2069-1.36%-0.02%
+TARO08/13/2012Sun Pharmaceutical (N/A)All Cash$1.45 billion$39.50$40.408,83712/31/2012-2.23%-6.11%
+BXG11/14/2011BFC Financial Corporation (BFCF)All StockN/A$5.60$5.9618,79506/30/2012-6.04%43.23%
+SCMF03/27/2012Capital Bank Financial Corp (N/A)All CashN/A$2.88$3.1820,54309/30/2012-9.43%-83.99%
+WAVE08/02/2012AT&T, Inc. (T)All Cash$600 million$1.00$1.1811,51012/31/2069-15.25%-0.27%