Merger Arbitrage Mondays – August 6, 2012

Merger activity dropped last week with two new deals announced and seven 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 107
Total Number of Deals Not Completed in 2012 1
Total Number of Pending Deals
Cash Deals 45
Stock Deals 10
Stock & Cash Deals 7
Total Number of Pending Deals 62
Total Deal Size $454.3 billion

New Deals:

  1. The acquisition of Shaw Group (SHAW) by Chicago Bridge & Iron Company (CBI) for $3 billion in a cash plus stock deal. Under the terms of the agreement, Shaw’s shareholders will receive $41.00 in cash and $5.00 in CB&I equity (0.12883 shares based on an agreed upon recent average stock price of $38.81 per share) for each share of Shaw stock at closing. This is a bold acquisition by CBI of a company that is almost as large as itself in terms of enterprise value and larger in terms of revenue. At 15.77% the spread is unusually large and reflects potential concerns about CBI’s ability to raise the capital required to close this deal or about shareholder dissent.
  2. The acquisition of NextWave Wireless (WAVE) by AT&T (T) for $600 million or $1.00 per share in cash.

Updated Deals:

  1. On July 31, 2012, Fidelity National Financial (FNF) amended its previously announced merger agreement and agreed to make an all cash tender offer for all of the shares of J. Alexander’s (JAX) for $13.00 per share in cash.

Closed Deals:

  1. The acquisition of Tii Network Technologies (TIII) by Kelta, Inc. on July 31, 2012.
  2. The acquisition of GeoResources (GEOI) by Halcon Resources (HK) on August 1, 2012.
  3. The acquisition of MEDTOX Scientific (MTOX) by Laboratory Corp. of America Holdings (LH) on August 1, 2012.
  4. The acquisition of Gen-Probe (GPRO) by Hologic (HOLX) on August 1, 2012.
  5. The acquisition of VIST Financial Corp (VIST) by Tompkins Financial Corporation (TMP) on August 1, 2012.
  6. The acquisition of Standard Microsystems (SMSC) by Microchip Technology (MCHP) on August 2, 2012.
  7. The acquisition of The Talbots (TLB) by Sycamore Partners on August 3, 2012.

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 $8.93 08/31/2012 39.98% 583.67%
SHAW 07/30/2012 Chicago Bridge & Iron Company (CBI) $45.69 $39.47 03/31/2013 15.77% 24.29%
PLXT 04/30/2012 Integrated Device Technology, Inc. (IDTI) $6.17 $5.475 08/09/2012 12.64% 1537.78%
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% 62.78%
NXY 07/23/2012 CNOOC Ltd. (CEO) $27.50 $25.59 12/31/2012 7.46% 18.53%
FSIN 06/28/2012 Chairman and Co-Chief Executive Officer, Mr. Li Fu, and Abax Global Capital (Hong Kong) Limited (N/A) $9.50 $8.90 12/31/2012 6.74% 16.74%
PSOF 05/17/2012 Timesway Group Limited (N/A) $4.15 $3.92 09/30/2012 5.87% 38.94%
WWIN 07/24/2012 Winner Holding Limited (N/A) $4.50 $4.26 03/31/2013 5.63% 8.68%
CTFO 06/08/2012 TransCloud Company Limited (N/A) $5.80 $5.57 09/30/2012 4.13% 27.40%
BIDZ 05/17/2012 Glendon Group, Inc. (N/A) $0.78 $0.75 12/31/2012 4.00% 9.93%

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 $8.93 253,097 08/31/2012 39.98% 583.67%
+ SHAW 07/30/2012 Chicago Bridge & Iron Company (CBI) Cash Plus Stock $3 billion $45.69 $39.47 1,659,284 03/31/2013 15.77% 24.29%
+ PLXT 04/30/2012 Integrated Device Technology, Inc. (IDTI) Cash Plus Stock $330 million $6.17 $5.475 632,960 08/09/2012 12.64% 1537.78%
+ GU 06/04/2012 Trillion Energy Holdings Limited And Trillion Energy Investments Holdings Limited (N/A) All Cash N/A $1.62 $1.48 73,358 09/30/2012 9.46% 62.78%
+ NXY 07/23/2012 CNOOC Ltd. (CEO) All Cash $15.1 billion $27.50 $25.59 7,601,885 12/31/2012 7.46% 18.53%
+ 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 $8.90 169,970 12/31/2012 6.74% 16.74%
+ PSOF 05/17/2012 Timesway Group Limited (N/A) All Cash N $4.15 $3.92 N/A 09/30/2012 5.87% 38.94%
+ WWIN 07/24/2012 Winner Holding Limited (N/A) All Cash N/A $4.50 $4.26 89,797 03/31/2013 5.63% 8.68%
+ CTFO 06/08/2012 TransCloud Company Limited (N/A) All Cash $146.6 million $5.80 $5.57 52,853 09/30/2012 4.13% 27.40%
+ BIDZ 05/17/2012 Glendon Group, Inc. (N/A) All Cash N/A $0.78 $0.75 13,200 12/31/2012 4.00% 9.93%
+ BTFG 05/29/2012 Trustmark Corporation (TRMK) All Stock $55.4 million $3.06 $2.94 21,126 12/31/2012 3.95% 9.82%
+ FSBI 07/19/2012 WesBanco Inc. (WSBC) Cash Plus Stock $70.8 million $21.74 $21.00 102,584 03/31/2013 3.51% 5.40%
+ ABVA 05/03/2012 Washington First Bankshares (WFBI) All Stock $24.4 million $4.48 $4.34 300 12/31/2012 3.21% 7.97%
+ INCB 01/25/2012 Old National Bancorp Capital (ONB) All Stock $79.2 million $23.41 $22.78 8,090 09/30/2012 2.76% 18.30%
+ BFED 05/31/2012 Berkshire Hills Bancorp Inc. (BHLB) All Stock $132 million $20.74 $20.19 2,945 12/31/2012 2.71% 6.72%
+ TUDO 03/12/2012 Youku Inc. (YOKU) All Stock $1 billion $26.11 $25.43 155,954 09/30/2012 2.67% 17.75%
+ GEN 07/23/2012 NRG Energy, Inc. (NRG) All Stock $1.7 billion $2.36 $2.30 7,325,026 03/31/2013 2.62% 4.03%
+ GEOY 07/23/2012 DigitalGlobe, Inc. (DGI) Cash Plus Stock $900 million $25.32 $24.68 274,918 03/31/2013 2.58% 3.97%
+ KCP 06/06/2012 Kenneth D. Cole, Chairman and Chief Creative Officer of the Company (N/A) All Cash $245 million $15.25 $14.90 133,240 09/30/2012 2.35% 15.59%
+ ALTH 04/05/2012 Spectrum Pharmaceuticals (SPPI) All Cash $206 million $1.82 $1.78 1,521,804 08/06/2012 2.25% 0.00%
+ NEI 06/19/2012 UNICOM Systems (N/A) All Cash $63.2 million $1.45 $1.42 95,492 09/30/2012 2.11% 14.02%
+ AGP 07/09/2012 WellPoint Inc. (WLP) All Cash $4.9 billion $92.00 $90.11 1,059,966 03/31/2013 2.10% 3.23%
+ EF 04/16/2012 Lee Equity Partners, LLC (N/A) All Cash $258 million $8.85 $8.68 266,000 09/30/2012 1.96% 13.00%
+ SUNH 06/20/2012 Genesis HealthCare (N/A) All Cash $275 million $8.50 $8.35 450,555 09/30/2012 1.80% 11.92%
+ NEBS 05/31/2012 United Financial Bancorp, Inc. (UBNK) All Stock $91.0 million $13.41 $13.18 700 12/31/2012 1.71% 4.24%
+ CBE 05/21/2012 Eaton Corporation (ETN) Cash Plus Stock $11.46 billion $73.42 $72.49 2,319,539 12/31/2012 1.28% 3.18%
+ CEBK 05/01/2012 Independent Bank Corp. (INDB) All Cash $54.8 million $32.00 $31.61 N/A 12/31/2012 1.23% 3.06%
+ XG 06/18/2012 Yamana Gold, Inc. (AUY) Cash Plus Stock $414 million $4.19 $4.14 235,772 09/30/2012 1.21% 8.05%
+ VRTA 05/31/2012 Vestin Realty Mortgage II, Inc. (VRTB) All Stock N/A $0.96 $0.950 16,720 12/31/2012 0.99% 2.46%
+ ARBA 05/22/2012 SAP AG (SAP) All Cash $4.3 billion $45.00 $44.58 906,942 09/30/2012 0.94% 6.25%
+ EDGR 05/22/2012 R.R. Donnelley & Sons Company (RRD) All Cash $70.5 million $1.09 $1.08 15,644 09/30/2012 0.93% 6.14%
+ PSS 05/01/2012 a consortium comprised of Wolverine Worldwide, Blum Capital Partners and Golden Gate Capital (WWW) All Cash $2 billion $21.75 $21.57 962,755 10/31/2012 0.83% 3.54%
+ INMD 06/11/2012 Sagard Capital Partners, L.P. (N/A) All Cash $169.5 million $14.05 $13.94 30,706 11/15/2012 0.79% 2.85%
+ CONM 07/16/2012 Correct Care Solutions, LLC (N/A) All Cash $59 million $3.95 $3.92 15,200 09/30/2012 0.77% 5.08%
+ NWK 06/19/2012 Sonus Networks, Inc. (SONS) All Cash $42 million $1.35 $1.34 291,495 09/30/2012 0.75% 4.95%
+ PLFE 07/13/2012 Athene Annuity (N/A) All Cash $415 million $14.00 $13.92 109,415 12/31/2012 0.57% 1.43%
+ PCBC 03/12/2012 UnionBanCal Corp. (N/A) All Cash $1.51 billion $46.00 $45.78 36,741 12/31/2012 0.48% 1.19%
+ SUN 04/30/2012 Energy Transfer Partners, L.P. (ETP) Cash Plus Stock $5.3 billion $47.82 $47.59 1,295,404 12/31/2012 0.47% 1.18%
+ CELL 07/02/2012 Ingram Micro Inc. (IM) All Cash $840 million $9.00 $8.97 450,192 12/31/2012 0.33% 0.83%
+ IBI 05/29/2012 GS Capital Partners LP and P2 Capital Partners, LLC (N/A) All Cash $1.1 billion $25.50 $25.42 163,825 09/30/2012 0.31% 2.09%
+ BNHN 05/22/2012 Angelo, Gordon & Co. (N/A) All Cash $296 million $16.30 $16.25 79,191 12/31/2012 0.31% 0.76%
+ QSFT 07/02/2012 Dell Inc. (DELL) All Cash $2.4 billion $28.00 $27.92 1,118,124 09/30/2012 0.29% 1.90%
+ CRED 06/04/2012 Forestar Group Inc. (FOR) All Cash $146 million $14.50 $14.46 42,629 12/31/2012 0.28% 0.69%
+ AMLN 06/29/2012 Bristol-Myers Squibb Company (BMY) All Cash $7 billion $31.00 $30.95 3,243,892 09/30/2012 0.16% 1.07%
+ BOOT 07/05/2012 ABC-MART, INC. (N/A) All Cash $138 million $20.00 $19.97 13,355 09/30/2012 0.15% 1.00%
+ RA 07/23/2012 Genesee & Wyoming Inc. (GWR) All Cash $1.39 billion $27.50 $27.46 235,826 09/30/2012 0.15% 0.97%
+ ELT 06/29/2012 Melrose PLC (N/A) All Cash $2.3 billion $20.50 $20.48 639,044 09/30/2012 0.10% 0.65%
+ JAX 06/25/2012 Fidelity National Financial, Inc. (FNF) All Cash $78 million $13.00 $12.99 17,758 12/31/2012 0.08% 0.19%
+ LNCR 07/02/2012 Linde AG (N/A) All Cash $4.6 billion $41.50 $41.47 1,068,977 09/30/2012 0.07% 0.48%
+ HGSI 07/16/2012 GlaxoSmithKline plc (GSK) All Cash $3.6 billion $14.25 $14.24 2,900 12/31/2012 0.07% 0.17%
+ NOIZ 06/10/2012 Mercury Computer Systems, Inc. (MRCY) All Cash $75.4 million $14.80 $14.80 9,494 09/30/2012 0.00% 0.00%
+ FX 07/09/2012 Thomson Reuters Corporation (TRI) All Cash $625 million $22.00 $22.01 34,194 09/30/2012 -0.05% -0.30%
+ LCRY 05/29/2012 Teledyne Technologies Inc. (TDY) All Cash $291 million $14.30 $14.31 132,082 09/30/2012 -0.07% -0.46%
+ PRX 07/16/2012 an affiliate of TPG (N/A) All Cash $1.9 billion $50.00 $50.08 852,954 12/31/2012 -0.16% -0.40%
+ CHG 02/21/2012 Fortis Inc. (N/A) All Cash $1.5 billion $65.00 $65.25 44,730 03/31/2013 -0.38% -0.59%
+ BXG 11/14/2011 BFC Financial Corporation (BFCF) All Stock N/A $4.96 $4.99 25,397 06/30/2012 -0.60% 5.93%
+ CSBC 05/14/2012 Park Sterling Corporation (PSTB) All Stock $77.8 million $6.70 $6.75 14,624 12/31/2012 -0.68% -1.69%
+ MODL 07/03/2012 One Equity Partners, the private investment arm of JP Morgan Chase & Co. (N/A) All Cash $1.1 billion $14.00 $14.13 2,451,912 09/30/2012 -0.92% -6.11%
+ PEET 07/23/2012 Joh. A. Benckiser (N/A) All Cash $1 billion $73.50 $74.70 94,266 10/31/2012 -1.61% -6.82%
+ AUTH 07/27/2012 Apple Inc. (AAPL) All Cash $356 million $8.00 $8.40 2,228,142 12/31/2069 -4.76% -0.08%
+ SCMF 03/27/2012 Capital Bank Financial Corp (N/A) All Cash N/A $2.88 $3.14 20,481 09/30/2012 -8.28% -54.95%
+ WAVE 08/02/2012 AT&T, Inc. (T) All Cash $600 million $1.00 $1.28 N/A 12/31/2069 -21.88% -0.38%

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