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Merger Arbitrage Mondays – August 6, 2012

  • 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 2012107
Total Number of Deals Not Completed in 20121
Total Number of Pending Deals
Cash Deals45
Stock Deals10
Stock & Cash Deals7
Total Number of Pending Deals62
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:

SymbolAnnounced

Date

Acquiring

Company

Closing

Price

Last

Price

Closing

Date

ProfitAnnualized

Profit

VQ01/16/2012Denver Parent Corporation (N/A)$12.50$8.9308/31/201239.98%583.67%
SHAW07/30/2012Chicago Bridge & Iron Company (CBI)$45.69$39.4703/31/201315.77%24.29%
PLXT04/30/2012Integrated Device Technology, Inc. (IDTI)$6.17$5.47508/09/201212.64%1537.78%
GU06/04/2012Trillion Energy Holdings Limited And Trillion Energy Investments Holdings Limited (N/A)$1.62$1.4809/30/20129.46%62.78%
NXY07/23/2012CNOOC Ltd. (CEO)$27.50$25.5912/31/20127.46%18.53%
FSIN06/28/2012Chairman and Co-Chief Executive Officer, Mr. Li Fu, and Abax Global Capital (Hong Kong) Limited (N/A)$9.50$8.9012/31/20126.74%16.74%
PSOF05/17/2012Timesway Group Limited (N/A)$4.15$3.9209/30/20125.87%38.94%
WWIN07/24/2012Winner Holding Limited (N/A)$4.50$4.2603/31/20135.63%8.68%
CTFO06/08/2012TransCloud Company Limited (N/A)$5.80$5.5709/30/20124.13%27.40%
BIDZ05/17/2012Glendon Group, Inc. (N/A)$0.78$0.7512/31/20124.00%9.93%

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$8.93253,09708/31/201239.98%583.67%
+SHAW07/30/2012Chicago Bridge & Iron Company (CBI)Cash Plus Stock$3 billion$45.69$39.471,659,28403/31/201315.77%24.29%
+PLXT04/30/2012Integrated Device Technology, Inc. (IDTI)Cash Plus Stock$330 million$6.17$5.475632,96008/09/201212.64%1537.78%
+GU06/04/2012Trillion Energy Holdings Limited And Trillion Energy Investments Holdings Limited (N/A)All CashN/A$1.62$1.4873,35809/30/20129.46%62.78%
+NXY07/23/2012CNOOC Ltd. (CEO)All Cash$15.1 billion$27.50$25.597,601,88512/31/20127.46%18.53%
+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$8.90169,97012/31/20126.74%16.74%
+PSOF05/17/2012Timesway Group Limited (N/A)All CashN$4.15$3.92N/A09/30/20125.87%38.94%
+WWIN07/24/2012Winner Holding Limited (N/A)All CashN/A$4.50$4.2689,79703/31/20135.63%8.68%
+CTFO06/08/2012TransCloud Company Limited (N/A)All Cash$146.6 million$5.80$5.5752,85309/30/20124.13%27.40%
+BIDZ05/17/2012Glendon Group, Inc. (N/A)All CashN/A$0.78$0.7513,20012/31/20124.00%9.93%
+BTFG05/29/2012Trustmark Corporation (TRMK)All Stock$55.4 million$3.06$2.9421,12612/31/20123.95%9.82%
+FSBI07/19/2012WesBanco Inc. (WSBC)Cash Plus Stock$70.8 million$21.74$21.00102,58403/31/20133.51%5.40%
+ABVA05/03/2012Washington First Bankshares (WFBI)All Stock$24.4 million$4.48$4.3430012/31/20123.21%7.97%
+INCB01/25/2012Old National Bancorp Capital (ONB)All Stock$79.2 million$23.41$22.788,09009/30/20122.76%18.30%
+BFED05/31/2012Berkshire Hills Bancorp Inc. (BHLB)All Stock$132 million$20.74$20.192,94512/31/20122.71%6.72%
+TUDO03/12/2012Youku Inc. (YOKU)All Stock$1 billion$26.11$25.43155,95409/30/20122.67%17.75%
+GEN07/23/2012NRG Energy, Inc. (NRG)All Stock$1.7 billion$2.36$2.307,325,02603/31/20132.62%4.03%
+GEOY07/23/2012DigitalGlobe, Inc. (DGI)Cash Plus Stock$900 million$25.32$24.68274,91803/31/20132.58%3.97%
+KCP06/06/2012Kenneth D. Cole, Chairman and Chief Creative Officer of the Company (N/A)All Cash$245 million$15.25$14.90133,24009/30/20122.35%15.59%
+ALTH04/05/2012Spectrum Pharmaceuticals (SPPI)All Cash$206 million$1.82$1.781,521,80408/06/20122.25%0.00%
+NEI06/19/2012UNICOM Systems (N/A)All Cash$63.2 million$1.45$1.4295,49209/30/20122.11%14.02%
+AGP07/09/2012WellPoint Inc. (WLP)All Cash$4.9 billion$92.00$90.111,059,96603/31/20132.10%3.23%
+EF04/16/2012Lee Equity Partners, LLC (N/A)All Cash$258 million$8.85$8.68266,00009/30/20121.96%13.00%
+SUNH06/20/2012Genesis HealthCare (N/A)All Cash$275 million$8.50$8.35450,55509/30/20121.80%11.92%
+NEBS05/31/2012United Financial Bancorp, Inc. (UBNK)All Stock$91.0 million$13.41$13.1870012/31/20121.71%4.24%
+CBE05/21/2012Eaton Corporation (ETN)Cash Plus Stock$11.46 billion$73.42$72.492,319,53912/31/20121.28%3.18%
+CEBK05/01/2012Independent Bank Corp. (INDB)All Cash$54.8 million$32.00$31.61N/A12/31/20121.23%3.06%
+XG06/18/2012Yamana Gold, Inc. (AUY)Cash Plus Stock$414 million$4.19$4.14235,77209/30/20121.21%8.05%
+VRTA05/31/2012Vestin Realty Mortgage II, Inc. (VRTB)All StockN/A$0.96$0.95016,72012/31/20120.99%2.46%
+ARBA05/22/2012SAP AG (SAP)All Cash$4.3 billion$45.00$44.58906,94209/30/20120.94%6.25%
+EDGR05/22/2012R.R. Donnelley & Sons Company (RRD)All Cash$70.5 million$1.09$1.0815,64409/30/20120.93%6.14%
+PSS05/01/2012a consortium comprised of Wolverine Worldwide, Blum Capital Partners and Golden Gate Capital (WWW)All Cash$2 billion$21.75$21.57962,75510/31/20120.83%3.54%
+INMD06/11/2012Sagard Capital Partners, L.P. (N/A)All Cash$169.5 million$14.05$13.9430,70611/15/20120.79%2.85%
+CONM07/16/2012Correct Care Solutions, LLC (N/A)All Cash$59 million$3.95$3.9215,20009/30/20120.77%5.08%
+NWK06/19/2012Sonus Networks, Inc. (SONS)All Cash$42 million$1.35$1.34291,49509/30/20120.75%4.95%
+PLFE07/13/2012Athene Annuity (N/A)All Cash$415 million$14.00$13.92109,41512/31/20120.57%1.43%
+PCBC03/12/2012UnionBanCal Corp. (N/A)All Cash$1.51 billion$46.00$45.7836,74112/31/20120.48%1.19%
+SUN04/30/2012Energy Transfer Partners, L.P. (ETP)Cash Plus Stock$5.3 billion$47.82$47.591,295,40412/31/20120.47%1.18%
+CELL07/02/2012Ingram Micro Inc. (IM)All Cash$840 million$9.00$8.97450,19212/31/20120.33%0.83%
+IBI05/29/2012GS Capital Partners LP and P2 Capital Partners, LLC (N/A)All Cash$1.1 billion$25.50$25.42163,82509/30/20120.31%2.09%
+BNHN05/22/2012Angelo, Gordon & Co. (N/A)All Cash$296 million$16.30$16.2579,19112/31/20120.31%0.76%
+QSFT07/02/2012Dell Inc. (DELL)All Cash$2.4 billion$28.00$27.921,118,12409/30/20120.29%1.90%
+CRED06/04/2012Forestar Group Inc. (FOR)All Cash$146 million$14.50$14.4642,62912/31/20120.28%0.69%
+AMLN06/29/2012Bristol-Myers Squibb Company (BMY)All Cash$7 billion$31.00$30.953,243,89209/30/20120.16%1.07%
+BOOT07/05/2012ABC-MART, INC. (N/A)All Cash$138 million$20.00$19.9713,35509/30/20120.15%1.00%
+RA07/23/2012Genesee & Wyoming Inc. (GWR)All Cash$1.39 billion$27.50$27.46235,82609/30/20120.15%0.97%
+ELT06/29/2012Melrose PLC (N/A)All Cash$2.3 billion$20.50$20.48639,04409/30/20120.10%0.65%
+JAX06/25/2012Fidelity National Financial, Inc. (FNF)All Cash$78 million$13.00$12.9917,75812/31/20120.08%0.19%
+LNCR07/02/2012Linde AG (N/A)All Cash$4.6 billion$41.50$41.471,068,97709/30/20120.07%0.48%
+HGSI07/16/2012GlaxoSmithKline plc (GSK)All Cash$3.6 billion$14.25$14.242,90012/31/20120.07%0.17%
+NOIZ06/10/2012Mercury Computer Systems, Inc. (MRCY)All Cash$75.4 million$14.80$14.809,49409/30/20120.00%0.00%
+FX07/09/2012Thomson Reuters Corporation (TRI)All Cash$625 million$22.00$22.0134,19409/30/2012-0.05%-0.30%
+LCRY05/29/2012Teledyne Technologies Inc. (TDY)All Cash$291 million$14.30$14.31132,08209/30/2012-0.07%-0.46%
+PRX07/16/2012an affiliate of TPG (N/A)All Cash$1.9 billion$50.00$50.08852,95412/31/2012-0.16%-0.40%
+CHG02/21/2012Fortis Inc. (N/A)All Cash$1.5 billion$65.00$65.2544,73003/31/2013-0.38%-0.59%
+BXG11/14/2011BFC Financial Corporation (BFCF)All StockN/A$4.96$4.9925,39706/30/2012-0.60%5.93%
+CSBC05/14/2012Park Sterling Corporation (PSTB)All Stock$77.8 million$6.70$6.7514,62412/31/2012-0.68%-1.69%
+MODL07/03/2012One Equity Partners, the private investment arm of JP Morgan Chase & Co. (N/A)All Cash$1.1 billion$14.00$14.132,451,91209/30/2012-0.92%-6.11%
+PEET07/23/2012Joh. A. Benckiser (N/A)All Cash$1 billion$73.50$74.7094,26610/31/2012-1.61%-6.82%
+AUTH07/27/2012Apple Inc. (AAPL)All Cash$356 million$8.00$8.402,228,14212/31/2069-4.76%-0.08%
+SCMF03/27/2012Capital Bank Financial Corp (N/A)All CashN/A$2.88$3.1420,48109/30/2012-8.28%-54.95%
+WAVE08/02/2012AT&T, Inc. (T)All Cash$600 million$1.00$1.28N/A12/31/2069-21.88%-0.38%