Merger Arbitrage Mondays – October 1, 2012

Merger activity increased last week with five new deals announced and four 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 132
Total Number of Deals Not Completed in 2012 1
Total Number of Pending Deals
Cash Deals 47
Stock Deals 16
Stock & Cash Deals 8
Total Number of Pending Deals 71
Total Deal Size $486.6 billion

New Deals:

  1. The acquisition of LML Payment Systems (LMLP) by Digital River (DRIV) for $102.8 million or $3.45 per share in cash.
  2. The acquisition of Union Drilling (UDRL) by Sidewinder Drilling for $242 million or $6.50 per share in cash.
  3. The acquisition of ECB Bancorp (ECBE) by Crescent Financial Bancshares (CRFN) for $51.6 million in all stock deal. ECB shareholders will receive 3.55 shares of Crescent Financial.
  4. The acquisition of West Coast Bancorp (WCBO) by Columbia Banking System (COLB) for $506 million. Under the terms of the merger agreement West Coast shareholders can elect to receive either Columbia common stock, cash, or a combination of both stock and cash. The total cash considering is fixed at $264.5 million and the total stock consideration is fixed at 12.8 million Columbia shares. Based on Columbia’s closing stock price of $18.85 on September 25, West Coast shareholders would have received consideration valued at approximately $23.10 per share. We are going to treat this as an all stock deal with shareholders of West Coast receiving 1.225 shares of Columbia for each West Coast share they hold.
  5. The acquisition of Sealy Corporation (ZZ) by Tempur Pedic International (TPX) for $1.3 billion (including debt) or $2.20 per share in cash.

Closed Deals:

  1. The acquisition of Kenneth Cole Productions (KCP) by Kenneth D. Cole, Chairman and Chief Creative Officer of the Company on September 26, 2012.
  2. The acquisition of Quest Software (QSFT) by Dell Inc. (DELL) on September 28, 2012.
  3. The acquisition of Par Pharmaceutical Companies Inc. (PRX) by an affiliate of TPG on September 28, 2012.
  4. The acquisition of Credo Petroleum Corp. (CRED) by Forestar Group Inc. (FOR) on September 28, 2012.

Top 10 deals with largest spreads:

Symbol Announced

Date

Acquiring

Company

Closing

Price

Last

Price

Closing

Date

Profit Annualized

Profit

PLXT 04/30/2012 Integrated Device Technology, Inc. (IDTI) $6.58 $5.75 10/04/2012 14.47% 1759.93%
WSB 09/10/2012 Old Line Bancshares, Inc. (OLBK) $6.17 $5.65 06/30/2013 9.28% 12.46%
NXY 07/23/2012 CNOOC Ltd. (CEO) $27.50 $25.34 12/31/2012 8.52% 34.19%
SHAW 07/30/2012 Chicago Bridge & Iron Company (CBI) $45.91 $43.62 03/31/2013 5.24% 10.57%
VQ 01/16/2012 Denver Parent Corporation (N/A) $12.50 $11.88 10/05/2012 5.22% 476.22%
CFFC 08/02/2012 City Holding Company (CHCO) $6.28 $5.99 03/31/2013 4.89% 9.86%
FSIN 06/28/2012 Chairman and Co-Chief Executive Officer, Mr. Li Fu, and Abax Global Capital (Hong Kong) Limited (N/A) $9.50 $9.09 12/31/2012 4.51% 18.09%
CSBC 05/14/2012 Park Sterling Corporation (PSTB) $7.31 $7.00 12/31/2012 4.44% 17.80%
ECBE 09/25/2012 Crescent Financial Bancshares, Inc. (CRFN) $16.15 $15.50 03/31/2013 4.21% 8.49%
CRBC 09/13/2012 FirstMerit Corporation (FMER) $20.15 $19.35 06/30/2013 4.15% 5.57%

List of all pending deals:

The list of all pending deals is only available to InsideArbitrage Premium members.


Symbol Announced

Date

Acquiring

Company

Deal

Type

Closing

Value

Closing

Price

Last

Price

Volume Closing

Date

Profit Annu.

Profit

+ PLXT 04/30/2012 Integrated Device Technology, Inc. (IDTI) Cash Plus Stock $330 million $6.58 $5.75 178,361 10/04/2012 14.47% 1759.93%
+ WSB 09/10/2012 Old Line Bancshares, Inc. (OLBK) All Stock $49 million $6.17 $5.65 8,550 06/30/2013 9.28% 12.46%
+ NXY 07/23/2012 CNOOC Ltd. (CEO) All Cash $15.1 billion $27.50 $25.34 6,254,895 12/31/2012 8.52% 34.19%
+ SHAW 07/30/2012 Chicago Bridge & Iron Company (CBI) Cash Plus Stock $3 billion $45.91 $43.62 404,674 03/31/2013 5.24% 10.57%
+ VQ 01/16/2012 Denver Parent Corporation (N/A) All Cash $1.5 billion $12.50 $11.88 530,318 10/05/2012 5.22% 476.22%
+ CFFC 08/02/2012 City Holding Company (CHCO) All Stock $26.1 million $6.28 $5.99 1,000 03/31/2013 4.89% 9.86%
+ 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 $9.09 297,519 12/31/2012 4.51% 18.09%
+ CSBC 05/14/2012 Park Sterling Corporation (PSTB) All Stock $77.8 million $7.31 $7.00 38,746 12/31/2012 4.44% 17.80%
+ ECBE 09/25/2012 Crescent Financial Bancshares, Inc. (CRFN) All Stock $51.6 million $16.15 $15.50 11,543 03/31/2013 4.21% 8.49%
+ CRBC 09/13/2012 FirstMerit Corporation (FMER) All Stock $912 million $20.15 $19.35 485,561 06/30/2013 4.15% 5.57%
+ YTEC 08/13/2012 New Sihitech Limited (N/A) All Cash $79.5 million $3.90 $3.75 18,815 12/31/2012 4.00% 16.04%
+ GEOY 07/23/2012 DigitalGlobe, Inc. (DGI) Cash Plus Stock $900 million $27.28 $26.43 237,098 03/31/2013 3.23% 6.51%
+ GEN 07/23/2012 NRG Energy, Inc. (NRG) All Stock $1.7 billion $2.60 $2.53 9,936,412 03/31/2013 2.81% 5.66%
+ WWIN 07/24/2012 Winner Holding Limited (N/A) All Cash N/A $4.50 $4.39 131,141 03/31/2013 2.51% 5.05%
+ CVH 08/20/2012 Aetna Inc. (AET) Cash Plus Stock $7.3 billion $42.68 $41.69 2,330,062 06/30/2013 2.39% 3.20%
+ BFED 05/31/2012 Berkshire Hills Bancorp Inc. (BHLB) All Stock $132 million $21.05 $20.56 3,112 12/31/2012 2.38% 9.55%
+ DITC 09/18/2012 Nuance Communications, Inc. (NUAN) All Cash $22.5 million $1.45 $1.42 2,922,443 12/31/2012 2.11% 8.47%
+ BTFG 05/29/2012 Trustmark Corporation (TRMK) All Stock $55.4 million $3.04 $2.98 4,429 12/31/2012 2.10% 8.41%
+ GU 06/04/2012 Trillion Energy Holdings Limited And Trillion Energy Investments Holdings Limited (N/A) All Cash N/A $1.62 $1.59 1,200 09/30/2012 1.89% 0.00%
+ MRX 09/03/2012 Valeant Pharmaceuticals International, Inc. (VRX) All Cash $2.6 billion $44.00 $43.27 1,188,473 06/30/2013 1.69% 2.26%
+ PRST 08/23/2012 MAI Holdings, Inc., an entity affiliated with American Industrial Partners Capital Fund IV, L.P. (N/A) All Cash N/A $0.50 $0.492 36,956 12/31/2012 1.63% 6.52%
+ SRZ 08/22/2012 Health Care REIT, Inc. (HCN) All Cash $845 million $14.50 $14.27 570,799 06/30/2013 1.61% 2.16%
+ FSBI 07/19/2012 WesBanco Inc. (WSBC) Cash Plus Stock $70.8 million $21.64 $21.30 N/A 03/31/2013 1.58% 3.20%
+ LMLP 09/24/2012 Digital River, Inc. (DRIV) All Cash $102.8 million $3.45 $3.40 462,577 03/31/2013 1.47% 2.97%
+ GNOM 09/17/2012 BGI-Shenzhen (N/A) All Cash $117.6 million $3.15 $3.105 813,631 03/31/2013 1.45% 2.92%
+ NEBS 05/31/2012 United Financial Bancorp, Inc. (UBNK) All Stock $91.0 million $13.86 $13.69 11,344 12/31/2012 1.21% 4.84%
+ BIDZ 05/17/2012 Glendon Group, Inc. (N/A) All Cash N/A $0.78 $0.771 45,858 12/31/2012 1.17% 4.68%
+ SUN 04/30/2012 Energy Transfer Partners, L.P. (ETP) Cash Plus Stock $5.3 billion $47.33 $46.83 3,077,353 12/31/2012 1.06% 4.27%
+ CTFO 06/08/2012 TransCloud Company Limited (N/A) All Cash $146.6 million $5.80 $5.74 24,410 09/30/2012 1.05% 0.00%
+ SBX 08/28/2012 Enstar Group Limited (ESGR) All Cash $249 million $11.11 $11.00 330,575 03/31/2013 1.00% 2.02%
+ CBE 05/21/2012 Eaton Corporation (ETN) Cash Plus Stock $11.46 billion $75.77 $75.06 894,770 12/31/2012 0.95% 3.82%
+ ZZ 09/27/2012 Tempur-Pedic International Inc. (TPX) All Cash $1.3 billion $2.20 $2.18 5,568,523 06/30/2013 0.92% 1.23%
+ WCBO 09/26/2012 Columbia Banking System, Inc. (COLB) All Stock $506 million $22.71 $22.52 247,382 03/31/2013 0.85% 1.71%
+ SAVB 08/08/2012 SCBT Financial Corporation (SCBT) All Stock $67.1 million $10.08 $10.00 8,185 12/31/2012 0.82% 3.29%
+ RBN 08/09/2012 National Oilwell Varco, Inc. (NOV) All Cash $2.5 billion $60.00 $59.60 518,347 12/31/2012 0.67% 2.69%
+ DTG 08/27/2012 Hertz Global Holdings, Inc. (HTZ) All Cash $2.3 billion $87.50 $86.93 474,410 03/31/2013 0.66% 1.32%
+ RMTR 09/19/2012 Cypress Semiconductor Corporation (CY) All Cash $109.8 million $3.10 $3.08 346,649 12/31/2012 0.65% 2.60%
+ HCBK 08/27/2012 M&T Bank Corporation (MTB) All Stock $3.7 billion $8.00 $7.945 8,163,600 03/31/2013 0.65% 1.30%
+ BXG 11/14/2011 BFC Financial Corporation (BFCF) All Stock N/A $6.32 $6.28 10,813 09/30/2012 0.64% 0.00%
+ AGP 07/09/2012 WellPoint Inc. (WLP) All Cash $4.9 billion $92.00 $91.43 862,252 03/31/2013 0.62% 1.26%
+ PLFE 07/13/2012 Athene Annuity (N/A) All Cash $415 million $14.00 $13.93 60,239 12/31/2012 0.50% 2.02%
+ PSOF 05/17/2012 Timesway Group Limited (N/A) All Cash N/A $4.15 $4.13 700 09/30/2012 0.48% 0.00%
+ ARBA 05/22/2012 SAP AG (SAP) All Cash $4.3 billion $45.00 $44.80 2,587,069 12/31/2012 0.45% 1.79%
+ SUNH 06/20/2012 Genesis HealthCare (N/A) All Cash $275 million $8.50 $8.465 171,110 09/30/2012 0.41% 0.00%
+ MEDW 09/12/2012 Thoma Bravo, LLC (N/A) All Cash $195 million $22.00 $21.91 61,387 12/31/2012 0.41% 1.65%
+ KSW 09/10/2012 Related Companies (N/A) All Cash $32.1 million $5.00 $4.98 19,149 10/26/2012 0.40% 5.86%
+ KNXA 08/27/2012 International Business Machines Corporation (IBM) All Cash $1.3 billion $46.00 $45.83 431,581 12/31/2012 0.37% 1.49%
+ CELL 07/02/2012 Ingram Micro Inc. (IM) All Cash $840 million $9.00 $8.97 330,655 12/31/2012 0.33% 1.34%
+ FSII 08/13/2012 Tokyo Electron (N/A) All Cash $252.5 million $6.20 $6.185 225,441 12/31/2012 0.24% 0.97%
+ USHS 08/07/2012 The Home Depot (HD) All Cash $93.4 million $12.50 $12.47 6,775 12/31/2012 0.24% 0.96%
+ PEET 07/23/2012 Joh. A. Benckiser (N/A) All Cash $1 billion $73.50 $73.34 470,895 10/31/2012 0.22% 2.65%
+ PCBC 03/12/2012 UnionBanCal Corp. (N/A) All Cash $1.51 billion $46.00 $45.90 13,449 12/31/2012 0.22% 0.87%
+ PSS 05/01/2012 a consortium comprised of Wolverine Worldwide, Blum Capital Partners and Golden Gate Capital (WWW) All Cash $2 billion $21.75 $21.71 589,578 10/31/2012 0.18% 2.24%
+ UDRL 09/25/2012 Sidewinder Drilling Inc. (N/A) All Cash $242 million $6.50 $6.49 230,391 12/31/2012 0.15% 0.62%
+ RA 07/23/2012 Genesee & Wyoming Inc. (GWR) All Cash $1.39 billion $27.50 $27.47 141,738 09/30/2012 0.11% 0.00%
+ ARCT 09/06/2012 Realty Income Corp. (O) All Stock $2.95 billion $11.75 $11.74 1,305,125 03/31/2013 0.10% 0.20%
+ IRIS 09/17/2012 Danaher Corporation (DHR) All Cash $340.9 million $19.50 $19.52 127,551 12/31/2012 -0.10% -0.41%
+ PROJ 08/27/2012 Thoma Bravo Buying Software Co. (N/A) All Cash $1.1 billion $13.00 $13.02 25,066 12/31/2012 -0.15% -0.62%
+ AUTH 07/27/2012 Apple Inc. (AAPL) All Cash $356 million $8.00 $8.015 789,018 12/31/2069 -0.19% -0.00%
+ CHG 02/21/2012 Fortis Inc. (N/A) All Cash $1.5 billion $65.00 $65.21 53,398 03/31/2013 -0.32% -0.65%
+ FSR 08/30/2012 Validus Holdings, Ltd. (VR) Cash Plus Stock $600 million $8.56 $8.59 249,546 12/31/2012 -0.33% -1.33%
+ WLBC 08/17/2012 Western Alliance Bancorporation (WAL) All Cash $55 million $4.02 $4.07 16,527 12/31/2012 -1.23% -4.93%
+ CEBK 05/01/2012 Independent Bank Corp. (INDB) All Cash $54.8 million $32.00 $32.40 3,550 12/31/2012 -1.23% -4.95%
+ TPCG 08/27/2012 First Reserve Corporation and SK Capital Partners (N/A) All Cash $850 million $40.00 $40.81 96,379 12/31/2012 -1.98% -7.96%
+ ABVA 05/03/2012 Washington First Bankshares (WFBI) All Stock $24.4 million $4.44 $4.53 588 12/31/2012 -2.00% -8.02%
+ VRTA 05/31/2012 Vestin Realty Mortgage II, Inc. (VRTB) All Stock N/A $1.26 $1.36 100 12/31/2012 -7.15% -28.67%
+ JAX 06/25/2012 Fidelity National Financial, Inc. (FNF) All Cash $78 million $13.00 $14.47 1,342 12/31/2012 -10.16% -40.75%
+ FACE 08/13/2012 Swander Pace Capital (N/A) All Cash $65 million $4.25 $4.87 305,821 12/31/2012 -12.73% -51.06%
+ TARO 08/13/2012 Sun Pharmaceutical (N/A) All Cash $1.45 billion $39.50 $45.69 8,747 12/31/2012 -13.55% -54.34%
+ SCMF 03/27/2012 Capital Bank Financial Corp (N/A) All Cash N/A $2.88 $3.37 108,399 09/30/2012 -14.54% 5307.12%
+ WAVE 08/02/2012 AT&T, Inc. (T) All Cash $600 million $1.00 $1.21 13,117 12/31/2069 -17.36% -0.30%

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