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Merger Arbitrage Mondays – October 1, 2012

  • 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 2012132
Total Number of Deals Not Completed in 20121
Total Number of Pending Deals
Cash Deals47
Stock Deals16
Stock & Cash Deals8
Total Number of Pending Deals71
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:

SymbolAnnounced

Date

Acquiring

Company

Closing

Price

Last

Price

Closing

Date

ProfitAnnualized

Profit

PLXT04/30/2012Integrated Device Technology, Inc. (IDTI)$6.58$5.7510/04/201214.47%1759.93%
WSB09/10/2012Old Line Bancshares, Inc. (OLBK)$6.17$5.6506/30/20139.28%12.46%
NXY07/23/2012CNOOC Ltd. (CEO)$27.50$25.3412/31/20128.52%34.19%
SHAW07/30/2012Chicago Bridge & Iron Company (CBI)$45.91$43.6203/31/20135.24%10.57%
VQ01/16/2012Denver Parent Corporation (N/A)$12.50$11.8810/05/20125.22%476.22%
CFFC08/02/2012City Holding Company (CHCO)$6.28$5.9903/31/20134.89%9.86%
FSIN06/28/2012Chairman and Co-Chief Executive Officer, Mr. Li Fu, and Abax Global Capital (Hong Kong) Limited (N/A)$9.50$9.0912/31/20124.51%18.09%
CSBC05/14/2012Park Sterling Corporation (PSTB)$7.31$7.0012/31/20124.44%17.80%
ECBE09/25/2012Crescent Financial Bancshares, Inc. (CRFN)$16.15$15.5003/31/20134.21%8.49%
CRBC09/13/2012FirstMerit Corporation (FMER)$20.15$19.3506/30/20134.15%5.57%

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

+PLXT04/30/2012Integrated Device Technology, Inc. (IDTI)Cash Plus Stock$330 million$6.58$5.75178,36110/04/201214.47%1759.93%
+WSB09/10/2012Old Line Bancshares, Inc. (OLBK)All Stock$49 million$6.17$5.658,55006/30/20139.28%12.46%
+NXY07/23/2012CNOOC Ltd. (CEO)All Cash$15.1 billion$27.50$25.346,254,89512/31/20128.52%34.19%
+SHAW07/30/2012Chicago Bridge & Iron Company (CBI)Cash Plus Stock$3 billion$45.91$43.62404,67403/31/20135.24%10.57%
+VQ01/16/2012Denver Parent Corporation (N/A)All Cash$1.5 billion$12.50$11.88530,31810/05/20125.22%476.22%
+CFFC08/02/2012City Holding Company (CHCO)All Stock$26.1 million$6.28$5.991,00003/31/20134.89%9.86%
+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$9.09297,51912/31/20124.51%18.09%
+CSBC05/14/2012Park Sterling Corporation (PSTB)All Stock$77.8 million$7.31$7.0038,74612/31/20124.44%17.80%
+ECBE09/25/2012Crescent Financial Bancshares, Inc. (CRFN)All Stock$51.6 million$16.15$15.5011,54303/31/20134.21%8.49%
+CRBC09/13/2012FirstMerit Corporation (FMER)All Stock$912 million$20.15$19.35485,56106/30/20134.15%5.57%
+YTEC08/13/2012New Sihitech Limited (N/A)All Cash$79.5 million$3.90$3.7518,81512/31/20124.00%16.04%
+GEOY07/23/2012DigitalGlobe, Inc. (DGI)Cash Plus Stock$900 million$27.28$26.43237,09803/31/20133.23%6.51%
+GEN07/23/2012NRG Energy, Inc. (NRG)All Stock$1.7 billion$2.60$2.539,936,41203/31/20132.81%5.66%
+WWIN07/24/2012Winner Holding Limited (N/A)All CashN/A$4.50$4.39131,14103/31/20132.51%5.05%
+CVH08/20/2012Aetna Inc. (AET)Cash Plus Stock$7.3 billion$42.68$41.692,330,06206/30/20132.39%3.20%
+BFED05/31/2012Berkshire Hills Bancorp Inc. (BHLB)All Stock$132 million$21.05$20.563,11212/31/20122.38%9.55%
+DITC09/18/2012Nuance Communications, Inc. (NUAN)All Cash$22.5 million$1.45$1.422,922,44312/31/20122.11%8.47%
+BTFG05/29/2012Trustmark Corporation (TRMK)All Stock$55.4 million$3.04$2.984,42912/31/20122.10%8.41%
+GU06/04/2012Trillion Energy Holdings Limited And Trillion Energy Investments Holdings Limited (N/A)All CashN/A$1.62$1.591,20009/30/20121.89%0.00%
+MRX09/03/2012Valeant Pharmaceuticals International, Inc. (VRX)All Cash$2.6 billion$44.00$43.271,188,47306/30/20131.69%2.26%
+PRST08/23/2012MAI Holdings, Inc., an entity affiliated with American Industrial Partners Capital Fund IV, L.P. (N/A)All CashN/A$0.50$0.49236,95612/31/20121.63%6.52%
+SRZ08/22/2012Health Care REIT, Inc. (HCN)All Cash$845 million$14.50$14.27570,79906/30/20131.61%2.16%
+FSBI07/19/2012WesBanco Inc. (WSBC)Cash Plus Stock$70.8 million$21.64$21.30N/A03/31/20131.58%3.20%
+LMLP09/24/2012Digital River, Inc. (DRIV)All Cash$102.8 million$3.45$3.40462,57703/31/20131.47%2.97%
+GNOM09/17/2012BGI-Shenzhen (N/A)All Cash$117.6 million$3.15$3.105813,63103/31/20131.45%2.92%
+NEBS05/31/2012United Financial Bancorp, Inc. (UBNK)All Stock$91.0 million$13.86$13.6911,34412/31/20121.21%4.84%
+BIDZ05/17/2012Glendon Group, Inc. (N/A)All CashN/A$0.78$0.77145,85812/31/20121.17%4.68%
+SUN04/30/2012Energy Transfer Partners, L.P. (ETP)Cash Plus Stock$5.3 billion$47.33$46.833,077,35312/31/20121.06%4.27%
+CTFO06/08/2012TransCloud Company Limited (N/A)All Cash$146.6 million$5.80$5.7424,41009/30/20121.05%0.00%
+SBX08/28/2012Enstar Group Limited (ESGR)All Cash$249 million$11.11$11.00330,57503/31/20131.00%2.02%
+CBE05/21/2012Eaton Corporation (ETN)Cash Plus Stock$11.46 billion$75.77$75.06894,77012/31/20120.95%3.82%
+ZZ09/27/2012Tempur-Pedic International Inc. (TPX)All Cash$1.3 billion$2.20$2.185,568,52306/30/20130.92%1.23%
+WCBO09/26/2012Columbia Banking System, Inc. (COLB)All Stock$506 million$22.71$22.52247,38203/31/20130.85%1.71%
+SAVB08/08/2012SCBT Financial Corporation (SCBT)All Stock$67.1 million$10.08$10.008,18512/31/20120.82%3.29%
+RBN08/09/2012National Oilwell Varco, Inc. (NOV)All Cash$2.5 billion$60.00$59.60518,34712/31/20120.67%2.69%
+DTG08/27/2012Hertz Global Holdings, Inc. (HTZ)All Cash$2.3 billion$87.50$86.93474,41003/31/20130.66%1.32%
+RMTR09/19/2012Cypress Semiconductor Corporation (CY)All Cash$109.8 million$3.10$3.08346,64912/31/20120.65%2.60%
+HCBK08/27/2012M&T Bank Corporation (MTB)All Stock$3.7 billion$8.00$7.9458,163,60003/31/20130.65%1.30%
+BXG11/14/2011BFC Financial Corporation (BFCF)All StockN/A$6.32$6.2810,81309/30/20120.64%0.00%
+AGP07/09/2012WellPoint Inc. (WLP)All Cash$4.9 billion$92.00$91.43862,25203/31/20130.62%1.26%
+PLFE07/13/2012Athene Annuity (N/A)All Cash$415 million$14.00$13.9360,23912/31/20120.50%2.02%
+PSOF05/17/2012Timesway Group Limited (N/A)All CashN/A$4.15$4.1370009/30/20120.48%0.00%
+ARBA05/22/2012SAP AG (SAP)All Cash$4.3 billion$45.00$44.802,587,06912/31/20120.45%1.79%
+SUNH06/20/2012Genesis HealthCare (N/A)All Cash$275 million$8.50$8.465171,11009/30/20120.41%0.00%
+MEDW09/12/2012Thoma Bravo, LLC (N/A)All Cash$195 million$22.00$21.9161,38712/31/20120.41%1.65%
+KSW09/10/2012Related Companies (N/A)All Cash$32.1 million$5.00$4.9819,14910/26/20120.40%5.86%
+KNXA08/27/2012International Business Machines Corporation (IBM)All Cash$1.3 billion$46.00$45.83431,58112/31/20120.37%1.49%
+CELL07/02/2012Ingram Micro Inc. (IM)All Cash$840 million$9.00$8.97330,65512/31/20120.33%1.34%
+FSII08/13/2012Tokyo Electron (N/A)All Cash$252.5 million$6.20$6.185225,44112/31/20120.24%0.97%
+USHS08/07/2012The Home Depot (HD)All Cash$93.4 million$12.50$12.476,77512/31/20120.24%0.96%
+PEET07/23/2012Joh. A. Benckiser (N/A)All Cash$1 billion$73.50$73.34470,89510/31/20120.22%2.65%
+PCBC03/12/2012UnionBanCal Corp. (N/A)All Cash$1.51 billion$46.00$45.9013,44912/31/20120.22%0.87%
+PSS05/01/2012a consortium comprised of Wolverine Worldwide, Blum Capital Partners and Golden Gate Capital (WWW)All Cash$2 billion$21.75$21.71589,57810/31/20120.18%2.24%
+UDRL09/25/2012Sidewinder Drilling Inc. (N/A)All Cash$242 million$6.50$6.49230,39112/31/20120.15%0.62%
+RA07/23/2012Genesee & Wyoming Inc. (GWR)All Cash$1.39 billion$27.50$27.47141,73809/30/20120.11%0.00%
+ARCT09/06/2012Realty Income Corp. (O)All Stock$2.95 billion$11.75$11.741,305,12503/31/20130.10%0.20%
+IRIS09/17/2012Danaher Corporation (DHR)All Cash$340.9 million$19.50$19.52127,55112/31/2012-0.10%-0.41%
+PROJ08/27/2012Thoma Bravo Buying Software Co. (N/A)All Cash$1.1 billion$13.00$13.0225,06612/31/2012-0.15%-0.62%
+AUTH07/27/2012Apple Inc. (AAPL)All Cash$356 million$8.00$8.015789,01812/31/2069-0.19%-0.00%
+CHG02/21/2012Fortis Inc. (N/A)All Cash$1.5 billion$65.00$65.2153,39803/31/2013-0.32%-0.65%
+FSR08/30/2012Validus Holdings, Ltd. (VR)Cash Plus Stock$600 million$8.56$8.59249,54612/31/2012-0.33%-1.33%
+WLBC08/17/2012Western Alliance Bancorporation (WAL)All Cash$55 million$4.02$4.0716,52712/31/2012-1.23%-4.93%
+CEBK05/01/2012Independent Bank Corp. (INDB)All Cash$54.8 million$32.00$32.403,55012/31/2012-1.23%-4.95%
+TPCG08/27/2012First Reserve Corporation and SK Capital Partners (N/A)All Cash$850 million$40.00$40.8196,37912/31/2012-1.98%-7.96%
+ABVA05/03/2012Washington First Bankshares (WFBI)All Stock$24.4 million$4.44$4.5358812/31/2012-2.00%-8.02%
+VRTA05/31/2012Vestin Realty Mortgage II, Inc. (VRTB)All StockN/A$1.26$1.3610012/31/2012-7.15%-28.67%
+JAX06/25/2012Fidelity National Financial, Inc. (FNF)All Cash$78 million$13.00$14.471,34212/31/2012-10.16%-40.75%
+FACE08/13/2012Swander Pace Capital (N/A)All Cash$65 million$4.25$4.87305,82112/31/2012-12.73%-51.06%
+TARO08/13/2012Sun Pharmaceutical (N/A)All Cash$1.45 billion$39.50$45.698,74712/31/2012-13.55%-54.34%
+SCMF03/27/2012Capital Bank Financial Corp (N/A)All CashN/A$2.88$3.37108,39909/30/2012-14.54%5307.12%
+WAVE08/02/2012AT&T, Inc. (T)All Cash$600 million$1.00$1.2113,11712/31/2069-17.36%-0.30%