Merger Arbitrage Mondays – October 8, 2012

Merger activity cooled off a little with 3 new deals announced and 5 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 137
Total Number of Deals Not Completed in 2012 1
Total Number of Pending Deals
Cash Deals 46
Stock Deals 15
Stock & Cash Deals 8
Total Number of Pending Deals 69
Total Deal Size $488.35 billion

New Deals:

  1. The acquisition of Ceradyne (CRDN) by 3M Co. (MMM) for $670 million or $35.00 per share in cash.
  2. The acquisition of Versant Corporation (VSNT) by UNICOM Systems Inc. for $32 million or $11.50 per share in cash.
  3. We have not included Deutsche Telekom’s merger of T-Mobile into MetroPCS (PCS) in our database as the merger will create a new entity called T-Mobile through the reverse merger of T-Mobile into MetroPCS. MetroPCS shareholders will receive $1.5 Billion in cash and a 26% stake in the combined company. According to Deutsche Telekom,

“MetroPCS will declare a 1 for 2 reverse stock split, make a cash payment of $1.5 billion to its shareholders (approximately $4.09 per share prior to the reverse stock split) and acquire all of T-Mobile’s capital stock by issuing to Deutsche Telekom 74% of MetroPCS’ common stock on a pro forma basis.”

Sprint (S) is also said to be considering  a rival bid for MetroPCS.

Voluntary Disclosure: I am long Sprint (S).

Updated Deals:

  1. On October 4, 2012, IDT announced extension of exchange offer expiration date in PLX Technology Transaction (PLXT) to November 9, 2012.
  2. Hertz (HTZ) extended its $87.50/share cash tender offer for Dollar Thifty (DTG) to October 22, 2012.

Closed Deals:

  1. The acquisition of Citizens South Banking Corp. (CSBC) by Park Sterling Corporation (PSTB) on October 1, 2012.
  2. The acquisition of RailAmerica, Inc. (RA) by Genesee & Wyoming Inc. (GWR) on October 1, 2012.
  3. The acquisition of Southern Community Financial Corp. (SCMF) by Capital Bank Financial Corp on October 1, 2012.
  4. The acquisition of Venoco (VQ) by the Denver Parent Corporation on October 3, 2012.
  5. The acquisition of AuthenTec (AUTH) by Apple on October 4, 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) $6.56 $5.66 11/09/2012 15.91% 181.52%
ECBE 09/25/2012 Crescent Financial Bancshares, Inc. (CRFN) $16.29 $14.94 03/31/2013 9.07% 19.02%
BIDZ 05/17/2012 Glendon Group, Inc. (N/A) $0.78 $0.719 12/31/2012 8.48% 36.87%
WSB 09/10/2012 Old Line Bancshares, Inc. (OLBK) $6.30 $5.82 06/30/2013 8.31% 11.44%
NXY 07/23/2012 CNOOC Ltd. (CEO) $27.50 $25.48 12/31/2012 7.93% 34.45%
SHAW 07/30/2012 Chicago Bridge & Iron Company (CBI) $46.06 $43.92 03/31/2013 4.87% 10.22%
YTEC 08/13/2012 New Sihitech Limited (N/A) $3.90 $3.73 12/31/2012 4.56% 19.80%
CRBC 09/13/2012 FirstMerit Corporation (FMER) $20.26 $19.42 06/30/2013 4.34% 5.97%
VRTA 05/31/2012 Vestin Realty Mortgage II, Inc. (VRTB) $1.27 $1.22 12/31/2012 4.18% 18.16%
FSIN 06/28/2012 Chairman and Co-Chief Executive Officer, Mr. Li Fu, and Abax Global Capital (Hong Kong) Limited (N/A) $9.50 $9.15 12/31/2012 3.83% 16.62%

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 $6.56 $5.66 146,185 11/09/2012 15.91% 181.52%
+ ECBE 09/25/2012 Crescent Financial Bancshares, Inc. (CRFN) All Stock $51.6 million $16.29 $14.94 2,766 03/31/2013 9.07% 19.02%
+ BIDZ 05/17/2012 Glendon Group, Inc. (N/A) All Cash N/A $0.78 $0.719 391,575 12/31/2012 8.48% 36.87%
+ WSB 09/10/2012 Old Line Bancshares, Inc. (OLBK) All Stock $49 million $6.30 $5.82 18,493 06/30/2013 8.31% 11.44%
+ NXY 07/23/2012 CNOOC Ltd. (CEO) All Cash $15.1 billion $27.50 $25.48 4,319,729 12/31/2012 7.93% 34.45%
+ SHAW 07/30/2012 Chicago Bridge & Iron Company (CBI) Cash Plus Stock $3 billion $46.06 $43.92 1,084,888 03/31/2013 4.87% 10.22%
+ YTEC 08/13/2012 New Sihitech Limited (N/A) All Cash $79.5 million $3.90 $3.73 17,900 12/31/2012 4.56% 19.80%
+ CRBC 09/13/2012 FirstMerit Corporation (FMER) All Stock $912 million $20.26 $19.42 467,179 06/30/2013 4.34% 5.97%
+ VRTA 05/31/2012 Vestin Realty Mortgage II, Inc. (VRTB) All Stock N/A $1.27 $1.22 600 12/31/2012 4.18% 18.16%
+ 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 $9.15 123,955 12/31/2012 3.83% 16.62%
+ GU 06/04/2012 Trillion Energy Holdings Limited And Trillion Energy Investments Holdings Limited (N/A) All Cash N/A $1.65 $1.59 36,108 12/31/2012 3.77% 16.40%
+ DITC 09/18/2012 Nuance Communications, Inc. (NUAN) All Cash $22.5 million $1.45 $1.40 442,816 12/31/2012 3.57% 15.52%
+ BFED 05/31/2012 Berkshire Hills Bancorp Inc. (BHLB) All Stock $132 million $21.79 $21.04 30,374 12/31/2012 3.54% 15.40%
+ CFFC 08/02/2012 City Holding Company (CHCO) All Stock $26.1 million $6.39 $6.18 213 03/31/2013 3.39% 7.12%
+ NEBS 05/31/2012 United Financial Bancorp, Inc. (UBNK) All Stock $91.0 million $13.98 $13.56 1,885 12/31/2012 3.09% 13.44%
+ GEOY 07/23/2012 DigitalGlobe, Inc. (DGI) Cash Plus Stock $900 million $28.15 $27.33 116,124 03/31/2013 2.99% 6.28%
+ SUN 04/30/2012 Energy Transfer Partners, L.P. (ETP) Cash Plus Stock $5.3 billion $47.86 $46.75 N/A 12/31/2012 2.38% 10.34%
+ CVH 08/20/2012 Aetna Inc. (AET) Cash Plus Stock $7.3 billion $43.48 $42.49 2,113,664 06/30/2013 2.34% 3.23%
+ BTFG 05/29/2012 Trustmark Corporation (TRMK) All Stock $55.4 million $3.07 $3.00 18,339 12/31/2012 2.29% 9.96%
+ WWIN 07/24/2012 Winner Holding Limited (N/A) All Cash N/A $4.50 $4.40 12,066 03/31/2013 2.27% 4.77%
+ BXG 11/14/2011 BFC Financial Corporation (BFCF) All Stock N/A $6.48 $6.35 29,866 12/31/2012 2.05% 8.90%
+ GNOM 09/17/2012 BGI-Shenzhen (N/A) All Cash $117.6 million $3.15 $3.09 368,254 03/31/2013 1.94% 4.07%
+ FSBI 07/19/2012 WesBanco Inc. (WSBC) Cash Plus Stock $70.8 million $22.13 $21.73 958 03/31/2013 1.86% 3.90%
+ GEN 07/23/2012 NRG Energy, Inc. (NRG) All Stock $1.7 billion $2.77 $2.72 5,084,516 03/31/2013 1.75% 3.67%
+ SAVB 08/08/2012 SCBT Financial Corporation (SCBT) All Stock $67.1 million $10.27 $10.11 18,698 12/31/2012 1.56% 6.76%
+ VSNT 10/01/2012 UNICOM Systems, Inc. (N/A) All Cash $32 million $11.50 $11.33 1,953 01/31/2013 1.50% 4.76%
+ MRX 09/03/2012 Valeant Pharmaceuticals International, Inc. (VRX) All Cash $2.6 billion $44.00 $43.37 1,075,882 06/30/2013 1.45% 2.00%
+ KH 09/27/2012 Medtronic, Inc. (MDT) All Cash $816 million $30.75 $30.31 711,558 12/31/2012 1.45% 6.31%
+ WCBO 09/26/2012 Columbia Banking System, Inc. (COLB) All Stock $506 million $22.93 $22.64 270,656 03/31/2013 1.29% 2.71%
+ LMLP 09/24/2012 Digital River, Inc. (DRIV) All Cash $102.8 million $3.45 $3.41 84,719 03/31/2013 1.17% 2.46%
+ HCBK 08/27/2012 M&T Bank Corporation (MTB) All Stock $3.7 billion $8.28 $8.19 2,852,541 03/31/2013 1.07% 2.25%
+ CTFO 06/08/2012 TransCloud Company Limited (N/A) All Cash $146.6 million $5.80 $5.74 26,119 12/31/2012 1.05% 4.54%
+ PSOF 05/17/2012 Timesway Group Limited (N/A) All Cash N/A $4.15 $4.12 31,300 10/01/2012 0.73% 0.00%
+ CBE 05/21/2012 Eaton Corporation (ETN) Cash Plus Stock $11.46 billion $75.78 $75.36 812,104 12/31/2012 0.56% 2.43%
+ DTG 08/27/2012 Hertz Global Holdings, Inc. (HTZ) All Cash $2.3 billion $87.50 $87.03 358,747 03/31/2013 0.54% 1.13%
+ AGP 07/09/2012 WellPoint Inc. (WLP) All Cash $4.9 billion $92.00 $91.55 699,643 03/31/2013 0.49% 1.03%
+ MEDW 09/12/2012 Thoma Bravo, LLC (N/A) All Cash $195 million $22.00 $21.90 136,247 12/31/2012 0.46% 1.98%
+ ARBA 05/22/2012 SAP AG (SAP) All Cash $4.3 billion $45.00 $44.80 N/A 12/31/2012 0.45% 1.94%
+ SBX 08/28/2012 Enstar Group Limited (ESGR) All Cash $249 million $11.11 $11.07 101,988 03/31/2013 0.36% 0.76%
+ PLFE 07/13/2012 Athene Annuity (N/A) All Cash $415 million $14.00 $13.95 92,279 12/31/2012 0.36% 1.56%
+ SUNH 06/20/2012 Genesis HealthCare (N/A) All Cash $275 million $8.50 $8.47 86,405 09/30/2012 0.35% 0.00%
+ CELL 07/02/2012 Ingram Micro Inc. (IM) All Cash $840 million $9.00 $8.97 388,472 12/31/2012 0.33% 1.45%
+ RMTR 09/19/2012 Cypress Semiconductor Corporation (CY) All Cash $109.8 million $3.10 $3.09 226,291 12/31/2012 0.32% 1.41%
+ SRZ 08/22/2012 Health Care REIT, Inc. (HCN) All Cash $845 million $14.50 $14.46 1,141,508 06/30/2013 0.28% 0.38%
+ PROJ 08/27/2012 Thoma Bravo Buying Software Co. (N/A) All Cash $1.1 billion $13.00 $12.97 36,020 12/31/2012 0.23% 1.01%
+ UDRL 09/25/2012 Sidewinder Drilling Inc. (N/A) All Cash $242 million $6.50 $6.485 83,603 12/31/2012 0.23% 1.01%
+ KSW 09/10/2012 Related Companies (N/A) All Cash $32.1 million $5.00 $4.99 52,754 10/26/2012 0.20% 4.06%
+ FSII 08/13/2012 Tokyo Electron (N/A) All Cash $252.5 million $6.20 $6.19 104,028 12/31/2012 0.16% 0.70%
+ IRIS 09/17/2012 Danaher Corporation (DHR) All Cash $340.9 million $19.50 $19.47 361,096 12/31/2012 0.15% 0.67%
+ PSS 05/01/2012 a consortium comprised of Wolverine Worldwide, Blum Capital Partners and Golden Gate Capital (WWW) All Cash $2 billion $21.75 $21.72 381,818 10/31/2012 0.14% 2.19%
+ KNXA 08/27/2012 International Business Machines Corporation (IBM) All Cash $1.3 billion $46.00 $45.95 864,549 12/31/2012 0.11% 0.47%
+ PCBC 03/12/2012 UnionBanCal Corp. (N/A) All Cash $1.51 billion $46.00 $45.96 27,105 12/31/2012 0.09% 0.38%
+ USHS 08/07/2012 The Home Depot (HD) All Cash $93.4 million $12.50 $12.49 26,895 12/31/2012 0.08% 0.35%
+ RBN 08/09/2012 National Oilwell Varco, Inc. (NOV) All Cash $2.5 billion $60.00 $59.96 964,467 12/31/2012 0.07% 0.29%
+ PEET 07/23/2012 Joh. A. Benckiser (N/A) All Cash $1 billion $73.50 $73.47 223,533 10/31/2012 0.04% 0.65%
+ 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 $0.50 709 12/31/2012 0.00% 0.00%
+ CRDN 10/01/2012 3M Co. (MMM) All Cash $670 million $35.00 $35.07 513,773 12/31/2012 -0.20% -0.87%
+ FSR 08/30/2012 Validus Holdings, Ltd. (VR) Cash Plus Stock $600 million $8.86 $8.88 42,511 12/31/2012 -0.27% -1.19%
+ CHG 02/21/2012 Fortis Inc. (N/A) All Cash $1.5 billion $65.00 $65.34 31,220 03/31/2013 -0.52% -1.09%
+ ARCT 09/06/2012 Realty Income Corp. (O) All Stock $2.95 billion $11.85 $11.92 3,358,198 03/31/2013 -0.57% -1.19%
+ CEBK 05/01/2012 Independent Bank Corp. (INDB) All Cash $54.8 million $32.00 $32.33 11,400 12/31/2012 -1.02% -4.44%
+ TPCG 08/27/2012 First Reserve Corporation and SK Capital Partners (N/A) All Cash $850 million $40.00 $40.67 49,920 12/31/2012 -1.65% -7.16%
+ ZZ 09/27/2012 Tempur-Pedic International Inc. (TPX) All Cash $1.3 billion $2.20 $2.26 1,179,235 06/30/2013 -2.65% -3.66%
+ ABVA 05/03/2012 Washington First Bankshares (WFBI) All Stock $24.4 million $4.41 $4.60 6,463 12/31/2012 -4.07% -17.68%
+ WLBC 08/17/2012 Western Alliance Bancorporation (WAL) All Cash $55 million $4.02 $4.25 207,495 12/31/2012 -5.41% -23.52%
+ JAX 06/25/2012 Fidelity National Financial, Inc. (FNF) All Cash $78 million $13.00 $14.49 2,189 12/31/2012 -10.28% -44.68%
+ TARO 08/13/2012 Sun Pharmaceutical (N/A) All Cash $1.45 billion $39.50 $46.14 17,680 12/31/2012 -14.39% -62.53%
+ FACE 08/13/2012 Swander Pace Capital (N/A) All Cash $65 million $4.25 $4.97 158,412 12/31/2012 -14.49% -62.95%
+ WAVE 08/02/2012 AT&T, Inc. (T) All Cash $600 million $1.00 $1.20 6,114 12/31/2069 -16.67% -0.29%

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