Merger Arbitrage Mondays – November 19, 2012

  • November 19, 2012

Merger activity decreased last week with four new deals announced.

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 2012158
Total Number of Deals Not Completed in 20122
Total Number of Pending Deals
Cash Deals43
Stock Deals17
Stock & Cash Deals11
Total Number of Pending Deals71
Total Deal Size$513.96 billion

New Deals:

  1. The acquisition of Jefferies Group (JEF) by Leucadia National (LUK) in an all stock deal. Under the terms of the agreement, shareholders of Jefferies Group will receive 0.81 of a share of Leucadia common stock for each share of Jefferies common stock they hold. This presentation has additional information about the merger including the impact of spinning out the Crimson Wine business.
  2. The acquisition of Titanium Metals Corporation (TIE) by Precision Castparts (PCP) for $2.9 billion or $16.50 per share in cash. Titanium Metals is one of five public companies controlled or managed by Harold Simmons, considered by some as the father of the leveraged buyout (LBO). Wikipedia provides an introduction to Harold Simmons and his group of companies but for more color check out the article titled Harold Simmons is Dallas’ Most Evil Genius by D magazine.
  3. The acquisition of Teavana Holdings (TEA) by Starbucks Corporation (SBUX) for $620 million or $15.50 per share in cash.
  4. The acquisition of White River Capital (RVR) by Parthenon Capital Partners for $79.5 million or $21.93 per share in cash.

Updated Deals:

  1. On November 15, 2012, TPC Group (TPCG) received a revised non-binding expression of interest to be acquired by Innospec (IOSP). In its letter, Innospec stated that its board of directors has authorized it to increase its proposed price to $47.50 per share in cash. Its prior expression of interest indicated a proposed price range of $44.00 to $46.00 per share.
  2. On November 16, 2012, Schiff Nutrition International (SHF) received a second takeover bid from Reckitt Benckiser for $1.4 billion or $42.00 per share in cash.

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)$6.39$3.9911/30/201260.09%1993.82%
ECBE09/25/2012Crescent Financial Bancshares, Inc. (CRFN)$16.83$14.2403/31/201318.17%50.23%
NXY07/23/2012CNOOC Ltd. (CEO)$27.50$25.5912/31/20127.46%64.86%
GEOY07/23/2012DigitalGlobe, Inc. (DGI)$31.43$29.2903/31/20137.32%20.24%
WSB09/10/2012Old Line Bancshares, Inc. (OLBK)$6.21$5.82906/30/20136.60%10.80%
JEF11/12/2012Leucadia National Corp. (LUK)$16.59$15.7503/31/20135.33%14.73%
FCAL11/06/2012PacWest Bancorp (PACW)$8.00$7.6103/31/20135.12%14.17%
CFFC08/02/2012City Holding Company (CHCO)$5.58$5.3103/31/20135.11%14.14%
CYBI10/17/2012UM Holdings, Ltd. (N/A)$2.55$2.4303/31/20134.94%13.66%
CRBC09/13/2012FirstMerit Corporation (FMER)$18.08$17.2406/30/20134.90%8.01%

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$6.39$3.99306,97511/30/201260.09%1993.82%
+ECBE09/25/2012Crescent Financial Bancshares, Inc. (CRFN)All Stock$51.6 million$16.83$14.243,93603/31/201318.17%50.23%
+NXY07/23/2012CNOOC Ltd. (CEO)All Cash$15.1 billion$27.50$25.5914,718,81012/31/20127.46%64.86%
+GEOY07/23/2012DigitalGlobe, Inc. (DGI)Cash Plus Stock$900 million$31.43$29.29165,82803/31/20137.32%20.24%
+WSB09/10/2012Old Line Bancshares, Inc. (OLBK)All Stock$49 million$6.21$5.8294,25006/30/20136.60%10.80%
+JEF11/12/2012Leucadia National Corp. (LUK)All Stock$3.59 billion$16.59$15.752,776,67703/31/20135.33%14.73%
+FCAL11/06/2012PacWest Bancorp (PACW)All Cash$231 million$8.00$7.61325,97303/31/20135.12%14.17%
+CFFC08/02/2012City Holding Company (CHCO)All Stock$26.1 million$5.58$5.3112,22703/31/20135.11%14.14%
+CYBI10/17/2012UM Holdings, Ltd. (N/A)All CashN/A$2.55$2.4360803/31/20134.94%13.66%
+CRBC09/13/2012FirstMerit Corporation (FMER)All Stock$912 million$18.08$17.24208,98006/30/20134.90%8.01%
+PRWT10/30/2012AmericanWest Bank (N/A)All Cash$16.6 million$1.65$1.57527,06406/30/20134.76%7.79%
+SHAW07/30/2012Chicago Bridge & Iron Company (CBI)Cash Plus Stock$3 billion$45.79$43.781,429,53603/31/20134.59%12.69%
+GNOM09/17/2012BGI-Shenzhen (N/A)All Cash$117.6 million$3.15$3.02333,20003/31/20134.30%11.90%
+CYMI10/17/2012ASML Holding NV (ASML)Cash Plus Stock$2.5 billion$83.16$79.83400,33906/30/20134.17%6.82%
+DITC09/18/2012Nuance Communications, Inc. (NUAN)All Cash$22.5 million$1.45$1.40399,10412/31/20123.57%31.04%
+ANNB10/23/2012F.N.B. Corporation (FNB)All Stock$51 million$12.20$11.809,10004/30/20133.35%7.56%
+HCBK08/27/2012M&T Bank Corporation (MTB)All Stock$3.7 billion$8.16$7.955,494,50303/31/20132.63%7.28%
+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$9.27214,50412/31/20122.48%21.56%
+ALNC10/08/2012NBT Bancorp Inc. (NBTB)All Stock$233.4 million$41.88$40.8815,52306/30/20132.45%4.01%
+BTFG05/29/2012Trustmark Corporation (TRMK)All Stock$55.4 million$2.66$2.604,76312/31/20122.40%20.89%
+MRX09/03/2012Valeant Pharmaceuticals International, Inc. (VRX)All Cash$2.6 billion$44.00$42.994,375,28606/30/20132.35%3.85%
+RVR11/15/2012Parthenon Capital Partners (N/A)All Cash$79.5 million$21.93$21.4314,04003/31/20132.33%6.45%
+ACOM10/22/2012Permira Advisers LLP (N/A)All Cash$1.6 billion$32.00$31.34969,75203/31/20132.11%5.82%
+SEH10/24/2012PolyOne Corporation (POL)Cash Plus Stock$393 million$8.58$8.40268,04503/31/20132.10%5.81%
+LMLP09/24/2012Digital River, Inc. (DRIV)All Cash$102.8 million$3.45$3.3886,91103/31/20132.07%5.73%
+GEN07/23/2012NRG Energy, Inc. (NRG)All Stock$1.7 billion$2.41$2.368,584,87003/31/20131.92%5.30%
+KBW11/05/2012Stifel Financial Corp. (SF)All Cash$575 million$17.50$17.20437,53512/31/20691.74%0.03%
+ABVA05/03/2012Washington First Bankshares (WFBI)All Stock$24.4 million$4.55$4.4787812/31/20121.70%14.75%
+CVH08/20/2012Aetna Inc. (AET)Cash Plus Stock$7.3 billion$43.11$42.41768,68206/30/20131.66%2.71%
+WRC10/31/2012PVH Corp. (PVH)Cash Plus Stock$2.9 billion$71.48$70.381,233,18503/31/20131.56%4.32%
+YTEC08/13/2012New Sihitech Limited (N/A)All Cash$79.5 million$3.90$3.8419,20012/31/20121.56%13.58%
+SRZ08/22/2012Health Care REIT, Inc. (HCN)All Cash$845 million$14.50$14.281,458,02106/30/20131.54%2.52%
+PSSI10/25/2012McKesson Corporation (MCK)All Cash$2.1 billion$29.00$28.591,806,99003/31/20131.43%3.97%
+FSBI07/19/2012WesBanco Inc. (WSBC)Cash Plus Stock$70.8 million$21.11$20.845,40203/31/20131.29%3.55%
+CBE05/21/2012Eaton Corporation (ETN)Cash Plus Stock$11.46 billion$77.07$76.251,776,49612/31/20121.07%9.33%
+SBX08/28/2012Enstar Group Limited (ESGR)All Cash$249 million$11.11$11.00171,25603/31/20131.00%2.77%
+RBN08/09/2012National Oilwell Varco, Inc. (NOV)All Cash$2.5 billion$60.00$59.46242,31412/31/20120.91%7.89%
+WWIN07/24/2012Winner Holding Limited (N/A)All CashN/A$4.50$4.4668803/31/20130.90%2.48%
+JDAS11/01/2012RedPrairie (N/A)All Cash$1.9 billion$45.00$44.601,912,08012/31/20120.90%7.79%
+SUNH06/20/2012Genesis HealthCare (N/A)All Cash$275 million$8.50$8.43274,46212/31/20120.83%7.22%
+FSR08/30/2012Validus Holdings, Ltd. (VR)Cash Plus Stock$600 million$8.58$8.51523,67112/31/20120.81%7.05%
+KYAK11/08/2012priceline.com Incorporated (PCLN)All Cash$1.65 billion$40.00$39.68222,64703/31/20130.81%2.23%
+MDF11/05/2012Humana Inc. (HUM)All Cash$850 million$11.25$11.171,102,20103/31/20130.72%1.98%
+AGP07/09/2012WellPoint Inc. (WLP)All Cash$4.9 billion$92.00$91.50487,48903/31/20130.55%1.51%
+DUSA11/08/2012Sun Pharmaceutical Industries Limited (N/A)All Cash$230 million$8.00$7.96434,07612/31/20690.50%0.01%
+SAVB08/08/2012SCBT Financial Corporation (SCBT)All Stock$67.1 million$9.27$9.221,00012/31/20120.50%4.35%
+NOOF10/15/2012LFP Broadcasting, LLC (N/A)All Cash$33 million$2.02$2.0185,96812/31/20120.50%4.32%
+ZZ09/27/2012Tempur-Pedic International Inc. (TPX)All Cash$1.3 billion$2.20$2.19340,18706/30/20130.46%0.75%
+WMCO11/01/2012Curtiss-Wright Corp. (CW)All Cash$119 million$15.42$15.3662,49403/31/20130.39%1.08%
+CHG02/21/2012Fortis Inc. (N/A)All Cash$1.5 billion$65.00$64.7646,21603/31/20130.37%1.02%
+RMTR09/19/2012Cypress Semiconductor Corporation (CY)All Cash$109.8 million$3.10$3.0942,22012/31/20120.32%2.81%
+TEA11/14/2012Starbucks Corporation (SBUX)All Cash$620 million$15.50$15.453,430,15112/31/20120.32%2.81%
+KNXA08/27/2012International Business Machines Corporation (IBM)All Cash$1.3 billion$46.00$45.89548,70112/31/20120.24%2.08%
+CRDN10/01/20123M Co. (MMM)All Cash$670 million$35.00$34.92925,64212/31/20120.23%1.99%
+PCBC03/12/2012UnionBanCal Corp. (N/A)All Cash$1.51 billion$46.00$45.9329,95712/31/20120.15%1.32%
+PLFE07/13/2012Athene Annuity (N/A)All Cash$415 million$14.00$13.9871,62312/31/20120.14%1.24%
+CASC10/22/2012Toyota Industries Corporation (N/A)All Cash$759 million$65.00$64.98124,79312/31/20120.03%0.27%
+DTG08/27/2012Hertz Global Holdings, Inc. (HTZ)All Cash$2.3 billion$87.50$87.492,596,90103/31/20130.01%0.03%
+ARCT09/06/2012Realty Income Corp. (O)All Stock$2.95 billion$11.04$11.063,733,70203/31/2013-0.22%-0.60%
+OPNT10/29/2012Riverbed Technology, Inc. (RVBD)Cash Plus Stock$921 million$41.12$41.28136,10512/31/2012-0.38%-3.34%
+TIE11/09/2012Precision Castparts Corp. (PCP)All Cash$2.9 billion$16.50$16.614,636,33612/31/2012-0.66%-5.76%
+NEBS05/31/2012United Financial Bancorp, Inc. (UBNK)All Stock$91.0 million$13.63$13.7316,13912/31/2012-0.69%-6.03%
+VSNT10/01/2012UNICOM Systems, Inc. (N/A)All Cash$32 million$11.50$11.909,08301/31/2013-3.36%-16.81%
+WCBO09/26/2012Columbia Banking System, Inc. (COLB)All Stock$506 million$20.26$21.3340,02403/31/2013-5.01%-13.85%
+TPCG08/27/2012First Reserve Corporation and SK Capital Partners (N/A)All Cash$850 million$45.00$47.80452,36912/31/2012-5.86%-50.91%
+VRTA05/31/2012Vestin Realty Mortgage II, Inc. (VRTB)All StockN/A$1.19$1.281,20012/31/2012-7.11%-61.78%
+FACE08/13/2012Swander Pace Capital (N/A)All Cash$65 million$4.25$4.79545,28112/31/2012-11.27%-97.97%
+TARO08/13/2012Sun Pharmaceutical (N/A)All Cash$1.45 billion$39.50$46.103,46212/31/2012-14.32%-124.42%
+WAVE08/02/2012AT&T, Inc. (T)All Cash$600 million$1.00$1.171,00012/31/2069-14.53%-0.25%
+BXG11/14/2011BFC Financial Corporation (BFCF)All StockN/A$7.12$8.85136,68312/31/2012-19.55%-169.88%
+SHF10/30/2012Bayer HealthCare LLC (N/A)All Cash$1.2 billion$34.00$43.761,459,25312/31/2012-22.30%-193.83%

Voluntary Disclosure: I hold a long position in CYBI.