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Merger Arbitrage Mondays – December 10, 2012

  • December 10, 2012

Merger activity increased last week with four new deals announced and six deals 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 2012170
Total Number of Deals Not Completed in 20124
Total Number of Pending Deals
Cash Deals42
Stock Deals16
Stock & Cash Deals9
Total Number of Pending Deals67
Total Deal Size$533.12 billion

New Deals:

  1. The acquisition of Young Innovations (YDNT) by an affiliate of Linden Capital Partners for $314 million or $39.50 per share in cash.
  2. The acquisition of Plains Exploration & Production Company (PXP) by Freeport-McMoRan Copper & Gold (FCX) for $6.9 million in a cash and stock deal, where shareholders of Plains Exploration & Production Company will receive $25.00 in cash and 0.6531 shares of FCX common stock.
  3. The acquisition of McMoRan Exploration (MMR) by Freeport-Mc-MoRan Copper & Gold (FCX) for $3.4 billion or $14.75 per share in cash and 1.15 units of a royalty trust, which will hold a 5 percent overriding royalty interest in future production from MMR’s existing ultra-deep exploration properties. We are treating this as an all-cash deal and not including the 1.15 units of the royalty trust in calculating the spread.
  4. The acquisition of Epoch Investment Partners (EPHC) by the TD Bank Group for $668 million or $28.00 per share in cash.

Deal Updates:

  1. During an investor conference last Wednesday, Starbucks (SBUX) reaffirmed its intent to acquire Teavana (TEA) despite the negative reports by research firm Glaucus Research claiming the presence of pesticides in certain Tevana products. The spread on the deal closed rapidly and is currently just 0.39%.
  2. Canada approved the acquisition of Nexen (NXY) by state-owned Chinese firm CNOOC late Friday. The stock was up nearly 15% after hours to $27. The spread in this post reflects the closing price on Friday and hence shows a 16.92% spread.

Closed Deals:

  1. The acquisition of Pacific Capital Bancorp (PCBC) by UnionBanCal Corp. on December 1, 2012.
  2. The acquisition of Fidelity Bancorp (FSBI) by WesBanco (WSBC) on December 3, 2012.
  3. The acquisition of Cooper Industries (CBE) by Eaton Corporation (ETN) on December 4, 2012.
  4. The acquisition of Ditech Networks (DITC) by Nuance Communications (NUAN) on December 4, 2012.
  5. The acquisition of Kenexa Corp. (KNXA) by International Business Machines Corporation (IBM) on December 4, 2012.
  6. The acquisition of Sun Healthcare Group (SUNH) by Genesis HealthCare on December 5, 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)$6.86$4.4812/10/201253.13%0.00%
ECBE09/25/2012Crescent Financial Bancshares, Inc. (CRFN)$17.22$14.1403/31/201321.76%71.57%
BXG11/14/2011BFC Financial Corporation (BFCF)$11.28$9.5012/31/201218.74%325.66%
KBW11/05/2012Stifel Financial Corp. (SF)$17.50$14.9403/31/201317.14%56.35%
NXY07/23/2012CNOOC Ltd. (CEO)$27.50$23.5212/31/201216.92%294.12%
ABVA05/03/2012Washington First Bankshares (WFBI)$5.23$4.7012/31/201211.35%197.22%
HOGS11/26/2012Chairman and CEO Xianfu Zhu (N/A)$13.50$12.4403/31/20138.52%28.02%
WSB09/10/2012Old Line Bancshares, Inc. (OLBK)$6.33$5.8806/30/20137.68%13.87%
OUTD11/16/2012InterMedia Outdoors Holdings, LLC (N/A)$8.00$7.4403/31/20137.53%24.75%
RVR11/15/2012Parthenon Capital Partners (N/A)$21.93$20.8003/31/20135.43%17.86%

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$6.86$4.48117,37612/10/201253.13%0.00%
+ECBE09/25/2012Crescent Financial Bancshares, Inc. (CRFN)All Stock$51.6 million$17.22$14.1490003/31/201321.76%71.57%
+BXG11/14/2011BFC Financial Corporation (BFCF)All StockN/A$11.28$9.5066,35012/31/201218.74%325.66%
+KBW11/05/2012Stifel Financial Corp. (SF)All Cash$575 million$17.50$14.941,016,35103/31/201317.14%56.35%
+NXY07/23/2012CNOOC Ltd. (CEO)All Cash$15.1 billion$27.50$23.5228,601,66412/31/201216.92%294.12%
+ABVA05/03/2012Washington First Bankshares (WFBI)All Stock$24.4 million$5.23$4.707,61412/31/201211.35%197.22%
+HOGS11/26/2012Chairman and CEO Xianfu Zhu (N/A)All Cash$418 million$13.50$12.44294,93903/31/20138.52%28.02%
+WSB09/10/2012Old Line Bancshares, Inc. (OLBK)All Stock$49 million$6.33$5.884,10006/30/20137.68%13.87%
+OUTD11/16/2012InterMedia Outdoors Holdings, LLC (N/A)All CashN/A$8.00$7.4496,15903/31/20137.53%24.75%
+RVR11/15/2012Parthenon Capital Partners (N/A)All Cash$79.5 million$21.93$20.808,15003/31/20135.43%17.86%
+CYMI10/17/2012ASML Holding NV (ASML)Cash Plus Stock$2.5 billion$93.04$88.51411,00206/30/20135.12%9.24%
+PRWT10/30/2012AmericanWest Bank (N/A)All Cash$16.6 million$1.65$1.5718,33206/30/20135.10%9.21%
+JEF11/12/2012Leucadia National Corp. (LUK)All Stock$3.59 billion$18.79$17.901,394,65903/31/20134.98%16.39%
+GEOY07/23/2012DigitalGlobe, Inc. (DGI)Cash Plus Stock$900 million$32.92$31.5393,64503/31/20134.42%14.53%
+CYBI10/17/2012UM Holdings, Ltd. (N/A)All CashN/A$2.55$2.45153,99903/31/20134.08%13.42%
+BTFG05/29/2012Trustmark Corporation (TRMK)All Stock$55.4 million$2.79$2.6933,23412/31/20123.86%67.04%
+CRBC09/13/2012FirstMerit Corporation (FMER)All Stock$912 million$18.95$18.40293,21006/30/20132.97%5.37%
+VRTA05/31/2012Vestin Realty Mortgage II, Inc. (VRTB)All StockN/A$1.13$1.10N/A12/31/20122.87%49.93%
+HCBK08/27/2012M&T Bank Corporation (MTB)All Stock$3.7 billion$8.20$7.9853,579,36603/31/20132.75%9.05%
+CFFC08/02/2012City Holding Company (CHCO)All Stock$26.1 million$5.90$5.755,50003/31/20132.56%8.41%
+PXP12/05/2012Freeport-McMoRan Copper & Gold Inc. (FCX)Cash Plus Stock$6.9 billion$45.70$44.6217,871,28406/30/20132.43%4.39%
+FCAL11/06/2012PacWest Bancorp (PACW)All Cash$231 million$8.00$7.8274,43703/31/20132.30%7.57%
+SHAW07/30/2012Chicago Bridge & Iron Company (CBI)Cash Plus Stock$3 billion$46.29$45.29676,82703/31/20132.22%7.30%
+ZZ09/27/2012Tempur-Pedic International Inc. (TPX)All Cash$1.3 billion$2.20$2.16188,66306/30/20131.85%3.35%
+PSSI10/25/2012McKesson Corporation (MCK)All Cash$2.1 billion$29.00$28.49684,44203/31/20131.79%5.89%
+ANNB10/23/2012F.N.B. Corporation (FNB)All Stock$51 million$12.25$12.076,57504/30/20131.52%3.92%
+SEH10/24/2012PolyOne Corporation (POL)Cash Plus Stock$393 million$9.05$8.92171,14903/31/20131.44%4.73%
+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$9.37356,85312/31/20121.39%24.11%
+ALNC10/08/2012NBT Bancorp Inc. (NBTB)All Stock$233.4 million$43.27$42.692,64806/30/20131.37%2.48%
+RTLX11/28/2012NCR Corp. (NCR)All Cash$660 million$30.00$29.63161,72403/31/20131.25%4.11%
+RBN08/09/2012National Oilwell Varco, Inc. (NOV)All Cash$2.5 billion$60.00$59.27563,47912/31/20121.23%21.41%
+GEN07/23/2012NRG Energy, Inc. (NRG)All Stock$1.7 billion$2.66$2.6312,773,46003/31/20131.16%3.83%
+CVH08/20/2012Aetna Inc. (AET)Cash Plus Stock$7.3 billion$44.67$44.161,349,94306/30/20131.15%2.09%
+WRC10/31/2012PVH Corp. (PVH)Cash Plus Stock$2.9 billion$72.25$71.54693,83303/31/20130.99%3.26%
+GNOM09/17/2012BGI-Shenzhen (N/A)All Cash$117.6 million$3.15$3.12342,07312/14/20120.96%87.74%
+RAH11/27/2012ConAgra Foods, Inc. (CAG)All Cash$6.8 billion$90.00$89.171,624,58303/31/20130.93%3.06%
+WWIN07/24/2012Winner Holding Limited (N/A)All CashN/A$4.50$4.461,71703/31/20130.90%2.95%
+SRZ08/22/2012Health Care REIT, Inc. (HCN)All Cash$845 million$14.50$14.38393,94306/30/20130.83%1.51%
+SBX08/28/2012Enstar Group Limited (ESGR)All Cash$249 million$11.11$11.02114,40103/31/20130.82%2.69%
+YTEC08/13/2012New Sihitech Limited (N/A)All Cash$79.5 million$3.90$3.8756,42912/31/20120.78%13.47%
+EPHC12/06/2012TD Bank Group (N/A)All Cash$668 million$28.00$27.802,194,53306/30/20130.72%1.30%
+ACOM10/22/2012Permira Advisers LLP (N/A)All Cash$1.6 billion$32.00$31.82491,10703/31/20130.57%1.86%
+JDAS11/01/2012RedPrairie (N/A)All Cash$1.9 billion$45.00$44.81890,00512/31/20120.42%7.37%
+TEA11/14/2012Starbucks Corporation (SBUX)All Cash$620 million$15.50$15.44953,69312/31/20120.39%6.75%
+DUSA11/08/2012Sun Pharmaceutical Industries Limited (N/A)All Cash$230 million$8.00$7.97114,96703/31/20130.38%1.24%
+KYAK11/08/2012priceline.com Incorporated (PCLN)All Cash$1.65 billion$40.00$39.88233,50303/31/20130.30%0.99%
+LMLP09/24/2012Digital River, Inc. (DRIV)All Cash$102.8 million$3.45$3.44456,53603/31/20130.29%0.96%
+WMCO11/01/2012Curtiss-Wright Corp. (CW)All Cash$119 million$15.42$15.3825,16403/31/20130.26%0.86%
+TPCG08/27/2012First Reserve Corporation and SK Capital Partners (N/A)All Cash$850 million$45.00$44.90133,32412/31/20120.22%3.87%
+MDF11/05/2012Humana Inc. (HUM)All Cash$850 million$11.25$11.23898,38803/31/20130.18%0.59%
+OPNT10/29/2012Riverbed Technology, Inc. (RVBD)Cash Plus Stock$921 million$41.46$41.39329,58912/31/20120.16%2.82%
+AGP07/09/2012WellPoint Inc. (WLP)All Cash$4.9 billion$92.00$91.87684,59803/31/20130.14%0.47%
+TIE11/09/2012Precision Castparts Corp. (PCP)All Cash$2.9 billion$16.50$16.481,459,17412/31/20120.12%2.11%
+MRX09/03/2012Valeant Pharmaceuticals International, Inc. (VRX)All Cash$2.6 billion$44.00$43.961,316,43706/30/20130.09%0.16%
+CASC10/22/2012Toyota Industries Corporation (N/A)All Cash$759 million$65.00$64.9527,85312/31/20120.08%1.34%
+PLFE07/13/2012Athene Annuity (N/A)All Cash$415 million$14.00$14.0055,29312/31/20120.00%0.00%
+SAVB08/08/2012SCBT Financial Corporation (SCBT)All Stock$67.1 million$9.76$9.7864012/31/2012-0.16%-2.81%
+CHG02/21/2012Fortis Inc. (N/A)All Cash$1.5 billion$65.00$65.1827,89603/31/2013-0.28%-0.91%
+YDNT12/04/2012affiliate of Linden Capital Partners (N/A)All Cash$314 million$39.50$39.65161,34203/31/2013-0.38%-1.24%
+ARCT09/06/2012Realty Income Corp. (O)All Stock$2.95 billion$11.68$11.783,188,99603/31/2013-0.85%-2.79%
+WCBO09/26/2012Columbia Banking System, Inc. (COLB)All Stock$506 million$21.11$21.7653,70503/31/2013-3.00%-9.87%
+MMR12/05/2012Freeport-McMoRan Copper & Gold Inc. (FCX)All Cash3.4 billion$14.75$15.4015,562,71806/30/2013-4.22%-7.63%
+VSNT10/01/2012UNICOM Systems, Inc. (N/A)All Cash$32 million$11.50$12.852,01501/31/2013-10.51%-73.74%
+FACE08/13/2012Swander Pace Capital (N/A)All Cash$65 million$4.25$4.8323,55512/31/2012-12.01%-208.72%
+TARO08/13/2012Sun Pharmaceutical (N/A)All Cash$1.45 billion$39.50$46.1524,55612/31/2012-14.41%-250.45%
+WAVE08/02/2012AT&T, Inc. (T)All Cash$600 million$1.00$1.184,85712/31/2012-15.25%-265.13%
+SHF10/30/2012Bayer HealthCare LLC (N/A)All Cash$1.2 billion$34.00$41.9969,41212/31/2012-19.03%-330.73%
Voluntary Disclosure: I hold a long position in CYBI and a short position in $15 January TEA puts.