Merger Arbitrage Mondays – December 17, 2012

  • December 16, 2012

Merger activity increased last week with five new deals announced and four 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 2012174
Total Number of Deals Not Completed in 20124
Total Number of Pending Deals
Cash Deals44
Stock Deals14
Stock & Cash Deals9
Special Conditions1
Total Number of Pending Deals68
Total Deal Size$535.46 billion

New Deals:

  1. The acquisition of Intermec (IN) by Honeywell (HON) for $600 million or $10.00 per share in cash.
  2. The acquisition of Heelys (HLYS) by Sequential Brands Group for $63.2 million or $2.25 per share in cash.
  3. The acquisition of TNS Inc. (TNS) by an affiliate of Siris Capital Group for $862 million or $21.00 per share in cash.
  4. The acquisition of Somaxon Pharmaceuticals (SOMX) by Pernix Therapeutics Holdings (PTX) for $25 million. Under the terms of the agreement, “Somaxon stockholders will receive aggregate consideration equal to $25 million in Pernix common stock. The number of shares of Pernix common stock to be issued to the stockholders of Somaxon will be based on the volume-weighted average price of Pernix’s common stock over the 30 day period ending on the day immediately prior to the closing of the proposed merger, subject to limitations on the maximum and minimum number of shares of Pernix common stock issuable in the transaction based on a price range of $6.00 to $9.00 per share.” Since the exact exchange ratio has not been provided and the value of the deal is for the most part fixed at $25 million, we are treating this as an all-cash deal worth $3.48 in cash as discussed in this Twitter post last week.
  5. The acquisition of YM BioSciences (YMI) by Gilead Scienced (GILD) for $510 million or $2.95 per share in cash.

Updated Deals:

  1. On December 13, 2012, BGI-Shenzhen announced that it has extended its all cash tender offer (the “Offer”) to purchase all outstanding shares of common stock of Complete Genomics (GNOM) to December 31, 2012.

Closed Deals:

  1. The acquisition of Medicis Pharmaceutical Corp. (MRX) by Valeant Pharmaceuticals International, Inc. (VRX) on December 11, 2012.
  2. The acquisition of Winner Medical Group Inc. (WWIN) by Winner Holding Limited on December 12, 2012.
  3. The acquisition of Physicians Formula Holdings (FACE) by Swander Pace Capital on December 12, 2012.
  4. The acquisition of The Savannah Bancorp (SAVB) by SCBT Financial Corporation (SCBT) on December 14, 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)$7.07$4.5501/18/201355.38%631.73%
SOMX12/11/2012Pernix Therapeutics Holdings, Inc. (PTX)$4.50$3.0206/30/201348.90%91.54%
ECBE09/25/2012Crescent Financial Bancshares, Inc. (CRFN)$17.11$14.0503/31/201321.79%76.46%
WSB09/10/2012Old Line Bancshares, Inc. (OLBK)$6.49$5.9106/30/20139.79%18.32%
HOGS11/26/2012Chairman and CEO Xianfu Zhu (N/A)$13.50$12.5103/31/20137.91%27.77%
OUTD11/16/2012InterMedia Outdoors Holdings, LLC (N/A)$8.00$7.4203/31/20137.82%27.43%
BXG11/14/2011BFC Financial Corporation (BFCF)$10.00$9.5212/31/20125.04%131.45%
CYMI10/17/2012ASML Holding NV (ASML)$93.20$88.8106/30/20134.94%9.25%
JEF11/12/2012Leucadia National Corp. (LUK)$18.85$18.1003/31/20134.14%14.52%
GEOY07/23/2012DigitalGlobe, Inc. (DGI)$33.46$32.1403/31/20134.10%14.39%

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$7.07$4.55224,10901/18/201355.38%631.73%
+SOMX12/11/2012Pernix Therapeutics Holdings, Inc. (PTX)Special Conditions$3.48 million$4.50$3.02334,33306/30/201348.90%91.54%
+ECBE09/25/2012Crescent Financial Bancshares, Inc. (CRFN)All Stock$51.6 million$17.11$14.0584603/31/201321.79%76.46%
+WSB09/10/2012Old Line Bancshares, Inc. (OLBK)All Stock$49 million$6.49$5.9110,30006/30/20139.79%18.32%
+HOGS11/26/2012Chairman and CEO Xianfu Zhu (N/A)All Cash$418 million$13.50$12.51381,65703/31/20137.91%27.77%
+OUTD11/16/2012InterMedia Outdoors Holdings, LLC (N/A)All CashN/A$8.00$7.4283,52603/31/20137.82%27.43%
+BXG11/14/2011BFC Financial Corporation (BFCF)All Cash$150 million$10.00$9.52141,85912/31/20125.04%131.45%
+CYMI10/17/2012ASML Holding NV (ASML)Cash Plus Stock$2.5 billion$93.20$88.81761,90406/30/20134.94%9.25%
+JEF11/12/2012Leucadia National Corp. (LUK)All Stock$3.59 billion$18.85$18.10940,67403/31/20134.14%14.52%
+GEOY07/23/2012DigitalGlobe, Inc. (DGI)Cash Plus Stock$900 million$33.46$32.1475,32903/31/20134.10%14.39%
+KBW11/05/2012Stifel Financial Corp. (SF)All Cash$575 million$15.50$14.89532,73203/31/20134.10%14.38%
+CYBI10/17/2012UM Holdings, Ltd. (N/A)All CashN/A$2.55$2.46156,64003/31/20133.66%12.84%
+VRTA05/31/2012Vestin Realty Mortgage II, Inc. (VRTB)All StockN/A$1.12$1.095,19512/31/20123.06%79.89%
+HCBK08/27/2012M&T Bank Corporation (MTB)All Stock$3.7 billion$8.23$7.995,949,38003/31/20132.97%10.43%
+RVR11/15/2012Parthenon Capital Partners (N/A)All Cash$79.5 million$21.93$21.302,20003/31/20132.96%10.38%
+CFFC08/02/2012City Holding Company (CHCO)All Stock$26.1 million$5.92$5.752,10003/31/20132.89%10.15%
+CRBC09/13/2012FirstMerit Corporation (FMER)All Stock$912 million$19.00$18.50112,98806/30/20132.71%5.08%
+NXY07/23/2012CNOOC Ltd. (CEO)All Cash$15.1 billion$27.50$26.7810,574,22412/31/20122.69%70.09%
+PRWT10/30/2012AmericanWest Bank (N/A)All Cash$16.6 million$1.65$1.6122,96506/30/20132.48%4.65%
+FCAL11/06/2012PacWest Bancorp (PACW)All Cash$231 million$8.00$7.8130,92903/31/20132.43%8.54%
+YMI12/12/2012Gilead Sciences Inc. (GILD)All Cash$510 million$2.95$2.8810,009,64103/31/20132.43%8.53%
+ZZ09/27/2012Tempur-Pedic International Inc. (TPX)All Cash$1.3 billion$2.20$2.15626,40206/30/20132.33%4.35%
+PXP12/05/2012Freeport-McMoRan Copper & Gold Inc. (FCX)Cash Plus Stock$6.9 billion$47.06$46.084,291,40306/30/20132.13%3.99%
+SHAW07/30/2012Chicago Bridge & Iron Company (CBI)Cash Plus Stock$3 billion$46.38$45.421,449,18903/31/20132.11%7.41%
+PSSI10/25/2012McKesson Corporation (MCK)All Cash$2.1 billion$29.00$28.411,306,16803/31/20132.08%7.29%
+ANNB10/23/2012F.N.B. Corporation (FNB)All Stock$51 million$12.01$11.785,40004/30/20131.98%5.39%
+BTFG05/29/2012Trustmark Corporation (TRMK)All Stock$55.4 million$2.77$2.7218,57112/31/20121.93%50.32%
+IN12/10/2012Honeywell International Inc. (HON)All Cash$600 million$10.00$9.85813,02106/30/20131.52%2.85%
+RTLX11/28/2012NCR Corp. (NCR)All Cash$660 million$30.00$29.6352,47403/31/20131.25%4.38%
+CVH08/20/2012Aetna Inc. (AET)Cash Plus Stock$7.3 billion$45.00$44.451,131,54706/30/20131.25%2.33%
+SEH10/24/2012PolyOne Corporation (POL)Cash Plus Stock$393 million$9.00$8.90179,73303/31/20131.10%3.85%
+TNS12/11/2012an Affiliate of Siris Capital Group (N/A)All Cash$862 million$21.00$20.78602,69203/31/20131.06%3.72%
+YTEC08/13/2012New Sihitech Limited (N/A)All Cash$79.5 million$3.90$3.8623,81012/31/20121.04%27.02%
+LMLP09/24/2012Digital River, Inc. (DRIV)All Cash$102.8 million$3.45$3.415197,49903/31/20131.02%3.60%
+VSNT10/01/2012UNICOM Systems, Inc. (N/A)All Cash$37 million$13.00$12.876,10401/31/20131.01%8.19%
+ALNC10/08/2012NBT Bancorp Inc. (NBTB)All Stock$233.4 million$42.80$42.385,03706/30/20130.98%1.84%
+RBN08/09/2012National Oilwell Varco, Inc. (NOV)All Cash$2.5 billion$60.00$59.45249,09912/31/20120.93%24.12%
+HLYS12/10/2012Sequential Brands Group, Inc. (N/A)All Cash$63.2 million$2.25$2.23194,24103/31/20130.90%3.15%
+RAH11/27/2012ConAgra Foods, Inc. (CAG)All Cash$6.8 billion$90.00$89.201,581,17003/31/20130.90%3.15%
+WRC10/31/2012PVH Corp. (PVH)Cash Plus Stock$2.9 billion$71.49$70.91398,00603/31/20130.82%2.89%
+SRZ08/22/2012Health Care REIT, Inc. (HCN)All Cash$845 million$14.50$14.39607,64006/30/20130.76%1.43%
+KYAK11/08/2012priceline.com Incorporated (PCLN)All Cash$1.65 billion$40.00$39.71103,02303/31/20130.73%2.56%
+TIE11/09/2012Precision Castparts Corp. (PCP)All Cash$2.9 billion$16.50$16.393,544,06412/31/20120.67%17.50%
+GNOM09/17/2012BGI-Shenzhen (N/A)All Cash$117.6 million$3.15$3.13113,55912/31/20120.64%16.66%
+SBX08/28/2012Enstar Group Limited (ESGR)All Cash$249 million$11.11$11.0590,98103/31/20130.54%1.91%
+EPHC12/06/2012TD Bank Group (N/A)All Cash$668 million$28.00$27.85224,81006/30/20130.54%1.01%
+TEA11/14/2012Starbucks Corporation (SBUX)All Cash$620 million$15.50$15.45168,91812/31/20120.32%8.44%
+PLFE07/13/2012Athene Annuity (N/A)All Cash$415 million$14.00$13.96121,14112/31/20120.29%7.47%
+ACOM10/22/2012Permira Advisers LLP (N/A)All Cash$1.6 billion$32.00$31.911,276,02003/31/20130.28%0.99%
+MDF11/05/2012Humana Inc. (HUM)All Cash$850 million$11.25$11.22487,57303/31/20130.27%0.94%
+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$9.48282,62112/31/20120.21%5.50%
+TPCG08/27/2012First Reserve Corporation and SK Capital Partners (N/A)All Cash$850 million$45.00$44.9389,25812/31/20120.16%4.06%
+AGP07/09/2012WellPoint Inc. (WLP)All Cash$4.9 billion$92.00$91.86637,30703/31/20130.15%0.53%
+OPNT10/29/2012Riverbed Technology, Inc. (RVBD)Cash Plus Stock$921 million$41.48$41.42207,11812/31/20120.14%3.56%
+WMCO11/01/2012Curtiss-Wright Corp. (CW)All Cash$119 million$15.42$15.406,15003/31/20130.13%0.46%
+DUSA11/08/2012Sun Pharmaceutical Industries Limited (N/A)All Cash$230 million$8.00$7.99200,34403/31/20130.13%0.44%
+JDAS11/01/2012RedPrairie (N/A)All Cash$1.9 billion$45.00$44.951,567,09212/31/20120.11%2.90%
+CASC10/22/2012Toyota Industries Corporation (N/A)All Cash$759 million$65.00$64.9540,72812/31/20120.08%2.01%
+CHG02/21/2012Fortis Inc. (N/A)All Cash$1.5 billion$65.00$64.9941,00003/31/20130.02%0.05%
+SHF10/30/2012Reckitt Benckiser LLC (N/A)All Cash$1.4 billion$42.00$42.00157,91812/31/20120.00%0.00%
+YDNT12/04/2012affiliate of Linden Capital Partners (N/A)All Cash$314 million$39.50$39.7318,85303/31/2013-0.58%-2.03%
+ARCT09/06/2012Realty Income Corp. (O)All Stock$2.95 billion$11.60$11.731,740,05303/31/2013-1.11%-3.91%
+GEN07/23/2012NRG Energy, Inc. (NRG)All Stock$1.7 billion$2.80$2.8769,593,28803/31/2013-2.55%-8.95%
+WCBO09/26/2012Columbia Banking System, Inc. (COLB)All Stock$506 million$20.81$21.6224,92203/31/2013-3.73%-13.10%
+MMR12/05/2012Freeport-McMoRan Copper & Gold Inc. (FCX)All Cash3.4 billion$14.75$15.525,775,71806/30/2013-4.96%-9.29%
+ABVA05/03/2012Washington First Bankshares (WFBI)All Stock$24.4 million$4.46$4.715N/A12/31/2012-5.47%-142.56%
+WAVE08/02/2012AT&T, Inc. (T)All Cash$600 million$1.00$1.182,11612/31/2012-15.25%-397.70%
+TARO08/13/2012Sun Pharmaceutical (N/A)All Cash$1.45 billion$39.50$47.8034,89012/31/2012-17.36%-452.70%

Voluntary Disclosure: I hold a long position in CYBI and a short position in $15 January TEA puts.