Merger Arbitrage Mondays – December 24, 2012

  • December 24, 2012

Just as we were expecting a slow weekend ahead of the holidays, merger activity spiked sharply higher with thirteen new deals announced last week and eight 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 2012183
Total Number of Deals Not Completed in 20125
Total Number of Pending Deals
Cash Deals48
Stock Deals15
Stock & Cash Deals8
Total Number of Pending Deals71
Total Deal Size$558.7 billion

New Deals:

  1. The acquisition of Caribou Coffee Company (CBOU) by Joh. A. Benckiser Group for $340 million or $16.00 per share in cash.
  2. The acquisition of Clearwire Corporation (CLWR) by Sprint Nextel (S) for $2.97 per share in cash. The company will pay $2.2 billion to acquire the 50% stake it doesn’t already own.
  3. The acquisition of Arbitron (ARB) by Nielsen Holdings N.V. (NLSN) for $48.00 per share in cash.
  4. The acquisition of Alterra Capital Holdings (ALTE) by Markel (MKL) for $3.13 billion in a cash plus stock deal. Under the terms of the agreement, shareholders of Alterra will receive 0.04315 Markel common shares (with cash paid for fractional shares) plus a cash payment of $10.
  5. The acquisition of Knight Capital Group (KCG) by GETCO Holding Company for $1.4 billion. Under the agreement, existing Knight shareholders (other than GETCO) will have the right to elect to receive $3.75 per share in cash or one share of common stock of the new holding company. According to the press release, “The cash consideration will be subject to pro-ration if the holders elect to receive more than $720 million in cash in the aggregate. Jefferies & Company, Inc. and its affiliates, the largest shareholders in Knight, have agreed to limit their cash election to 50 percent of their Knight shares to the extent it is necessary to ensure that other Knight shareholders can receive their desired cash level up to the 720 million dollar aggregate amount.” We are treating this as an all-cash deal.
  6. The acquisition of Focus Media Holding (FMCN) by Giovanna Parent Limited for $3.7 billion or $27.50 per ADS (representing 5 common shares) in cash in a “going private” transaction.
  7. The acquisition of NYSE Euronext (NYX) by IntercontinentalExchange (ICE) for $8.2 billion. Under the terms of the agreement, NYX shareholders will have the option to elect to receive  (i) $33.12 in cash, (ii) 0.2581 ICE common shares or (iii) a mix of $11.27 in cash plus 0.1703 ICE common shares. The offer is subject to a maximum cash consideration of approximately $2.7 billion and a maximum aggregate number of ICE common shares of approximately 42.5 million. The overall mix of the $8.2 billion of merger consideration being paid by ICE is approximately 67% shares and 33% cash. We are treating this as an all stock deal.
  8. The acquisition of Roma Financial (ROMA) by Investors Bancorp (ISBC) for $113.5 million in an all stock deal. Under the terms of the agreement, each outstanding share of Roma Financial common stock, including the 74.5% of shares owned by mutual holding company Roma MHC, will be converted into 0.8653 shares of Investors Bancorp common stock upon completion of the merger.
  9. The acquisition of Eloqua (ELOQ) by Oracle Corporation (ORCL) for $871 million or $23.50 per share in cash less than 5 months after Eloqua’s IPO.
  10. The acquisition of Westway Group (WWAY) by EQT Infrastructure II for $419 million or $6.70 per share in cash.
  11. The acquisition of Ameristar Casinos (ASCA) by Pinnacle Entertainment (PNK) for $2.8 billion or $26.50 per share in cash.
  12. The acquisition of FirstCity Financial (FCFC) by Varde Partners for $225 million or $10.00 per share in cash.
  13. The acquisition of ShangPharma Corporation (SHP) by ShangPharma Holdings Limited for $173 million or $9.00 per ADS (representing 18 common shares) in cash in a “going private” transaction.

Deal Updates:

  1. On December 19, 2012, PLX Technology (PLXT) and Integrated Device Technology (IDTI) mutually terminated their merger agreement.

Closed Deals:

  1. The acquisition of GenOn Energy (GEN) by NRG Energy (NRG) on December 17, 2012.
  2. The acquisition of Schiff Nutrition International (SHF) by Reckitt Benckiser on December 17, 2012
  3. The acquisition of TPC Group (TPCG) by First Reserve Corporation and SK Capital Partners on December 20, 2012.
  4. The acquisition of OPNET Technologies (OPNT) by Riverbed Technology (RVBD) on December 20, 2012
  5. The acquisition of DUSA Pharmaceuticals (DUSA) by Sun Pharmaceutical Industries Limited on December 21, 2012.
  6. The acquisition of JDA Software Group (JDAS) by RedPrairie on December 21, 2012.
  7. The acquisition of Metropolitan Health Networks (MDF) by Humana (HUM) on December 21, 2012.
  8. The acquisition of Versant (VSNT) by Actian Corporation on December 21, 2012.

Top 10 deals with largest spreads:

SymbolAnnounced

Date

Acquiring

Company

Closing

Price

Last

Price

Closing

Date

ProfitAnnualized

Profit

ECBE09/25/2012Crescent Financial Bancshares, Inc. (CRFN)$16.22$14.2103/31/201314.17%53.32%
SOMX12/11/2012Pernix Therapeutics Holdings, Inc. (PTX)$3.48$3.0706/30/201313.36%25.93%
VRTA05/31/2012Vestin Realty Mortgage II, Inc. (VRTB)$1.28$1.1512/31/201211.23%585.81%
ABVA05/03/2012Washington First Bankshares (WFBI)$5.21$4.8312/31/20127.89%411.45%
FMCN12/19/2012Giovanna Parent Limited (N/A)$27.50$25.5906/30/20137.46%14.49%
HOGS11/26/2012Chairman and CEO Xianfu Zhu (N/A)$13.50$12.5903/31/20137.23%27.20%
OUTD11/16/2012InterMedia Outdoors Holdings, LLC (N/A)$8.00$7.4703/31/20137.10%26.70%
WSB09/10/2012Old Line Bancshares, Inc. (OLBK)$6.21$5.8406/30/20136.30%12.24%
KCG12/19/2012GETCO Holding Company (N/A)$3.75$3.5306/30/20136.23%12.10%
SHP12/21/2012ShangPharma Holdings Limited (N/A)$9.00$8.5706/30/20135.02%9.74%

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

+ECBE09/25/2012Crescent Financial Bancshares, Inc. (CRFN)All Stock$51.6 million$16.22$14.212,25003/31/201314.17%53.32%
+SOMX12/11/2012Pernix Therapeutics Holdings, Inc. (PTX)All Cash$25 million$3.48$3.0766,71306/30/201313.36%25.93%
+VRTA05/31/2012Vestin Realty Mortgage II, Inc. (VRTB)All StockN/A$1.28$1.15N/A12/31/201211.23%585.81%
+ABVA05/03/2012Washington First Bankshares (WFBI)All Stock$24.4 million$5.21$4.839,03812/31/20127.89%411.45%
+FMCN12/19/2012Giovanna Parent Limited (N/A)All Cash$3.7 billion$27.50$25.592,576,05506/30/20137.46%14.49%
+HOGS11/26/2012Chairman and CEO Xianfu Zhu (N/A)All Cash$418 million$13.50$12.59282,82503/31/20137.23%27.20%
+OUTD11/16/2012InterMedia Outdoors Holdings, LLC (N/A)All CashN/A$8.00$7.4775,24003/31/20137.10%26.70%
+WSB09/10/2012Old Line Bancshares, Inc. (OLBK)All Stock$49 million$6.21$5.843,91006/30/20136.30%12.24%
+KCG12/19/2012GETCO Holding Company (N/A)All Cash$1.4 billion$3.75$3.536,088,69106/30/20136.23%12.10%
+SHP12/21/2012ShangPharma Holdings Limited (N/A)All Cash$173 million$9.00$8.57279,27506/30/20135.02%9.74%
+CYMI10/17/2012ASML Holding NV (ASML)Cash Plus Stock$2.5 billion$92.97$88.85493,12106/30/20134.64%9.00%
+GEOY07/23/2012DigitalGlobe, Inc. (DGI)Cash Plus Stock$900 million$31.68$30.32241,65703/31/20134.50%16.92%
+BXG11/14/2011BFC Financial Corporation (BFCF)All Cash$150 million$10.00$9.58316,95212/31/20124.38%228.60%
+PRWT10/30/2012AmericanWest Bank (N/A)All Cash$16.6 million$1.65$1.5914,28106/30/20133.77%7.33%
+CFFC08/02/2012City Holding Company (CHCO)All Stock$26.1 million$6.12$5.911,40603/31/20133.58%13.46%
+RVR11/15/2012Parthenon Capital Partners (N/A)All Cash$79.5 million$21.93$21.182,72303/31/20133.54%13.32%
+ARB12/18/2012Nielsen Holdings N.V. (NLSN)All CashN/A$48.00$46.441,968,75003/31/20133.36%12.64%
+CLWR12/17/2012Sprint Nextel Corp. (S)All Cash$2.2 billion$2.97$2.87514,708,57003/31/20133.30%12.43%
+FCAL11/06/2012PacWest Bancorp (PACW)All Cash$231 million$8.00$7.75134,48403/31/20133.23%12.14%
+JEF11/12/2012Leucadia National Corp. (LUK)All Stock$3.59 billion$19.31$18.733,925,69003/31/20133.10%11.66%
+FCFC12/21/2012Varde Partners Inc. (N/A)All Cash$225 million$10.00$9.701,722,42206/30/20133.09%6.00%
+NXY07/23/2012CNOOC Ltd. (CEO)All Cash$15.1 billion$27.50$26.7212,407,61112/31/20122.92%152.21%
+HCBK08/27/2012M&T Bank Corporation (MTB)All Stock$3.7 billion$8.39$8.169,122,60303/31/20132.83%10.66%
+YMI12/12/2012Gilead Sciences Inc. (GILD)All Cash$510 million$2.95$2.871,751,46903/31/20132.79%10.49%
+ANNB10/23/2012F.N.B. Corporation (FNB)All Stock$51 million$12.37$12.0515,06004/30/20132.63%7.57%
+ALNC10/08/2012NBT Bancorp Inc. (NBTB)All Stock$233.4 million$44.41$43.2758,91006/30/20132.63%5.10%
+CRBC09/13/2012FirstMerit Corporation (FMER)All Stock$912 million$19.59$19.13949,82406/30/20132.41%4.68%
+CYBI10/17/2012UM Holdings, Ltd. (N/A)All CashN/A$2.55$2.49112,67103/31/20132.41%9.07%
+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$9.28588,30712/31/20122.37%123.61%
+ALTE12/19/2012Markel Corp. (MKL)Cash Plus Stock$3.13 billion$28.60$28.002,740,38906/30/20132.13%4.14%
+ROMA12/19/2012Investors Bancorp Inc. (ISBC)All Stock$113.5 million$15.39$15.10250,76606/30/20131.94%3.78%
+HLYS12/10/2012Sequential Brands Group, Inc. (N/A)All Cash$63.2 million$2.25$2.21138,43403/31/20131.81%6.81%
+PSSI10/25/2012McKesson Corporation (MCK)All Cash$2.1 billion$29.00$28.502,072,84003/31/20131.75%6.60%
+PXP12/05/2012Freeport-McMoRan Copper & Gold Inc. (FCX)Cash Plus Stock$6.9 billion$46.93$46.157,978,71406/30/20131.69%3.29%
+KBW11/05/2012Stifel Financial Corp. (SF)All Cash$575 million$15.50$15.25633,48103/31/20131.64%6.17%
+IN12/10/2012Honeywell International Inc. (HON)All Cash$600 million$10.00$9.851,306,51106/30/20131.52%2.96%
+CVH08/20/2012Aetna Inc. (AET)Cash Plus Stock$7.3 billion$45.42$44.741,922,35606/30/20131.51%2.93%
+RTLX11/28/2012NCR Corp. (NCR)All Cash$660 million$30.00$29.6529,89603/31/20131.18%4.44%
+LMLP09/24/2012Digital River, Inc. (DRIV)All Cash$102.8 million$3.45$3.41202,72303/31/20131.17%4.41%
+SEH10/24/2012PolyOne Corporation (POL)Cash Plus Stock$393 million$9.01$8.91392,84003/31/20131.09%4.10%
+CASC10/22/2012Toyota Industries Corporation (N/A)All Cash$759 million$65.00$64.30589,52212/31/20121.09%56.77%
+NYX12/20/2012IntercontinentalExchange, Inc. (ICE)All Stock$8.2 billion$32.59$32.2525,063,64812/31/20131.04%1.02%
+GNOM09/17/2012BGI-Shenzhen (N/A)All Cash$117.6 million$3.15$3.12572,43112/31/20120.96%50.14%
+BTFG05/29/2012Trustmark Corporation (TRMK)All Stock$55.4 million$2.82$2.7923,79412/31/20120.94%49.06%
+TNS12/11/2012an Affiliate of Siris Capital Group (N/A)All Cash$862 million$21.00$20.81393,93503/31/20130.91%3.44%
+EPHC12/06/2012TD Bank Group (N/A)All Cash$668 million$28.00$27.76403,74206/30/20130.86%1.68%
+RBN08/09/2012National Oilwell Varco, Inc. (NOV)All Cash$2.5 billion$60.00$59.50663,97912/31/20120.84%43.82%
+WRC10/31/2012PVH Corp. (PVH)Cash Plus Stock$2.9 billion$71.78$71.20882,08703/31/20130.82%3.08%
+RAH11/27/2012ConAgra Foods, Inc. (CAG)All Cash$6.8 billion$90.00$89.29966,37403/31/20130.80%2.99%
+SRZ08/22/2012Health Care REIT, Inc. (HCN)All Cash$845 million$14.50$14.401,055,28606/30/20130.69%1.35%
+SBX08/28/2012Enstar Group Limited (ESGR)All Cash$249 million$11.11$11.04421,06303/31/20130.63%2.39%
+SHAW07/30/2012Chicago Bridge & Iron Company (CBI)Cash Plus Stock$3 billion$46.84$46.553,564,97703/31/20130.62%2.33%
+YTEC08/13/2012New Sihitech Limited (N/A)All Cash$79.5 million$3.90$3.8815,40012/31/20120.52%26.88%
+ZZ09/27/2012Tempur-Pedic International Inc. (TPX)All Cash$1.3 billion$2.20$2.191,117,02406/30/20130.46%0.89%
+AGP07/09/2012WellPoint Inc. (WLP)All Cash$4.9 billion$92.00$91.706,353,51603/31/20130.33%1.23%
+YDNT12/04/2012affiliate of Linden Capital Partners (N/A)All Cash$314 million$39.50$39.3833,14703/31/20130.30%1.15%
+PLFE07/13/2012Athene Annuity (N/A)All Cash$415 million$14.00$13.97328,04212/31/20120.21%11.20%
+TIE11/09/2012Precision Castparts Corp. (PCP)All Cash$2.9 billion$16.50$16.478,442,37312/31/20120.18%9.50%
+WWAY12/20/2012EQT Infrastructure II (N/A)All Cash$419 million$6.70$6.691,352,85603/31/20130.15%0.56%
+ACOM10/22/2012Permira Advisers LLP (N/A)All Cash$1.6 billion$32.00$32.00944,71903/31/20130.00%0.00%
+TEA11/14/2012Starbucks Corporation (SBUX)All Cash$620 million$15.50$15.50628,75812/31/20120.00%0.00%
+ASCA12/21/2012Pinnacle Entertainment Inc. (PNK)All Cash$2.8 billion$26.50$26.507,099,87809/30/20130.00%0.00%
+KYAK11/08/2012priceline.com Incorporated (PCLN)All Cash$1.65 billion$40.00$40.02176,89803/31/2013-0.05%-0.19%
+ELOQ12/20/2012Oracle Corporation (ORCL)All Cash$871 million$23.50$23.55979,04806/30/2013-0.21%-0.41%
+CHG02/21/2012Fortis Inc. (N/A)All Cash$1.5 billion$65.00$65.21206,25203/31/2013-0.32%-1.21%
+ARCT09/06/2012Realty Income Corp. (O)All Stock$2.95 billion$11.70$11.743,256,41803/31/2013-0.34%-1.28%
+CBOU12/17/2012Joh. A. Benckiser Group (N/A)All Cash$340 millon$16.00$16.19525,59703/31/2013-1.17%-4.42%
+WCBO09/26/2012Columbia Banking System, Inc. (COLB)All Stock$506 million$21.87$22.14252,59103/31/2013-1.24%-4.65%
+MMR12/05/2012Freeport-McMoRan Copper & Gold Inc. (FCX)All Cash3.4 billion$14.75$15.722,811,22406/30/2013-6.17%-11.98%
+TARO08/13/2012Sun Pharmaceutical (N/A)All Cash$1.45 billion$39.50$48.3014,06112/31/2012-18.22%-950.01%
+WAVE08/02/2012AT&T, Inc. (T)All Cash$600 million$1.00$1.232,00112/31/2012-18.70%-975.03%

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