Merger Arbitrage Mondays – March 11, 2013
Merger activity increased 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:
New Deals:
- The acquisition of Feihe International (ADY) by Diamond Infant Formula in a “going private” transaction for $147 million or $7.40 per share in cash.
- The acquisiion of Newport Bancorp (NFSB) by SI Financial Group (SIFI) for $61.3 million. Under the terms of the merger agreement, stockholders of Newport Bancorp will have the right to elect to receive either $17.55 in cash or 1.5129 shares of SI Financial Group common stock in exchange for each share of Newport Bancorp. We have taken a conservative approach with this deal and are treating it as an all stock deal, since half the consideration will be paid in cash and half in stock.
- The acquisition of Asset Acceptance Capital (AACC) by Encore Capital Group (ECPG) for $200 million or $6.50 per share. The press release states “Asset Acceptance shareholders will have the option to receive their consideration in cash or Encore stock or any combination of cash and Encore stock, at their election, with the aggregate stock consideration across all stockholders capped at 25 percent of the total equity consideration to be received”. We are going to treat this transaction as an all cash deal.
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