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Merger Arbitrage Mondays – March 11, 2013

  • March 10, 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:

Total Number of Deals Closed in 201326
Total Number of Pending Deals
Cash Deals51
Stock Deals19
Stock & Cash Deals5
Total Number of Pending Deals75
Total Deal Size$181.34 billion

New Deals:

  1. 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.
  2. 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.
  3. 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.
  4. The acquisition of Hot Topic (HOTT) by Sycamore Partners for $600 million or $14.00 per share in cash. Becker Drapkin Management, which owns 8.4% of Hot Topic has agreed to back the deal. We mentioned several insider purchases by Becker Drapkin Management in the $6 to $9 range last year. Becker Drapkin Partners is an activist fund that tends to focus on small cap companies.

Deal Updates:

The battle over Dell (DELL) has intensified with Carl Icahn joining the ranks of investors that feel that founder Michael Dell is not paying enough for the company. Mr. Icahn is instead suggesting that Dell pay a $9 special dividend.

Top 10 deals with largest spreads:

SymbolAnnounced

Date

Acquiring

Company

Closing

Price

Last

Price

Closing

Date

ProfitAnnualized

Profit

ACFC02/26/2013Bond Street Holdings (N/A)$5.00$4.3006/30/201316.28%53.53%
NYX12/20/2012IntercontinentalExchange, Inc. (ICE)$40.93$37.9712/31/20137.81%9.66%
FMCN12/19/2012Giovanna Parent Limited (N/A)$27.50$25.8806/30/20136.26%20.58%
WSB09/10/2012Old Line Bancshares, Inc. (OLBK)$6.80$6.4106/30/20136.04%19.85%
WCBO09/26/2012Columbia Banking System, Inc. (COLB)$25.33$23.9203/31/20135.91%107.81%
BRY02/21/2013LinnCo, LLC (LNCO)$49.90$47.2006/30/20135.72%18.81%
PVFC02/19/2013F.N.B. Corporation (FNB)$3.96$3.7609/30/20135.32%9.56%
HOGS11/26/2012Chairman and CEO Xianfu Zhu (N/A)$13.50$12.8503/31/20135.06%92.32%
WH02/21/2013WSP OCTG GROUP Ltd. (N/A)$3.20$3.0506/30/20134.92%16.17%
WMS01/31/2013Scientific Games Corporation (SGMS)$26.00$24.9912/31/20134.04%5.00%

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

+ACFC02/26/2013Bond Street Holdings (N/A)All CashN/A$5.00$4.3079,71906/30/201316.28%53.53%
+NYX12/20/2012IntercontinentalExchange, Inc. (ICE)All Stock$8.2 billion$40.93$37.971,087,77512/31/20137.81%9.66%
+FMCN12/19/2012Giovanna Parent Limited (N/A)All Cash$3.7 billion$27.50$25.882,859,49206/30/20136.26%20.58%
+WSB09/10/2012Old Line Bancshares, Inc. (OLBK)All Stock$49 million$6.80$6.413,90006/30/20136.04%19.85%
+WCBO09/26/2012Columbia Banking System, Inc. (COLB)All Stock$506 million$25.33$23.9228,61103/31/20135.91%107.81%
+BRY02/21/2013LinnCo, LLC (LNCO)All Stock$4.3 billion$49.90$47.20660,77806/30/20135.72%18.81%
+PVFC02/19/2013F.N.B. Corporation (FNB)All Stock$106.4 million$3.96$3.76174,20309/30/20135.32%9.56%
+HOGS11/26/2012Chairman and CEO Xianfu Zhu (N/A)All Cash$418 million$13.50$12.85325,45603/31/20135.06%92.32%
+WH02/21/2013WSP OCTG GROUP Ltd. (N/A)All Cash$893.6 million$3.20$3.0546,22606/30/20134.92%16.17%
+WMS01/31/2013Scientific Games Corporation (SGMS)All Cash1.5 billion$26.00$24.99921,30912/31/20134.04%5.00%
+IPT03/01/2013Party City (N/A)All Cash$35 million$0.45$0.43587,39406/30/20133.45%11.34%
+VCBI01/30/2013United Bankshares Inc. (UBSI)All Stock$490.6 million$14.38$13.9258,49909/30/20133.29%5.91%
+NFSB03/05/2013SI Financial Group Inc. (SIFI)All Stock$61.3 million$17.78$17.22210,78609/30/20133.23%5.81%
+SSRX02/08/2013Decade Sunshine Limited (N/A)All Cash$340 million$15.40$14.9285,90806/30/20133.22%10.58%
+ADY03/04/2013Diamond Infant Formula Holding Limited (N/A)All Cash$147 million$7.40$7.1788,73106/30/20133.21%10.55%
+CPNO01/29/2013Kinder Morgan Energy Partners, L.P. (KMP)All Stock$5 billion$38.97$37.80610,33009/30/20133.10%5.58%
+SVN02/28/2013Keystone Lodging Holdings Limited (N/A)All Cash$688 million$13.80$13.39183,11112/31/20133.06%3.79%
+CYMI10/17/2012ASML Holding NV (ASML)Cash Plus Stock$2.5 billion$100.20$97.26172,85106/30/20133.03%9.95%
+FMFC02/07/2013Renasant Corp. (RNST)All Stock$118.8 million$14.42$14.0013,26009/30/20132.98%5.36%
+SOMH01/29/2013Lakeland Bancorp Inc. (LBAI)All Stock$64.4 million$11.84$11.5033,72909/30/20132.98%5.35%
+ARB12/18/2012Nielsen Holdings N.V. (NLSN)All CashN/A$48.00$47.06414,38703/31/20132.00%36.45%
+ECBE09/25/2012Crescent Financial Bancshares, Inc. (CRFN)All Stock$51.6 million$15.02$14.764,11503/31/20131.74%31.71%
+BXG11/14/2011BFC Financial Corporation (BFCF)All Cash$150 million$10.00$9.8355,17503/31/20131.73%31.56%
+FCFC12/21/2012Varde Partners Inc. (N/A)All Cash$225 million$10.00$9.8357,45506/30/20131.73%5.69%
+FFCH02/20/2013SCBT Financial Corporation (SCBT)All Stock$302.4 million$21.26$20.9656,55609/30/20131.42%2.55%
+HOTT03/07/2013Sycamore Partners (N/A)All Cash$600 million$14.00$13.837,868,33606/30/20131.23%4.04%
+NLP12/27/2012J.D. Nichols & Brian F. Lavin (N/A)All CashN/A$7.50$7.415,70606/30/20131.21%3.99%
+ALC02/26/2013TPG (N/A)All Cash$278 million$12.00$11.86727,37906/30/20131.18%3.88%
+IN12/10/2012Honeywell International Inc. (HON)All Cash$600 million$10.00$9.89704,14006/30/20131.11%3.66%
+SHP12/21/2012ShangPharma Holdings Limited (N/A)All Cash$173 million$9.00$8.9135,07206/30/20131.01%3.32%
+GNOM09/17/2012BGI-Shenzhen (N/A)All Cash$117.6 million$3.15$3.1260,68501/25/20130.96%0.00%
+ANNB10/23/2012F.N.B. Corporation (FNB)All Stock$51 million$13.29$13.1740004/30/20130.93%6.82%
+KCG12/19/2012GETCO Holding Company (N/A)All Cash$1.4 billion$3.75$3.72423,73306/30/20130.81%2.65%
+ASCA12/21/2012Pinnacle Entertainment Inc. (PNK)All Cash$2.8 billion$26.50$26.29209,27909/30/20130.80%1.44%
+BCDS12/26/2012Diodes Incorporated (DIOD)All Cash$151 million$8.00$7.94N/A03/31/20130.76%13.79%
+NTSP02/19/2013Total System Services, Inc. (TSS)All Cash$1.4 billion$16.00$15.89775,27506/30/20130.69%2.28%
+ROMA12/19/2012Investors Bancorp Inc. (ISBC)All Stock$113.5 million$15.55$15.4517,89906/30/20130.64%2.12%
+KSWS01/17/2013E. Land (N/A)All Cash$170 million$4.75$4.7280,97006/30/20130.64%2.09%
+ALTE12/19/2012Markel Corp. (MKL)Cash Plus Stock$3.13 billion$31.32$31.14354,84806/30/20130.59%1.95%
+PXP12/05/2012Freeport-McMoRan Copper & Gold Inc. (FCX)Cash Plus Stock$6.9 billion$46.74$46.482,068,86006/30/20130.55%1.81%
+CASC10/22/2012Toyota Industries Corporation (N/A)All Cash$759 million$65.00$64.6754,43102/28/20130.51%0.00%
+CRBC09/13/2012FirstMerit Corporation (FMER)All Stock$912 million$21.17$21.07183,98506/30/20130.46%1.51%
+PVSW01/28/2013an affiliate of Actian Corporation (N/A)All Cash$161.9 million$9.20$9.1696,04006/30/20130.44%1.44%
+HCBK08/27/2012M&T Bank Corporation (MTB)All Stock$3.7 billion$8.74$8.701,435,89103/31/20130.41%7.50%
+SEH10/24/2012PolyOne Corporation (POL)Cash Plus Stock$393 million$10.14$10.10126,65703/31/20130.37%6.83%
+ART02/14/2013Aberdeen Asset Management PLC (N/A)All CashN/A$2.75$2.74320,48108/15/20130.36%0.85%
+CVH08/20/2012Aetna Inc. (AET)Cash Plus Stock$7.3 billion$46.93$46.78658,26006/30/20130.31%1.03%
+DUF12/30/2012a consortium comprising controlled affiliates of or funds managed by The Carlyle Group, Stone Point Capital LLC, Pictet & Cie and Edmond de Rothschild Group (N/A)All Cash$665.5 million$15.55$15.51157,91606/30/20130.26%0.85%
+BIOC01/30/2013a holding company controlled by JLL Partners, Inc. (N/A)All Cash$123 million$7.25$7.248,86203/31/20130.14%2.52%
+APKT02/04/2013Oracle Corporation (ORCL)All Cash$1.7 billion$29.25$29.221,108,58006/30/20130.10%0.34%
+MUSA02/06/2013Reliance Steel & Aluminum Co. (RS)All Cash$1.2 billion$20.65$20.64140,78606/30/20130.05%0.16%
+BOX01/22/2013Ontario Teachers’ Pension Plan (N/A)All Cash$467 million$23.00$22.99108,88306/30/20130.04%0.14%
+ZZ09/27/2012Tempur-Pedic International Inc. (TPX)All Cash$1.3 billion$2.20$2.206,352,80903/18/20130.00%0.00%
+PRWT10/30/2012AmericanWest Bank (N/A)All Cash$16.6 million$1.65$1.653,81806/30/20130.00%0.00%
+EPOC01/07/2013athenahealth, Inc. (ATHN)All Cash$293 million$11.75$11.7562,59304/30/20130.00%0.00%
+ORCC01/31/2013ACI Worldwide, Inc. (ACIW)All Cash$263 million$3.85$3.85130,82703/31/20130.00%0.00%
+ALNC10/08/2012NBT Bancorp Inc. (NBTB)All Stock$233.4 million$47.48$47.4944,79406/30/2013-0.02%-0.08%
+HNZ02/14/2013Berkshire Hathaway and 3G Capital (N/A)All Cash$28 billion$72.50$72.522,161,10709/30/2013-0.03%-0.05%
+ZIP01/02/2013Avis Budget Group, Inc. (CAR)All Cash$500 million$12.25$12.26377,66704/30/2013-0.08%-0.60%
+EPHC12/06/2012TD Bank Group (N/A)All Cash$668 million$28.00$28.03126,40306/30/2013-0.11%-0.35%
+AACC03/06/2013Encore Capital Group, Inc. (ECPG)All Cash$200 million$6.50$6.52598,33606/30/2013-0.31%-1.01%
+CHG02/21/2012Fortis Inc. (N/A)All Cash$1.5 billion$65.00$65.3120,69406/30/2013-0.47%-1.56%
+SHS03/01/2013Danfoss (N/A)All Cash$629 milion$58.50$58.8062,88406/30/2013-0.51%-1.68%
+ES01/07/2013a subsidiary of Energy Capital Partners II, LLC (N/A)All Cash$1.1 billion$3.75$3.77685,81906/30/2013-0.53%-1.74%
+KYAK11/08/2012priceline.com Incorporated (PCLN)All Cash$1.65 billion$40.00$40.92634,18103/31/2013-2.25%-41.03%
+CXS01/31/2013Annaly Capital Management, Inc. (NLY)All Cash$1 billion$13.00$13.33902,05904/30/2013-2.48%-18.07%
+FCAL11/06/2012PacWest Bancorp (PACW)All Cash$231 million$8.00$8.2328,36503/31/2013-2.79%-51.00%
+DELL02/05/2013Michael Dell, Dell�s Founder, Chairman and Chief Executive Officer, in partnership with global technology investment firm Silver Lake (N/A)All Cash$24.4 billion$13.65$14.1618,400,54207/31/2013-3.60%-9.26%
+CLWR12/17/2012Sprint Nextel Corp. (S)All Cash$2.2 billion$2.97$3.181,832,59803/31/2013-6.60%-120.52%
+SOMX12/11/2012Pernix Therapeutics Holdings, Inc. (PTX)All Cash$25 million$2.78$3.00N/A06/30/2013-7.33%-24.11%
+OMX02/20/2013Office Depot, Inc. (ODP)All Stock$1.17 billion$11.11$12.091,016,62812/31/2013-8.11%-10.03%
+MMR12/05/2012Freeport-McMoRan Copper & Gold Inc. (FCX)All Cash3.4 billion$14.75$16.20779,55306/30/2013-8.95%-29.43%
+OUTD11/16/2012InterMedia Outdoors Holdings, LLC (N/A)All CashN/A$8.00$8.8094,35703/31/2013-9.09%-165.91%
+VRTA05/31/2012Vestin Realty Mortgage II, Inc. (VRTB)All StockN/A$0.91$1.155,40403/31/2013-20.85%-380.55%
+WAVE08/02/2012AT&T, Inc. (T)All Cash$600 million$1.00$1.44N/A03/31/2013-30.56%-557.64%