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Merger Arbitrage Mondays – March 25, 2013

  • March 25, 2013

Merger activity increased last week with three new deals announced and two 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 201335
Total Number of Pending Deals
Cash Deals48
Stock Deals18
Stock & Cash Deals5
Total Number of Pending Deals71
Total Deal Size$185.99 billion

New Deals:

  1. The acquisition of Edac Technologies (EDAC) by GB Aero Engine LLC, an affiliate of  Greenbriar Equity Group LLC for $104.1 million or $17.75 per share in cash.
  2. The acquisition of Palomar Medical Technologies (PMTI) by Cynosure (CYNO) for $294 million. Upon completion of the merger, shareholders of Palomar Medial Technologies will receive $6.825 per share in cash and $6.825 per share in Cynosure common stock, subject to the following collar provisions: if the number determined by dividing the Target Stock Value by the Average Buyer Stock Price is less than or equal to 0.229, the Exchange Ratio shall be 0.229 and if the number determined by dividing the Target Stock Value by the Average Buyer Stock Price is greater than or equal to 0.283, the Exchange Ratio shall be 0.283. We are treating this as an all cash deal worth $13.65.
  3. The acquisition of Obagi Medical Products (OMPI) by Valeant Pharmaceuticals (VRX)  for $360 million or $19.75 per share in cash.

Deal Updates:

The battle over Dell (DELL) continues with both Carl Icahn and Blackstone said to have made bids of $15 and $14.25 respectively. The stock continues to rise and is now well above Michael Dell’s offer of $13.65/share.

Closed Deals:

  1. The acquisition of Complete Genomics (GNOM) by BGI-Shenzhen on March 18, 2013. It took 182 days for this deal to close.
  2. The acquisition of Sealy Corporation (ZZ) by Tempur-Pedic International (TPX) on March 18, 2013. It took 172 days for this deal to close.

Top 10 deals with largest spreads:

SymbolAnnounced

Date

Acquiring

Company

Closing

Price

Last

Price

Closing

Date

ProfitAnnualized

Profit

WCBO09/26/2012Columbia Banking System, Inc. (COLB)$26.59$24.3303/31/20139.31%566.27%
NYX12/20/2012IntercontinentalExchange, Inc. (ICE)$41.81$38.3912/31/20138.91%11.58%
NFSB03/05/2013SI Financial Group Inc. (SIFI)$18.43$17.5309/30/20135.12%9.88%
BRY02/21/2013LinnCo, LLC (LNCO)$48.05$45.7506/30/20135.03%18.92%
HOGS11/26/2012Chairman and CEO Xianfu Zhu (N/A)$13.50$12.8903/31/20134.73%287.88%
WSB09/10/2012Old Line Bancshares, Inc. (OLBK)$6.79$6.5006/30/20134.48%16.86%
PVFC02/19/2013F.N.B. Corporation (FNB)$4.02$3.8509/30/20134.36%8.42%
ACFC02/26/2013Bond Street Holdings (N/A)$5.00$4.8006/30/20134.17%15.68%
WH02/21/2013WSP OCTG GROUP Ltd. (N/A)$3.20$3.0806/30/20133.90%14.66%
WMS01/31/2013Scientific Games Corporation (SGMS)$26.00$25.1612/31/20133.34%4.34%

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

+WCBO09/26/2012Columbia Banking System, Inc. (COLB)All Stock$506 million$26.59$24.3328,02303/31/20139.31%679.52%
+NYX12/20/2012IntercontinentalExchange, Inc. (ICE)All Stock$8.2 billion$41.81$38.391,067,60412/31/20138.91%11.62%
+NFSB03/05/2013SI Financial Group Inc. (SIFI)All Stock$61.3 million$18.43$17.537,90009/30/20135.12%9.94%
+BRY02/21/2013LinnCo, LLC (LNCO)All Stock$4.3 billion$48.05$45.75378,85406/30/20135.03%19.11%
+HOGS11/26/2012Chairman and CEO Xianfu Zhu (N/A)All Cash$418 million$13.50$12.89184,12903/31/20134.73%345.46%
+WSB09/10/2012Old Line Bancshares, Inc. (OLBK)All Stock$49 million$6.79$6.50N/A06/30/20134.48%17.04%
+PVFC02/19/2013F.N.B. Corporation (FNB)All Stock$106.4 million$4.02$3.85127,03709/30/20134.36%8.47%
+ACFC02/26/2013Bond Street Holdings (N/A)All CashN/A$5.00$4.8016,30406/30/20134.17%15.84%
+WH02/21/2013WSP OCTG GROUP Ltd. (N/A)All Cash$893.6 million$3.20$3.0849,56606/30/20133.90%14.81%
+WMS01/31/2013Scientific Games Corporation (SGMS)All Cash1.5 billion$26.00$25.16871,46512/31/20133.34%4.35%
+PMTI03/18/2013Cynosure, Inc. (CYNO)All Cash$294 million$13.65$13.21466,89209/30/20133.33%6.47%
+FMCN12/19/2012Giovanna Parent Limited (N/A)All Cash$3.7 billion$27.50$26.683,915,86706/30/20133.07%11.69%
+VCBI01/30/2013United Bankshares Inc. (UBSI)All Stock$490.6 million$14.44$14.0126,23109/30/20133.05%5.93%
+SVN02/28/2013Keystone Lodging Holdings Limited (N/A)All Cash$688 million$13.80$13.40171,04812/31/20132.99%3.89%
+ADY03/04/2013Diamond Infant Formula Holding Limited (N/A)All Cash$147 million$7.40$7.1972,21306/30/20132.92%11.10%
+IPT03/01/2013Party City (N/A)All Cash$35 million$0.45$0.4395,00006/30/20132.51%9.53%
+ARB12/18/2012Nielsen Holdings N.V. (NLSN)All CashN/A$48.00$46.85135,32103/31/20132.45%179.19%
+ECBE09/25/2012Crescent Financial Bancshares, Inc. (CRFN)All Stock$51.6 million$15.23$14.8783506/30/20132.42%9.19%
+NLP12/27/2012J.D. Nichols & Brian F. Lavin (N/A)All CashN/A$7.50$7.355,32206/30/20132.04%7.76%
+FMFC02/07/2013Renasant Corp. (RNST)All Stock$118.8 million$14.63$14.3419,52609/30/20132.02%3.92%
+IN12/10/2012Honeywell International Inc. (HON)All Cash$600 million$10.00$9.82684,71506/30/20131.83%6.97%
+CYMI10/17/2012ASML Holding NV (ASML)Cash Plus Stock$2.5 billion$99.00$97.24207,93106/30/20131.81%6.86%
+CPNO01/29/2013Kinder Morgan Energy Partners, L.P. (KMP)All Stock$5 billion$40.57$39.851,457,33509/30/20131.79%3.48%
+FCFC12/21/2012Varde Partners Inc. (N/A)All Cash$225 million$10.00$9.8318,74506/30/20131.73%6.58%
+SSRX02/08/2013Decade Sunshine Limited (N/A)All Cash$340 million$15.40$15.15270,27506/30/20131.65%6.27%
+FFCH02/20/2013SCBT Financial Corporation (SCBT)All Stock$302.4 million$21.63$21.2962,50309/30/20131.62%3.14%
+GDI03/08/2013Kohlberg Kravis Roberts & Co. L.P. (N/A)All Cash$3.9 billion$76.00$75.031,388,97609/30/20131.29%2.51%
+SOMH01/29/2013Lakeland Bancorp Inc. (LBAI)All Stock$64.4 million$11.75$11.6022,79509/30/20131.26%2.46%
+HOTT03/07/2013Sycamore Partners (N/A)All Cash$600 million$14.00$13.84738,47906/30/20131.16%4.40%
+BXG11/14/2011BFC Financial Corporation (BFCF)All Cash$150 million$10.00$9.8965,29503/31/20131.11%81.19%
+ALC02/26/2013TPG (N/A)All Cash$278 million$12.00$11.88160,95306/30/20131.01%3.84%
+ASCA12/21/2012Pinnacle Entertainment Inc. (PNK)All Cash$2.8 billion$26.50$26.26101,68809/30/20130.91%1.77%
+HCBK08/27/2012M&T Bank Corporation (MTB)All Stock$3.7 billion$8.64$8.572,701,42503/31/20130.80%58.16%
+PVSW01/28/2013an affiliate of Actian Corporation (N/A)All Cash$161.9 million$9.20$9.1312,67406/30/20130.77%2.92%
+ROMA12/19/2012Investors Bancorp Inc. (ISBC)All Stock$113.5 million$16.12$16.0012,85606/30/20130.75%2.86%
+CVH08/20/2012Aetna Inc. (AET)Cash Plus Stock$7.3 billion$46.74$46.411,071,01306/30/20130.72%2.74%
+HNZ02/14/2013Berkshire Hathaway and 3G Capital (N/A)All Cash$28 billion$72.50$71.994,081,37309/30/20130.71%1.38%
+KSWS01/17/2013E. Land (N/A)All Cash$170 million$4.75$4.7242,49406/30/20130.64%2.42%
+ES01/07/2013a subsidiary of Energy Capital Partners II, LLC (N/A)All Cash$1.1 billion$3.75$3.731,418,89006/30/20130.54%2.04%
+ALTE12/19/2012Markel Corp. (MKL)Cash Plus Stock$3.13 billion$31.75$31.59361,13406/30/20130.51%1.95%
+NTSP02/19/2013Total System Services, Inc. (TSS)All Cash$1.4 billion$16.00$15.921,055,78206/30/20130.50%1.91%
+SHP12/21/2012ShangPharma Holdings Limited (N/A)All Cash$173 million$9.00$8.9637,26706/30/20130.45%1.70%
+MMUS03/13/2013LaunchEquity Acquisition Partners (N/A)All CashN/A$4.85$4.838,47506/30/20130.41%1.57%
+EDAC03/18/2013GB Aero Engine LLC, an affiliate of Greenbriar Equity Group LLC (N/A)All Cash$104.1 million$17.75$17.6835,14506/30/20130.40%1.51%
+ART02/14/2013Aberdeen Asset Management PLC (N/A)All CashN/A$2.75$2.74642,46308/15/20130.36%0.94%
+CASC10/22/2012Toyota Industries Corporation (N/A)All Cash$759 million$65.00$64.7846,96603/27/20130.34%123.96%
+ANNB10/23/2012F.N.B. Corporation (FNB)All Stock$51 million$13.49$13.457,11704/30/20130.28%2.90%
+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$15.51122,58306/30/20130.26%0.98%
+CRBC09/13/2012FirstMerit Corporation (FMER)All Stock$912 million$22.50$22.44156,36506/30/20130.25%0.94%
+BOX01/22/2013Ontario Teachers’ Pension Plan (N/A)All Cash$467 million$23.00$22.9547,74906/30/20130.22%0.83%
+SHS03/01/2013Danfoss (N/A)All Cash$629 milion$58.50$58.41134,92706/30/20130.15%0.59%
+MUSA02/06/2013Reliance Steel & Aluminum Co. (RS)All Cash$1.2 billion$20.65$20.62449,37706/30/20130.15%0.55%
+APKT02/04/2013Oracle Corporation (ORCL)All Cash$1.7 billion$29.25$29.211,491,59606/30/20130.14%0.52%
+KYAK11/08/2012priceline.com Incorporated (PCLN)All Cash$1.65 billion$40.00$39.9726,54703/31/20130.08%5.48%
+EPHC12/06/2012TD Bank Group (N/A)All Cash$668 million$28.00$27.9849,98606/30/20130.07%0.27%
+OMPI03/20/2013Valeant Pharmaceuticals International, Inc. (VRX)All Cash$360 million$19.75$19.76434,37906/30/2013-0.05%-0.19%
+AACC03/06/2013Encore Capital Group, Inc. (ECPG)All Cash$200 million$6.50$6.51164,14906/30/2013-0.15%-0.58%
+OUTD03/13/2013Kroenke Sports & Entertainment LLC (N/A)All Cash$227 million$8.75$8.79117,33206/30/2013-0.46%-1.73%
+CHG02/21/2012Fortis Inc. (N/A)All Cash$1.5 billion$65.00$65.3935,96306/30/2013-0.60%-2.27%
+PXP12/05/2012Freeport-McMoRan Copper & Gold Inc. (FCX)Cash Plus Stock$6.9 billion$46.28$46.671,756,74006/30/2013-0.83%-3.14%
+KCG12/19/2012GETCO Holding Company (N/A)All Cash$1.4 billion$3.75$3.801,900,37006/30/2013-1.32%-5.00%
+CXS01/31/2013Annaly Capital Management, Inc. (NLY)All Cash$1 billion$13.00$13.261,867,78404/30/2013-1.96%-20.45%
+FCAL11/06/2012PacWest Bancorp (PACW)All Cash$231 million$8.00$8.3633,94203/31/2013-4.31%-314.35%
+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$14.5153,802,24807/31/2013-5.93%-17.03%
+SOMX12/11/2012Pernix Therapeutics Holdings, Inc. (PTX)All Cash$25 million$2.78$3.00N/A06/30/2013-7.33%-27.88%
+CLWR12/17/2012Sprint Nextel Corp. (S)All Cash$2.2 billion$2.97$3.251,884,97003/31/2013-8.62%-628.92%
+OMX02/20/2013Office Depot, Inc. (ODP)All Stock$1.17 billion$10.76$11.871,118,81412/31/2013-9.35%-12.19%
+MMR12/05/2012Freeport-McMoRan Copper & Gold Inc. (FCX)All Cash3.4 billion$14.75$16.33634,35206/30/2013-9.68%-36.79%
+VRTA05/31/2012Vestin Realty Mortgage II, Inc. (VRTB)All StockN/A$0.99$1.14N/A03/31/2013-12.96%-946.44%
+PRWT10/30/2012AmericanWest Bank (N/A)All Cash$16.6 million$1.65$1.9849,40606/30/2013-16.67%-63.37%
+WAVE08/02/2012AT&T, Inc. (T)All Cash$600 million$1.00$1.44N/A03/31/2013-30.56%-2230.56%