Merger Arbitrage Mondays – March 29, 2010

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March 29, 2010 | Merger Arbitrage | | Author Asif

The mergers and acquisitions activity last week was reminiscent of the private equity bubble of 2004-2007 when money was cheap and the market was rising. In an environment where yields for some corporate bonds fell below the yield of the 10 year Treasury note last week, several acquisitions with price tags of over $1 billion were announced. Since a number of these deals were international in nature or acquisitions of private companies like Triumph’s (TGI) decision to acquire Vought Aircraft from private equity firm Carlyle group, they have not been included in the Merger Arbitrage list.

You will however find the newly announced acquisitions of CNX Gas Corp (CXG), Techwell (TWLL) and Plato Learning (TUTR) in the updated list below. Jones Soda (JSDA) came off the list because it received a better offer than the $10 million or 37 cents per share Reed’s (REED) was willing to pay for the company. Shares of Jones jumped up 34.6% last Tuesday and closed the week up 20.37%. With scant details about this new offer or even the name of the new suitor available at this time, we have taken Jones Soda off the list.

  Symbol Announced
Date
Acquiring Company Closing
Value
Closing
Price
Last
Price
Closing
Date
Profit Annualized
Profit
+ AYE 2/11/2010 FirstEnergy $8.5 billion 25.87 22.89 3/31/2011 13.02% 12.88%
+ SSE 2/23/2010 Naugatuck Valley Financial Corp $19.5 million 7.25 6.56 8/16/2010 10.52% 26.66%
+ STBK 3/18/2010 Roma Financial Corp $14.7 million 2.52 2.34 8/16/2010 7.69% 19.50%
+ SWWC 3/3/2010 Institutional Investors $275 million 11 10.42 5/17/2010 5.57% 36.94%
+ SKIL 2/12/2010 consortium of private equity funds $1.1 billion 10.8 10.28 5/31/2010 5.06% 26.76%
+ PINN 2/24/2010 Investor Group lead by Scotia Waterous (USA) $11 million 0.34 0.325 5/17/2010 4.62% 30.63%
+ MAM 3/12/2010 Emera Inc. $75.7 million 45 43.46 12/31/2010 3.54% 4.64%
+ SII 2/19/2010 Schlumberger $7.5 billion 42.96 41.62 9/30/2010 3.22% 6.25%
+ ORCD 3/16/2010 eMusic $12.77 million 2.05 2 8/16/2010 2.50% 6.34%
+ BNE 2/24/2010 RR Donnelley $481 million 11.5 11.24 9/30/2010 2.31% 4.49%
+ RISK 3/1/2010 MSCI $1.55 billion 22.79 22.39 7/16/2010 1.79% 5.72%
+ IUSA 3/8/2010 CCMP $460 million 8 7.88 6/30/2010 1.52% 5.67%
+ MIL 3/1/2010 Merck $6 billion 107 105.46 9/30/2010 1.46% 2.84%
+ TUTR 3/26/2010 Thoma Brava $141 million 5.6 5.52 7/31/2010 1.45% 4.10%
+ PIII 2/18/2010 Lineage $16.7 million 5.86 5.8 5/17/2010 1.03% 6.87%
+ ADG 1/19/2010 Chemring Group Plc $59 million 7.25 7.18 4/19/2010 0.97%  
+ PRPX 2/17/2010 L.B. Foster Co. $112 million 11.71 11.6 6/30/2010 0.95% 3.53%
+ CITP 2/2/2010 Manpower $375.8 million 17.65 17.5 4/2/2010 0.86% 31.29%
+ CXG 3/22/2010 Consol Energy Inc. $363 million 38.25 38 5/5/2010 0.66% 5.58%
+ CKR 3/1/2010 Thomas H. Lee $928 million 11.05 10.98 5/17/2010 0.64% 4.23%
+ RBI 3/15/2010 affiliate of Oncap Management Partners L.P.   13.55 13.47 8/16/10 0.59% 1.51%
+ TWLL 3/22/2010 Intersil Corp. $400 million 18.5 18.41 5/17/2010 0.49% 3.24%
+ CFL 1/18/2010 Tyco International $2.9 billion 42.5 42.3 6/26/2010 0.47% 1.84%
+ ZRBA 1/11/2010 Woodstream Corp $23 million 9 8.96 3/31/2010 0.45% 18.11%
+ LGN 1/22/2010 Lone Star Funds $270 million 2.5 2.49 5/17/2010 0.40% 2.67%
+ TRA 3/12/2010 CF Industries Holdings, Inc. $4.7 billion 46.03 45.96 4/12/2010 0.15% 2.78%
+ KTII 1/11/2010 Hillenbrand Inc Common Stock $435 million 150 149.84 3/31/2010 0.11% 4.33%
+ FACT 3/9/2010 Abbot $450 million 27 27 5/17/2010 0.00% 0.00%
+ ZNT 2/18/2010 Fairfax Financial Holdings $I.4 billion 38 38.25 5/17/2010 -0.65% -4.34%
+ CHRD 3/15/2010 Pegasystems $161.5 million 5 5.06 5/17/2010 -1.19% -7.87%
+ RCNI 3/5/2010 Abry $1.2 billion 15 15.35 9/30/2010 -2.28% -4.43%
+ CCE 2/25/2010 The Coca-Cola Company $12.3 billion   27.6 10/1/2010 -100% -193.12%



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