Merger Arbitrage Mondays – April 12, 2010

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April 12, 2010 | Merger Arbitrage | | Author Asif

We had another active week on the mergers and acquisitions front with four new deals announced and one deal that closed. There were also rumors about further consolidation in the airline industry through a merger of United Airlines (UAUA) and US Airways (LCC). The deal that closed was the acquisition of Comsys IT Partners (CITP) by Manpower (MAN).

The four new deals announced include the acquisition of Arena Resources (ARD) by SandRidge Energy (SD) for $39 per share in a stock plus cash deal, the acquisition of Symyx Technologies (SMMX) by Accelrys (ACCL) for $5.55 per share in an all stock transaction, the acquisition of National Dentex (NADX) by GDC holdings for $17/share in an all cash deal and the acquisition of Boots & Coots (WEL) by Halliburton (HAL) for $3/share in a stock plus cash deal. Since the Boots & Coots acquisition was announced after market close on Friday, the spread for the deal shows up as 27.66% in the table below.

  Symbol Announced Date Acquiring Company Closing Value Closing Price Last Price Closing Date Profit Annu. Profit
+ WEL 4/9/2010 Halliburton Company $240 million 3 2.35 9/30/2010 27.66% 60.09%
+ ADG 1/19/2010 Chemring Group Plc $59 million 7.25 6.17 4/19/2010 17.50% 912.71%
+ AYE 2/11/2010 FirstEnergy $8.5 billion 26.39 23.25 3/31/2011 13.51% 14.12%
+ SSE 2/23/2010 Naugatuck Valley Financial Corp $19.5 million 7.25 6.69 8/16/2010 8.37% 24.64%
+ STBK 3/18/2010 Roma Financial Corp $14.7 million 2.52 2.3501 8/16/2010 7.23% 21.28%
+ SWWC 3/3/2010 Institutional Investors $275 million 11 10.49 5/17/2010 4.86% 50.70%
+ ARD 4/4/2010 SandRidge Energy Inc. $1.6 billion 39 37.61 9/30/2010 3.70% 8.03%
+ PINN 2/24/2010 Investor Group lead by Scotia Waterous (USA) $11 million 0.34 0.3285 5/17/2010 3.50% 36.51%
+ BNE 2/24/2010 RR Donnelley $481 million 11.5 11.13 9/30/2010 3.32% 7.22%
+ SII 2/19/2010 Schlumberger $7.5 billion 46.34 44.85 9/30/2010 3.32% 7.22%
+ ORCD 3/16/2010 eMusic $12.77 million 2.05 1.999 8/16/2010 2.55% 7.51%
+ MAM 3/12/2010 Emera Inc. $75.7 million 45 44.04 12/31/2010 2.18% 3.07%
+ SKIL 2/12/2010 consortium of private equity funds $1.2 billion 11.25 11.13 5/31/2010 1.08% 8.03%
+ MIL 3/1/2010 Merck $6 billion 107 105.98 9/30/2010 0.96% 2.09%
+ RISK 3/1/2010 MSCI $1.55 billion 22.95 22.74 7/16/2010 0.92% 3.59%
+ IUSA 3/8/2010 CCMP $460 million 8 7.93 6/30/2010 0.88% 4.13%
+ PRPX 2/17/2010 L.B. Foster Co. $112 million 11.71 11.61 6/30/2010 0.86% 4.03%
+ RBI 3/15/2010 affiliate of Oncap Management Partners L.P.   13.55 13.44 8/16/10 0.82% 2.41%
+ PIII 2/18/2010 Lineage $16.7 million 5.86 5.823 5/17/2010 0.64% 6.63%
+ TRA 3/12/2010 CF Industries Holdings, Inc. $4.7 billion 46 45.72 4/12/2010 0.61% 222.65%
+ BELM 3/29/2010 Avnet $252 million 7 6.96 6/30/2010 0.57% 2.69%
+ CXG 3/22/2010 Consol Energy Inc. $363 million 38.25 38.08 5/5/2010 0.45% 7.08%
+ NADX 4/5/2010 GDC Holdings Inc. $100 million 17 16.94 6/30/2010 0.35% 1.66%
+ FACT 3/9/2010 Abbot $450 million 27 27 5/17/2010 0.00% 0.00%
+ WEDC 3/30/2010 Microsemi Corporation $100 million 7 7.02 6/27/2010 -0.28% -1.39%
+ RCNI 3/5/2010 Abry $1.2 billion 15 15.07 9/30/2010 -0.46% -1.01%
+ NGA 4/1/2010 AZZ Inc. $125.6 million 7.5 7.54 8/31/2010 -0.53% -1.39%
+ TWLL 3/22/2010 Intersil Corp. $400 million 18.5 18.61 5/17/2010 -0.59% -6.16%
+ CFL 1/18/2010 Tyco International $2.9 billion 42.5 42.8 6/26/2010 -0.70% -3.46%
+ LGN 1/22/2010 Lone Star Funds $270 million 2.5 2.52 5/17/2010 -0.79% -8.28%
+ TUTR 3/26/2010 Thoma Brava $141 million 5.6 5.65 7/31/2010 -0.88% -2.96%
+ ZNT 2/18/2010 Fairfax Financial Holdings $I.4 billion 38 38.34 5/17/2010 -0.89% -9.25%
+ CHRD 3/15/2010 Pegasystems $161.5 million 5 5.05 5/17/2010 -0.99% -10.33%
+ SMMX 4/5/2010 Accelrys Inc. $186 million 5.55 5.61 6/30/2010 -1.07% -5.00%
+ BWY 3/29/2010 Madison Dearborn Partners, LLC ("MDP") $915 million 20 20.31 8/16/2010 -1.53% -4.49%
+ CKR 3/1/2010 Thomas H. Lee $928 million 11.05 12.11 5/17/2010 -8.75% -91.28%
+ CCE 2/25/2010 The Coca-Cola Company $12.3 billion   28.26 10/1/2010 -100.00% -215.98%



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