Merger Arbitrage Mondays – May 31, 2010

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May 31, 2010 | Merger Arbitrage | | Author Asif

The merger activity slowed down last week when compared to the previous week with just three new deals announced and two deals closing.

The three new deals include the acquisition of Emmis Communications Corporation (EMMS) by JS Acquisition and Alden Global Capital for $2.4 per share in cash, the acquisition of Odyssey Healthcare (ODSY) by Gentiva Health Services for $27 per share in cash and the acquisition of Williams Pipeline Partners LP (WMZ) by Williams Partners L.P. in which Williams Pipeline Partners shareholders will receive 0.7584 shares of Williams Partners common stock per share held.

Another deal that was announced this week was IBM buying business software company Sterling Commerce from AT&T (T) for $1.4 billion. Since IBM is only buying a particular business segment from AT&T, this deal is not listed below but the size of the deal made it worth mentioning.

The two deals that closed include the acquisition of Thoma Bravo (TUTR) by Plato Learning on May 25, 2010 and the acquisition of SkillSoft (SKIL) by a consortium of private equity funds on May 26, 2010.

You may notice that the acquisition of Allied Defense Group (ADG) by Chemring Group is no longer listed. The DOJ expanded its review of ADG and the Chemring Group has indicated “that it is presently unwilling to consummate the merger pursuant to the terms of the merger agreement”. Should ADG announce a new merger agreement with the Chemring Group, we will add it to the list again.

  Symbol Anno.
Date
Acquiring
Company
Closing
Value
Closing
Price
Last
Price
Closing
Date
Profit Annu.
Profit
+ SSE 2/23/2010 Naugatuck Valley Financial Corp $19.5 million 7.25 6.3 8/16/2010 15.08% 72.42%
+ AYE 2/11/2010 FirstEnergy $8.5 billion 23.48 20.46 3/31/2011 14.76% 17.96%
+ WX 4/26/2010 Charles River Laboratories $1.6 billion 20.28 17.89 12/31/2010 13.36% 23.22%
+ Q 4/22/2010 Century Link $10.6 billion 5.712 5.24 4/21/2011 9.01% 10.24%
+ ME 4/15/2010 Apache $2.7 billion 23.06 21.38 9/30/2010 7.86% 23.90%
+ SWWC 3/3/2010 Institutional Investors $275 million 11 10.3 3/31/2011 6.80% 8.27%
+ STBK 3/18/2010 Roma Financial Corp $14.7 million 2.52 2.36 8/16/2010 6.78% 32.56%
+ PINN 2/24/2010 Investor Group lead by Scotia Waterous (USA) $11 million 0.34 0.32 6/30/2010 6.25% 76.04%
+ GLG 5/17/2010 Man Group $1.6 billion 4.5 4.26 9/30/2010 5.63% 17.14%
+ EFJI 5/17/2010 Francisco Partners   1.05 1 9/30/2010 5.00% 15.21%
+ EMMS 5/25/2010 JS Acquisition and Alden Global Capital $3 billion 2.4 2.3 9/30/2010 4.35% 13.22%
+ PSYS 5/17/2010 Universal Health $3.1 billion 33.75 32.38 12/31/2010 4.23% 7.35%
+ SII 2/19/2010 Schlumberger $7.5 billion 39.11 37.56 9/30/2010 4.13% 12.55%
+ VTIV 5/6/2010 Thomas H. Lee Partners $1.1 billion 26 24.98 9/30/2010 4.08% 12.42%
+ IDC 5/4/2010 Silver Lake & Warburg Pincus $3.4 billion 33.86 32.55 9/30/2010 4.02% 12.24%
+ BNE 2/24/2010 RR Donnelley $481 million 11.5 11.07 9/30/2010 3.88% 11.81%
+ RCNI 3/5/2010 Emera Inc. $1.2 billion 15 14.525 9/30/2010 3.27% 9.95%
+ MAM 3/12/2010   $75.7 million 45 43.7 12/31/2010 2.97% 5.17%
+ TSFG 5/17/2010 TD Bank Financial Group $61 million 0.28 0.2722 9/30/2010 2.87% 8.72%
+ DCP 4/12/2010 Cerberus Capital Managemen $1.5 billion 17.55 17.11 11/15/2010 2.57% 5.69%
+ PRPX 2/17/2010 L.B. Foster Co. $112 million 11.71 11.45 6/30/2010 2.27% 27.63%
+ VRAD 5/17/2010 Providence Equity $294 million 17.25 16.88 9/30/2010 2.19% 6.67%
+ BSMD 5/13/2010 Merit Medical Systems $96 million 4.38 4.3 9/30/2010 1.86% 5.66%
+ WEL 4/9/2010 Halliburton Company $240 million 3 2.95 9/30/2010 1.69% 5.16%
+ ODSY 5/24/2010 Gentiva Health Services $1.0 billion 27 26.56 9/30/2010 1.66% 5.04%
+ DBTK 5/17/2010 Vision Solutions $242 million 10.55 10.39 9/30/2010 1.54% 4.68%
+ CKR 3/1/2010 Apollo Management VII $694 million 12.55 12.36 6/30/2010 1.54% 18.70%
+ SXE 5/7/2010 CGI Group $904 million 37.5 36.94 9/30/2010 1.52% 4.61%
+ ATBC 5/10/2010 Jacksonville Bancorp    2.73 2.69 9/30/2010 1.49% 4.52%
+ CRN 4/19/2010 GeoGroup $685 million 27.43 27.04 9/30/2010 1.44% 4.39%
+ SENO 5/5/2010 Bard $200 million 11 10.86 9/30/2010 1.29% 3.92%
+ CYBS 4/21/2010 Visa Inc. $2.0 billion 26 25.69 9/30/2010 1.21% 3.67%
+ ARD 4/4/2010 SandRidge Energy Inc. $1.6 billion 33.26 32.88 9/30/2010 1.16% 3.52%
+ WMZ 5/24/2010 Williams Partners L.P.   28.27 27.96 9/30/2010 1.11% 3.37%
+ IUSA 3/8/2010 CCMP $460 million 8 7.915 6/30/2010 1.07% 13.07%
+ MIR 4/12/2010 RRI Energy In. $1.6 billion 12.55 12.42 12/31/2010 1.05% 1.82%
+ CPII 5/10/2010 Comtech $472.3 million 15.5 15.34 9/30/2010 1.04% 3.17%
+ SY 5/12/2010 SAP $5.8 billion 65 64.33 9/30/2010 1.04% 3.17%
+ PFWD 4/16/2010 Oracle Corp. $685 million 17 16.83 6/30/2010 1.01% 12.29%
+ ATSI 4/29/2010 Medtronic $350 million 4 3.96 9/30/2010 1.01% 3.07%
+ RBI 3/15/2010 affiliate of Oncap Management Partners L.P.   13.55 13.43 8/16/10 0.89% 4.29%
+ MIL 3/1/2010 Merck $6 billion 107 106.21 9/30/2010 0.74% 2.26%
+ TWPG 4/26/2010 Stifel Financial $300 million 6.91 6.86 6/30/2010 0.73% 8.87%
+ BELM 3/29/2010 Avnet $252 million 7 6.95 6/30/2010 0.72% 8.75%
+ HTRN 5/5/2010 Endo Pharmaceuticals $223 million 4.85 4.82 7/31/2010 0.62% 3.79%
+ NADX 4/5/2010 GDC Holdings Inc. $100 million 17 16.9 6/30/2010 0.59% 7.20%
+ ORCD 3/16/2010 eMusic $12.77 million 2.05 2.04 8/16/2010 0.49% 2.35%
+ RISK 3/1/2010 MSCI $1.55 billion 21.69 21.63 7/16/2010 0.28% 2.20%
+ DCAI 4/14/2010 U.S. Renal Care $112 million 11.25 11.22 5/31/2010 0.27% 0.27%
+ OSIP 5/17/2010 Astellas Pharma $3.5 billion 57.5 57.38 6/30/2010 0.21% 2.54%
+ BWY 3/29/2010 Madison Dearborn Partners, LLC ("MDP") $915 million 20 19.96 8/16/2010 0.20% 0.96%
+ NGA 4/1/2010 AZZ Inc. $125.6 million 7.5 7.49 8/31/2010 0.13% 0.54%
+ CXG 3/22/2010 Consol Energy Inc. $363 million 38.25 38.24 6/30/2010 0.03% 0.32%
+ PALM 4/28/2010 Hewlett – Packard $1.2 billion 5.7 5.7 7/31/2010 0.00% 0.00%
+ CAL 5/3/2010 United $1.2 billion 21.01 21.1 12/31/2010 -0.43% -0.74%
+ PONE 4/26/2010 GTCR $828 million 15.5 15.89 6/30/2010 -2.45% -29.86%
+ DTG 4/26/2010 Hertz $1.2 billion 41 46.7 12/31/2010 -12.21% -21.21%
+ SMMX 4/5/2010 Accelrys Inc. $186 million 5.36 6.4 6/30/2010 -16.25% -197.71%
+ CCE 2/25/2010 The Coca-Cola Company $12.3 billion   26.1 10/1/2010    



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