Merger Arbitrage Mondays – June 14, 2010

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June 14, 2010 | Merger Arbitrage | | Author Asif

If we are supposed to be on the verge of a bear market, someone forgot to mention it to the deal makers as we once again saw seven new mergers announcements last week. We have had seven new mergers announced in three out of the four last weeks. You can use our new Merger Arbitrage Tool to view the spreads on these new deals and sort the entire list by profit, annualized profit or closing date by clicking on the headers.

The new deals include the acquisition of Medical Nutrition USA (MDNU) by Danone for $4 per share in cash, the acquisition of of TTI Telecom (TTIL) by Teoco Corp. for $3 per share in cash, the acquisition of PMA Capital (PMACA) by Old Republic International Corp. (ORI) in an all stock deal in which Old Republic will issue 0.55 shares of its common stock in exchange for each outstanding common share of PMA, the acquisition of Virage Logic Corp (VIRL) by Synopsys (SNPS) for $12 per share in cash, the acquisition of Talecris (TLCR) by Grifols in a cash plus stock deal worth $26.16, the acquisition of Eclipsys Corporation (ECLP) by Allscripts-Misys Healthcare (MDRX) in an all stock deal where each share of Eclipsys will be converted into 1.2 shares of Allscripts and the acquisition of Buckeye GP Holdings (BGH) by Buckeye Partners LP (BPL) in an all stock deal where each Buckeye GP unit will be converted into 0.705 Buckeye Partners unit.

Shares of WuXi PharmaTech (WX) fell sharply last week after its acquisition by Charles River Labs (CRL) came into question. San Francisco based activist hedge fund Jana Partners has become the largest shareholder of Charles River Labs after acquiring 4.7 million shares in recent weeks according to this article on Seeking Alpha. The fund feels that the price paid for WuXi was “unjustified” and would like to see the merger stopped or renegotiated at a lower price. It will be interesting to see how this turns out as hedge fund legend Julian Robertson (Tiger Management) has held a sizable position in WuXi since before the merger announcement. Trading at $17.09, WuXi is now very close to its pre-merger price of $16.57.

  Symbol Announced
Date
Acquiring
Company
Closing
Value
Closing
Price
Last
Price
Closing
Date
Profit Annu.
Profit
+ WX 04/26/2010 Charles River Laboratories (CRL) $1.6 billion $20.94 $17.09 12/31/2010 22.52% 41.10%
+ ATBC 05/10/2010 Jacksonville Bancorp (JAXB) N/A $3.04 $2.56 09/30/2010 18.59% 62.84%
+ AYE 02/11/2010 FirstEnergy (FE) $8.5 billion $24.60 $21.34 03/31/2011 15.27% 19.22%
+ SSE 02/23/2010 Naugatuck Valley Financial Corp (NVSL) $19.5 million $7.25 $6.33 08/16/2010 14.53% 84.20%
+ Q 04/22/2010 Century Link (CTL) $10.6 billion $5.73 $5.29 04/21/2011 8.24% 9.67%
+ BGH 06/11/2010 Buckeye Partners LP (BPL) $1.14 billion $39.38 $36.65 12/31/2010 7.45% 13.60%
+ TTIL 06/09/2010 Teoco Corp. (N/A) $58 million $3.00 $2.80 09/30/2010 7.14% 24.14%
+ ECLP 06/09/2010 Allscripts-Misys Healthcare (MDRX) $1.3 billion $20.72 $19.40 11/15/2010 6.82% 16.18%
+ PINN 02/24/2010 Investor Group lead by Scotia Waterous (USA) (N/A) $11 million $0.34 $0.32 06/30/2010 6.25% 142.58%
+ SWWC 03/03/2010 Institutional Investors (N/A) $275 million $11.00 $10.38 03/31/2011 5.97% 7.52%
+ ME 04/15/2010 Apache (APA) $2.7 billion $23.76 $22.42 09/30/2010 5.97% 20.19%
+ EMMS 05/25/2010 JS Acquisition and Alden Global Capital (N/A) $3 billion $2.40 $2.28 09/30/2010 5.26% 17.79%
+ DIVX 06/02/2010 Sonic Solutions (SNIC) $323 million $8.73 $8.39 09/30/2010 4.06% 13.72%
+ VTIV 05/06/2010 Thomas H. Lee Partners (N/A) $1.1 billion $26.00 $25.00 09/30/2010 4.00% 13.52%
+ EFJI 05/17/2010 Francisco Partners (N/A) $1.05 $1.01 09/30/2010 3.96% 13.38%
+ PSYS 05/17/2010 Universal Health (N/A) $3.1 billion $33.75 $32.52 12/31/2010 3.78% 6.90%
+ MAM 03/12/2010 Emera Inc (N/A) $75.7 million $45.00 $43.45 12/31/2010 3.57% 6.51%
+ GLG 05/17/2010 Man Group (N/A) $1.6 billion $4.50 $4.35 09/30/2010 3.45% 11.65%
+ OMNI 06/04/2010 Wellspring Capital Management (N/A) $122 million $2.75 $2.66 11/15/2010 3.38% 8.02%
+ IDC 05/04/2010 Silver Lake & Warburg Pincus (N/A) $3.4 billion $33.86 $32.76 09/30/2010 3.36% 11.35%
+ PMACA 06/10/2010 Old Republic International (ORI) $228 million $7.28 $7.05 09/30/2010 3.21% 10.86%
+ BNE 02/24/2010 RR Donnelley (RRD) $481 million $11.50 $11.15 09/30/2010 3.14% 10.61%
+ SII 02/19/2010 Schlumberger (SLB) $7.5 billion $41.43 $40.23 09/30/2010 2.99% 10.11%
+ ORCD 03/16/2010 eMusic (N/A) $12.77 million $2.05 $2.00 08/16/2010 2.50% 14.48%
+ STBK 03/18/2010 Roma Financial Corp (ROMA) $14.7 million $2.52 $2.46 08/16/2010 2.44% 14.13%
+ PFWD 04/16/2010 Oracle Corp. (ORCL) $685 million $17.00 $16.61 06/30/2010 2.35% 53.56%
+ SNWL 06/03/2010 investor group led by private equity firm Thoma Bravo LLC (N/A) $636 million $11.50 $11.26 12/31/2010 2.13% 3.89%
+ BSMD 05/13/2010 Merit Medical Systems (MMSI) $96 million $4.38 $4.29 09/30/2010 2.10% 7.09%
+ VRAD 05/17/2010 Providence Equity (N/A) $294 million $17.25 $16.90 09/30/2010 2.07% 7.00%
+ RCNI 03/05/2010 ABRY Partners (N/A) $536 million $15.00 $14.70 09/30/2010 2.04% 6.90%
+ MIR 04/12/2010 RRI Energy In. (RRI) $1.6 billion $12.22 $12.00 12/31/2010 1.82% 3.33%
+ DCP 04/12/2010 Cerberus Capital Management (N/A) $1.5 billion $17.55 $17.25 11/15/2010 1.74% 4.12%
+ DBTK 05/17/2010 Vision Solutions (N/A) $242 million $10.55 $10.37 09/30/2010 1.74% 5.87%
+ PRPX 02/17/2010 L.B. Foster Co. (N/A) $112 million $11.71 $11.52 06/30/2010 1.65% 37.62%
+ TSFG 05/17/2010 TD Bank Financial Group (N/A) $61 million $0.28 $0.2757 09/30/2010 1.56% 5.27%
+ ATSI 04/29/2010 Medtronic (MDT) $350 million $4.00 $3.94 09/30/2010 1.52% 5.15%
+ CAL 05/03/2010 United (UAUA) $1.2 billion $23.92 $23.57 12/31/2010 1.48% 2.70%
+ HTRN 05/05/2010 Endo Pharmaceuticals (ENDP) $223 million $4.85 $4.78 07/31/2010 1.46% 11.37%
+ WMZ 05/24/2010 Williams Partners L.P. (WPZ) $31.42 $31.02 09/30/2010 1.29% 4.36%
+ MDNU 06/11/2010 Danone (N/A) $62.3 million $4.00 $3.95 09/30/2010 1.27% 4.28%
+ CYBS 04/21/2010 Visa Inc. (V) $2.0 billion $26.00 $25.68 09/30/2010 1.25% 4.21%
+ NADX 04/05/2010 GDC Holdings Inc. (N/A) $100 million $17.00 $16.80 06/30/2010 1.19% 27.16%
+ CRN 04/19/2010 GeoGroup (GEO) $685 million $26.29 $25.98 09/30/2010 1.18% 3.98%
+ CPII 05/10/2010 Comtech (CMTL) $472.3 million $15.96 $15.80 09/30/2010 1.03% 3.48%
+ WEL 04/09/2010 Halliburton Company (HAL) $240 million $3.00 $2.97 09/30/2010 1.01% 3.41%
+ ODSY 05/24/2010 Gentiva Health Services (GTIV) $1.0 billion $27.00 $26.74 09/30/2010 0.97% 3.29%
+ CKR 03/01/2010 Apollo Management VII (N/A) $694 million $12.55 $12.43 06/30/2010 0.97% 22.02%
+ VIRL 06/10/2010 Synopsys (SNPS) $315 million $12.00 $11.90 12/31/2010 0.84% 1.53%
+ SXE 05/07/2010 CGI Group (N/A) $904 million $37.50 $37.19 09/30/2010 0.83% 2.82%
+ SENO 05/05/2010 Bard (BARD.PK) $200 million $11.00 $10.91 09/30/2010 0.82% 2.79%
+ IUSA 03/08/2010 CCMP (N/A) $460 million $8.00 $7.94 06/30/2010 0.76% 17.24%
+ BELM 03/29/2010 Avnet (AVT) $252 million $7.00 $6.95 06/30/2010 0.72% 16.41%
+ SY 05/12/2010 SAP (SAP) $5.8 billion $65.00 $64.60 09/30/2010 0.62% 2.09%
+ EVVV 06/01/2010 Covidien plc (COV) $2.6 billion $22.50 $22.37 07/31/2010 0.58% 4.51%
+ MIL 03/01/2010 Merck (MRK) $6 billion $107.00 $106.67 09/30/2010 0.31% 1.05%
+ RBI 03/15/2010 affiliate of Oncap Management Partners L.P. (N/A) $13.55 $13.52 08/16/2010 0.22% 1.29%
+ BWY 03/29/2010 Madison Dearborn Partners, LLC ("MDP") (N/A) $915 million $20.00 $19.99 08/16/2010 0.05% 0.29%
+ NGA 04/01/2010 AZZ Inc. (AZZ) $125.6 million $7.50 $7.50 08/31/2010 0.00% 0.00%
+ PALM 04/28/2010 Hewlett – Packard (HPQ) $1.2 billion $5.70 $5.70 07/31/2010 0.00% 0.00%
+ VETS 06/02/2010 VCA Antech Inc (WOOF) $41.25 million $0.34 $0.34 09/30/2010 0.00% 0.00%
+ TWPG 04/26/2010 Stifel Financial (SF) $300 million $6.21 $6.23 06/30/2010 -0.29% -6.72%
+ GNA 06/02/2010 Gerdau (GGB) $1.7 billion $11.00 $11.05 N/A -0.45% 0.00%
+ ARD 04/04/2010 SandRidge Energy Inc. (SD) $1.6 billion $34.70 $35.20 09/30/2010 -1.43% -4.82%
+ MCCC 06/01/2010 Chief Executive Rocco Commisso (N/A) $590 million $6.00 $6.79 N/A -11.63% 0.00%
+ TLCR 06/07/2010 Grifols (N/A) $3.4 billion $19.00 $21.81 12/31/2010 -12.88% -23.51%
+ DTG 04/26/2010 Hertz (HTZ) $1.3 billion $39.34 $45.23 12/31/2010 -13.03% -23.77%
+ SMMX 04/05/2010 Accelrys Inc. (ACCL) $186 million $5.16 $6.21 06/30/2010 -16.89% -385.34%
+ CCE 02/25/2010 The Coca-Cola Company (KO) $12.3 billion N/A $26.27 10/01/2010 N/A N/A



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