Merger Arbitrage Mondays – July 19, 2010

Bookmark and Share

July 18, 2010 | Merger Arbitrage | | Author Asif

Mergers activity bounced back sharply last week with five new deals announced and three deals closing.

The founder of Playboy (PLA) Hugh Hefner made a bid to take the company private is a deal valued at $185 million and is now fighting a competing bid from Penthouse magazine, which has bid $210 million for the company. Since the board is still considering both offers, we have not included the deal in our merger arbitrage table below.

The new deals include the acquisition of Micrus Endovascular (MEND) by Johnson & Johnson (JNJ) for $23.40 per share in an all cash deal, the acquisition of Hewitt Associates (HEW) by Aon (AON) in a cash plus stock deal consisting of $25.61 in cash and 0.6362 in Aon stock, the acquisition of ADC Telecommunication (ADCT) by Tyco Electronics (TEL) for $12.75 per share in an all cash deal, the acquisition of NYMagic (NYM) by ProSight for $25.75 per share in an all cash deal and the acquisition of NBTY (NTY) by The Carlyle Group at $55 per share in an all cash deal.

The deals that closed include the acquisition of CKE Restaurants by an affiliate of Apollo Management,  the acquisition of ev3 by Covidien on July 12, 2010 and the acquisition of Millipore by Merck on July 15, 2010.

If you are new to merger arbitrage, please feel free to check out our introduction to merger arbitrage here. You can also use our automated merger arbitrage tool that constantly updates the profits and annualized profits for all pending deals during market hours.

  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 $20.44 $15.73 12/31/2010 29.91% 66.17%
+ TLCR 06/07/2010 Grifols (GRF.MC) $3.4 billion $26.07 $21.31 12/31/2010 22.35% 49.44%
+ SSE 02/23/2010 Naugatuck Valley Financial Corp (NVSL) $19.5 million $7.25 $6.40 08/16/2010 13.28% 173.13%
+ EMMS 05/25/2010 JS Acquisition and Alden Global Capital (N/A) $3 billion $2.40 $2.14 09/30/2010 12.15% 60.75%
+ AYE 02/11/2010 FirstEnergy (FE) $8.5 billion $24.75 $22.30 03/31/2011 11.00% 15.74%
+ BGH 06/11/2010 Buckeye Partners LP (BPL) $1.14 billion $43.29 $40.154 12/31/2010 7.80% 17.26%
+ PINN 02/24/2010 Investor Group lead by Scotia Waterous (USA) (N/A) $11 million $0.34 $0.32 08/21/2010 6.25% 69.13%
+ Q 04/22/2010 Century Link (CTL) $10.6 billion $5.75 $5.44 04/21/2011 5.77% 7.64%
+ DIVX 06/02/2010 Sonic Solutions (SNIC) $323 million $7.38 $7.0275 09/30/2010 5.00% 25.00%
+ PRPX 02/17/2010 L.B. Foster Co. (FSTR) $112 million $11.71 $11.22 08/31/2010 4.37% 37.07%
+ ALOY 06/24/2010 ZelnickMedia (N/A) $126.5 million $9.80 $9.40 12/31/2010 4.26% 9.41%
+ TTIL 06/09/2010 Teoco Corp. (N/A) $58 million $3.00 $2.88 09/30/2010 4.17% 20.83%
+ EFJI 05/17/2010 Francisco Partners (N/A) N/A $1.50 $1.45 09/30/2010 3.45% 17.24%
+ PMACA 06/10/2010 Old Republic International (ORI) $228 million $6.92 $6.70 09/30/2010 3.27% 16.34%
+ GLG 05/17/2010 Man Group (N/A) $1.6 billion $4.50 $4.36 09/30/2010 3.21% 16.06%
+ ECLP 06/09/2010 Allscripts-Misys Healthcare (MDRX) $1.3 billion $20.12 $19.52 11/15/2010 3.09% 9.49%
+ VETS 06/02/2010 VCA Antech Inc (WOOF) $41.25 million $0.34 $0.3301 09/30/2010 3.00% 15.00%
+ NTY 07/15/2010 The Carlyle Group (N/A) $3.8 billion $55.00 $53.45 12/31/2010 2.90% 6.41%
+ HEW 07/12/2010 Aon Corp (AON) $4.9 billion $48.67 $47.30 11/15/2010 2.89% 8.86%
+ MAM 03/12/2010 Emera Inc (N/A) $75.7 million $45.00 $43.85 12/31/2010 2.62% 5.80%
+ PSYS 05/17/2010 Universal Health (N/A) $3.1 billion $33.75 $32.90 12/31/2010 2.58% 5.72%
+ ATBC 05/10/2010 Jacksonville Bancorp (JAXB) N/A $2.59 $2.53 09/30/2010 2.53% 12.65%
+ SWWC 03/03/2010 Institutional Investors (N/A) $275 million $11.00 $10.74 03/31/2011 2.42% 3.47%
+ MIR 04/12/2010 RRI Energy In. (RRI) $1.6 billion $10.97 $10.72 12/31/2010 2.35% 5.19%
+ OMNI 06/04/2010 Wellspring Capital Management (N/A) $122 million $2.75 $2.69 11/15/2010 2.23% 6.84%
+ BNE 02/24/2010 RR Donnelley (RRD) $481 million $11.50 $11.26 09/30/2010 2.13% 10.66%
+ ME 04/15/2010 Apache (APA) $2.7 billion $21.90 $21.45 09/30/2010 2.11% 10.56%
+ WAIN 06/29/2010 Eastern Bank (N/A) $163 million $19.00 $18.65 12/31/2010 1.88% 4.15%
+ ADCT 07/13/2010 Tyco Electronics (TEL) $1.24 billion $12.75 $12.52 12/31/2010 1.84% 4.06%
+ TSFG 05/17/2010 TD Bank Financial Group (N/A) $61 million $0.28 $0.275 09/30/2010 1.82% 9.09%
+ ACAP 07/08/2010 The Doctors Company (N/A) $386 million $41.50 $40.77 12/31/2010 1.79% 3.96%
+ NYM 07/15/2010 ProSight (N/A) $230 million $25.75 $25.31 12/31/2010 1.74% 3.85%
+ ODSY 05/24/2010 Gentiva Health Services (GTIV) $1.0 billion $27.00 $26.5575 09/30/2010 1.67% 8.33%
+ WMZ 05/24/2010 Williams Partners L.P. (WPZ) $34.29 $33.82 09/30/2010 1.40% 7.02%
+ WEL 04/09/2010 Halliburton Company (HAL) $240 million $3.00 $2.96 09/30/2010 1.35% 6.76%
+ PFWD 04/16/2010 Oracle Corp. (ORCL) $685 million $17.00 $16.79 06/30/2010 1.25% 0.00%
+ STBK 03/18/2010 Roma Financial Corp (ROMA) $14.7 million $2.52 $2.49 08/16/2010 1.20% 15.71%
+ VIRL 06/10/2010 Synopsys (SNPS) $315 million $12.00 $11.88 12/31/2010 1.01% 2.23%
+ RCNI 03/05/2010 ABRY Partners (N/A) $536 million $15.00 $14.87 09/30/2010 0.87% 4.37%
+ MEND 07/12/2010 Johnson & Johnson (JNJ) $480 million $23.40 $23.20 09/30/2010 0.86% 4.31%
+ SII 02/19/2010 Schlumberger (SLB) $7.5 billion $39.48 $39.15 09/30/2010 0.85% 4.26%
+ VTIV 05/06/2010 Thomas H. Lee Partners (N/A) $1.1 billion $26.00 $25.80 09/30/2010 0.78% 3.88%
+ MDNU 06/11/2010 Danone (N/A) $62.3 million $4.00 $3.97 09/30/2010 0.76% 3.78%
+ ATSI 04/29/2010 Medtronic (MDT) $350 million $4.00 $3.97 09/30/2010 0.76% 3.78%
+ BSMD 05/13/2010 Merit Medical Systems (MMSI) $96 million $4.38 $4.35 09/30/2010 0.69% 3.45%
+ RBI 03/15/2010 affiliate of Oncap Management Partners L.P. (N/A) $13.55 $13.46 08/16/2010 0.67% 8.72%
+ DBTK 05/17/2010 Vision Solutions (N/A) $242 million $10.55 $10.48 09/30/2010 0.67% 3.34%
+ IDC 05/04/2010 Silver Lake & Warburg Pincus (N/A) $3.4 billion $33.86 $33.67 09/30/2010 0.56% 2.82%
+ GNA 06/02/2010 Gerdau (GGB) $1.7 billion $11.00 $10.94 08/31/2010 0.55% 4.66%
+ NADX 04/05/2010 GDC Holdings Inc. (N/A) $100 million $17.00 $16.91 09/30/2010 0.53% 2.66%
+ QUOT 06/11/2010 LQ Acquisition (N/A) $19 million $4.00 $3.98 09/30/2010 0.50% 2.51%
+ ORCD 03/16/2010 eMusic (N/A) $12.77 million $2.05 $2.04 08/16/2010 0.49% 6.39%
+ CRN 04/19/2010 GeoGroup (GEO) $685 million $27.39 $27.26 09/30/2010 0.48% 2.40%
+ SNWL 06/03/2010 investor group led by private equity firm Thoma Bravo LLC (N/A) $636 million $11.50 $11.45 12/31/2010 0.44% 0.97%
+ CPII 05/10/2010 Comtech (CMTL) $472.3 million $15.95 $15.89 09/30/2010 0.37% 1.87%
+ VRAD 05/17/2010 Providence Equity (N/A) $294 million $17.25 $17.20 09/30/2010 0.29% 1.45%
+ STST 06/30/2010 Boeing (BA) $775 million $34.50 $34.40 09/30/2010 0.29% 1.45%
+ SXE 05/07/2010 CGI Group (N/A) $904 million $37.50 $37.40 09/30/2010 0.27% 1.34%
+ SY 05/12/2010 SAP (SAP) $5.8 billion $65.00 $64.83 09/30/2010 0.26% 1.31%
+ SMTS 06/16/2010 Covidien (COV) $299 million $25.00 $24.94 07/31/2010 0.24% 7.32%
+ SBP 06/24/2010 ABLASA (N/A) N/A $12.69 $12.66 07/22/2010 0.24% 28.83%
+ CYBS 04/21/2010 Visa Inc. (V) $2.0 billion $26.00 $25.96 09/30/2010 0.15% 0.77%
+ AIPC 06/21/2010 Ralcorp Holdings (RAH) $1.2 billion $53.00 $52.94 09/30/2010 0.11% 0.57%
+ NGA 04/01/2010 AZZ Inc. (AZZ) $125.6 million $7.50 $7.50 08/31/2010 0.00% 0.00%
+ VRX 06/21/2010 Biovail Corporation (BVF) $3.3 billion $53.26 $53.58 12/31/2010 -0.60% -1.32%
+ CAL 05/03/2010 United (UAUA) $1.2 billion $22.42 $22.86 12/31/2010 -1.94% -4.28%
+ ABII 06/30/2010 Celgene (CELG) $2.9 billion $71.62 $74.37 12/31/2010 -3.70% -8.18%
+ ARD 04/04/2010 SandRidge Energy Inc. (SD) $1.6 billion $33.93 $35.98 09/30/2010 -5.69% -28.44%
+ MCCC 06/01/2010 Chief Executive Rocco Commisso (N/A) $590 million $6.00 $6.73 N/A -10.85% 0.00%
+ DTG 04/26/2010 Hertz (HTZ) $1.3 billion $39.19 $46.22 12/31/2010 -15.22% -33.67%
+ CCE 02/25/2010 The Coca-Cola Company (KO) $12.3 billion N/A $27.69 10/01/2010 N/A N/A

Voluntary Disclosure: I own positions in Coca-Cola Enterprises (CCE) and Portec Rail Products (PRPX).




Subscribe to Free Newsletter


Share this Post

Post A Comment, Subscribe to SINLetter