Merger Arbitrage Mondays – January 10, 2011

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January 10, 2011 | Merger Arbitrage | | Author Asif

Merger activity decreased last week with two new deals announced and four deals closing.

You can find all the deals listed below in our Merger Arbitrage Tool that automatically updates itself during market hours.

Deal Statistics:

Total Number of Deals Closed in 2011 5
Total Number of Pending Deals
Cash Deals 45
Stock Deals 14
Stock & Cash Deals 10
Total Number of Pending Deals 69

New Deals:

  1. The acquisition of CPEX Pharmaceuticals, Inc. (CPEX) by FCB I Holdings Inc.  for $27.25 per share in cash. FCB I is a newly formed company which is controlled by Footstar Corporation.
  2. The acquisition of Atheros Communications Inc. (ATHR) by QUALCOMM Incorporated (QCOM) for $3.1 billion or  $45.00 per share in cash.


Closed Deals:

  1. The acquisition of Nu Horizons Electronics Corp (NUHC) by Arrow Electronics (ARW) on January 03, 2011.
  2. The acquisition of Student Loan Corporation (STU) by Discover Financial Services on January 03, 2011.
  3. The acquisition of Monroe Bancorp (MROE) by Old National Bancorp (ONB) on January 03, 2011.
  4. The acquisition of Art Technology Group (ARTG) by Oracle (ORCL) on January 05, 2011.


Top 10 Deals with largest spreads:

Symbol Announced
Date
Acquiring
Company
Closing
Price
Last
Price
Closing
Date
Profit Annu.
Profit
LTXC 11/18/2010 Verigy Ltd (VRGY) $12.60 $7.43 06/30/2011 69.52% 148.39%
TLCR 06/07/2010 Grifols (GRF.MC) $27.51 $22.89 03/31/2011 20.20% 92.18%
DTG 04/26/2010 Avis (CAR) $55.26 $48.89 03/31/2011 13.04% 59.49%
NGAS 12/27/2010 Magnum Hunter Resources Corp. (MHR) $0.61 $0.5525 06/30/2011 10.09% 21.55%
MAJC 09/21/2010 Bayside Capital Partners (N/A) $4.50 $4.18 03/31/2011 7.66% 34.93%
PNNW 11/12/2010 City of Nashua (N/A) $29.00 $27.35 09/30/2011 6.03% 8.37%
PVG 09/21/2010 Penn Virginia Resource Partners (PVR) $27.58 $26.13 03/31/2011 5.54% 25.27%
ROME 10/12/2010 Berkshire Hills Bancorp (BHLB) $12.62 $11.99 03/31/2011 5.23% 23.87%
HYC 11/17/2010 Verifone Systems (PAY) $9.59 $9.13 09/30/2011 5.02% 6.97%
LEGC 12/21/2010 Berkshire Hills Bancorp (BHLB) $13.87 $13.27 06/30/2011 4.55% 9.71%

List of all Pending Deals:

  Symbol Announced
Date
Acquiring
Company
Deal
Type
Closing
Value
Closing
Price
Last
Price
Volume Closing

Date

Profit Annu.
Profit
+ LTXC 11/18/2010 Verigy Ltd (VRGY) All Stock $422 million $12.60 $7.43 779,958 06/30/2011 69.52% 148.39%
+ TLCR 06/07/2010 Grifols (GRF.MC) Cash Plus Stock $3.4 billion $27.51 $22.89 287,162 03/31/2011 20.20% 92.18%
+ DTG 04/26/2010 Avis (CAR) Cash Plus Stock $1.56 billion $55.26 $48.89 210,078 03/31/2011 13.04% 59.49%
+ NGAS 12/27/2010 Magnum Hunter Resources Corp. (MHR) All Stock $98 million $0.61 $0.5525 2,853,379 06/30/2011 10.09% 21.55%
+ MAJC 09/21/2010 Bayside Capital Partners (N/A) All Cash $7.8 million $4.50 $4.18 N/A 03/31/2011 7.66% 34.93%
+ PNNW 11/12/2010 City of Nashua (N/A) All Cash $138 million $29.00 $27.35 28,408 09/30/2011 6.03% 8.37%
+ PVG 09/21/2010 Penn Virginia Resource Partners (PVR) All Stock $954 million $27.58 $26.13 164,346 03/31/2011

5.54%

25.27%
+ ROME 10/12/2010 Berkshire Hills Bancorp (BHLB) All Stock $74 million $12.62 $11.99 3,829 03/31/2011 5.23% 23.87%
+ HYC 11/17/2010 Verifone Systems (PAY) All Stock $485 million $9.59 $9.13 563,429 09/30/2011 5.02% 6.97%
+ LEGC 12/21/2010 Berkshire Hills Bancorp (BHLB) Cash Plus Stock $108 million $13.87 $13.27 15,706 06/30/2011 4.55% 9.71%
+ MI 12/17/2010 BMO Financial Group (BMO) All Stock $4.1 billion $7.38 $7.07 14,075,630 07/31/2011 4.40% 7.95%
+ SHMR 10/15/2010 Essilor (N/A) All Cash $130 million $14.50 $13.92 8,869 06/30/2011 4.17% 8.89%
+ AAI 09/27/2010 Southwest Airlines (LUV) Cash Plus Stock $1.4 billion $7.75 $7.48 1,559,852 03/31/2011 3.61% 16.47%
+ WTNY 12/22/2010 Hancock Holding Company (HBHC) All Stock $1.5 billion $14.10 $13.62 1,402,195 06/30/2011 3.52% 7.51%
+ TCM 11/01/2010 Hanmax Investment Limited (N/A) All Cash N/A $4.50 $4.35 2,400 03/31/2011 3.45% 15.73%
+ ADAM 08/30/2010 Ebix Inc. (EBIX) All Stock $66 million $7.64 $7.40 60,789 12/31/2010 3.28% 0.00%
+ CRXL 10/06/2010 Johnson & Johnson (JNJ) All Cash $2.41 billion $31.95 $30.94 10,464 03/31/2011 3.27% 14.93%
+ ACL 12/15/2010 Novartis (NVS) All Cash $12.9 billion $168.00 $162.87 1,444,553 06/30/2011 3.15% 6.72%
+ GAS 12/07/2010 AGL Resources Inc. (AGL) Cash Plus Stock $2.4 billion $51.33 $49.83 282,295 09/30/2011 3.02% 4.19%
+ NOVL 11/22/2010 Attachment Corporation (N/A) All Cash $2.2 billion $6.10 $5.95 5,568,905 03/31/2011 2.52% 11.50%
+ NAL 08/19/2010 First Niagara Financial Group (FNFG) Cash Plus Stock $1.5 billion $15.48 $15.10 453,461 05/15/2011 2.50% 7.29%
+ CLFC 12/09/2010 Nara Bancorp Inc. (NARA) All Stock $285.7 million $7.59 $7.41 658,765 09/30/2011

2.47%

3.43%
+ VCGH 11/10/2010 Company's chairman of the Board, CEO, President and COO (N/A) All Cash $37 million $2.25 $2.20 31,150 03/31/2011 2.27% 10.37%
+ BUCY 11/15/2010 Caterpillar Inc (CAT) All Cash $8.6 billion $92.00 $89.98 1,530,454 06/30/2011 2.24% 4.79%
+ CPEX 01/04/2011 FCB I Holdings Inc. (N/A) All Cash N/A $27.25 $26.6601 14,227 06/30/2010 2.21% 0.00%
+ WL 11/01/2010 M & T Bank Corporation (MTB) All Stock $351 million $4.46 $4.38 680,187 06/30/2011

1.83%

3.90%
+ MCCC 11/15/2010 Chief Executive Rocco Commisso (N/A) All Cash $600 million $8.75 $8.60 964,989 06/30/2011 1.74% 3.72%
+ AYE 02/11/2010 FirstEnergy (FE) All Stock $8.5 billion $25.51 $25.15 2,149,790 03/31/2011 1.44% 6.58%
+ JAS 12/23/2010 affiliate of Leonard Green & Partners LP (N/A) All Cash $1.6 billion $61.00 $60.16 1,079,005 06/30/2011

1.40%

2.98%
+ ACV 09/27/2010 Unilever PLC (N/A) All Cash $3.7 billion $37.50 $37.03 924,159 03/31/2011 1.27% 5.79%
+ MFE 08/19/2010 Intel Corporation (INTC) All Cash $7.68 billion $48.00 $47.45 2,708,607 06/30/2011 1.16% 2.47%
+ KG 10/12/2010 Pfizer Inc. (PFE) All Cash $3.6 billion $14.25 $14.10 3,579,773 03/31/2011 1.06% 4.85%
+ EURX 12/01/2010 Axcan Holdings, Inc. (N/A) All Cash $583 million $12.00 $11.88 58,373 06/30/2011 1.01% 2.16%
+ MIGP 12/01/2010 United Fire & Casualty (UFCS) All Cash $191 million $28.25 $27.97 18,830 03/31/2011 1.00% 4.57%
+ BJGP 10/28/2010 Sanofi – aventis (N/A) All Cash $520.6 million $10.00 $9.91 673,511 03/31/2011 0.91% 4.14%
+ Q 04/22/2010 Century Link (CTL) All Stock $10.6 billion $7.46 $7.39 18,506,736 04/21/2011 0.90% 3.25%
+ ID 09/20/2010 Safran (N/A) All Cash $1.1 billion $12.00 $11.90 670,795 03/31/2011 0.84% 3.83%
+ OPTC 11/11/2010 TKH Group (N/A) All Cash N/A $2.45 $2.43 3,900 03/31/2011 0.82% 3.76%
+ VOLT 11/29/2010 Mellanox Technologies, Ltd. (MLNX) All Cash $176 million $8.75 $8.68 104,547 03/31/2011

0.81%

3.68%
+ CPII 11/26/2010 Veritas Capital (N/A) All Cash $525 million $19.50 $19.35 45,130 03/31/2011 0.78% 3.54%
+ ROAC 10/18/2010 Swenson Granite Co. (N/A) All Cash $39 million $5.25 $5.21 800 03/31/2011 0.77% 3.50%
+ ATHR 01/05/2011 QUALCOMM Incorporated (QCOM) All Cash $3.1 billion $45.00 $44.68 6,316,069 06/30/2011 0.72% 1.53%
+ OCNW 09/16/2010 Calix Inc. (CALX) Cash Plus Stock $171 million $8.59 $8.53 52,142 12/31/2010 0.67% 0.00%
+ LDSH 11/17/2010 Allegheny Technologies (ATI) Cash Plus Stock $778 million $49.13 $48.82 172,348 03/31/2011 0.64% 2.91%
+ DNEX 12/13/2010 Thermo Fisher Scientific Inc. (TMO) All Cash $2.1 billion $118.50 $117.80 188,823 03/31/2011 0.59% 2.71%
+ DLM 11/25/2010 Kohlberg Kravis Roberts & Co (KKR) All Cash $4 billion $19.00 $18.90 1,421,340 03/31/2011 0.53% 2.41%
+ MATK 12/21/2010 DSM (N/A) All Cash $1,087 million $31.50 $31.35 448,900 06/30/2011 0.48% 1.02%
+ CTV 10/25/2010 Carlyle (N/A) All Cash $3 billion $31.50 $31.38 2,079,752 03/31/2011 0.38% 1.74%
+ TTES 10/06/2010 Robbins & Myers Inc. (RBN) Cash Plus Stock $422 million $44.76 $44.61 245,818 12/31/2010

0.35%

0.00%
+ APSG 12/20/2010 Raytheon Company (RTN) All Cash N/A $38.00 $37.87 91,789 03/31/2011 0.34% 1.57%
+ BEZ 11/29/2010 ABB Ltd (ABB) All Cash $4.2 billion $63.50 $63.33 1,332,088 03/31/2011 0.27% 1.22%
+ FMR 10/28/2010 Fairfax Financial Holdings (FRFHF.PK) All Cash $294 million $16.50 $16.46 68,823 03/31/2011 0.24% 1.11%
+ LCRD 12/20/2010 ASSA ABLOY (N/A) All Cash $80 million $6.25 $6.24 432,937 03/31/2011 0.16% 0.73%
+ SVR 10/28/2010 Carlyle (N/A) All Cash $2.6 billion $31.00 $30.96 N/A 01/14/2011 0.13% 11.79%
+ TOD 12/23/2010 Vigor Industrial LLC (N/A) All Cash $130 million $22.27 $22.29 61,353 03/31/2011

-0.09%

-0.41%
+ CYPB 12/15/2010 Ramius LLC & Royalty Pharma (N/A) All Cash $255 million $6.50 $6.51 525,871 01/31/2011 -0.15% -2.67%
+ NST 10/18/2010 Northeast Utilities (NU) All Stock $4.17 billion $41.50 $41.79 412,542 09/30/2011 -0.70% -0.97%
+ ATLS 11/09/2010 Chevron Coproation (CVX) All Cash $4.3 billion $43.34 $44.05 838,139 03/31/2011 -1.61% -7.35%
+ JCG 11/23/2010 private equity firms TPG Capital and Leonard Green & Partners (N/A) All Cash $3 billion $43.50 $44.22 1,878,771 03/31/2011 -1.63% -7.43%
+ RAE 09/20/2010 Battery Ventures (N/A) All Cash $95 million $1.60 $1.64 35,335 12/31/2010 -2.44% 89.02%
+ CGC 10/01/2010 Gammon Gold (GRS) Cash Plus Stock $288 million $4.79 $4.92 279,378 12/31/2010 -2.74% 99.93%
+ GIW 10/25/2010 Community Bank System (CBU) All Cash $101.8 million $9.50 $9.8599 3,900 02/15/2011 -3.65% -37.01%
+ DYN 12/15/2010 Icahn Enterprises LP (IEP) All Cash $665 million $5.50 $5.73 1,184,805 03/31/2011 -4.01% -18.31%
+ SNIC 12/23/2010 Rovi Corporation (ROVI) All Cash $720 million $14.00 $14.68 3,238,575 03/31/2011 -4.63% -21.13%
+ MTXX 12/14/2010 H.I.G. Capital, LLC (N/A) All Cash $75.2 million $8.00 $8.64 80,413 03/31/2011 -7.41% -33.80%
+ CADE 10/06/2010 Community Bancorp LLC (N/A) All Stock $38 million $2.25 $2.49 38,901 03/31/2011 -9.78% -44.61%
+ DDMX 10/01/2010 Greenbriar Equity Group (N/A) All Cash $210 million $21.25 $24.85 103,239 02/15/2011 -14.49% -146.88%
+ ALY 08/12/2010 Seawell (N/A) All Cash $890 million $4.25 $7.40 365,286 12/31/2010 -42.57% 1553.72%
+ UAM 12/31/2010 CVS Caremark Corporation (CVS) All Cash $1.25 billion N/A $20.09 404,509 06/30/2010 N/A N/A



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