Merger Arbitrage Mondays – January 17, 2011

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January 16, 2011 | Merger Arbitrage | | Author Asif

Merger activity remained steady last week with three new deals announced and three 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 9
Total Number of Pending Deals
Cash Deals 42
Stock Deals 16
Stock & Cash Deals 9
Special Conditions Deals 1
Total Number of Pending Deals 68

New Deals:

  1. The acquisition of Playboy Enterprises Inc. (PLA) by Icon Acquisition Holdings, L.P. for $6.15 per share in cash.
  2. The acquisition of Progress Energy Inc. (PGN) by Duke Energy Corporation (DUK). On the completion of merger Progress Energy’s shareholders will receive 2.6125 shares of common stock of Duke Energy in exchange for each share of Progress Energy common stock. Based on Duke Energy’s closing share price on Jan. 7, 2011, Progress Energy shareholders would receive a value of $46.48 per share, or $13.7 billion in total equity value.
  3. The acquisition of Conexant Systems, Inc. (CNXT) by Standard Microsystems Corp. (SMSC) for $2.21 per share in a cash plus stock deal. Conexant shareholders will receive $1.125 in cash and a fraction of a share of SMSC common stock equal to $1.125 divided by the volume weighted average price of SMSC common stock for the 20 trading days ending on the second trading day prior to closing, but in no event more than 0.04264 nor less than 0.03489 shares of SMSC common stock. On account of this varying ratio, the deal type is listed as “Special Conditions” in our Merger Arbitrage Tool.


Closed Deals:

  1. The acquisition of Syniverse Holdings (SVR) by Carlyle on January 13, 2011.
  2. The acquisition of CommScope Inc (CTV) by Carlyle on January 13, 2011.
  3. The acquisition of T-3 Energy Services (TTES) by Robbins & Myers Inc. (RBN) on January 10, 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) $12.56 $8.59 06/30/2011

46.18%

102.78%
TLCR 06/07/2010 Grifols (GRF.MC) $28.44 $22.86 03/31/2011 24.40% 122.01%
DTG 04/26/2010 Avis (CAR) $55.31 $48.13 03/31/2011 14.91% 74.54%
NGAS 12/27/2010 Magnum Hunter Resources Corp. (MHR) $0.67 $0.62 06/30/2011 8.75% 19.48%
MAJC 09/21/2010 Bayside Capital Partners (N/A) $4.50 $4.2152 03/31/2011 6.76% 33.78%
ROME 10/12/2010 Berkshire Hills Bancorp (BHLB) $12.74 $12.11 03/31/2011 5.22% 26.09%
PVG 09/21/2010 Penn Virginia Resource Partners (PVR) $28.34 $26.95 03/31/2011 5.16% 25.82%
PGN 01/10/2011 Duke Energy Corporation (DUK) $46.82 $44.73 12/31/2011 4.66% 4.89%
MI 12/17/2010 BMO Financial Group (BMO) $7.57 $7.24 07/31/2011 4.55% 8.52%
CNXT 01/10/2011 Standard Microsystems Corp. (SMSC) $2.21 $2.12 06/30/2011 4.48% 9.96%

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 $12.56 $8.59 966,421 06/30/2011 46.18% 102.78%
+ TLCR 06/07/2010 Grifols (GRF.MC) Cash Plus Stock $3.4 billion $28.44 $22.86 409,474 03/31/2011 24.40% 122.01%
+ DTG 04/26/2010 Avis (CAR) Cash Plus Stock $1.56 billion $55.31 $48.13 174,351 03/31/2011 14.91% 74.54%
+ NGAS 12/27/2010 Magnum Hunter Resources Corp. (MHR) All Stock $98 million $0.67 $0.62 2,235,132 06/30/2011 8.75% 19.48%
+ MAJC 09/21/2010 Bayside Capital Partners (N/A) All Cash $7.8 million $4.50 $4.2152 100 03/31/2011 6.76% 33.78%
+ ROME 10/12/2010 Berkshire Hills Bancorp (BHLB) All Stock $74 million $12.74 $12.11 2,627 03/31/2011 5.22% 26.09%
+ PVG 09/21/2010 Penn Virginia Resource Partners (PVR) All Stock $954 million $28.34 $26.95 131,922 03/31/2011 5.16% 25.82%
+ PGN 01/10/2011 Duke Energy Corporation (DUK) All Stock $13.7 billion $46.82 $44.73 1,543,626 12/31/2011 4.66% 4.89%
+ MI 12/17/2010 BMO Financial Group (BMO) All Stock $4.1 billion $7.57 $7.24 9,654,461 07/31/2011

4.55%

8.52%
+ CNXT 01/10/2011 Standard Microsystems Corp. (SMSC) Special Conditions $284 million $2.21 $2.12 2,942,415 06/30/2011 4.48% 9.96%
+ HYC 11/17/2010 Verifone Systems (PAY) All Stock $485 million $10.08 $9.66 321,120 09/30/2011 4.33% 6.18%
+ LEGC 12/21/2010 Berkshire Hills Bancorp (BHLB) Cash Plus Stock $108 million $14.00 $13.42 32,011 06/30/2011 4.31% 9.58%
+ ADAM 08/30/2010 Ebix Inc. (EBIX) All Stock $66 million $7.79 $7.49 28,226 12/31/2010 3.96% 0.00%
+ PNNW 11/12/2010 City of Nashua (N/A) All Cash $138 million $29.00 $27.92 4,763 09/30/2011 3.87% 5.52%
+ SHMR 10/15/2010 Essilor (N/A) All Cash $130 million $14.50 $14.02 3,798 06/30/2011 3.42% 7.62%
+ AAI 09/27/2010 Southwest Airlines (LUV) Cash Plus Stock $1.4 billion $7.75 $7.50 1,583,810 03/31/2011 3.33% 16.67%
+ ACL 12/15/2010 Novartis (NVS) All Cash $12.9 billion $168.00 $163.13 1,407,830 06/30/2011 2.99% 6.64%
+ WTNY 12/22/2010 Hancock Holding Company (HBHC) All Stock $1.5 billion $14.07 $13.67 1,219,042 06/30/2011 2.93% 6.51%
+ NOVL 11/22/2010 Attachment Corporation (N/A) All Cash $2.2 billion $6.10 $5.94 3,779,738 03/31/2011 2.69% 13.47%
+ CLFC 12/09/2010 Nara Bancorp Inc. (NARA) All Stock $285.7 million $7.59 $7.39 148,529 09/30/2011 2.65% 3.77%
+ GAS 12/07/2010 AGL Resources Inc. (AGL) Cash Plus Stock $2.4 billion $51.97 $50.64 433,531 09/30/2011 2.63% 3.75%
+ NAL 08/19/2010 First Niagara Financial Group (FNFG) Cash Plus Stock $1.5 billion $15.90 $15.49 276,133 05/15/2011 2.61% 8.09%
+ TCM 11/01/2010 Hanmax Investment Limited (N/A) All Cash N/A $4.50 $4.40 6,450 03/31/2011 2.27% 11.36%
+ CPEX 01/04/2011 FCB I Holdings Inc. (N/A) All Cash N/A $27.25 $26.66 1,926 06/30/2010 2.21% 0.00%
+ BUCY 11/15/2010 Caterpillar Inc (CAT) All Cash $8.6 billion $92.00 $90.30 800,200 06/30/2011

1.88%

4.19%
+ VCGH 11/10/2010 Company's chairman of the Board, CEO, President and COO (N/A) All Cash $37 million $2.25 $2.21 36,086 03/31/2011 1.81% 9.05%
+ MCCC 11/15/2010 Chief Executive Rocco Commisso (N/A) All Cash $600 million $8.75 $8.61 219,134 06/30/2011 1.63% 3.62%
+ AYE 02/11/2010 FirstEnergy (FE) All Stock $8.5 billion $25.75 $25.40 892,242 03/31/2011 1.36% 6.81%
+ MFE 08/19/2010 Intel Corporation (INTC) All Cash $7.68 billion $48.00 $47.38 2,704,049 06/30/2011 1.31% 2.91%
+ OPTC 11/11/2010 TKH Group (N/A) All Cash N/A $2.45 $2.42 1,500 03/31/2011 1.24% 6.20%
+ Q 04/22/2010 Century Link (CTL) All Stock $10.6 billion $7.37 $7.28 20,372,566 04/21/2011 1.19% 4.62%
+ JAS 12/23/2010 affiliate of Leonard Green & Partners LP (N/A) All Cash $1.6 billion $61.00 $60.30 365,877 06/30/2011 1.16% 2.58%
+ VOLT 11/29/2010 Mellanox Technologies, Ltd. (MLNX) All Cash $176 million $8.75 $8.66 122,485 03/31/2011 1.04% 5.20%
+ ACV 09/27/2010 Unilever PLC (N/A) All Cash $3.7 billion $37.50 $37.13 509,018 03/31/2011 1.00% 4.98%
+ EURX 12/01/2010 Axcan Holdings, Inc. (N/A) All Cash $583 million $12.00 $11.8925 269,941 06/30/2011 0.90% 2.01%
+ WL 11/01/2010 M & T Bank Corporation (MTB) All Stock $351 million $4.44 $4.40 813,059 06/30/2011 0.85% 1.90%
+ ATHR 01/05/2011 QUALCOMM Incorporated (QCOM) All Cash $3.1 billion $45.00 $44.62 2,450,119 06/30/2011 0.85% 1.90%
+ PLA 01/10/2011 Icon Acquisition Holdings, L.P. (N/A) All Cash N/A $6.15 $6.10 864,512 03/31/2011 0.82% 4.10%
+ BJGP 10/28/2010 Sanofi – aventis (N/A) All Cash $520.6 million $10.00 $9.92 187,911 03/31/2011 0.81% 4.03%
+ CRXL 10/06/2010 Johnson & Johnson (JNJ) All Cash $2.41 billion $32.97 $32.72 56,891 03/31/2011 0.77% 3.85%
+ MIGP 12/01/2010 United Fire & Casualty (UFCS) All Cash $191 million $28.25 $28.041 15,304 03/31/2011 0.75% 3.73%
+ ALY 08/12/2010 Seawell (SEAW.OL) All Stock $890 million $8.06 $8.00 360,325 03/31/2011

0.72%

3.62%
+ ID 09/20/2010 Safran (N/A) All Cash $1.1 billion $12.00 $11.93 2,328,427 03/31/2011 0.59% 2.93%
+ KG 10/12/2010 Pfizer Inc. (PFE) All Cash $3.6 billion $14.25 $14.17 3,158,859 03/31/2011 0.56% 2.82%
+ OCNW 09/16/2010 Calix Inc. (CALX) Cash Plus Stock $171 million $8.66 $8.61 50,299 12/31/2010 0.55% 0.00%
+ CPII 11/26/2010 Veritas Capital (N/A) All Cash $525 million $19.50 $19.40 45,397 03/31/2011 0.52% 2.58%
+ LDSH 11/17/2010 Allegheny Technologies (ATI) Cash Plus Stock $778 million $50.35 $50.11 147,342 03/31/2011 0.48% 2.41%
+ ROAC 10/18/2010 Swenson Granite Co. (N/A) All Cash $39 million $5.25 $5.23 900 03/31/2011 0.38% 1.91%
+ DNEX 12/13/2010 Thermo Fisher Scientific Inc. (TMO) All Cash $2.1 billion $118.50 $118.08 112,156 03/31/2011

0.36%

1.78%
+ LCRD 12/20/2010 ASSA ABLOY (N/A) All Cash $80 million $6.25 $6.23 220,409 03/31/2011 0.32% 1.61%
+ DLM 11/25/2010 Kohlberg Kravis Roberts & Co (KKR) All Cash $4 billion $19.00 $18.94 7,611,131 03/31/2011 0.32% 1.58%
+ APSG 12/20/2010 Raytheon Company (RTN) All Cash N/A $38.00 $37.91 66,894 03/31/2011

0.24%

1.19%
+ BEZ 11/29/2010 ABB Ltd (ABB) All Cash $4.2 billion $63.50 $63.37 488,230 03/31/2011 0.21% 1.03%
+ FMR 10/28/2010 Fairfax Financial Holdings (FRFHF.PK) All Cash $294 million $16.50 $16.50 47,372 03/31/2011 0.00% 0.00%
+ MATK 12/21/2010 DSM (N/A) All Cash $1,087 million $31.50 $31.50 267,658 06/30/2011 0.00% 0.00%
+ TOD 12/23/2010 Vigor Industrial LLC (N/A) All Cash $130 million $22.27 $22.2801 25,028 03/31/2011 -0.05% -0.23%
+ NST 10/18/2010 Northeast Utilities (NU) All Stock $4.17 billion $42.00 $42.28 289,742 09/30/2011 -0.67% -0.95%
+ JCG 11/23/2010 private equity firms TPG Capital and Leonard Green & Partners (N/A) All Cash $3 billion $43.50 $43.82 745,074 03/31/2011 -0.73% -3.65%
+ ATLS 11/09/2010 Chevron Coproation (CVX) All Cash $4.3 billion $43.34 $44.33 1,105,007 03/31/2011 -2.23% -11.17%
+ CGC 10/01/2010 Gammon Gold (GRS) Cash Plus Stock $288 million $4.86 $4.98 141,256 12/31/2010 -2.45% 52.50%
+ RAE 09/20/2010 Battery Ventures (N/A) All Cash $95 million $1.60 $1.66 136,726 12/31/2010 -3.61% 77.60%
+ DYN 12/15/2010 Icahn Enterprises LP (IEP) All Cash $665 million $5.50 $5.80 2,723,864 03/31/2011 -5.17% -25.86%
+ GIW 10/25/2010 Community Bank System (CBU) All Cash $101.8 million $9.50 $10.20 35,983 02/15/2011 -6.86% -86.38%
+ MTXX 12/14/2010 H.I.G. Capital, LLC (N/A) All Cash $75.2 million $8.00 $8.68 78,614 03/31/2011 -7.83% -39.17%
+ SNIC 12/23/2010 Rovi Corporation (ROVI) All Cash $720 million $14.00 $15.38 1,406,440 03/31/2011 -8.97% -44.86%
+ CADE 10/06/2010 Community Bancorp LLC (N/A) All Stock $38 million $2.25 $2.49 4,816 03/31/2011 -9.78% -48.89%
+ DDMX 10/01/2010 Greenbriar Equity Group (N/A) All Cash $210 million $21.25 $24.85 31,922 02/15/2011 -14.49% -182.34%
+ UAM 12/31/2010 CVS Caremark Corporation (CVS) All Cash $1.25 billion N/A $20.36 194,233 06/30/2010 N/A N/A



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