Merger Arbitrage Mondays – January 31, 2011

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January 31, 2011 | Merger Arbitrage | | Author Asif

Merger activity increased last week with four new deals announced and two deasl 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 12
Total Number of Pending Deals
Cash Deals 45
Stock Deals 18
Stock & Cash Deals 10
Special Conditions 1
Total Number of Pending Deals 74

New Deals:

  1. The acquisition of Genoptix, Inc. (GXDX) by Novartis AG (NVS) for $25 per share in cash.
  2. The acquisition of Abington Bancorp Inc. (ABBC) by Susquehanna Bancshares, Inc. (SUSQ). Under terms of the agreement, Abington shareholders will receive 1.32 shares of Susquehanna common stock for each share of Abington common stock on the completion of merger.
  3. The acquisition of Terremark Worldwide, Inc. (TMRK) by Verizon Communications Inc. (VZ) for $19 per share in cash.
  4. The acquisition of Massey Energy Co. (MEE) by Alpha Natural Resources, Inc. (ANR). The deal is expected to close in mid-2011 for $8.5 billion. Under the terms of the deal, Massey stockholders will receive 1.025 shares of Alpha common stock and $10.00 in cash for each share they own.

The spread on the Massey Energy (MEE) is large because the deal was announced over the weekend and the customary pop will occur Monday morning.

It was interesting to see that the spread on the Abington Bancorp deal is  just 1.47% now but the spread on last week’s bank deal with People’s United Financial Inc (PBCT) acquiring Danver’s Bancorp (DNBK) has actually expanded to 6.68% or 16.14% annualized.

Closed Deals:

  1. The acquistion of Baldor Electric Co. (BEZ) by ABB Ltd. (ABB) on January 27, 2011.
  2. The acquisition of Optelecom – NKF, Inc (OPTC) by TKH Group on January 28, 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) $12.62 $8.64 06/30/2011 46.11% 111.46%
MEE 01/29/2011 Alpha Natural Resources, Inc. (ANR) $69.33 $57.23 06/30/2011 21.14% 51.09%
TLCR 06/07/2010 Grifols (GRF.MC) $28.77 $24.21 03/31/2011 18.83% 114.54%
DTG 04/26/2010 Avis (CAR) $54.90 $47.70 03/31/2011 15.10% 91.88%
TAM 01/19/2011 LAN Airlines S.A. (LFL) $25.51 $23.44 09/30/2011 8.81% 13.24%
DNBK 01/20/2011 People’s United Financial Inc. (PBCT) $23.00 $21.56 06/30/2011 6.68% 16.14%
MAJC 09/21/2010 Bayside Capital Partners (N/A) $4.50 $4.2244 03/31/2011 6.52% 39.69%
SHMR 10/15/2010 Essilor (N/A) $14.50 $13.67 06/30/2011 6.07% 14.68%
CNXT 01/10/2011 Standard Microsystems Corp. (SMSC) $2.16 $2.05 06/30/2011 5.21% 12.60%
NGAS 12/27/2010 Magnum Hunter Resources Corp. (MHR) $0.58 $0.555 06/30/2011 5.18% 12.52%

List of 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 $12.62 $8.64 1,405,633 06/30/2011 46.11% 111.46%
+ MEE 01/29/2011 Alpha Natural Resources, Inc. (ANR) Cash Plus Stock $8.5 billion $69.33 $57.23 8,069,645 06/30/2011 21.14% 51.09%
+ TLCR 06/07/2010 Grifols (GRF.MC) Cash Plus Stock $3.4 billion $28.77 $24.21 1,836,884 03/31/2011 18.83% 114.54%
+ DTG 04/26/2010 Avis (CAR) Cash Plus Stock $1.56 billion $54.90 $47.70 286,412 03/31/2011 15.10% 91.88%
+ TAM 01/19/2011 LAN Airlines S.A. (LFL) All Stock N/A $25.51 $23.44 569,005 09/30/2011 8.81% 13.24%
+ DNBK 01/20/2011 People’s United Financial Inc. (PBCT) All Cash $493 million $23.00 $21.56 226,434 06/30/2011 6.68% 16.14%
+ MAJC 09/21/2010 Bayside Capital Partners (N/A) All Cash $7.8 million $4.50 $4.2244 924 03/31/2011 6.52% 39.69%
+ SHMR 10/15/2010 Essilor (N/A) All Cash $130 million $14.50 $13.67 41,250 06/30/2011 6.07% 14.68%
+ CNXT 01/10/2011 Standard Microsystems Corp. (SMSC) Special Conditions $284 million $2.16 $2.05 1,550,266 06/30/2011 5.21% 12.60%
+ NGAS 12/27/2010 Magnum Hunter Resources Corp. (MHR) All Stock $98 million $0.58 $0.555 997,892 06/30/2011 5.18% 12.52%
+ AAI 09/27/2010 Southwest Airlines (LUV) Cash Plus Stock $1.4 billion $7.75 $7.37 4,138,104 03/31/2011 5.16% 31.37%
+ PVG 09/21/2010 Penn Virginia Resource Partners (PVR) All Stock $954 million $27.19 $26.11 145,134 03/31/2011 4.12% 25.05%
+ MI 12/17/2010 BMO Financial Group (BMO) All Stock $4.1 billion $7.26 $6.99 25,456,754 07/31/2011 3.87% 7.76%
+ PGN 01/10/2011 Duke Energy Corporation (DUK) All Stock $13.7 billion $46.92 $45.34 1,468,530 12/31/2011 3.49% 3.80%
+ HYC 11/17/2010 Verifone Systems (PAY) All Stock $485 million $9.20 $8.89 414,443 09/30/2011 3.46% 5.20%
+ PNNW 11/12/2010 City of Nashua (N/A) All Cash $138 million $29.00 $28.03 20,585 09/30/2011 3.46% 5.20%
+ ALY 08/12/2010 Seawell (SEAW.OL) All Stock $890 million $7.63 $7.39 2,557,988 03/31/2011 3.26% 19.81%
+ ACL 12/15/2010 Novartis (NVS) All Cash $12.9 billion $168.00 $162.95 1,687,180 06/30/2011 3.10% 7.49%
+ GAS 12/07/2010 AGL Resources Inc. (AGL) Cash Plus Stock $2.4 billion $51.45 $49.93 513,790 09/30/2011 3.05% 4.57%
+ CLFC 12/09/2010 Nara Bancorp Inc. (NARA) All Stock $285.7 million $7.45 $7.24 229,847 09/30/2011 2.94% 4.42%
+ WTNY 12/22/2010 Hancock Holding Company (HBHC) All Stock $1.5 billion $13.73 $13.35 887,066 06/30/2011 2.82% 6.83%
+ NAL 08/19/2010 First Niagara Financial Group (FNFG) Cash Plus Stock $1.5 billion $15.38 $15.01 648,073 05/15/2011 2.45% 8.52%
+ RAE 01/18/2011 Vector Capital (N/A) All Cash N/A $1.75 $1.71 36,546 06/30/2011 2.34% 5.65%
+ ROME 10/12/2010 Berkshire Hills Bancorp (BHLB) All Stock $74 million $12.01 $11.74 789 03/31/2011 2.27% 13.80%
+ LEGC 12/21/2010 Berkshire Hills Bancorp (BHLB) Cash Plus Stock $108 million $13.26 $13.03 2,835 06/30/2011 1.80% 4.36%
+ NOVL 11/22/2010 Attachment Corporation (N/A) All Cash $2.2 billion $6.10 $6.00 2,759,632 03/31/2011 1.67% 10.14%
+ Q 04/22/2010 Century Link (CTL) All Stock $10.6 billion $7.16 $7.05 27,236,386 04/21/2011 1.54% 6.94%
+ WL 11/01/2010 M & T Bank Corporation (MTB) All Stock $351 million $4.44 $4.37 988,611 06/30/2011 1.51% 3.65%
+ MCCC 11/15/2010 Chief Executive Rocco Commisso (N/A) All Cash $600 million $8.75 $8.62 257,369 06/30/2011 1.51% 3.65%
+ ABBC 01/26/2011 Susquehanna Bancshares, Inc. (SUSQ) All Stock $273 million $12.63 $12.45 374,976 09/30/2011 1.47% 2.20%
+ BUCY 11/15/2010 Caterpillar Inc (CAT) All Cash $8.6 billion $92.00 $90.68 1,493,328 06/30/2011 1.46% 3.52%
+ CRXL 10/06/2010 Johnson & Johnson (JNJ) All Cash $2.41 billion $33.68 $33.2201 187,122 03/31/2011 1.38% 8.37%
+ TCM 11/01/2010 Hanmax Investment Limited (N/A) All Cash N/A $4.50 $4.44 53,400 03/31/2011 1.35% 8.22%
+ VCGH 11/10/2010 Company’s chairman of the Board, CEO, President and COO (N/A) All Cash $37 million $2.25 $2.22 22,367 03/31/2011 1.35% 8.22%
+ CPEX 01/04/2011 FCB I Holdings Inc. (N/A) All Cash N/A $27.25 $26.89 38,200 06/30/2010 1.34% 0.00%
+ SBIB 01/18/2011 Comerica Incorporated (CMA) All Stock $1.027 billion $8.98 $8.87 1,358,357 06/30/2011 1.29% 3.12%
+ ADAM 08/30/2010 Ebix Inc. (EBIX) All Stock $66 million $7.03 $6.94 32,698 12/31/2010 1.26% 0.00%
+ JAS 12/23/2010 affiliate of Leonard Green & Partners LP (N/A) All Cash $1.6 billion $61.00 $60.28 590,285 06/30/2011 1.19% 2.89%
+ AYE 02/11/2010 FirstEnergy (FE) All Stock $8.5 billion $25.86 $25.59 1,584,272 03/31/2011 1.05% 6.41%
+ OCNW 09/16/2010 Calix Inc. (CALX) Cash Plus Stock $171 million $8.46 $8.37 56,481 12/31/2010 1.05% 0.00%
+ ATHR 01/05/2011 QUALCOMM Incorporated (QCOM) All Cash $3.1 billion $45.00 $44.54 2,277,122 06/30/2011 1.03% 2.50%
+ VOLT 11/29/2010 Mellanox Technologies, Ltd. (MLNX) All Cash $176 million $8.75 $8.67 117,841 03/31/2011 0.92% 5.61%
+ ACV 09/27/2010 Unilever PLC (N/A) All Cash $3.7 billion $37.50 $37.17 783,912 03/31/2011 0.89% 5.40%
+ NOVA 01/21/2011 Surgery Partners (N/A) All Cash $214 million $13.25 $13.135 40,210 06/30/2011 0.88% 2.12%
+ ID 09/20/2010 Safran (N/A) All Cash $1.1 billion $12.00 $11.92 574,164 03/31/2011 0.67% 4.08%
+ MIGP 12/01/2010 United Fire & Casualty (UFCS) All Cash $191 million $28.25 $28.08 21,450 03/31/2011 0.61% 3.68%
+ LDSH 11/17/2010 Allegheny Technologies (ATI) Cash Plus Stock $778 million $53.01 $52.72 123,815 03/31/2011 0.55% 3.32%
+ BJGP 10/28/2010 Sanofi – aventis (N/A) All Cash $520.6 million $10.00 $9.95 1,964,385 03/31/2011 0.50% 3.06%
+ DLM 11/25/2010 Kohlberg Kravis Roberts & Co (KKR) All Cash $4 billion $19.00 $18.91 4,215,852 03/31/2011 0.48% 2.90%
+ CPII 11/26/2010 Veritas Capital (N/A) All Cash $525 million $19.50 $19.41 54,833 03/31/2011 0.46% 2.82%
+ DDMX 10/01/2010 TransForce Inc. (TFI.TO) All Cash $210 million $25.00 $24.89 42,762 02/15/2011 0.44% 10.08%
+ TMRK 01/27/2011 Verizon Communications Inc. (VZ) All Cash $1.4 billion $19.00 $18.92 37,335,580 03/31/2011 0.42% 2.57%
+ DNEX 12/13/2010 Thermo Fisher Scientific Inc. (TMO) All Cash $2.1 billion $118.50 $118.01 101,666 03/31/2011 0.42% 2.53%
+ CADE 10/06/2010 Community Bancorp LLC (N/A) All Cash $38 million $2.50 $2.49 300 03/31/2011 0.40% 2.44%
+ EURX 12/01/2010 Axcan Holdings, Inc. (N/A) All Cash $583 million $12.00 $11.96 273,557 06/30/2011 0.33% 0.81%
+ PLA 01/10/2011 Icon Acquisition Holdings, L.P. (N/A) All Cash N/A $6.15 $6.13 436,131 03/31/2011 0.33% 1.98%
+ FMR 10/28/2010 Fairfax Financial Holdings (FRFHF.PK) All Cash $294 million $16.50 $16.45 37,738 03/31/2011 0.30% 1.85%
+ MATK 12/21/2010 DSM (N/A) All Cash $1,087 million $31.50 $31.41 768,731 06/30/2011 0.29% 0.69%
+ MFE 08/19/2010 Intel Corporation (INTC) All Cash $7.68 billion $48.00 $47.87 2,700,533 06/30/2011 0.27% 0.66%
+ JCG 11/23/2010 private equity firms TPG Capital and Leonard Green & Partners (N/A) All Cash $3 billion $43.50 $43.40 1,070,331 03/31/2011 0.23% 1.40%
+ KG 10/12/2010 Pfizer Inc. (PFE) All Cash $3.6 billion $14.25 $14.22 2,300,943 03/31/2011 0.21% 1.28%
+ GXDX 01/24/2011 Novartis AG (NVS) All Cash $470 million $25.00 $24.95 1,054,833 06/30/2011 0.20% 0.48%
+ TOD 12/23/2010 Vigor Industrial LLC (N/A) All Cash $130 million $22.27 $22.24 25,042 03/31/2011 0.13% 0.82%
+ APSG 12/20/2010 Raytheon Company (RTN) All Cash N/A $38.00 $37.985 309,917 03/31/2011 0.04% 0.24%
+ MTXX 12/14/2010 H.I.G. Capital, LLC (N/A) All Cash $75.2 million $8.00 $8.00 90,843 03/31/2011 0.00% 0.00%
+ LCRD 12/20/2010 ASSA ABLOY (N/A) All Cash $80 million $6.25 $6.25 109,641 03/31/2011 0.00% 0.00%
+ CGC 10/01/2010 Gammon Gold (GRS) Cash Plus Stock $288 million $4.74 $4.74 444,935 12/31/2010 -0.03% 0.00%
+ NST 10/18/2010 Northeast Utilities (NU) All Stock $4.17 billion $42.99 $43.27 473,510 09/30/2011 -0.64% -0.96%
+ GIW 10/25/2010 Community Bank System (CBU) All Cash $101.8 million $9.50 $9.57 5,700 02/15/2011 -0.73% -16.69%
+ ATLS 11/09/2010 Chevron Coproation (CVX) All Cash $4.3 billion $43.34 $44.0308 2,377,283 03/31/2011 -1.57% -9.54%
+ SNIC 12/23/2010 Rovi Corporation (ROVI) All Cash $720 million $14.00 $14.48 2,410,677 03/31/2011 -3.31% -20.17%
+ SSCC 01/23/2011 Rock-Tenn Co. (RKT) All Cash $3.5 billion $35.00 $37.37 4,926,490 06/30/2011 -6.34% -15.33%
+ DYN 12/15/2010 Icahn Enterprises LP (IEP) All Cash $665 million $5.50 $6.08 2,954,516 03/31/2011 -9.54% -58.03%
+ UAM 12/31/2010 CVS Caremark Corporation (CVS) All Cash $1.25 billion N/A $20.21 1,621,449 06/30/2010 N/A N/A



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