Merger Arbitrage Mondays – February 07, 2011

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February 7, 2011 | Merger Arbitrage | | Author Asif

Merger activity increased last week with five new deals announced and two 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 13
Total Number of Pending Deals
Cash Deals 47
Stock Deals 19
Stock & Cash Deals 10
Special Conditions 1
Total Number of Pending Deals 77

New Deals:

  1. The acquisition of ProLogis (PLD) by AMB Property Corpration (AMB) for 0.4464 shares of AMB Property common stock in an all stock deal.
  2. The acquisition of Pre-Paid Legal Services (PPD) by MidOcean Partners for $650 million or $66.50 per share in cash.
  3. The acquisition of Massey Energy (MEE) by Alpha Natural Resources (ANR) for $8.5 billion or 1.025 shares of Alpha common stock and $10.00 in cash in a stock plus cash deal.
  4. The acquisition of Silverleaf Resorts (SVLF) by Cerberus Capital Management for $94 million or $2.50 per share in cash
  5. The acquisition of Answers Corporation (ANSW) by AFCV Holdings LLC for $127 million or $10.50 per share in cash


Closed Deals:

  1. The acquisition of Applied Signal Technology (APSG) by Raytheon (RTN) on January 31, 2011
  2. The acquisition of LaserCard Corporation (LCRD) by ASSA ABLOY AB on January 24, 2011


Deal Updates:

  1. H.I.G. Capital increases the offer for Matrixx Initiates (MTXX) by 9.4% to $8.75 from its previous offer of $8 and extended the tender offer to February 14, 2011.
  2. India’s Reliance Industries is exploring options to challenge Chevron’s bid for Atlas Energy (ATLS).
  3. Carl Icahn defends his $5.50 bid for Dynegy (DYN) as the shares rise almost 10% above his bid price. I guess it must be tough competing against a homeless man who sent in his bid for the company.


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) $13.21 $9.30 06/30/2011

42.04%

107.30%
TLCR 06/07/2010 Grifols (GRF.MC) $29.50 $24.82 03/31/2011 18.84% 132.23%
TAM 01/19/2011 LAN Airlines S.A. (LFL) $24.70 $21.42 09/30/2011 15.29% 23.75%
DTG 04/26/2010 Avis (CAR) $55.33 $50.23 03/31/2011 10.15% 71.26%
DNBK 01/20/2011 People's United Financial Inc. (PBCT) $23.00 $21.82 06/30/2011 5.41% 13.80%
AAI 09/27/2010 Southwest Airlines (LUV) $7.75 $7.36 03/31/2011 5.30% 37.19%
SHMR 10/15/2010 Essilor (N/A) $14.50 $13.79 06/30/2011 5.15% 13.14%
ROME 10/12/2010 Berkshire Hills Bancorp (BHLB) $12.33 $11.81 03/31/2011 4.44% 31.17%
MAJC 09/21/2010 Bayside Capital Partners (N/A) $4.50 $4.3101 03/31/2011

4.41%

30.93%
CNXT 01/10/2011 Standard Microsystems Corp. (SMSC) $2.16 $2.08 06/30/2011 4.09% 10.43%

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 $13.21 $9.30 441,110 06/30/2011 42.04% 107.30%
+ TLCR 06/07/2010 Grifols (GRF.MC) Cash Plus Stock $3.4 billion $29.48 $24.82 3,583,326 03/31/2011 18.77% 131.75%
+ TAM 01/19/2011 LAN Airlines S.A. (LFL) All Stock N/A $24.70 $21.42 967,053 09/30/2011 15.29% 23.75%
+ DTG 04/26/2010 Avis (CAR) Cash Plus Stock $1.56 billion $55.33 $50.23 348,176 03/31/2011 10.15% 71.26%
+ DNBK 01/20/2011 People's United Financial Inc. (PBCT) All Cash $493 million $23.00 $21.82 134,028 06/30/2011 5.41% 13.80%
+ AAI 09/27/2010 Southwest Airlines (LUV) Cash Plus Stock $1.4 billion $7.75 $7.36 1,056,190 03/31/2011 5.30% 37.19%
+ SHMR 10/15/2010 Essilor (N/A) All Cash $130 million $14.50 $13.79 22,446 06/30/2011 5.15% 13.14%
+ ROME 10/12/2010 Berkshire Hills Bancorp (BHLB) All Stock $74 million $12.33 $11.81 2,290 03/31/2011

4.44%

31.17%
+ MAJC 09/21/2010 Bayside Capital Partners (N/A) All Cash $7.8 million $4.50 $4.3101 N/A 03/31/2011 4.41% 30.93%
+ CNXT 01/10/2011 Standard Microsystems Corp. (SMSC) Special Conditions $284 million $2.16 $2.08 552,936 06/30/2011 4.09% 10.43%
+ LEGC 12/21/2010 Berkshire Hills Bancorp (BHLB) Cash Plus Stock $108 million $13.59 $13.10 14,700 06/30/2011 3.76% 9.58%
+ NGAS 12/27/2010 Magnum Hunter Resources Corp. (MHR) All Stock $98 million $0.58 $0.555 836,417 06/30/2011 3.65% 9.33%
+ HYC 11/17/2010 Verifone Systems (PAY) All Stock $485 million $9.89 $9.55 561,726 09/30/2011 3.51% 5.45%
+ PGN 01/10/2011 Duke Energy Corporation (DUK) All Stock $13.7 billion $47.05 $45.47 737,777 12/31/2011 3.48% 3.88%
+ MI 12/17/2010 BMO Financial Group (BMO) All Stock $4.1 billion $7.50 $7.25 9,493,465 07/31/2011 3.42% 7.18%
+ MEE 01/29/2011 Alpha Natural Resources, Inc. (ANR) Cash Plus Stock $8.5 billion $64.42 $62.40 5,077,299 06/30/2011 3.23% 8.25%
+ PNNW 11/12/2010 City of Nashua (N/A) All Cash $138 million $29.00 $28.10 10,799 09/30/2011 3.20% 4.97%
+ SVLF 02/03/2011 Cerberus Capital Management (N/A) All Cash $94 million $2.50 $2.43 12,016,269 04/15/2011 2.88% 15.69%
+ CLFC 12/09/2010 Nara Bancorp Inc. (NARA) All Stock $285.7 million $7.69 $7.48 332,144 09/30/2011 2.77% 4.30%
+ WTNY 12/22/2010 Hancock Holding Company (HBHC) All Stock $1.5 billion $13.60 $13.24 386,556 06/30/2011 2.73% 6.97%
+ NAL 08/19/2010 First Niagara Financial Group (FNFG) Cash Plus Stock $1.5 billion $15.98 $15.57 498,601 05/15/2011 2.65% 9.98%
+ GAS 12/07/2010 AGL Resources Inc. (AGL) Cash Plus Stock $2.4 billion $52.55 $51.20 157,740 09/30/2011 2.63% 4.09%
+ ACL 12/15/2010 Novartis (NVS) All Cash $12.9 billion $168.00 $163.99 1,442,609 06/30/2011 2.45% 6.24%
+ NOVL 11/22/2010 Attachment Corporation (N/A) All Cash $2.2 billion $6.10 $5.9575 3,391,478 03/31/2011 2.39% 16.79%
+ PVG 09/21/2010 Penn Virginia Resource Partners (PVR) All Stock $954 million $27.83 $27.23 140,892 03/31/2011

2.21%

15.52%
+ WL 11/01/2010 M & T Bank Corporation (MTB) All Stock $351 million $4.49 $4.40 205,639 06/30/2011 2.15% 5.48%
+ SBIB 01/18/2011 Comerica Incorporated (CMA) All Stock $1.027 billion $9.13 $8.96 1,755,045 06/30/2011 1.89% 4.81%
+ VCGH 11/10/2010 Company's chairman of the Board, CEO, President and COO (N/A) All Cash $37 million $2.25 $2.21 28,895 03/31/2011 1.81% 12.70%
+ ALY 08/12/2010 Seawell (SEAW.OL) All Stock $890 million $7.75 $7.63 560,465 03/31/2011

1.63%

11.46%
+ CPEX 01/04/2011 FCB I Holdings Inc. (N/A) All Cash N/A $27.25 $26.862 9,859 06/30/2010 1.44% 0.00%
+ ABBC 01/26/2011 Susquehanna Bancshares, Inc. (SUSQ) All Stock $273 million $12.67 $12.49 64,212 09/30/2011 1.40% 2.18%
+ GIW 10/25/2010 Community Bank System (CBU) All Cash $101.8 million $9.50 $9.37 3,618 02/15/2011 1.39% 63.30%
+ CRXL 10/06/2010 Johnson & Johnson (JNJ) All Cash $2.41 billion $33.64 $33.19 67,530 03/31/2011 1.34% 9.42%
+ BUCY 11/15/2010 Caterpillar Inc (CAT) All Cash $8.6 billion $92.00 $90.88 548,553 06/30/2011 1.23% 3.15%
+ TCM 11/01/2010 Hanmax Investment Limited (N/A) All Cash N/A $4.50 $4.45 5,694 03/31/2011 1.12% 7.89%
+ AYE 02/11/2010 FirstEnergy (FE) All Stock $8.5 billion $26.43 $26.14 1,044,531 03/31/2011

1.12%

7.87%
+ Q 04/22/2010 Century Link (CTL) All Stock $10.6 billion $7.26 $7.1885 24,131,688 04/21/2011 1.02% 5.09%
+ ATHR 01/05/2011 QUALCOMM Incorporated (QCOM) All Cash $3.1 billion $45.00 $44.57 1,701,418 06/30/2011 0.96% 2.46%
+ TOD 12/23/2010 Vigor Industrial LLC (N/A) All Cash $130 million $22.27 $22.06 23,068 03/31/2011 0.95% 6.68%
+ VOLT 11/29/2010 Mellanox Technologies, Ltd. (MLNX) All Cash $176 million $8.75 $8.67 46,416 03/31/2011

0.92%

6.48%
+ OCNW 09/16/2010 Calix Inc. (CALX) Cash Plus Stock $171 million $8.92 $8.84 62,729 12/31/2010 0.88% 0.00%
+ JAS 12/23/2010 affiliate of Leonard Green & Partners LP (N/A) All Cash $1.6 billion $61.00 $60.48 332,548 06/30/2011 0.86% 2.19%
+ DNEX 12/13/2010 Thermo Fisher Scientific Inc. (TMO) All Cash $2.1 billion $118.50 $117.56 117,794 03/31/2011 0.80% 5.61%
+ NOVA 01/21/2011 Surgery Partners (N/A) All Cash $214 million $13.25 $13.15 191,004 06/30/2011 0.76% 1.94%
+ PPD 01/31/2011 MidOcean Partners (N/A) All Cash $650 million $66.50 $66 49,149 07/31/2011 0.76% 1.59%
+ ACV 09/27/2010 Unilever PLC (N/A) All Cash $3.7 billion $37.50 $37.23 434,754 03/31/2011 0.73% 5.09%
+ ID 09/20/2010 Safran (N/A) All Cash $1.1 billion $12.00 $11.93 657,553 03/31/2011 0.59% 4.12%
+ RAE 01/18/2011 Vector Capital (N/A) All Cash N/A $1.75 $1.74 12,505 06/30/2011 0.57% 1.47%
+ MIGP 12/01/2010 United Fire & Casualty (UFCS) All Cash $191 million $28.25 $28.10 2,684 03/31/2011 0.53% 3.75%
+ LDSH 11/17/2010 Allegheny Technologies (ATI) Cash Plus Stock $778 million $54.48 $54.19 85,665 03/31/2011

0.53%

3.69%
+ CADE 10/06/2010 Community Bancorp LLC (N/A) All Cash $38 million $2.50 $2.4871 3,140 03/31/2011 0.52% 3.64%
+ ADAM 08/30/2010 Ebix Inc. (EBIX) All Stock $66 million $7.48 $7.445 145,573 12/31/2010 0.47% 0.00%
+ ANSW 02/03/2011 AFCV Holdings LLC (N/A) All Cash $127 million $10.50 $10.46 450,009 06/30/2011 0.38% 0.98%
+ BJGP 10/28/2010 Sanofi – aventis (N/A) All Cash $520.6 million $10.00 $9.9625 114,068 03/31/2011 0.38% 2.64%
+ MTXX 12/14/2010 H.I.G. Capital, LLC (N/A) All Cash $75.2 million $8.75 $8.72 137,612 03/31/2011 0.34% 2.41%
+ PLA 01/10/2011 Icon Acquisition Holdings, L.P. (N/A) All Cash N/A $6.15 $6.13 213,329 03/31/2011 0.33% 2.29%
+ CPII 11/26/2010 Veritas Capital (N/A) All Cash $525 million $19.50 $19.44 12,022 03/31/2011 0.31% 2.17%
+ GXDX 01/24/2011 Novartis AG (NVS) All Cash $470 million $25.00 $24.93 314,214 06/30/2011

0.28%

0.72%
+ DLM 11/25/2010 Kohlberg Kravis Roberts & Co (KKR) All Cash $4 billion $19.00 $18.95 1,890,444 03/31/2011 0.26% 1.85%
+ TMRK 01/27/2011 Verizon Communications Inc. (VZ) All Cash $1.4 billion $19.00 $18.95 2,401,361 03/31/2011 0.26% 1.85%
+ EURX 12/01/2010 Axcan Holdings, Inc. (N/A) All Cash $583 million $12.00 $11.97 112,948 06/30/2011 0.25% 0.64%
+ FMR 10/28/2010 Fairfax Financial Holdings (FRFHF.PK) All Cash $294 million $16.50 $16.46 128,984 03/31/2011

0.24%

1.71%
+ DDMX 10/01/2010 TransForce Inc. (TFI.TO) All Cash $210 million $25.00 $24.96 15,224 02/15/2011 0.16% 7.31%
+ KG 10/12/2010 Pfizer Inc. (PFE) All Cash $3.6 billion $14.25 $14.23 264,424 03/31/2011 0.14% 0.99%
+ MATK 12/21/2010 DSM (N/A) All Cash $1,087 million $31.50 $31.46 743,376 06/30/2011 0.13% 0.32%
+ MFE 08/19/2010 Intel Corporation (INTC) All Cash $7.68 billion $48.00 $47.95 980,644 06/30/2011 0.10% 0.27%
+ JCG 11/23/2010 private equity firms TPG Capital and Leonard Green & Partners (N/A) All Cash $3 billion $43.50 $43.49 454,522 03/31/2011 0.02% 0.16%
+ APSG 12/20/2010 Raytheon Company (RTN) All Cash N/A $38.00 $38.01 N/A 03/31/2011 -0.03% -0.18%
+ PLD 01/31/2011 AMB Property Corporation (AMB) All Stock N/A $14.78 $14.83 6,195,413 06/30/2011 -0.37% -0.93%
+ NST 10/18/2010 Northeast Utilities (NU) All Stock $4.17 billion $44.27 $44.49 325,159 09/30/2011 -0.50% -0.78%
+ CGC 10/01/2010 Gammon Gold (GRS) Cash Plus Stock $288 million $5.05 $5.09 250,152 12/31/2010 -0.87% 8.35%
+ MCCC 11/15/2010 Chief Executive Rocco Commisso (N/A) All Cash $600 million $8.75 $8.83 406,128 06/30/2011 -0.91% -2.31%
+ SNIC 12/23/2010 Rovi Corporation (ROVI) All Cash $720 million $14.00 $14.80 1,091,944 03/31/2011 -5.41% -37.94%
+ ATLS 11/09/2010 Chevron Coproation (CVX) All Cash $4.3 billion $43.34 $45.82 2,325,644 03/31/2011 -5.41% -37.99%
+ SSCC 01/23/2011 Rock-Tenn Co. (RKT) All Cash $3.5 billion $35.00 $38.57 3,050,073 06/30/2011 -9.26% -23.63%
+ DYN 12/15/2010 Icahn Enterprises LP (IEP) All Cash $665 million $5.50 $6.10 1,996,198 03/31/2011 -9.84% -69.04%
+ UAM 12/31/2010 CVS Caremark Corporation (CVS) All Cash $1.25 billion N/A $20.38 149,687 06/30/2010 N/A N/A



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