Merger Arbitrage Mondays – May 21, 2012

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May 20, 2012 | Merger Arbitrage | | Author Asif

Merger activity increased last week with five new deals announced and four closing.

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

Deal Statistics:

Total Number of Deals Closed in 2012 63
Total Number of Pending Deals
Cash Deals 42
Stock Deals 11
Stock & Cash Deals 7
Total Number of Pending Deals 60
Total Deal Size $382.96 billion

New Deals:

  1. The acquisition of Golfsmith International (GOLF) by Golf Town, Canada’s largest specialty golf retailer, for $96.5 million or $6.10 per share in cash.
  2. The acquisition of Tii Network Technologies (TIII) by Kelta Inc. for $33.1 million or $2.15 per share in cash.
  3. The acquisition of Citizens South Banking Corporation (CSBC) by Park Sterling Bank (PSTB) for $77.8 million in a stock or cash deal. Under the terms of the agreement, shareholders of Citizens South Banking Corporation will have the right to receive either $7.00 in cash or 1.4799 Park Sterling shares for each Citizens South share they hold, subject to the limitation that the total consideration will consist of 30.0% in cash and 70.0% in Park Sterling shares. We have listed the deal as an all stock transaction in our Merger Arbitrage Tool.
  4. The acquisition of BIDZ.com (BIDZ) by Glendon Group for $0.78 per share in cash.
  5. The acquisition of Pansoft Company Limited (PSOF) by Timesway Group Limited for $4.15 per share in cash. Timesway Group Limited is controlled by Chairman Hugh Wang and CEO Guoqiang Lin and had voting power over 63% of the Company’s voting securities as of June 30, 2011. This is essentially a “going private” transaction with management attempting to take the company private.

Deal Updates:

On Saturday, Google received approval from China for the Motorola Mobility (MMI) deal and the deal is expected to close this week.

Closed Deals:

  1. The acquisition of Delphi Financial Group, Inc. (DFG) by Tokio Marine Holdings on May 15, 2012.
  2. The acquisition of X-Rite, Incorporated (XRIT) by Danaher (DHR) on May 15, 2012.
  3. The acquisition of Archipelago (ARCL) by PLATO Learning on May 18, 2012.
  4. The acquisition of Thomas & Betts Corporation (TNB) by ABB Ltd (ABB) on May 18, 2012.

Top 10 deals with largest spreads:

Symbol Announced

Date

Acquiring

Company

Closing

Price

Last

Price

Closing

Date

Profit Annualized

Profit

CADC 10/24/2011 Novel Gain Holdings Limited (N/A) $2.65 $1.75 06/30/2012 51.43% 469.29%
PBY 01/30/2012 The Gores Group (N/A) $15.00 $11.17 06/30/2012 34.29% 312.88%
VQ 01/16/2012 Denver Parent Corporation (N/A) $12.50 $9.49 06/30/2012 31.72% 289.42%
ABVA 05/03/2012 Washington First Bankshares (WFBI.OB) $4.77 $4.10 12/31/2012 16.28% 26.53%
TUDO 03/12/2012 Youku Inc. (YOKU) $32.33 $29.98 09/30/2012 7.84% 21.68%
GEOI 04/25/2012 Halcon Resources (HK) $36.04 $33.48 09/30/2012 7.63% 21.11%
PSOF 05/17/2012 Timesway Group Limited (N/A) $4.15 $3.86 09/30/2012 7.51% 20.77%
INCB 01/25/2012 Old National Bancorp Capital (ONB) $21.95 $20.70 06/30/2012 6.01% 54.88%
SCMF 03/27/2012 Capital Bank Financial Corp (N/A) $2.88 $2.73 06/30/2012 5.49% 50.14%
CEBK 05/01/2012 Independent Bank Corp. (INDB) $32.00 $30.50 12/31/2012 4.92% 8.01%

List of all pending deals:

Symbol Announced

Date

Acquiring

Company

Deal

Type

Closing

Value

Closing

Price

Last

Price

Volume Closing

Date

Profit Annu.

Profit

+ CADC 10/24/2011 Novel Gain Holdings Limited (N/A) All Cash N/A $2.65 $1.75 78,304 06/30/2012 51.43% 469.29%
+ PBY 01/30/2012 The Gores Group (N/A) All Cash $1 billion $15.00 $11.17 701,514 06/30/2012 34.29% 312.88%
+ VQ 01/16/2012 Denver Parent Corporation (N/A) All Cash $1.5 billion $12.50 $9.49 289,491 06/30/2012 31.72% 289.42%
+ ABVA 05/03/2012 Washington First Bankshares (WFBI.OB) All Stock $24.4 million $4.77 $4.10 14,554 12/31/2012 16.28% 26.53%
+ TUDO 03/12/2012 Youku Inc. (YOKU) All Stock $1 billion $32.33 $29.98 127,340 09/30/2012 7.84% 21.68%
+ GEOI 04/25/2012 Halcon Resources (HK) Cash Plus Stock $1 billion $36.04 $33.48 430,608 09/30/2012 7.63% 21.11%
+ PSOF 05/17/2012 Timesway Group Limited (N/A) All Cash N $4.15 $3.86 16,042 09/30/2012 7.51% 20.77%
+ INCB 01/25/2012 Old National Bancorp Capital (ONB) All Stock $79.2 million $21.95 $20.70 825 06/30/2012 6.01% 54.88%
+ SCMF 03/27/2012 Capital Bank Financial Corp (N/A) All Cash N/A $2.88 $2.73 12,176 06/30/2012 5.49% 50.14%
+ CEBK 05/01/2012 Independent Bank Corp. (INDB) All Cash $54.8 million $32.00 $30.50 1,235 12/31/2012 4.92% 8.01%
+ TIII 05/14/2012 Kelta, Inc. (N/A) All Cash $33.1 million $2.15 $2.05 190,273 09/30/2012 4.88% 13.49%
+ PSS 05/01/2012 a consortium comprised of Wolverine Worldwide, Blum Capital Partners and Golden Gate Capital (WWW) All Cash $2 billion $21.75 $21.04 2,575,313 10/31/2012 3.37% 7.56%
+ BIDZ 05/17/2012 Glendon Group, Inc. (N/A) All Cash N/A $0.78 $0.755 555,704 12/31/2012 3.31% 5.40%
+ PGN 01/10/2011 Duke Energy Corporation (DUK) All Stock $13.7 billion $56.06 $54.36 2,019,830 07/01/2012 3.14% 27.91%
+ TAM 01/19/2011 LAN Airlines S.A. (LFL) All Stock N/A $21.46 $20.81 886,994 06/30/2012 3.10% 28.33%
+ CMFB 12/20/2011 Sandy Spring Bancorp Inc. (SASR) All Stock $25.4 million $14.13 $13.71 N/A 06/30/2012 3.07% 28.06%
+ ERT 04/10/2012 Genstar Capital LLC (N/A) All Cash $400 million $8.00 $7.79 582,031 09/30/2012 2.70% 7.45%
+ SUN 04/30/2012 Energy Transfer Partners, L.P. (ETP) Cash Plus Stock $5.3 billion $48.11 $46.87 1,586,996 12/31/2012 2.64% 4.31%
+ GPRO 04/30/2012 Hologic, Inc. (HOLX) All Cash $3.7 billion $82.75 $80.66 1,266,854 12/31/2012 2.59% 4.22%
+ GR 09/21/2011 United Technologies Corp. (UTX) All Cash $18.4 billion $127.50 $124.74 2,173,227 06/30/2012 2.21% 20.19%
+ OPXT 03/26/2012 Oclaro, Inc. (OCLR) All Stock $177 million $0.92 $0.90 460,736 06/30/2012 2.20% 20.07%
+ EP 10/16/2011 Kinder Morgan, Inc. (KMI) Cash Plus Stock $21 billion $29.22 $28.61 13,198,465 06/30/2012 2.12% 19.38%
+ SURW 02/06/2012 Consolidated Communications Holdings, Inc. (CNSL) All Cash $340.9 million $23.00 $22.53 76,662 06/30/2012 2.09% 19.04%
+ MMI 08/15/2011 Google (GOOG) All Cash $12.5 billion $40.00 $39.20 11,545,987 06/30/2012 2.04% 18.62%
+ KNOL 04/18/2012 WOW! Internet, Cable & Phone (N/A) All Cash $1.5 billion $19.75 $19.40 1,053,609 09/30/2012 1.80% 4.99%
+ RFMI 04/13/2012 Murata Manufacturing (N/A) All Cash $19.6 million $1.78 $1.75 2,400 09/30/2012 1.71% 4.74%
+ ALTH 04/05/2012 Spectrum Pharmaceuticals (SPPI) All Cash $206 million $1.82 $1.79 385,872 06/30/2012 1.68% 15.29%
+ SMSC 05/02/2012 Microchip Technology Inc. (MCHP) All Cash $939 million $37.00 $36.41 594,046 09/30/2012 1.62% 4.48%
+ EF 04/16/2012 Lee Equity Partners, LLC (N/A) All Cash $258 million $8.85 $8.71 491,716 09/30/2012 1.61% 4.44%
+ VIST 01/26/2012 Tompkins Financial Corporation (TMP) All Stock 86 million $11.37 $11.20 5,500 09/30/2012 1.52% 4.19%
+ CHSI 04/18/2012 SXC Health Solutions, Corp. (SXCI) Cash Plus Stock $4.4 billion $86.71 $85.50 623,642 12/31/2012 1.42% 2.31%
+ ESIC 05/01/2012 Open Text Corp. (OTEX) All Cash $232 million $7.25 $7.15 618,939 09/30/2012 1.40% 3.87%
+ PLXT 04/30/2012 Integrated Device Technology, Inc. (IDTI) Cash Plus Stock $330 million $6.31 $6.23 899,548 06/30/2012 1.35% 12.30%
+ PCBC 03/12/2012 UnionBanCal Corp. (N/A) All Cash $1.51 billion $46.00 $45.46 64,335 12/31/2012 1.19% 1.94%
+ ABVT 03/19/2012 Zayo Group (N/A) All Cash $2.2 billion $84.00 $83.05 353,213 06/30/2012 1.14% 10.44%
+ EBTX 03/06/2012 Cadence Bancorp (N/A) All Cash $250 million $20.62 $20.43 12,000 12/31/2012 0.93% 1.52%
+ FFFD 03/13/2012 Great Western Bancorporation, Inc. (N/A) All Cash $41.5 million $30.58 $30.30 200 08/31/2012 0.92% 3.31%
+ RDEA 04/23/2012 AstraZeneca (AZN) All Cash $1.26 billion $32.00 $31.73 335,426 09/30/2012 0.85% 2.35%
+ RVSN 03/15/2012 Avaya (N/A) All Cash $230 million $11.85 $11.76 66,750 06/15/2012 0.77% 11.17%
+ SOA 01/27/2012 Eastman Chemical Company (EMN) Cash Plus Stock $4.7 billion $27.31 $27.12 954,222 06/30/2012 0.70% 6.35%
+ GOLF 05/14/2012 Golf Town (N/A) All Cash $96.5 million $6.10 $6.06 20,838 09/30/2012 0.66% 1.83%
+ PFCB 05/01/2012 Centerbridge Partners LP (N/A) All Cash $1.09 billion $51.50 $51.17 955,574 09/30/2012 0.64% 1.78%
+ DRJ 04/16/2012 Fanatics (N/A) All Cash $183 million $3.45 $3.43 74,982 09/30/2012 0.58% 1.61%
+ COMV 03/26/2012 Peak Merger Corp (N/A) All Cash $49 million $1.75 $1.74 N/A 06/30/2012 0.57% 5.24%
+ CHRS 05/02/2012 Ascena Retail Group Inc. (ASNA) All Cash $890 million $7.35 $7.31 2,885,046 06/30/2012 0.55% 4.99%
+ GTSI 05/07/2012 an affiliate of UNICOM Systems (N/A) All Cash $76.67 million $7.75 $7.71 32,669 07/31/2012 0.52% 2.67%
+ CV 07/12/2011 Gaz metro Limited Partnership (N/A) All Cash $702 million $35.25 $35.07 49,632 06/30/2012 0.51% 4.68%
+ CRYP 02/02/2012 Amaya Gaming Group (N/A) All Cash $35.82 million $2.54 $2.53 1,565 05/31/2012 0.40% 14.43%
+ CPWM 05/09/2012 Bed Bath & Beyond Inc. (BBBY) All Cash $495 million $22.00 $21.92 716,554 05/31/2012 0.36% 13.32%
+ NVLS 12/14/2011 Lam Research Corp (LRCX) All Stock $3.3 billion $42.27 $42.12 876,185 06/30/2012 0.35% 3.17%
+ ISTA 03/26/2012 Bausch + Lomb (N/A) All Cash $500 million $9.10 $9.07 390,446 06/30/2012 0.33% 3.02%
+ KNSY 05/03/2012 Royal DSM (N/A) All Cash N/A $38.50 $38.39 156,565 06/30/2012 0.29% 2.61%
+ ADGF 03/19/2012 TaylorMade-adidas Golf business (N/A) All Cash $70 million $10.80 $10.78 35,514 06/30/2012 0.19% 1.69%
+ DDIC 04/04/2012 Viasystems Group Inc. (VIAS) All Cash $268 million $13.00 $12.98 184,924 07/31/2012 0.15% 0.79%
+ IPSU 05/01/2012 Louis Dreyfus Commodities LLC (N/A) All Cash $203 million $6.35 $6.38 300,946 06/30/2012 -0.47% -4.29%
+ CHG 02/21/2012 Fortis Inc. (N/A) All Cash $1.5 billion $65.00 $65.52 64,623 03/31/2013 -0.79% -0.92%
+ CSBC 05/14/2012 Park Sterling Corporation (PSTB) All Stock $77.8 million $6.08 $6.14 31,594 12/31/2012 -0.94% -1.53%
+ SRSL 04/17/2012 DTS, Inc. (DTSI) Cash Plus Stock $148 million $8.76 $9.08 79,556 09/30/2012 -3.50% -9.68%
+ BXG 11/14/2011 BFC Financial Corporation (BFCF.PK) All Stock N/A $4.80 $5.02 91,761 06/30/2012 -4.29% -39.12%
+ QSFT 03/09/2012 Insight Venture Partners (N/A) All Cash $2 billion $23.00 $24.50 642,843 09/30/2012 -6.12% -16.93%

Voluntary Disclosure: I have a long position in Motorola Mobility (MMI).




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