Merger Arbitrage Mondays – December 17, 2012

Bookmark and Share

December 16, 2012 | Merger Arbitrage | | Author Asif

Merger activity increased last week with five new deals announced and four deals 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 174
Total Number of Deals Not Completed in 2012 4
Total Number of Pending Deals
Cash Deals 44
Stock Deals 14
Stock & Cash Deals 9
Special Conditions 1
Total Number of Pending Deals 68
Total Deal Size $535.46 billion

New Deals:

  1. The acquisition of Intermec (IN) by Honeywell (HON) for $600 million or $10.00 per share in cash.
  2. The acquisition of Heelys (HLYS) by Sequential Brands Group for $63.2 million or $2.25 per share in cash.
  3. The acquisition of TNS Inc. (TNS) by an affiliate of Siris Capital Group for $862 million or $21.00 per share in cash.
  4. The acquisition of Somaxon Pharmaceuticals (SOMX) by Pernix Therapeutics Holdings (PTX) for $25 million. Under the terms of the agreement, “Somaxon stockholders will receive aggregate consideration equal to $25 million in Pernix common stock. The number of shares of Pernix common stock to be issued to the stockholders of Somaxon will be based on the volume-weighted average price of Pernix’s common stock over the 30 day period ending on the day immediately prior to the closing of the proposed merger, subject to limitations on the maximum and minimum number of shares of Pernix common stock issuable in the transaction based on a price range of $6.00 to $9.00 per share.” Since the exact exchange ratio has not been provided and the value of the deal is for the most part fixed at $25 million, we are treating this as an all-cash deal worth $3.48 in cash as discussed in this Twitter post last week.
  5. The acquisition of YM BioSciences (YMI) by Gilead Scienced (GILD) for $510 million or $2.95 per share in cash.

Updated Deals:

  1. On December 13, 2012, BGI-Shenzhen announced that it has extended its all cash tender offer (the “Offer”) to purchase all outstanding shares of common stock of Complete Genomics (GNOM) to December 31, 2012.

Closed Deals:

  1. The acquisition of Medicis Pharmaceutical Corp. (MRX) by Valeant Pharmaceuticals International, Inc. (VRX) on December 11, 2012.
  2. The acquisition of Winner Medical Group Inc. (WWIN) by Winner Holding Limited on December 12, 2012.
  3. The acquisition of Physicians Formula Holdings (FACE) by Swander Pace Capital on December 12, 2012.
  4. The acquisition of The Savannah Bancorp (SAVB) by SCBT Financial Corporation (SCBT) on December 14, 2012.

Top 10 deals with largest spreads:

Symbol Announced

Date

Acquiring

Company

Closing

Price

Last

Price

Closing

Date

Profit Annualized

Profit

PLXT 04/30/2012 Integrated Device Technology, Inc. (IDTI) $7.07 $4.55 01/18/2013 55.38% 631.73%
SOMX 12/11/2012 Pernix Therapeutics Holdings, Inc. (PTX) $4.50 $3.02 06/30/2013 48.90% 91.54%
ECBE 09/25/2012 Crescent Financial Bancshares, Inc. (CRFN) $17.11 $14.05 03/31/2013 21.79% 76.46%
WSB 09/10/2012 Old Line Bancshares, Inc. (OLBK) $6.49 $5.91 06/30/2013 9.79% 18.32%
HOGS 11/26/2012 Chairman and CEO Xianfu Zhu (N/A) $13.50 $12.51 03/31/2013 7.91% 27.77%
OUTD 11/16/2012 InterMedia Outdoors Holdings, LLC (N/A) $8.00 $7.42 03/31/2013 7.82% 27.43%
BXG 11/14/2011 BFC Financial Corporation (BFCF) $10.00 $9.52 12/31/2012 5.04% 131.45%
CYMI 10/17/2012 ASML Holding NV (ASML) $93.20 $88.81 06/30/2013 4.94% 9.25%
JEF 11/12/2012 Leucadia National Corp. (LUK) $18.85 $18.10 03/31/2013 4.14% 14.52%
GEOY 07/23/2012 DigitalGlobe, Inc. (DGI) $33.46 $32.14 03/31/2013 4.10% 14.39%

List of all pending deals:

Symbol Announced

Date

Acquiring

Company

Deal

Type

Closing

Value

Closing

Price

Last

Price

Volume Closing

Date

Profit Annu.

Profit

+ PLXT 04/30/2012 Integrated Device Technology, Inc. (IDTI) Cash Plus Stock $330 million $7.07 $4.55 224,109 01/18/2013 55.38% 631.73%
+ SOMX 12/11/2012 Pernix Therapeutics Holdings, Inc. (PTX) Special Conditions $3.48 million $4.50 $3.02 334,333 06/30/2013 48.90% 91.54%
+ ECBE 09/25/2012 Crescent Financial Bancshares, Inc. (CRFN) All Stock $51.6 million $17.11 $14.05 846 03/31/2013 21.79% 76.46%
+ WSB 09/10/2012 Old Line Bancshares, Inc. (OLBK) All Stock $49 million $6.49 $5.91 10,300 06/30/2013 9.79% 18.32%
+ HOGS 11/26/2012 Chairman and CEO Xianfu Zhu (N/A) All Cash $418 million $13.50 $12.51 381,657 03/31/2013 7.91% 27.77%
+ OUTD 11/16/2012 InterMedia Outdoors Holdings, LLC (N/A) All Cash N/A $8.00 $7.42 83,526 03/31/2013 7.82% 27.43%
+ BXG 11/14/2011 BFC Financial Corporation (BFCF) All Cash $150 million $10.00 $9.52 141,859 12/31/2012 5.04% 131.45%
+ CYMI 10/17/2012 ASML Holding NV (ASML) Cash Plus Stock $2.5 billion $93.20 $88.81 761,904 06/30/2013 4.94% 9.25%
+ JEF 11/12/2012 Leucadia National Corp. (LUK) All Stock $3.59 billion $18.85 $18.10 940,674 03/31/2013 4.14% 14.52%
+ GEOY 07/23/2012 DigitalGlobe, Inc. (DGI) Cash Plus Stock $900 million $33.46 $32.14 75,329 03/31/2013 4.10% 14.39%
+ KBW 11/05/2012 Stifel Financial Corp. (SF) All Cash $575 million $15.50 $14.89 532,732 03/31/2013 4.10% 14.38%
+ CYBI 10/17/2012 UM Holdings, Ltd. (N/A) All Cash N/A $2.55 $2.46 156,640 03/31/2013 3.66% 12.84%
+ VRTA 05/31/2012 Vestin Realty Mortgage II, Inc. (VRTB) All Stock N/A $1.12 $1.09 5,195 12/31/2012 3.06% 79.89%
+ HCBK 08/27/2012 M&T Bank Corporation (MTB) All Stock $3.7 billion $8.23 $7.99 5,949,380 03/31/2013 2.97% 10.43%
+ RVR 11/15/2012 Parthenon Capital Partners (N/A) All Cash $79.5 million $21.93 $21.30 2,200 03/31/2013 2.96% 10.38%
+ CFFC 08/02/2012 City Holding Company (CHCO) All Stock $26.1 million $5.92 $5.75 2,100 03/31/2013 2.89% 10.15%
+ CRBC 09/13/2012 FirstMerit Corporation (FMER) All Stock $912 million $19.00 $18.50 112,988 06/30/2013 2.71% 5.08%
+ NXY 07/23/2012 CNOOC Ltd. (CEO) All Cash $15.1 billion $27.50 $26.78 10,574,224 12/31/2012 2.69% 70.09%
+ PRWT 10/30/2012 AmericanWest Bank (N/A) All Cash $16.6 million $1.65 $1.61 22,965 06/30/2013 2.48% 4.65%
+ FCAL 11/06/2012 PacWest Bancorp (PACW) All Cash $231 million $8.00 $7.81 30,929 03/31/2013 2.43% 8.54%
+ YMI 12/12/2012 Gilead Sciences Inc. (GILD) All Cash $510 million $2.95 $2.88 10,009,641 03/31/2013 2.43% 8.53%
+ ZZ 09/27/2012 Tempur-Pedic International Inc. (TPX) All Cash $1.3 billion $2.20 $2.15 626,402 06/30/2013 2.33% 4.35%
+ PXP 12/05/2012 Freeport-McMoRan Copper & Gold Inc. (FCX) Cash Plus Stock $6.9 billion $47.06 $46.08 4,291,403 06/30/2013 2.13% 3.99%
+ SHAW 07/30/2012 Chicago Bridge & Iron Company (CBI) Cash Plus Stock $3 billion $46.38 $45.42 1,449,189 03/31/2013 2.11% 7.41%
+ PSSI 10/25/2012 McKesson Corporation (MCK) All Cash $2.1 billion $29.00 $28.41 1,306,168 03/31/2013 2.08% 7.29%
+ ANNB 10/23/2012 F.N.B. Corporation (FNB) All Stock $51 million $12.01 $11.78 5,400 04/30/2013 1.98% 5.39%
+ BTFG 05/29/2012 Trustmark Corporation (TRMK) All Stock $55.4 million $2.77 $2.72 18,571 12/31/2012 1.93% 50.32%
+ IN 12/10/2012 Honeywell International Inc. (HON) All Cash $600 million $10.00 $9.85 813,021 06/30/2013 1.52% 2.85%
+ RTLX 11/28/2012 NCR Corp. (NCR) All Cash $660 million $30.00 $29.63 52,474 03/31/2013 1.25% 4.38%
+ CVH 08/20/2012 Aetna Inc. (AET) Cash Plus Stock $7.3 billion $45.00 $44.45 1,131,547 06/30/2013 1.25% 2.33%
+ SEH 10/24/2012 PolyOne Corporation (POL) Cash Plus Stock $393 million $9.00 $8.90 179,733 03/31/2013 1.10% 3.85%
+ TNS 12/11/2012 an Affiliate of Siris Capital Group (N/A) All Cash $862 million $21.00 $20.78 602,692 03/31/2013 1.06% 3.72%
+ YTEC 08/13/2012 New Sihitech Limited (N/A) All Cash $79.5 million $3.90 $3.86 23,810 12/31/2012 1.04% 27.02%
+ LMLP 09/24/2012 Digital River, Inc. (DRIV) All Cash $102.8 million $3.45 $3.415 197,499 03/31/2013 1.02% 3.60%
+ VSNT 10/01/2012 UNICOM Systems, Inc. (N/A) All Cash $37 million $13.00 $12.87 6,104 01/31/2013 1.01% 8.19%
+ ALNC 10/08/2012 NBT Bancorp Inc. (NBTB) All Stock $233.4 million $42.80 $42.38 5,037 06/30/2013 0.98% 1.84%
+ RBN 08/09/2012 National Oilwell Varco, Inc. (NOV) All Cash $2.5 billion $60.00 $59.45 249,099 12/31/2012 0.93% 24.12%
+ HLYS 12/10/2012 Sequential Brands Group, Inc. (N/A) All Cash $63.2 million $2.25 $2.23 194,241 03/31/2013 0.90% 3.15%
+ RAH 11/27/2012 ConAgra Foods, Inc. (CAG) All Cash $6.8 billion $90.00 $89.20 1,581,170 03/31/2013 0.90% 3.15%
+ WRC 10/31/2012 PVH Corp. (PVH) Cash Plus Stock $2.9 billion $71.49 $70.91 398,006 03/31/2013 0.82% 2.89%
+ SRZ 08/22/2012 Health Care REIT, Inc. (HCN) All Cash $845 million $14.50 $14.39 607,640 06/30/2013 0.76% 1.43%
+ KYAK 11/08/2012 priceline.com Incorporated (PCLN) All Cash $1.65 billion $40.00 $39.71 103,023 03/31/2013 0.73% 2.56%
+ TIE 11/09/2012 Precision Castparts Corp. (PCP) All Cash $2.9 billion $16.50 $16.39 3,544,064 12/31/2012 0.67% 17.50%
+ GNOM 09/17/2012 BGI-Shenzhen (N/A) All Cash $117.6 million $3.15 $3.13 113,559 12/31/2012 0.64% 16.66%
+ SBX 08/28/2012 Enstar Group Limited (ESGR) All Cash $249 million $11.11 $11.05 90,981 03/31/2013 0.54% 1.91%
+ EPHC 12/06/2012 TD Bank Group (N/A) All Cash $668 million $28.00 $27.85 224,810 06/30/2013 0.54% 1.01%
+ TEA 11/14/2012 Starbucks Corporation (SBUX) All Cash $620 million $15.50 $15.45 168,918 12/31/2012 0.32% 8.44%
+ PLFE 07/13/2012 Athene Annuity (N/A) All Cash $415 million $14.00 $13.96 121,141 12/31/2012 0.29% 7.47%
+ ACOM 10/22/2012 Permira Advisers LLP (N/A) All Cash $1.6 billion $32.00 $31.91 1,276,020 03/31/2013 0.28% 0.99%
+ MDF 11/05/2012 Humana Inc. (HUM) All Cash $850 million $11.25 $11.22 487,573 03/31/2013 0.27% 0.94%
+ FSIN 06/28/2012 Chairman and Co-Chief Executive Officer, Mr. Li Fu, and Abax Global Capital (Hong Kong) Limited (N/A) All Cash N/A $9.50 $9.48 282,621 12/31/2012 0.21% 5.50%
+ TPCG 08/27/2012 First Reserve Corporation and SK Capital Partners (N/A) All Cash $850 million $45.00 $44.93 89,258 12/31/2012 0.16% 4.06%
+ AGP 07/09/2012 WellPoint Inc. (WLP) All Cash $4.9 billion $92.00 $91.86 637,307 03/31/2013 0.15% 0.53%
+ OPNT 10/29/2012 Riverbed Technology, Inc. (RVBD) Cash Plus Stock $921 million $41.48 $41.42 207,118 12/31/2012 0.14% 3.56%
+ WMCO 11/01/2012 Curtiss-Wright Corp. (CW) All Cash $119 million $15.42 $15.40 6,150 03/31/2013 0.13% 0.46%
+ DUSA 11/08/2012 Sun Pharmaceutical Industries Limited (N/A) All Cash $230 million $8.00 $7.99 200,344 03/31/2013 0.13% 0.44%
+ JDAS 11/01/2012 RedPrairie (N/A) All Cash $1.9 billion $45.00 $44.95 1,567,092 12/31/2012 0.11% 2.90%
+ CASC 10/22/2012 Toyota Industries Corporation (N/A) All Cash $759 million $65.00 $64.95 40,728 12/31/2012 0.08% 2.01%
+ CHG 02/21/2012 Fortis Inc. (N/A) All Cash $1.5 billion $65.00 $64.99 41,000 03/31/2013 0.02% 0.05%
+ SHF 10/30/2012 Reckitt Benckiser LLC (N/A) All Cash $1.4 billion $42.00 $42.00 157,918 12/31/2012 0.00% 0.00%
+ YDNT 12/04/2012 affiliate of Linden Capital Partners (N/A) All Cash $314 million $39.50 $39.73 18,853 03/31/2013 -0.58% -2.03%
+ ARCT 09/06/2012 Realty Income Corp. (O) All Stock $2.95 billion $11.60 $11.73 1,740,053 03/31/2013 -1.11% -3.91%
+ GEN 07/23/2012 NRG Energy, Inc. (NRG) All Stock $1.7 billion $2.80 $2.87 69,593,288 03/31/2013 -2.55% -8.95%
+ WCBO 09/26/2012 Columbia Banking System, Inc. (COLB) All Stock $506 million $20.81 $21.62 24,922 03/31/2013 -3.73% -13.10%
+ MMR 12/05/2012 Freeport-McMoRan Copper & Gold Inc. (FCX) All Cash 3.4 billion $14.75 $15.52 5,775,718 06/30/2013 -4.96% -9.29%
+ ABVA 05/03/2012 Washington First Bankshares (WFBI) All Stock $24.4 million $4.46 $4.715 N/A 12/31/2012 -5.47% -142.56%
+ WAVE 08/02/2012 AT&T, Inc. (T) All Cash $600 million $1.00 $1.18 2,116 12/31/2012 -15.25% -397.70%
+ TARO 08/13/2012 Sun Pharmaceutical (N/A) All Cash $1.45 billion $39.50 $47.80 34,890 12/31/2012 -17.36% -452.70%

Voluntary Disclosure: I hold a long position in CYBI and a short position in $15 January TEA puts.




Subscribe to Free Newsletter


Share this Post

Post A Comment, Subscribe to SINLetter