Merger Arbitrage Mondays – December 24, 2012

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December 24, 2012 | Merger Arbitrage | | Author Asif

Just as we were expecting a slow weekend ahead of the holidays, merger activity spiked sharply higher with thirteen new deals announced last week and eight 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 183
Total Number of Deals Not Completed in 2012 5
Total Number of Pending Deals
Cash Deals 48
Stock Deals 15
Stock & Cash Deals 8
Total Number of Pending Deals 71
Total Deal Size $558.7 billion

New Deals:

  1. The acquisition of Caribou Coffee Company (CBOU) by Joh. A. Benckiser Group for $340 million or $16.00 per share in cash.
  2. The acquisition of Clearwire Corporation (CLWR) by Sprint Nextel (S) for $2.97 per share in cash. The company will pay $2.2 billion to acquire the 50% stake it doesn’t already own.
  3. The acquisition of Arbitron (ARB) by Nielsen Holdings N.V. (NLSN) for $48.00 per share in cash.
  4. The acquisition of Alterra Capital Holdings (ALTE) by Markel (MKL) for $3.13 billion in a cash plus stock deal. Under the terms of the agreement, shareholders of Alterra will receive 0.04315 Markel common shares (with cash paid for fractional shares) plus a cash payment of $10.
  5. The acquisition of Knight Capital Group (KCG) by GETCO Holding Company for $1.4 billion. Under the agreement, existing Knight shareholders (other than GETCO) will have the right to elect to receive $3.75 per share in cash or one share of common stock of the new holding company. According to the press release, “The cash consideration will be subject to pro-ration if the holders elect to receive more than $720 million in cash in the aggregate. Jefferies & Company, Inc. and its affiliates, the largest shareholders in Knight, have agreed to limit their cash election to 50 percent of their Knight shares to the extent it is necessary to ensure that other Knight shareholders can receive their desired cash level up to the 720 million dollar aggregate amount.” We are treating this as an all-cash deal.
  6. The acquisition of Focus Media Holding (FMCN) by Giovanna Parent Limited for $3.7 billion or $27.50 per ADS (representing 5 common shares) in cash in a “going private” transaction.
  7. The acquisition of NYSE Euronext (NYX) by IntercontinentalExchange (ICE) for $8.2 billion. Under the terms of the agreement, NYX shareholders will have the option to elect to receive  (i) $33.12 in cash, (ii) 0.2581 ICE common shares or (iii) a mix of $11.27 in cash plus 0.1703 ICE common shares. The offer is subject to a maximum cash consideration of approximately $2.7 billion and a maximum aggregate number of ICE common shares of approximately 42.5 million. The overall mix of the $8.2 billion of merger consideration being paid by ICE is approximately 67% shares and 33% cash. We are treating this as an all stock deal.
  8. The acquisition of Roma Financial (ROMA) by Investors Bancorp (ISBC) for $113.5 million in an all stock deal. Under the terms of the agreement, each outstanding share of Roma Financial common stock, including the 74.5% of shares owned by mutual holding company Roma MHC, will be converted into 0.8653 shares of Investors Bancorp common stock upon completion of the merger.
  9. The acquisition of Eloqua (ELOQ) by Oracle Corporation (ORCL) for $871 million or $23.50 per share in cash less than 5 months after Eloqua’s IPO.
  10. The acquisition of Westway Group (WWAY) by EQT Infrastructure II for $419 million or $6.70 per share in cash.
  11. The acquisition of Ameristar Casinos (ASCA) by Pinnacle Entertainment (PNK) for $2.8 billion or $26.50 per share in cash.
  12. The acquisition of FirstCity Financial (FCFC) by Varde Partners for $225 million or $10.00 per share in cash.
  13. The acquisition of ShangPharma Corporation (SHP) by ShangPharma Holdings Limited for $173 million or $9.00 per ADS (representing 18 common shares) in cash in a “going private” transaction.

Deal Updates:

  1. On December 19, 2012, PLX Technology (PLXT) and Integrated Device Technology (IDTI) mutually terminated their merger agreement.

Closed Deals:

  1. The acquisition of GenOn Energy (GEN) by NRG Energy (NRG) on December 17, 2012.
  2. The acquisition of Schiff Nutrition International (SHF) by Reckitt Benckiser on December 17, 2012
  3. The acquisition of TPC Group (TPCG) by First Reserve Corporation and SK Capital Partners on December 20, 2012.
  4. The acquisition of OPNET Technologies (OPNT) by Riverbed Technology (RVBD) on December 20, 2012
  5. The acquisition of DUSA Pharmaceuticals (DUSA) by Sun Pharmaceutical Industries Limited on December 21, 2012.
  6. The acquisition of JDA Software Group (JDAS) by RedPrairie on December 21, 2012.
  7. The acquisition of Metropolitan Health Networks (MDF) by Humana (HUM) on December 21, 2012.
  8. The acquisition of Versant (VSNT) by Actian Corporation on December 21, 2012.

Top 10 deals with largest spreads:

Symbol Announced

Date

Acquiring

Company

Closing

Price

Last

Price

Closing

Date

Profit Annualized

Profit

ECBE 09/25/2012 Crescent Financial Bancshares, Inc. (CRFN) $16.22 $14.21 03/31/2013 14.17% 53.32%
SOMX 12/11/2012 Pernix Therapeutics Holdings, Inc. (PTX) $3.48 $3.07 06/30/2013 13.36% 25.93%
VRTA 05/31/2012 Vestin Realty Mortgage II, Inc. (VRTB) $1.28 $1.15 12/31/2012 11.23% 585.81%
ABVA 05/03/2012 Washington First Bankshares (WFBI) $5.21 $4.83 12/31/2012 7.89% 411.45%
FMCN 12/19/2012 Giovanna Parent Limited (N/A) $27.50 $25.59 06/30/2013 7.46% 14.49%
HOGS 11/26/2012 Chairman and CEO Xianfu Zhu (N/A) $13.50 $12.59 03/31/2013 7.23% 27.20%
OUTD 11/16/2012 InterMedia Outdoors Holdings, LLC (N/A) $8.00 $7.47 03/31/2013 7.10% 26.70%
WSB 09/10/2012 Old Line Bancshares, Inc. (OLBK) $6.21 $5.84 06/30/2013 6.30% 12.24%
KCG 12/19/2012 GETCO Holding Company (N/A) $3.75 $3.53 06/30/2013 6.23% 12.10%
SHP 12/21/2012 ShangPharma Holdings Limited (N/A) $9.00 $8.57 06/30/2013 5.02% 9.74%

List of all pending deals:

Symbol Announced

Date

Acquiring

Company

Deal

Type

Closing

Value

Closing

Price

Last

Price

Volume Closing

Date

Profit Annu.

Profit

+ ECBE 09/25/2012 Crescent Financial Bancshares, Inc. (CRFN) All Stock $51.6 million $16.22 $14.21 2,250 03/31/2013 14.17% 53.32%
+ SOMX 12/11/2012 Pernix Therapeutics Holdings, Inc. (PTX) All Cash $25 million $3.48 $3.07 66,713 06/30/2013 13.36% 25.93%
+ VRTA 05/31/2012 Vestin Realty Mortgage II, Inc. (VRTB) All Stock N/A $1.28 $1.15 N/A 12/31/2012 11.23% 585.81%
+ ABVA 05/03/2012 Washington First Bankshares (WFBI) All Stock $24.4 million $5.21 $4.83 9,038 12/31/2012 7.89% 411.45%
+ FMCN 12/19/2012 Giovanna Parent Limited (N/A) All Cash $3.7 billion $27.50 $25.59 2,576,055 06/30/2013 7.46% 14.49%
+ HOGS 11/26/2012 Chairman and CEO Xianfu Zhu (N/A) All Cash $418 million $13.50 $12.59 282,825 03/31/2013 7.23% 27.20%
+ OUTD 11/16/2012 InterMedia Outdoors Holdings, LLC (N/A) All Cash N/A $8.00 $7.47 75,240 03/31/2013 7.10% 26.70%
+ WSB 09/10/2012 Old Line Bancshares, Inc. (OLBK) All Stock $49 million $6.21 $5.84 3,910 06/30/2013 6.30% 12.24%
+ KCG 12/19/2012 GETCO Holding Company (N/A) All Cash $1.4 billion $3.75 $3.53 6,088,691 06/30/2013 6.23% 12.10%
+ SHP 12/21/2012 ShangPharma Holdings Limited (N/A) All Cash $173 million $9.00 $8.57 279,275 06/30/2013 5.02% 9.74%
+ CYMI 10/17/2012 ASML Holding NV (ASML) Cash Plus Stock $2.5 billion $92.97 $88.85 493,121 06/30/2013 4.64% 9.00%
+ GEOY 07/23/2012 DigitalGlobe, Inc. (DGI) Cash Plus Stock $900 million $31.68 $30.32 241,657 03/31/2013 4.50% 16.92%
+ BXG 11/14/2011 BFC Financial Corporation (BFCF) All Cash $150 million $10.00 $9.58 316,952 12/31/2012 4.38% 228.60%
+ PRWT 10/30/2012 AmericanWest Bank (N/A) All Cash $16.6 million $1.65 $1.59 14,281 06/30/2013 3.77% 7.33%
+ CFFC 08/02/2012 City Holding Company (CHCO) All Stock $26.1 million $6.12 $5.91 1,406 03/31/2013 3.58% 13.46%
+ RVR 11/15/2012 Parthenon Capital Partners (N/A) All Cash $79.5 million $21.93 $21.18 2,723 03/31/2013 3.54% 13.32%
+ ARB 12/18/2012 Nielsen Holdings N.V. (NLSN) All Cash N/A $48.00 $46.44 1,968,750 03/31/2013 3.36% 12.64%
+ CLWR 12/17/2012 Sprint Nextel Corp. (S) All Cash $2.2 billion $2.97 $2.875 14,708,570 03/31/2013 3.30% 12.43%
+ FCAL 11/06/2012 PacWest Bancorp (PACW) All Cash $231 million $8.00 $7.75 134,484 03/31/2013 3.23% 12.14%
+ JEF 11/12/2012 Leucadia National Corp. (LUK) All Stock $3.59 billion $19.31 $18.73 3,925,690 03/31/2013 3.10% 11.66%
+ FCFC 12/21/2012 Varde Partners Inc. (N/A) All Cash $225 million $10.00 $9.70 1,722,422 06/30/2013 3.09% 6.00%
+ NXY 07/23/2012 CNOOC Ltd. (CEO) All Cash $15.1 billion $27.50 $26.72 12,407,611 12/31/2012 2.92% 152.21%
+ HCBK 08/27/2012 M&T Bank Corporation (MTB) All Stock $3.7 billion $8.39 $8.16 9,122,603 03/31/2013 2.83% 10.66%
+ YMI 12/12/2012 Gilead Sciences Inc. (GILD) All Cash $510 million $2.95 $2.87 1,751,469 03/31/2013 2.79% 10.49%
+ ANNB 10/23/2012 F.N.B. Corporation (FNB) All Stock $51 million $12.37 $12.05 15,060 04/30/2013 2.63% 7.57%
+ ALNC 10/08/2012 NBT Bancorp Inc. (NBTB) All Stock $233.4 million $44.41 $43.27 58,910 06/30/2013 2.63% 5.10%
+ CRBC 09/13/2012 FirstMerit Corporation (FMER) All Stock $912 million $19.59 $19.13 949,824 06/30/2013 2.41% 4.68%
+ CYBI 10/17/2012 UM Holdings, Ltd. (N/A) All Cash N/A $2.55 $2.49 112,671 03/31/2013 2.41% 9.07%
+ 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 $9.28 588,307 12/31/2012 2.37% 123.61%
+ ALTE 12/19/2012 Markel Corp. (MKL) Cash Plus Stock $3.13 billion $28.60 $28.00 2,740,389 06/30/2013 2.13% 4.14%
+ ROMA 12/19/2012 Investors Bancorp Inc. (ISBC) All Stock $113.5 million $15.39 $15.10 250,766 06/30/2013 1.94% 3.78%
+ HLYS 12/10/2012 Sequential Brands Group, Inc. (N/A) All Cash $63.2 million $2.25 $2.21 138,434 03/31/2013 1.81% 6.81%
+ PSSI 10/25/2012 McKesson Corporation (MCK) All Cash $2.1 billion $29.00 $28.50 2,072,840 03/31/2013 1.75% 6.60%
+ PXP 12/05/2012 Freeport-McMoRan Copper & Gold Inc. (FCX) Cash Plus Stock $6.9 billion $46.93 $46.15 7,978,714 06/30/2013 1.69% 3.29%
+ KBW 11/05/2012 Stifel Financial Corp. (SF) All Cash $575 million $15.50 $15.25 633,481 03/31/2013 1.64% 6.17%
+ IN 12/10/2012 Honeywell International Inc. (HON) All Cash $600 million $10.00 $9.85 1,306,511 06/30/2013 1.52% 2.96%
+ CVH 08/20/2012 Aetna Inc. (AET) Cash Plus Stock $7.3 billion $45.42 $44.74 1,922,356 06/30/2013 1.51% 2.93%
+ RTLX 11/28/2012 NCR Corp. (NCR) All Cash $660 million $30.00 $29.65 29,896 03/31/2013 1.18% 4.44%
+ LMLP 09/24/2012 Digital River, Inc. (DRIV) All Cash $102.8 million $3.45 $3.41 202,723 03/31/2013 1.17% 4.41%
+ SEH 10/24/2012 PolyOne Corporation (POL) Cash Plus Stock $393 million $9.01 $8.91 392,840 03/31/2013 1.09% 4.10%
+ CASC 10/22/2012 Toyota Industries Corporation (N/A) All Cash $759 million $65.00 $64.30 589,522 12/31/2012 1.09% 56.77%
+ NYX 12/20/2012 IntercontinentalExchange, Inc. (ICE) All Stock $8.2 billion $32.59 $32.25 25,063,648 12/31/2013 1.04% 1.02%
+ GNOM 09/17/2012 BGI-Shenzhen (N/A) All Cash $117.6 million $3.15 $3.12 572,431 12/31/2012 0.96% 50.14%
+ BTFG 05/29/2012 Trustmark Corporation (TRMK) All Stock $55.4 million $2.82 $2.79 23,794 12/31/2012 0.94% 49.06%
+ TNS 12/11/2012 an Affiliate of Siris Capital Group (N/A) All Cash $862 million $21.00 $20.81 393,935 03/31/2013 0.91% 3.44%
+ EPHC 12/06/2012 TD Bank Group (N/A) All Cash $668 million $28.00 $27.76 403,742 06/30/2013 0.86% 1.68%
+ RBN 08/09/2012 National Oilwell Varco, Inc. (NOV) All Cash $2.5 billion $60.00 $59.50 663,979 12/31/2012 0.84% 43.82%
+ WRC 10/31/2012 PVH Corp. (PVH) Cash Plus Stock $2.9 billion $71.78 $71.20 882,087 03/31/2013 0.82% 3.08%
+ RAH 11/27/2012 ConAgra Foods, Inc. (CAG) All Cash $6.8 billion $90.00 $89.29 966,374 03/31/2013 0.80% 2.99%
+ SRZ 08/22/2012 Health Care REIT, Inc. (HCN) All Cash $845 million $14.50 $14.40 1,055,286 06/30/2013 0.69% 1.35%
+ SBX 08/28/2012 Enstar Group Limited (ESGR) All Cash $249 million $11.11 $11.04 421,063 03/31/2013 0.63% 2.39%
+ SHAW 07/30/2012 Chicago Bridge & Iron Company (CBI) Cash Plus Stock $3 billion $46.84 $46.55 3,564,977 03/31/2013 0.62% 2.33%
+ YTEC 08/13/2012 New Sihitech Limited (N/A) All Cash $79.5 million $3.90 $3.88 15,400 12/31/2012 0.52% 26.88%
+ ZZ 09/27/2012 Tempur-Pedic International Inc. (TPX) All Cash $1.3 billion $2.20 $2.19 1,117,024 06/30/2013 0.46% 0.89%
+ AGP 07/09/2012 WellPoint Inc. (WLP) All Cash $4.9 billion $92.00 $91.70 6,353,516 03/31/2013 0.33% 1.23%
+ YDNT 12/04/2012 affiliate of Linden Capital Partners (N/A) All Cash $314 million $39.50 $39.38 33,147 03/31/2013 0.30% 1.15%
+ PLFE 07/13/2012 Athene Annuity (N/A) All Cash $415 million $14.00 $13.97 328,042 12/31/2012 0.21% 11.20%
+ TIE 11/09/2012 Precision Castparts Corp. (PCP) All Cash $2.9 billion $16.50 $16.47 8,442,373 12/31/2012 0.18% 9.50%
+ WWAY 12/20/2012 EQT Infrastructure II (N/A) All Cash $419 million $6.70 $6.69 1,352,856 03/31/2013 0.15% 0.56%
+ ACOM 10/22/2012 Permira Advisers LLP (N/A) All Cash $1.6 billion $32.00 $32.00 944,719 03/31/2013 0.00% 0.00%
+ TEA 11/14/2012 Starbucks Corporation (SBUX) All Cash $620 million $15.50 $15.50 628,758 12/31/2012 0.00% 0.00%
+ ASCA 12/21/2012 Pinnacle Entertainment Inc. (PNK) All Cash $2.8 billion $26.50 $26.50 7,099,878 09/30/2013 0.00% 0.00%
+ KYAK 11/08/2012 priceline.com Incorporated (PCLN) All Cash $1.65 billion $40.00 $40.02 176,898 03/31/2013 -0.05% -0.19%
+ ELOQ 12/20/2012 Oracle Corporation (ORCL) All Cash $871 million $23.50 $23.55 979,048 06/30/2013 -0.21% -0.41%
+ CHG 02/21/2012 Fortis Inc. (N/A) All Cash $1.5 billion $65.00 $65.21 206,252 03/31/2013 -0.32% -1.21%
+ ARCT 09/06/2012 Realty Income Corp. (O) All Stock $2.95 billion $11.70 $11.74 3,256,418 03/31/2013 -0.34% -1.28%
+ CBOU 12/17/2012 Joh. A. Benckiser Group (N/A) All Cash $340 millon $16.00 $16.19 525,597 03/31/2013 -1.17% -4.42%
+ WCBO 09/26/2012 Columbia Banking System, Inc. (COLB) All Stock $506 million $21.87 $22.14 252,591 03/31/2013 -1.24% -4.65%
+ MMR 12/05/2012 Freeport-McMoRan Copper & Gold Inc. (FCX) All Cash 3.4 billion $14.75 $15.72 2,811,224 06/30/2013 -6.17% -11.98%
+ TARO 08/13/2012 Sun Pharmaceutical (N/A) All Cash $1.45 billion $39.50 $48.30 14,061 12/31/2012 -18.22% -950.01%
+ WAVE 08/02/2012 AT&T, Inc. (T) All Cash $600 million $1.00 $1.23 2,001 12/31/2012 -18.70% -975.03%

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




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