Merger Arbitrage Mondays – February 4, 2013

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February 3, 2013 | Merger Arbitrage | | Author Asif

Merger activity increased last week with eight new deals announced and three 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 2013 9
Total Number of Pending Deals
Cash Deals 49
Stock Deals 15
Stock & Cash Deals 7
Total Number of Pending Deals 71
Total Deal Size $116.22 billion

New Deals:

  1. The acquisition of Pervasive Software (PVSW) by an affiliate of Actian Corporation for $161.9 million or $9.20 per share in cash.
  2. The acquisition of Somerset Hills Bancorp (SOMH) by Lakeland Bancorp (LBAI) for $64.4 million. Under the terms of the agreement, shareholders of Somerset Hills will receive either 1.1962 shares of Lakeland Bancorp common stock or $12.00 in cash, subject to proration as described in the Merger Agreement, so that 90% of the aggregate merger consideration will be shares of Lakeland Bancorp common stock and 10% will be cash. We are treating this as an all stock deal.
  3. The acquisition of Copano Energy (CPNO) by Kinder Morgan Energy Partners (KMP) for $5 billion. Under the terms of the agreement, unitholders of Copano Energy will receive 0.4563 KMP units per Copano unit.
  4. The acquisition of Virginia Commerce Bancorp (VCBI) by United Bankshares (UBSI) for $490.6 million. Under the terms of the agreement, shareholders of Virginia Commerce will receive 0.5442 of United’s shares for each share of VCBI.
  5. The acquisition of BioClinica (BIOC) by JLL Partners, Inc. for $123 million or $7.25 per share in cash.
  6. The acquisition of Crexus Investment (CXS) by Annaly Capital Management (NLY) for $1 billion or $13.00 per share in cash.
  7. The acquisition of WMS Industries (WMS) by Scientific Games Corporation (SGMS) for $1.5 billion or $26.00 per share in cash.
  8. The acquisition of Online Resources (ORCC) by ACI Worldwide (ACIW) for $263 million or $3.85 per share in cash.

Updated Deals:

  1. On January 28, 2013, CH Energy Group and (CHG) and Fortis filed a settlement agreement. The closing of the acquisition is now expected to take place during the second quarter of 2013.

Closed Deals:

  1. The acquisition of Ralcorp Holdings (RAH) by ConAgra Foods (CAG) on January 29, 2013.
  2. The acquisition of GeoEye (GEOY) by DigitalGlobe (DGI) on January 31, 2013.
  3. The acquisition of Young Innovations (YDNT) by an affiliate of Linden Capital Partners on January 21, 2013.

Top 10 deals with largest spreads:

Symbol Announced

Date

Acquiring

Company

Closing

Price

Last

Price

Closing

Date

Profit Annualized

Profit

SOMX 12/11/2012 Pernix Therapeutics Holdings, Inc. (PTX) $3.48 $3.00 06/30/2013 16.00% 40.00%
VRTA 05/31/2012 Vestin Realty Mortgage II, Inc. (VRTB) $1.26 $1.16 03/31/2013 8.86% 58.81%
FMCN 12/19/2012 Giovanna Parent Limited (N/A) $27.50 $25.50 06/30/2013 7.84% 19.61%
WSB 09/10/2012 Old Line Bancshares, Inc. (OLBK) $6.60 $6.16 06/30/2013 7.15% 17.88%
HOGS 11/26/2012 Chairman and CEO Xianfu Zhu (N/A) $13.50 $12.73 03/31/2013 6.05% 40.14%
OUTD 11/16/2012 InterMedia Outdoors Holdings, LLC (N/A) $8.00 $7.58 03/31/2013 5.54% 36.77%
VCBI 01/30/2013 United Bankshares Inc. (UBSI) $14.07 $13.35 09/30/2013 5.42% 8.31%
WMS 01/31/2013 Scientific Games Corporation (SGMS) $26.00 $24.69 12/31/2013 5.31% 5.87%
WCBO 09/26/2012 Columbia Banking System, Inc. (COLB) $25.08 $23.89 03/31/2013 4.96% 32.94%
CPNO 01/29/2013 Kinder Morgan Energy Partners, L.P. (KMP) $40.57 $38.70 09/30/2013 4.84% 7.43%

List of all pending deals:

Symbol Announced

Date

Acquiring

Company

Deal

Type

Closing

Value

Closing

Price

Last

Price

Volume Closing

Date

Profit Annu.

Profit

+ SOMX 12/11/2012 Pernix Therapeutics Holdings, Inc. (PTX) All Cash $25 million $3.48 $3.00 19,055 06/30/2013 16.00% 40.00%
+ VRTA 05/31/2012 Vestin Realty Mortgage II, Inc. (VRTB) All Stock N/A $1.26 $1.16 7,300 03/31/2013 8.86% 58.81%
+ FMCN 12/19/2012 Giovanna Parent Limited (N/A) All Cash $3.7 billion $27.50 $25.50 691,421 06/30/2013 7.84% 19.61%
+ WSB 09/10/2012 Old Line Bancshares, Inc. (OLBK) All Stock $49 million $6.60 $6.16 19,942 06/30/2013 7.15% 17.88%
+ HOGS 11/26/2012 Chairman and CEO Xianfu Zhu (N/A) All Cash $418 million $13.50 $12.73 79,559 03/31/2013 6.05% 40.14%
+ OUTD 11/16/2012 InterMedia Outdoors Holdings, LLC (N/A) All Cash N/A $8.00 $7.58 75,340 03/31/2013 5.54% 36.77%
+ VCBI 01/30/2013 United Bankshares Inc. (UBSI) All Stock $490.6 million $14.07 $13.35 221,121 09/30/2013 5.42% 8.31%
+ WMS 01/31/2013 Scientific Games Corporation (SGMS) All Cash 1.5 billion $26.00 $24.69 7,100,900 12/31/2013 5.31% 5.87%
+ WCBO 09/26/2012 Columbia Banking System, Inc. (COLB) All Stock $506 million $25.08 $23.89 55,174 03/31/2013 4.96% 32.94%
+ CPNO 01/29/2013 Kinder Morgan Energy Partners, L.P. (KMP) All Stock $5 billion $40.57 $38.70 956,014 09/30/2013 4.84% 7.43%
+ NYX 12/20/2012 IntercontinentalExchange, Inc. (ICE) All Stock $8.2 billion $36.36 $34.79 2,676,980 12/31/2013 4.52% 5.00%
+ CYMI 10/17/2012 ASML Holding NV (ASML) Cash Plus Stock $2.5 billion $109.96 $105.83 829,164 06/30/2013 3.90% 9.75%
+ RBN 08/09/2012 National Oilwell Varco, Inc. (NOV) All Cash $2.5 billion $60.00 $57.75 2,078,843 02/18/2013 3.90% 101.58%
+ PRWT 10/30/2012 AmericanWest Bank (N/A) All Cash $16.6 million $1.65 $1.59 12,041 06/30/2013 3.77% 9.43%
+ BXG 11/14/2011 BFC Financial Corporation (BFCF) All Cash $150 million $10.00 $9.65 34,697 03/31/2013 3.63% 24.07%
+ NLP 12/27/2012 J.D. Nichols & Brian F. Lavin (N/A) All Cash N/A $7.50 $7.25 2,422 06/30/2013 3.45% 8.62%
+ SHP 12/21/2012 ShangPharma Holdings Limited (N/A) All Cash $173 million $9.00 $8.71 23,209 06/30/2013 3.33% 8.32%
+ NXY 07/23/2012 CNOOC Ltd. (CEO) All Cash $15.1 billion $27.50 $26.68 5,190,814 03/02/2013 3.07% 43.15%
+ JEF 11/12/2012 Leucadia National Corp. (LUK) All Stock $3.59 billion $20.49 $19.95 3,027,833 03/31/2013 2.72% 18.06%
+ SOMH 01/29/2013 Lakeland Bancorp Inc. (LBAI) All Stock $64.4 million $11.72 $11.44 85,456 09/30/2013 2.47% 3.79%
+ ECBE 09/25/2012 Crescent Financial Bancshares, Inc. (CRFN) All Stock $51.6 million $15.30 $14.94 3,300 03/31/2013 2.41% 16.01%
+ RVR 11/15/2012 Parthenon Capital Partners (N/A) All Cash $79.5 million $21.93 $21.45 3,341 03/31/2013 2.24% 14.85%
+ ARB 12/18/2012 Nielsen Holdings N.V. (NLSN) All Cash N/A $48.00 $47.00 330,785 03/31/2013 2.13% 14.12%
+ BCDS 12/26/2012 Diodes Incorporated (DIOD) All Cash $151 million $8.00 $7.84 56,495 03/31/2013 2.04% 13.54%
+ CRBC 09/13/2012 FirstMerit Corporation (FMER) All Stock $912 million $20.96 $20.55 403,163 06/30/2013 2.00% 5.00%
+ FCFC 12/21/2012 Varde Partners Inc. (N/A) All Cash $225 million $10.00 $9.83 18,493 06/30/2013 1.73% 4.32%
+ ANNB 10/23/2012 F.N.B. Corporation (FNB) All Stock $51 million $13.51 $13.30 24,500 04/30/2013 1.58% 6.79%
+ ALNC 10/08/2012 NBT Bancorp Inc. (NBTB) All Stock $233.4 million $45.63 $45.07 4,926 06/30/2013 1.24% 3.09%
+ IN 12/10/2012 Honeywell International Inc. (HON) All Cash $600 million $10.00 $9.89 7,119,233 06/30/2013 1.11% 2.78%
+ GNOM 09/17/2012 BGI-Shenzhen (N/A) All Cash $117.6 million $3.15 $3.12 143,223 01/25/2013 0.96% 0.00%
+ KSWS 01/17/2013 E. Land (N/A) All Cash $170 million $4.75 $4.705 378,827 06/30/2013 0.96% 2.39%
+ ZZ 09/27/2012 Tempur-Pedic International Inc. (TPX) All Cash $1.3 billion $2.20 $2.18 337,830 06/30/2013 0.92% 2.29%
+ ROMA 12/19/2012 Investors Bancorp Inc. (ISBC) All Stock $113.5 million $15.50 $15.37 13,423 06/30/2013 0.83% 2.07%
+ KCG 12/19/2012 GETCO Holding Company (N/A) All Cash $1.4 billion $3.75 $3.72 1,401,839 06/30/2013 0.81% 2.02%
+ CYBI 10/17/2012 UM Holdings, Ltd. (N/A) All Cash N/A $2.55 $2.53 7,747 03/31/2013 0.79% 5.25%
+ ORCC 01/31/2013 ACI Worldwide, Inc. (ACIW) All Cash $263 million $3.85 $3.82 864,146 03/31/2013 0.79% 5.21%
+ BTFG 05/29/2012 Trustmark Corporation (TRMK) All Stock $55.4 million $2.93 $2.91 4,356 02/28/2013 0.77% 11.76%
+ MAPP 01/22/2013 Allergan Inc. (AGN) All Cash $958 million $25.00 $24.83 914,262 06/30/2013 0.68% 1.71%
+ YMI 12/12/2012 Gilead Sciences Inc. (GILD) All Cash $510 million $2.95 $2.93 270,792 03/31/2013 0.68% 4.53%
+ CASC 10/22/2012 Toyota Industries Corporation (N/A) All Cash $759 million $65.00 $64.59 40,402 02/28/2013 0.63% 9.65%
+ HCBK 08/27/2012 M&T Bank Corporation (MTB) All Stock $3.7 billion $8.73 $8.68 3,725,657 03/31/2013 0.60% 4.01%
+ PVSW 01/28/2013 an affiliate of Actian Corporation (N/A) All Cash $161.9 million $9.20 $9.15 44,646 06/30/2013 0.55% 1.37%
+ EPOC 01/07/2013 athenahealth, Inc. (ATHN) All Cash $293 million $11.75 $11.69 168,992 04/30/2013 0.51% 2.20%
+ SHAW 07/30/2012 Chicago Bridge & Iron Company (CBI) Cash Plus Stock $3 billion $47.60 $47.36 656,716 03/31/2013 0.51% 3.40%
+ RTLX 11/28/2012 NCR Corp. (NCR) All Cash $660 million $30.00 $29.86 6,774 03/31/2013 0.47% 3.11%
+ ASCA 12/21/2012 Pinnacle Entertainment Inc. (PNK) All Cash $2.8 billion $26.50 $26.38 896,801 09/30/2013 0.45% 0.70%
+ PXP 12/05/2012 Freeport-McMoRan Copper & Gold Inc. (FCX) Cash Plus Stock $6.9 billion $48.34 $48.12 1,098,329 06/30/2013 0.45% 1.12%
+ CVH 08/20/2012 Aetna Inc. (AET) Cash Plus Stock $7.3 billion $46.13 $45.95 974,284 06/30/2013 0.40% 1.00%
+ ALTE 12/19/2012 Markel Corp. (MKL) Cash Plus Stock $3.13 billion $30.64 $30.53 693,444 06/30/2013 0.36% 0.90%
+ TNS 12/11/2012 an Affiliate of Siris Capital Group (N/A) All Cash $862 million $21.00 $20.94 267,135 03/31/2013 0.29% 1.90%
+ SBX 08/28/2012 Enstar Group Limited (ESGR) All Cash $249 million $11.11 $11.08 114,680 03/31/2013 0.27% 1.80%
+ WRC 10/31/2012 PVH Corp. (PVH) Cash Plus Stock $2.9 billion $72.93 $72.74 360,610 03/31/2013 0.26% 1.76%
+ PSSI 10/25/2012 McKesson Corporation (MCK) All Cash $2.1 billion $29.00 $28.93 738,106 03/31/2013 0.24% 1.61%
+ SEH 10/24/2012 PolyOne Corporation (POL) Cash Plus Stock $393 million $9.84 $9.83 103,285 03/31/2013 0.13% 0.89%
+ ZIP 01/02/2013 Avis Budget Group, Inc. (CAR) All Cash $500 million $12.25 $12.24 538,030 04/30/2013 0.08% 0.35%
+ ELOQ 12/20/2012 Oracle Corporation (ORCL) All Cash $871 million $23.50 $23.49 128,118 06/30/2013 0.04% 0.11%
+ CHG 02/21/2012 Fortis Inc. (N/A) All Cash $1.5 billion $65.00 $65.00 78,360 06/30/2013 0.00% 0.00%
+ EPHC 12/06/2012 TD Bank Group (N/A) All Cash $668 million $28.00 $28.00 64,479 06/30/2013 0.00% 0.00%
+ BOX 01/22/2013 Ontario Teachers’ Pension Plan (N/A) All Cash $467 million $23.00 $23.00 63,334 06/30/2013 0.00% 0.00%
+ BIOC 01/30/2013 a holding company controlled by JLL Partners, Inc. (N/A) All Cash $123 million $7.25 $7.26 150,538 03/31/2013 -0.14% -0.91%
+ KYAK 11/08/2012 priceline.com Incorporated (PCLN) All Cash $1.65 billion $40.00 $40.30 63,257 03/31/2013 -0.74% -4.94%
+ FCAL 11/06/2012 PacWest Bancorp (PACW) All Cash $231 million $8.00 $8.08 235,819 03/31/2013 -0.99% -6.57%
+ WWAY 12/20/2012 EQT Infrastructure II (N/A) All Cash $419 million $6.70 $6.80 N/A 03/31/2013 -1.47% -9.76%
+ DUF 12/30/2012 a consortium comprising controlled affiliates of or funds managed by The Carlyle Group, Stone Point Capital LLC, Pictet & Cie and Edmond de Rothschild Group (N/A) All Cash $665.5 million $15.55 $15.83 230,189 06/30/2013 -1.77% -4.42%
+ CXS 01/31/2013 Annaly Capital Management, Inc. (NLY) All Cash $1 billion $13.00 $13.30 3,967,546 04/30/2013 -2.26% -9.69%
+ ES 01/07/2013 a subsidiary of Energy Capital Partners II, LLC (N/A) All Cash $1.1 billion $3.75 $3.86 654,755 06/30/2013 -2.85% -7.12%
+ KBW 11/05/2012 Stifel Financial Corp. (SF) All Cash $575 million $15.50 $16.13 132,903 03/31/2013 -3.91% -25.92%
+ CLWR 12/17/2012 Sprint Nextel Corp. (S) All Cash $2.2 billion $2.97 $3.19 8,266,336 03/31/2013 -6.90% -45.77%
+ MMR 12/05/2012 Freeport-McMoRan Copper & Gold Inc. (FCX) All Cash 3.4 billion $14.75 $16.05 4,783,613 06/30/2013 -8.10% -20.25%
+ TARO 08/13/2012 Sun Pharmaceutical (N/A) All Cash $1.45 billion $39.50 $48.76 8,395 03/31/2013 -18.99% -126.03%
+ WAVE 08/02/2012 AT&T, Inc. (T) All Cash $600 million $1.00 $1.44 N/A 03/31/2013 -30.56% -202.78%

Voluntary Disclosure: I hold a long position in CYBI.




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Comments

  1. Inforesouce7
    March 9th, 2013

    Asif,

    You do a real nice job summarizing the Merger Arbitrage deal stats, new, updated and closed deals. On the Closed deals would it be possible for you to include the total number of days it actually took to close? In other wards from the announcement date to closing date, how many days total. This would be very helpful historical data to include for all followers who are attempting to plan their arbitrage plays.

    Regards,

    inforesource7

  2. Asif
    March 9th, 2013

    Thank you inforesource7. That is an interesting idea and we will look into including that information in the posts going forward.

  3. Inforesouce7
    March 11th, 2013

    Asif,

    Good. I am glad you like the idea. I have located a web tool, Number of Days Between, which will help you determine the exact days if you plug in the announce and closing dates.

    http://www.convertunits.com/dates/from/Mar+11,+2013/to/Jul+31,+2013

    Regards,

    inforesource7

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