Merger Arbitrage Mondays – March 18, 2013

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March 18, 2013 | Merger Arbitrage | | Author Asif

Merger activity decreased last week with only one new deal announced and five closing. Based on feedback we received, we have now started including the number of days it took for a deal to close in the “Closed Deals” section. We appreciate all the emails and blog comments with suggestions or information about deals that we may have missed.

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 33
Total Number of Pending Deals
Cash Deals 48
Stock Deals 18
Stock & Cash Deals 4
Total Number of Pending Deals 70
Total Deal Size $185.24 billion

New Deals:

  1. The acquisition of MakeMusic (MMUS) by LaunchEquity Acquisition Partners for $4.85 per share in cash.

Deal Updates:

  1. On March 13, 2013, Outdoor Channel Holdings (OUTD) terminated its previously announced agreement to be acquired by InterMedia and entered into a merger agreement with Kroenke Sports & Entertainment for $8.75 in an all cash transaction.

Closed Deals:

  1. The acquisition of Online Resources (ORCC) by ACI Worldwide (ACIW) on March  11, 2013. It took 39 days for this deal to close.
  2. The acquisition of BioClinica (BIOC) by a holding company controlled by JLL Partners, Inc. on March 12, 2013. It took 41 days for this deal to close.
  3. The acquisition of Epocrates (EPOC) by Athenahealth (ATHN) on March 13, 2013. It took 65 days for this deal to close.
  4. The acquisition of Spartech (SEH) by PolyOne Corporation (POL) on March 13, 2013. It took 140 days for this deal to close.
  5. The acquisition of Zipcar (ZIP) by Avis Budget Group (CAR) on March 14, 2013. It took 71 days for this deal to close.

Top 10 deals with largest spreads:

Symbol Announced

Date

Acquiring

Company

Closing

Price

Last

Price

Closing

Date

Profit Annualized

Profit

ACFC 02/26/2013 Bond Street Holdings (N/A) $5.00 $4.38 06/30/2013 14.16% 49.68%
NYX 12/20/2012 IntercontinentalExchange, Inc. (ICE) $41.55 $38.08 12/31/2013 9.11% 11.55%
WCBO 09/26/2012 Columbia Banking System, Inc. (COLB) $25.98 $24.28 03/31/2013 7.01% 196.84%
WSB 09/10/2012 Old Line Bancshares, Inc. (OLBK) $6.85 $6.42 06/30/2013 6.66% 23.36%
BRY 02/21/2013 LinnCo, LLC (LNCO) $50.20 $47.38 06/30/2013 5.95% 20.89%
HOGS 11/26/2012 Chairman and CEO Xianfu Zhu (N/A) $13.50 $12.78 03/31/2013 5.63% 158.18%
FMCN 12/19/2012 Giovanna Parent Limited (N/A) $27.50 $26.10 06/30/2013 5.36% 18.83%
WH 02/21/2013 WSP OCTG GROUP Ltd. (N/A) $3.20 $3.06 06/30/2013 4.58% 16.06%
NFSB 03/05/2013 SI Financial Group Inc. (SIFI) $18.15 $17.37 09/30/2013 4.52% 8.41%
CPNO 01/29/2013 Kinder Morgan Energy Partners, L.P. (KMP) $39.50 $37.93 09/30/2013 4.13% 7.70%

List of all pending deals:

Symbol Announced

Date

Acquiring

Company

Deal

Type

Closing

Value

Closing

Price

Last

Price

Volume Closing

Date

Profit Annu.

Profit

+ ACFC 02/26/2013 Bond Street Holdings (N/A) All Cash N/A $5.00 $4.38 18,670 06/30/2013 14.16% 49.68%
+ NYX 12/20/2012 IntercontinentalExchange, Inc. (ICE) All Stock $8.2 billion $41.55 $38.08 1,792,091 12/31/2013 9.11% 11.55%
+ WCBO 09/26/2012 Columbia Banking System, Inc. (COLB) All Stock $506 million $25.98 $24.28 218,810 03/31/2013 7.01% 196.84%
+ WSB 09/10/2012 Old Line Bancshares, Inc. (OLBK) All Stock $49 million $6.85 $6.42 1,207 06/30/2013 6.66% 23.36%
+ BRY 02/21/2013 LinnCo, LLC (LNCO) All Stock $4.3 billion $50.20 $47.38 914,026 06/30/2013 5.95% 20.89%
+ HOGS 11/26/2012 Chairman and CEO Xianfu Zhu (N/A) All Cash $418 million $13.50 $12.78 936,456 03/31/2013 5.63% 158.18%
+ FMCN 12/19/2012 Giovanna Parent Limited (N/A) All Cash $3.7 billion $27.50 $26.10 1,195,179 06/30/2013 5.36% 18.83%
+ WH 02/21/2013 WSP OCTG GROUP Ltd. (N/A) All Cash $893.6 million $3.20 $3.06 19,577 06/30/2013 4.58% 16.06%
+ NFSB 03/05/2013 SI Financial Group Inc. (SIFI) All Stock $61.3 million $18.15 $17.37 9,608 09/30/2013 4.52% 8.41%
+ CPNO 01/29/2013 Kinder Morgan Energy Partners, L.P. (KMP) All Stock $5 billion $39.50 $37.93 1,209,120 09/30/2013 4.13% 7.70%
+ WMS 01/31/2013 Scientific Games Corporation (SGMS) All Cash 1.5 billion $26.00 $25.07 672,194 12/31/2013 3.71% 4.70%
+ ADY 03/04/2013 Diamond Infant Formula Holding Limited (N/A) All Cash $147 million $7.40 $7.14 123,965 06/30/2013 3.64% 12.78%
+ PVFC 02/19/2013 F.N.B. Corporation (FNB) All Stock $106.4 million $4.04 $3.90 292,808 09/30/2013 3.63% 6.77%
+ VCBI 01/30/2013 United Bankshares Inc. (UBSI) All Stock $490.6 million $14.62 $14.16 245,829 09/30/2013 3.23% 6.01%
+ SVN 02/28/2013 Keystone Lodging Holdings Limited (N/A) All Cash $688 million $13.80 $13.40 457,064 12/31/2013 2.99% 3.78%
+ SOMH 01/29/2013 Lakeland Bancorp Inc. (LBAI) All Stock $64.4 million $11.88 $11.55 98,102 09/30/2013 2.84% 5.29%
+ SSRX 02/08/2013 Decade Sunshine Limited (N/A) All Cash $340 million $15.40 $15.00 235,627 06/30/2013 2.67% 9.36%
+ CYMI 10/17/2012 ASML Holding NV (ASML) Cash Plus Stock $2.5 billion $101.46 $99.06 453,947 06/30/2013 2.42% 8.49%
+ ECBE 09/25/2012 Crescent Financial Bancshares, Inc. (CRFN) All Stock $51.6 million $15.23 $14.87 34,669 03/31/2013 2.42% 67.88%
+ FMFC 02/07/2013 Renasant Corp. (RNST) All Stock $118.8 million $14.55 $14.21 61,102 09/30/2013 2.37% 4.41%
+ ARB 12/18/2012 Nielsen Holdings N.V. (NLSN) All Cash N/A $48.00 $46.98 223,904 03/31/2013 2.17% 60.96%
+ PRWT 10/30/2012 AmericanWest Bank (N/A) All Cash $16.6 million $1.65 $1.62 2,831 06/30/2013 1.85% 6.50%
+ FCFC 12/21/2012 Varde Partners Inc. (N/A) All Cash $225 million $10.00 $9.83 13,053 06/30/2013 1.73% 6.07%
+ GDI 03/08/2013 Kohlberg Kravis Roberts & Co. L.P. (N/A) All Cash $3.9 billion $76.00 $74.85 1,571,483 09/30/2013 1.54% 2.86%
+ FFCH 02/20/2013 SCBT Financial Corporation (SCBT) All Stock $302.4 million $21.70 $21.38 118,670 09/30/2013 1.51% 2.80%
+ IN 12/10/2012 Honeywell International Inc. (HON) All Cash $600 million $10.00 $9.88 893,837 06/30/2013 1.21% 4.26%
+ ANNB 10/23/2012 F.N.B. Corporation (FNB) All Stock $51 million $13.57 $13.41 890 04/30/2013 1.17% 9.96%
+ ASCA 12/21/2012 Pinnacle Entertainment Inc. (PNK) All Cash $2.8 billion $26.50 $26.21 361,882 09/30/2013 1.11% 2.06%
+ ART 02/14/2013 Aberdeen Asset Management PLC (N/A) All Cash N/A $2.75 $2.72 681,583 08/15/2013 1.10% 2.68%
+ HOTT 03/07/2013 Sycamore Partners (N/A) All Cash $600 million $14.00 $13.85 2,392,036 06/30/2013 1.08% 3.80%
+ BXG 11/14/2011 BFC Financial Corporation (BFCF) All Cash $150 million $10.00 $9.90 78,242 03/31/2013 1.01% 28.36%
+ VRTA 05/31/2012 Vestin Realty Mortgage II, Inc. (VRTB) All Stock N/A $1.09 $1.08 2,753 03/31/2013 0.98% 27.56%
+ ALC 02/26/2013 TPG (N/A) All Cash $278 million $12.00 $11.89 217,028 06/30/2013 0.93% 3.25%
+ SHP 12/21/2012 ShangPharma Holdings Limited (N/A) All Cash $173 million $9.00 $8.92 437 06/30/2013 0.90% 3.15%
+ ROMA 12/19/2012 Investors Bancorp Inc. (ISBC) All Stock $113.5 million $15.71 $15.57 66,937 06/30/2013 0.87% 3.05%
+ PVSW 01/28/2013 an affiliate of Actian Corporation (N/A) All Cash $161.9 million $9.20 $9.13 33,200 06/30/2013 0.77% 2.69%
+ NTSP 02/19/2013 Total System Services, Inc. (TSS) All Cash $1.4 billion $16.00 $15.89 952,025 06/30/2013 0.69% 2.43%
+ ALTE 12/19/2012 Markel Corp. (MKL) Cash Plus Stock $3.13 billion $31.95 $31.74 1,100,693 06/30/2013 0.68% 2.37%
+ KSWS 01/17/2013 E. Land (N/A) All Cash $170 million $4.75 $4.72 243,924 06/30/2013 0.64% 2.23%
+ MMUS 03/13/2013 LaunchEquity Acquisition Partners (N/A) All Cash N/A $4.85 $4.82 4,459 06/30/2013 0.62% 2.18%
+ CASC 10/22/2012 Toyota Industries Corporation (N/A) All Cash $759 million $65.00 $64.64 160,539 02/28/2013 0.56% 0.00%
+ KCG 12/19/2012 GETCO Holding Company (N/A) All Cash $1.4 billion $3.75 $3.73 1,912,856 06/30/2013 0.54% 1.88%
+ NLP 12/27/2012 J.D. Nichols & Brian F. Lavin (N/A) All Cash N/A $7.50 $7.46 16,643 06/30/2013 0.54% 1.88%
+ ZZ 09/27/2012 Tempur-Pedic International Inc. (TPX) All Cash $1.3 billion $2.20 $2.19 1,493,155 03/18/2013 0.46% 0.00%
+ HCBK 08/27/2012 M&T Bank Corporation (MTB) All Stock $3.7 billion $8.77 $8.729 2,535,513 03/31/2013 0.45% 12.72%
+ CRBC 09/13/2012 FirstMerit Corporation (FMER) All Stock $912 million $22.41 $22.32 966,184 06/30/2013 0.42% 1.47%
+ 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 $15.49 732,317 06/30/2013 0.39% 1.36%
+ CVH 08/20/2012 Aetna Inc. (AET) Cash Plus Stock $7.3 billion $47.06 $46.90 1,048,531 06/30/2013 0.35% 1.22%
+ BOX 01/22/2013 Ontario Teachers’ Pension Plan (N/A) All Cash $467 million $23.00 $22.96 64,921 06/30/2013 0.17% 0.61%
+ SHS 03/01/2013 Danfoss (N/A) All Cash $629 milion $58.50 $58.41 301,089 06/30/2013 0.15% 0.54%
+ AACC 03/06/2013 Encore Capital Group, Inc. (ECPG) All Cash $200 million $6.50 $6.49 508,079 06/30/2013 0.15% 0.54%
+ OUTD 03/13/2013 Kroenke Sports & Entertainment LLC (N/A) All Cash $227 million $8.75 $8.74 83,757 06/30/2013 0.11% 0.40%
+ APKT 02/04/2013 Oracle Corporation (ORCL) All Cash $1.7 billion $29.25 $29.22 1,506,874 06/30/2013 0.10% 0.36%
+ MUSA 02/06/2013 Reliance Steel & Aluminum Co. (RS) All Cash $1.2 billion $20.65 $20.64 415,059 06/30/2013 0.05% 0.17%
+ GNOM 09/17/2012 BGI-Shenzhen (N/A) All Cash $117.6 million $3.15 $3.15 479,623 03/14/2013 0.00% 0.00%
+ EPHC 12/06/2012 TD Bank Group (N/A) All Cash $668 million $28.00 $28.00 52,216 06/30/2013 0.00% 0.00%
+ HNZ 02/14/2013 Berkshire Hathaway and 3G Capital (N/A) All Cash $28 billion $72.50 $72.50 3,549,580 09/30/2013 0.00% 0.00%
+ IPT 03/01/2013 Party City (N/A) All Cash $35 million $0.45 $0.45 150,916 06/30/2013 0.00% 0.00%
+ PXP 12/05/2012 Freeport-McMoRan Copper & Gold Inc. (FCX) Cash Plus Stock $6.9 billion $47.07 $47.11 1,776,931 06/30/2013 -0.07% -0.26%
+ ES 01/07/2013 a subsidiary of Energy Capital Partners II, LLC (N/A) All Cash $1.1 billion $3.75 $3.77 896,610 06/30/2013 -0.53% -1.86%
+ CHG 02/21/2012 Fortis Inc. (N/A) All Cash $1.5 billion $65.00 $65.50 81,999 06/30/2013 -0.76% -2.68%
+ KYAK 11/08/2012 priceline.com Incorporated (PCLN) All Cash $1.65 billion $40.00 $40.35 71,475 03/31/2013 -0.87% -24.35%
+ CXS 01/31/2013 Annaly Capital Management, Inc. (NLY) All Cash $1 billion $13.00 $13.28 1,767,699 04/30/2013 -2.11% -17.90%
+ FCAL 11/06/2012 PacWest Bancorp (PACW) All Cash $231 million $8.00 $8.37 111,460 03/31/2013 -4.42% -124.12%
+ DELL 02/05/2013 Michael Dell, Dell�s Founder, Chairman and Chief Executive Officer, in partnership with global technology investment firm Silver Lake (N/A) All Cash $24.4 billion $13.65 $14.31 39,139,248 07/31/2013 -4.61% -12.47%
+ SOMX 12/11/2012 Pernix Therapeutics Holdings, Inc. (PTX) All Cash $25 million $2.78 $3.00 N/A 06/30/2013 -7.33% -25.74%
+ CLWR 12/17/2012 Sprint Nextel Corp. (S) All Cash $2.2 billion $2.97 $3.21 2,074,572 03/31/2013 -7.48% -209.92%
+ OMX 02/20/2013 Office Depot, Inc. (ODP) All Stock $1.17 billion $10.79 $11.77 2,400,864 12/31/2013 -8.35% -10.59%
+ MMR 12/05/2012 Freeport-McMoRan Copper & Gold Inc. (FCX) All Cash 3.4 billion $14.75 $16.21 1,383,435 06/30/2013 -9.01% -31.61%
+ WAVE 08/02/2012 AT&T, Inc. (T) All Cash $600 million $1.00 $1.44 N/A 03/31/2013 -30.56% -857.91%



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Comments

  1. Dave
    March 18th, 2013

    Nice! We like the ‘days to close’ thanks for this. These seem pretty quick to me, I seem to remember 90 days being the average for most deals. Will be interesting to see going forward.

  2. Dave
    March 18th, 2013

    sorry that really should be “at least 90 days” and 39 days is darn fast by any measure!

  3. Asif
    March 18th, 2013

    You are welcome. I was also a little surprised when I looked at this data this week. Now we just need to tweak our database to automatically calculate this for us so that we don’t have to manually compute it every week.

  4. Inforesouce7
    April 1st, 2013

    Asif,

    Thank you for adding the days to close feature on your weekly updates. I believe I suggested a web tool a while back to help you calculate the days to close quickly by inputting the start and end dates. Here is the web site link again. If there are only a hand full of closings per week this should not be too manually intensive.

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

    ARB – I noticed that ARB has a closing date of 3-31-13 on your list. Both sides still have not received FTC approvals yet. After FTC approval both companies need to schedule shareholder votes. I dont have any dates but it may be a few months away before ARB closes. Here is the news link on the FTC process.

    http://rbr.com/ftc-wants-more-info-on-nielsen-arbitron-deal/

    Regards,

    inforesource7

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