Market Overview

Merger Arbitrage Mondays – June 27, 2011

Merger activity decreased last week with two new deals announced and five 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 2011 104
Total Number of Deals Not Completed in 2011 1
Total Number of Pending Deals
Cash Deals 41
Stock Deals 23
Stock & Cash Deals 11
Special Conditions 1
Total Number of Pending Deals 76

New Deals:

  1. The acquisition of Tower Bancorp (TOBC) by Susquehanna Bancshares (SUSQ) for $343 million in a stock or cash deal, where Tower Bancorp shareholders will receive either 3.4696 shares of Susquehanna Bancshares common stock or $28.00 in cash per share held with $88 million of the aggregate consideration being paid in cash. Since a majority of the consideration will be paid out as stock, we have classified this deal as an all stock deal in our Merger Arbitrage Tool.
  2. The acquisition of Harbin Electric (HRBN) by Tech Full Electric Company Limited for $24.00 per share in cash.


Updated Deals:

  1. On June 23, 2011, Southern Union Company (SUG) received a proposal by The Williams Companies, Inc. (WMB) to acquire all of the outstanding shares of Southern Union for $39.00 per share in cash. The board is considering this offer, which is significantly higher than the $33 per share all stock offer by Energy Transfer Equity. With the stock trading at $39.85, investors are clearly expecting a bidding war between the two suitors.


Closed Deals:

  1. The acquisition of GSI Commerce (GSIC) by eBay (EBAY) on June 20, 2011
  2. The acquisition of American Medical Systems Holdings (AMMD) by Endo Pharmaceuticals (ENDP) on June 20, 2011
  3. The acquisition of CKX Inc. (CKXE) by affiliates of Apollo Global Management on June 22, 2011
  4. The acquisition of Volcom (VLCM) by PPR S.A. on June 24, 2011
  5. The acquisition of Wesco Financial Corporation (WSC) by Berkshire Hathaway on June 24, 2011


Top 10 deals with largest spreads:

Symbol Announced
Date
Acquiring

Company

Closing

Price

Last
Price
Closing
Date
Profit Annu.
Profit
HRBN 06/20/2011 Tech Full Electric Company Limited (N/A) $24.00 $14.95 12/31/2011 60.54% 118.16%
GRAN 04/27/2011 FNB United Corp (FNBN) $1.38 $0.90 09/30/2011 53.75% 206.51%
CSR 04/20/2011 Rightmark Holdings Limited (N/A) $6.50 $4.89 09/30/2011 32.92% 126.50%
TAM 01/19/2011 LAN Airlines S.A. (LFL) $24.63 $20.86 12/31/2011

18.09%

35.30%
CFSG 05/20/2011 Bain Capital Partners (N/A) $9.00 $7.82 11/15/2011 15.09% 39.06%
DNBK 01/20/2011 People's United Financial Inc. (PBCT) $23.00 $21.23 06/30/2011 8.34% 1014.37%
ZRAN 02/21/2011 CSR PLC (CSR.L) $9.19 $8.49 06/30/2011 8.19% 995.98%
FTLK 05/31/2011 Fortress Group Limited (N/A) $7.20 $6.70 09/30/2011 7.46% 28.67%
CRU 05/05/2011 Capital Product Partners L.P. (CPLP) $13.49 $12.77 09/30/2011 5.67% 21.78%
CEG 04/28/2011 Exelon Corporation (EXC) $39.08 $37.14 01/31/2012 5.22% 8.74%

List of all pending deals:

  Symbol Announced
Date
Acquiring
Company
Deal
Type
Closing
Value
Closing
Price
Last
Price
Volume Closing

Date

Profit Annu.
Profit
+ HRBN 06/20/2011 Tech Full Electric Company Limited (N/A) All Cash N/A $24.00 $14.95 2,297,259 12/31/2011 60.54% 118.16%
+ GRAN 04/27/2011 FNB United Corp (FNBN) All Stock N/A $1.38 $0.90 33,221 09/30/2011 53.75% 206.51%
+ CSR 04/20/2011 Rightmark Holdings Limited (N/A) All Cash $583.2 million $6.50 $4.89 916,622 09/30/2011 32.92% 126.50%
+ TAM 01/19/2011 LAN Airlines S.A. (LFL) All Stock N/A $24.63 $20.86 398,791 12/31/2011 18.09% 35.30%
+ CFSG 05/20/2011 Bain Capital Partners (N/A) All Cash $265.5 million $9.00 $7.82 66,866 11/15/2011 15.09% 39.06%
+ DNBK 01/20/2011 People's United Financial Inc. (PBCT) All Cash $493 million $23.00 $21.23 79,469 06/30/2011 8.34% 1014.37%
+ ZRAN 02/21/2011 CSR PLC (CSR.L) Cash Plus Stock $484 million $9.19 $8.49 1,027,042 06/30/2011 8.19% 995.98%
+ FTLK 05/31/2011 Fortress Group Limited (N/A) All Cash $443 million $7.20 $6.70 74,732 09/30/2011 7.46% 28.67%
+ CRU 05/05/2011 Capital Product Partners L.P. (CPLP) All Stock $281.3 million $13.49 $12.77 12,503 09/30/2011 5.67% 21.78%
+ CEG 04/28/2011 Exelon Corporation (EXC) All Stock $7.9 billion $39.08 $37.14 2,626,592 01/31/2012 5.22% 8.74%
+ SVVS 04/27/2011 CenturyLink (CTL) Cash Plus Stock $2.5 billion $41.38 $39.54 851,738 12/31/2011 4.64% 9.06%
+ PVSA 06/15/2011 F.N.B. Corporation (FNB) All Stock $130 million $22.00 $21.22 25,829 12/31/2011 3.67% 7.15%
+ LAB 02/17/2011 Cowen Group (COWN) All Stock $192.8 million $3.79 $3.66 932,437 07/31/2011 3.62% 38.83%
+ HYC 11/17/2010 Verifone Systems (PAY) All Stock $485 million $9.49 $9.16 1,075,665 09/30/2011

3.55%

13.64%
+ VSEA 05/04/2011 Applied Materials Inc. (AMAT) All Cash $4.9 billion $63.00 $61.34 2,848,878 09/30/2011 2.71% 10.40%
+ PGN 01/10/2011 Duke Energy Corporation (DUK) All Stock $13.7 billion $48.36 $47.18 1,314,777 12/31/2011 2.50% 4.87%
+ STBC 04/28/2011 Valley National Bancorp (VLY) All Stock $222 million $13.24 $12.96 191,165 10/31/2011 2.16% 6.26%
+ ID 09/20/2010 Safran (N/A) All Cash $1.1 billion $12.00 $11.75 1,611,010 07/31/2011 2.13% 22.84%
+ CEPH 05/02/2011 Teva Pharmaceutical Industries Ltd. (TEVA) All Cash $6.8 billion $81.50 $79.89 1,181,202 09/30/2011 2.02% 7.74%
+ NSTC 06/10/2011 affiliate of Citi Venture Capital International (CVCI) (N/A) All Cash $307 million $7.75 $7.61 5,328,212 10/31/2011 1.84% 5.33%
+ SHMR 10/15/2010 Essilor (N/A) All Cash $130 million $14.50 $14.24 7,400 06/30/2011 1.83% 222.14%
+ ORCH 04/06/2011 Laboratory Corporation of America Holdings (LH) All Cash $85.4 million $2.80 $2.75 9,346 06/30/2011

1.82%

221.21%
+ GLBC 04/11/2011 Level 3 Communications (LVLT) All Stock $3.00 billion $36.32 $35.695 292,451 12/31/2011 1.75% 3.42%
+ NLCI 05/18/2011 Leeds Equity Partners (N/A) All Cash $149 million $11.75 $11.56 11,233 11/30/2011 1.64% 3.85%
+ CASB 03/04/2011 Opus Bank (N/A) All Cash N/A $0.45 $0.4431 8,700 06/30/2011 1.56% 189.46%
+ NSM 04/05/2011 Texas Instruments Incorporated (TXN) All Cash $6.5 billion $25.00 $24.64 4,029,486 01/31/2012 1.46% 2.45%
+ PNNW 11/12/2010 City of Nashua (N/A) All Cash $138 million $29.00 $28.64 474,712 09/30/2011 1.26% 4.83%
+ ABBC 01/26/2011 Susquehanna Bancshares, Inc. (SUSQ) All Stock $273 million $10.10 $9.98 191,821 09/30/2011 1.18% 4.54%
+ TGE 03/21/2011 Dawson Geophysical Company (DWSN) All Stock $157 million $5.89 $5.83 53,590 08/15/2011 1.09% 8.15%
+ GSLA 03/30/2011 Home Bancorp (HBCP) All Cash $26.2 million $21.00 $20.80 1,800 09/30/2011 0.96% 3.69%
+ FPIC 05/24/2011 The Doctors Company (N/A) All Cash $362 million $42.00 $41.60 127,726 12/31/2011 0.96% 1.88%
+ LOOP 04/27/2011 CoStar Group (CSGP) Cash Plus Stock $860 million $18.57 $18.43 358,334 12/31/2011 0.75% 1.46%
+ KNDL 05/04/2011 INC Research (N/A) All Cash $232 million $15.25 $15.14 155,802 09/30/2011 0.73% 2.79%
+ LEGC 12/21/2010 Berkshire Hills Bancorp (BHLB) Cash Plus Stock $108 million $13.55 $13.45 10,263 06/30/2011 0.72% 87.58%
+ DEP 02/23/2011 Enterprise Products Partners (EPD) All Stock N/A $41.98 $41.70 52,922 09/30/2011 0.66% 2.54%
+ SMOD 04/26/2011 Silver Lake Partners and Silver Lake Sumeru (N/A) All Cash $645 million $9.25 $9.19 2,691,567 09/30/2011 0.65% 2.51%
+ TRH 06/12/2011 Allied World Assurance Company Holdings (AWH) All Stock $3.2 billion $48.14 $47.84 545,848 12/31/2011 0.62% 1.21%
+ GRM 06/17/2011 Reynolds Group Holdings (N/A) All Cash $4.5 billion $25.50 $25.35 1,318,285 12/31/2011 0.59% 1.15%
+ LZ 03/14/2011 Berkshire Hathaway (N/A) All Cash $9.7 billion $135.00 $134.21 1,149,297 09/30/2011

0.59%

2.26%
+ OXPS 03/21/2011 Charles Schwab Corp. (SCHW) All Stock $1 billion $16.10 $16.01 322,150 09/30/2011 0.53% 2.05%
+ VITA 05/16/2011 Stryker Corp. (SYK) All Cash $316 million $3.85 $3.83 779,907 06/30/2011 0.52% 63.53%
+ NST 10/18/2010 Northeast Utilities (NU) All Stock $4.17 billion $45.45 $45.25 355,338 09/30/2011 0.44% 1.68%
+ BUCY 11/15/2010 Caterpillar Inc (CAT) All Cash $8.6 billion $92.00 $91.64 987,891 06/30/2011 0.39% 47.80%
+ SRX 04/01/2011 affiliate of Providence Equity Partners (N/A) All Cash $1.88 billion $31.25 $31.13 719,349 09/30/2011 0.39% 1.48%
+ MDMD 06/16/2011 DG FastChannel (DGIT) All Cash $517 million $22.00 $21.92 790,709 09/30/2011

0.36%

1.40%
+ LWSN 04/26/2011 Affiliate of Golden Gate Capital and Infor (N/A) All Cash $2 billion $11.25 $11.21 4,599,788 09/30/2011 0.36% 1.37%
+ GAS 12/07/2010 AGL Resources Inc. (AGL) Cash Plus Stock $2.4 billion $54.44 $54.25 290,202 09/30/2011 0.36% 1.37%
+ ELMG 06/13/2011 Honeywell International (HON) All Cash $491 million $33.00 $32.89 220,093 09/30/2011 0.33% 1.28%
+ FTO 02/22/2011 Holly Corporation (HOC) All Stock $3 billion $28.77 $28.68 5,414,614 09/30/2011 0.33% 1.27%
+ MI 12/17/2010 BMO Financial Group (BMO) All Stock $4.1 billion $7.59 $7.57 13,507,609 07/31/2011 0.33% 3.52%
+ TLVT 06/01/2011 Schneider Electric (N/A) All Cash $2.02 billion $40.00 $39.87 210,775 09/30/2011 0.33% 1.25%
+ CPKI 05/25/2011 Golden Gate Capital (N/A) All Cash $470 million $18.50 $18.44 292,405 09/30/2011 0.33% 1.25%
+ WMG 05/06/2011 Access Industries (N/A) All Cash $3.3 billion $8.25 $8.23 1,529,910 09/30/2011 0.24% 0.93%
+ VRGY 03/28/2011 Advantest (ATE) All Cash $1.1 billion $15.00 $14.97 1,408,156 12/31/2011

0.20%

0.39%
+ SBIB 01/18/2011 Comerica Incorporated (CMA) All Stock $1.027 billion $7.98 $7.97 1,262,817 06/30/2011 0.12% 14.52%
+ BEC 02/07/2011 Danaher (DHR) All Cash $6.8 billion $83.50 $83.45 924,559 06/30/2011 0.06% 7.29%
+ PPD 01/31/2011 MidOcean Partners (N/A) All Cash $650 million $66.50 $66.48 74,358 07/31/2011 0.03% 0.32%
+ RURL 03/28/2011 Warburg Pincus (N/A) All Cash N/A $17.25 $17.25 344,092 06/30/2011 0.00% 0.00%
+ LB 04/04/2011 Ducommun Incorporated (DCO) All Cash $340 million $19.25 $19.25 61,050 06/30/2011 0.00% 0.00%
+ CLFC 12/09/2010 Nara Bancorp Inc. (NARA) All Stock $285.7 million $6.02 $6.03 640,886 09/30/2011 -0.09% -0.34%
+ NHP 02/28/2011 Ventas Inc. (VTR) All Stock $7.4 billion $41.49 $41.55 703,476 09/30/2011 -0.14% -0.53%
+ PRM 05/16/2011 affiliates of TPG Capital (N/A) All Cash $525 million $7.10 $7.11 520,935 09/30/2011 -0.14% -0.54%
+ ISYS 05/16/2011 Kratos Defense & Security Solutions, Inc. (KTOS) Cash Plus Stock $266 million $11.93 $11.97 436,964 09/30/2011 -0.36% -1.39%
+ DPL 04/19/2011 AES Corporation (AES) All Cash $4.7 billion $30.00 $30.11 711,857 01/31/2012

-0.37%

-0.61%
+ TBL 06/13/2011 VF Corp (VFC) All Cash $2 billion $43.00 $43.19 3,842,384 09/30/2011 -0.44% -1.69%
+ GRB 06/13/2011 Vector Capital (N/A) All Cash $281.8 million $11.00 $11.10 173,857 06/30/2011 -0.90% -109.61%
+ TOBC 06/20/2011 Susquehanna Bancshares (SUSQ) All Stock $343 million $26.54 $26.89 484,929 03/31/2012 -1.29% -1.70%
+ CV 05/30/2011 Fortis (N/A) All Cash $700 million $35.10 $35.73 310,774 05/31/2012 -1.76% -1.90%
+ HNB 06/02/2011 BankUnited Inc. (BKU) Cash Plus Stock $71.4 million $3.97 $4.15 54,291 12/31/2011

-4.35%

-8.49%
+ BARI 04/20/2011 Brookline Bancorp (BRKL) Cash Plus Stock $234 million $42.92 $45.07 69,098 12/31/2011 -4.76% -9.29%
+ AATI 05/26/2011 Skyworks Solutions, Inc. (SWKS) Cash Plus Stock $258.6 million $5.68 $6.05 1,025,747 09/30/2011 -6.19% -23.79%
+ SUG 06/16/2011 Energy Transfer Equity (ETE) All Cash $7.9 billion $33.00 $39.85 29,302,938 03/31/2012 -17.19% -22.57%
+ DTG 04/26/2010 Avis (CAR) Cash Plus Stock $1.56 billion $56.13 $73.07 180,150 12/31/2011

-23.19%

-45.26%
+ KSP 03/13/2011 Kirby Corporation (KEX) Special Conditions $335.3 million $4.08 $8.14 24,154 09/30/2011

-49.94%

-191.87%
+ NYX 02/15/2011 Deutsche Boerse (N/A) All Stock N/A $13.93 $31.87 3,329,784 12/31/2011 -56.30% -109.90%
+ ALKS 05/09/2011 Elan Corporation (ELAN) Cash Plus Stock $960 million N/A $17.31 1,011,814 09/30/2011

N/A

N/A

The following article is from one of our external contributors. It does not represent the opinion of Benzinga and has not been edited.

 

Most Popular

Related Articles (AMMD + CKXE)

Around the Web, We're Loving...

Partner Network

Get Benzinga's Newsletters