Market Overview

Merger Arbitrage Mondays – September 12, 2011

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Merger activity increased last week with three new deals announced and three 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 148
Total Number of Deals Not Completed in 2011 1
Total Number of Pending Deals
Cash Deals 33
Stock Deals 23
Stock & Cash Deals 10
Total Number of Pending Deals 66

New Deals:

  1. The acquisition of Temple Inland (TIN) by International Paper (IP) for $4.3 billion or $32.00 per share in cash. This offer replaces an earlier $30.60 per share offer by International Paper that was rejected by Temple Inland as being too low.
  2. The acquisition of Penn Millers Insurance Corporation (PMIC) by Ace Limited (ACE) for $20.50 per share in cash.
  3. The acquisition of Caliper Life Sciences (CALP) by PerkinElmer (PKI) for $600 million or $10.50 per share in cash.


Closed Deals:

  1. The acquisition of SFN Group (SFN) by Randstad Holding on September 05, 2011
  2. The acquisition of Duncan Energy Partners (DEP) by Enterprise Products Partners (EPD) on September 07, 2011
  3. The acquisition of Graham Packaging Company (GRM) by Reynolds Group Holdings Limited on September 08, 2011


Top 10 deals with largest spreads:

Symbol Announced
Date
Acquiring
Company
Closing
Price
Last
Price
Closing
Date
Profit Annualized
Profit
GRAN 04/27/2011 FNB United Corp (FNBN) $1.47 $0.70 09/30/2011 109.73% 2225.12%
FNDT 06/27/2011 S1 Corporation (SONE) $23.96 $16.19 12/31/2011 48.01% 159.31%
ALTH 07/20/2011 Amag Pharmaceuticals (AMAG) $1.82 $1.44 12/31/2011 26.06% 86.48%
MHS 07/21/2011 Express Scripts, Inc. (ESRX) $64.17 $51.31 06/30/2012 25.07% 31.34%
HRBN 06/20/2011 Tech Full Electric Company Limited (N/A) $24.00 $19.80 12/31/2011 21.21% 70.39%
TAM 01/19/2011 LAN Airlines S.A. (LFL) $24.62 $20.78 12/31/2011 18.46% 61.24%
AATI 05/26/2011 Skyworks Solutions, Inc. (SWKS) $5.39 $4.64 09/30/2011 16.13% 327.05%
CRU 05/05/2011 Capital Product Partners L.P. (CPLP) $9.91 $9.24 09/30/2011 7.21% 146.16%
NXG 08/29/2011 AuRico Gold Inc. (AUQ) $4.27 $4.00 10/31/2011 6.76% 50.37%
MMI 08/15/2011 Google (GOOG) $40.00 $37.50 01/31/2012 6.67% 17.26%

List of all pending deals:

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

Date

Profit Annu.
Profit
+ GRAN 04/27/2011 FNB United Corp (FNBN) All Stock N/A $1.47 $0.70 40,008 09/30/2011 109.73% 2225.12%
+ FNDT 06/27/2011 S1 Corporation (SONE) All Stock $700 million $23.96 $16.19 12,689 12/31/2011

48.01%

159.31%
+ ALTH 07/20/2011 Amag Pharmaceuticals (AMAG) All Stock $686 million $1.82 $1.44 704,982 12/31/2011 26.06% 86.48%
+ MHS 07/21/2011 Express Scripts, Inc. (ESRX) Cash Plus Stock $29.1 billion $64.17 $51.31 4,354,371 06/30/2012 25.07% 31.34%
+ HRBN 06/20/2011 Tech Full Electric Company Limited (N/A) All Cash N/A $24.00 $19.80 2,579,739 12/31/2011 21.21% 70.39%
+ TAM 01/19/2011 LAN Airlines S.A. (LFL) All Stock N/A $24.62 $20.78 658,422 12/31/2011 18.46% 61.24%
+ AATI 05/26/2011 Skyworks Solutions, Inc. (SWKS) Cash Plus Stock $258.6 million $5.39 $4.64 10,193,777 09/30/2011 16.13% 327.05%
+ CRU 05/05/2011 Capital Product Partners L.P. (CPLP) All Stock $281.3 million $9.91 $9.24 150,702 09/30/2011 7.21% 146.16%
+ NXG 08/29/2011 AuRico Gold Inc. (AUQ) All Stock $1.46 billion $4.27 $4.00 12,657,750 10/31/2011

6.76%

50.37%
+ MMI 08/15/2011 Google (GOOG) All Cash $12.5 billion $40.00 $37.50 5,102,815 01/31/2012 6.67% 17.26%
+ ABVA 07/27/2011 Eagle Bancorp, Inc. (EGBN) All Stock $31.2 million $5.00 $4.70 9,470 12/31/2011 6.36% 21.12%
+ LOOP 04/27/2011 CoStar Group (CSGP) Cash Plus Stock $860 million $18.32 $17.26 523,952 12/31/2011 6.15% 20.40%
+ ENP 07/11/2011 Vanguard Natural Resources (VNR) All Stock $545 million $20.30 $19.28 92,416 12/31/2011 5.30% 17.60%
+ CSR 04/20/2011 Rightmark Holdings Limited (N/A) All Cash $583.2 million $6.50 $6.23 984,624 09/30/2011 4.33% 87.88%
+ CEG 04/28/2011 Exelon Corporation (EXC) All Stock $7.9 billion $39.41 $37.88 1,996,943 01/31/2012 4.05% 10.48%
+ CFSG 05/20/2011 Bain Capital Partners (N/A) All Cash $265.5 million $9.00 $8.67 84,419 11/15/2011 3.81% 21.71%
+ GLA 09/01/2011 The Gores Group (N/A) All Cash N/A $0.46 $0.445 6,600 12/31/2011 3.37% 11.18%
+ ORCH 04/06/2011 Laboratory Corporation of America Holdings (LH) All Cash $85.4 million $2.80 $2.71 154,423 07/31/2011 3.32% 0.00%
+ BBBB 07/01/2011 Providence Equity Partners (N/A) All Cash $1.64 billion $45.00 $43.62 1,622,668 12/31/2011 3.16% 10.50%
+ TIN 09/06/2011 International Paper (IP) All Cash $4.3 billion $32.00 $31.05 8,661,134 03/31/2012

3.06%

5.56%
+ KCI 07/13/2011 Consortium of Funds (N/A) All Cash $6.3 billion $68.50 $66.56 1,907,076 12/31/2011 2.91% 9.67%
+ PVSA 06/15/2011 F.N.B. Corporation (FNB) All Stock $130 million $18.08 $17.59 300 12/31/2011 2.77% 9.19%
+

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

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