Market Overview

Merger Arbitrage Mondays – October 10, 2011

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Merger activity increased last week with four 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 161
Total Number of Deals Not Completed in 2011 2
Total Number of Pending Deals
Cash Deals 35
Stock Deals 18
Stock & Cash Deals 8
Total Number of Pending Deals 61

New Deals:

  1. The acquisition of Pharmaceutical Product Development (PPDI) by affiliates of The Carlyle Group and Hellman & Friedman for $3.9 billion or $33.25 per share in cash.
  2. The acquisition of S1 Corporation (SONE) by ACI Worldwide (ACIW) for $516 million in a cash plus stock deal, where shareholders of S1 Corporation will receive $6.62 per share in cash and 0.1064 shares of ACI common stock. This deal has been in the works since July when ACI Worldwide made its initial bid for S1 but the bid was rejected because S1 was planning on acquiring another company Fundtech (FNDT). Fundtech dropped the S1 deal in September for another offer, opening S1 up for a sweetened ACI Worldwide offer.
  3. The acquisition of AC Moore Arts & Crafts Inc. (ACMR) by an affiliate of Sbar's Inc for $40.8 million or $1.60 per share in cash.
  4. The acquisition of Southwall Technologies (SWTX) by Solutia (SOA) for $113 million or $13.60 per share in cash.


Closed Deals:

  1. The acquisition of Abington Bancorp (ABBC) by Susquehanna Bancshares (SUSQ) on October 03, 2011
  2. The acquisition of Blackboard (BBBB) by Providence Equity Partners on October 04, 2011
  3. The acquisition of Continucare (CNU) by Metropolitan Health networks (MDF) on October 04, 2011
  4. The acquisition of Global Crossing Limited (GLBC) by Level 3 Communications (LVLT) on October 04, 2011
  5. The acquisition of Ameron International Corporation (AMN) by National Oilwell Varco (NOV) on October 05, 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) $0.84 $0.63 10/31/2011 33.93% 589.71%
MHS 07/21/2011 Express Scripts, Inc. (ESRX) $60.76 $48.47 06/30/2012 25.36% 35.06%
AATI 05/26/2011 Skyworks Solutions, Inc. (SWKS) $5.35 $4.37 12/31/2011 22.40% 99.73%
TAM 01/19/2011 LAN Airlines S.A. (LFL) $18.78 $15.87 12/31/2011 18.36% 81.70%
HRBN 06/20/2011 Tech Full Electric Company Limited (N/A) $24.00 $21.17 12/31/2011 13.37% 59.50%
ABVA 07/27/2011 Eagle Bancorp, Inc. (EGBN) $5.15 $4.80 12/31/2011 7.30% 32.47%
ORCH 04/06/2011 Laboratory Corporation of America Holdings (LH) $2.80 $2.61 10/31/2011 7.28% 126.53%
LOOP 04/27/2011 CoStar Group (CSGP) $18.40 $17.36 12/31/2011 6.01% 26.76%
GR 09/21/2011 United Technologies Corp. (UTX) $127.50 $120.38 06/30/2012 5.91% 8.18%
MMI 08/15/2011 Google (GOOG) $40.00 $37.92 01/31/2012 5.49% 17.72%

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 $0.84 $0.63 21,437 10/31/2011 33.93% 589.71%
+ MHS 07/21/2011 Express Scripts, Inc. (ESRX) Cash Plus Stock $29.1 billion $60.76 $48.47 3,369,890 06/30/2012

25.36%

35.06%
+ AATI 05/26/2011 Skyworks Solutions, Inc. (SWKS) Cash Plus Stock $258.6 million $5.35 $4.37 231,394 12/31/2011 22.40% 99.73%
+ TAM 01/19/2011 LAN Airlines S.A. (LFL) All Stock N/A $18.78 $15.87 794,430 12/31/2011 18.36% 81.70%
+ HRBN 06/20/2011 Tech Full Electric Company Limited (N/A) All Cash N/A $24.00 $21.17 1,392,819 12/31/2011 13.37% 59.50%
+ ABVA 07/27/2011 Eagle Bancorp, Inc. (EGBN) All Stock $31.2 million $5.15 $4.80 N/A 12/31/2011 7.30% 32.47%
+ ORCH 04/06/2011 Laboratory Corporation of America Holdings (LH) All Cash $85.4 million $2.80 $2.61 9,700 10/31/2011 7.28% 126.53%
+ LOOP 04/27/2011 CoStar Group (CSGP) Cash Plus Stock $860 million $18.40 $17.36 107,611 12/31/2011 6.01% 26.76%
+ GR 09/21/2011 United Technologies Corp. (UTX) All Cash $18.4 billion $127.50 $120.38 4,319,120 06/30/2012

5.91%

8.18%
+ MMI 08/15/2011 Google (GOOG) All Cash $12.5 billion $40.00 $37.92 3,626,240 01/31/2012 5.49% 17.72%
+ ACMR 10/04/2011 affiliate of Sbar's Inc (N/A) All Cash $40.8 million $1.60 $1.52 593,581 12/31/2011 5.26% 23.43%
+ CEG 04/28/2011 Exelon Corporation (EXC) All Stock $7.9 billion $38.99 $37.45 3,317,682 01/31/2012 4.13% 13.32%
+ BFSB 08/17/2011 Investors Bancorp, Inc. (ISBC) All Cash $10.3 million $0.80 $0.770 10,874 12/31/2011 3.90% 17.34%
+ NETL 09/12/2011 Broadcom (BRCM) All Cash $3.7 billion $50.00 $48.16 2,942,341 06/30/2012

3.82%

5.28%
+ PPDI 10/03/2011 affiliates of The Carlyle Group and Hellman & Friedman (N/A) All Cash $3.9 billion $33.25 $32.12 4,736,533 12/31/2011 3.52% 15.66%
+ PNNW 11/12/2010 City of Nashua (N/A) All Cash $138 million $29.00 $28.02 18,300 12/31/2011 3.50% 15.57%
+ CLFC 12/09/2010 Nara Bancorp Inc. (NARA) All Stock $285.7 million $4.90 $4.75 108,849 11/30/2011 3.18% 22.74%
+ PGN 01/10/2011 Duke Energy Corporation (DUK) All Stock $13.7 billion $51.70 $50.38 1,968,709 12/31/2011 2.62% 11.67%
+ VSEA 05/04/2011 Applied Materials Inc. (AMAT) All Cash $4.9 billion $63.00 $61.41 805,511 11/15/2011 2.59% 26.25%
+ KCI 07/13/2011 Consortium of Funds (N/A) All Cash $6.3 billion $68.50 $66.86 1,612,975 12/31/2011 2.45% 10.92%
+ HGIC 09/29/2011 Nationwide Mutual Insurance Co (N/A) All Cash $760 million $60.00 $58.63 292,828 01/31/2012 2.34% 7.55%
+ CFSG 05/20/2011 Bain Capital Partners (N/A) All Cash $265.5 million $9.00 $8.80 179,807 11/15/2011 2.27% 23.04%
+ ENP 07/11/2011 Vanguard Natural Resources (VNR) All Stock $545 million $18.82 $18.43 71,209 12/31/2011

2.10%

9.36%
+ TIN 09/06/2011 International Paper (IP) All Cash $4.3 billion $32.00 $31.42 1,992,307 03/31/2012 1.85% 3.89%
+ AMAC 09/22/2011 Tunstall Healthcare Group Limited (N/A) All Cash $82.3 million $8.55 $8.40 163,105 12/31/2011 1.79% 7.95%
+ TGE 10/31/2011 Dawson Geophysical Company (DWSN) All Stock $157 million $4.90 $4.82 49,274 10/31/2011 1.72% 29.94%
+ CONM 07/12/2011 Ayelet Investments (N/A) All Cash $57.2 million $3.85 $3.79 4,600 12/31/2011 1.58% 7.05%
+ PVSA 06/15/2011 F.N.B. Corporation (FNB) All Stock $130 million $18.95 $18.67 9,806 12/31/2011 1.49% 6.64%
+ MFW 09/12/2011 MacAndrews and Forbes (N/A) All Cash N/A $25.00 $24.67 86,393 12/31/2011 1.34% 5.95%
+ SONE 10/03/2011 ACI Worldwide (ACIW) Cash Plus Stock $516 million $9.44 $9.33 1,229,024 12/31/2011 1.21% 5.38%
+ ARJ 07/11/2011 Lonza Group Ltd (N/A) All Cash $1.4 billion $47.20 $46.66 587,596 12/31/2011 1.16% 5.15%
+ FNDT 06/27/2011 GTCR (N/A) All Cash $352.7 $23.33 $23.08 N/A 12/31/2011 1.08% 4.82%
+ AHCI 07/29/2011 Saga Group Limited (N/A) All Cash $175 million $3.90 $3.86 187,749 12/31/2011 1.04% 4.61%
+ GLBL 09/12/2011 Technip (N/A) All Cash $1.1 billion $8.00 $7.92 5,142,595 01/31/2012 1.01% 3.26%
+ PMIC 09/08/2011 Ace (ACE) All Cash N/A $20.30 $20.10 1,500 03/31/2012 1.00% 2.10%
+ STBC 04/28/2011 Valley National Bancorp (VLY) All Stock $222 million $10.67 $10.58 32,912 10/31/2011 0.85% 14.79%
+ SWTX 10/07/2011 Solutia Inc. (SOA) All Cash $113 million $13.60 $13.49 656,619 12/31/2011 0.82% 3.63%
+ NSTC 06/10/2011 affiliate of Citi Venture Capital International (CVCI) (N/A) All Cash $307 million $7.75 $7.69 294,238 10/31/2011 0.78% 13.56%
+ CALP 09/08/2011 PerkinElmer Inc. (PKI) All Cash $600 million $10.50 $10.42 8,955,408 12/31/2011

0.77%

3.42%
+ GAS 12/07/2010 AGL Resources Inc. (AGL) Cash Plus Stock $2.4 billion $55.10 $54.72 372,552 11/15/2011 0.69% 6.98%
+ CEPH 05/02/2011 Teva Pharmaceutical Industries Ltd. (TEVA) All Cash $6.8 billion $81.50 $81.07 4,069,387 11/15/2011 0.53% 5.38%
+ EM 08/04/2011 Blackstone (N/A) All Cash $3 billion $19.00 $18.92 1,020,207 12/31/2011 0.42% 1.88%
+ NXG 08/29/2011 AuRico Gold Inc. (AUQ) All Stock $1.46 billion $3.55 $3.54 3,992,617 10/31/2011 0.32% 5.62%
+ FPIC 05/24/2011 The Doctors Company (N/A) All Cash $362 million $42.00 $41.88 76,729 12/31/2011 0.29% 1.28%
+ CV 07/12/2011 Gaz metro Limited Partnership (N/A) All Cash $702 million $35.25 $35.15 166,695 12/31/2011 0.28% 1.27%
+ APAC 07/07/2011 One Equity Partners (N/A) All Cash $470 million $8.55 $8.53 800,703 12/31/2011

0.23%

1.04%
+ ICGN 07/20/2011 Pfizer Inc. (PFE) All Cash $56 million $6.00 $5.99 29,700 12/31/2011 0.17% 0.74%
+ GLA 09/01/2011 The Gores Group (N/A) All Cash N/A $0.46 $0.46 4,000 12/31/2011 0.00% 0.00%
+ TLVT 06/01/2011 Schneider Electric (N/A) All Cash $2.02 billion $40.00 $40.09 36,591 12/31/2011 -0.22% -1.00%
+ DPL 04/19/2011 AES Corporation (AES) All Cash $4.7 billion $30.00 $30.14 1,298,274 01/31/2012

-0.46%

-1.50%
+ NST 10/18/2010 Northeast Utilities (NU) All Stock $4.17 billion $42.05 $42.32 402,195 10/31/2011 -0.64% -11.11%
+ NLC 07/20/2011 Ecolab Inc. (ECL) All Stock $5.4 billion $35.20 $35.51 5,898,976 12/31/2011 -0.87% -3.88%
+ HNB 06/02/2011 BankUnited Inc. (BKU) Cash Plus Stock $71.4 million $3.33 $3.39 N/A 12/31/2011

-1.89%

-8.40%
+ PAET 08/01/2011 Windstream Corp. (WIN) All Stock $2.3 billion $5.17 $5.33 1,620,768 01/31/2012 -2.99% -9.67%
+ ALTH 07/20/2011 Amag Pharmaceuticals (AMAG) All Stock $686 million $1.69 $1.75 510,545 12/31/2011 -3.52% -15.67%
+ RLRN 08/16/2011 Permira Funds (N/A) All Cash $455 million $15.50 $16.68 137,323 12/31/2011 -7.07% -31.49%
+ TOBC 06/20/2011 Susquehanna Bancshares (SUSQ) All Stock $343 million $19.57 $21.51 22,130 03/31/2012 -9.03% -19.04%
+ SUG 06/16/2011 Energy Transfer Equity (ETE) All Stock $9.4 billion $34.24 $39.99 1,295,196 03/31/2012 -14.38% -30.34%
+ BARI 04/20/2011 Brookline Bancorp (BRKL) Cash Plus Stock $234 million $36.97 $43.34 10,198 12/31/2011 -14.69% -65.40%
+ OCNF 07/26/2011 DryShips, Inc. (DRYS) Cash Plus Stock $118 million $12.42 $18.30 29,683 12/31/2011

-32.12%

-142.97%
+ NYX 02/15/2011 Deutsche Boerse (N/A) All Stock N/A $13.93 $24.37 3,008,102 12/31/2011 -42.86% -190.76%

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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