Merger Arbitrage Mondays – June 07, 2010

The activity on the Merger and Acquisition front increased once again last week with seven new deals announced and four deals closing. We are also happy to report the beta launch of a new tool that will let you see the spreads on deals in almost real time. This tool automatically calculates the profits and annualized profits for all cash, cash plus stock and all stock deals during trading hours. It will also calculate the profits for deals that have special collars like the acquisition of WuXi PharmaTech (WX) by Charles River Labs (CRL) that was discussed in this blog entry. Please take our new Merger Arbitrage tool for a test drive and let us know your thoughts on how we could improve it.

The deals that closed last week include the acquisition of RiskMetrics Group (RISK) by MSCI on June 02, 2010, the acquisition of Dialysis Corporation of America (DCAI) by U.S. Renal Care on June 02, 2010, the acquisition of CNX Gas (CXG) by Consol Energy on June 01, 2010 and the acquisition of Protection One (PONE) by GTCR on June 04, 2010

The Seven New Deals include the acquisition of ev3 (EVVV) by Covidien plc (COV) for $22.5 per share in cash, the acquisition of SonicWall (SNWL) by an investor group led by private equity firm Thoma Bravo LLC for $11.5 per share in cash, the acquisition of DivX (DIVX) by Sonic Solutions (SNIC) for $3.75 in cash and 0.514 shares of Sonic Solutions common stock for each share of DivX, the acquisition of PET DRx Corp (VETS) by VCA Antech Inc (WOOF) for $0.34 to $0.36 per share in cash and the acquisition of OMNI Energy Services (OMNI) by Wellspring Capital Management for $2.75 per share in cash.

The other two new deals include Mediacom Communications Corporation (MCCC), which is being taken private by it’s CEO Rocco Commisso for $6 per share in cash and the acquisition of Gerdau Ameristeel Corporation (GNA) by Gerdau (GGB) for $11 per share in cash. The closing date for these two deals has not been mentioned so far.

We have also updated the information for the acquisition of car rental company Dollar Thrifty (DTG) by Hertz.

  Symbol Announced
Date
Acquiring
Company
Closing
Value
Closing
Price
Last
Price
Closing
Date
Profit Annu.
Profit
+ AYE 02/11/2010 FirstEnergy $8.5 billion $23.90 $20.74 03/31/2011 15.23% 18.72%
+ SSE 02/23/2010 Naugatuck Valley Financial Corp $19.5 million $7.25 $6.30 08/16/2010 15.08% 78.63%
+ ATBC 05/10/2010 Jacksonville Bancorp N/A $2.95 $2.56 09/30/2010 15.08% 47.86%
+ WX 04/26/2010 Charles River Laboratories $1.6 billion $20.28 $18.10 12/31/2010 12.04% 21.23%
+ PINN 02/24/2010 Investor Group lead by Scotia Waterous (USA) $11 million $0.34 $0.31 06/30/2010 9.68% 153.62%
+ Q 04/22/2010 Century Link $10.6 billion $5.65 $5.24 04/21/2011 7.78% 8.93%
+ ME 04/15/2010 Apache $2.7 billion $23.15 $21.56 09/30/2010 7.36% 23.36%
+ SWWC 03/03/2010 Institutional Investors $275 million $11.00 $10.25 03/31/2011 7.32% 9.00%
+ EMMS 05/25/2010 JS Acquisition and Alden Global Capital $3 billion $2.40 $2.29 09/30/2010 4.80% 15.23%
+ DIVX 06/02/2010 Sonic Solutions $323 million $9.01 $8.63 09/30/2010 4.38% 13.90%
+ VTIV 05/06/2010 Thomas H. Lee Partners $1.1 billion $26.00 $24.96 09/30/2010 4.17% 13.24%
+ BNE 02/24/2010 RR Donnelley $481 million $11.50 $11.04 09/30/2010 4.17% 13.24%
+ PRPX 02/17/2010 L.B. Foster Co. $112 million $11.71 $11.25 06/30/2010 4.09% 64.91%
+ PSYS 05/17/2010 Universal Health $3.1 billion $33.75 $32.50 12/31/2010 3.85% 6.79%
+ SII 02/19/2010 Schlumberger $7.5 billion $39.56 $38.21 09/30/2010 3.53% 11.20%
+ GLG 05/17/2010 Man Group $1.6 billion $4.50 $4.35 09/30/2010 3.45% 10.95%
+ RCNI 03/05/2010 ABRY Partners $536 million $15.00 $14.50 09/30/2010 3.45% 10.95%
+ MAM 03/12/2010 Emera Inc $75.7 million $45.00 $43.50 12/31/2010 3.45% 6.08%
+ STBK 03/18/2010 Roma Financial Corp $14.7 million $2.52 $2.44 08/16/2010 3.28% 17.10%
+ IDC 05/04/2010 Silver Lake & Warburg Pincus $3.4 billion $33.86 $32.86 09/30/2010 3.04% 9.65%
+ VETS 06/02/2010 VCA Antech Inc $41.25 million $0.34 $0.33 09/30/2010 3.03% 9.62%
+ EFJI 05/17/2010 Francisco Partners   $1.05 $1.02 09/30/2010 2.94% 9.33%
+ DCP 04/12/2010 Cerberus Capital Management $1.5 billion $17.55 $17.12 11/15/2010 2.51% 5.69%
+ ORCD 03/16/2010 eMusic $12.77 million $2.05 $2.00 08/16/2010 2.50% 13.04%
+ HTRN 05/05/2010 Endo Pharmaceuticals $223 million $4.85 $4.74 07/31/2010 2.32% 15.68%
+ OMNI 06/04/2010 Wellspring Capital Management $122 million $2.75 $2.69 11/15/2010 2.23% 5.06%
+ VRAD 05/17/2010 Providence Equity $294 million $17.25 $16.88 09/30/2010 2.19% 6.95%
+ BSMD 05/13/2010 Merit Medical Systems $96 million $4.38 $4.29 09/30/2010 2.10% 6.67%
+ PFWD 04/16/2010 Oracle Corp. $685 million $17.00 $16.65 06/30/2010 2.10% 33.33%
+ ATSI 04/29/2010 Medtronic $350 million $4.00 $3.93 09/30/2010 1.78% 5.65%
+ WEL 04/09/2010 Halliburton Company $240 million $3.00 $2.95 09/30/2010 1.69% 5.36%
+ ODSY 05/24/2010 Gentiva Health Services $1.0 billion $27.00 $26.55 09/30/2010 1.69% 5.36%
+ SNWL 06/03/2010 investor group led by private equity firm Thoma Bravo LLC $636 million $11.50 $11.31 12/31/2010 1.68% 2.96%
+ WMZ 05/24/2010 Williams Partners L.P.   $29.71 $29.27 09/30/2010 1.52% 4.82%
+ MIR 04/12/2010 RRI Energy In. $1.6 billion $12.76 $12.57 12/31/2010 1.49% 2.63%
+ CKR 03/01/2010 Apollo Management VII $694 million $12.55 $12.38 06/30/2010 1.37% 21.74%
+ CAL 05/03/2010 United $1.2 billion $22.94 $22.64 12/31/2010 1.34% 2.36%
+ SENO 05/05/2010 Bard $200 million $11.00 $10.86 09/30/2010 1.29% 4.09%
+ DBTK 05/17/2010 Vision Solutions $242 million $10.55 $10.42 09/30/2010 1.25% 3.97%
+ CRN 04/19/2010 GeoGroup $685 million $26.86 $26.56 09/30/2010 1.12% 3.55%
+ CPII 05/10/2010 Comtech $472.3 million $15.93 $15.76 09/30/2010 1.09% 3.46%
+ EVVV 06/01/2010 Covidien plc $2.6 billion $22.50 $22.26 07/31/2010 1.08% 7.30%
+ CYBS 04/21/2010 Visa Inc. $2.0 billion $26.00 $25.74 09/30/2010 1.01% 3.21%
+ SY 05/12/2010 SAP $5.8 billion $65.00 $64.40 09/30/2010 0.93% 2.95%
+ TWPG 04/26/2010 Stifel Financial $300 million $6.67 $6.61 06/30/2010 0.87% 13.81%
+ SXE 05/07/2010 CGI Group $904 million $37.50 $37.19 09/30/2010 0.83% 2.63%
+ IUSA 03/08/2010 CCMP $460 million $8.00 $7.94 06/30/2010 0.76% 12.06%
+ RBI 03/15/2010 affiliate of Oncap Management Partners L.P.   $13.55 $13.45 08/16/2010 0.74% 3.86%
+ BELM 03/29/2010 Avnet $252 million $7.00 $6.95 06/30/2010 0.72% 11.43%
+ ARD 04/04/2010 SandRidge Energy Inc. $1.6 billion $36.04 $35.80 09/30/2010 0.66% 2.09%
+ NADX 04/05/2010 GDC Holdings Inc. $100 million $17.00 $16.91 06/30/2010 0.53% 8.41%
+ MIL 03/01/2010 Merck $6 billion $107.00 $106.49 09/30/2010 0.48% 1.52%
+ BWY 03/29/2010 Madison Dearborn Partners, LLC ("MDP") $915 million $20.00 $19.94 08/16/2010 0.30% 1.56%
+ NGA 04/01/2010 AZZ Inc. $125.6 million $7.50 $7.49 08/31/2010 0.13% 0.56%
+ TSFG 05/17/2010 TD Bank Financial Group $61 million $0.28 $0.28 09/30/2010 0.00% 0.00%
+ OSIP 05/17/2010 Astellas Pharma $3.5 billion $57.50 $57.50 06/30/2010 0.00% 0.00%
+ PALM 04/28/2010 Hewlett – Packard $1.2 billion $5.70 $5.70 07/31/2010 0.00% 0.00%
+ GNA 06/02/2010 Gerdau $1.7 billion $11.00 $11.02 N/A -0.18% 0.00%
+ MCCC 06/01/2010 Chief Executive Rocco Commisso $590 million $6.00 $6.25 N/A -4.00% 0.00%
+ DTG 04/26/2010 Hertz $1.3 billion $39.31 $44.90 12/31/2010 -12.46% -21.97%
+ SMMX 04/05/2010 Accelrys Inc. $186 million $5.19 $6.32 06/30/2010 -17.91% -284.22%
+ CCE 02/25/2010 The Coca-Cola Company $12.3 billion $0.00 $25.82 10/01/2010 N/A N/A
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