Merger Arbitrage Mondays – August 30, 2010

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Merger activity decreased significantly last week with just one new deal being announced, one deal modified and four deals closing. A deal that was long rumored was also announced on Sunday when French drug maker Sanofi-Aventis disclosed its $18.5 billion bid for Genzyme for $69 in cash.

Based on feedback received, we have modified the format of these posts and we hope that you find this new format useful.

Deal Statistics:

Total Number of Deals Closed in 2010 60
Total Number of Deals That Did Not Complete in 2010 2
Total Number of Pending Deals
Cash Deals 47
Stock Deals 9
Stock & Cash Deals 12
Total Number of Pending Deals 68


New Deals:

The acquisition of Diamond Management & Technology Consultants (DTPI) by PricewaterhouseCoopers for a closing value of $378 million at $12.50 per share in cash

Closed Deals:

1. The acquisition of TTI Telecom (TTIL) by TEOCO Corporation on August 23, 2010

2. The acquisition of Eclipsys Corporation (ECLP) by Allscripts – Misys Healthcare (MDRX) on August 25, 2010

3. The acquisition of RCN Corporation (RCNI) by ABRY Partners on August 26, 2010

4. The acquisition of Smith International (SII) by Schlumberger on August 27, 2010

Modified Deals:

The acquisition of 3PAR (PAR) by Hewlett-Packard Company (HPQ) for a closing value of $2 billion at $30 per share in cash. After a whole week of bidding war, 3PAR accepted HP’s superior bid. Dell now has three days to come back with a counter offer.

A Short History of the Dell-HP-3PAR Saga:

August 28, 2010: 3Par accepts HP’s ’superior’ $2B offer

August 27, 2010: Donatelli seen driving HP bidding war for 3Par

August 27, 2010: HP raises 3Par bid to $2B, now it’s Dell’s turn

August 27, 2010: HP tops Dell again with $2B 3Par bid

August 26, 2010: HP again boosts offer for 3Par, this time to $1.8B

August 26, 2010: Dell boosts offer for 3Par

August 26, 2010: HP again boosts offer for 3Par, this time to $1.8B

August 25, 2010: 3Par open to new Dell offer

August 25, 2010: 3Par to talk with HP, open to new Dell bid

August 24, 2010: 3Par up again as Dell mulls higher offer

August 24, 2010: Dell could sweeten offer for 3Par

August 23, 2010: Text of HP offer to buy 3Par

August 23, 2010: 3Par shares surge on HP’s $1.6B offer

August 23, 2010: HP’s $1.6B offer for 3Par tops Dell

August 16, 2010: Dell to buy 3Par for $1.15B

Top 10 Deals With the Largest Spreads:

Symbol Acquiring Company Closing Price Last Price Closing Date Profit Annu. Profit
TLCR Grifols (GRF.MC) $26.59 $22.22 12/31/2010 19.64% 58.30%
SSE Naugatuck Valley Financial Corp (NVSL) $7.25 $6.09 09/30/2010 19.05% 224.27%
EMMS JS Acquisition and Alden Global Capital (N/A) $2.40 $2.0206 09/30/2010 18.78% 221.08%
NAL First Niagara Financial Group (FNFG) $14.09 $12.79 05/15/2011 10.16% 14.38%
ALY SeaDrill (N/A) $4.25 $3.87 12/31/2010 9.82% 29.14%
AYE FirstEnergy (FE) $24.45 $22.56 03/31/2011 8.39% 14.37%
ATBC Jacksonville Bancorp (JAXB) $2.32 $2.15 09/30/2010 7.91% 93.10%
Q Century Link (CTL) $6.01 $5.64 04/21/2011 6.57% 10.24%
NRGP Inergy (NRGY) $29.59 $28.16 12/31/2010 5.08% 15.08%
BGH Buckeye Partners LP (BPL) $44.17 $42.10 12/31/2010 4.91% 14.58%


List of All Pending Deals:

  Symbol Announced
Date
Acquiring
Company
Closing
Value
Closing
Price
Last
Price
Closing
Date
Profit Annu.

 

Profit

+ TLCR 06/07/2010 Grifols (GRF.MC) $3.4 billion $26.59 $22.22 12/31/2010 19.66% 58.34%
+ SSE 02/23/2010 Naugatuck Valley Financial Corp (NVSL) $19.5 million $7.25 $6.09 09/30/2010 19.05% 224.27%
+ EMMS 05/25/2010 JS Acquisition and Alden Global Capital (N/A) $3 billion $2.40 $2.0206 09/30/2010 18.78% 221.08%
+ NAL 08/19/2010 First Niagara Financial Group (FNFG) $1.5 billion $14.09 $12.79 05/15/2011 10.16% 14.38%
+ ALY 08/12/2010 SeaDrill (N/A) $890 million $4.25 $3.87 12/31/2010 9.82% 29.14%
+ AYE 02/11/2010 FirstEnergy (FE) $8.5 billion $24.45 $22.56 03/31/2011 8.39% 14.37%
+ ATBC 05/10/2010 Jacksonville Bancorp (JAXB) N/A $2.32 $2.15 09/30/2010 7.91% 93.10%
+ Q 04/22/2010 Century Link (CTL) $10.6 billion $6.01 $5.64 04/21/2011 6.57% 10.24%
+ NRGP 08/09/2010 Inergy (NRGY) $2.07 billion $29.59 $28.16 12/31/2010 5.08% 15.08%
+ BGH 06/11/2010 Buckeye Partners LP (BPL) $1.14 billion $44.17 $42.10 12/31/2010 4.91% 14.58%
+ CCBP 08/09/2010 F.N.B. Corporation (FNB) $70 million $37.98 $36.52 12/31/2010 4.00% 11.88%
+ VETS 06/02/2010 VCA Antech Inc (WOOF) $41.25 million $0.34 $0.3272 09/30/2010 3.91% 46.06%
+ ATAC 07/19/2010 Genco Distribution System Inc. (N/A) $513 million $25.00 $24.15 12/31/2010 3.52% 10.44%
+ PINN 02/24/2010 Investor Group lead by Scotia Waterous (USA) (N/A) $11 million $0.34 $0.33 08/21/2010 3.03% 0.00%
+ PTV 08/17/2010 Reynolds Group Holdings (N/A) $6 billion $33.25 $32.30 12/31/2010 2.94% 8.73%
+ BNE 02/24/2010 RR Donnelley (RRD) $481 million $11.50 $11.18 09/30/2010 2.86% 33.70%
+ BXC 07/22/2010 Cerberus Capital Management (N/A) $111.1 million $3.40 $3.31 12/31/2010 2.72% 8.07%
+ ALOY 06/24/2010 ZelnickMedia (N/A) $126.5 million $9.80 $9.57 12/31/2010 2.40% 7.13%
+ SMTB 07/15/2010 People's United Financial Inc. (PBCT) $60 million $3.83 $3.74 12/31/2010 2.38% 7.06%
+ DIVX 06/02/2010 Sonic Solutions (SNIC) $323 million $7.85 $7.69 09/30/2010 2.04% 23.97%
+ PMACA 06/10/2010 Old Republic International (ORI) $228 million $7.02 $6.88 09/30/2010 2.01% 23.62%
+ MFE 08/19/2010 Intel Corporation (INTC) $7.68 billion $48.00 $47.10 12/31/2010 1.91% 5.67%
+ PTEC 08/17/2010 Marlin Equity Partners (N/A) $139 million $3.85 $3.78 12/31/2010 1.85% 5.50%
+ PTEC 08/17/2010 Marlin Equity Partners (N/A) $139 million $3.85 $3.78 12/31/2010 1.85% 5.50%
+ PRPX 02/17/2010 L.B. Foster Co. (FSTR) $112 million $11.71 $11.50 08/31/2010 1.83% 666.52%
+ TSFG 05/17/2010 TD Bank Financial Group (N/A) $61 million $0.28 $0.2752 09/30/2010 1.74% 20.54%
+ OSTE 08/17/2010 Medtronic (MDT) $123 million $6.50 $6.395 12/31/2069 1.64% 0.03%
+ WAIN 06/29/2010 Eastern Bank (N/A) $163 million $19.00 $18.71 12/31/2010 1.55% 4.60%
+ XJT 08/04/2010 SkyWest (SKYW) $133 million $6.75 $6.65 12/31/2010 1.50% 4.46%
+ OMNI 06/04/2010 Wellspring Capital Management (N/A) $122 million $2.75 $2.71 11/15/2010 1.48% 7.00%
+ PSYS 05/17/2010 Universal Health (N/A) $3.1 billion $33.75 $33.29 12/31/2010 1.38% 4.10%
+ MIR 04/12/2010 RRI Energy In. (RRI) $1.6 billion $9.84 $9.71 12/31/2010 1.31% 3.90%
+ NTY 07/15/2010 The Carlyle Group (N/A) $3.8 billion $55.00 $54.38 12/31/2010 1.14% 3.38%
+ ACF 07/22/2010 General Motors Co. (N/A) $3.5 billion $24.50 $24.25 12/31/2010 1.03% 3.06%
+ NYM 07/15/2010 ProSight (N/A) $230 million $25.75 $25.51 12/31/2010 0.94% 2.79%
+ GLG 05/17/2010 Man Group (N/A) $1.6 billion $4.50 $4.46 09/30/2010 0.90% 10.56%
+ MAM 03/12/2010 Emera Inc (N/A) $75.7 million $45.00 $44.60 12/31/2010 0.90% 2.66%
+ ME 04/15/2010 Apache (APA) $2.7 billion $23.13 $22.95 09/30/2010 0.80% 9.42%
+ AEZ 07/28/2010 Hess Corp (HES) $450 million $7.07 $7.01 12/31/2010 0.79% 2.35%
+ HEW 07/12/2010 Aon Corp (AON) $4.9 billion $49.26 $48.91 11/15/2010 0.71% 3.37%
+ WEL 04/09/2010 Halliburton Company (HAL) $240 million $3.00 $2.98 09/30/2010 0.67% 7.90%
+ ACAP 07/08/2010 The Doctors Company (N/A) $386 million $41.50 $41.26 12/31/2010 0.58% 1.73%
+ LSBX 07/15/2010 People's United Financial Inc. (PBCT) $96 million $21.00 $20.90 12/31/2010 0.48% 1.42%
+ BSMD 05/13/2010 Merit Medical Systems (MMSI) $96 million $4.38 $4.36 09/30/2010 0.46% 5.40%
+ SWWC 03/03/2010 Institutional Investors (N/A) $275 million $11.00 $10.97 03/31/2011 0.27% 0.47%
+ HGRD 07/28/2010 an affiliate of the private equity firm Vestar Capital (N/A) $294 million $8.20 $8.18 09/30/2010 0.24% 2.88%
+ PPCO 08/09/2010 Endo Pharmaceuticals (ENDP) $144 million $5.00 $4.99 12/31/2010 0.20% 0.59%
+ ADCT 07/13/2010 Tyco Electronics (TEL) $1.24 billion $12.75 $12.725 12/31/2010 0.20% 0.58%
+ WMZ 05/24/2010 Williams Partners L.P. (WPZ)   $32.36 $32.30 09/30/2010 0.19% 2.22%
+ RUBO 05/10/2010 Mill Road Capital (N/A) $91 million $8.70 $8.69 08/23/2010 0.12% 0.00%
+ GNA 06/02/2010 Gerdau (GGB) $1.7 billion $11.00 $10.99 08/31/2010 0.09% 33.21%
+ SWSI 08/09/2010 Nabors Industries (NBR) $900 million $22.12 $22.11 09/30/2010 0.05% 0.53%
+ DTPI 08/24/2010 PricewaterhouseCoopers (N/A) $378 million $12.50 $12.50 12/31/2010 0.00% 0.00%
+ VIRL 06/10/2010 Synopsys (SNPS) $315 million $12.00 $12.00 12/31/2010 0.00% 0.00%
+ MEND 07/12/2010 Johnson & Johnson (JNJ) $480 million $23.40 $23.41 09/30/2010 -0.04% -0.50%
+ UNCA 08/13/2010 IBM (IBM) $480 million $21.00 $21.02 12/31/2010 -0.10% -0.28%
+ VRX 06/21/2010 Biovail Corporation (BVF) $3.3 billion $58.07 $58.33 12/31/2010 -0.45% -1.33%
+ ICXT 08/16/2010 FLIR Systems (FLIR) $274 million $7.55 $7.64 12/31/2010 -1.18% -3.50%
+ CAL 05/03/2010 United (UAUA) $1.2 billion $21.47 $21.80 12/31/2010 -1.50% -4.46%
+ PZZ 08/16/2010 Leonard Green & Partners (N/A) $363 million $8.50 $8.63 12/31/2010 -1.51% -4.47%
+ ABII 06/30/2010 Celgene (CELG) $2.9 billion $71.57 $74.20 12/31/2010 -3.55% -10.53%
+ TRBN 08/12/2010 Emergent BioSolution (EBS) $96.8 million $4.22 $4.45 12/31/2010 -5.09% -15.10%
+ DYN 08/13/2010 Blackstone Group (BX) $4.7 billion $4.50 $4.81 12/31/2010 -6.44% -19.13%
+ CPII 05/10/2010 Comtech (CMTL) $472.3 million $13.69 $14.72 09/30/2010 -6.97% -82.02%
+ PAR 08/28/2010 Hewlett-Packard Company (HPQ) $2 billion $30.00 $32.46 12/31/2010 -7.58% -22.49%
+ MCCC 06/01/2010 Chief Executive Rocco Commisso (N/A) $590 million $6.00 $7.20 N/A -16.67% 0.00%
+ DTG 04/26/2010 Hertz (HTZ) $1.3 billion $38.43 $48.05 12/31/2010 -20.03% -59.43%
+ CCE 02/25/2010 The Coca-Cola Company (KO) $12.3 billion N/A $28.67 10/01/2010 N/A N/A


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