Merger Arbitrage Mondays – September 13, 2010

Merger activity remained steady last week with four new deals announced and no deals closing.

Deal Statistics:

Total Number of Deals Closed in 2010 64
Total Number of Deals That Did Not Complete in 2010 5
Total Number of Pending Deals
Cash Deals 48
Stock Deals 10
Stock & Cash Deals 12
Total Number of Pending Deals 70

New Deals:

  1. The acquisition of Enterprise G.P. Holdings (EPE) by Enterprise products (EPD) for $8 billion. Under the deal, Enterprise GP unit holders would receive 1.5 Enterprise Products common units in exchange for each Enterprise GP unit.
  2. The acquisition of ResCare Inc (RSCR) by Canadian private equity firm Onex Corp for $390 million at $13.25 per share in cash.
  3. The acquisition of ZymoGenetics Inc. (ZGEN) by Bristol – Myers Squibb Co. for $885 million at $9.75 per share in cash. This deal represented a 84% premium to ZGEN’s closing price of $5.30 on the day of the announcement. The premium is even higher when you use the trading range of the last three months when the stock oscillated between $3.84 and $5.51. Time to buy a biotech ETF as a play on Big Pharma’s insatiable appetite for an acquired pipeline?
  4. The acquisition of Microtune (TUNE) by Zoran Corporation (ZRAN) for $84 million at $2.92 per share in cash.

Modified Deals:

  1. Comtech (CMTL) and CPI International (CPII) announced the termination of their merger agreement on September 07, 2010

Top 10 Deals With the Largest Spreads:

Symbol Announced
Date
Acquiring

Company

Closing
Price
Last

Price

Closing
Date
Profit Annu.
Profit
SSE 02/23/2010 Naugatuck Valley Financial Corp (NVSL) $7.25 $6.02 09/30/2010 20.43% 438.68%
TLCR 06/07/2010 Grifols (GRF.MC) $27.50 $22.94 12/31/2010 19.87% 66.54%
PINN 02/24/2010 Investor Group lead by Scotia Waterous (USA) (N/A) $0.34 $0.30 08/21/2010 13.33% 0.00%
AYE 02/11/2010 FirstEnergy (FE) $24.95 $23.26 03/31/2011 7.25% 13.29%
ADAM 08/30/2010 Ebix Inc. (EBIX) $5.82 $5.45 12/31/2010 6.72% 22.51%
ALY 08/12/2010 Seawell (N/A) $4.25 $4.01 12/31/2010 5.99% 20.04%
BGH 06/11/2010 Buckeye Partners LP (BPL) $44.17 $42.47 12/31/2010 4.00% 13.39%
BNE 02/24/2010 RR Donnelley (RRD) $11.50 $11.06 09/30/2010 3.98% 85.42%
VETS 06/02/2010 VCA Antech Inc (WOOF) $0.34 $0.3274 09/30/2010 3.85% 82.63%
Q 04/22/2010 Century Link (CTL) $6.10 $5.89 04/21/2011 3.57% 5.92%

List of all Pending Deals:

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

Profit

+ SSE 02/23/2010 Naugatuck Valley Financial Corp (NVSL) $19.5 million $7.25 $6.02 09/30/2010 20.43% 438.68%
+ TLCR 06/07/2010 Grifols (GRF.MC) $3.4 billion $27.49 $22.94 12/31/2010 19.85% 66.46%
+ PINN 02/24/2010 Investor Group lead by Scotia Waterous (USA) (N/A) $11 million $0.34 $0.30 08/21/2010 13.33% 0.00%
+ AYE 02/11/2010 FirstEnergy (FE) $8.5 billion $24.95 $23.26 03/31/2011 7.25% 13.29%
+ ADAM 08/30/2010 Ebix Inc. (EBIX) $66 million $5.82 $5.45 12/31/2010 6.72% 22.51%
+ ALY 08/12/2010 Seawell (N/A) $890 million $4.25 $4.01 12/31/2010 5.99% 20.04%
+ BGH 06/11/2010 Buckeye Partners LP (BPL) $1.14 billion $44.17 $42.47 12/31/2010 4.00% 13.39%
+ BNE 02/24/2010 RR Donnelley (RRD) $481 million $11.50 $11.06 09/30/2010 3.98% 85.42%
+ VETS 06/02/2010 VCA Antech Inc (WOOF) $41.25 million $0.34 $0.3274 09/30/2010 3.85% 82.63%
+ Q 04/22/2010 Century Link (CTL) $10.6 billion $6.10 $5.89 04/21/2011 3.57% 5.92%
+ PTV 08/17/2010 Reynolds Group Holdings (N/A) $6 billion $33.25 $32.22 12/31/2010 3.20% 10.70%
+ DIVX 06/02/2010 Sonic Solutions (SNIC) $323 million $8.17 $7.93 09/30/2010 2.97% 63.70%
+ CCBP 08/09/2010 F.N.B. Corporation (FNB) $70 million $39.29 $38.3015 12/31/2010 2.59% 8.68%
+ ATAC 07/19/2010 Genco Distribution System Inc. (N/A) $513 million $25.00 $24.37 12/31/2010 2.59% 8.66%
+ SMTB 07/15/2010 People's United Financial Inc. (PBCT) $60 million $3.87 $3.79 12/31/2010 2.20% 7.36%
+ EPE 09/07/2010 Enterprise Products (EPD) $8 billion $56.93 $55.75 12/31/2010 2.11% 7.06%
+ NRGP 08/09/2010 Inergy (NRGY) $2.07 billion $29.70 $29.10 12/31/2010 2.06% 6.89%
+ NAL 08/19/2010 First Niagara Financial Group (FNFG) $1.5 billion $12.86 $12.63 05/15/2011 1.81% 2.71%
+ ME 04/15/2010 Apache (APA) $2.7 billion $23.77 $23.37 09/30/2010 1.73% 37.15%
+ MFE 08/19/2010 Intel Corporation (INTC) $7.68 billion $48.00 $47.24 12/31/2010 1.61% 5.39%
+ ALOY 06/24/2010 ZelnickMedia (N/A) $126.5 million $9.80 $9.65 12/31/2010 1.55% 5.21%
+ PRPX 02/17/2010 L.B. Foster Co. (FSTR) $112 million $11.80 $11.62 12/30/2010 1.55% 5.24%
+ XJT 08/04/2010 SkyWest (SKYW) $133 million $6.75 $6.65 12/31/2010 1.50% 5.04%
+ WAIN 06/29/2010 Eastern Bank (N/A) $163 million $19.00 $18.74 12/31/2010 1.39% 4.65%
+ MIR 04/12/2010 RRI Energy In. (RRI) $1.6 billion $10.63 $10.49 12/31/2010 1.35% 4.51%
+ LSBX 07/15/2010 People's United Financial Inc. (PBCT) $96 million $21.00 $20.73 12/31/2010 1.30% 4.36%
+ OMNI 06/04/2010 Wellspring Capital Management (N/A) $122 million $2.75 $2.72 11/15/2010 1.10% 6.39%
+ BKC 09/02/2010 3G Capital (N/A) $3.26 billion $24.00 $23.77 12/31/2010 0.97% 3.24%
+ PSYS 05/17/2010 Universal Health (N/A) $3.1 billion $33.75 $33.43 12/31/2010 0.96% 3.21%
+ MAM 03/12/2010 Emera Inc (N/A) $75.7 million $45.00 $44.58 12/31/2010 0.94% 3.15%
+ OSTE 08/17/2010 Medtronic (MDT) $123 million $6.50 $6.44 12/31/2010 0.93% 3.12%
+ HEW 07/12/2010 Aon Corp (AON) $4.9 billion $49.64 $49.24 11/15/2010 0.81% 4.70%
+ NTY 07/15/2010 The Carlyle Group (N/A) $3.8 billion $55.00 $54.56 12/31/2010 0.81% 2.70%
+ GLG 05/17/2010 Man Group (N/A) $1.6 billion $4.50 $4.47 09/30/2010 0.67% 14.41%
+ PMACA 06/10/2010 Old Republic International (ORI) $228 million $7.18 $7.13 09/30/2010 0.67% 14.30%
+ ACF 07/22/2010 General Motors Co. (N/A) $3.5 billion $24.50 $24.36 12/31/2010 0.57% 1.92%
+ ADCT 07/13/2010 Tyco Electronics (TEL) $1.24 billion $12.75 $12.68 12/31/2010 0.55% 1.85%
+ AMPH 09/01/2010 ProAssuarance (PRA) $233 million $32.50 $32.35 12/31/2010 0.46% 1.55%
+ ACAP 07/08/2010 The Doctors Company (N/A) $386 million $41.50 $41.33 12/31/2010 0.41% 1.38%
+ PPCO 08/09/2010 Endo Pharmaceuticals (ENDP) $144 million $5.00 $4.98 12/31/2010 0.40% 1.34%
+ RSCR 09/07/2010 Onex Corp (N/A) $390 million $13.25 $13.20 12/31/2010 0.38% 1.27%
+ WEL 04/09/2010 Halliburton Company (HAL) $240 million $3.00 $2.99 09/30/2010 0.33% 7.18%
+ BXC 07/22/2010 Cerberus Capital Management (N/A) $111.1 million $3.40 $3.39 12/31/2010 0.29% 0.99%
+ UNCA 08/13/2010 IBM (IBM) $480 million $21.00 $20.94 12/31/2010 0.29% 0.96%
+ SLRY 09/01/2010 Kenexa Corp. (KNXA) $80 million $4.07 $4.06 12/31/2010 0.25% 0.82%
+ 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% 5.25%
+ DTPI 08/24/2010 PricewaterhouseCoopers (N/A) $378 million $12.50 $12.48 12/31/2010 0.16% 0.54%
+ AEZ 07/28/2010 Hess Corp (HES) $450 million $7.47 $7.46 12/31/2010 0.16% 0.53%
+ MEND 07/12/2010 Johnson & Johnson (JNJ) $480 million $23.40 $23.38 09/30/2010 0.09% 1.84%
+ SWSI 08/09/2010 Nabors Industries (NBR) $900 million $22.12 $22.11 09/30/2010 0.05% 0.97%
+ NYM 07/15/2010 ProSight (N/A) $230 million $25.75 $25.74 12/31/2010 0.04% 0.13%
+ SWWC 03/03/2010 Institutional Investors (N/A) $275 million $11.00 $11.00 09/13/2010 0.00% 0.00%
+ BSMD 05/13/2010 Merit Medical Systems (MMSI) $96 million $4.38 $4.38 09/30/2010 0.00% 0.00%
+ ICXT 08/16/2010 FLIR Systems (FLIR) $274 million $7.55 $7.55 12/31/2010 0.00% 0.00%
+ TUNE 09/08/2010 Zoran Corporation (ZRAN) $84 million $2.92 $2.92 12/31/2010 0.00% 0.00%
+ ZGEN 09/07/2010 Bristol Myers Squibb Company (BMY) $885 million $9.75 $9.76 12/31/2010 -0.10% -0.34%
+ CAL 05/03/2010 United (UAUA) $1.2 billion $21.88 $21.95 12/31/2010 -0.31% -1.04%
+ VRX 06/21/2010 Biovail Corporation (BVF) $3.3 billion $64.59 $64.98 12/31/2010 -0.60% -2.02%
+ TRBN 08/12/2010 Emergent BioSolution (EBS) $96.8 million $4.40 $4.432 12/31/2010 -0.78% -2.60%
+ PZZ 08/16/2010 Leonard Green & Partners (N/A) $363 million $8.50 $8.60 12/31/2010 -1.16% -3.89%
+ TSFG 05/17/2010 TD Bank Financial Group (N/A) $61 million $0.28 $0.285 09/30/2010 -1.75% -37.67%
+ ABII 06/30/2010 Celgene (CELG) $2.9 billion $72.51 $74.77 12/31/2010 -3.02% -10.12%
+ COGT 08/30/2010 3M Co. (MMM) $943 million $10.50 $10.93 12/31/2010 -3.93% -13.17%
+ PTEC 08/17/2010 Marlin Equity Partners (N/A) $139 million $3.85 $4.09 12/31/2010 -5.87% -19.65%
+ PTEC 08/17/2010 Marlin Equity Partners (N/A) $139 million $3.85 $4.09 12/31/2010 -5.87% -19.65%
+ PAR 08/28/2010 Hewlett-Packard Company (HPQ) $2 billion $30.00 $32.92 12/31/2010 -8.87% -29.70%
+ DYN 08/13/2010 Blackstone Group (BX) $4.7 billion $4.50 $5.05 12/31/2010 -10.89% -36.47%
+ DTG 04/26/2010 Hertz (HTZ) $1.3 billion $39.20 $48.01 12/31/2010 -18.35% -61.46%
+ ATBC 05/10/2010 Jacksonville Bancorp (JAXB) N/A $2.30 $3.42 09/30/2010 -32.87% -705.65%
+ CCE 02/25/2010 The Coca-Cola Company (KO) $12.3 billion N/A $30.17 10/01/2010 N/A N/A

Contributing author: Ann Kumar

Market News and Data brought to you by Benzinga APIs
Comments
Loading...
Posted In: Industrial MachineryIndustrials
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!