Merger Arbitrage Mondays – November 15, 2010

Merger Activity decreased slightly last week with four new deals being announced and four closing. You can find all the deals listed below in our Merger Arbitrage Tool that automatically updates itself during market hours.

Deal Statistics:

Total Number of Deals Closed in 2010 101
Total Number of Deals That Did Not Complete in 2010 7
Total Number of Pending Deals
Cash Deals 61
Stock Deals 14
Stock & Cash Deals 11
Total Number of Pending Deals 86

New Deals:

  1. The acquisition of Atlas Energy (ATLS) by Chevron Corporation (CVX) for $4.3 billion or $43.34. Shareholders will receive $38.25 in cash and and a pro-rata share of a distribution of over 41 million units of Atlas Pipeline Holdings for each share held. Based on Atlas Pipeline Holdings' closing price on November 8, these units have a value of $5.09 per Atlas Energy share.
  2. The acquisition of VCG Holdings Corporation (VCGH) by the Company's CEO Troy Lowrie and the President Micheal Ocello for $37 million or $2.25 per share in cash.
  3. The acquisition of Optelecom – NKF (OPTC) by the TKH Group for $2.45 per share in cash.
  4. The acquisition of Pennichuck Corporation (PNNW) by the City of Nashua, New Hampshire for $138 million or $29.00 per share in cash.


Deal Updates:

  1. Naugatuck Valley Financial Coropration (NVSL) and Southern Connecticut Bancorp (SSE) mutually agree to terminate merger agreement.
  2. U.S. antitrust regulators might seeks to block the Grifols SA's purchase of Talecris (TLCR). The deal is now expected to close by “early 2011″. We will shortly update the Merger Arbitrage tool to reflect an expected completion date of 3/31/2011.

Closed Deals:

  1. The acquisition of Alloy Inc (ALOY) by ZelnickMedia on November 09, 2010
  2. The acquisition of Mariner Energy (ME) by Apache Corp (APA) on November 10, 2010
  3. The acquisition of Netezza Corporation (NZ) by International Business Machines (IBM) on Novemer 11, 2010
  4. The acquisition of Inergy Holdings (NRGP) by Inergy (NRGY)


Top 10 Deals with largest spreads:

Symbol Announced
Date
Acquiring
Company
Closing
Price
Last
Price
Closing
Date
Profit Annu.
Profit
TLCR 06/07/2010 Grifols (GRF.MC) $27.67 $23.07 12/31/2010 19.95% 53.54%
DTG 04/26/2010 Avis (CAR) $54.68 $46.34 12/31/2010 18.00% 142.84%
CRXL 10/06/2010 Johnson & Johnson (JNJ) $34.40 $31.71 03/31/2011 8.48% 22.77%
MROE 10/06/2010 Old National Bancorp (ONB) $12.70 $11.805 03/31/2011 7.57% 20.32%
PVG 09/21/2010 Penn Virginia Resource Partners (PVR) $27.46 $26.01 12/31/2010 5.57% 44.22%
PNNW 11/12/2010 City of Nashua (N/A) $29.00 $27.52 09/30/2011 5.38% 6.15%
ATBC 05/10/2010 Jacksonville Bancorp (JAXB) $2.22 $2.1101 12/31/2010 5.21% 41.33%
MAJCD 09/21/2010 Bayside Capital Partners (N/A) $4.50 $4.3001 03/31/2011 4.65% 12.48%
AAI 09/27/2010 Southwest Airlines (LUV) $7.75 $7.41 03/31/2011 4.59% 12.31%
OICO 09/14/2010 ITT Corporation (ITT) $12.50 $11.97 12/31/2010 4.43% 35.13%

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 $27.72 $23.00 03/31/2011 20.53% 55.10%
+ DTG 04/26/2010 Avis (CAR) $1.56 billion $54.87 $46.36 12/31/2010 18.35% 145.57%
+ MROE 10/06/2010 Old National Bancorp (ONB) $83.5 million $12.80 $11.82 03/31/2011 8.30% 22.27%
+ CRXL 10/06/2010 Johnson & Johnson (JNJ) $2.41 billion $34.40 $32.08 03/31/2011 7.23% 19.41%
+ PVG 09/21/2010 Penn Virginia Resource Partners (PVR) $954 million $27.48 $25.92 12/31/2010 6.02% 47.73%
+ PNNW 11/12/2010 City of Nashua (N/A) $138 million $29.00 $27.39 09/30/2011 5.88% 6.73%
+ ATBC 05/10/2010 Jacksonville Bancorp (JAXB) N/A $2.22 $2.1101 12/31/2010 5.21% 41.33%
+ MAJCD 09/21/2010 Bayside Capital Partners (N/A) $7.8 million $4.50 $4.3001 03/31/2011 4.65% 12.48%
+ SHMR 10/15/2010 Essilor (N/A) $130 million $14.50 $13.87 06/30/2011 4.54% 7.30%
+ AAI 09/27/2010 Southwest Airlines (LUV) $1.4 billion $7.75 $7.42 03/31/2011 4.45% 11.94%
+ OICO 09/14/2010 ITT Corporation (ITT) $29 million $12.50 $11.97 12/31/2010 4.43% 35.13%
+ ADAM 08/30/2010 Ebix Inc. (EBIX) $66 million $6.52 $6.26 12/31/2010 4.18% 33.19%
+ VCGH 11/10/2010 Company's chairman of the Board, CEO, President and COO (N/A) $37 million $2.25 $2.16 03/31/2011 4.17% 11.18%
+ TCM 11/01/2010 Hanmax Investment Limited (N/A) N/A $4.50 $4.36 03/31/2011 3.21% 8.62%
+ Q 04/22/2010 Century Link (CTL) $10.6 billion $7.02 $6.81 04/21/2011 3.11% 7.24%
+ SMTB 07/15/2010 People's United Financial Inc. (PBCT) $60 million $3.82 $3.7119 12/31/2010 2.81% 22.27%
+ NAL 08/19/2010 First Niagara Financial Group (FNFG) $1.5 billion $13.72 $13.3737 05/15/2011 2.57% 5.18%
+ BUCY 11/15/2010 Caterpillar Inc (CAT) $8.6 billion $92.00 $89.73 06/30/2011 2.53% 4.07%
+ OPTC 11/11/2010 TKH Group (N/A) N/A $2.45 $2.39 03/31/2011 2.51% 6.74%
+ ROME 10/12/2010 Berkshire Hills Bancorp (BHLB) $74 million $11.18 $10.92 03/31/2011 2.38% 6.40%
+ AYE 02/11/2010 FirstEnergy (FE) $8.5 billion $23.79 $23.26 03/31/2011 2.26% 6.06%
+ CCBP 08/09/2010 F.N.B. Corporation (FNB) $70 million $41.82 $40.91 12/31/2010 2.21% 17.57%
+ PRPX 02/17/2010 L.B. Foster Co. (FSTR) $112 million $11.80 $11.56 12/30/2010 2.08% 16.84%
+ BJGP 10/28/2010 Sanofi – aventis (N/A) $520.6 million $10.00 $9.80 03/31/2011 2.04% 5.48%
+ SVR 10/28/2010 Carlyle (N/A) $2.6 billion $31.00 $30.39 03/31/2011 2.01% 5.39%
+ ID 09/20/2010 Safran (N/A) $1.1 billion $12.00 $11.80 03/31/2011 1.69% 4.55%
+ OCNW 09/16/2010 Calix Inc. (CALX) $171 million $7.47 $7.3503 12/31/2010 1.66% 13.18%
+ MFE 08/19/2010 Intel Corporation (INTC) $7.68 billion $48.00 $47.32 06/30/2011 1.44% 2.31%
+ FMR 10/28/2010 Fairfax Financial Holdings (FRFHF.PK) $294 million $16.50 $16.29 03/31/2011 1.29% 3.46%
+ BGH 06/11/2010 Buckeye Partners LP (BPL) $1.14 billion $48.14 $47.59 12/31/2010 1.17% 9.24%
+ TTES 10/06/2010 Robbins & Myers Inc. (RBN) $422 million $34.35 $33.994 12/31/2010 1.05% 8.31%
+ TUNE 09/08/2010 Zoran Corporation (ZRAN) $84 million $2.92 $2.89 12/31/2010 1.04% 8.24%
+ NCOC 09/28/2010 Ranger Energy Investments (N/A) $8.6 million $1.00 $0.99 12/15/2010 1.01% 12.29%
+ ROAC 10/18/2010 Swenson Granite Co. (N/A) $39 million $5.25 $5.20 03/31/2011 0.96% 2.58%
+ NHWK 09/27/2010 Virtual Radiologic (N/A) $170 million $6.50 $6.44 03/31/2011 0.93% 2.50%
+ CSCX 10/19/2010 Opto Circuits (N/A) N/A $2.30 $2.28 12/31/2010 0.88% 6.96%
+ ULCM 10/12/2010 affiliates of Platinum Equity (N/A) N/A $8.07 $8.00 12/31/2010 0.88% 6.94%
+ LSBX 07/15/2010 People's United Financial Inc. (PBCT) $96 million $21.00 $20.83 12/31/2010 0.82% 6.48%
+ CFS 11/02/2010 affiliate of ABRY Partners (N/A) $84.8 million $2.50 $2.48 12/31/2010 0.81% 6.40%
+ ARTG 11/02/2010 Oracle (ORCL) $1 billion $6.00 $5.955 03/31/2011 0.76% 2.03%
+ AEZ 07/28/2010 Hess Corp (HES) $450 million $9.59 $9.52 12/31/2010 0.75% 5.98%
+ TEAM 11/02/2010 fanini International Holdings Ltd for $93.4 million (N/A) $93.4 million $8.35 $8.29 12/31/2010 0.72% 5.74%
+ ACV 09/27/2010 Unilever PLC (N/A) $3.7 billion $37.50 $37.235 12/31/2010 0.71% 5.65%
+ PZZ 08/16/2010 Leonard Green & Partners (N/A) $363 million $8.50 $8.44 12/31/2010 0.71% 5.64%
+ BNE 02/23/2010 RR Donnelley (RRD) $481 million $11.50 $11.42 12/31/2010 0.70% 5.56%
+ DDMX 10/01/2010 Greenbriar Equity Group (N/A) $210 million $21.25 $21.105 02/15/2011 0.69% 2.73%
+ KG 10/12/2010 Pfizer Inc. (PFE) $3.6 billion $14.25 $14.155 12/31/2010 0.67% 5.33%
+ MAM 03/12/2010 Emera Inc (N/A) $75.7 million $45.00 $44.71 12/31/2010 0.65% 5.15%
+ ADCT 07/13/2010 Tyco Electronics (TEL) $1.24 billion $12.75 $12.6701 12/31/2010 0.63% 5.00%
+ NUHC 09/20/2010 Arrow Electronics (ARW) $130 million $7.00 $6.96 12/31/2010 0.57% 4.56%
+ STU 09/17/2010 Discover Financial Services (N/A) N/A $30.00 $29.83 12/31/2010 0.57% 4.52%
+ GIW 10/25/2010 Community Bank System (CBU) $101.8 million $9.50 $9.45 02/15/2011 0.53% 2.10%
+ WAIN 06/29/2010 Eastern Bank (N/A) $163 million $19.00 $18.908 12/31/2010 0.49% 3.86%
+ INET 09/20/2010 an affiliate of Hellman & Friedman Capital Partners (N/A) $640 million $13.35 $13.29 12/31/2010 0.45% 3.58%
+ EPE 09/07/2010 Enterprise Products (EPD) $8 billion $65.09 $64.85 12/31/2010 0.36% 2.88%
+ ACTI 10/11/2010 Assa Abloy (N/A) $162 million $3.25 $3.24 12/31/2010 0.31% 2.45%
+ CLRT 10/22/2010 GE Healthcare (GE) $580 million $5.00 $4.985 01/31/2011 0.30% 1.43%
+ NYM 07/15/2010 ProSight (N/A) $230 million $25.75 $25.68 12/31/2010 0.27% 2.16%
+ HWK 10/15/2010 Carlisle (CSL) $413 million $50.00 $49.87 12/31/2010 0.26% 2.07%
+ CLU 09/16/2010 Clearwater Paper Corporation (CLW) $247 million $12.00 $11.97 12/31/2010 0.25% 1.99%
+ KEI 09/28/2010 Danaher Corporation (DHR) $340 million $21.60 $21.55 12/31/2010 0.23% 1.84%
+ AMPH 09/01/2010 ProAssuarance (PRA) $233 million $32.50 $32.425 12/31/2010 0.23% 1.84%
+ THMD 10/05/2010 Irving Place Capital (N/A) $422 million $15.00 $14.97 12/31/2010 0.20% 1.59%
+ GYMB 10/11/2010 Bain Capital (N/A) $1.8 billion $65.40 $65.271 12/31/2010 0.20% 1.57%
+ PSYS 05/17/2010 Universal Health (N/A) $3.1 billion $33.75 $33.69 12/31/2010 0.18% 1.41%
+ XJT 08/04/2010 SkyWest (SKYW) $133 million $6.75 $6.74 12/31/2010 0.15% 1.18%
+ COGT 08/30/2010 3M Co. (MMM) $943 million $10.50 $10.49 12/31/2010 0.10% 0.76%
+ PTV 08/17/2010 Reynolds Group Holdings (N/A) $6 billion $33.25 $33.22 12/31/2010 0.09% 0.72%
+ RSCR 09/07/2010 Onex Corp (N/A) $390 million $13.25 $13.24 12/31/2010 0.08% 0.60%
+ OSTE 08/17/2010 Medtronic (MDT) $123 million $6.50 $6.50 12/31/2010 0.00% 0.00%
+ AGAM 10/18/2010 St. Jude Medical (STJ) $1.04 billion $20.80 $20.80 12/31/2010 0.00% 0.00%
+ MIR 04/12/2010 RRI Energy In. (RRI) $1.6 billion $10.66 $10.68 12/31/2010 -0.19% -1.52%
+ ACLI 10/18/2010 Affiliates of Platinum Equity (N/A) $777 million $33.00 $33.32 12/31/2010 -0.96% -7.62%
+ NST 10/18/2010 Northeast Utilities (NU) $4.17 billion $41.37 $41.88 09/30/2011 -1.22% -1.40%
+ CTV 10/25/2010 Carlyle (N/A) $3 billion $31.50 $32.00 03/31/2011 -1.56% -4.19%
+ ATLS 11/09/2010 Chevron Coproation (CVX) $4.3 billion $43.34 $44.06 03/31/2011 -1.63% -4.39%
+ RAE 09/20/2010 Battery Ventures (N/A) $95 million $1.60 $1.63 12/31/2010 -1.84% -14.60%
+ WL 11/01/2010 M & T Bank Corporation (MTB) $351 million $4.19 $4.32 06/30/2011 -2.96% -4.77%
+ DVD 09/27/2010 )–Dover Downs Gaming & Entertainment Inc (DDE) N/A $1.72 $1.80 12/31/2010 -4.53% -35.96%
+ DYN 08/13/2010 Blackstone Group (BX) $4.7 billion $4.50 $4.77 12/31/2010 -5.66% -44.91%
+ CGC 10/01/2010 Gammon Gold (GRS) $288 million $4.15 $4.40 12/31/2010 -5.69% -45.12%
+ PTEC 08/17/2010 Marlin Equity Partners (N/A) $139 million $3.85 $4.18 12/31/2010 -7.89% -62.64%
+ PTEC 08/17/2010 Marlin Equity Partners (N/A) $139 million $3.85 $4.18 12/31/2010 -7.89% -62.64%
+ CADE 10/06/2010 Community Bancorp LLC (N/A) $38 million $2.25 $2.45 03/31/2011 -8.31% -22.29%
+ HBE 10/06/2010 Kratos Defense & Security Solutions (KTOS) $45 million $7.00 $8.23 12/31/2010 -14.95% -118.59%
+ OTIX 09/13/2010 William Demant (N/A) $50 million $8.60 $10.95 12/31/2010 -21.46% -170.29%
+ ALY 08/12/2010 Seawell (N/A) $890 million $4.25 $5.80 12/31/2010 -26.72% -212.05%

Voluntary Disclosure: I have a long position in AAI and a short position in LUV. I also have a long position in FNFG.

Contributing Author: Ann Kumar

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