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Merger activity continues to dwindle with just one new deal announced last week and four deals closing.

The new deal announced last week was the acquisition of ExpressJet Holdings (XJT) by SkyWest (NASDAQ:SKYW) for $6.75 per share in cash. The current spread on the deal is 2.9% or 7.34% annualized if the deal closes by the end of this year. I have generally been happy flying with SkyWest (through their partnership with United) and it is good to see them expand with this acquisition. Despite the fact that I do not invest in airline stocks, SkyWest has been on my watch list for a number of years. The company is currently trading close to its 52 week low, has managed to remain profitable despite a big drop in 2009 revenue and has a EV/EBITDA of 4.54.

Dollar Thrifty (NYSE:DTG) rejected Avis’s offer in favor of Hertz saying that it was unsure that Avis could close the deal. The company would consider any changes that Avis might make to its offer.

The spread on the Qwest (NYSE:Q) – CenturyLink (NYSE:CTL) deal has widened to 6.42% or 9.19% annualized if the deal closes on 4/21/2011 after staying below 6% for over 5 weeks. The difference in dividend yields between the two companies would shave about 1% off returns if one were to short CenturyLink while starting a long position in Qwest.

On Friday, August 06, 2010, Phase Forward Inc. (PFWD) said that a waiting period had passed for the U.S. Department of Justice to object to its $685 million acquisition by Oracle Corp. on antitrust grounds. Completion of the proposed merger remains subject to the satisfaction or waiver of the other closing conditions specified in the merger agreement.

The deals that closed include,

  1. The acquisition of North American Galvanizing & Coatings (NGA) by AZZ Inc. on August 03, 2010
  2. The acquisition of inVentiv Health (VTIV) by Thomas H. Lee Partners on August 04, 2010
  3. The acquisition of Argon ST (STST-OLD) by The Boeing Company (NYSE:BA) on August 05, 2010
  4. The acquisition of Sports Supply Group (RBI) by ONCAP on August 05, 2010
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 $26.73 $22.28 12/31/2010 19.99% 50.67%
Details of Talecris
Expected to close by the end of the year for a closing value of $3.4 billion. On the completion of the merger Grifols will pay $19 in cash and 0.641 newly issued, nonvoting shares for each share of Talecris.
ATBC 05/10/2010 Jacksonville Bancorp (JAXB) N/A $2.37 $2.04 09/30/2010 16.18% 113.55%
Details of Atlantic BancGroup Inc
Expected to close in the third quarter of 2010. If the merger is completed, Atlantic BancGroup shareholders will receive 0.2 shares of Jacksonville Bancorp common stock for each share of Atlantic BancGroup common stock held, plus up to approximately $0.65 per share in cash, subject to the qualifying sale of certain Atlantic BancGroup assets.
EMMS 05/25/2010 JS Acquisition and Alden Global Capital (N/A) $3 billion $2.40 $2.07 09/30/2010 15.94% 111.90%
Details of Emmis Communications Corporatio
Expected to close in the third quarter of 2010 for a closing value of over $3bn. On the completion of the merger, Emmis Communications shareholders will receive $2.40 per share in cash.
SSE 02/23/2010 Naugatuck Valley Financial Corp (NVSL) $19.5 million $7.25 $6.56 08/16/2010 10.52% 548.45%
Details of Southern Connecticut Bancorp In

Expected to close by the third calendar quarter of 2010, for a closing value of $19.5mn @ $7.25/share. The Cash/stock election is subject to proration

AYE 02/11/2010 FirstEnergy (FE) $8.5 billion $25.03 $23.07 03/31/2011 8.48% 13.22%
Details of Allegheny Energy, Inc. Common S
Expected to close by March 31, 2011 for a closing value $8.5bn. It is a stock based transaction @ 0.667 share of FE
Q 04/22/2010 Century Link (CTL) $10.6 billion $6.06 $5.69 04/21/2011 6.42% 9.19%
Details of Qwest Communications Internatio
Expected to close in the first half of 2011for a value of $10.6bn. Under the terms of the agreement, Qwest shareholders will receive 0.1664 CenturyLink shares for each share of Qwest common stock they own at closing.
BGH 06/11/2010 Buckeye Partners LP (BPL) $1.14 billion $46.14 $43.76 12/31/2010 5.44% 13.80%
Details of Buckeye GP Holdings
Expected to close in the fourth quarter of 2010 for a closing value of $1.14 billion. Under the deal, for each Buckeye GP unit, holders will get 0.705 Buckeye Partners units.
ATAC 07/19/2010 Genco Distribution System Inc. (N/A) $513 million $25.00 $24.06 12/31/2010 3.91% 9.90%
Details of ATC Technology

Expected to close by the fourth quarter of 2010 for a closing value of $513 million. On the completion of the merger, ATC shareholders will receive $25 per share in cash.

TTIL 06/09/2010 Teoco Corp. (N/A) $58 million $3.00 $2.91 09/30/2010 3.09% 21.71%
Details of TTI Telecom
Expected to close in the third quarter of 2010 for a closing value of $58 million. On the completion of the merger, TTIL shareholders will receive $3 per share in cash.
VETS 06/02/2010 VCA Antech Inc (WOOF) $41.25 million $0.34 $0.33 09/30/2010 3.03% 21.27%
Details of PET DRx Corp
Expected to close by the third quarter of 2010 for a closing value of $41.25mn. On the completion of the mergerPet DRx shareholders are expected to receive $0.34 – $0.36 per share in cash.
PINN 02/24/2010 Investor Group lead by Scotia Waterous (NYSE:USA) (N/A) $11 million $0.34 $0.3301 08/21/2010 3.00% 91.22%
Details of Pinnacle Gas Resources, Inc.
Expected to close by the second quarter of 2010 for a closing value of $11mn. It is a cash deal @ $0.34 per share
XJT 08/04/2010 SkyWest (SKYW) $133 million $6.75 $6.56 12/31/2010 2.90% 7.34%
Details of Expressjet Holdings

Expected to close in the fourth quarter of 2010, for a closing value of $133 million. On the completion of the merger, Expressjet shareholders will receive $6.75 per share in cash.

ALOY 06/24/2010 ZelnickMedia (N/A) $126.5 million $9.80 $9.53 12/31/2010 2.83% 7.18%
Details of Alloy
Expected to close in the fourth quarter of 2010 for a closing value of $126.5 million. On the completion of the merger, shareholders of Alloy Inc. will receive $9.80 per share in cash.
BNE 02/24/2010 RR Donnelley (RRD) $481 million $11.50 $11.19 09/30/2010 2.77% 19.45%
Details of Bowne & Co., Inc. Common Stock
Expected to close by the second half of 2010 for a closing value of $481mn. It is a cash deal @ $11.50 per share
DIVX 06/02/2010 Sonic Solutions (SNIC) $323 million $8.22 $8.03 09/30/2010 2.32% 16.32%
Details of DivX
Expected to close by the third quarter of 2010 for a cosing value of $323mn. On the completion of the merger, DivX shareholders will receive $3.75 in cash and 0.514 shares of Sonic Solutions common stock for each share of DivX they hold.
ECLP 06/09/2010 Allscripts-Misys Healthcare (MDRX) $1.3 billion $20.22 $19.78 11/15/2010 2.22% 8.29%
Details of Eclipsys Corporation

Expected to close in the next four or six months from June 2010 for a closing value of $1.3 billion. On the completion of the merger, Eclipsys shareholders will receive 1.2 shares of Allscripts.

GLG 05/17/2010 Man Group (N/A) $1.6 billion $4.50 $4.41 09/30/2010 2.04% 14.32%
Details of GLG Partners Inc Common Stock
Expected to close by the third quarter of 2010 for a closing value of approximately $1.6bn. On the completion of the merger, GLG Partners shareholders will receive $4.50 per share in cash.
OMNI 06/04/2010 Wellspring Capital Management (N/A) $122 million $2.75 $2.70 11/15/2010 1.85% 6.90%
Details of OMNI Energy Services Corp.
Expected to close in the second half of 2010 for a closing value of $122mn. On the completion of the merger OMNI Energy Services shareholders will receive $2.75 per share in cash.
LSBX 07/15/2010 People's United Financial Inc. (PBCT) $96 million $21.00 $20.63 12/31/2010 1.79% 4.55%
Details of LSB Corporation
Expected to close in the fourth quarter of 2010 for a closing value of $96 million. On the completion of the merger, LSBX shareholders will receive $21 per share in cash.
PMACA 06/10/2010 Old Republic International (ORI) $228 million $7.14 $7.02 09/30/2010 1.77% 12.45%
Details of PMA Capital

Expected to close in the third quarter of 2010 for a closing value of $228 million. As part of the agreement, Old Republic will issue 0.55 shares of its common stock in exchange for each outstanding common share of PMA.

NTY 07/15/2010 The Carlyle Group (N/A) $3.8 billion $55.00 $54.06 12/31/2010 1.74% 4.41%
Details of NBTY Inc.
Expected to close by the end of 2010 for a closing value of $3.8 billion. On the completion of the merger, NBTY shareholders will receive $55 per share in cash.
PRPX 02/17/2010 L.B. Foster Co. (FSTR) $112 million $11.71 $11.52 08/31/2010 1.65% 27.36%
Details of Portec Rail Products, Inc.
Expected to close by August 31, 2010 for a closing value of $112mn. The cash deal is @ $11.71 per share
WAIN 06/29/2010 Eastern Bank (N/A) $163 million $19.00 $18.70 12/31/2010 1.60% 4.07%
Details of Wainwright Bank & Trust
Expected to close in the fourth quarter of 2010 for a closing value of $163 million. On the completion of the merger, Eastern Bank will pay $19 in cash for each share of Wainwright Bank.
ACF 07/22/2010 General Motors Co. (N/A) $3.5 billion $24.50 $24.13 12/31/2010 1.53% 3.89%
Details of AmeriCredit Corp.

Expected to close in the fourth quarter of 2010, for a closing value of $3.5 billion. On the completion of the merger, ACF shareholders will receive $24.50 per share in cash.

PSYS 05/17/2010 Universal Health (N/A) $3.1 billion $33.75 $33.25 12/31/2010 1.50% 3.81%
Details of Psychiatric Solutions, Inc.
Expected to close by the fourth quarter of 2010 for a closing value of $3.1bn. On the completion of the merger, Psychiatric Solutions shareholders will receive $33.75 per share in cash.
MIR 04/12/2010 RRI Energy In. (RRI) $1.6 billion $11.14 $10.99 12/31/2010 1.38% 3.50%
Details of Mirant Corp Common Stock
Expected to close by the end of the year 2010 for a value of $1.6bn. Mirant Corp. will combine with RRI Energy Inc. in a stock-deal to form GenOn Energy. Mirant stockholders will get about 2.84 RRI common shares for each Mirant share they own.
EFJI 05/17/2010 Francisco Partners (N/A) N/A $1.50 $1.48 09/30/2010 1.35% 9.49%
Details of EFJohnson Technologies, Inc
Expected to close by the third quarter of 2010. On the completion of the merger, EF Johnson Technologies shareholders will receive $1.05 per share in cash. The deal was amended on June 21, 2010 and the acquisition price increased by 42% to $1.50.
WMZ 05/24/2010 Williams Partners L.P. (WPZ) $35.27 $34.82 09/30/2010 1.28% 8.98%
Details of Williams Pipeline Partners LP C

Expected to close in the third quarter of 2010. On the completion of the merger, Williams Pipeline Partners shareholders will receive 0.7584 shares of Williams Partners common stock per share held.

GNA 06/02/2010 Gerdau (GGB) $1.7 billion $11.00 $10.87 08/31/2010 1.20% 19.84%
Details of Gerdau Ameristeel Corporation
Expected to close by August 31, 2010 for a closing value of $1.7 billion. On the completion of the merger Gerdau Ameristeel shareholders will receive $11.00 per share in cash.
HEW 07/12/2010 Aon Corp (AON) $4.9 billion $49.91 $49.35 11/15/2010 1.14% 4.25%
Details of Hewitt Associates
Expected to close by mid-November 2010, Aon Corp plans to acquire Hewitt Associates for $4.9 billion. The deal is a cash plus stock deal worth $50 at the time of announcement. Hewitt shareholders will receive $25.61 in cash and 0.6362 shares of AON.
PFWD 04/16/2010 Oracle Corp. (ORCL) $685 million $17.00 $16.82 08/31/2010 1.07% 17.75%
Details of Phase Forward Incorporated
Expected to close in the middle of the year 2010 for a value of $685mn. Oracle is paying $17 per share in cash.
WEL 04/09/2010 Halliburton Company (HAL) $240 million $3.00 $2.97 09/30/2010 1.01% 7.09%
Details of Boots and Coots, Inc. Common St

Expected to close in the summer of 2010 for a value of $240mn. The $3 cash & stock deal consists of $1.73 in cash and $1.27 in Halliburton stock.

NYM 07/15/2010 ProSight (N/A) $230 million $25.75 $25.52 12/31/2010 0.90% 2.28%
Details of NYMagic
Expected to close in the fourth quarter of 2010 for a closing value of $230 million. On the completion of the merger, NYMagic shareholders will receive $25.75 per share in cash.
MAM 03/12/2010 Emera Inc (N/A) $75.7 million $45.00 $44.60 12/31/2010 0.90% 2.27%
Details of Maine & Maritimes Corporation C
Expected to close by the end of 2010 for a closing value of $75.7 million. The cash deal is @ $45 per share
SWWC 03/03/2010 Institutional Investors (N/A) $275 million $11.00 $10.91 03/31/2011 0.82% 1.29%
Details of Southwest Water Company
Expected to close by 3/31/2011 for a closing value of $275 million. It is a cash deal @ $11.00 per share
ME 04/15/2010 Apache (APA) $2.7 billion $24.15 $23.96 09/30/2010 0.80% 5.65%
Details of Mariner Energy, Inc. Mariner En

Expected to close by the third quarter of 2010 for a value of $2.7bn. Under the cash and stock deal, Mariner stockholders will receive cash of $7.80 and 0.17043 of a share of Apache common stock in exchange for each share of Mariner common stock.

SMTB 07/15/2010 People's United Financial Inc. (PBCT) $60 million $3.94 $3.91 12/31/2010 0.78% 1.98%
Details of Smithtown Bancorp Inc
Expected to close in the fourth quarter of 2010, for a closing value of $60 million. On the completion of the merger, Smithtown Bancorp shareholders will receive 0.1430 shares of People's United common stock and $2.00 in cash.
ACAP 07/08/2010 The Doctors Company (N/A) $386 million $41.50 $41.18 12/31/2010 0.78% 1.97%
Details of American Physicians Capital Inc.
Expected to close in the fourth quarter of 2010 for a closing value of $386 million. On the completion of the merger, American Physicians Capital shareholders will receive $41.50 per share in cash.
QUOT 06/11/2010 LQ Acquisition (N/A) $19 million $4.00 $3.97 09/30/2010 0.76% 5.30%
Details of Life Quotes
Expected to close in the third quarter of 2010 for a closing value of $19 million. On the completion of the merger Life Quotes shareholders will receive $4.00 per share in cash.
ODSY 05/24/2010 Gentiva Health Services (GTIV) $1.0 billion $27.00 $26.81 09/30/2010 0.71% 4.97%
Details of Odyssey Healthcare, Inc.

Expected to close in the third quarter of 2010 for a closing value of $1.0bn. On the completion of the merger, Odyssey HealthCare shareholders will receive $27.00 per share in cash.

MEND 07/12/2010 Johnson & Johnson (JNJ) $480 million $23.40 $23.26 09/30/2010 0.60% 4.22%
Details of Micrus Endovascular
Expected to close in the second half of 2010, JNJ plans to acquire MEND in an all cash deal valued at $480 million. MEND shareholders will receive $23.40 in cash should the deal complete.
RCNI 03/05/2010 ABRY Partners (N/A) $536 million $15.00 $14.92 09/30/2010 0.54% 3.76%
Details of RCN Corp.
Expected to close by the Second half 2010 for a closing value of $536mn. It is a cash deal @ $15.00 per share
HGRD 07/28/2010 an affiliate of the private equity firm Vestar Capital (N/A) $294 million $8.20 $8.16 09/30/2010 0.49% 3.44%
Details of Health Grades Inc.
Expected to close by the third quarter of 2010 for a closing value of $294 million. On the completion of the merger, HGRD shareholders will receive $8.20 per share in cash. Closing the transaction is subject to conditions that include regulatory approval.
BSMD 05/13/2010 Merit Medical Systems (MMSI) $96 million $4.38 $4.36 09/30/2010 0.46% 3.22%
Details of BioSphere Medical, Inc.

Expected to close in the third quarter of 2010 for a closing value of $96mn.If the merger is completed, BioSphere Medical shareholders will receive $4.38 per share in cash.

AEZ 07/28/2010 Hess Corp (HES) $450 million $7.63 $7.60 12/31/2010 0.43% 1.08%
Details of American Oil & Gas Inc.
Expected to close in the fourth quarter of 2010 for a closing value of $450 million. On the completion of the merger, Hess will issue 0.1373 shares of its stock for each outstanding share of American Oil & Gas.
VIRL 06/10/2010 Synopsys (SNPS) $315 million $12.00 $11.96 12/31/2010 0.33% 0.85%
Details of Virage Logic Corp
Expected to close in the fourth quarter of 2010 for a closing value of $315 million. The deal values Virage at $12 per share.
ADCT 07/13/2010 Tyco Electronics (TEL) $1.24 billion $12.75 $12.71 12/31/2010 0.31% 0.80%
Details of ADC Telecommunications Inc
Expected to close in the fourth quarter of 2010, for a closing value of $1.24 billion. On the completion of the merger, ADC Telecommunications shareholders will receive $12.75 per share in cash
CRN 04/19/2010 GeoGroup (GEO) $685 million $28.15 $28.06 09/30/2010 0.30% 2.13%
Details of Cornell Corrections, Inc. Commo
Expected to close in the third quarter of 2010 at an estimated enterprise value of $685 million based on the closing prices of both companies
ATSI 04/29/2010 Medtronic (MDT) $350 million $4.00 $3.99 09/30/2010 0.25% 1.76%
Details of ATS Medical, Inc.

Expected to close by September 30 for a value of $350mn. Medtronic is offering ATS Medical $4 per share

SII 02/19/2010 Schlumberger (SLB) $7.5 billion $43.43 $43.35 09/30/2010 0.18% 1.23%
Details of Smith International, Inc. Commo
Expected to close by the second half of 2010. It is a stock-for-stock merger @ 0.6966 shares of SLB / $42.96 per SII share
SXE 05/07/2010 CGI Group (N/A) $904 million $37.50 $37.48 09/30/2010 0.05% 0.37%
Details of Stanley, Inc. Common Stock
Expected to close during the fall of 2010 for a closing value of $904mn. CGI will pay shareholders $37.50 for each share of Stanley.
TSFG 05/17/2010 TD Bank Financial Group (N/A) $61 million $0.28 $0.28 09/30/2010 0.00% 0.00%
Details of The South Financial Group Inc.
Expected to close by the third quarter of 2010 for a closing value of $61mn. On the completion of the merger, The South Financial Group shareholders will receive either $0.28 in cash or 0.004 shares of TD Bank Financial Group common stock per The South Financial Group common share held.
CPII 05/10/2010 Comtech (CMTL) $472.3 million $13.79 $13.85 09/30/2010 -0.42% -2.96%
Details of CPI International, Inc.

Expected to close in the third quarter of 2010 for a closing alue of $472.3mn. If the merger is completed, CPI International shareholders will receive a combination of $9.00 in cash plus a fraction of Comtech common stock equal to $8.10 divided by the average closing price of Comtech common stock over a specified period of time prior to closing, provided that the fraction shall not be greater than 0.2382 nor less than 0.2132.

VRX 06/21/2010 Biovail Corporation (BVF) $3.3 billion $56.68 $57.11 12/31/2010 -0.75% -1.91%
Details of Valeant Pharmaceuticals
Expected to close by the end of 2010 for a closing value of roughly $3.3 billion. Valeant stockholders will get a one-time special cash dividend of $16.77 per share and 1.7809 shares of Biovail common stock. The combined company will pay an additional $1/share dividend to all stockholders of the new entity.
CAL 05/03/2010 United (UAUA) $1.2 billion $23.44 $23.63 12/31/2010 -0.82% -2.08%
Details of Continental Airlines, Inc. Comm
Expected to close by the end of 2010 for a closing value of approximately $1.2bn. In the merger, Continental shareholders will receive 1.05 shares of United common stock for each Continental common share they own.
ABII 06/30/2010 Celgene (CELG) $2.9 billion $72.83 $75.80 12/31/2010 -3.92% -9.93%
Details of Abraxis Bioscience Inc.
Expected to close in the fourth quarter of 2010 for a closing value of $2.9 billion. Under terms of the deal, shareholders of Abraxis will receive $58 and 0.2617 shares of Celgene for each Abraxis share they own.
BXC 07/22/2010 Cerberus Capital Management (N/A) $111.1 million $3.40 $3.60 12/31/2010 -5.56% -14.08%
Details of BlueLinx Holdings Inc.

Expected to close in the fourth quarter of 2010 for a closing value of $111.1 million. On the completion of the merger, BXC shareholders will receive $3.40 per share in cash.

MCCC 06/01/2010 Chief Executive Rocco Commisso (N/A) $590 million $6.00 $7.20 N/A -16.67% 0.00%
Details of Mediacom Communications Corporation
DTG 04/26/2010 Hertz (HTZ) $1.3 billion $39.34 $48.56 12/31/2010 -18.99% -48.14%
Details of Dollar Thrifty Automotive Group
Expected to close by the end of the year for a value of $1.3 billion. The transaction values Dollar Thrifty stock at approximately $41.00 per share. the $41.00 per share purchase price is comprised of 80% cash consideration and 20% stock consideration. The cash portion will be paid in two components; (1) a $200 million special cash dividend representing approximately $6.88 per share, to be paid by Dollar Thrifty immediately prior to the transaction closing and (2) $25.92 per share to be paid by Hertz at the closing. The stock is at a fixed exchange ratio of 0.6366 per share, based upon a Hertz common stock closing price of $12.88 per share on April 23, 2010.
CCE 02/25/2010 The Coca-Cola Company (KO) $12.3 billion N/A $29.17 10/01/2010 N/A N/A
Details of Coca-Cola Enterprises, Inc. Com
Expected to close by October 1, 2010 for a closing value of $12.3 billion. The deal includes $10 per share + a share in a new bottling company

Disclosure: See author's portfolio holdings here.

Source: Merger Arbitrage Mondays: August 09, 2010