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Merger activity increased last week with six new deals announced and four deals closing.

I received an email over the weekend from someone who was new to the Merger Arbitrage strategy and wanted to learn more about it. I pointed him to my article on the Pfizer – Wyeth deal, which provides an introduction to the strategy for the uninitiated. I would also recommend reading the article John Paulson On The “Risk” In Risk Arbitrage by the folks at market folly.

Deal Statistics:

Total Number of Deals Closed in 2011 43
Total Number of Deals Not Completed in 2011 1
Total Number of Pending Deals
Cash Deals 46
Stock Deals 21
Stock & Cash Deals 13
Special Conditions 1
Total Number of Pending Deals 81

New Deals:

  1. The acquisition of Verigy (VRGY) by Advantest (ATE) for $1.1 billion or $15.00 per share in cash. Verigy announced the Advantest offer in December but the deal was finalized last week.
  2. The acquisition of Rural/Metro Corporation (RURL) by Warburg Pincus for $17.25 per share in cash. I had traded Rural a couple of times over the last year based on insider purchases by the CEO as you can see here.
  3. The acquisition of GSI Commerce (GSIC) by eBay Inc. (EBAY) for $2.4 billion or $29.25 per share in cash
  4. The acquisition of Spectrum control (SPEC) by API Technologies for $270 million or $20.00 per share in cash
  5. The acquisition of Technology Research (TRCI) by Coleman Cable (CCIX) for $51.5 million or $7.20 per share in cash
  6. The acquisition of GS Financial Corp (GSLA) by Home Bancorp (HBCP) for $26.2 million or $21.00 per share in cash

Deal Updates:

  1. Mentor Graphics (MENT) board rejects Icahn’s bid, says strategic plan is better for shareholders.
  2. On April 3, 2011 RAE Systems announced a revised higher offer of $1.88 per share by Vector Capital, a 7.4% increase from the previous offer of $1.75 per share. The revised offer was precipitated as a result of a competing offer of $1.90 per share by Battery Ventures, which was not determined to be a “superior offer” by the board.
  3. The Nasdaq (NDAQ) and ICE have made a joint offer for NYSE Euronext (NYX) that was worth $43 as of Friday’s close. Since NYX has not officially called off its merger with Deutsche Börse, the table below has not been updated to reflect the Nasdaq offer.

Closed Deals:

  1. The acquisition of Rome Bancorp (NASDAQ:ROME) by Berkshire Hills Corporation (BHLB) on April 01, 2011
  2. The acquisition of Mercer Insurance Group (NASDAQ:MIGP) by United Fire & Casualty Company on March 28, 2011
  3. The acquisition of Herley Industries (NASDAQ:HRLY) by Kratos Defense & Security Solutions (KTOS) on March 31, 2011
  4. The acquisition of Qwest (NYSE:Q) by CenturyLink (CTL) on April 1, 2011.

Top 10 Deals With Largest Spreads:

Symbol Announced

Date

Acquiring

Company

Closing

Price

Last

Price

Closing

Date

Profit Annu.

Profit

TAM 01/19/2011 LAN Airlines S.A. (LFL) $23.61 $20.29 12/31/2011

16.35%

22.02%
TLCR 06/07/2010 Grifols (GRF.MC) $30.52 $26.94 06/30/2011 13.27% 55.69%
CASB 03/04/2011 Opus Bank (N/A) $0.45 $0.42 06/30/2011

7.14%

29.97%
DNBK 01/20/2011 People's United Financial Inc. (PBCT) $23.00 $21.49 06/30/2011 7.03% 29.48%
RAE 01/18/2011 Vector Capital (N/A) $1.88 $1.76 06/30/2011 6.82% 28.61%
TGE 03/21/2011 Dawson Geophysical Company (DWSN) $8.41 $7.87 08/15/2011 6.80% 18.67%
VRGY 03/28/2011 Advantest (ATE) $15.00 $14.08 12/31/2069 6.53% 0.11%
SHMR 10/15/2010 Essilor (N/A) $14.50 $13.71 06/30/2011 5.76% 24.17%
HYC 11/17/2010 Verifone Systems (PAY) $12.55 $11.97 09/30/2011 4.82% 9.82%
AAI 09/27/2010 Southwest Airlines (LUV) $7.75 $7.46 06/30/2011

3.89%

16.31%

List of All Pending Deals:

Symbol Announced

Date

Acquiring

Company

Deal

Type

Closing

Value

Closing

Price

Last

Price

Volume Closing

Date

Profit Annu.

Profit

TAM 01/19/2011 LAN Airlines S.A. (LFL) All Stock N/A $23.61 $20.29 490,133 12/31/2011

16.35%

22.02%
Details of TAM S.A.

Completion of this transaction is expected to take between six to nine months. On the completion of merger TAM shareholders will receive 0.90 shares in LAN for each TAM share they hold. Shares of LAN Airlines SA of Chile and Brazilian carrier TAM SA fell sharply Monday, January 31, 2011, as investors reacted to the Chilean antitrust court's move late Friday to suspend their proposed merger.

Update March 18, 2011: Chile's LAN Airlines (NYSE:LFL) said a regulatory investigation into complaints about the merger could take between 6 to 9 months and the merger will most likely not complete before the fourth quarter. We have updated the closing date to 12/31/2011.

TLCR 06/07/2010 Grifols (GRF.MC) Cash Plus Stock $3.4 billion $30.52 $26.94 571,882 06/30/2011 13.27% 55.69%
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.

Update Nov 04, 2010: The ratio was increased to 0.6485 on November 4, 2010.

Update Nov 15, 2010: U.S. antitrust regulators might seek to block Grifols’s purchase of Talecris. The expected completion date has been updated to 3/31/2011.

Update March 04, 2011:Grifols and Talecris Announce the Outside Date of Their Merger Agreement has been Extended to June 30, 2011

CASB 03/04/2011 Opus Bank (N/A) All Cash N/A $0.45 $0.42 13,100 06/30/2011

7.14%

29.97%
Details of Cascade Financial Corp

Expected to close in the latter part of the second quarter of 2011. Upon completion of the merger, Cascade Financial shareholders will receive approximately $0.45 per share in cash.

Opus Bank will pay approximately $16.25 million to retire Cascade Financial's $39 million in preferred stock and associated warrants issued to the United States Department of the Treasury under the Treasury's Capital Purchase Program, and $5.5 million in cash to the holders of Cascade Financial's common stock.

DNBK 01/20/2011 People's United Financial Inc. (PBCT) All Cash $493 million $23.00 $21.49 19,828 06/30/2011 7.03% 29.48%
Details of Danvers Bancorp Inc.

Expected to close in second quarter of 2011 for $493 million. On the completion of merger. Under the terms of the definitive agreement, which has been approved by both companies' boards of directors, Danvers Bancorp shareholders may elect to receive either $23.00 in cash, or 1.624 shares of People's United Financial stock for each Danvers Bancorp share, subject to customary pro ration provisions, whereby 55% of Danvers Bancorp shares will be exchanged for stock and 45% for cash.

RAE 01/18/2011 Vector Capital (N/A) All Cash N/A $1.88 $1.76 N/A 06/30/2011 6.82% 28.61%
Details of RAE Systems Inc.

Expected to close in second quarter of 2011. On the completion of merger RAE Systems shareholders will receive $1.75 per share in cash. RAE also announced that, concurrent with entering into the Vector Agreement, RAE terminated its previously announced merger agreement with affiliates of Battery Ventures under the terms of the Prior Agreement, and paid a termination fee of $3.39 million to affiliates of Battery Ventures.

Update April 3, 2011: RAE Systems announced a revised higher offer of $1.88 per share by Vector Capital, a 7.4% increase from the previous offer of $1.75 per share. The revised offer was precipitated as a result of a competing offer of $1.90 per share by Battery Ventures, which was not determined to be a “superior offer” by the board.

TGE 03/21/2011 Dawson Geophysical Company (DWSN) All Stock $157 million $8.41 $7.87 202,425 08/15/2011 6.80% 18.67%
Details of TGC Industries

Expected to close by late second quarter or early third quarter of 2011 for a closing value of $157 million in an all-stock deal.

Pursuant to the terms of the merger agreement, at the effective time of the merger, TGC shareholders will receive 0.188 shares of Dawson stock for every one share of TGC stock, provided that the average of the volume weighted average price of Dawson common stock on the NASDAQ during the ten consecutive trading days ending on the second business day prior to the date of the shareholders’ meetings of Dawson and TGC to be called for the purpose of approving the transaction is equal to or greater than $32.54 but less than or equal to $52.54. In the event that the average of the volume weighted average price of Dawson’s common stock is outside of that range, then the parties, at their respective option, shall be entitled to terminate the transaction following good faith negotiations to determine a modified, mutually acceptable exchange ratio.

VRGY 03/28/2011 Advantest (ATE) All Cash $1.1 billion $15.00 $14.08 824,066 12/31/2069 6.53% 0.11%
Details of Verigy

Expected to close for a closing value of $1.1 billion. Upon completion of the merger, Verigy shareholders will receive $15.00 per share in cash.

SHMR 10/15/2010 Essilor (N/A) All Cash $130 million $14.50 $13.71 6,024 06/30/2011 5.76% 24.17%
Details of Shamir Optical Industry

Expected to close by the second quarter of 2011 for a closing value of $130 million. On the completion of the merger, Shamir Optical Industry shareholders will receive $14.50 per share in cash.

HYC 11/17/2010 Verifone Systems (PAY) All Stock $485 million $12.55 $11.97 969,002 09/30/2011 4.82% 9.82%
Details of Hypercom Corporation

Expected to close in the second half of 2011 for a closing value of $485 million in an all stock deal. On the completion of the merger, Hypercom shareholders will receive 0.23 shares of VeriFone stock for each Hypercom share they own.

AAI 09/27/2010 Southwest Airlines (LUV) Cash Plus Stock $1.4 billion $7.75 $7.46 2,890,901 06/30/2011

3.89%

16.31%
Details of AirTran Holdings

Expected to close in the first quarter of 2011 for a closing value of $1.4 billion. On the completion of the merger, AirTran Holdings Shareholders will receive $3.75 per share in cash and 0.321 share of Southwest stock for each share of AirTran held. Update Nov 2, 2010: The ratio of Southwest shares issued changes based on the price of Southwest's stock and the deal value also varies from $7.25 to $7.75. Specifically as stated in the press release,

“The number of shares to be issued by Southwest Airlines is subject to adjustment if the average of Southwest Airlines closing prices for the 20 trading days ending three trading days prior to closing is below $10.90 or above $12.46. This adjustment mechanism is intended to provide at least $7.25 in value and up to $7.75 in value per share of AirTran common stock. If the average closing price noted above exceeds $12.46, the value will be $7.75 with fewer shares of Southwest common stock issued. If the average closing price noted above is less than $10.90, the value will be $7.25 with additional shares of Southwest common stock issued. Additionally, Southwest Airlines has the option of substituting cash in lieu of issuing incremental shares if the average closing stock price is less than $10.90.”

Update(s)

March 23, 2011: AirTran Stockholders Approve Southwest Merger which is currently expected to close in the second quarter of 2011

SVLF 02/03/2011 Cerberus Capital Management (N/A) All Cash $94 million $2.50 $2.41 90,000 04/15/2011 3.73% 123.92%
Details of Silverleaf Resorts Inc.

Expected to close by April 14, 2010 for a closing value of $94 million. On the completion of the merger, Silverleaf Resorts shareholders will receive $2.50 per share in cash.

MEE 01/29/2011 Alpha Natural Resources, Inc. (ANR) Cash Plus Stock $8.5 billion $71.77 $69.26 1,693,923 06/30/2011 3.62% 15.18%
Details of Massey Energy Co.

The deal is expected to close in mid-2011 for $8.5 billion. Under the terms of the deal, Massey stockholders will receive 1.025 shares of Alpha common stock and $10.00 in cash for each share they own.

NGAS 12/27/2010 Magnum Hunter Resources Corp. (MHR) All Stock $98 million $0.72 $0.70 859,532 06/30/2011

3.45%

14.49%
Details of NGAS Resources Inc.

Expected to close by the end of this year or the first quarter of 2011 for a closing value of $98 million. On the completion of the merger, Monroe Bancorp shareholders Monroe shareholders will receive 0.0846 shares of Magnum Hunter Resources Corp. for every share held.

LEGC 12/21/2010 Berkshire Hills Bancorp (BHLB) Cash Plus Stock $108 million $13.43 $13.02 78,368 06/30/2011 3.18% 13.34%
Details of Legacy Bancorp

Expected to close in the second quarter of 2011 for a closing value of $108 million. On the completion of the merger, Legacy Bancorp shareholders will receive 0.56385 Berkshire common shares plus $1.30 in cash in a cash plus stock deal.

PGN 01/10/2011 Duke Energy Corporation (DUK) All Stock $13.7 billion $48.12 $46.73 3,278,198 12/31/2011 2.98% 4.01%
Details of Progress Energy Inc.

Progress Energy's shareholders will receive 2.6125 shares of common stock of Duke Energy in exchange for each share of Progress Energy common stock. Based on Duke Energy's closing share price on Jan. 7, 2011, Progress Energy shareholders would receive a value of $46.48 per share, or $13.7 billion in total equity value.

GSLA 03/30/2011 Home Bancorp (HBCP) All Cash $26.2 million $21.00 $20.43 54,790 09/30/2011 2.79% 5.69%
Details of GS Financial Corp

Expected to close in the third quarter of 2011 for a closing value of $26.2 million. Upon completion of the merger, GS Financial Corp shareholders will receive $21.00 per share in cash.

CLFC 12/09/2010 Nara Bancorp Inc. (NARA) All Stock $285.7 million $7.64 $7.44 99,067 09/30/2011 2.74% 5.59%
Details of Center Financial Corporation

Expected to close in the third quarter of 2011 for a closing value of $285.7 million. On the completion of the merger, Center Financial shareholders will receive 0.7804 of a share of Nara Bancorp common stock in exchange for each share of Center Financial common stock held.

NOVL 11/21/2010 Attachment Corporation (N/A) All Cash $2.2 billion $6.10 $5.97 2,065,422 04/30/2011 2.18% 30.57%
Details of Novell Inc.

Expected to close in the first quarter of 2011 for a closing value of $2.2 billion. On the completion of the merger, Novell shareholders will receive $6.10 per share in cash.

Update: Feb 17, 2011 – Novell and CPTN received a request for additional information from the Antitrust Division of the United States Department of Justice regarding the patent sale. The requests have the effect of extending the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 until 30 days after both parties have substantially complied with the requests, unless the waiting period is earlier terminated. Novell is in the process of gathering information to respond to this request and is continuing to cooperate fully with the Department of Justice in connection with its review. Novell continues to work toward completing the merger as quickly as possible and currently anticipates that the closing of the merger will occur following the completion of the waiting period and the satisfaction of other closing conditions.

PNNW 11/12/2010 City of Nashua (N/A) All Cash $138 million $29.00 $28.40 1,200 09/30/2011 2.11% 4.31%
Details of Pennichuk Corporation

Expected to close in the third quarter of 2011 for a closing value of $138 million. On the completion of the merger, Pennichuck shareholders will receive $29.00 per share in cash.

MI 12/17/2010 BMO Financial Group (BMO) All Stock $4.1 billion $8.30 $8.14 3,145,073 07/31/2011 1.95% 6.03%
Details of Marshall & Ilsley Corporation

Expected to close before the end of July 2011 for a closing value of $4.1 billion. On the completion of the merger, Marshall and Ilsley shareholders will receive 0.1257 shares of Bank of Montreal per share held.

GAS 12/07/2010 AGL Resources Inc. (AGL) Cash Plus Stock $2.4 billion $54.84 $53.80 206,312 09/30/2011 1.93% 3.93%
Details of Nicor Inc.

Expected to close in the third quarter of 2011 for a closing value of $2.4 billion. On the completion of the merger, Nicor shareholders will receive $21.20 in cash and 0.8382 of an AGL Resources share for each Nicor share held.

ID 09/20/2010 Safran (N/A) All Cash $1.1 billion $12.00 $11.78 1,498,607 05/15/2011 1.87% 16.63%
Details of L-1 Identity Solutions Inc

Expected to close in the first quarter of 2011 for a closing value of $1.1 billion. On the completion of the merger, ID shareholders will receive $12 per share in cash.

CRXL 10/06/2010 Johnson & Johnson (JNJ) All Cash $2.41 billion $35.22 $34.60 N/A 04/12/2011 1.78% 81.33%
Details of Crucell NV

Expected to close in the first quarter of 2011 for a closing value of $2.41 billion. On the completion of the merger Crucell NV shareholders will receive Euro 24.75 per share in cash (approximately $34 at the time of announcement).

Update(s)

March 15, 2011: Crucell intends to delist ordinary shares on NYSE Euronext. The termination of the listing of ordinary shares will occur on April 12, 2011

HUGH 02/14/2011 EchoStar Corp (SATS) All Cash $2 billion $60.70 $59.65 61,726 12/31/2011 1.76% 2.37%
Details of Hughes Communications

Expected to close later this year for a closing value of $2 billion. On the completion of the merger, Hughes Communications shareholders will receive $60.70 per share in cash.

SPEC 03/28/2011 API Technologies (N/A) All Cash $270 million $20.00 $19.68 196,630 08/15/2011

1.63%

4.46%
Details of Spectrum Control

Expected to close in the third quarter of 2011 for a closing value of $270 million. Upon completion of the merger, Spectrum Control shareholders will receive $20.00 per share in cash.

ACL 12/15/2010 Novartis (NVS) All Cash $12.9 billion $168.00 $165.46 1,385,461 06/30/2011 1.54% 6.44%
Details of Alcon Inc.

Expected to close in the first half of 2011 for a closing value of $12.9 billion. On the completion of the merger, Alcon Inc. shareholders will receive $168 per share in cash. The exact exchange ratio and cash contingent value amount will be calculated based upon formulas set forth in the merger agreement.

ASGR 03/03/2011 Valit?s Health Services, Inc. (N/A) All Cash $250 million $26.00 $25.63 149,648 06/30/2011 1.44% 6.06%
Details of America Service Group

Expected to close in the second quarter of 2011 for a closing value of $250 million. Upon completion of the merger, America Service Group shareholders will receive $26.00 per share in cash.

DEP 02/23/2011 Enterprise Products Partners (EPD) All Stock N/A $41.23 $40.65 42,416 12/31/2069 1.44% 0.02%
Details of Duncan Energy Partners

Upon completion of the merger, Duncan Energy Partners shareholders will receive 0.9545 Enterprise common units for each issued and outstanding publicly-held Duncan Energy Partners common unit.

OXPS 03/21/2011 Charles Schwab Corp. (SCHW) All Stock $1 billion $18.88 $18.62 1,318,679 09/30/2011 1.40% 2.85%
Details of optionsXpress Holdings

Expected to close in the third quarter of 2011 for a closing value of $1 billion in an all-stock deal. Upon completion of the merger, optionsXpress stockholders will receive 1.02 shares of Schwab stock for each share of optionsXpress stock.

VCGH 11/10/2010 Company's chairman of the Board, CEO, President and COO (N/A) All Cash $37 million $2.25 $2.22 1,300 04/30/2011 1.35% 18.97%
Details of VCG Holding Corporation

Expected to close in the first quarter of 2011 for a closing value of $37 million. On the completion of the merger, VCG Holdings shareholders will receive $2.25 per share in cash.

LAB 02/17/2011 Cowen Group (COWN) All Stock $192.8 million $4.02 $3.97 245,372 07/31/2011 1.31% 4.05%
Details of LaBranche & Co. Inc.

Expected to close by the end of the second quarter or beginning of the third quarter of 2011 for a closing value of $192.8 million in an all stock deal. On the completion of the merger LaBranche shareholders will receive a fixed ratio of 0.9980 of a share of Cowen Class A common stock for each outstanding share of LaBranche common stock.

RURL 03/28/2011 Warburg Pincus (N/A) All Cash N/A $17.25 $17.05 844,899 06/30/2011 1.17% 4.92%
Details of Rural/Metro Corporation

Expected to close by the end of June 2011. Upon completion of the merger, Rural/Metro shareholders will receive $17.25 per share in cash.

TOMO 03/07/2011 Accuray (ARAY) Cash Plus Stock $277 million $4.65 $4.60 767,800 07/31/2011 1.12% 3.45%
Details of Tomo Therapy Incorporates

Expected to close in the second quarter or the beginning of the third quarter of calendar 2011 for a closing value of $277 million in a cash plus stock deal. Upon completion of the merger, TomoTherapy shareholders will receive $3.15 in cash and 0.1648 shares of Accuray common stock per share of TomoTherapy common stock.

SBIB 01/18/2011 Comerica Incorporated (CMA) All Stock $1.027 billion $8.74 $8.65 816,055 06/30/2011 1.03% 4.30%
Details of Sterling Bancshares Inc.

Expected to close by mid-year 2011 for a closing value of $1.027 billion. According to the terms of the deal, each outstanding share of Sterling common stock will be exchanged for 0.2365 shares of Comerica common stock upon closing.

TRCI 03/28/2011 Coleman Cable (CCIX) All Cash $51.5 million $7.20 $7.13 35,359 05/31/2011 0.98% 6.29%
Details of Technology Research Corp.

Expected to close by the end of May 2011 for a total value of $51.5 million. Coleman Cable will initiate a tender offer on April 11 to acquire outstanding shares of Technology Research Corp for $7.20 in cash. The transaction will be funded with cash on hand and existing borrowing facilities.

RHB 02/08/2011 Kindred Healthcare (KND) Cash Plus Stock $877 million $37.40 $37.04 128,379 06/30/2011 0.98% 4.11%
Details of Rehabcare Group

Expected to close by June 30, 2011 for a closing value of $877 million in a cash plus stock deal. On the completion of the merger, Rehabcare shareholders will receive $26 in cash and 0.471 of a Kindred share for each RehabCare share.

AHII 03/14/2011 Lextron (N/A) All Cash $251 million $4.25 $4.21 559,336 06/30/2011 0.95% 3.99%
Details of Animal Health International

Expected to close by June 30, 2011 for a closing value of $251 million. Upon completion of the merger, Animal Health International shareholders will receive $4.25 per share in cash.

LZ 03/14/2011 Berkshire Hathaway (N/A) All Cash $9.7 billion $135.00 $133.80 2,009,400 09/30/2011 0.90% 1.83%
Details of Lubrizol Corporation

Expected to close in the third quarter of 2011 for a closing value of $9.7 billion. Upon completion of the merger, Lubrizol Corporation shareholders will receive $135 per share in cash.

TCM 11/01/2010 Hanmax Investment Limited (N/A) All Cash N/A $4.50 $4.4601 18,510 04/30/2011 0.89% 12.56%
Details of Tongjitang Chinese Medicines

Expected to close in the first quarter of 2011. On the completion of the merger, Tongjitang Chinese Medicines shareholders will receive $4.50 per ADS in cash.

Update(s)

April 01, 2011: Merger expected to close in April 2011

NAL 08/19/2010 First Niagara Financial Group (FNFG) Cash Plus Stock $1.5 billion $15.22 $15.09 1,573,408 05/15/2011 0.89% 7.91%
Details of New Alliance Bancshares

Expected to close in early second quarter of 2011 for a closing value of $1.5 billion. On the completion of the merger, New Alliance shareholders will receive either 1.1 shares of FNFG stock, all cash or cash plus stock. NAL mentioned that the “aggregate consideration is 86% in stock and 14% in cash”.

The exchange ratio is however fixed at 1.1 shares of FNFG per share of NAL and worked out to $14.09 per share upon announcement of the deal.

PPD 01/31/2011 MidOcean Partners (N/A) All Cash $650 million $66.50 $65.93 29,229 07/31/2011 0.86% 2.67%
Details of Pre-Paid Legal Services Inc.

Expected to close on or before July 31, 2011 for a closing value of $650 million. On the completion of the merger, Pre-Paid Legal Services shareholders will receive $66.50 per share in cash.

CNXT 02/23/2011 Golden Gate Capital (N/A) All Cash N/A $2.40 $2.38 315,977 06/30/2011 0.84% 3.53%
Details of Conexant Systems, Inc.

Expected to close in the second quarter of 2011 for $2.40 per share in cash. Conexant Systems terminated its merger agreement with SMSC that was announced on January 10, 2011 and agreed to be acquired by Golden Gate Capital on February 23, 2011.

ABBC 01/26/2011 Susquehanna Bancshares, Inc. (SUSQ) All Stock $273 million $12.42 $12.32 74,958 09/30/2011 0.82% 1.67%
Details of Abington Bancorp Inc.

Expected to close in third quarter of 2011 for $273 million. Under terms of the agreement, Abington shareholders will receive 1.32 shares of Susquehanna common stock for each share of Abington common stock on the completion of merger.

RVI 02/08/2011 DSW Inc (DSW) All Stock N/A $18.04 $17.90 323,340 06/30/2011 0.78% 3.27%
Details of Retail Ventures Inc

Expected to close in the second quarter of 2011. On the completion of the merger, Retail Ventures shareholders will receive 0.435 DSW shares per each RVI share.

ANSW 02/03/2011 AFCV Holdings LLC (N/A) All Cash $127 million $10.50 $10.42 40,664 06/30/2011 0.77% 3.22%
Details of Answers Corporation

Expected to close in the second quarter of 2011 for a closing value of $127 million. On the completion of the merger, Answers Corporation shareholders will receive $10.50 per share in cash.

CPD 02/22/2011 Sun Pharmaceutical Industries ltd (N/A) All Cash N/A $5.25 $5.21 20,384 12/31/2011 0.77% 1.03%
Details of Caraco Pharmaceutical Laboratories Ltd

Upon completion of this merger, Caraco Pharmaceutical Laboratories shareholders will receive $5.25 per share in cash.

WTNY 12/22/2010 Hancock Holding Company (HBHC) All Stock $1.5 billion $14.06 $13.96 485,802 06/30/2011 0.73% 3.05%
Details of Whitney Holding Corporation

Expected to close in the second quarter of 2011 for a closing value of $1.5 billion. On the completion of the merger, Whitney Holding Corporation shareholders will receive 0.418 shares of Hancock Holding Company common stock in exchange for each share of Whitney common stock in an all stock deal.

NOVA 01/21/2011 Surgery Partners (N/A) All Cash $214 million $13.25 $13.16 26,490 06/30/2011 0.68% 2.87%
Details of NovaMed Inc.

Expected to close in second quarter of 2011 for $214 million. On the completion of merger NovaMed Inc. shareholders will receive 13.25 per share in cash.

PDE 02/07/2011 Ensco plc (ESV) Cash Plus Stock $7.31 billion $43.70 $43.41 1,969,939 06/30/2011 0.68% 2.84%
Details of Pride International Inc.

Expected to close in the second quarter of 2011 for a closing value of $7.31 billion. On the completion of the merger, Pride International shareholders will receive 0.4778 newly-issued Ensco shares plus $15.60 in cash for each Pride common share.

ATHR 01/05/2011 QUALCOMM Incorporated (QCOM) All Cash $3.1 billion $45.00 $44.71 491,025 06/30/2011 0.65% 2.72%
Details of Atheros Communications Inc.

Expected to close in the firt half of 2011 for a closing value of $3.1 billion. On the completion of the merger, Atheros Communications Inc. shareholders will receive $45.00 per share in cash.

BUCY 11/15/2010 Caterpillar Inc (CAT) All Cash $8.6 billion $92.00 $91.43 1,026,867 06/30/2011 0.62% 2.62%
Details of Bucyrus International Inc

Expected to close by the middle of 2011 for a closing value of $8.6 billion. On the completion of the merger, Bucyrus International shareholders will receive $92 per share in cash.

EMS 02/14/2011 Clayton, Dubilier & Rice (N/A) All Cash $3 billion $64.00 $63.63 211,614 06/30/2011 0.58% 2.44%
Details of Emergency Medical Services Corp

Expected to close in the second quarter of 2011 for a closing value of $3 billion. On the completion of the merger, Emergency Medical Services shareholders will receive $64.00 per share in cash.

BEC 02/07/2011 Danaher (DHR) All Cash $6.8 billion $83.50 $83.07 276,048 06/30/2011 0.52% 2.17%
Details of Beckman Coulter

Expected to close in the second half of 2011 for a closing value of $6.8 billion. On the completion of the merger, Beckman Coulter shareholders will receive $83.50 per share in cash.

ACV 09/27/2010 Unilever PLC (N/A) All Cash $3.7 billion $37.50 $37.34 643,337 06/27/2011 0.43% 1.86%
Details of Alberto Culver

Expected to close in the fourth quarter of 2010 for a closing value of $3.7 billion. On the completion of the merger, Albert Culver shareholders will receive $37.50 per share in cash.

NHP 02/28/2011 Ventas Inc. (VTR) All Stock $7.4 billion $42.57 $42.39 744,568 09/30/2011 0.43% 0.87%
Details of Nationwide Health Properties

Expected to close in the third quarter of 2011 for a closing value of $7.4 billion in an all stock deal. Upon completion of the merger, Nationwide Health Properties shareholders will receive a fixed exchange ratio of 0.7866 Ventas shares for each share of NHP common stock they own.

WL 11/01/2010 M & T Bank Corporation (MTB) All Stock $351 million $4.61 $4.59 392,404 06/30/2011 0.38% 1.60%
Details of Wilmington Trust Corporation

Expected to close in mid-year 2011 for a closing value of $351 million. On the completion of the merger, Wilmington Trust common shareholders will receive 0.051372 shares of M&T common stock in exchange for each share of Wilmington Trust common stock they own .

PLD 01/31/2011 AMB Property Corporation (AMB) All Stock N/A $16.09 $16.03 4,516,815 06/30/2011 0.36% 1.52%
Details of ProLogis

Expected to close in the second quarter of 2011. On the completion of the merger, ProLogis shareholders will receive 0.4464 shares of AMB Property common stock per share held.

DNEX 12/13/2010 Thermo Fisher Scientific Inc. (TMO) All Cash $2.1 billion $118.50 $118.10 67,800 04/30/2011 0.34% 4.75%
Details of Dionex Corp.

Expected to close in the first quarter of 2011 for a closing value of $2.1 billion. On the completion of the merger, Dionex shareholders will receive $118.50 per share in cash.

Update(s)

February 15, 2011: Thermo Fisher Scientific Extends Cash Tender Offer for Dionex Corporation. This process is likely to take the closing to early in the second quarter of 2011.

LDSH 11/17/2010 Allegheny Technologies (ATI) Cash Plus Stock $778 million $54.67 $54.50 61,203 05/15/2011 0.31% 2.79%
Details of Ladish Co

Expected to close in early 2011 for a closing value of $778 million. On the completion of the merger, Ladish Co shareholders will receive $24 in cash and 0.4556 share of Allegheny stock for each share held.

SSCC 01/23/2011 Rock-Tenn Co. (RKT) Cash Plus Stock $3.5 billion $38.85 $38.76 1,610,206 06/30/2011 0.24% 1.01%
Details of Smurfit-Stone Container Corp.

The deal is expected to close in the second quarter of 2011. According to the terms of the deal, the boards of both companies have agreed to the half-stock, half-cash deal. RockTenn will pay $17.50 in cash and Smurfit-Stone shareholders will receive 0.30605 shares of RockTenn for each share they own.

GIW 10/25/2010 Community Bank System (CBU) All Cash $101.8 million $9.50 $9.4801 9,698 04/08/2011 0.21% 19.15%
Details of Wilber Corporation

Expected to close by February 15, 2011 for a closing value of $101.8 million. On the completion of the merger, Wilber shareholders will receive $9.50 per share in cash and Community Bank System common stock, subject to the following calculation: If the Community Bank System Market Price is equal to or greater than $19.71, or equal to or less than $25.35, then the ratio will be determined by a quotient (rounded to the nearest one-thousandth) obtained by dividing $9.50 by the Community Bank System Market Price. If the Community Bank System Market Price is greater than $25.35, then the quotient is 0.3748. If the Community Bank System Market Price is less than $19.71, then the quotient is 0.4820.

Update(s)

March 25, 2011: Shareholders vote for Wilber merger. Merger expected to close on April 08, 2011

TLGD 02/22/2011 Golden Gate Capital (N/A) All Cash $137 million $10.10 $10.08 32,558 06/30/2011 0.20% 0.83%
Details of Tollgrade Communications

Expected to close in the second quarter of 2011 for a closing value of $137 million. Upon completion of the merger, Tollgrade Communications shareholders will receive $10.10 per share in cash.

LZR 02/07/2011 Universal Hospital Services (N/A) All Cash $70 million $8.46 $8.45 9,083 04/30/2011 0.12% 1.66%
Details of Emergent Group Inc.

Expected to close within 45 to 90 days for a closing value of $70 million. On the completion of the merger, Emergent Group shareholders will receive $8.46 per share in cash.

TMRK 01/27/2011 Verizon Communications Inc. (VZ) All Cash $1.4 billion $19.00 $18.99 603,356 06/30/2011 0.05% 0.22%
Details of Terremark Worldwide, Inc.

Expected to close in first quarter of 2011 for $1.4 billion. On completion of merger Terremark Worldwide, Inc. will receive $19 per share in cash.

Update(s)

April 01, 2011: Verizon Completes Tender Offer for Terremark Worldwide, Inc.; Announces Subsequent Offering Period

GTEC 03/03/2011 affiliate of Ares Management LLC (N/A) All Cash $315 million $24.25 $24.24 25,695 06/30/2011 0.04% 0.17%
Details of Global Defense Technology & Systems, Inc.

Expected to close in the second quarter of 2011 for a closing value of $315 million. Upon completion of the merger, Global Defense Technology & Systems shareholders will receive $24.25 per share in cash.

XETA 02/09/2011 PAETEC Holding Corp (PAET) All Cash $61 million $5.50 $5.50 66,297 04/30/2011

0.00%

0.00%
Details of XETA Technologies

Expected to close within three months for a closing value of $61 million. On the completion of the merger, XETA Technologies shareholders will receive $5.50 per share in cash.

GSIC 03/28/2011 eBay Inc. (EBAY) All Cash $2.4 billion $29.25 $29.34 2,292,812 09/30/2011 -0.31% -0.63%
Details of GSI Commerce

Expected to close in the third quarter of 2011 for a closing value of $2.4 billion. Upon completion of the merger, GSI Commerce shareholders will receive $29.25 per share in cash.

FTO 02/22/2011 Holly Corporation (HOC) All Stock $3 billion $29.64 $29.81 2,125,735 09/30/2011 -0.57% -1.16%
Details of Frontier Oil Corporation

Expected to close in the third quarter of 2011 for a closing value of $3 billion. Upon completion of the merger, Frontier Oil Corporation shareholders will receive 0.4811 Holly shares for each share of Frontier common stock.

RCRC 03/10/2011 TOMY Company Ltd (N/A) All Cash $640 million $27.90 $28.09 560,650 06/30/2011 -0.68% -2.84%
Details of RC2 Corp

Expected to close in the second quarter of 2011 for a closing value of $640 million. Upon completion of the merger, RC2 shareholders will receive $27.90 per share in cash.

DSCM 03/24/2011 Walgreen (WAG) All Cash $409 million $3.80 $3.84 804,470 06/30/2011 -1.04% -4.37%
Details of Drugstore.com

Expected to close by the end of June, 2011 for a closing value of $409 million. Upon completion of the merger, Drugstore.com shareholders will receive $3.80 per share in cash.

CLDA 02/22/2011 Forest Laboratories Inc. (FRX) All Cash $1.2 billion $30.00 $30.33 1,300,736 06/30/2011 -1.09% -4.56%
Details of Clinical Data Inc.

Expected to close in the second quarter of 2011 for a closing value of $1.2 billion. Upon completion of the merger, Clinical Data shareholders will receive $30.00 per share in cash plus contingent consideration of up to $6.00 per share that may be paid upon achievement of certain milestones.

CPEX 01/04/2011 FCB I Holdings Inc. (N/A) All Cash N/A $27.25 $27.69 3,855 04/30/2011 -1.59% -22.31%
Details of CPEX Pharmaceuticals, Inc.

Expected to close in the second quarter of 2011. On the completion of the merger, CPEX Pharmaceuticals, Inc. shareholders will receive $27.25 per share in cash.

Update(s):

February 28, 2011: Mangrove Partners Questions the Proposed Sale of CPEX Pharmaceuticals and Intends to Vote 'No' on the Merger

March 04, 2011: CPEX Pharmaceutical Partners (CPEX) received a letter from Athyrium Capital Management LLC, in response to recent incomplete and inaccurate statements by Mangrove Partners.

March 21, 2011: Mangrove Partners Expresses Disappointment in Board of CPEX Pharmaceuticals (CPEX)

March 24, 2011: CPEX Stockholders Approve $27.25 Per Share Merger Agreement with FCB I Holdings. Transaction expected to close in April

CRA 03/18/2011 Quest Diagnostics Incorporated (DGX) All Cash $344 million $8.00 $8.18 761,119 04/30/2011

-2.20%

-30.89%
Details of Celera Corporation

Expected to close by the end of April 2011 for a closing value of $344 million. Upon completion of the merger, Celera shareholders will receive $8.00 per share in cash.

NST 10/18/2010 Northeast Utilities (NU) All Stock $4.17 billion $45.76 $46.84 293,663 09/30/2011 -2.30% -4.69%
Details of NSTAR

Expected to close in the third quarter of 2011 for a closing value of $4.17 billion. On the completion of the merger, NSTAR shareholders will receive 1.312 Northeast Utilities common shares for each NSTAR held.

GENZ 02/16/2011 Sanofi-Aventis (SNY) All Cash $20.1 billion $74.00 $76.01 50,871,952 06/15/2011 -2.64% -13.41%
Details of Genzyme Corp.

Expected to close early in the second quarter of 2011 for a closing value of $20.1 billion. On the completion of the merger, Genzyme shareholders will receive $74.00 per share in cash and one Contingent Value Right (NYSEMKT:CVR) for each share they own, entitling the holder to receive additional cash payments if specified milestones related to Lemtrada? (alemtuzumab MS) are achieved over time or a milestone related to production volumes in 2011 for Cerezyme? and Fabrazyme? is achieved.

CGC 10/01/2010 Gammon Gold (GRS) Cash Plus Stock $288 million $6.05 $6.31 2,196,764 04/15/2011 -4.10% -136.15%
Details of Capital Gold Corp.

Expected to close in the fourth quarter of 2010 for a closing value of $288 million. On the completion of the merger, Gammon will issue 0.5209 of a common share for each Capital share, in addition to paying 79 cents a share in cash.

Update(s)

March 25, 2011: Gammon confident of clinching Capital Gold deal

DTG 04/26/2010 Avis (CAR) Cash Plus Stock $1.56 billion $57.53 $66.76 499,783 03/31/2011 -13.83% 1261.84%
Details of Dollar Thrifty Automotive Group

Details about the original Hertz offer with updates below: 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.

Revision on 09/13/2010: Hertz raised its offer for Dollar Thrifty Automotive Group Inc. to $50 a share, or about $1.56 billion, topping a proposal from Avis Budget Group Inc.

Update 10/1/2010: Dollar Thrifty shareholders rejected the Hertz deal yesterday. DTG has indicated its willingness to work with Avis's offer of nearly $53 per share ($45.79 in cash plus 0.6543 shares of Avis) but has asked the company to hold off on making a formal offer.

KSP 03/13/2011 Kirby Corporation (KEX) Special Conditions $335.3 million $4.08 $8.16 150,155 09/30/2011 -50.06% -102.08%
Details of K-Sea Transportation Partners

Expected to close in the second or third calendar quarter of 2011 for a closing value of $335.3 million. Upon completion of the merger, K-Sea's common unitholders will have the right to elect to receive either (a) $8.15 in cash; or (b) $4.075 in cash plus 0.0734 of a share of Kirby's common stock for each common unit. K-Sea's preferred unitholders will receive $4.075 in cash and 0.0734 of a share of Kirby's common stock for each preferred unit. K-Sea's general partner will receive $8.15 in cash for each general partner unit and $18 million in cash for K-Sea's incentive distribution rights.

NYX 02/15/2011 Deutsche Boerse (N/A) All Stock N/A $13.93 $39.60 N/A 12/31/2011 -64.83% -87.32%
Details of NYSE Euronext

Expected to close by the end of the year in an all stock deal. On the completion of the merger NYSE Euronext shareholders will receive 0.4700 of a share of Deutsche Boerse common stock per share held.

Update April 1, 2011: The Nasdaq (NDAQ) and ICE have made a joint offer for NYSE Euronext (NYX) that is worth $43 as of April 1, 2011.

UAM 12/31/2010 CVS Caremark Corporation (CVS) All Cash $1.25 billion N/A $23.09 393,708 06/30/2011 N/A N/A
Details of Universal American Corp

Expected to close in the second quarter of 2011. On the completion of the merger, Universal American Corp shareholders will receive $12.80 to $13.00 per share in cash plus a share in a newly formed public company, which will own all the other operations of UAM. The newly formed company will have $640 million of cash and statutory capital in its subsidiaries and no debt.

Update(s):

March 01, 2011: VS Caremark and Universal American Announce Termination of Hart-Scott-Rodino Waiting Period

ZRAN 02/21/2011 CSR PLC (N/A) All Stock $679 million N/A $10.13 371,230 06/30/2011 N/A N/A
Details of Zoran Corporation

Expected to close in the second quarter of 2011 for a closing value of $679 million. Upon completion of the merger, Zoran shareholders will receive ADRs equivalent to 1.85 shares of CSR common stock per Zoran share held.

Update(s):

March 01, 2011: Zoran Corporation (ZRAN) issued an open letter to its stockholders.

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Source: Merger Arbitrage Mondays: April 04, 2011