Merger Arbitrage Mondays: May 16, 2011

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 |  Includes: ACV-OLD, ALKS, ATI, CKXE, CYH, DTG, ELN, HTZ, SVLF, THC, TLGD
by: Asif Suria

Merger activity decreased significantly last week with only two new deals announced and three closing.

You can find all the active deals listed below in our Merger Arbitrage Tool that automatically updates itself during market hours.

Deal Statistics:

Total Number of Deals Closed in 2011 67
Total Number of Deals Not Completed in 2011 1
Total Number of Pending Deals
Cash Deals 50
Stock Deals 25
Stock & Cash Deals 14
Special Conditions 1
Total Number of Pending Deals 90
Click to enlarge

New Deals:

  1. The acquisition of CKX, Inc. (NASDAQ:CKXE) by an affiliate of Apollo Global Management for $511 million or $5.50 per share in cash. CKX owns the American Idol brand as well as ????rights to the name, image and likeness of Elvis Presley and Muhammad Ali. The company showed up on my radar following insider purchases by a director last November and I held the stock for a brief period.
  2. Alkermes (NASDAQ:ALKS) has agreed to merge with Elan Drug Technologies, the drug formulation and manufacturing business unit of Elan Corporation (NYSE:ELN), in a $960 million cash plus stock deal that will lead to the creation of a new company called Alkermes plc incorporated in Ireland. Elan will receive $500 million in cash and 31.9 million shares of the new Alkermes plc common stock. Existing shareholders of Alkermes, Inc. will receive one ordinary share of Alkermes plc in exchange for each share of Alkermes, Inc. they own in a taxable transaction.

Deal Updates:

  1. Silverleaf Resorts (NASDAQ:SVLF) Shareholders Approve Merger Agreement. Deal expected to close on or about May 16, 2011
  2. Hertz Global Holdings (NYSE:HTZ) made a new bid for Dollar Thrifty Automotive Group (NYSE:DTG), offering $2.24 billion.
  3. Community Health Systems (NYSE:CYH) announced on Monday, May 09, 2011 that it was withdrawing its takeover offer for Tenet Healthcare (NYSE:THC)

Closed Deals:

  1. The acquisition of Ladish Co. (NASDAQ:LDSH) by Allegheny Technologies (NYSE:ATI) on May 09, 2011
  2. The acquisition of Tollgrade Communications (NASDAQ:TLGD) by Golden Gate Capital on May 12, 2011
  3. The acquisition of Alberto Culver (NYSE:ACV-OLD) by Unilever PLC on May 12, 2011

Top 10 Deals With Largest Spreads:

Symbol Announced

Date

Acquiring

Company

Closing

Price

Last

Price

Closing

Date

Profit Annu.

Profit

GRAN 04/27/2011 FNB United Corp (FNBN) $1.88 $0.96 09/30/2011

95.47%

254.35%
CSR 04/20/2011 Rightmark Holdings Limited (N/A) $6.50 $5.30 09/30/2011 22.64% 60.32%
TAM 01/19/2011 LAN Airlines S.A. (LFL) $26.02 $21.78 12/31/2011

19.46%

31.02%
TLCR 06/07/2010 Grifols (GRF.MC) $31.54 $28.19 06/30/2011 11.87% 96.29%
ID 09/20/2010 Safran (N/A) $12.00 $10.78 05/15/2011

11.32%

0.00%
HYC 11/17/2010 Verifone Systems (PAY) $10.84 $9.95 09/30/2011 8.97% 23.89%
SVVS 04/27/2011 CenturyLink (CTL) $42.32 $39.28 12/31/2011 7.75% 12.35%
CRU 05/05/2011 Capital Product Partners L.P. (CPLP) $15.58 $14.47 09/30/2011 7.65% 20.37%
GLBC 04/11/2011 Level 3 Communications (LVLT) $30.24 $28.41 12/31/2011 6.44% 10.27%
SHMR 10/15/2010 Essilor (N/A) $14.50 $13.77 06/30/2011 5.30% 43.00%
CEG 04/28/2011 Exelon Corporation (EXC) $38.82 $36.89 01/31/2012 5.23% 7.34%
Click to enlarge

List of All Pending Deals:

Symbol Announced

Date

Acquiring

Company

Deal

Type

Closing

Value

Closing

Price

Last

Price

Volume Closing

Date

Profit Annu.

Profit

GRAN 04/27/2011 FNB United Corp (FNBN) All Stock N/A $1.88 $0.96 106,383 09/30/2011

95.47%

254.35%
Details of Bank of Granite corporation

Expected to close in the third quarter of 2011 in an all-stock deal. Upon completion of the merger, Bank of Granite shareholders will receive 3.375 shares of FNB's common stock in exchange for each share of Bank of Granite common stock they own.

As part of this transaction, The Carlyle Group and Oak Hill Capital Partners, have each entered into definitive agreements with FNB United to invest $77.5 million in the common stock of FNB United subject to the conditions set forth in the agreements as part of a $310 million private placement of FNB United’s common stock.

The Carlyle Group and Oak Hill Capital Partners will each receive approximately 484 million shares of common stock at the closing not to exceed 24.9 percent of the then-outstanding shares of common stock, valued at $0.16 a share.

CSR 04/20/2011 Rightmark Holdings Limited (N/A) All Cash $583.2 million $6.50 $5.30 610,945 09/30/2011 22.64% 60.32%
Details of China Security & Surveillance Technology, Inc.

Expected to close before the end of the third quarter for a closing value of $583.2 million. Upon completion of the merger, China Security & Surveillance Technology shareholders will receive $6.50 per share in cash.

TAM 01/19/2011 LAN Airlines S.A. (LFL) All Stock N/A $26.02 $21.78 949,796 12/31/2011

19.46%

31.02%
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 $31.54 $28.19 1,896,187 06/30/2011 11.87% 96.29%
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

ID 09/20/2010 Safran (N/A) All Cash $1.1 billion $12.00 $10.78 1,244,625 05/15/2011

11.32%

0.00%
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.

HYC 11/17/2010 Verifone Systems (PAY) All Stock $485 million $10.84 $9.95 6,529,776 09/30/2011 8.97% 23.89%
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.

SVVS 04/27/2011 CenturyLink (CTL) Cash Plus Stock $2.5 billion $42.32 $39.28 822,472 12/31/2011 7.75% 12.35%
Details of SAVVIS Inc.

Expected to close in the second half of 2011 for a closing value of $2.5 billion. Upon completion of the merger, SAVVIS shareholders will receive in exchange for each Savvis share $30 in cash and $10 in CenturyLink shares.

The number of CenturyLink shares issued will be based upon the volume-weighted average price of CenturyLink stock during the thirty trading day period ending three trading days prior to the closing, provided that if this average price is less than or equal to $34.42, each Savvis share will receive $30 in cash and 0.2905 of a CenturyLink share.

CRU 05/05/2011 Capital Product Partners L.P. (CPLP) All Stock $281.3 million $15.58 $14.47 98,853 09/30/2011 7.65% 20.37%
Details of Crude Carriers Corp.

Expected to close in the third quarter of 2011 for a closing value of $281.3 million in an all-stock deal. Upon comlpletion of the merger, Crude Carriers shareholders will receive 1.56 CPLP common units for each Crude Carriers share.

GLBC 04/11/2011 Level 3 Communications (LVLT) All Stock $3.00 billion $30.24 $28.41 404,076 12/31/2011 6.44% 10.27%
Details of Global Crossing Limited

Expected to close before the end of the year for a closing value of $3 billion. Upon completion of the merger, Global Crossing shareholders will receive 16 shares of Level 3 common stock for each share of Global Crossing common stock or preferred stock that is owned at closing.

SHMR 10/15/2010 Essilor (N/A) All Cash $130 million $14.50 $13.77 4,006 06/30/2011 5.30% 43.00%
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.

CEG 04/28/2011 Exelon Corporation (EXC) All Stock $7.9 billion $38.82 $36.89 2,239,054 01/31/2012 5.23% 7.34%
Details of Constellation Energy Group

Expected to close in early 2012 for a closing value of $7.9 billion in an all-stock deal. Upon completion of the merger, Constellation shareholders will receive 0.93 shares of Exelon for each Constellation share.

STBC 04/28/2011 Valley National Bancorp (VLY) All Stock $222 million $13.51 $12.96 34,949 10/31/2011 4.24% 9.22%
Details of State Bancorp Inc.

Expected to close early in the fourth quarter of 2011 for a closing value of $222 million in an all-stock deal. Upon completion of the merger, State Bancorp shareholders will receive 1 share of Valley National Bancorp common stock per State Bancorp share held.

DNBK 01/20/2011 People's United Financial Inc. (PBCT) All Cash $493 million $23.00 $22.10 73,699 06/30/2011 4.07% 33.03%
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.

PGN 01/10/2011 Duke Energy Corporation (DUK) All Stock $13.7 billion $50.21 $48.39 1,120,250 12/31/2011 3.77% 6.00%
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.

VRGY 03/28/2011 Advantest (ATE) All Cash $1.1 billion $15.00 $14.48 407,897 12/31/2011 3.59% 5.72%
Details of Verigy

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

VSEA 05/04/2011 Applied Materials Inc. (AMAT) All Cash $4.9 billion $63.00 $61.18 3,039,837 09/30/2011

2.97%

7.93%
Details of Varian Semiconductor Equipment Associates Inc.

Expected to close in the third quarter of 2011 for a closing value of $4.9 billion. Upon completion of the merger, Varian shareholders will receive $63 in cash for each share of Varian stock they hold.

The closing of the acquisition is subject to customary conditions, including approval by Varian's shareholders and review by U.S. and international regulators.

NSM 04/05/2011 Texas Instruments Incorporated (TXN) All Cash $6.5 billion $25.00 $24.40 3,210,156 01/31/2012 2.46% 3.45%
Details of National Semiconductor Corporation

Expected to close in six to nine months for $6.5 billion. On the completion of the merger, National Semiconductor shareholders will receive $25.00 per share in cash.

CASB 03/04/2011 Opus Bank (N/A) All Cash N/A $0.45 $0.44 78,063 06/30/2011 2.27% 18.43%
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.

CEPH 05/02/2011 Teva Pharmaceutical Industries Ltd. (TEVA) All Cash $6.8 billion $81.50 $79.70 2,477,844 09/30/2011 2.26% 6.02%
Details of Cephalon Inc.

Expected to close in the third quarter of 2011 for a closing value of $6.8 billion. Upon completion of the merger, Cephalon's shareholders will receive $81.50 per share in cash.

LOOP 04/27/2011 CoStar Group (CSGP) Cash Plus Stock $860 million $19.16 $18.765 390,142 12/31/2011 2.08% 3.32%
Details of LoopNet

Expected to close by the end of the year in a cash plus stock deal. Upon completion of the merger, LoopNet shareholders will receive $16.50 in cash and 0.03702 shares of CoStar Group common stock per share held.

GSLA 03/30/2011 Home Bancorp (HBCP) All Cash $26.2 million $21.00 $20.59 3,094 09/30/2011 1.99% 5.31%
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.

PNNW 11/12/2010 City of Nashua (N/A) All Cash $138 million $29.00 $28.45 4,600 09/30/2011 1.93%

5.15%

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.

LWSN 04/26/2011 Affiliate of Golden Gate Capital and Infor (N/A) All Cash $2 billion $11.25 $11.09 3,061,118 09/30/2011 1.44% 3.84%
Details of Lawson Software

Expected to close in the third calendar quarter of 2011 for a closing value of $2 billion. Upon completion of the merger, Lawson Software shareholders will receive $11.25 per share in cash.

HUGH 02/14/2011 EchoStar Corp (SATS) All Cash $2 billion $60.70 $59.90 51,660 12/31/2011 1.34% 2.13%
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.

LAB 02/17/2011 Cowen Group (COWN) All Stock $192.8 million $3.96 $3.91 202,015 07/31/2011 1.33% 6.39%
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.

SRX 04/01/2011 affiliate of Providence Equity Partners (N/A) All Cash $1.88 billion $31.25 $30.85 324,837 09/30/2011 1.30% 3.45%
Details of SRA Internationl

Expected to close during the first quarter of the SRA 2012 fiscal year, which begins on July 1, 2011. Upon completion of the merger, SRA International shareholders will receive $31.25 per share in cash.

DEP 02/23/2011 Enterprise Products Partners (EPD) All Stock N/A $41.23 $40.73 28,128 09/30/2011 1.22% 3.26%
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.

Update(s)

April 29, 2011: Enterprise Products Partners L.P. and Duncan Energy Partners L.P. Announce Merger Agreement

KNDL 05/04/2011 INC Research (N/A) All Cash $232 million $15.25 $15.07 213,075 09/30/2011 1.19% 3.18%
Details of Kendle International

Expected to close in the third quarter of 2011 for a closing value of $232 million. Upon completion of the merger, Kendle International's shareholders will receive $15.25 per share in cash.

LEGC 12/21/2010 Berkshire Hills Bancorp (BHLB) Cash Plus Stock $108 million $13.20 $13.06 3,384 06/30/2011 1.09% 8.87%
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.

SMOD 04/26/2011 Silver Lake Partners and Silver Lake Sumeru (N/A) All Cash $645 million $9.25 $9.15 885,956 09/30/2011

1.09%

2.91%
Details of SMART Modular Technologies

Expected to close in the third calendar quarter of 2011 for a closing value of $645 million. Upon completion of the merger, SMART Modular Technologies shareholders will receive $9.25 per share in cash.

GRM 04/13/2011 Silgan Holdings (SLGN) Cash Plus Stock $4.1 billion $22.39 $22.15 350,892 06/30/2011 1.06% 8.63%
Details of Graham Packaging Company

Expected to close in the second half of this year for a closing value of $4.1 billion. Upon completion of the merger, Graham Packaging shareholders will receive $19.56 per share in a cash plus stock deal. Graham shareholders will receive $4.75 in cash and 0.402 shares of Silgan common stock.

RURL 03/28/2011 Warburg Pincus (N/A) All Cash N/A $17.25 $17.07 93,658 06/30/2011 1.05% 8.55%
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.

ICO 05/02/2011 Arch Coal Inc. (ACI) All Cash $3.4 billion $14.60 $14.45 13,478,215 06/30/2011 1.04% 8.42%
Details of International Coal Group

Expected to close in the second quarter of 2011 for a closing value of $3.4 billion. Upon completion of the merger, International Coal Group's shareholders will receive $14.60 per share in cash.

WTNY 12/22/2010 Hancock Holding Company (HBHC) All Stock $1.5 billion $13.28 $13.15 307,891 06/30/2011 0.96% 7.75%
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.

MEE 01/29/2011 Alpha Natural Resources, Inc. (ANR) Cash Plus Stock $8.5 billion $59.65 $59.12 2,391,646 06/30/2011 0.90% 7.29%
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.

SBIB 01/18/2011 Comerica Incorporated (CMA) All Stock $1.027 billion $8.61 $8.53 577,744 06/30/2011 0.89% 7.25%
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.

LB 04/04/2011 Ducommun Incorporated (DCO) All Cash $340 million $19.25 $19.08 73,979 06/30/2011 0.89% 7.23%
Details of LaBarge Inc.

Expected to close in late June 2011 for a closing value of $340 million. Upon completion of the merger, LaBarge shareholders will receive $19.25 per share in cash.

CLFC 12/09/2010 Nara Bancorp Inc. (NARA) All Stock $285.7 million $6.96 $6.90 258,393 09/30/2011 0.83% 2.21%
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.

BUCY 11/15/2010 Caterpillar Inc (CAT) All Cash $8.6 billion $92.00 $91.26 995,616 06/30/2011 0.81% 6.58%
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.

OXPS 03/21/2011 Charles Schwab Corp. (SCHW) All Stock $1 billion $17.99 $17.85 371,873 09/30/2011

0.80%

2.13%
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.

TGE 03/21/2011 Dawson Geophysical Company (DWSN) All Stock $157 million $6.27 $6.22 70,956 08/15/2011 0.77% 3.09%
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.

PPD 01/31/2011 MidOcean Partners (N/A) All Cash $650 million $66.50 $66.00 85,452 07/31/2011 0.76% 3.64%
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.

MI 12/17/2010 BMO Financial Group (BMO) All Stock $4.1 billion $7.87 $7.81 1,620,181 07/31/2011 0.74% 3.54%
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.

ABBC 01/26/2011 Susquehanna Bancshares, Inc. (SUSQ) All Stock $273 million $11.52 $11.44 24,997 09/30/2011 0.73% 1.95%
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.

GAS 12/07/2010 AGL Resources Inc. (AGL) Cash Plus Stock $2.4 billion $55.60 $55.23 335,190 09/30/2011 0.67% 1.78%
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.

CKXE 05/10/2011 affiliate of Apollo Global Management (N/A) All Cash $511 million $5.50 $5.465 2,960,084 09/30/2011 0.64% 1.71%
Details of CKX Inc.

Expected to close in the third quarter of 2011 for a closing value of about $511 million. Upon completion of the merger, CKx Inc.'s shareholders will receive $5.50 per share in cash.

BEC 02/07/2011 Danaher (DHR) All Cash $6.8 billion $83.50 $82.99 333,748 06/30/2011 0.61% 4.98%
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.

LZ 03/14/2011 Berkshire Hathaway (N/A) All Cash $9.7 billion $135.00 $134.22 1,167,013 09/30/2011 0.58% 1.55%
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.

NHP 02/28/2011 Ventas Inc. (VTR) All Stock $7.4 billion $42.59 $42.35 584,729 09/30/2011 0.58% 1.54%
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.

CPD 02/22/2011 Sun Pharmaceutical Industries ltd (N/A) All Cash N/A $5.25 $5.22 69,279 12/31/2011

0.57%

0.92%
Details of Caraco Pharmaceutical Laboratories Ltd

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

XETA 02/09/2011 PAETEC Holding Corp (PAET) All Cash $61 million $5.50 $5.47 8,660 06/30/2011 0.55% 4.45%
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.

DSCM 03/24/2011 Walgreen (WAG) All Cash $409 million $3.80 $3.78 632,951 06/30/2011 0.53% 4.29%
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.

TOMO 03/07/2011 Accuray (ARAY) Cash Plus Stock $277 million $4.43 $4.41 504,877 07/31/2011 0.52% 2.50%
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.

TSTY 04/11/2011 Flower Foods (FLO) All Cash $165 million $4.00 $3.98 38,440 06/30/2011 0.50% 4.08%
Details of Tasty Baking Company

Expected to close in the second quarter of the year for a closing value of $165 million. Upon completion of the merger Tasty Baking Company shareholders will receive $4 per share in cash.

NST 10/18/2010 Northeast Utilities (NU) All Stock $4.17 billion $47.14 $46.91 225,808 09/30/2011 0.49% 1.31%
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.

ATHR 01/05/2011 QUALCOMM Incorporated (QCOM) All Cash $3.1 billion $45.00 $44.785 718,785 06/30/2011 0.48% 3.89%
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.

AHII 03/14/2011 Lextron (N/A) All Cash $251 million $4.25 $4.23 99,941 06/30/2011

0.47%

3.84%
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.

SSCC 01/23/2011 Rock-Tenn Co. (RKT) Cash Plus Stock $3.5 billion $39.55 $39.37 1,250,895 06/30/2011 0.47% 3.79%
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.

RVI 02/08/2011 DSW Inc (DSW) All Stock N/A $19.58 $19.49 247,790 06/30/2011 0.44% 3.54%
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.

Update:

May 09, 2011: DSW Inc. Updates Election Deadline for Merger with Retail Ventures, Inc. to May 19, 2011

ASGR 03/03/2011 Valit?s Health Services, Inc. (N/A) All Cash $250 million $26.00 $25.89 29,687 06/30/2011 0.42% 3.45%
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.

FTO 02/22/2011 Holly Corporation (HOC) All Stock $3 billion $27.26 $27.15 3,253,339 09/30/2011

0.40%

1.07%
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.

AMMD 04/11/2011 Endo Pharmaceuticals (ENDP) All Cash $2.9 billion $30.00 $29.89 429,362 09/30/2011 0.37% 0.98%
Details of American Medical Systems Holdings

Expected to close in the third quarter of 2011 for a closing value of $2.9 billion. Upon completion of the merger, American Medical Systems shareholders will receive $30.00 per share in cash.

WMG 05/06/2011 Access Industries (N/A) All Cash $3.3 billion $8.25 $8.22 1,234,503 09/30/2011 0.36% 0.97%
Details of Warner Music Group

Expected to close in the third calendar quarter of 2011 for a closing value of $3.3 billion. Upon completion of the merger, Warner Music Group's shareholders will receive $8.25 per share in cash.

ORCH 04/06/2011 Laboratory Corporation of America Holdings (LH) All Cash $85.4 million $2.80 $2.79 29,799 06/30/2011 0.36% 2.91%
Details of Orchid Cellmark

Expected to close in the second quarter of 2011 for a closing value of $85.4 million. Upon completion of the merger, Orchid Cellmark shareholders will receive $2.80 per share in cash.

SPEC 03/28/2011 API Technologies (N/A) All Cash $270 million $20.00 $19.93 104,999 08/15/2011 0.35% 1.41%
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.

GSIC 03/28/2011 eBay Inc. (EBAY) All Cash $2.4 billion $29.25 $29.15 1,461,730 09/30/2011 0.34% 0.91%
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.

PDE 02/07/2011 Ensco plc (ESV) Cash Plus Stock $7.31 billion $41.43 $41.31 1,704,957 06/30/2011

0.30%

2.45%
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.

SUR 04/21/2011 CNA Financial Corporation (CNA) All Cash N/A $26.55 $26.49 142,357 06/30/2011 0.23% 1.84%
Details of CNA Surety Corporation

Expected to close by the end of the second quarter of 2011. Upon completion of the merger, CNA Surety Corp shareholders will receive $26.55 per share in cash.

VLCM 05/02/2011 PPR (N/A) All Cash $607.5 million $24.50 $24.45 274,001 09/30/2011 0.20% 0.54%
Details of Volcom Inc.

Expected to close in the third quarter of 2011 for a closing value of $607.5 million. Upon completion of the merger, Volcom shareholders will receive $24.50 per share in cash.

BRNC 04/15/2011 Chesapeake (CHK) All Cash $315 million $11.00 $10.98 190,046 06/30/2011 0.18% 1.48%
Details of Bronco Drilling Company

Expected to close in the second quarter of 2011 for a closing value of $315 million. Upon completion of the merger, Bronco Drilling shareholders will receive $11.00 per share in cash.

EMS 02/14/2011 Clayton, Dubilier & Rice (N/A) All Cash $3 billion $64.00 $63.89 353,832 06/30/2011 0.17% 1.40%
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.

VTAL 04/27/2011 Toshiba Medical Systems Corporation (N/A) All Cash $273 million $18.75 $18.72 54,982 09/30/2011 0.16% 0.43%
Details of Vital Images Inc.

Expected to close in the second or third quarter of 2011 for a closing value of $273 million. Upon completion of the merger, Vital Images shareholders will receive $18.75 per share in cash.

TRCI 03/28/2011 Coleman Cable (CCIX) All Cash $51.5 million $7.20 $7.19 29,901 05/31/2011 0.14% 3.38%
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 $37.26 $37.21 184,929 06/30/2011 0.14% 1.13%
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.

TRAD 04/20/2011 Monex Group (N/A) All Cash $411 million $9.75 $9.74 471,869 07/31/2011 0.10% 0.49%
Details of TradeStation Group

Expected to close by the end of July for a closing value of $411 million. Upon completion of the merger, TradeStation shareholders will receive $9.75 per share in cash.

DNEX 12/13/2010 Thermo Fisher Scientific Inc. (TMO) All Cash $2.1 billion $118.50 $118.41 1,544,584 05/31/2011 0.08% 1.85%
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.

PLD 01/31/2011 AMB Property Corporation (AMB) All Stock N/A $15.56 $15.55 4,071,950 06/30/2011 0.05% 0.37%
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.

RAE 01/18/2011 Vector Capital (N/A) All Cash N/A $1.88 $1.88 41,211 06/30/2011

0.00%

0.00%
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.

SVLF 02/03/2011 Cerberus Capital Management (N/A) All Cash $94 million $2.50 $2.50 49,545 05/16/2011 0.00% 0.00%
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.

Update

May 11, 2011: Silverleaf Resorts Shareholders Approve Merger Agreement. Deal expected to close on or about May 16, 2011

EPIC 04/04/2011 Apax Partners (N/A) All Cash $976 million $12.50 $12.50 188,695 06/30/2011

0.00%

0.00%
Details of Epicor Software Corporation

Expected to close in the second quarter of 2011 for a closing value of $976 million. Upon completion of the merger, Epicor shareholders will receive $12.50 per share in cash.

ISPH 04/05/2011 Merck (MRK) All Cash $430 million $5.00 $5.01 983,347 05/31/2011 -0.20% -4.86%
Details of Inspire Pharmaceuticals

Expected to close in May 2011 for a closing value of $430 million. Upon completion of the merger, Inspire Pharmaceutical shareholders will receive $5.00 per share in cash.

DPL 04/19/2011 AES Corporation (AES) All Cash $4.7 billion $30.00 $30.08 802,359 01/31/2012 -0.27% -0.37%
Details of DPL Inc.

Expected to close in six to nine months for a closing value of $4.7 billion. Upon completion of the merger, DPL Inc. shareholders will receive $30.00 per share in cash.

WL 11/01/2010 M & T Bank Corporation (MTB) All Stock $351 million $4.44 $4.45 16,806,562 06/30/2011 -0.27% -2.18%
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 .

CRA 03/18/2011 Quest Diagnostics Incorporated (DGX) All Cash $344 million $8.00 $8.05 795,785 12/31/2011 -0.62% -0.99%
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.

BARI 04/20/2011 Brookline Bancorp (BRKL) Cash Plus Stock $234 million $39.50 $42.94 41,079 12/31/2011 -8.00% -12.76%
Details of Bancorp Rhode Island, Inc.

Expected to close by the end of the year for a closing value of $234 million. Upon completion of the merger, Bancorp Rhode Island shareholders will receive either $48.25 in cash, or 4.686 shares of Brookline Bancorp common stock or a combination thereof, with total cash consideration of approximately $121 million and total stock consideration of approximately 11.0 million shares of Brookline Bancorp common stock.

Elections will be subject to allocation procedures that are intended to ensure that approximately 50% of the outstanding shares of Bancorp Rhode Island common stock will be converted into Brookline Bancorp common stock.

To stay on the conservative side we are treating this transaction as an all stock deal in our Merger Arbitrage tool.

DTG 04/26/2010 Avis (CAR) Cash Plus Stock $1.56 billion $57.70 $81.90 N/A 12/31/2011

-29.54%

-47.09%
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.

Update May 09, 2011: Hertz makes a new $2.24 billion bid for Dollar Thrifty that works out to $72/share.

KSP 03/13/2011 Kirby Corporation (KEX) Special Conditions $335.3 million $4.08 $8.13 10,588 09/30/2011 -49.88% -132.88%
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 $40.89 2,410,659 12/31/2011

-65.94%

-105.10%
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.

ZRAN 02/21/2011 CSR PLC (N/A) All Stock $679 million N/A $8.41 633,268 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.

ALKS 05/09/2011 Elan Corporation (ELAN) Cash Plus Stock $960 million N/A $17.755 N/A 09/30/2011 N/A N/A
Details of Alkermes Inc.

Expected to close in the third quarter of 2011 for a closing value of $960 million. Alkermes (ALKS) has agreed to merge with Elan Drug Technologies, the drug formulation and manufacturing business unit of Elan Corporation (ELN), in a $960 million cash plus stock deal that will lead to the creation of a new company called Alkermes plc incorporated in Ireland. Elan will receive $500 million in cash and 31.9 million shares of the new Alkermes plc common stock. Existing shareholders of Alkermes, Inc. will receive one ordinary share of Alkermes plc in exchange for each share of Alkermes, Inc. they own in a taxable transaction.

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