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Merger activity held steady last week with four new deals announced and three closing. The size of the deals were however much bigger with several multi-billion dollar deals including one of the largest energy deals in history.

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 164
Total Number of Deals Not Completed in 2011 2
Total Number of Pending Deals
Cash Deals 34
Stock Deals 18
Stock & Cash Deals 10
Total Number of Pending Deals 62

New Deals:

  1. The acquisition of Complete Production Services (NYSE:CPX) by Superior Energy Services (SPN) for $2.7 billion in a cash plus stock deal, where Complete stockholders will receive 0.945 common shares of Superior and cash of $7.00 in exchange for each share of Complete common stock held at closing.
  2. The acquisition of BigBand Networks (NASDAQ:BBND) by Arris Group (NASDAQ:ARRS) for approximately $172 million or $2.24 per share in cash.
  3. The acquisition of 99 Cents Only Stores (NYSE:NDN) by affiliates of Ares Management LLC and Canada Pension Plan Investment Board for $1.6 billion or $22.00 per share in cash.
  4. The acquisition of El Paso (EP) by Kinder Morgan (NYSE:KMI) for $21 billion in a cash plus stock deal, where shareholders of El Paso will receive $26.87 per share, which includes $14.65 in cash, 0.4187 of a Kinder share and 0.640 of a warrant.

Closed Deals:

  1. The acquisition of Ness Technologies (NASDAQ:NSTC) by an affiliate of Citi Venture Capital International on October 12, 2011.
  2. The acquisition of APAC Customer Services (NASDAQ:APAC) by One Equity Partners on October 14, 2011.
  3. The acquisition of Cephalon (NASDAQ:CEPH) (CEPH) by Teva Pharmaceuticals (NYSE:TEVA) on October 14, 2011.

Top 10 deals with largest spreads:

Symbol Announced

Date

Acquiring

Company

Closing

Price

Last

Price

Closing

Date

Profit Annualized

Profit

GRAN 04/27/2011 FNB United Corp (FNBN) $1.18 $0.72 10/31/2011 64.06% 1670.20%
EP 10/16/2011 Kinder Morgan, Inc. (KMI) $26.87 $19.59 03/31/2012 37.16% 81.70%
AATI 05/26/2011 Skyworks Solutions, Inc. (NASDAQ:SWKS) $5.63 $4.49 12/31/2011 25.49% 124.04%
MHS 07/21/2011 Express Scripts, Inc. (NASDAQ:ESRX) $61.35 $49.12 06/30/2012 24.89% 35.35%
ALTH 07/20/2011 Amag Pharmaceuticals (NASDAQ:AMAG) $1.88 $1.52 12/31/2011 23.81% 115.90%
TAM 01/19/2011 LAN Airlines S.A. (NYSE:LFL) $20.23 $17.61 12/31/2011 14.89% 72.46%
HRBN 06/20/2011 Tech Full Electric Company Limited (N/A) $24.00 $22.09 12/31/2011 8.65% 42.08%
ABVA 07/27/2011 Eagle Bancorp, Inc. (NASDAQ:EGBN) $5.55 $5.12 12/31/2011 8.43% 41.03%
LOOP 04/27/2011 CoStar Group (NASDAQ:CSGP) $18.56 $17.50 12/31/2011 6.06% 29.50%
GR 09/21/2011 United Technologies Corp. (NYSE:UTX) $127.50 $121.17 06/30/2012 5.22% 7.42%

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 $1.18 $0.72 107,630 10/31/2011 64.06% 1670.20%
Details of Bank of Granite corporation

Expected to close early in the fourth 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% of the then-outstanding shares of common stock, valued at $0.16 a share.

+ EP 10/16/2011 Kinder Morgan, Inc. (KMI) Cash Plus Stock $21 billion $26.87 $19.59 7,887,941 03/31/2012 37.16% 81.70%
Details of El Paso Corp.

Expected to close in early 2012 for a closing value of $21 billion in a cash plus stock deal. Upon completion of the merger, shareholders of El Paso Corporation will receive $26.87 per share, which consists of $14.65 in cash, 0.4187 Kinder Morgan shares — valued at $11.26 per EP share — and 0.640 Kinder Morgan warrants — valued at $0.96 per EP share — based on Kinder Morgan’s closing price on Friday, October 14, 2012.

+ AATI 05/26/2011 Skyworks Solutions, Inc. (SWKS) Cash Plus Stock $258.6 million $5.63 $4.49 113,551 12/31/2011 25.49% 124.04%
Details of Advanced Analogic Technologies, Inc.

Expected to close in the fourth quarter of 2011 for a closing value of $258.6 million in an all stock deal. Upon completion of the merger, Advanced Analogic Technologies shareholders will receive $3.68 in cash and 0.08725 of Skyworks Solutions common stock for each Advanced Analogic Technologies share held.

The stock component of the price has a nominal value of $2.45 for a total value of $6.13. The cash portion will be adjusted higher or reduced at closing based on the stock portion to maintain a total value of $6.13. So for all practical purposes this could be considered an all cash deal.

+ MHS 07/21/2011 Express Scripts, Inc. (ESRX) Cash Plus Stock $29.1 billion $61.35 $49.12 1,700,700 06/30/2012 24.89% 35.35%
Details of Medco Health Solutions

Expected to close in the first half of 2012 for a closing value of $29.1 billion. Upon completion of the merger, Medco shareholders will receive $28.80 in cash and 0.81 shares for each Medco share they own.

+ ALTH 07/20/2011 Amag Pharmaceuticals (AMAG) All Stock $686 million $1.88 $1.52 470,647 12/31/2011 23.81% 115.90%
Details of Allos Therapeutics

Expected to close in the fourth quarter of 2011 for a closing value of $686 million in an all stock deal. Upon completion of the merger, Allos stockholders will receive a fixed ratio of 0.1282 shares of AMAG common stock for each share of Allos common stock they own.

+ TAM 01/19/2011 LAN Airlines S.A. (LFL) All Stock N/A $20.23 $17.61 554,884 12/31/2011 14.89% 72.46%
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 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.

+ HRBN 06/20/2011 Tech Full Electric Company Limited (N/A) All Cash N/A $24.00 $22.09 901,855 12/31/2011 8.65% 42.08%
Details of Harbin Electric

Expected to close in the fourth quarter of 2011. Upon completion of the merger, Harbin Electric shareholders will receive $24.00 per share in cash.

+ ABVA 07/27/2011 Eagle Bancorp, Inc. (EGBN) All Stock $31.2 million $5.55 $5.12 12,807 12/31/2011 8.43% 41.03%
Details of Alliance Bankshares Corporation

Expected to close in the fourth quarter of 2011 for a closing value of $31.2 million in an all stock deal. Upon completion of the merger, Alliance shareholders will receive 0.4317 shares (the “Conversion Ratio”) of Eagle common stock for each share of Alliance common stock subject to adjustment based upon certain factors set forth in the Agreement.

I have analyzed some complex deals in the past but the lengthy list of factors that could affect the conversion ratio of this deal takes the cake. It is therefore not surprising that the spread on the deal is so large. You can find additional information about the adjustment to the “conversion ratio” in this 8-K form filed with the SEC.

+ LOOP 04/27/2011 CoStar Group (CSGP) Cash Plus Stock $860 million $18.56 $17.50 124,080 12/31/2011 6.06% 29.50%
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.

+ GR 09/21/2011 United Technologies Corp. (UTX) All Cash $18.4 billion $127.50 $121.17 2,001,503 06/30/2012 5.22% 7.42%
Details of Goodrich Corp.

Expected to close in mid-2012 for a closing value of $18.4 billion. Upon completion of the merger, shareholders of Goodrich Corporation will receive $127.50 per share in cash.

+ CEG 04/28/2011 Exelon Corporation (NYSE:EXC) All Stock $7.9 billion $40.20 $38.57 1,843,712 01/31/2012 4.24% 14.59%
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.

+ OCNF 07/26/2011 Ocean Rig (DryShips) (NASDAQ:ORIG) Cash Plus Stock $118 million $19.61 $18.87 57,411 12/31/2011 3.93% 19.13%
Details of OceanFreight, Inc.

Expected to close in the fourth quarter of 2011 for a closing value of $118 million in a cash plus stock deal. Upon completion of the merger, Ocean Freight’s shareholders will receive $11.25 in cash and 0.52326 of a share of common stock of Ocean Rig UDW Inc., a global provider of offshore ultra deepwater drilling services that is 78% owned by DryShips. Ocean Rig shares will be listed on the Nasdaq Global Select Market upon the closing of the merger.

Update October 6, 2011: Ocean Rig was spun off from Dryships and started trading on the Nasdaq on October 6, 2011.

+ BFSB 08/17/2011 Investors Bancorp, Inc. (NASDAQ:ISBC) All Cash $10.3 million $0.80 $0.77 N/A 12/31/2011 3.90% 18.96%
Details of Brooklyn Federal Bancorp

Expected to close in the fourth quarter of 2011 for a closing value of $10.3 million. Upon completion of the merger, Brooklyn Federal Bancorp’s shareholders will receive $0.80 per share in cash.

+ ORCH 04/06/2011 Laboratory Corporation of America Holdings (NYSE:LH) All Cash $85.4 million $2.80 $2.70 39,224 10/31/2011 3.70% 96.56%
Details of Orchid Cellmark

Expected to close early in the fourth 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.

+ MMI 08/15/2011 Google (NASDAQ:GOOG) All Cash $12.5 billion $40.00 $38.72 13,568,284 01/31/2012 3.31% 11.38%
Details of Motorola Mobility Holdings, Inc.

Expected to close by the end of 2011 or early 2012 for a closing value of $12.5 billion. Upon completion of the merger, shareholders of Motorola Mobility Holdings will receive $40.00 per share in cash.

+ ACMR 10/04/2011 affiliate of Sbar’s Inc (N/A) All Cash $40.8 million $1.60 $1.55 144,561 12/31/2011 3.23% 15.70%
Details of AC Moore Arts & Crafts Inc.

Expected to close in the fourth quarter of 2011 for a closing value of 440.8 million. Upon completion of the merger, shareholders of AC Moore Arts & Crafts Inc. will receive $1.60 per share in cash.

+ NETL 09/12/2011 Broadcom (NASDAQ:BRCM) All Cash $3.7 billion $50.00 $48.50 2,598,182 06/30/2012 3.09% 4.39%
Details of NetLogic Microsystems Inc.

Expected to close in the first half of 2012 for a closing value of $3.7 billion. Upon completion of the merger, shareholders of NetLogic Microsystems will receive $50.00 per share in cash.

+ TGE 10/31/2011 Dawson Geophysical Company (NASDAQ:DWSN) All Stock $157 million $5.26 $5.11 35,103 10/31/2011 3.01% 78.57%
Details of TGC Industries

Expected to close early in the fourth 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 10 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.

+ CPX 10/10/2011 Superior Energy Services (NYSE:SPN) Cash Plus Stock $2.7 billion $32.16 $31.23 3,689,831 12/31/2011 2.96% 14.43%
Details of Complete Production Services

Expected to close by the end of 2011 for a closing value of $2.7 billion in a cash plus stock deal, where Complete stockholders will receive 0.945 common shares of Superior and cash of $7.00 in exchange for each share of Complete common stock held at closing.

+ HNB 06/02/2011 BankUnited Inc. (NYSE:BKU) Cash Plus Stock $71.4 million $3.37 $3.28 100 12/31/2011 2.85% 13.88%
Details of Herald National Bank

Expected to close in the fourth quarter of 2011 for a closing value of $71.4 million. Upon completion of the merger, Herald National Bank shareholders will receive either cash or BankUnited common stock with a value of $1.35 in cash and 0.099 shares of BankUnited common stock, subject to proration.

+ PGN 01/10/2011 Duke Energy Corporation (NYSE:DUK) All Stock $13.7 billion $52.04 $50.66 1,678,913 12/31/2011 2.73% 13.27%
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.

+ CONM 07/12/2011 Ayelet Investments (N/A) All Cash $57.2 million $3.85 $3.76 15,400 12/31/2011 2.39% 11.65%
Details of Conmed Healthcare Management

Expected to close in the fourth quarter of 2011 for a closing value of $57.2 million. Upon completion of the merger, Conmed Healthcare Management’s shareholders will receive $3.85 per share in cash.

+ CFSG 05/20/2011 Bain Capital Partners (N/A) All Cash $265.5 million $9.00 $8.80 70,464 11/15/2011 2.27% 28.61%
Details of China Fire & Security Group, Inc.

Expected to close by November 15, 2011 for a closing value of $265.5 million. Upon completion of the merger, China Fire and Security Group shareholders will receive $9.00 per share in cash.

+ GLA 09/01/2011 The Gores Group (N/A) All Cash N/A $0.46 $0.45 1,200 12/31/2011 2.22% 10.81%
Details of Clark Holdings

Expected to close by the end of the year. Upon completion of the merger, shareholders of Clark Holdings will receive $0.46 per share in cash.

+ NDN 10/11/2011 affiliates of Ares Management LLC and Canada Pension Plan Investment Board (N/A) All Cash $1.6 billion $22.00 $21.56 3,844,058 03/31/2012 2.04% 4.49%
Details of 99

Expected to close in the first quarter of 2011 for a closing value of $1.6 billion. Upon completion of the merger, shareholders of 99 will receive $22.00 per share in cash.

+ PVSA 06/15/2011 F.N.B. Corporation (NYSE:FNB) All Stock $130 million $20.19 $19.81 1,000 12/31/2011 1.92% 9.34%
Details of Parkvale Financial Corporation

Expected to close in the fourth quarter of 2011 for a closing value of $130 million in an all stock deal. Upon completion of the merger, Parkvale Financial Corporation’s shareholders will receive 2.178 shares of F.N.B. Corporation common stock for each share of Parkvale Financial Corporation stock.

+ ENP 07/11/2011 Vanguard Natural Resources (NASDAQ:VNR) All Stock $545 million $20.42 $20.04 104,581 12/31/2011 1.91% 9.29%
Details of Encore Energy Partners

Expected to close by the end of the year for a closing value of $545 million in an all stock deal, where Encore’s public unitholders would receive 0.75 Vanguard common units in exchange for each Encore common unit they own.

+ HGIC 09/29/2011 Nationwide Mutual Insurance Co (N/A) All Cash $760 million $60.00 $58.88 63,982 01/31/2012 1.90% 6.55%
Details of Harleysville Group Inc.

Expected to close in early 2012 for a closing value of $760 million. Upon completion of the merger, shareholders of Harleysville Group will receive $60.00 per share in cash.

+ NXG 08/29/2011 AuRico Gold Inc. (NYSE:AUQ) All Stock $1.46 billion $3.78 $3.71 1,561,260 10/31/2011 1.83% 47.61%
Details of Northgate Minerals Corp.

Expected to close in October 2011 for a closing value of $1.46 billion in an all stock deal where shareholders of Northgate Minerals will receive 0.365 AuRico common shares per Northgate common share.

+ CLFC 12/09/2010 Nara Bancorp Inc. (NARA) All Stock $285.7 million $5.25 $5.16 56,344 11/30/2011 1.78% 14.81%
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.

+ PNNW 11/12/2010 City of Nashua (N/A) All Cash $138 million $29.00 $28.50 4,880 12/31/2011 1.75% 8.54%
Details of Pennichuk Corporation

Expected to close in the fourth 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.

+ TIN 09/06/2011 International Paper (NYSE:IP) All Cash $4.3 billion $32.00 $31.50 2,914,010 03/31/2012 1.59% 3.49%
Details of Temple-Inland

Expected to close in the first quarter of 2012 for a closing value of $4.3 billion. Upon completion of the merger, shareholders of Temple-Inland will receive $32.00 per share in cash.

+ AMAC 09/22/2011 Tunstall Healthcare Group Limited (N/A) All Cash $82.3 million $8.55 $8.43 37,790 12/31/2011 1.42% 6.93%
Details of American Medical Alert Corp.

Expected to close in the fourth quarter of 2011 for a closing value of $82.3 million or $8.55 per share in cash.

+ VSEA 05/04/2011 Applied Materials Inc. (NASDAQ:AMAT) All Cash $4.9 billion $63.00 $62.34 913,585 11/15/2011 1.06% 13.33%
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.

+ AHCI 07/29/2011 Saga Group Limited (N/A) All Cash $175 million $3.90 $3.86 60,635 12/31/2011 1.04% 5.04%
Details of Allied Healthcare International Inc.

Expected to close in the fourth calendar quarter of 2011 for a closing value of $175 million. Upon completion of the merger, Allied Healthcare International’s shareholders will receive $3.90 per share in cash.

+ SONE 10/03/2011 ACI Worldwide (NASDAQ:ACIW) Cash Plus Stock $516 million $9.67 $9.58 1,708,326 12/31/2011 0.98% 4.76%
Details of S1 Corporation

Expected to close in the fourth quarter of 2011 for a closing value of $516 million. Upon completion of the merger, S1 shareholders will receive $6.62 in cash and 0.1064 shares of ACI Worldwide common stock per S1 share held, subject to proration such that in the aggregate 33.8% of S1 shares are exchanged for ACI Worldwide shares and 66.2% are exchanged for cash.

+ PMIC 09/08/2011 Ace (NYSE:ACE) All Cash N/A $20.30 $20.12 2,900 03/31/2012 0.89% 1.97%
Details of Penn Millers Holding Corporation

Expected to close in the first quarter of 2012. Upon completion of the merger, Penn Millers Holding Corporation will receive $20.30 per share in cash.

+ MFW 09/12/2011 MacAndrews and Forbes (N/A) All Cash N/A $25.00 $24.78 86,412 12/31/2011 0.89% 4.32%
Details of M&F Worldwide Corp.

Expected to close in the fourth quarter of 2011. Upon completion of the merger, shareholders of M&F Worldwide will receive $25.00 per share in cash.

+ GLBL 09/12/2011 Technip (N/A) All Cash $1.1 billion $8.00 $7.93 1,071,321 01/31/2012 0.88% 3.04%
Details of Global Industries Ltd.

Expected to close in early 2012 for a closing value of $1.1 billion. Upon completion of the merger, shareholders of Global Industries will receive $8.00 per share in cash.

+ KCI 07/13/2011 Consortium of Funds (N/A) All Cash $6.3 billion $68.50 $67.98 2,099,836 12/31/2011 0.76% 3.72%
Details of Kinetic Concepts, Inc.

Expected to close in the second half of 2011 in an all cash deal. Upon completion of the merger, Kinetic Concepts shareholders will receive $68.50 per share.

+ FNDT 06/27/2011 GTCR (N/A) All Cash $352.7 $23.33 $23.16 8,201 12/31/2011 0.73% 3.57%
Details of Fundtech Ltd.

The original deal with S1 was expected to close in the fourth quarter of 2011 in an all stock deal, where Fundtech shareholders will receive 2.72 shares of S1 common stock for each Fundtech ordinary share they own.

Update August 2, 2011: SONE received a $540 million buyout offer from ACI Worldwide, which was rejected by the SONE board in favor of the Fundtech deal.

Update September 16, 2011: Fundtech decided to go with an all cash deal from private equity firm GTCR valued at $352.7 million or $23.33 per share and decided to terminate its agreement with S1.

+ STBC 04/28/2011 Valley National Bancorp (NYSE:VLY) All Stock $222 million $11.40 $11.32 27,440 10/31/2011 0.71% 18.43%
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.

+ GAS 12/07/2010 AGL Resources Inc. (AGL) Cash Plus Stock $2.4 billion $55.72 $55.38 316,703 11/15/2011 0.61% 7.66%
Details of Nicor Inc.

Expected to close in the fourth 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.

+ PPDI 10/03/2011 affiliates of The Carlyle Group and Hellman & Friedman (N/A) All Cash $3.9 billion $33.25 $33.05 7,258,973 12/31/2011 0.61% 2.95%
Details of Pharmaceutical Product Development Inc.

Expected to close in the fourth quarter of 2011 for a closing value of $3.9 billion. Upon completion of the merger, shareholders of Pharmaceutical Product Development will rewceive $33.25 per share in cash.

+ CALP 09/08/2011 PerkinElmer Inc. (NYSE:PKI) All Cash $600 million $10.50 $10.46 483,645 12/31/2011 0.38% 1.86%
Details of Caliper Life Sciences, Inc.

Upon completion of the merger, shareholders of Caliper Life Sciences will receive $10.50 per share in cash.

+ TLVT 06/01/2011 Schneider Electric (N/A) All Cash $2.02 billion $40.00 $39.85 28,722 12/31/2011 0.38% 1.83%
Details of Telvent Git S.A.

Expected to close in the fourth quarter of 2011 for a closing value of $2.02 billion. Upon completion of the merger, Telvent’s shareholders will receive $40.00 per share in cash.

+ ICGN 07/20/2011 Pfizer Inc. (NYSE:PFE) All Cash $56 million $6.00 $5.98 16,658 12/31/2011 0.33% 1.63%
Details of ICAgen Inc.

Expected to close before the end of the year for a closing value of $56 million. Upon completion of the merger, Icagen shareholders will receive $6.00 per share in cash.

+ OTC:SWTX 10/07/2011 Solutia Inc. (NYSE:SOA) All Cash $113 million $13.60 $13.56 58,710 12/31/2011 0.29% 1.44%
Details of Southwall Technologies Inc.

Expected to close in the fourth quarter of 2011 for a closing value of $113 million. Upon completion of the merger, shareholders of Southwall Technologies will receive $13.60 per share in cash.

+ FPIC 05/24/2011 The Doctors Company (N/A) All Cash $362 million $42.00 $41.92 52,574 12/31/2011 0.19% 0.93%
Details of FPIC Insurance Group Inc.

Expected to close in the fourth quarter of 2011 for a closing value of $362 million. Upon completion of the merger, FPIC Group shareholders will receive $42.00 per share in cash.

+ ARJ 07/11/2011 Lonza Group Ltd (N/A) All Cash $1.4 billion $47.20 $47.12 486,136 12/31/2011 0.17% 0.83%
Details of Arch Chemicals Inc.

Expected to close later in 2011 for a closing value of $1.4 billion. Upon completion of the merger, Arch Chemicals shareholders will receive $47.20 per share in cash.

+ EM 08/04/2011 Blackstone (N/A) All Cash $3 billion $19.00 $18.97 761,254 12/31/2011 0.16% 0.77%
Details of Emdeon Inc.

Expected to close in the second half of 2011 for a closing value of $3 billion. Upon completion of the merger, Emdeon’s shareholders will receive $19.00 per share in cash.

+ CV 07/12/2011 Gaz metro Limited Partnership (N/A) All Cash $702 million $35.25 $35.20 80,780 12/31/2011 0.14% 0.69%
Details of Central Vermont Public Service Corp.

On July 12, 2011, Central Vermont Public Services terminated its agreement with Fortis after deeming “superior” the offer from Gaz Métro.

Expected to close in six to twelve months for a closing value of $702 million. Upon completion of the merger, Central Vermont Public Services shareholders will receive $35.25 per share in cash.

+ NLC 07/20/2011 Ecolab Inc. (NYSE:ECL) All Stock $5.4 billion $36.98 $36.97 2,999,805 12/31/2011 0.03% 0.12%
Details of Nalco Holdings Co.

Expected to close in the fouth quarter of 2011 for a closing value of $5.4 billion. Upon completion of the merger, Nalco’s shareholders may elect to receive either 0.7005 share of Ecolab common stock per share of Nalco common stock or $38.80 in cash, without interest, per share of Nalco common stock. The overall mix of consideration paid to Nalco shareholders will be approximately 30% cash and 70% stock.

+ DPL 04/19/2011 AES Corporation (NYSE:AES) All Cash $4.7 billion $30.00 $30.25 643,082 01/31/2012 -0.83% -2.85%
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.

+ NST 10/18/2010 Northeast Utilities (NYSE:NU) All Stock $4.17 billion $43.70 $44.08 297,420 10/31/2011 -0.86% -22.31%
Details of NSTAR

Expected to close in the fourth 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.

+ BBND 10/11/2011 Arris Group Inc. (ARRS) All Cash $172 million $2.24 $2.26 460,380 12/31/2011 -0.88% -4.31%
Details of BigBand Networks, Inc.

Expected to close in late 2011 for a closing value of approximately $172 million. Upon completion of the merger, shareholders of BigBand networks will receive $2.24 per share in cash.q

+ PAET 08/01/2011 Windstream Corp. (NASDAQ:WIN) All Stock $2.3 billion $5.45 $5.59 917,816 01/31/2012 -2.49% -8.56%
Details of PAETEC Holding Corp.

Expected to close in the next six months for a closing value of $2.3 billion in an all stock deal. Upon completion of the merger, PAETEC shareholders will receive 0.460 shares of Windstream common stock for each PAETEC share owned.

+ TOBC 06/20/2011 Susquehanna Bancshares (NASDAQ:SUSQ) All Stock $343 million $21.34 $22.88 15,475 03/31/2012 -6.74% -14.82%
Details of Tower Bancorp

Expected to close in the first quarter of 2012 for a closing value of $343 million in a cash or stock transaction, where Tower Bancorp shareholders will receive either 3.4696 shares of Susquehanna Bancshares common stock or $28.00 in cash per share held with $88 million of the aggregate consideration being paid in cash. Since a majority of the consideration will be paid out as stock, we have classified this deal as an all stock deal in our Merger Arbitrage Tool.

+ RLRN 08/16/2011 Permira Funds (N/A) All Cash $455 million $15.50 $16.68 96,796 12/31/2011 -7.07% -34.43%
Details of Renaissance Learning Inc.

Expected to close in the fourth quarter of 2011 for a closing value of $440 million. Upon completion of the merger, Renaissance Learning’s shareholders will receive $14.85 per share in cash.

Update(s)

September 27, 2011: Renaissance Learning Inc agreed to be bought by Permira Funds for about $455 million or $15.50 per share in cash in cash, after the private equity firm sweetened its offer to match a rival takeover bid from Plato Learning.

+ BARI 04/20/2011 Brookline Bancorp (NASDAQ:BRKL) Cash Plus Stock $234 million $39.13 $44.13 3,860 12/31/2011 -11.33% -55.16%
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.

+ SUG 06/16/2011 Energy Transfer Equity (NYSE:ETE) All Stock $9.4 billion $35.71 $40.79 1,348,475 03/31/2012 -12.45% -27.38%
Details of Southern Union Company

Expected to close in the first quarter of 2012 for a closing value of $7.9 billion. Upon completion of the merger, Southern Union Company’s shareholders will receive $33.00 per share in series B units of ELMG. These series B units are expected to list on the NYSE and will have an annualized distribution yield of 8.25%. ETE has the option to redeem the Series B Units at any time after the closing of the transaction.

Update(s)

June 24, 2011: Southern Union Company received a proposal by The Williams Companies to acquire all of the outstanding shares of Southern Union for $39.00 per share in cash.

July 05, 2011: Energy Transfer Equity, L.P. and Southern Union Company announced that they have entered into an amended and restated merger agreement under which ETE will acquire SUG for $8.9 billion, including $5.1 billion in cash and ETE common units.

Under the terms of the revised agreement, which has been unanimously approved by the boards of directors of both companies, SUG shareholders can elect to exchange their common shares for $40.00 of cash or 0.903 ETE common units. The maximum cash component is 60% of the aggregate consideration and the common unit component can fluctuate between 40% and 50%. Elections in excess of either the cash or common unit limits will be subject to proration.

July 14, 2011: Southern Union Company confirmed receipt of a revised proposal by The Williams Companies to acquire all of the outstanding shares of Southern Union for $44.00 per share in cash.

July 19, 2011: Energy Transfer Equity upped its bid for Southern Union to $44.25 a share for an enterprise value of $9.4 billion including debt. Shareholders can elect to receive either $44.25 per share cash or one unit of ETE, with 60% of the new bid payable in cash. To keep things conservative, we are treating this deal as an all stock deal.

+ NYX 02/15/2011 Deutsche Boerse (N/A) All Stock N/A $13.93 $27.50 2,744,528 12/31/2011 -49.36% -240.22%
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 (NASDAQ:NDAQ) and ICE have made a joint offer for NYSE Euronext (NYSE:NYX) that is worth $43 as of April 1, 2011.

Source: Merger Arbitrage Mondays: October 17, 2011