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Merger activity increased last week with five 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 172
Total Number of Deals Not Completed in 2011 4
Total Number of Pending Deals
Cash Deals 34
Stock Deals 16
Stock & Cash Deals 10
Total Number of Pending Deals 60

New Deals:

  1. The acquisition of Healthspring (HS-OLD) by Cigna (CI) for $3.8 billion or $55.00 per share in cash.
  2. The acquisition of RightNow (RNOW) by Oracle (ORCL) for $1.3 billion or $43.00 per share in cash.
  3. The acquisition of Adolor (ADLR) by Cubist Pharmaceuticals (CBST) for $190 million or $4.25 per share in cash. In addition to the upfront cash payment, each Adolor stockholder will receive one Contingent Payment Right (CPR), entitling the holder to receive additional cash payments of up to $4.50 for each share they own if certain regulatory approvals and/or commercialization milestones for ADL5945 are achieved.
  4. The acquisition of China Advanced Construction Materials Group (CADC) by Novel Gain Holdings Limited, CACMG Acquisition and members of the management team for $2.65 per share in cash. Essentially this is a going private transaction with CADC emerging as the surviving entity.
  5. The acquisition of The Connecticut Bank and Trust Company (CTBC) by Berkshire Hills Bancorp (BHLB) for $30 million in an all stock deal, where shareholders of The Connecticut Bank and Trust Company will receive either $8.25 per share in cash, or 0.3810 shares of Berkshire Hills Bancorp per share held. Under the terms of the merger agreement, 70% of the outstanding CBT shares will be exchanged for Berkshire shares at a fixed exchange ratio of 0.3810 Berkshire shares for each share of CBT. The remaining 30% of CBT shares will be exchanged for cash in the amount of $8.25 per share. Since the majority of shareholders will receive stock, we have classified this as an all stock deal.

Deal Updates:

  1. On October 28, 2011, Dawson Geophysical Company (DWSN) announced that TGC Industries (TGE) had terminated the definitive merger agreement pursuant to which Dawson would have acquired TGC in a tax-free stock-for-stock transaction.
  2. Chilean airline LAN and Brazil’s TAM have started to define the corporate structure of the group they will merge to create one of the world’s largest airlines. According to Reuters, a small Chilean airline dropped its appeal against larger rival LAN’s planned takeover of TAM, removing a major hurdle to the deal.

Closed Deals:

  1. The acquisition of Bank of Granite Corporation (GRAN) by FNB United Corp (FNBN) on October 24, 2011.
  2. The acquisition of Northgate Minerals Corporation (NXG) by AuRico Gold (AUQ) on October 26, 2011.
  3. The acquisition of Icagen (ICGN) by Pfizer (PFE) on October 28, 2011.

Top 10 deals with largest spreads:

Symbol Announced

Date

Acquiring

Company

Closing

Price

Last

Price

Closing

Date

Profit Annualized

Profit

AATI 05/26/2011 Skyworks Solutions, Inc. (SWKS) $5.45 $4.45 12/31/2011 22.48% 134.50%
MHS 07/21/2011 Express Scripts, Inc. (ESRX) $66.63 $55.50 06/30/2012 20.05% 30.11%
CADC 10/24/2011 Novel Gain Holdings Limited (N/A) $2.65 $2.26 03/31/2012 17.26% 41.44%
VTRO 10/17/2011 Inuvo, Inc. (INUV) $2.07 $1.79 03/31/2012 15.73% 37.78%
ABVA 07/27/2011 Eagle Bancorp, Inc. (EGBN) $6.16 $5.50 12/31/2011 12.01% 71.84%
TAM 01/19/2011 LAN Airlines S.A. (LFL) $23.32 $20.86 12/31/2011 11.79% 70.54%
EP 10/16/2011 Kinder Morgan, Inc. (KMI) $27.79 $25.44 03/31/2012 9.25% 22.22%
HRBN 06/20/2011 Tech Full Electric Company Limited (N/A) $24.00 $22.55 12/31/2011 6.43% 38.48%
LOOP 04/27/2011 CoStar Group (CSGP) $18.81 $17.80 12/31/2011 5.68% 33.98%
CEG 04/28/2011 Exelon Corporation (EXC) $41.45 $39.80 01/31/2012 4.15% 16.45%

List of all pending deals:

Symbol Announced

Date

Acquiring

Company

Deal

Type

Closing

Value

Closing

Price

Last

Price

Volume Closing

Date

Profit Annu.

Profit

+ AATI 05/26/2011 Skyworks Solutions, Inc. (SWKS) Cash Plus Stock $258.6 million $5.45 $4.45 180,666 12/31/2011 22.48% 134.50%
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 $66.63 $55.50 4,837,125 06/30/2012 20.05% 30.11%
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.

+ CADC 10/24/2011 Novel Gain Holdings Limited (N/A) All Cash N/A $2.65 $2.26 118,288 03/31/2012 17.26% 41.44%
Details of China Advanced Construction Materials Group, Inc.

Expected to close in the first quarter of 2012. Upon completion of the merger, China Advanced Construction Materials Group shareholders will receive $2.65 per share in cash.

Essentially this is a going private transaction with CADC emerging as the surviving entity.

+ VTRO 10/17/2011 Inuvo, Inc. (INUV) All Stock N/A $2.07 $1.79 39,798 03/31/2012 15.73% 37.78%
Details of Vertro, Inc.

Expected to close in the fourth quarter of 2011 or the first quarter of 2012. Upon completion of the merger, shareholders of Vertro will receive 1.546 shares of Inuvo common stock per each share of Vertro common stock.

+ ABVA 07/27/2011 Eagle Bancorp, Inc. (EGBN) All Stock $31.2 million $6.16 $5.50 9,253 12/31/2011 12.01% 71.84%
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.

+ TAM 01/19/2011 LAN Airlines S.A. (LFL) All Stock N/A $23.32 $20.86 494,595 12/31/2011 11.79% 70.54%
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.

+ EP 10/16/2011 Kinder Morgan, Inc. (KMI) Cash Plus Stock $21 billion $27.79 $25.44 12,271,799 03/31/2012 9.25% 22.22%
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.

+ HRBN 06/20/2011 Tech Full Electric Company Limited (N/A) All Cash N/A $24.00 $22.55 760,011 12/31/2011 6.43% 38.48%
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.

+ LOOP 04/27/2011 CoStar Group (CSGP) Cash Plus Stock $860 million $18.81 $17.80 223,279 12/31/2011 5.68% 33.98%
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.

+ CEG 04/28/2011 Exelon Corporation (EXC) All Stock $7.9 billion $41.45 $39.80 5,344,204 01/31/2012 4.15% 16.45%
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.

+ GR 09/21/2011 United Technologies Corp. (UTX) All Cash $18.4 billion $127.50 $122.73 1,886,640 06/30/2012 3.89% 5.84%
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.

+ ORCH 04/06/2011 Laboratory Corporation of America Holdings (LH) All Cash $85.4 million $2.80 $2.70 215,977 10/31/2011 3.70% 0.00%
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.

+ CTBC 10/26/2011 Berkshire Hills Bancorp, Inc. (BHLB) All Stock $30 million $7.78 $7.50 102,375 04/30/2012 3.68% 7.39%
Details of The Connecticut Bank and Trust

Expected to close early in the second quarter of 2012 for a closing value of $30 million in an all stock deal. Upon completion of the merger, The Connecticut Bank and Trust Company shareholders will receive either $8.25 per share in cash, or 0.3810 shares of Berkshire Hills Bancorp per share held.

Under the terms of the merger agreement, 70% of the outstanding CBT shares will be exchanged for Berkshire shares at a fixed exchange ratio of 0.3810 Berkshire shares for each share of CBT. The remaining 30% of CBT shares will be exchanged for cash in the amount of $8.25 per share.

+ HNB 06/02/2011 BankUnited Inc. (BKU) Cash Plus Stock $71.4 million $3.54 $3.42 N/A 12/31/2011 3.45% 20.63%
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.

+ MMI 08/15/2011 Google (GOOG) All Cash $12.5 billion $40.00 $38.96 2,897,862 01/31/2012 2.67% 10.59%
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.

+ BFSB 08/17/2011 Investors Bancorp, Inc. (ISBC) All Cash $10.3 million $0.80 $0.78 N/A 12/31/2011 2.56% 15.34%
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.

+ CPX 10/10/2011 Superior Energy Services (SPN) Cash Plus Stock $2.7 billion $35.18 $34.43 1,584,167 12/31/2011 2.18% 13.03%
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.

+ PVSA 06/15/2011 F.N.B. Corporation (FNB) All Stock $130 million $22.43 $22.00 27,587 12/31/2011 1.97% 11.79%
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.

+ PGN 01/10/2011 Duke Energy Corporation (DUK) All Stock $13.7 billion $53.45 $52.43 1,234,264 12/31/2011 1.95% 11.66%
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.

+ CFSG 05/20/2011 Bain Capital Partners (N/A) All Cash $265.5 million $9.00 $8.86 44,417 11/15/2011 1.58% 38.45%
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.

+ PAET 08/01/2011 Windstream Corp. (WIN) All Stock $2.3 billion $5.64 $5.56 751,601 01/31/2012 1.51% 6.01%
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.

+ HS-OLD 10/24/2011 Cigna (CI) All Cash $3.8 billion $55.00 $54.18 1,520,855 06/30/2012 1.51% 2.27%
Details of HealthSpring Inc.

Expected to close in the first half of 2012 for a closing value of $3.8 billion. Upon completion of the merger, shareholders of Healthspring will receive $55.00 per share in cash.

+ NETL 09/12/2011 Broadcom (BRCM) All Cash $3.7 billion $50.00 $49.28 744,081 06/30/2012 1.46% 2.19%
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.

+ FNDT 06/27/2011 GTCR (N/A) All Cash $352.7 $23.33 $23.00 36,446 12/31/2011 1.43% 8.59%
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 (ACIW), 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.

+ OCNF 07/26/2011 Ocean Rig (DryShips) (ORIG) Cash Plus Stock $118 million $19.27 $19.00 71,509 12/31/2011 1.40% 8.39%
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.

+ PNNW 11/12/2010 City of Nashua (N/A) All Cash $138 million $29.00 $28.60 9,139 12/31/2011 1.40% 8.37%
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.

+ STBC 04/28/2011 Valley National Bancorp (VLY) All Stock $222 million $12.31 $12.15 99,320 10/31/2011 1.32% 0.00%
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.

+ ENP 07/11/2011 Vanguard Natural Resources (VNR) All Stock $545 million $21.99 $21.74 110,115 12/31/2011 1.15% 6.88%
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 $59.36 82,359 01/31/2012 1.08% 4.28%
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.

+ CONM 07/12/2011 Ayelet Investments (N/A) All Cash $57.2 million $3.85 $3.81 20,900 12/31/2011 1.05% 6.28%
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.

+ MFW 09/12/2011 MacAndrews and Forbes (N/A) All Cash N/A $25.00 $24.77 241,014 12/31/2011 0.93% 5.56%
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.

+ NDN 10/11/2011 affiliates of Ares Management LLC and Canada Pension Plan Investment Board (N/A) All Cash $1.6 billion $22.00 $21.80 2,308,033 03/31/2012 0.92% 2.20%
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.

+ CLFC 12/09/2010 Nara Bancorp Inc. (NARA) All Stock $285.7 million $6.69 $6.63 141,564 11/30/2011 0.88% 10.65%
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.

+ ANDS 10/17/2011 Roche (N/A) All Cash $230 million $3.70 $3.67 525,771 12/31/2011 0.82% 4.89%
Details of Anadys Pharmaceuticals Inc.

Expected to close in the fourth quarter of 2011 for a closing value of $230 million. Upon completion of the merger, shareholders of Anadys Pharmaceuticals will receive $3,70 per share in cash.

+ PPDI 10/03/2011 affiliates of The Carlyle Group and Hellman & Friedman (N/A) All Cash $3.9 billion $33.25 $32.99 3,370,949 12/31/2011 0.79% 4.72%
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.

+ SONE 10/03/2011 ACI Worldwide (ACIW) Cash Plus Stock $516 million $9.97 $9.90 1,290,495 12/31/2011 0.66% 3.94%
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.

+ ACMR 10/04/2011 affiliate of Sbar’s Inc (N/A) All Cash $40.8 million $1.60 $1.59 87,236 12/31/2011 0.63% 3.76%
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.

+ TIN 09/06/2011 International Paper (IP) All Cash $4.3 billion $32.00 $31.80 777,142 03/31/2012 0.63% 1.51%
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.

+ GLBL 09/12/2011 Technip (N/A) All Cash $1.1 billion $8.00 $7.95 1,610,016 01/31/2012 0.63% 2.50%
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.

+ NLC 07/20/2011 Ecolab Inc. (ECL) All Stock $5.4 billion $38.53 $38.32 854,121 12/31/2011 0.54% 3.24%
Details of Nalco Holdings Co.

Expected to close in the fourth 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.

+ VSEA 05/04/2011 Applied Materials Inc. (AMAT) All Cash $4.9 billion $63.00 $62.80 515,961 11/15/2011 0.32% 7.75%
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.

+ CALP 09/08/2011 PerkinElmer Inc. (PKI) All Cash $600 million $10.50 $10.47 606,872 12/31/2011 0.29% 1.71%
Details of Caliper Life Sciences, Inc.

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

+ KCI 07/13/2011 Consortium of Funds (N/A) All Cash $6.3 billion $68.50 $68.38 1,662,290 12/31/2011 0.18% 1.05%
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.

+ EM 08/04/2011 Blackstone (N/A) All Cash $3 billion $19.00 $18.97 1,239,609 12/31/2011 0.16% 0.95%
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.

+ BEXP 10/17/2011 Statoil ASA (STO) All Cash $4.4 billion $36.50 $36.49 5,885,046 03/31/2012 0.03% 0.07%
Details of Brigham Exploration Co.

Expected to close late in 2011 or early in 2012 for a closing value of $4.4 billion. Upon completion of the merger, shareholders of Brigham Exploration Company will receive $36.50 per share in cash.

+ GAS 12/07/2010 AGL Resources Inc. (AGL) Cash Plus Stock $2.4 billion $57.24 $57.23 251,431 11/15/2011 0.02% 0.54%
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.

+ GLA 09/01/2011 The Gores Group (N/A) All Cash N/A $0.46 $0.46 600 12/31/2011 0.00% 0.00%
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.

+ BBND 10/11/2011 Arris Group Inc. (ARRS) All Cash $172 million $2.24 $2.24 350,373 12/31/2011 0.00% 0.00%
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

+ OTC:SWTX 10/07/2011 Solutia Inc. (SOA) All Cash $113 million $13.60 $13.61 52,501 12/31/2011 -0.07% -0.44%
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.

+ PMIC 09/08/2011 Ace (ACE) All Cash N/A $20.30 $20.32 3,991 03/31/2012 -0.10% -0.24%
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.

+ NST 10/18/2010 Northeast Utilities (NU) All Stock $4.17 billion $45.37 $45.42 319,039 10/31/2011 -0.11% 0.00%
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.

+ RNOW 10/24/2011 Oracle (ORCL) All Cash $1.5 billion $43.00 $43.10 1,321,707 03/31/2012 -0.23% -0.56%
Details of Rightnow Technologies Inc.

Expected to close by late 2011 or early 2012 for a closing value of $1.5 billion. Upon completion of the merger, shareholders of RightNow will receive $43.00 per share in cash.

+ AMAC 09/22/2011 Tunstall Healthcare Group Limited (N/A) All Cash $82.3 million $8.55 $8.57 77,302 12/31/2011 -0.23% -1.40%
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.

+ CV 07/12/2011 Gaz metro Limited Partnership (N/A) All Cash $702 million $35.25 $35.40 46,053 12/31/2011 -0.42% -2.54%
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.

+ TOBC 06/20/2011 Susquehanna Bancshares (SUSQ) All Stock $343 million $25.88 $26.15 31,058 03/31/2012 -1.02% -2.45%
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.

+ DPL 04/19/2011 AES Corporation (AES) All Cash $4.7 billion $30.00 $30.36 522,810 01/31/2012 -1.19% -4.70%
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.

+ ADLR 10/24/2011 Cubist Pharmaceuticals (CBST) All Cash $190 million $4.25 $4.49 326,461 12/31/2011 -5.35% -31.98%
Details of Adolor Corp.

Expected to close in the fourth quarter of 2011 for a closing value of $190 million. Upon completion of the merger, shareholders of Adolor will receive $4.25 per share in cash.

In addition to the upfront cash payment, each Adolor stockholder will receive one Contingent Payment Right (CPR), entitling the holder to receive additional cash payments of up to $4.50 for each share they own if certain regulatory approvals and/or commercialization milestones for ADL5945 are achieved.

+ SUG 06/16/2011 Energy Transfer Equity (ETE) All Stock $9.4 billion $38.58 $42.33 537,376 03/31/2012 -8.86% -21.27%
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.

+ BARI 04/20/2011 Brookline Bancorp (BRKL) Cash Plus Stock $234 million $39.74 $44.09 5,755 12/31/2011 -9.87% -59.07%
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.

+ NYX 02/15/2011 Deutsche Boerse (N/A) All Stock N/A $13.93 $28.00 3,119,537 12/31/2011 -50.26% -300.76%
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 that is worth $43 as of April 1, 2011.

Source: Merger Arbitrage Mondays: October 31, 2011