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Merger activity decreased last week with only two new deals announced. The most interesting development is however the deal that was not announced. There has been speculation that a number of entities are considering a bid for Yahoo (NASDAQ:YHOO) including a combination of Alibaba’s Jack Ma and Japanese bank Softbank as well as a potential bid by private equity firm Silver Lake along with Microsoft (NASDAQ:MSFT) and others.

Call option activity has spiked over the last couple of weeks. Open interest for $16 December 2011 calls stands at 76,162 contracts and open interest for $16 January 2012 calls is 191,420. Traders had picked up a large number of calls for the November, December and January expirations and the November calls expired worthless. In that light, the story in the Wall Street Journal last Thursday that Silver Lake is considering a bid was interestingly timed. The stock spiked briefly on Friday morning and eventually gave back those gains. Based on trading activity on Friday, the market appears to be taking these rumors with a pinch of salt.

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 180
Total Number of Deals Not Completed in 2011 5
Total Number of Pending Deals
Cash Deals 35
Stock Deals 17
Stock & Cash Deals 9
Total Number of Pending Deals 61

New Deals:

  1. The acquisition of Bluegreen Corporation (NYSE:BXG) by BFC Financial Corporation (OTCQB:BFCF) in an all stock deal, where shareholders of Bluegreen’s Common Stock will be entitled to receive eight shares of BFC’s Class A Common Stock for each share of Bluegreen’s Common Stock they hold. BFC currently owns approximately 52% of Bluegreen’s Common Stock. This is an interesting transaction given the spread, which is currently 15.15% or 24.8% annualized. Given that this is an all stock deal and that BFC Financial is traded on the pink sheets, shorting the company to capture the spread might be challenging. BFC Financial is an interesting company in its own right. The stock trades well below book value and the company owns a controlling interest in Florida based regional bank BankAtlantic (NYSE:BBX) as well as a stake in Benihana (NASDAQ:BNHN). BankAtlantic has a high Troubled Asset Ratio (TAR) of 82.9 as of Q2 2011 when compared to the national median TAR of 14.3 .
  2. The acquisition of Valpey-Fisher Corporation (NASDAQ:VPF) by CTS Corporation for $18 million or $4.15 per share in cash.

Updated Deals:

  1. On November 16, 2011, Conmed Healthcare Management Inc. (NYSEMKT:CONM) terminated its agreement to be acquired by Ayelet Investments LLC, which was unable to obtain needed financing for the deal.

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. (NASDAQ:SWKS) $6.13 $4.20 12/31/2011 45.96% 419.35%
MHS 07/21/2011 Express Scripts, Inc. (NASDAQ:ESRX) $64.42 $55.28 06/30/2012 16.53% 27.17%
ABVA 07/27/2011 Eagle Bancorp, Inc. (NASDAQ:EGBN) $6.00 $5.16 12/31/2011 16.29% 148.66%
BXG 11/14/2011 BFC Financial Corporation (OTCQB:BFCF) $3.04 $2.64 06/30/2012 15.15% 24.91%
CADC 10/24/2011 Novel Gain Holdings Limited (N/A) $2.65 $2.35 03/31/2012 12.77% 35.57%
VTRO 10/17/2011 Inuvo, Inc. (NYSEMKT:INUV) $1.67 $1.49 03/31/2012 12.06% 33.60%
EP 10/16/2011 Kinder Morgan, Inc. (NYSE:KMI) $27.44 $24.80 03/31/2012 10.64% 29.64%
TAM 01/19/2011 LAN Airlines S.A. (NYSE:LFL) $21.11 $19.25 12/31/2011 9.68% 88.36%
LOOP 04/27/2011 CoStar Group (NASDAQ:CSGP) $18.82 $17.61 12/31/2011 6.87% 62.72%
HNB 06/02/2011 BankUnited Inc. (NYSE:BKU) $3.48 $3.32 12/31/2011 4.68% 42.75%

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 $6.13 $4.20 422,695 12/31/2011 45.96% 419.35%
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 $64.42 $55.28 3,252,075 06/30/2012 16.53% 27.17%
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.

+ ABVA 07/27/2011 Eagle Bancorp, Inc. (EGBN) All Stock $31.2 million $6.00 $5.16 13,076 12/31/2011 16.29% 148.66%
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.

+ BXG 11/14/2011 BFC Financial Corporation (OTCQB:BFCF) All Stock N/A $3.04 $2.64 157,406 06/30/2012 15.15% 24.91%
Details of Bluegreen Corporation

Expected to close in the first half of 2012 in an all stock deal, where shareholders of Bluegreen Corporation will be entitled to receive eight shares of BFC’s Class A Common Stock for each share of Bluegreen’s Common Stock they hold at the effective time of the merger.

+ CADC 10/24/2011 Novel Gain Holdings Limited (N/A) All Cash N/A $2.65 $2.35 55,595 03/31/2012 12.77% 35.57%
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 $1.67 $1.49 26,149 03/31/2012 12.06% 33.60%
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.

+ EP 10/16/2011 Kinder Morgan, Inc. (KMI) Cash Plus Stock $21 billion $27.44 $24.80 12,059,296 03/31/2012 10.64% 29.64%
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.

+ TAM 01/19/2011 LAN Airlines S.A. (LFL) All Stock N/A $21.11 $19.25 833,896 12/31/2011 9.68% 88.36%
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 (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.

+ LOOP 04/27/2011 CoStar Group (CSGP) Cash Plus Stock $860 million $18.82 $17.61 56,251 12/31/2011 6.87% 62.72%
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.

+ HNB 06/02/2011 BankUnited Inc. (BKU) Cash Plus Stock $71.4 million $3.48 $3.32 200 12/31/2011 4.68% 42.75%
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.

+ ORCH 04/06/2011 Laboratory Corporation of America Holdings (NYSE:LH) All Cash $85.4 million $2.80 $2.69 46,040 11/30/2011 4.09% 165.84%
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.

+ GR 09/21/2011 United Technologies Corp. (NYSE:UTX) All Cash $18.4 billion $127.50 $123.18 1,575,188 06/30/2012 3.51% 5.77%
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.

+ MMI 08/15/2011 Google (NASDAQ:GOOG) All Cash $12.5 billion $40.00 $38.76 11,490,730 01/31/2012 3.20% 16.45%
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.

+ CEG 04/28/2011 Exelon Corporation (NYSE:EXC) All Stock $7.9 billion $40.62 $39.65 1,252,928 01/31/2012 2.45% 12.61%
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.

+ PVSA 06/15/2011 F.N.B. Corporation (NYSE:FNB) All Stock $130 million $23.46 $23.05 15,048 12/31/2011 1.77% 16.11%
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.

+ STBC 04/28/2011 Valley National Bancorp (NYSE:VLY) All Stock $222 million $11.83 $11.63 12,119 01/15/2012 1.72% 11.41%
Details of State Bancorp Inc.

Expected to close in early 2012 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.

+ VPF 11/17/2011 CTS Corp (N/A) All Cash $18 million $4.15 $4.08 51,274 01/31/2012 1.72% 8.82%
Details of Valpey Fisher Corporation

Expected to close in January 2012 for a closing value of $18 million. Upon completion of the merger, shareholders of Valpey-Fisher Corporation will receive $4.15 per share in cash.

+ ADPI 11/07/2011 JLL Partners, Inc. (N/A) All Cash $398 million $19.00 $18.69 353,700 03/31/2012 1.66% 4.62%
Details of American Dental Partners, Inc.

Expected to close in the first quarter of 2012 for a closing value of $398 million. Upon completion of the merger, shareholders of American Dental Partners will receive $19.00 per share in cash.

+ HGIC 09/29/2011 Nationwide Mutual Insurance Co (N/A) All Cash $760 million $60.00 $59.04 63,113 01/31/2012 1.63% 8.36%
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.

+ ENP 07/11/2011 Vanguard Natural Resources (NASDAQ:VNR) All Stock $545 million $20.19 $19.90 55,968 12/31/2011 1.46% 13.30%
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.

+ NETL 09/12/2011 Broadcom (NASDAQ:BRCM) All Cash $3.7 billion $50.00 $49.37 1,182,908 06/30/2012 1.28% 2.10%
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.

+ PNS 11/10/2011 Avnet (NYSE:AVT) All Cash $22 million $2.40 $2.37 41,243 01/31/2012 1.27% 6.51%
Details of Pinnacle Data Systems Inc.

Expected to close in 60 to 90 days for a closing value of $22 million. Upon completion of the merger, shareholders of Pinnacle Data Systems will receive $2.30 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 $21.73 696,526 03/31/2012 1.24% 3.46%
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.

+ INXI 11/01/2011 Presidio (N/A) All Cash N/A $8.75 $8.65 19,456 03/31/2012 1.16% 3.22%
Details of INX Inc.

Expected to close in early 2012. Upon completion of the merger, shareholders of INX Inc. will receive $8.75 per share in cash.

+ SONE 10/03/2011 ACI Worldwide (NASDAQ:ACIW) Cash Plus Stock $516 million $9.82 $9.71 352,038 12/31/2011 1.14% 10.39%
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.

+ MSSR 11/08/2011 Landry’s, Inc. (N/A) All Cash $131.6 million $8.75 $8.66 335,885 01/15/2012 1.04% 6.90%
Details of McCormick & Schmick’s Seafood Restaurants, Inc.

Expected to close by late December 2011 or early January 2012 for a closing value of $131.6 million. Upon completion of the merger, shareholders of McCormick & Schmick’s Seafood Restaurants, Inc. will receive $8.75 per share in cash.

+ PNNW 11/12/2010 City of Nashua (N/A) All Cash $138 million $29.00 $28.71 7,232 12/31/2011 1.01% 9.22%
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.

+ FNDT 06/27/2011 GTCR (N/A) All Cash $352.7 $23.33 $23.10 19,829 12/31/2011 1.00% 9.09%
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.

+ CPX 10/10/2011 Superior Energy Services (NYSE:SPN) Cash Plus Stock $2.7 billion $33.99 $33.69 720,427 12/31/2011 0.89% 8.10%
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.

+ PAET 08/01/2011 Windstream Corp. (NASDAQ:WIN) All Stock $2.3 billion $5.35 $5.31 495,624 01/31/2012 0.84% 4.30%
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 10/24/2011 Cigna (NYSE:CI) All Cash $3.8 billion $55.00 $54.65 960,362 06/30/2012 0.64% 1.05%
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.

+ ACMR 10/04/2011 affiliate of Sbar’s Inc (N/A) All Cash $40.8 million $1.60 $1.59 50,163 12/31/2011 0.63% 5.74%
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 (NYSE:IP) All Cash $4.3 billion $32.00 $31.84 1,664,928 03/31/2012 0.50% 1.40%
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.

+ CLFC 12/09/2010 Nara Bancorp Inc. (NARA) All Stock $285.7 million $6.82 $6.79 147,020 11/30/2011 0.45% 18.33%
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.

+ PGN 01/10/2011 Duke Energy Corporation (NYSE:DUK) All Stock $13.7 billion $52.69 $52.46 1,031,323 12/31/2011 0.45% 4.07%
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.

+ GLBL 09/12/2011 Technip (N/A) All Cash $1.1 billion $8.00 $7.97 830,612 01/31/2012 0.38% 1.94%
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.

+ FRPT 11/07/2011 General Dynamics Corp. (NYSE:GD) All Cash $360 million $5.52 $5.50 704,818 12/31/2011 0.36% 3.32%
Details of Force Protection Inc.

Expected to close by the end of 2011 for a closing value of $360 million. Upon completion of the merger, shareholders of Force Protection will receive $5.52 per share in cash.

+ MFW 09/12/2011 MacAndrews and Forbes (N/A) All Cash N/A $25.00 $24.91 61,033 12/31/2011 0.36% 3.30%
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.

+ RNOW 10/24/2011 Oracle (NYSE:ORCL) All Cash $1.5 billion $43.00 $42.85 511,863 03/31/2012 0.35% 0.98%
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.

+ PPDI 10/03/2011 Affiliates of The Carlyle Group and Hellman & Friedman (N/A) All Cash $3.9 billion $33.25 $33.15 953,860 12/31/2011 0.30% 2.75%
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.

+ CV 07/12/2011 Gaz metro Limited Partnership (N/A) All Cash $702 million $35.25 $35.15 57,030 12/31/2011 0.28% 2.60%
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 12 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.

+ BEXP 10/17/2011 Statoil ASA (NYSE:STO) All Cash $4.4 billion $36.50 $36.40 2,099,442 03/31/2012 0.27% 0.77%
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.

+ ANDS 10/17/2011 Roche (N/A) All Cash $230 million $3.70 $3.69 847,383 12/31/2011 0.27% 2.47%
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.

+ OTC:SWTX 10/07/2011 Solutia Inc. (NYSE:SOA) All Cash $113 million $13.60 $13.58 29,026 12/31/2011 0.15% 1.34%
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.

+ AMAC 09/22/2011 Tunstall Healthcare Group Limited (N/A) All Cash $82.3 million $8.55 $8.54 40,079 12/31/2011 0.12% 1.07%
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.

+ BBND 10/11/2011 Arris Group Inc. (NASDAQ:ARRS) All Cash $172 million $2.24 $2.24 998,498 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.

+ NST 10/18/2010 Northeast Utilities (NYSE:NU) All Stock $4.17 billion $45.26 $45.31 236,911 12/31/2011 -0.10% -0.93%
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.

+ NLC 07/20/2011 Ecolab Inc. (NYSE:ECL) All Stock $5.4 billion $37.98 $38.07 2,466,558 12/31/2011 -0.23% -2.13%
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.

+ PMIC 09/08/2011 Ace (NYSE:ACE) All Cash N/A $20.30 $20.36 14,400 03/31/2012 -0.29% -0.82%
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.

+ GAS 12/07/2010 AGL Resources Inc. (AGL) Cash Plus Stock $2.4 billion $55.57 $55.79 197,165 12/31/2011 -0.39% -3.52%
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.

+ DPL 04/19/2011 AES Corporation (NYSE:AES) All Cash $4.7 billion $30.00 $30.20 497,777 01/31/2012 -0.66% -3.40%
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.

+ ICLK 11/01/2011 Yahoo Inc. (YHOO) All Cash $270 million $9.00 $9.06 310,154 03/31/2012 -0.66% -1.85%
Details of interCLICK, Inc.

Expected to close in early 2012 for a closing value of $27 million. Upon completion of the merger, shareholders of interCLICK will receive $9.00 per share in cash.

+ TKLC 11/07/2011 a consortium led by Siris Capital Group, LLC (N/A) All Cash $780 million $11.00 $11.08 1,030,060 03/31/2012 -0.72% -2.01%
Details of Tekelec

Expected to close in the first quarter of 2012 for a closing value of $780 million. Upon completion of the merger, shareholders of Tekelec will receive $11.00 per share in cash.

+ TOBC 06/20/2011 Susquehanna Bancshares (NASDAQ:SUSQ) All Stock $343 million $26.61 $26.87 37,336 03/31/2012 -0.96% -2.68%
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.

+ SNSTA 11/03/2011 SAC an affiliate of Hospitality Properties Trust (N/A) All Cash $174 million $31.00 $31.34 N/A 03/31/2012 -1.08% -3.02%
Details of Sonesta International Hotels Corp.

Expected to close in the first quarter of 2012 for a closing value of $174 million. Upon completion of the merger, shareholders of Sonesta International Hotels will receive $31.00 per share in cash.

+ CTBC 10/26/2011 Berkshire Hills Bancorp, Inc. (NYSE:BHLB) All Stock $30 million $7.37 $7.50 901 04/30/2012 -1.75% -3.97%
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.

+ BFSB 08/17/2011 Investors Bancorp, Inc. (NASDAQ:ISBC) All Cash $10.3 million $0.80 $0.841 2,500 12/31/2011 -4.88% -44.49%
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.

+ ADLR 10/24/2011 Cubist Pharmaceuticals (NASDAQ:CBST) All Cash $190 million $4.25 $4.67 247,894 12/31/2011 -8.99% -82.07%
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 (NYSE:ETE) All Stock $9.4 billion $37.56 $41.93 424,387 03/31/2012 -10.42% -29.04%
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 (NASDAQ:BRKL) Cash Plus Stock $234 million $36.64 $42.67 10,732 12/31/2011 -14.12% -128.86%
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 $27.08 3,068,605 12/31/2011 -48.57% -443.24%
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: November 21, 2011