Seeking Alpha
Profile| Send Message|
( followers)  

Merger activity remained steady last week with two new deals announced and three closing.

In addition to the two new acquisitions, on December 07, 2011, J. C. Penney Company (JCP) and Martha Stewart Living Omnimedia (NYSE:MSO) announced that they have entered into a strategic alliance where J.C. Penney will invest $38.5 million in Martha Stewart at $3.50 per share for 16.6% stake.

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 195
Total Number of Deals Not Completed in 2011 6
Total Number of Pending Deals
Cash Deals 33
Stock Deals 12
Stock & Cash Deals 8
Total Number of Pending Deals 53

New Deals:

  1. The acquisition of DemandTec (NASDAQ:DMAN) by International Business Machines (NYSE:IBM) for $440 million or $13.20 per share in cash.
  2. The acquisition of Blue Coat Systems (NASDAQ:BCSI) by private equity investment firm Thoma Bravo, LLC for $1.3 billion or $25.81 per share in cash.

Closed Deals:

  1. The acquisition of Pharmaceutical Product Development (NASDAQ:PPDI) by affiliates of The Carlyle Group and affiliates of Hellman & Friedman on December 05, 2011.
  2. The acquisition of Brigham Exploration Company (BEXP) by Statoil ASA (NYSE:STO) on December 8, 2011.
  3. The acquisition of Nicor (NYSE:GAS) by AGL Resources (AGL) on December 10, 2011.

Top 10 deals with largest spreads:

Symbol Announced

Date

Acquiring

Company

Closing

Price

Last

Price

Closing

Date

Profit Annualized

Profit

VTRO 10/17/2011 Inuvo, Inc. (NYSEMKT:INUV) $1.55 $1.29 03/31/2012 19.84% 65.85%
MHS 07/21/2011 Express Scripts, Inc. (NASDAQ:ESRX) $66.05 $57.13 06/30/2012 15.62% 28.36%
CADC 10/24/2011 Novel Gain Holdings Limited (N/A) $2.65 $2.30 03/31/2012 15.22% 50.49%
EP 10/16/2011 Kinder Morgan, Inc. (NYSE:KMI) $28.00 $24.87 03/31/2012 12.60% 41.81%
TAM 01/19/2011 LAN Airlines S.A. (NYSE:LFL) $21.54 $19.77 12/31/2011 8.94% 171.70%
GEDU 11/21/2011 Pearson plc (N/A) $11.01 $10.24 12/31/2011 7.52% 144.45%
CTBC 10/26/2011 Berkshire Hills Bancorp, Inc. (NYSE:BHLB) $7.91 $7.42 04/30/2012 6.65% 17.34%
VRUS 11/21/2011 Gilead Sciences, Inc. (NASDAQ:GILD) $137.00 $129.00 03/31/2012 6.20% 20.58%
LOOP 04/27/2011 CoStar Group (NASDAQ:CSGP) $18.98 $17.98 12/31/2011 5.53% 106.33%
GR 09/21/2011 United Technologies Corp. (NYSE:UTX) $127.50 $122.87 06/30/2012 3.77% 6.84%

List of all pending deals:

Symbol Announced

Date

Acquiring

Company

Deal

Type

Closing

Value

Closing

Price

Last

Price

Volume Closing

Date

Profit Annu.

Profit

+ VTRO 10/17/2011 Inuvo, Inc. (INUV) All Stock N/A $1.55 $1.29 700 03/31/2012 19.84% 65.85%
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.

+ MHS 07/21/2011 Express Scripts, Inc. (ESRX) Cash Plus Stock $29.1 billion $66.05 $57.13 2,030,600 06/30/2012 15.62% 28.36%
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 $2.30 26,684 03/31/2012 15.22% 50.49%
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.

+ EP 10/16/2011 Kinder Morgan, Inc. (KMI) Cash Plus Stock $21 billion $28.00 $24.87 8,695,031 03/31/2012 12.60% 41.81%
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 $21.54 $19.77 732,986 12/31/2011 8.94% 171.70%
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.

+ GEDU 11/21/2011 Pearson plc (N/A) All Cash $294 million $11.01 $10.24 751,336 12/31/2011 7.52% 144.45%
Details of Global Education & Technology Group Limited

Expected to close in the fourth quarter of 2011 for a closing value of $294 million. Upon completion of the merger, shareholders of Global Education and Technology Group will receive $11.006 per ADS.

+ CTBC 10/26/2011 Berkshire Hills Bancorp, Inc. (BHLB) All Stock $30 million $7.91 $7.42 19,020 04/30/2012 6.65% 17.34%
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.

+ VRUS 11/21/2011 Gilead Sciences, Inc. (GILD) All Cash $11 billion $137.00 $129.00 886,223 03/31/2012 6.20% 20.58%
Details of Pharmasset, Inc.

Expected to close in the first quarter of 2012 for a closing value of $11 billion. Upon completion of the merger, shareholders of Pharmasset will receive $137 per share in cash.

+ LOOP 04/27/2011 CoStar Group (CSGP) Cash Plus Stock $860 million $18.98 $17.98 272,237 12/31/2011 5.53% 106.33%
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 $122.87 939,582 06/30/2012 3.77% 6.84%
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.

+ SNDA 11/22/2011 Premium Lead Company Limited (“Parent”) and New Era Investment Holding Ltd. (N/A) All Cash $2.3 billion $41.35 $39.96 119,805 03/31/2012 3.48% 11.54%
Details of Shanda Interactive Entertainment Ltd.

Expected to close before the end of the first quarter 2012 for a closing value of $2.3 billion. Upon completion of the merger, shareholders of Shanda Interactive Entertainment Ltd. will receive US$20.675 per ordinary share or US$41.35 per American Depositary Share, each representing two ordinary shares (“ADS”).

+ CEG 04/28/2011 Exelon Corporation (NYSE:EXC) All Stock $7.9 billion $40.53 $39.36 2,460,744 01/31/2012 2.97% 21.69%
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.

+ MMI 08/15/2011 Google (NASDAQ:GOOG) All Cash $12.5 billion $40.00 $38.87 3,606,149 01/31/2012 2.91% 21.22%
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.

+ BCSI 12/09/2011 Thoma Bravo, LLC (N/A) All Cash $1.3 billion $25.81 $25.11 50,592,452 03/31/2012 2.79% 9.25%
Details of Blue Coat Systems Inc

Expected to close in the first calendar quarter of 2012 for a closing value of $1.3 billion. Upon completion of the merger, shareholders of Blue Coat Systems will receive $25.81 per share in cash.

+ BXG 11/14/2011 BFC Financial Corporation (OTCQB:BFCF) All Stock N/A $2.80 $2.74 34,876 06/30/2012 2.19% 3.98%
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.

+ LAVA 11/30/2011 Synopsys Inc. (NASDAQ:SNPS) All Cash $507 million $7.35 $7.20 2,462,913 03/31/2012 2.08% 6.91%
Details of Magma Design Automation Inc.

Expected to close in the first quarter of 2012 for a closing value of $507 million. Upon completion of the merger, shareholders of Magma Design Automation will receive $7.35 per share in cash.

+ STBC 04/28/2011 Valley National Bancorp (NYSE:VLY) All Stock $222 million $11.99 $11.77 30,350 01/15/2012 1.87% 20.07%
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.

+ HGIC 09/29/2011 Nationwide Mutual Insurance Co (N/A) All Cash $760 million $60.00 $58.92 34,977 01/31/2012 1.83% 13.38%
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.

+ TRH 11/21/2011 Alleghany Corporation (NYSE:Y) Cash Plus Stock $3.4 billion $55.78 $54.92 401,048 03/31/2012 1.57% 5.22%
Details of Transatlantic Holdings Inc.

Expected to close in the first quarter of 2012 for a closing value of $3.4 billion in a stock plus cash deal. Upon completion of the merger, shareholders of Transatlantic Holdings will receive 0.145 Alleghany common shares and $14.22 in cash.

+ HNB 06/02/2011 BankUnited Inc. (NYSE:BKU) Cash Plus Stock $71.4 million $3.53 $3.48 N/A 12/31/2011 1.55% 29.78%
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.

+ VPF 11/17/2011 CTS Corp (N/A) All Cash $18 million $4.15 $4.10 100 01/31/2012 1.22% 8.90%
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 $18.80 118,758 03/31/2012 1.06% 3.53%
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.

+ HS 10/24/2011 Cigna (NYSE:CI) All Cash $3.8 billion $55.00 $54.47 831,588 06/30/2012 0.97% 1.77%
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.

+ SONE 10/03/2011 ACI Worldwide (NASDAQ:ACIW) Cash Plus Stock $516 million $9.82 $9.73 614,285 12/31/2011 0.94% 18.08%
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.

+ AATI 05/26/2011 Skyworks Solutions, Inc. (NASDAQ:SWKS) All Cash $258.6 million $5.80 $5.75 1,634,149 12/31/2011 0.87% 16.70%
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.

Update(s):

November 30, 2011: Radio frequency chipmaker Skyworks Solutions said it will buy smaller rival Advanced Analogic Technologies for $5.80 per share in cash, a price lower than the original offer, ending a standoff between the two companies.

+ NETL 09/12/2011 Broadcom (NASDAQ:BRCM) All Cash $3.7 billion $50.00 $49.57 2,010,609 06/30/2012 0.87% 1.58%
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 $2.38 14,030 01/31/2012 0.84% 6.13%
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.

+ CPX 10/10/2011 Superior Energy Services (NYSE:SPN) Cash Plus Stock $2.7 billion $34.48 $34.22 905,559 12/31/2011 0.76% 14.63%
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.

+ PNNW 11/12/2010 City of Nashua (N/A) All Cash $138 million $29.00 $28.80 5,883 12/31/2011 0.69% 13.34%
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 $31.78 2,187,457 03/31/2012 0.69% 2.30%
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.

+ DMAN 12/08/2011 International Business Machines Corp. (IBM) All Cash $440 million $13.20 $13.12 3,529,225 03/31/2012 0.61% 2.02%
Details of DemandTec, Inc.

Expected to close in the first quarter of 2012 for a closing value of $440 million. Upon completion of the merger, shareholders of DemandTec will receive $13.20 per share in cash.

+ RNOW 10/24/2011 Oracle (NYSE:ORCL) All Cash $1.5 billion $43.00 $42.75 1,031,481 03/31/2012 0.58% 1.94%
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.

+ TOBC 06/20/2011 Susquehanna Bancshares (NASDAQ:SUSQ) All Stock $343 million $27.55 $27.39 28,835 03/31/2012 0.58% 1.92%
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.

+ NDN 10/11/2011 affiliates of Ares Management LLC and Canada Pension Plan Investment Board (N/A) All Cash $1.6 billion $22.00 $21.88 827,664 03/31/2012 0.55% 1.82%
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 $8.71 32,188 03/31/2012 0.46% 1.52%
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.

+ MSSR 11/08/2011 Landry’s, Inc. (N/A) All Cash $131.6 million $8.75 $8.71 284,624 01/15/2012 0.46% 4.93%
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.

+ SFSF 12/03/2011 SAP AG (NYSE:SAP) All Cash $3.4 billion $40.00 $39.87 5,238,843 03/31/2012 0.33% 1.08%
Details of SuccessFactors, Inc.

Expected to close in the first quarter of 2012 for a closing value of $3.4 billion. Upon completion of the merger, shareholders of SuccessFactors will receive $40.00 per share in cash.

+ PVSA 06/15/2011 F.N.B. Corporation (NYSE:FNB) All Stock $130 million $24.09 $24.02 1,796 12/31/2011 0.29% 5.49%
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.

+ CV 07/12/2011 Gaz metro Limited Partnership (N/A) All Cash $702 million $35.25 $35.16 46,946 12/31/2011 0.26% 4.92%
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.

+ AMAC 09/22/2011 Tunstall Healthcare Group Limited (N/A) All Cash $82.3 million $8.55 $8.53 880 12/31/2011 0.23% 4.50%
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.

+ PGN 01/10/2011 Duke Energy Corporation (NYSE:DUK) All Stock $13.7 billion $54.50 $54.37 1,211,812 12/31/2011 0.23% 4.48%
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.

+ NST 10/18/2010 Northeast Utilities (NYSE:NU) All Stock $4.17 billion $45.00 $44.92 249,163 12/31/2011 0.18% 3.49%
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.

+ FRPT 11/07/2011 General Dynamics Corp. (NYSE:GD) All Cash $360 million $5.52 $5.51 1,518,856 12/31/2011 0.18% 3.49%
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 $24.99 133,746 12/31/2011 0.04% 0.77%
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.

+ ICLK 11/01/2011 Yahoo Inc. (NASDAQ:YHOO) All Cash $270 million $9.00 $9.00 111,478 03/31/2012 0.00% 0.00%
Details of interCLICK, Inc.

Expected to close in early 2012 for a closing value of $270 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 $11.02 725,020 03/31/2012 -0.18% -0.60%
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.

+ ORCH 04/06/2011 Laboratory Corporation of America Holdings (NYSE:LH) All Cash $85.4 million $2.80 $2.81 655,942 12/09/2011 -0.36% 43.30%
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.

Update(s):

December 02, 2011: Laboratory Corporation of America Holdings extended its tender offer for all outstanding shares of Orchid Cellmark to December 09, 2011.

+ SNSTA 11/03/2011 SAC an affiliate of Hospitality Properties Trust (N/A) All Cash $174 million $31.00 $31.48 1,200 03/31/2012 -1.52% -5.06%
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.

+ BFSB 08/17/2011 Investors Bancorp, Inc. (NASDAQ:ISBC) All Cash $10.3 million $0.80 $0.841 2,848 12/31/2011 -4.88% -93.65%
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.

+ SUG 06/16/2011 Energy Transfer Equity (NYSE:ETE) All Stock $9.4 billion $38.59 $42.00 977,495 03/31/2012 -8.12% -26.94%
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, Inc. (NYSE:WMB) 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 today 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.

+ ADLR 10/24/2011 Cubist Pharmaceuticals (NASDAQ:CBST) All Cash $190 million $4.25 $4.77 437,663 12/31/2011 -10.90% -209.42%
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.

+ BARI 04/20/2011 Brookline Bancorp (NASDAQ:BRKL) Cash Plus Stock $234 million $37.11 $43.04 28,185 12/31/2011 -13.77% -264.54%
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 $27.25 1,878,938 12/31/2011 -48.90% -939.30%
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 that is worth $43 as of April 1, 2011.

Source: Merger Arbitrage Mondays: December 12, 2011