Mergers & Acquisitions | Mergers & Acquisitions |
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Arbitrage Spreads On Pending Mergers & AcquisitionsThe following provides information on selected merger-and-acquisition deals.All figures are updated with share prices as of 10 a.m. Wednesday EDT. Annualized rate of return is based on Wednesday's date and the expected closing date and isn't compounded. Expected closing dates are compiled from company statements and reports, and when a time period is cited, that information is provided with that period's midpoint date, which was used to make the annualized return calculation. Deals are listed alphabetically by acquirer, and spreads don't include dividend or interest payments. "Current discount" refers to the discount at which the target company's stock is trading compared with the acquirer's offer. If the target stock is trading higher than the offer, the amount is referred to as the "current premium." Deal values don't include the assumption of debt. Advanced Micro Devices Inc. (AMD), ATI Technologies Inc. (ATYT) Current discount: $0.50 or 2.3% Acquirer: AMD Target: ATYT Offer per share: 0.2229 share and $16.40 per share Value of offer per share: $22.09 Value of outstanding common equity: $5,602,185,600 Acquirer share price: $25.53 Target share price: $21.59 Expected closing: Fourth quarter 11/15/2006 Annualized gain: 10.1% Alcatel SA (ALA), Lucent Technologies Inc. (LU) Current discount: $0.12 or 5% Acquirer: ALA Target: LU Shares offered per share: 0.1952 share Value of offer per share: $2.36 Value of outstanding common equity: $10,602,288,000 Acquirer share price: $12.07 Target share price: $2.24 Expected closing: Late 2006 12/31/2006 Annualized gain: 14.6% Anadarko Petroleum Corp. (APC), Western Gas Resources Inc. (WGR) Current discount: $0.04 or 0.1% Acquirer: APC Target: WGR Offer per share: $61 cash Value of outstanding common equity: $4,636,000,000 Acquirer share price: $45.52 Target share price: $60.96 Expected closing: Late third quarter 9/30/2006 Annualized gain: 0.6% AT&T Inc. (T), BellSouth Corp. (BLS) Current discount: $0.56 or 1.4% Acquirer: T Target: BLS Shares offered per share: 1.325 shares Value of offer per share: $40.57 Value of outstanding common equity: $73,028,702,385 Acquirer share price: $30.62 Target share price: $40.01 Expected closing: Late 2006 12/31/2006 Annualized gain: 3.9% Aviva PLC (AV.LN), AmerUS (AMH) Current discount: $1.68 or 2.4% Acquirer: Aviva, a London-listed Co. Target: AMH Offer per share: $69 cash Value of outstanding common equity: $2,677,200,000 Target share price: $67.32 Expected closing: Fourth quarter 11/15/2006 Annualized gain: 10.8% Bain Capital/Blackstone, Michael's Stores Inc. (MIK) Current discount: $1.29 or 2.9% Acquirer: Bain/Blackstone Target: MIK Offer per share: $44 cash Value of outstanding common equity: $5,812,400,000 Target share price: $42.71 Expected closing: Late 2006 12/31/2006 Annualized gain: 8.5% Bain Capital/KKR Group, HCA Inc. (HCA) Current discount: $1.80 or 3.5% Acquirer: Bain/KKR Target: HCA Offer per share: $51 cash Value of outstanding common equity: $20,813,100,000 Target share price: $49.20 Expected closing: Fourth quarter 11/15/2006 Annualized gain: 15.9% Note: The total transaction is valued at about $33 billion, including the assumption of debt. Banco Bilbao Vizcaya Argentaria S.A. (BBV), Texas Regional Bancshares Inc. (TRBS) Current discount: $0.75 or 1.9% Acquirer: BBV Target: TRBS Offer per share: $38.90 cash Value of outstanding common equity: $2,131,720,000 Target share price: $38.15 Acquirer share price: $22.35 Expected closing: Fourth quarter 11/15/2006 Annualized gain: 8.5% Boeing Co. (BA), Aviall Inc. (AVL) Current discount: $0.29 or 0.6% Acquirer: BA Target: AVL Offer per share: $48 cash Value of outstanding common equity: $1,632,000,000 Target share price: $47.71 Expected closing: Late third quarter 9/30/2006 Acquirer share price: $77.52 Annualized gain: 5.8% Brocade Communications Systems Inc. (BRCD), McData Corp. (MCDT) Current discount: $0.41 or 9.8% Acquirer: BRCD Target: MCDT Shares offered per share: 0.75 share Value of offer per share: $4.20 Value of outstanding common equity: $667,800,000 Acquirer share price: $5.60 Target share price: $3.79 Expected closing: Brocade's fiscal 2007 first quarter 12/15/2006 Annualized gain: 34.6% Buffet's Inc., Ryan's Restaurant Group Inc. (RYAN) Current discount: $0.43 or 2.65% Acquirer: Buffet's, a private co. Target: RYAN Offer per share: $16.25 cash Value of outstanding common equity: $685,457,500 Target share price: $15.82 Expected closing: Fourth quarter 11/15/2006 Annualized gain: 11.8% Capital One Financial Corp. (COF), North Fork Bancorp Inc. (NFB) Current discount: $0.05 or 0.2% Acquirer: COF Target: NFB Offer per share: 0.2216 share and $11.25 per share Value of offer per share: $27.42 Value of outstanding common equity: $13,044,820,774 Acquirer share price: $72.98 Target share price: $27.37 Expected closing: Fourth quarter 11/15/2006 Annualized gain: 0.8% Citizens Banking Corp. (CBCF), Republic Bancorp Inc. (RBNC) Current discount: $0.14 or 1% Acquirer: CBCF Target: RBNC Offer per share: 0.4378 share and $2.08 per share Value of offer per share: $13.20 Value of outstanding common equity: $984,402,321 Acquirer share price: $25.39 Target share price: $13.06 Expected closing: Fourth quarter 11/15/2006 Annualized gain: 4.5% Note: The total deal will consist of about $155 million in cash and 33.2 million Citizens shares, or 15% cash and 85% stock, the companies said. Columbia Entertainment, Aztar Corp. (AZR) Current discount: $1.97 or 3.65% Acquirer: Columbia, a private co. Target: AZR Offer per share: $54 cash Value of outstanding common equity: $1,938,600,000 Target share price: $52.03 Expected closing: Late 2006 12/31/2006 Annualized gain: 10.6% Energy Partners Ltd. (EPL), Stone Energy Corp. (SGY) Current discount: $3.64 or 7.1% Acquirer: EPL Target: SGY Offer per share: $51 cash Value of outstanding common equity: $1,387,200,000 Target share price: $47.36 Acquirer share price: $18.17 Expected closing: Early fourth quarter 10/1/2006 Annualized gain: 71.9% Exelon Corp. (EXC), Public Service Enterprise Group Inc. (PEG) Current discount: $2.66 or 3.6% Acquirer: EXC Target: PEG Shares offered per share: 1.225 shares Value of offer per share: $74.49 Value of outstanding common equity: $17,706,808,116 Acquirer share price: $60.81 Target share price: $71.83 Expected closing: Third quarter Annualized gain: N/A Note: Exelon will also assume about $14.1 billion in debt. Fortress Investment Group LLC, Intrawest Corp. (IDR) Current discount: $0.54 or 1.5% Acquirer: Fortress Investment Target: IDR Offer per share: $35 cash Value of outstanding common equity: $1,715,000,000 Target share price: $34.46 Expected closing: October 10/15/2006 Annualized gain: 10.8% FPL Group Inc. (FPL), Constellation Energy (CEG) Current discount: $4.76 or 7.5% Acquirer: FPL Target: CEG Shares offered per share: 1.444 shares Value of offer per share: $63.22 Value of outstanding common equity: $11,284,469,862 Acquirer share price: $43.78 Target share price: $58.46 Expected closing: N/A Annualized gain: N/A Hewlett-Packard Co. (HPQ), Mercury Interactive Corp. (MERQ) Current discount: $1.58 or 3% Acquirer: HPQ Target: MERQ Offer per share: $52 cash Value of outstanding common equity: $4,482,348,000 Target share price: $50.42 Expected closing: Fourth quarter 11/15/2006 Annualized gain: 13.6% International Business Machines Corp. (IBM), MRO Software Inc. (MROI) Current discount: $0.15 or 0.6% Acquirer: IBM Target: MROI Offer per share: $25.80 cash Value of outstanding common equity: $681,120,000 Target share price: $25.65 Acquirer share price: $79.32 Expected closing: Fourth quarter 11/15/2006 Annualized gain: 2.5% International Business Machines (IBM), FileNet Corp. (FILE) Current premium: $0.11 or 0.3% Acquirer: IBM Target: FILE Offer per share: $35 cash Value of outstanding common equity: $1,473,500,000 Target share price: $35.11 Acquirer share price: $79.32 Expected closing: Fourth quarter 11/15/2006 Annualized gain: -1.4% International Business Machines (IBM), Internet Security Systems Inc. (ISSX) Current discount: $0.31 or 1.1% Acquirer: IBM Target: ISSX Offer per share: $28 cash Value of outstanding common equity: $1,226,400,000 Target share price: $27.69 Acquirer share price: $79.32 Expected closing: Fourth quarter 11/15/2006 Annualized gain: 4.9% Kimco Realty Corp. (KIM), Pan Pacific Retail Properties Inc. (PNP) Current discount: $0.56 or 0.8% Acquirer: KIM Target: PNP Offer per share: $70 cash Value of outstanding common equity: $2,856,000,000 Target share price: $69.44 Acquirer share price: $40.93 Expected closing: Fourth quarter 11/15/2006 Annualized gain: 3.5% KLA-Tencor Corp. (KLAC), ADE Corp. (ADEX) Current discount: $0.33 or 1% Acquirer: KLAC Target: ADEX Offer per share: $32.50 cash Value of outstanding common equity: $471,250,000 Target share price: $32.17 Expected closing: Third quarter Acquirer share price: $43.92 Annualized gain: N/A Leonard Green/Texas Pacific Group, Petco Animal Supplies (PETC) Current discount: $0.96 or 3.3% Acquirer: Leonard Green/Texas Pacific Target: PETC Offer per share: $29 cash Value of outstanding common equity: $1,658,800,000 Target share price: $28.04 Expected closing: Fourth quarter 11/15/2006 Annualized gain: 14.9% Lone Star Funds, Lone Star Steakhouse & Saloon Inc. (STAR) Current premium: $0.36 or 1.3% Acquirer: Lone Star Funds, a private firm Target: STAR Offer per share: $27.10 cash Value of outstanding common equity: $577,230,000 Target share price: $27.46 Expected closing: Fourth quarter 11/15/2006 Annualized gain: -5.7% Macquarie Infrastructure group, Duquesne Light Holdings (DQE) Current discount: $0.48 or 2.4% Acquirer: Macquarie group Target: DQE Offer per share: $20 cash Value of outstanding common equity: $1,568,000,000 Target share price: $19.52 Expected closing: First quarter 2007 2/15/2007 Annualized gain: 5.1% Note: Including debt, the transaction value is about $3.15 billion. Madison Dearborn Partners LLC, Univision Communications Inc. (UVN) Current discount: $2.26 or 6.2% Acquirer: Madison Dearborn Target: UVN Offer per share: $36.25 cash Value of outstanding common equity: $11,074,375,000 Target share price: $33.99 Expected closing: May 2007 5/15/2007 Annualized gain: 9.2% Note: The deal includes the assumption of $1.4 billion in debt, lifting the transaction's total value to around $13.7 billion. Monsanto Co. (MON), Delta & Pine Land Co. (DLP) Current discount: $1.64 or 3.9% Acquirer: MON Target: DLP Offer per share: $42 cash Value of outstanding common equity: $1,507,800,000 Target share price: $40.36 Acquirer share price: $46.72 Expected closing: N/A Annualized gain: N/A Morgan Stanley & Co. (MS), Saxon Capital Inc. (SAX) Current discount: $0.22 or 1.6% Acquirer: MS Target: SAX Offer per share: $14.10 cash Value of outstanding common equity: $705,000,000 Target share price: $13.88 Acquirer share price: $68.39 Expected closing: Late 2006 12/31/2006 Annualized gain: 4.5% Morgan Stanley Real Estate, Glenborough Realty Trust (GLB) Current discount: $0.09 or 0.35% Acquirer: Morgan Stanley Re Target: GLB Offer per share: $26 cash Value of outstanding common equity: $837,200,000 Target share price: $25.91 Expected closing: Fourth quarter 11/15/2006 Annualized gain: 1.5% Note: The total transaction is valued at about $1.9 billion, including the assumption of debt. National City Corp. (NCC), Fidelity Bankshares Inc. (FFFL) Current discount: $0.94 or 2% Acquirer: NCC Target: FFFL Offer per share: $39.50 cash and stock Value of outstanding common equity: $995,400,000 Acquirer share price: $35.72 Target share price: $38.56 Expected closing: First quarter 2/15/2007 Annualized gain: 5.1% National City Corp. (NCC), Harbor Florida Bancshares Inc. (HARB) Current discount: $0.96 or 2.1% Acquirer: NCC Target: HARB Offer per share: $45 stock Value of outstanding common equity: $1,084,500,000 Target share price: $44.04 Acquirer share price: $35.72 Expected closing: Fourth quarter 11/15/2006 Annualized gain: 9.5% Note: The exchange ratio will be based on the average closing price of National City common stock for the 10 trading days immediately preceding Federal Reserve Board approval of the transaction. National Grid (NGG), KeySpan Corp. (KSE) Current discount: $1.45 or 3.45% Acquirer: NGG Target: KSE Offer per share: $42 cash Value of outstanding common equity: $7,324,800,000 Target share price: $40.55 Expected closing: Early 2007 1/1/2007 Annualized gain: 10% Neubauer investor group, Aramark Corp. (RMK) Current discount: $1.21 or 3.6% Acquirer: Neubauer investor group Target: RMK Offer per share: $33.80 cash Value of outstanding common equity: $6,063,720,000 Target share price: $32.59 Expected closing: Early 2007 1/1/2007 Annualized gain: 10.3% Note: The deal is valued at about $8.3 billion, including the assumption of debt. Open Text Corp. (OTEX), Hummingbird Ltd. (HUMC) Current discount: $0.34 or 1.2% Acquirer: OTEX Target: HUMC Offer per share: $27.85 cash Value of outstanding common equity: $484,590,000 Target share price: $27.51 Expected closing: Early October 10/1/2006 Annualized gain: N/A Royal Philips Electronics (PHG), Intermagnetics General Corp. (IMGC) Current discount: $0.26 or 0.95% Acquirer: PHG Target: IMGC Offer per share: $27.50 cash Value of outstanding common equity: $1,166,000,000 Target share price: $27.24 Acquirer share price: $33.98 Expected closing: Early fourth quarter 10/1/2006 Annualized gain: 8.9% Plains All American Pipeline L.P. (PAA), Pacific Energy Partners L.P. (PPX) Current discount: $0.55 or 1.5% Acquirer: PAA Target: PPX Shares offered per share: 0.77 common unit Value of offer per unit: $35.66 Value of outstanding common equity: $1,121,463,645 Acquirer share price: $46.31 Target share price: $35.11 Expected closing: Late 2006 12/31/2006 Annualized gain: 4.4% Note: Plains All American said the total value of the transaction is about$2.4 billion, including the assumption of debt. Regions Financial Corp. (RF), AmSouth Bancorp (ASO) Current discount: $0.14 or 0.5% Acquirer: RF Target: ASO Shares offered per share: 0.7974 share Value of offer per share: $29.33 Value of outstanding common equity: $10,150,549,273 Acquirer share price: $36.78 Target share price: $29.19 Expected closing: Fourth quarter 11/15/2006 Annualized gain: 2.1% Service Corp. International (SCI), Alderwoods Group Inc. (AWGI) Current discount: $0.26 or 1.3% Acquirer: SCI Target: AWGI Offer per share: $20 cash Value of outstanding common equity: $810,000,000 Acquirer share price: $8.33 Target share price: $19.74 Expected closing: Late 2006 12/31/2006 Annualized gain: 3.7% Tenaris S.A. (TS), Maverick Tube Corp. (MVK) Current discount: $0.65 or 1% Acquirer: TS Target: MVK Offer per share: $65 cash Value of outstanding common equity: $2,398,500,000 Target share price: $64.35 Acquirer share price: $37.75 Expected closing: Early fourth quarter 10/1/2006 Annualized gain: 9.5% Texas Pacific Group, Aleris International Inc. (ARS) Current discount: $1.11 or 2.1% Acquirer: Texas Pacific Target: ARS Offer per share: $52.50 cash Value of outstanding common equity: $1,648,500,000 Target share price: $51.39 Expected closing: Early 2007 1/1/2007 Annualized gain: 6% Note: The deal also includes the assumption of about $1.6 billion in debt. Thermo Electron Corp. (TMO), Fisher Scientific International Inc. (FSH) Current discount: $0.17 or 0.2% Acquirer: TMO Target: FSH Shares offered per share: 2 shares Value of offer per share: $78.42 Value of outstanding common equity: $9,739,763,752 Acquirer share price: $39.21 Target share price: $78.25 Expected closing: Fourth quarter 11/15/2006 Annualized gain: 0.9% Universal Computer Systems Inc., Reynolds & Reynolds Co. (REY) Current discount: $1.42 or 3.55% Acquirer: Universal Computer, a private co. Target: REY Offer per share: $40 cash Value of outstanding common equity: $2,548,000,000 Target share price: $38.58 Expected closing: Fourth quarter 11/15/2006 Annualized gain: 16% Valassis Communications Inc. (VCI), ADVO Inc. (AD) Current discount: $0.26 or 0.7% Acquirer: VCI Target: AD Offer per share: $37 cash Value of outstanding common equity: $1,172,900,000 Target share price: $36.74 Acquirer share price: $20.19 Expected closing: Late October 10/31/2006 Annualized gain: 3.7% Wachovia Corp. (WB), Golden West Financial Corp. (GDW) Current discount: $1.32 or 1.7% Acquirer: WB Target: GDW Offer per share: 1.051 shares and $18.65 per share Value of offer per share: $77.46 Value of outstanding common equity: $23,897,631,336 Acquirer share price: $55.96 Target share price: $76.14 Expected closing: Fourth quarter 11/15/2006 Annualized gain: 7.6% Washington Mutual Inc. (WM), Commercial Capital Bancorp Inc. (CCBI) Current discount: $0.14 or 0.9% Acquirer: WM Target: CCBI Offer per share: $16 cash Value of outstanding common equity: $912,000,000 Target share price: $15.86 Expected closing: Early fourth quarter 10/1/2006 Acquirer share price: $44.09 Annualized gain: 8.3% Watson Pharmaceuticals Inc. (WPI), AndRx Corp. (ADRX) Current discount: $1.28 or 5.1% Acquirer: WPI Target: ADRX Offer per share: $25 cash Value of outstanding common equity: $1,835,000,000 Target share price: $23.72 Expected closing: November 11/15/2006 Acquirer share price: $25.87 Annualized gain: 23.5% WPS Resources Corp. (WPS), Peoples Energy Corp. (PGL) Current discount: $0.53 or 1.3% Acquirer: WPS Target: PGL Shares offered per share: 0.825 share Value of offer per share: $42.26 Value of outstanding common equity: $1,622,966,400 Acquirer share price: $51.23 Target share price: $41.73 Expected closing: First quarter 2007 2/15/2007 Annualized gain: 2.7% |