Arbitrage Spreads On Pending Mergers & Acquisitions -5-
By Daniel at 29 August, 2008, 11:00 am
Arbitrage Spreads On Pending Mergers & Acquisitions -5-
Last Update: 8/29/2008 10:38:32 AM
The following provides information on selected mergers and acquisitions. All
figures are updated by Dow Jones Newswires, with share prices as of 10 a.m.
Friday EDT.
Annualized rate of return is based on Friday’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 target, and spreads don’t include dividend or
interest payments. “Premium offered” refers to the amount that the current value
of the offer exceeds the stock price of the target. Deal values don’t include the
assumption of debt.
(Dow Jones 202-862-3545)
Stock price data source: FactSet Research Systems.
Allied Waste Industries Inc. (AW), Republic Services Inc. (RSG)
Premium offered: $1.64 or 12.33%
Acquirer: RSG
Target: AW
Shares offered per share: 0.45 share
Value of offer per share: $14.92
Value of outstanding common equity: $6,450,327,000
Acquirer share price: $33.15
Target share price: $13.28
Expected closing: Early fourth quarter 10/1/2008
Annualized gain: N/A
Alpha Natural Resources Inc. (ANR), Cleveland-Cliffs Inc. (CLF)
Premium offered: $19.83 or 19.80%
Acquirer: CLF
Target: ANR
Offer per share: 0.95 share and $22.23 per share
Value of offer per share: $119.96
Value of outstanding common equity securities: $8,432,941,950
Acquirer share price: $102.87
Target share price: $100.13
Expected closing: Late 2008 12/31/2008
Annualized gain: 58.28%
Anheuser-Busch Cos. (BUD), InBev (INB.BT)
Premium offered: $1.98 or 2.91%
Acquirer: INB.BT
Target: BUD
Offer per share: $70 cash
Value of outstanding common equity: $49,917,000,000
Target share price: $68.02
Expected closing: Late 2008 12/31/2008
Annualized gain: 8.57%
Applied Biosystems Group (ABI), Invitrogen Corp. (IVGN)
Premium offered: $1.43 or 3.91%
Acquirer: IVGN
Target: ABI
Offer per share: $38 cash & stock
Value of outstanding common equity: $6,410,600,000
Target share price: $36.57
Acquirer share price: $42.99
Expected closing: Early November 11/1/2008
Annualized gain: 22.30%
Apria Healthcare Group Inc. (AHG), Blackstone Group (BX)
Premium offered: $0.90 or 4.48%
Acquirer: BX
Target: AHG
Offer per share: $21 cash
Value of outstanding common equity: $921,900,000
Target share price: $20.10
Acquirer share price: $17.76
Expected closing: Second half of 2008 9/30/2008
Annualized gain: 51.07%
Click here to go to Dow Jones NewsPlus, a web front page of today’s most
important business and market news, analysis and commentary:
http://www.djnewsplus.com/al?rnd=zqA%2BjI6lIzdxa%2FbHsvt05w%3D%3D. You can use
this link on the day this article is published and the following day.
Barr Pharmaceuticals Inc. (BRL), Teva Pharmaceutical Industries Ltd. (TEVA)
Premium offered: -$1.14 or -1.69%
Acquirer: TEVA
Target: BRL
Offer per share: $66.50 cash & stock
Value of outstanding common equity: $7,188,650,000
Target share price: $67.64
Acquirer share price: $47.39
Expected closing: Late 2008 12/31/2008
Annualized gain: -4.96%
ChoicePoint Inc. (CPS), Reed Elsevier (ENL)
Premium offered: $1.29 or 2.65%
Acquirer: ENL
Target: CPS
Offer per share: $50 cash
Value of outstanding common equity: $3,575,000,000
Target share price: $48.71
Acquirer share price: $33.44
Expected closing: N/A
Annualized gain: N/A
Corn Products International Inc. (CPO), Bunge Ltd. (BG)
Premium offered: $10.38 or 22.75%
Acquirer: BG
Target: CPO
Offer per share: $56 stock
Value of outstanding common equity: $4,149,600,000
Target share price: $45.62
Acquirer share price: $90.38
Expected closing: Second half of 2008 9/30/2008
Annualized gain: N/A
Note: If Bunge’s average closing price is equal to or greater than $133.10, each
share of Corn Products common stock will be exchanged for 0.4207 of a Bunge
common share, and if this average closing price is equal to or less than $108.90,
each share of Corn Products common stock will be exchanged for 0.5142 of a Bunge
common share.
DRS Technologies Inc. (DRS), Finmeccanica SpA (FNC.MI)
Premium offered: $1.52 or 1.91%
Acquirer: FNC.MI
Target: DRS
Offer per share: $81 cash
Value of outstanding common equity: $3,353,400,000
Target share price: $79.48
Expected closing: Fourth quarter 11/15/2008
Annualized gain: 8.95%
Click here to go to Dow Jones NewsPlus, a web front page of today’s most
important business and market news, analysis and commentary:
http://www.djnewsplus.com/al?rnd=zqA%2BjI6lIzdxa%2FbHsvt05w%3D%3D. You can use
this link on the day this article is published and the following day.
Energy East Corp. (EAS), Iberdrola SA
Premium offered: $1.30 or 4.78%
Acquirer: Iberdrola
Target: EAS
Offer per share: $28.50 cash
Value of outstanding common equity: $4,503,000,000
Target share price: $27.20
Expected closing: Summer
Annualized gain: N/A
Foundry Networks Inc. (FDRY), Brocade Communications Systems Inc. (BRCD)
Premium offered: $0.82 or 4.44%
Acquirer: BRCD
Target: FDRY
Offer per share: 0.0907 share and $18.50 per share
Value of offer per share: $19.18
Value of outstanding common equity securities: $2,797,736,819
Acquirer share price: $7.45
Target share price: $18.36
Expected closing: Fourth quarter 11/15/2008
Annualized gain: 20.79%
Genentech Inc. (DNA), Roche Holding AG (RHHBY)
Premium offered: -$9.37 or -9.53%
Acquirer: RHHBY
Target: DNA
Offer per share: $89 cash
Value of outstanding common equity: $97,900,000,000
Target share price: $98.37
Acquirer share price: $84.85
Expected closing: N/A
Annualized gain: N/A
Note: Roche said the value of its offer is $43.7 billion. Roche currently holds a
55.9% stake in Genentech.
Greenfield Online Inc. (SRVY), Microsoft Corp. (MSFT)
Premium offered: $0.16 or 0.92%
Acquirer: MSFT
Target: SRVY
Offer per share: $17.50 cash
Value of outstanding common equity: $460,250,000
Target share price: $17.34
Expected closing: N/A
Annualized gain: N/A
Grey Wolf Inc. (GW), Precision Drilling Trust (PDS)
Premium offered: $0.25 or 2.85%
Acquirer: PDS
Target: GW
Offer per share: 0.1883 share and $5 per share
Value of offer per share: $9.02
Value of outstanding common equity securities: $1,612,812,654
Acquirer share price: $21.35
Target share price: $8.77
Expected closing: Late 2008 12/31/2008
Annualized gain: 8.40%
Hercules Inc. (HPC), Ashland Inc. (ASH)
Premium offered: $0.75 or 3.43%
Acquirer: ASH
Target: HPC
Offer per share: 0.093 share and $18.60 per share
Value of offer per share: $22.47
Value of outstanding common equity securities: $2,540,800,548
Acquirer share price: $41.56
Target share price: $21.72
Expected closing: Late 2008 12/31/2008
Annualized gain: 10.10%
Click here to go to Dow Jones NewsPlus, a web front page of today’s most
important business and market news, analysis and commentary:
http://www.djnewsplus.com/al?rnd=zqA%2BjI6lIzdxa%2FbHsvt05w%3D%3D. You can use
this link on the day this article is published and the following day.
Hilb Rogal & Hobbs Co. (HRH), Willis Group Holdings Ltd. (WSH)
Premium offered: $0.85 or 1.88%
Acquirer: WSH
Target: HRH
Offer per share: $46 cash
Value of outstanding common equity: $1,674,400,000
Target share price: $45.15
Acquirer share price: $34.51
Expected closing: Fourth quarter 11/15/2008
Annualized gain: 8.81%
Note: Willis said the deal will be paid 50% in cash and 50% in stock.
Huntsman Corp. (HUN), Apollo Management LP
Premium offered: $15.10 or 117.05%
Acquirer: Apollo
Target: HUN
Offer per share: $28 cash
Value of outstanding common equity: $6,213,200,000
Target share price: $12.90
Expected closing: October 2
Annualized gain: N/A
IKON Office Solutions (IKN), Ricoh Company Ltd. (RICOY)
Premium offered: -$0.08 or -0.46%
Acquirer: RICOY
Target: IKN
Offer per share: $17.25 cash
Value of outstanding common equity: $1,618,050,000
Target share price: $17.33
Acquirer share price: $81.45
Expected closing: Fourth quarter 11/15/2008
Annualized gain: -2.16%
Longs Drug Stores Corp. (LDG), CVS Caremark Corp. (CVS)
Premium offered: -$0.81 or -1.12%
Acquirer: CVS
Target: LDG
Offer per share: $71.50 cash
Value of outstanding common equity: $2,559,700,000
Target share price: $72.31
Acquirer share price: $36.86
Expected closing: Fourth quarter 11/15/2008
Annualized gain: -5.24%
NorthWest Airlines Corp. (NWA), Delta Air Lines Inc. (DAL)
Premium offered: $0.38 or 3.95%
Acquirer: DAL
Target: NWA
Shares offered per share: 1.25 shares
Value of offer per share: $10.06
Value of outstanding common equity: $2,379,046,688
Acquirer share price: $8.05
Target share price: $9.68
Expected closing: Late 2008 12/31/2008
Annualized gain: 11.63%
Philadelphia Consolidated Holding Corp. (PHLY), Tokio Marine Holdings Inc. (8766.TO)
Premium offered: $1.72 or 2.88%
Acquirer: Tokio Marine
Target: PHLY
Offer per share: $61.50 cash
Value of outstanding common equity: $4,391,100,000
Target share price: $59.78
Expected closing: Fourth quarter 11/15/2008
Annualized gain: 13.46%
Rohm & Haas Co. (ROH), Dow Chemical Co. (DOW)
Premium offered: $2.84 or 3.78%
Acquirer: DOW
Target: ROH
Offer per share: $78 cash
Value of outstanding common equity: $15,288,000,000
Target share price: $75.16
Acquirer share price: $34.64
Expected closing: Early 2009 1/1/2009
Annualized gain: 11.03%
Safeco Corp. (SAF), Liberty Mutual Group
Premium offered: $0.55 or 0.81%
Acquirer: Liberty Mutual
Target: SAF
Offer per share: $68.25 cash
Value of outstanding common equity: $6,128,850,000
Target share price: $67.70
Expected closing: Late third quarter 9/30/2008
Annualized gain: 9.27%
Click here to go to Dow Jones NewsPlus, a web front page of today’s most
important business and market news, analysis and commentary:
http://www.djnewsplus.com/al?rnd=zqA%2BjI6lIzdxa%2FbHsvt05w%3D%3D. You can use
this link on the day this article is published and the following day.
Take-Two Interactive Software Inc. (TTWO), Electronic Arts Inc. (ERTS)
Premium offered: $0.60 or 2.39%
Hostile Bidder: ERTS
Target: TTWO
Offer per share: $25.74 cash
Value of outstanding common equity: $1,961,388,000
Target share price: $25.14
Acquirer share price: $48.62
Expected closing: N/A
Annualized gain: N/A
Note: Take-Two management rejected EA’s unsolicited bid in February, but
subsequently faced opposition from shareholders wanting to cash in on the deal.
Vital Signs Inc. (VITL), GE Healthcare Inc. (GE)
Premium offered: $0.69 or 0.93%
Acquirer: GE
Target: VITL
Offer per share: $74.50 cash
Value of outstanding common equity: $990,850,000
Target share price: $73.81
Expected closing: Fourth quarter 11/15/2008
Annualized gain: 4.37%
Wendy’s International Inc. (WEN), Triarc Cos. (TRY)
Premium offered: $0.26 or 1.03%
Acquirer: TRY
Target: WEN
Shares offered per share: 4.25 shares
Value of offer per share: $25.25
Value of outstanding common equity: $2,206,413,000
Acquirer share price: $5.94
Target share price: $24.99
Expected closing: Second half 2008 9/30/2008
Annualized gain: 11.74%
Wm. Wrigley Jr. Co. (WWY), Mars Inc.
Premium offered: $0.55 or 0.69%
Acquirer: Mars
Target: WWY
Offer per share: $80 cash
Value of outstanding common equity: $21,920,000,000
Target share price: $79.45
Expected closing: January 2009 1/15/2009
Annualized gain: 1.82%
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