CFA Arbitrage Spreads On Pending Mergers & Acquisitions

Mar.10, 2008 in Market Outlook, Mergers and Acquisitions

Last Update: 3/10/2008 10:30:59 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.
Monday EDT.

Annualized rate of return is based on Monday’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.

3Com Corp. (COMS), Bain Capital Partners LLC

Premium offered: $2.03 or 62.08%
Acquirer: Bain Capital
Target: COMS
Offer per share: $5.30 cash
Value of outstanding common equity: $2,117,350,000
Target share price: $3.27
Expected closing: First quarter
Annualized gain: N/A

Alliance Data Systems Corp. (ADS), Blackstone Group

Premium offered: $36.73 or 81.59%
Acquirer: Blackstone
Target: ADS
Offer per share: $81.75 cash
Value of outstanding common equity: $6,433,725,000
Target share price: $45.02
Expected closing: N/A
Annualized gain: N/A
Note: On Jan. 28, Alliance Data said Blackstone likely won’t go through with the deal because of conditions being sought on the takeover by the Office of the Comptroller of Currency, a federal banking regulator.

American Financial Realty Trust (AFR), Gramercy Capital Corp. (GKK)

Premium offered: $0.36 or 5.10%
Acquirer: GKK
Target: AFR
Offer per share: 0.12096 share and $5.50 per share
Value of offer per share: $7.44
Value of outstanding common equity securities: $965,894,758
Acquirer share price: $16.05
Target share price: $7.08
Expected closing: Late March 3/31/2008
Annualized gain: 88.72%

BEA Systems Inc. (BEAS), Oracle Corp. (ORCL)

Premium offered: $0.29 or 1.52%
Acquirer: ORCL
Target: BEAS
Offer per share: $19.38 cash
Value of outstanding common equity: $7,854,714,000
Target share price: $19.09
Acquirer share price: $19.38
Expected closing: Mid-2008 6/1/2008
Annualized gain: 6.68%

Bright Horizons Family Solutions Inc. (BFAM), Bain Capital Partners LLC

Premium offered: $3.71 or 8.33%
Acquirer: Bain Capital
Target: BFAM
Offer per share: $48.25 cash
Value of outstanding common equity: $1,268,975,000
Target share price: $44.54
Expected closing: Second quarter 5/15/2008
Annualized gain: 46.07%

ChoicePoint Inc. (CPS), Reed Elsevier (ENL)

Premium offered: $1.63 or 3.37%
Acquirer: ENL
Target: CPS
Offer per share: $50 cash
Value of outstanding common equity: $3,575,000,000
Target share price: $48.37
Acquirer share price: $36.98
Expected closing: Second quarter 5/15/2008
Annualized gain: 18.64%

(MORE TO FOLLOW) Dow Jones Newswires

March 10, 2008 10:30 ET (14:30 GMT)

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