dealReporter Risk Arbitrage Weekly Overview 07 October 2010 - 15 October 2010

15/10/2010

On Thursday morning the National Bank of Greece announced the results of its right issues as well as its convertible notes issuance. The Hellenic Republic exercised its pre-emptive rights in this context.
On Wednesday Standard Chartered announced a GBP 3bn rights issue. The terms for the issue are 1 for 8 and the issue price was set at GBP 12.80, a 32.93% discount to the previous day’s closing share price. The bank said the rights issue will help satisfy Basel III requirements whilst allowing the company to pursue growth opportunities.
On Monday Nordic Capital announced that it had offered SEK 77 to a number of Munters shareholders over the weekend, conditional upon acquiring more than 50% with the intention of launching a subsequent mandatory offer. However, this condition was not met and as such no shares were purchased under this offer. The two main shareholders AB Industrivärden and Investment AB Latour had previously undertaken to accept the rival bid by Alfa Laval unless another bid was made at SEK 78.75 or above.
This was followed on Wednesday by Nordic Capital, through subsidiary Cidron Interessenter, announcing its intention to increase its offer for Munters to SEK 77. The offer has a 50% acceptance threshold, the period for which runs until 26 October. This offer has received irrevocable undertakings of approximately 10.3% of voting shares in Munters. The Munters board of directors unanimously recommended the increased offer, which was 2.7% higher than the latest offer of SEK 75 from Alfa Laval.
On Tuesday Intec announced that it had posted the circular for the Scheme for its takeover by US-based CSG Systems.
Monday saw the deal close between Dimension Data Holdings and Japan’s NTT. The bidder said its offer became unconditional upon the receipt of 93.42% acceptances from Dimension Data shareholders. The offer will remain open for the remaining shareholders to accept and will not be closed without 14 days prior notice. A squeeze out with be pursued in accordance with the UK and South African companies acts, and NTT will request that Dimension Data applies to delist both in the UK and South Africa.
On Friday a new expected deal came to market as Demag Cranes AG, the German cranes and hoists supplier, stated publicly that it had rejected an unsolicited approach by an undisclosed foreign bidder. The view from the Demag management and board of directors was that preliminary discussions were not in the interest o f the company or its shareholders. Later that day Konecranes confirmed itself as the approaching party said there were no ongoing discussions. However the company did state that it believed the combination of Konecranes and Demag would follow “convincing industrial logic”.
Last week Thursday the Crucell shareholder Van Herk Group issued a press release stating a view that the EUR 24.75 per share offer from Johnson& Johnson was too low. Van Herk, a leading shareholder, said the premium to the stock price pre-announcement was undervaluing the company, which distorted the apparent attractiveness of the premium to be paid by the bidder, even without taking into account the synergies to be reaped by Johnson & Johnson.
Last week Thursday Deutsche Bank announced the completion of its rights issue that raised gross proceeds of EUR 10.2bn. A total of 99.31% of subscription rights were exercised by their owners.

Press Release 15 Oct 2010.pdf

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dealReporter Risk Arbitrage Weekly Overview 07 October 2010 - 15 October 2010

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