dealReporter Risk Arbitrage Weekly Overview 18 February 2011 - 24 February 2011

25/02/2011

In a press release on Thursday Snai revealed details of a comittment letter signed for a financing contract with a number with Unicredit, Deutsche Bank and Intesa-Imi. The refinancing operation will allow it access to lines of credit sufficient to refinance the group's existing debt, and is linked to the takeover of Snai by Global Games. The deadline in the takeover agreement for Snai to reach a debt refinancing agreement has been postponed until 7 March 2011.

The board of Mouchel confirmed on Thursday it is now in advanced discussions with one potential offeror and has signed a co-operation agreement in relation to a potential offer being made for the company. Later that day the board of Costain, previously linked to the deal, confirmed it was not the party in discussions with Mouchel.The making of any offer remains subject to a number of pre-conditions, including the completion of due diligence and the arrangement of financing which is likely to take a number of weeks.

Kyowa Hakko Kirin, the Japan based pharmaceutical/chemicals company, announced on Monday a recommended cash acquisition for UK based specialty drug maker ProStrakan. The boards of the companies have reached agreement on the terms - GBP 1.30 in cash for each ProStrakan share, valuing the entire share capital of ProStrakan at approximately GBP 292m. The price represents a premium of approximately 41% to the ProStrakan closing price of GBP 0.925 pence on 12 November 2010, the last business day prior to the start of the current offer period.KHK has also received irrevocable undertakings representing approximately 47.71% of ProStrakan. It is expected that the Scheme Document will be posted to ProStrakan shareholders in March 2011, meeetings will be held in April 2011 and that the Scheme will become effective by early June 2011.

Last Friday it was confirmed the minimum acceptance condition of Johnson & Johnson's offer for Crucell had been satisfied.At the expiry of the initial offer period, on 16 February 2011, 95.24% of the share capital of Crucell had been tendered.

Last Friday the board of BAE Systems delcared its offer for Norkom wholly unconditional. On 17 February 2011 the offer was declared unconditional as to acceptances, after BAE received acceptances representing approximately 84.3% of Norkom's share capital. All further conditions having been satisfied or waived since then, the offer is now unconditional in all respects.

DuPont announced last Friday it was extending the offer period, relating to their recommended offer for Danisco, so the new expiry date was 1 April 2011. The results of the offer are now expected to be published on 4 April 2011, and the Offer remains expected to be completed in the second quarter.

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