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Mar 24_2011 Bloomberg Brief


                                                                                                                                                    Mergers                                                                                                                                     03.24.11

                        M&A WATCh:
                                                                                              Caterpillar ConsiDers sale of logistiCs Busi-
                                                                                              ness. The company hired BofA Merrill and Robert W. Baird to                                                                                                                              cheaper Sprint
               Felice Maranz and
                 Gelu Sulugiuc
                                                                                              explore options.
                                                                                              nomos Bank ipo seeks $800 mln. A 20 percent stake
                                                                                                                                                                                                                                                                                       Signaling merger
                                                                                              will be offered in the second quarter, according to people with
knowledge of the listing.                                                                                                                                                                                                                                                              By AMy ThoMSoN ANd RITA NAzARETh
                                                                                                                                                                                                                                                                                         sprint nextel Corp.’s shares are so
Volkswagen maY paY eu6.6 Bln for naVistar. Based on a 25% premium, VW                                                                                                                                                                                                                  battered after at&t inc.’s $39 billion offer
could well pay EU6.6 billion ($9.3 billion)out of its EUR15.4 billion net cash pile,Chevreux                                                                                                                                                                                           for t-mobile usa that investors are valu-
analysts said.                                                                                                                                                                                                                                                                         ing the third-largest U.S. mobile phone
Diageo maY make $14.6 Billion of aCquisitions, liBerum saYs. The distiller                                                                                                                                                                                                             carrier at a discount to its net assets.
may be able to fund deals by 2012 without making disposals, Liberum Capital said.                                                                                                                                                                                                        Sprint’s 11 percent slide to $4.49 since
                                                                                                                                                                                                                                                                                       the T-Mobile USA deal was announced
google has BuYout talks with path. Founded by former Facebook executive,                                                                                                                                                                                                               March 20 has left its stock trading below
Path received $8.5 million from Kleiner Perkins Caufield & Byers and Index Ventures, the                                                                                                                                                                                               the company’s $4.87 a share in assets
Wall Street Journal reported.                                                                                                                                                                                                                                                          minus liabilities. That means investors
gerDau hires Banks for $3.9 Bln ipo. The steelmaker hired BTG, Itau and Bra-                                                                                                                                                                                                           can now buy Sprint for 92 cents on the
desco for the planned April 12 offering.                                                                                                                                                                                                                                               dollar, cheaper than 99 percent of com-
                                                                                                                                                                                                                                                                                       panies in the Standard & Poor’s 500
anglo ameriCan seeks iron ore assets. Anglo is spending about $17 billion                                                                                                                                                                                                              Index excluding financials, according to
to expand capacity.                                                                                                                                                                                                                                                                    data compiled by Bloomberg. Sprint’s
Bats to Close $365 mln Chi-X Deal in June. Bats will likely know by April 1 ho-                                                                                                                                                                                                        licenses from the U.S. Federal Commu-
much information it needs to provide the antitrust regulator; the trading systems should be                                                                                                                                                                                            nications Commission, which give it the
integrated from September to November.                                                                                                                                                                                                                                                 right to operate its network in specific
                                                                                                                                                                                                                                                                                       regions, alone are worth $19.9 billion,
                                                                                                                                                                                                                                                                                                                         continued on next page

 Daily Data                                                                                                                                                                                                                                          Breaking Deals
                                                                                                                                                                                                                                                                                                             ToTal Value    TargeT
                                                                                                                                                                                                                                                         TargeT Name                acquirer Name
 Comparisons                                                                                                                                                                                                                                                                                                    ($m)     price/ebiTDa
                                                                                                                                                                                                                                                     Castle Cover Ltd          Ageas                             85.6                  -
  Summary                                                                                                         ToTal                                  year To DaTe                                              prior yTD
                                                                                                                                                                                                                                                     Land & Building           Unnamed Buyer                     76.0                  -
  Number of Announced Deals                                                                                                  21                              5,304                                                 5,908
                                                                                                                                                                                                                                                     Tianjin Port Shihua Oil   Tianjin Port Co Ltd               50.2                  -
  Volume ($)                                                                                                              306.4                       570.3 billion                                         444.3 billion
                                                                                                                                                                                                                                                     Chungbuk Soju Co Ltd      Lotte Chilsung Beverage Co        31.3                  -
  Avg Disclosed Deal Size ($M)                                                                                             27.9                                 206                                                147.6
                                                                                                                                                                                                                                                     Heishui Bingchuan Hydr.   Sichuan Minjiang Hydropower       18.3                  -
  Average Premium                                                                                                           NA                                18%                                                   20%
                                                                                                                                                                                                                                                     IO Entertainment Co Ltd   Joymax Co Ltd                     17.7                  -
                                                                                                                                                                                                                                                     Corelex Holdings Co Ltd   Japan Pulp & Paper Co Ltd         13.8                  -
                                                          Deal Volume for U.S. M&A Targets                                                                                                                                                           Green Busan Investment    Green Non-Life Insurance Co        8.9                  -
                                                                                                                                                                                                                                                     Land & Building           Maruwa Seisakusho KK               2.7                  -
                        300                                                                                                                                                                                                 120%
                                                                                                                                                                                                                                                     IDY Co Ltd                Systena Corp                       1.8                  -
                        250                                                                                                                                                                                                 100%
                                                                                                                                                                                                                                                     Yesterday’s Deals
  Volume ($ billions)

                                                                                                                                                                                                                                   Average Premium

                        200                                                                                                                                                                                                 80%                                                                              ToTal Value    TargeT
                                                                                                                                                                                                                                                         TargeT Name                acquirer Name
                                                                                                                                                                                                                                                                                                                ($m)     price/ebiTDa
                        150                                                                                                                                                                                                 60%                      GAC Changfeng Motor       Guangzhou Automobile Grp          1,004                 -
                                                                                                                                                                                                                                                     Sanex Pers. Care Brand    Colgate-Palmolive Co                951                 -
                        100                                                                                                                                                                                                 40%
                                                                                                                                                                                                                                                     Vislink PLC               Shareholders                        819              7.21
                         50                                                                                                                                                                                                 20%                      Provimi Pet Food          Advent International Corp           266                 -
                                                                                                                                                                                                                                                     Certain Assets            Unilever PLC                        215                 -
                           0                                                                                                                                                                                                0%                       Land & Building           Hammerson PLC                       112                 -














                                                                                                                                                                                                                                                     Lincat Group PLC          Middleby Corp                        84              8.81
                                                                                                                                                                                                                                                     Aura Minerals Inc         Yamana Gold Inc                      64                 -
                                                                                          Volume                                   Average Premium
                        Source: Bloomberg                                                                                                                                                                                                            Two Elwood Assets         Unnamed Buyer                        52                 -
                                                                                                                                                                                                                                                     Accordent Technologies    Polycom Inc                          50                 -
03.24.11                                                                                                                          mERgERs | Bloomberg Brief                                                                         2

Sprint Cheaper than 99% of S&p 500 Signaling Merger…
continued from page 1

                    46 percent more than its market
                    capitalization of $13.6 billion.                                                         Value Multiples for Sprint Nextel Corp.,
                      AT&T’s purchase of T-Mobile USA                                                           S&P 500 Telecom Services Index
                                                                                              70                                                                                              14
                    from Deutsche telekom ag will
                    give the combined company more                                            60                                                                                              12

                                                                                                                                                                                                   EV-to-Ebitda Multiples (times)
                    than double the customers of Sprint,

                                                              Sprint Nextel Price ($/share)
                    while Verizon wireless has almost                                         50                                                                                              10

                    twice the market share. To boost                                          40                                                                                              8
                    value, Sprint may buy the remaining
                    stake in partner Clearwire Corp. or                                       30                                                                                              6
                    another carrier such as metropCs                                          20                                                                                              4
                    Communications inc., according to
                    Dan hays, a director at consultancy                                       10                                                                                              2
                    PRTM. It may also become a target
                                                                                              0                                                                                               0
                    for Verizon as carriers that run on the                                    2000   2001   2002   2003   2004    2005    2006     2007     2008     2009    2010     2011
                    same network technology are forced                                                                 Sprint Nextel Last Price
                    to combine, he said.                                               Source: Bloomberg
                                                                                                                       Current EV to Trailing 12-Month Ebitda
                                                                                                                       S&P 500 Telecom Services Index EV to Trailing 12-Month Ebitda
                      “Someone, whether it’s Sprint or
                    Verizon, is going to have to serve as
                    a catalyst for the consolidation,” said     The price-to-sales ratio of 0.41 for                                          michael nelson, an analyst at Mi-
                    hays. “What’s clear is that they can’t    Sprint is also the cheapest among                                               zuho Securities USA Inc. The stan-
                    all afford to remain independent.”        50 companies in the MSCI World                                                  dard is shared by Verizon Wireless,
                      Sprint had held discussions with        Telecommunication Services Index.                                               MetroPCS, leap wireless interna-
                    deutsche Telekom about buying               Sprint’s shares traded as low as                                              tional inc. and u.s. Cellular Corp.
                    T-Mobile USA prior to the AT&T            0.18 times book value in November                                               AT&T and T-Mobile USA are on the
                    announcement, people with knowl-          2008, two months after lehman                                                   GSM standard.
                    edge of the matter said this month.       Brothers holdings inc.’s collapse
                    Talks had been on and off, and the        deepened the worst financial crisis
                    companies disagreed on the value          since the Great depression.
                    of T-Mobile USA. Sprint’s shares had        “It’s a reflection of their weak per-
                    surged 19 percent this year before        formance for a number of years,”
                    the AT&T deal was announced.              said kevin shacknofsky, who
                      With the purchase of T-Mobile           helps manage $7 billion for Alpine
                    USA, AT&T will surpass Verizon as         Mutual Funds. “When you trade be-
                    the largest U.S. wireless carrier, in a   low book, it means that you think                                                 Bloomberg Brief mergers
                    deal it said may take a year to close.    management is destroying value.                                                   Bloomberg LP
                    AT&T anticipates having to divest         They are not getting returns on in-                                               731 Lexington Avenue, New York, NY 10022
                    some network assets and subscrib-         vestments they are putting in the
                    ers as a condition for regulatory ap-     network in building the business.”                                                     newsletter Ted Merz
                                                                                                                                                executive editor
                    proval, a person with knowledge of          Sprint listed net assets of $14.5                                                                212-617-2309
                    the situation said this week.             billion at the end of 2010, according
                                                                                                                                                Bloomberg news Katherine Snyder
                      Chief Executive officer Dan             to a filing with the U.S. Securities                                              managing editor
                    hesse, 57, said Sprint plans to sub-      and Exchange Commission. Total                                                                    212-617-5212
                    mit its concerns over AT&T’s pro-         assets were $51.65 billion, while it                                                mergers editor Rob Williams
                    posed acquisition of T-Mobile USA         had $37.11 billion in liabilities.                                                       
                    to Congress because the combina-            Property, plants and equipment                                                                   212-617-8844
                    tion hurts the wireless industry and      were valued at $15.2 billion and in-                                                  Contributing
                    will have “tremendous” power.             tangible assets were $22.7 billion,                                                   Data editors Carol Chuang
                      “They got stood up at the altar,”       mostly made up of $19.9 billion in                                                                 212-617-3642
                    said kevin smithen, an analyst at         FCC licenses.
                    Macquarie Group Ltd. “Without that          AT&T’s absorption of T-Mobile                                                                           Pratik M. Patel
                    transaction, we believe that Sprint                                                                                                       
                                                              USA and its 34 million customers                                                                          212-617-8705
                    is the odd man out.”                      will leave Sprint further behind with
                      Sprint gained 0.5 percent yester-       16 percent of the U.S. wireless mar-                                                         reporter Brandon Hamilton
                    day, leaving it valued at 0.92 times      ket. The new AT&T will have 39 per-                                                                   212-617-7208
                    net assets. That’s cheaper than all       cent and Verizon Wireless has 31
                    the other 420 non-financial stocks        percent, data from emarketer inc.                                                 To subscribe via the Bloomberg Professional
                    in the S&P 500 except for three utili-    and Comscore inc. showed.                                                         Terminal type BRIEF <go> or on
                    ties: nrg energy inc., Constella-           Sprint may consider buying com-                                                 the web at
                    tion energy group inc. and ame-           panies that use the same network                                                  To contact the editors:
                    ren Corp.                                 technology, known as CdMA, said
03.24.11                                                                             mERgERs | Bloomberg Brief                    3

                                             THe Wire              BloomBerg News

 ■ elaine la roche, who quit as
 head of China international Capital
                                             caterpillar ‘in a Hurry’ to meet Demand, ceo Says
 Corp. 11 years ago, returned to the           Caterpillar inc. is “in a hurry” to expand its product range and meet growing de-
 first Sino-foreign investment bank          mand, Chief Executive officer Doug oberhelman said. Caterpillar is betting on higher
 as a senior adviser, four people with       mining-equipment sales with its $8.6 billion acquisition of Bucyrus international inc.
 knowledge of the matter said. She           as Asian demand drives up commodity prices. The Bucyrus deal is expected to be
 was previouslyvice chairman of Jp-          complete in mid-2011. Caterpillar also bought U.S. locomotive maker electro-motive
 morgan Chase & Co.’s operations             Diesel in August and agreed in october to purchase German engine producer mwm
 in China.                                   holding gmbh. Caterpillar plans to expand its manufacturing in Asia. The company,
                                             which has capacity to make 180,000 units a year globally, aims to boost Asian capac-
 ■ martin lovegrove, an adviser              ity alone to that level in 2015, Group President rich lavin said.
 to Bp plc and former vice chair-              Caterpillar is examining options for its third-party logistics business including a pos-
 man of banking group standard               sible sale. The business, part of Caterpillar Logistics Services Inc., could also be
 Chartered plc, is the new chairman          restructured as an independent unit. Bank of america merrill lynch and robert w.
 of Citigroup inc.’s global energy           Baird & Co. are advising the company and a decision is expected by the end of the
 business. Lovegrove advised BP on           year, Caterpillar said.
 a $7 billion asset sale to apache                                                                                        —Shruti Singh
 Corp. last year.

 ■ Jes staley, Jpmorgan Chase’s
 head of investment banking, told
                                             colgate to buy unilever’s Sanex for about $940 mln
 visiting analysts that risks tied to U.S.     Colgate-palmolive agreed to buy unilever’s sanex personal-care unit for about
 home mortgages deserve as much              $940 million. Colgate also will sell its Colombian laundry detergent business to Uni-
 concern as those facing the Euro-           lever for $215 million.
 pean Union, according to nomura               The past five years have yielded 275 deals for personal-care companies globally.
 holdings. The residential mortgage-         The buyers in 25 of those deals paid a median of about 1.1 times their targets’ sales
 bond market “remains very messy             over that period, according to data compiled by Bloomberg. Colgate paid about $1
 and a resurgence in volumes seems           billion for Latin American toothpaste maker kolynos oral Care in 1995.
 a long way off, as the U.S. housing           Unilever, which bought Sanex as part of its 1.2 billion euro ($1.7 billion) acquisition
 market continues to face headwinds,”        of sara lee’s international toiletries unit, was forced to dispose of the brand by the
 according to a note by Nomura ana-          European Union.
 lysts led by glenn schorr.                                                           — Lauren Coleman-Lochner and Clementine Fletcher

 ■ marek raczko joined the Polish
 investment banking unit of goldman
 sachs as an associate economist
                                             Nomos bank ipo Said to Seek $800 million
 after working at the Bank of interna-         nomos Bank, the Russian lender controlled by billionaire alexander nesis, plans
 tional settlement.                          an IPo that may raise as much as $800 million in London and Moscow, said two
                                             people with knowledge of the matter.
 ■ parker normann joined edge-                 The lender will raise about 5.5 billion rubles ($190 million) selling new shares in
 worth economics to advise on                the IPo, and its existing shareholder roman korbachka plans to sell most of his
 antitrust issues. Normann was an            stake, according to the people, who declined to be named because the information
 economist at Capanalysis group              isn’t public. In total, a 20 percent stake will be offered in the second quarter, said
 for 10 years.                               the people. Assets increased 91 percent to 530.2 billion rubles as of dec. 31 from
                                             a year earlier.
 ■ richard C. hsu joined king &                Nomos reported that profit more than doubled last year to 10.4 billion rubles.
 spaulding llp to work in the law            Credit suisse group, Deutsche Bank and VtB Capital are managing the IPo
 firm’s corporate practice group from        along with Citigroup.
 his position as managing partner                                                                        — Zijing Wu and Jason Corcoran
 and former chair of kilpatrick
 townsend llp’s technology trans-
 actions practice.
                                             airTran Shareholders approve Southwest purchase
                                               airtran holdings inc.’s shareholders approved the $1.4 billion cash-and-stock buy-
                  — Brandon Hamilton and
                    Nipa Piboontanasawat     out offer from southwest airlines Co., moving the carriers closer to completing their
                                             tie-up. Southwest, based in dallas, is the fourth-largest U.S. carrier by passenger traf-
                                             fic and had $12.1 billion in sales last year. AirTran is 10th-biggest in the U.S. and had
 E-mail people news to                       2010 revenue of $2.62 billion.
                                                                                                                    continued next page
03.24.11                                                                          mERgERs | Bloomberg Brief                    4

                                           the Wire
                                           continued from page 3

                                                                                                               — Mary Jane Credeur
 ■ Chinese private-equity firms more
 than doubled their share of the total-
 private equity deal value in China to
 20 percent last year from 2007, mck-
                                           gerdau Hires bTg, itau, bradesco for $3.9 bln ipo
 insey said. It forecasts that domestic      gerdau and shareholders hired Banco Btg pactual, Banco Bradesco BBi and
 investors will boost commitments to       Banco itau to manage Brazil’s biggest share sale in six months.
 buyout firms as much as fivefold by         Gerdau, Latin America’s largest steelmaker, and shareholders will sell as much as
 2015. Chinese limited partners had        6.5 billion reais ($3.9 billion) of common and preferred shares, including supplemen-
 committed about $40 billion to the        tary offerings, according to a prospectus sent to Brazil’s securities regulator . Porto
 industry at the end of 2009. Carlyle,     Alegre, Brazil-based Gerdau will price the offering on April 12, and the shares will
 kkr and Blackstone raised yuan-           start trading on April 14.
 denominated funds last year.                According to the prospectus, Gerdau will offer as many as 68 million common
                                           shares and 134.8 million preferred shares in a primary offering, while sharehold-
 ■ Doughty hanson may list shares          ers will sell as much as 69 million preferred shares in a secondary sale. The shares
 of Spanish bus operator avanza or         were worth 5.2 billion reais the day before the prospectus was released.
 sell the company outright, Expan-                                                                             — Juan Pablo Spinetto
 sion reported, without citing anyone.
 doughty hanson, which bought
 Avanza in 2006, hired Jpmorgan
 Chase to advise on the sale of the        u.K. Said to plan bank Sales for pre-election Windfall
 company, which may be valued at             A sale of the British taxpayer’s 65.8 billion-pound ($107 billion) stake in lloyds
 900 million euros ($1.27 billion), the    Banking group and royal Bank of scotland group is likely to start next year,
 newspaper said.                           creating a one-time budget windfall before the next election, according to four
                                           people familiar with the talks. Lloyds, 41 percent government-owned, will probably
 ■ BVf partners, which held about          be offered to investors first as the London-based bank is better prepared for a sale,
 12.5% of Celera by March 22, said         said the people, who declined to be identified because the discussions are private
 it will to talk to management about       and the plans may change. The coalition government would aim to return RBS, 83
 Quest diagnostics’s $344 million          percent taxpayer-owned, to majority private ownership by the end of 2014, three of
 buyout offer. The cash deal is ex-        the people said.
 pected to close April 30.                                                               — gavin Finch, Jon Menon and Thomas Penny

 ■ Bmg rights management made
 bids for three different sets of assets
 from warner music, said two people        anglo american Seeks to buy iron ore assets
 familiar with the talks. one bid was       anglo american is seeking to acquire iron ore assets as the price of the steel-
 for Warner Music’s Warner/Chappell        making raw material rises, said James harman, head of business development for
 publishing business, one for selected     Anglo’s iron ore and coal unit. Anglo, which is spending about $17 billion to expand
 European music catalog assets             capacity, is seeking to increase its annual iron ore output to 80 million metric tons by
 and one for the whole company, the        2014 and 150 million tons by 2020, harman said.
 people said, declining to be identified                                                          — Rebecca Keenan and Jason Scott
 because the talks are private. The
 bids value the publishing business at
 between $1.4 billion and $1.5 billion
 and the whole company at about            bats plans to close chi-X purchase by end of June
 $2.8 billion, one of the people said.       Bats global markets plans to complete its acquisition of Chi-X europe by the end
                                           of June, the head of its European business said. Bats will likely know by April 1 how
 ■ Investors have sunk $355 million        much information it needs to provide the U.K. antitrust regulator, mark hemsley,
 into Blackstone’s strategic alli-         chief executive officer of Bats Europe said. Assuming that it concludes the purchase
 ance fund in the past four months,        on schedule, Bats will work to integrate the two trading systems from September
 bringing the total raised by the          through to November, hemsley said.
 hedge fund incubator to $2.4 billion,       Bats will pay $300 million for Chi-X Europe plus an additional $65 million if profit
 Reuters reported.                         beats targets, two people familiar with the matter have said.
                                                                                                                 — Nandini Sukumar
03.24.11                                                                            mERgERs | Bloomberg Brief                          5

commeNTary          By tom BurNett, guest columNist

           Western Digital purchase to Test obama’s antitrust enforcement
             While AT&T Inc.’s proposed acquisi-       hitachi and Western digital are         post-merger basis. The nearby table
           tion of T-Mobile USA from deutsche        clearly expecting a serious review of     shows market shares of the hard-
           Telecom is considered a litmus test on    the proposal as their contract carries    drive producers on a pre-merger and
           the obama administration’s antitrust      a March 7, 2012, “out” date for termi-    post-merger basis. The combined
           enforcement policy, Western digital       nation of the agreement.                  pre-merger hhI figure is 2,368 and it
           Corp.’s purchase of a hitachi Ltd. unit     As the accompanying table indi-         rises to 3,484 if the hitachi-Western
           raises significant antitrust issues and   cates, the transaction will create a      digital combination is completed.
           will be reviewed more quickly.            disk-drive powerhouse with a global          In the August 2010 guidelines, the
             Western digital on March 7 agreed       market share of 49%. The combined         FTC and doJ define a pre-merger
           to acquire the global storage unit of     company would have generated fourth       market as “moderately concentrated”
           hitachi for $4.3 billion. The purchase    quarter revenues in 2010 of $4.0 bil-     if its hhI is between 1,500 and 2,500.
           will boost the company’s leading          lion, according to Western digital.       The hitachi-Western digital proposal
           market position in the production and       Fourth quarter net income would         would total 2,368 on the scale.
           sale of hard-disk drives.                 have exceeded $300 million and
             Western digital plans to pay hitachi    Western digital expects the proposal      ‘significant Concerns’
           $3.5 billion in cash and 25 million       to be accretive to its non-GAAP earn-       According to the guidelines, merg-
                                                     ings before transaction-related ex-       ers raising the hhI by more than 100
                                                     penses. No specific figure for syner-     points would “raise significant com-

                                                     gies and cost savings was disclosed,      petitive concerns and often warrant
                                                     but efficiencies are anticipated which    scrutiny.” The Western digital-hitachi
                                                     will add to the earnings accretion.
               Investors who are                                                               proposal would raise the hhI to 3,484,
                                                                                               or by 1,116 points, which will certainly
                concerned about                      antitrust risk
                                                       This transaction appears to carry
                                                                                               draw detailed regulatory review.
                                                                                                 If the proposed transaction closes,
             government antitrust                    significant antitrust risk. on August     the top two competitors will control al-
                                                     19, the Federal Trade Commission          most 80% of the global market in this
             policies should watch                   and the department of Justice issued      important technological device. Inves-
           this transaction carefully.               a formal statement on the “horizontal
                                                     Merger Guidelines” that the agen-
                                                                                               tors who are concerned about current
                                                                                               government antitrust policies should
            Western Digital shares                   cies will use in their examinations of    watch this transaction carefully.
                                                     potential mergers. The agencies de-         The market has already spoken—
                are trading about
                           ‘‘                        fined the calculation of the herfind-     Western digital shares are trading
             13% higher since the                    ahl-hirschman Index, which is used
                                                     to measure the effect on a market
                                                                                               about 13% higher since the hitachi
                                                                                               announcement as investors focus on
            Hitachi announcement.                    that a horizontal, or directly competi-
                                                     tive, merger might have.
                                                                                               the commanding market share that
                                                                                               would result from the merger.
                                                       The index is calculated by sum-
                                                     ming the squares of the individual        Tom Burnett, CFA, is director of research at
                                                     market shares on a pre-merger and         Wall Street Access.

           new Western digital shares valued
           at $750 million. If the deal closes on    hard-Disk Drive unit market share
           these terms, hitachi will control about
           10% of Western digital.
                                                     (based on fourth quarter 2010 data)
             hitachi will also place two repre-                                                       pre-merger          poST-merger
                                                     Western Digital                                       31%                 49%
           sentatives on the new Western digi-
           tal board of directors. The companies     Seagate                                               29%                 29%
           expect to face a detailed regulatory      Hitachi                                               18%                  --
           review and hope to close the trans-       Samsung                                               11%                 11%
           action during the third quarter. The      Toshiba                                               11%                 11%
           purchase will also have to clear the      HERFIndaHl-HIRscHman IndEx                           2,368               3,484
           EU authorities.                           Source: Western Digital
 03.24.11                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            mERgERs | Bloomberg Brief                                                                                     6

 Deal arbitrage

                                                                                                                                                                                                                                                                 Deal Size                                                       aNNouNceD                                                         eXpecTeD                                                                         offer per                                                   aNNouNceD                                                 laST TargeT    curreNT             laST SpreaD
              TargeT                                                                                                                                      acquirer                                                                                                 ($m)                                                             DaTe                                                        compleTioN DaTe                                                                      SHare                                                     premium iN %                                                  price      premium %   SpreaD      moVe
Family Dollar Stores Inc                                                                                         Private                                                                                                                                           7,710                                                         02/15/11                                                                         -                                                                  60.00                                                                  39.28                                          51.77         15.90      8.23       -0.43
Talecris Biotherapeutics Holdings                                                                                Grifols SA                                                                                                                                        3,902                                                         06/07/10                                                                  06/30/11                                                                  30.25                                                                  53.94                                          26.32         14.95      3.93       -0.32
Massey Energy Co                                                                                                 Alpha Natural resources Inc                                                                                                                       8,277                                                         01/29/11                                                                         -                                                                  70.10                                                                  30.56                                          66.59          5.26      3.51       -0.46
Alcon Inc                                                                                                        Novartis AG                                                                                                                                      11,743                                                         12/15/10                                                                  04/11/11                                                                 168.00                                                                   4.45                                         165.08          1.77      2.92       -0.65
Citadel Broadcasting Corp                                                                                        Cumulus Media Inc                                                                                                                                 1,720                                                         12/17/10                                                                  12/31/11                                                                  36.87                                                                  35.16                                          34.35          7.34      2.52        0.13
Progress Energy Inc                                                                                              Duke Energy Corp                                                                                                                                 25,531                                                         01/10/11                                                                  12/31/11                                                                  46.55                                                                   6.13                                          44.99          3.48      1.56        0.03
Lubrizol Corp                                                                                                    Berkshire Hathaway Inc                                                                                                                            9,218                                                         03/14/11                                                                  09/30/11                                                                 135.00                                                                  24.17                                         133.77          0.92      1.23       -0.01
TMX Group Inc                                                                                                    London Stock Exchange Group                                                                                                                       1,941                                                         02/09/11                                                                  06/30/11                                                                  25.05                                                                   8.06                                          24.01          4.33      1.04        0.09
Bucyrus International Inc                                                                                        Caterpillar Inc                                                                                                                                   8,609                                                         11/15/10                                                                  06/30/11                                                                  92.00                                                                  31.29                                          91.07          1.02      0.93       -0.01
Hughes Communications Inc                                                                                        EchoStar Corp                                                                                                                                     1,824                                                         02/14/11                                                                         -                                                                  60.70                                                                   3.96                                          59.77          1.56      0.93        0.00
Dionex Corp                                                                                                      Thermo Fisher Scientific Inc                                                                                                                      2,068                                                         12/13/10                                                                  04/07/11                                                                 118.50                                                                  27.60                                         117.72          0.66      0.78        0.20
Emergency Medical Services                                                                                       Clayton Dubilier & rice LLC                                                                                                                       2,987                                                         02/14/11                                                                  06/30/11                                                                  64.00                                                                  -5.22                                          63.25          1.19      0.75       -0.05
Nicor Inc                                                                                                        AGL resources Inc                                                                                                                                 3,138                                                         12/07/10                                                                  06/30/11                                                                  53.77                                                                  17.61                                          53.03          1.40      0.74        0.08
Beckman Coulter Inc                                                                                              Danaher Corp                                                                                                                                      6,965                                                         02/07/11                                                                  04/27/11                                                                  83.50                                                                  15.23                                          82.95          0.66      0.55        0.07
Western Coal Corp                                                                                                Walter Energy Inc                                                                                                                                 3,928                                                         11/18/10                                                                  06/30/11                                                                  12.13                                                                  55.94                                          11.68          3.87      0.45        0.07
NYSE Euronext                                                                                                    Deutsche Boerse AG                                                                                                                                9,532                                                         02/15/11                                                                  12/31/11                                                                  35.02                                                                   8.10                                          34.59          1.26      0.43       -0.07
Atheros Communications Inc                                                                                       qUALCOMM Inc                                                                                                                                      2,917                                                         01/05/11                                                                  06/30/11                                                                  45.00                                                                  26.55                                          44.61          0.87      0.39       -0.02
Pride International Inc                                                                                          Ensco PLC                                                                                                                                         8,466                                                         02/07/11                                                                  06/30/11                                                                  42.67                                                                  23.61                                          42.30          0.87      0.37       -0.03
Nationwide Health Properties Inc                                                                                 Ventas Inc                                                                                                                                        6,819                                                         02/28/11                                                                  09/30/11                                                                  40.53                                                                  15.16                                          40.22          0.78      0.31       -0.07
Smurfit-Stone Container Corp                                                                                     rock-Tenn Co                                                                                                                                      3,905                                                         01/21/11                                                                  06/30/11                                                                  38.18                                                                  30.07                                          37.93          0.67      0.25       -0.02

   Essential news & insight…
                                                                                                                                                                                                                                                                                                                       Bloomberg                                       Hedge Funds                                                                                    09.07.10
                                                                                                                                                                                                                   Mergers                                                                             09.10.10 reach highest level Since January

                                                                                                                                                    09.10 BRIEF
                                                                                                                                                                                                                                                                                                                                                                                                                                                    s 09.13.10

                                                                                                                                                                                                                                                                                                       Friday                                                                                                                                     inSiDe

                                                                                                                                                                                                                                                                                                                   By NATHANIel e. BAkeR                                                                                                                  performance tables                                   2
                                                                                                                                                                                                                                                                                                                    The hedge fund industry posted an outflow                    funds in the BarclayHedge database.                                      the Wire                                             3
                                                                                                                                                                                                                                                                                                                   of $2.9 billion, or 0.2% of its total assets, this              Commodity trading advisors fared better, at-                                                                                                            Monday
                                                                                                                                                                                                                                                                                                                   July, the most since January, according to es-                tracting $3.8 billion in July. It was the twelfth                        regulatory/Compliance                                4

                                                                                                                                                                        premiums Hit Highest Since 1st qtr 2009
                                                                                                                                                                   deal et
                                                                                                                                                                                                                                                                                        M&A Announcements
                                                                                                                                                                                                                                                                                                  timates by research firm Trimtabs.
                                                                                                                                                                                                                                                                                                                      July's number follows an outflow of $2.7 bil-
                                                                                                                                                                                                                                                                                                                                                                                 month of inflows in the past 14 months, a sign
                                                                                                                                                                                                                                                                                                                                                                                 of demand even as returns posted by the
                                                                                                                                                                                                                                                                                                                                                                                                                                                          Market Calls                                         5

                                                                                                                                                             ma of acquisitions

                                           F N
                                                                                                                                                                                                                                                                                                                                                                                                                                                          13F Forensics TARY                                   6


                                                                                                                                                   etail isthe priceamoUnt
                                                                                                                                                                                                                                                                                                                   acquirer June. The industry has dropped 4 per-
                                                                                                                                                                                                                                                                                                                    lion in                                                      CTAs are down 1 percent so far this year.                                             MEN
                                                                                                                                                            By Carol Chuang, data analyst                                                                                                target                                               value                                                                                                        S & COM
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            HP Deal
                                                                                                                                                                                                                                                                                                                                                                                   Trimtabs said that hedge funds appear to NEWover the hedge
                                                                                                                                         .s. r
                                                                                                                                                                                                                                                                                         Name                                                 ($m)
                                                                                                                                                                                                                                                                                                                   Name since April 2010, according to Trimtabs,
                                                                                                                                                                                                                                                                                                                    cent                                                                                                                                                                                       7
                                                                                                                                  ter U                                                                                                                                                                                                                                                                                                                                                                             pital rules
                                                                                                                                                                                                                                                                                         Enterprise GP             Enterprise Products       21,029.7
                                                                                                                                                              rising.                                                                                                                                               which attributed the decline mostly to nega-                 have missed out on market gains in the S&P
                                                                                                                                                                                     25                                  Premiums Trend Upward
                                                                                                                        to en                                                                                                                                                                                                                                                                                                                                                                               Basel Ca
                                                                                                                                                              the average 0,7
                                                                                                                                                                rs           ,62 premium                                                                                                 Associated Materials      Hellman & Friedman         1,300.0
                                                                                                                                                                                                                                                                                                                    tive returns in May and June. Flows have now                 500 Index during July because of conserva-
                                                                                                                                                                      $7,077                                                                                                                                                                                                                                                                                                                                                                                     after the
                                                                                                           way                                                                                                                                                                                                                                                                                                                                                            on
                                                                                                                                                       note global acquirers 3,542 over

                                                                                                                                                                                                                                                                                         Avoca Resources           Anatolia Minerals Develop    876.7

                                                                                                                                                                                                                                                                                                                                                                                                                                                                ares Gain
                                                                                                                                                                               ,69 pay                                                                                                                              been negative five of the last eight months                  tive positions. The S&P 500 surged 6.9 per-
                                                                                                                                                                                                                                                                                                                                                                                                                                                           Global Hedge Fund Returns                                                                 ed after s to comply
                                                                                                                                               retail                  $6,501 9,7 public                                                                                                                                                                                                                                                                                                                                                   es gain
                                                                                                                                                                                                                                                                                         Arizant Inc               3M Co                        810.0
                                                                                                                                          U.s.              the trading price for 77                                                                                                                                                                                                                                                                                                                                           Bank shar h as eight year e analysts
                                                                                                                                                                                                                                                                                                                                                                                                                                                         Bank Sh
                                                                                                                                                                                                                                                                                                                    (see chart, this page), the worst eight-month                cent during the month, while hedge funds
                                                                                                                                     2010                                        ,72                                                                                                                                                                                                                                                                       The Bloomberg BAIF Hedge Fund Index rep- TO WATCH:

                                                                                           ura P z
                                                                                                                                                                        $4,641                                                                                                                                                                                                                                                                                                                                                         as muc
                                                                                                                                                                                                                                                                                         Munters AB                Alfa Laval AB                796.7
                                                                                                                                ns            n Sta         companies has reached       00                                                                                                                          stretch since the September 2008 to April                    gained only 1.93 percent.                                                                                                                                                than som betting on
                                                                                                                          g pla       Morga America 26.99 percent581,388,0 third                       25.00%                                                                                                                                                                                                                                                                                       ■■WHAT mittee gave firms , more time
                                                                                       nom re Fret ngs, Inc. isU.sig retail tus Bank ofays s quarter, the $2,321,516,84365
                                                                                                                                                                                                                                                                                                                                                                                                                                                           resents all hedge funds tracked by Bloomberg
                                                                                                                    nalin market                                                                                                                                                                                                                                                                                                                                                                                                                           stors are g treasur-
                                                                                                                                                                                                                                                                                         Tres Palacios             Inergy LP                    735.0                                                                              erg
                                                                                                                                                                          $2, in the                                                                                                                                2009 period.                                                   A survey by Trimtabs shows hedge fund                                   Data. The graph compares BBHFUNDS tol com
                                                                                                                                                                                                                                                                                                                                                                                                                  bloomb                                                                            Base                   requirem 6). Bond inve
                                                                                                                                                                           highest since
                                                                                                                                                                                                       20.00%                                                                            Zymogenetics Inc          Bristol-Myers Squibb           725.2
                                                                                                                                                                                                                                                                                                                                                                                                    read on                m a n ratios r s
                                                                                                                                                                                                                                                                                                                                                                                                                                      age                                                   ook:                 r capital                                      n buyin
                                                                                                                  S.                        rcl                                         7,8                                                                                              Gladstone LNG
                                                                                                                                                                                                                                                                                                                   Hedge Fund Flows, 2009-2010
                                                                                                                                                                                                                                                                                                                   Total SA    599.0                                                    most                         er Capital
                                                                                                                                                                                                                                                                                                                                                                                                                                                           benchmarks.             D DayB            with stiffe (see story on page since fed bega
                                                                                         irD              ldi         the                       Ba                                    ,94
                                                                                                                                                              ch 31.56 percent in the first            15.00%
                                                                                                                                                                                                                                                                                                                                                                                                     means High            remain bear-                               first wor                                                      seen         at 2 p.m.
                                                                                         By De       ra Ho eting in                  spec is-          an Sa                   $1,313          70                                                                                                                                                                                        1. Basel                                                                           Brad skillm
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         an          predicted s at a rate not                                             today,
                                                                                                                                                                                                                                                                                         Overland Pass             Williams Partners              424.0
                                                                                              Nomu comp tes.                   a pro             Goldm n         quarter of 2009. 272,661,0                                                                                                                                                                                                                       th Forecaston equi-
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      lower yield arks on the                                    soon as
                                                                                                                          filed ge Comm ue
                                                                                                   gin      no                                          rga                     $1,              32                                                                                      Ecuador Bottling          Embotelladoras Arca            375.0                                                 es Grow                              er Low                                                                 rem                             billion as Automotive to
                                                                                             to be uctured ased firm exchan it to iss ere         JPMo e Bank Many of the big deals this ,344,6                                                                                                                                                                                           2. eu rais                                   how
                                                                                                                                                                                                                                                                                                                                                                                                                          ties. That may
                                                                                                                                                                                                                                                                                                                                                                                                                          to eisen                                                                      delivers                          for $1.5
                      mes                                                                                                                                                        $1,123 8,1                                                                                                                                                                                                                s may Fall reflect Case for yuan                                                   Obama                            ArcSight for Dollar Thrifty JPMorgan to
                                            s*                                                                          d                                        quarter carried high premi-50
                                                                                              for str tokyo-b rities an uld all year. th the             ch                                                                                                                                                                                                                                                                                   the                                    h 2009.                        may buy
                  volU ctUred notes vo
                                       lUme           million                                                                                      Deuts p                                 ,97                                                                                                                                                                                             3. u.S. yield                            ken                                                                                              offer                   o and
                                               $546.8                                            the Secu that wo tes this among d                                                 $1,122 6,1
                                                                                                                                                                 ums. Goldcorp Inc.'s $3.1 81           0.00%
                                                                                                                                                                                                                                                                                                                                                                                                                     may Wea r i o r a t -ted
                                                                                                                                                                                                                                                                                                                                                                                                                          dete                                        ies in marc                         ackard            z raises          Wells Farg
                                                        billion                                                                                     Citigr
                                                                                                                                                                                             ,32                                                                                        Most Read M&A Stories                                                                                             Demand                                                                             Hewlett-P er says. Hert              ems hires
                                                  $9.56                                              the        8         no       s
                                                                                                  with on Sept. uctured se firm regist
                                                                                                                                            ere                                 billion cash bid for$1,074
                                                                                                                                                                                                      Andean 28 2008 2008 2008 2008 2009 2009 2009 2009 2010 2010 2010
                                                                                                                                                                                                                                                                                                                                                                                            4. China’s                    ing exaggera
                                                                                                                                                                                                                                                                                                                                                                                                                         in u.S.economic                               ■■ COM
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             with the
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       matt           BAE Syst
                          strU                                               billion                                                                              HSBC                                         4,9            Q1    Q2 Q3    Q4   Q1   Q2   Q3   Q4   Q1   Q2   Q3
                                                                                                                                                                                                                                                                                                                                                                                                              Demise landscape and Cuts                                             familiar           ' latest bid.                                          -$95 billio
                     U.s.                                           $11.61                         sion ered str             pane d SeC-                                        Resources Ltd. $1,073,90                                                                                                                                                                                                                                       tax                                                                              ess.
                                 Week                                         billion                                  no Ja       ue                  erest
                                                                                                                                                                                                       had a
                                                                                                                                                                                                                   500                                                                  Trump Spurned in NYC Islamic Center Bid                                                              5. Consumer                          le-Class                              a person n, topping avis rm solutions busin                            , estimate                           ufac-
                            Last                                                                     regist rrently have iss                                        RBC         55.5 percent premium and68,                                                                                                                                                                                                        orts middreluctance and
                                                                                                                                                                                                                                                                                                                                                                                                                          the                                                                                                      p.m., aug.                           faster man
                      Sold           Date                            $10.65                                                                      ng int     of              Suiss
                                                                                                                                                                                  e                     $903,5                                                                                                                                                                                          ner Supp                           nd’ Dem                      $1.56 billio ns for its platfo                   ment, 2                               showed five-week low.
                              er-to-                                            billion               are cu nks tha
                                                                                                                        t                  growi 1 billion en                   Intel Corp. agreed to pay 95,379                                                                                                                                                                              6. Boeh                                ‘Sou                                                                           state                          nt data
                       Quart Quarter                                    $29.1                                                        the                             Credit                               $793,3
                                                                                                                                                                                                                                                                                        Vodafone Sells Stake in China Mobile                                                                                            s Signal
                                                                                                                                                                                                                                                                                                                                                                                                                          of hedge funds                                 explore
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          budget                       governme            plunged
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     to a         since
                                                                                                       16 ba this ye reflects total of
                                                                                                                                                $3       be                                                                                                                                                                                                                                                 Car Sale to take ons risk                                                        Treasury                    record after against default the strongest level
                                d                                             mes**                                                                have .             UBS       a premium of 52.32 percent for000 $6.59 billion acquisition of McAfee Inc.
                                                                                                                                                                                                                  91, its                                                               Flowers, Others Weigh More Irish Buys                                                                  7. China’s                    arao rate only
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   NOMY:                       rose to a
                                      er                              volU                               notes decision where
                                                                                                                                    a       notes      ht)                                                 $122,9 000
                                                                                                                                                                                   one reason for the higher premiums is there has been an increase in hostile and unsolic-                                                                                                                                 Show Subb     having                       raise              ■■ ECO                                                   ds
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   a's yuan ring bank bon ’s ringgit rose
                                Quart                            tes                billion                                         tured le at rig in New                                                                                                                                                                                                                                                                                pt SNB to


                          First                          ed no             $2.14                             the          t,                                           SEK itedns                                   57,
                                                                                                                                                                                                            $114,8 deals                                                                                                                                                                        8. Swaps                                                                             KETS: chin          of insu                ysia

                                                                                                                                                                                                                                                                                        Bank of America To Hire Nomura's Mee                                                                                              may Promrecov-
                                    -Date                                                                          marke d struc ee tab truell                                 rtfina deals. there were 14 such 0,000 this quarter, almost triple the amount in the same quarter                                                                                                                                                                                                                                                                                                  ings

                                                                                                                                                                                                                                                                                                                                                                                                                          recently                                                                                   high. Mala

                                                                                                                                                                                                                                                                                                                                                                                                                                                                          ■■ MAR

                                                  t-link                             billion                                                                                                                                                                                                                                                                                                                  Outlook                                                                        The cost                                 year low.                        idnet hold

                           Year-to interes                                                                                                                              Ekspo lastgo

                                                                            $14.22                          in the registere 10. (S Peter                                                                      $59,35                                                                                                                                                                            9. nflation                                               returnSturing growth. ed to a two-year day to a one-                                             ing: liqu                  -

                                                                                                                                                                                 Far year. hostile deals paid premiums of 38 percent on average this quarter; friendly deals paid                                                                                                                                         ered Cut yield
                                                                                                                                                                                                                                                                                                                                                                                                                              t to many of                                 by Strategy SnapShot fifth                                                                        es, elimi

                                                                                       billion                                                                                                                                                                                          NAB's A$13.3 Billion Axa Bid is Blocked

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            equity trad blocks of shar

                                     al                                                                                      20        n
                             glob                                             $22.26                         SeC- so far in esma ent.                     in off -       Wells27.99 percent.                                                                                                                                                                                                               e Bond Debu losses that
                                                                                                                                                                                                                                                                                                                                                                                                                          the                                                             climb
                                                                                                                                                                                                                                                                                                                                                                                                                                                                           Peru’s sol . CocoaytD returnfell for a                 down in

                                          Week                                            billion                            ok                                pro                                                                                                                                                                                                                                10. rubl                                                                                                                                           large
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    from a slows to buy and sell
                                                                                                                                                                                                                                                                                                                                                                                                                                                             Strategy                               %
                                     Last                                       $31.01                        sold     ra sp to comm first m notes tes,                    RBS there wasg also a $27 billion increase in basic material deals versus the prior quarter. the
                                                                                                                                                                                                                                                                                        Potash CEO Says BHP Likely Not Only Bid                                                                                           occurredtime) in                                 october
                               Sold           Date                                           billion             Nomu clined          is the m-ter                                                                                                                                                                                                                                                                                                           Mortgage-backed arbitrage                    t fallout
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          1.14                                     business.
                                       er-to-                                                                                                                 no                                                                                                                                                                                                                                                                   york
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             : the lates used by institution a slowdown in
                                Quart Quarter                                    $67.49                               de         ion       diu         -rate      tes            O        omber
                                                                                                                                                                            BMaverage premium on basic materialar. 11is 23 percent. It is 11.45 percent for industrial take-
                                                                                                                                                                                                                         ye deals                                                       Enterprise to Buy Enterprise GP for $8 Bln                                                                                orts (new
                                                                                                                                                                                                                                                                                                                                                                                                                          2008.                    SurVey
                                                                                                                                                                                                                                                                                                                                                                                                                                                             Convertible arbitrage DING                                        of
                                         d                                               filings.               york registrat r a me e fixed ed no es,                      source
                                                                                                                                                                                     : Blo
                                                                                                                                                                                overs.                             this ritten                                                                                                                                                                     data rep                  The industry 1.20%
                                                                                                                                                                                                                                                                                                                                                                                                                                                                1.10%        ■■ TRA           ng platfo
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  k because
                                 Secon                                            SEC            s                 the tes unde y includ structur securiti or                                              so far       rw        -                                                                                                                                                                                                                                           arbitrage tradi
                                                                                                                                                                                                                                                                                                                                                                                                                                                          - Asset-backedinc., the                    s this wee
                                                                                                                                                                                   the proportion of all-cashunde is also ac
                                               er                                                                                                                                                                                                                                                                                                                                                           eVeNt                                               -0.50%
                                         Quart                           rg from ks. Exclude ibles.
                                                                                                                                 ma          or                  es,                                 rope        deals llion, rising. sixty-eight percent of deals have all-cash pay-                                                                                                                time
                                                                                                                                                                                                                                                                                                                                                                                                                CPI (YoY) continues (MoM)       to                                        employee 0.77
                                   First                                                                          ing no which notes                  of                                        in eu ra has .5 mithe deals                                                                                                                                                                                                                                                   nated 45
                                                                     mbe                        vert
                                                                              ban                     estic
                                                                                                                                                ance ge rat spe-                                                                                                                                                                                                                                     3:00 SO                         t Prices                Capital structure arbitrage
                                            -Date             by Bloo rg by            ic con
                                                                                                                                                                                ments, a 7npercent increase from ese prior quarter. over the last five years, the average pre-                                                                                                                                              & Impor
                                                                                                                                                                                                                                                                                                                                                                                                                       cershow signs of 2.80%
                                                        piled       mbe        synthet and dom
                                                                                                                   gram        te        rform chan              A                      millio    Nomu       $427 th                                                                                                                                                                                       SZ Produ
                                                                                                                                                                                                                                                                                                                                                                                                                              Prices (YOY)                - Distressed
                                                                                                                                                                                                                                                                                                                                                                                                                                                                  $138M                               0.45                                               mnist
                                                                                                                                                                               $585 forU.S., totaling data.has been 24 percent compared with 18 percent for stock deals.
                                                     com    to Bloo
                                                                                     ons                                                                                                                                                                                                                                                                                                          3:15                                                                                                                                         G colu
                                                                                                                                pe          ex                        in-                                                                                                                                                                                                                                        
                                              to data mitted          rse     all nati es.                                                                                     mium        all-cash transactions
                                                                                                          floati d to the foreign such as ditional                                                                                                                                      Recent Completed Deals                                                                                                   Consumer                                                                                                         BloomBer
                                       ording data sub                                                                                                                                                                      C.                                                                                                                                                                     4:00 BP                               - Week
                                                          mption,issues from ed issu                                                                                              in the deals omberg                                                                                                                                                                            The funds with more than $5Balance (FOB)                                           income
                                                                                                                                                                                                                                                                                                                                                                                                                           billion in assets 6.80%Fixed8.40% arbitrage                                0.10               ower,
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  n Orge is
                                                                                                                                                                                                                   the Se                                                                                    Trimtabs expects August to be a quiet month
                                 * Acc
                                        ed on cipal rede rket         register                             linke odities, sket of uire ad                                 t             cy                                                                                                                                                                                                          10:00 BZ
                                                                                                                                                                                                                                                                                                                                                                                                                  Trade                   (YoY)                        6B                                     Blanchfl                                                          ility, alon
                                 ** Bas able-prin s Euroma s SEC
                                                                                                                                                                                 agen        to Blo d with                                                                                                                                                                       have recorded net inflows of rial Production this -$108.0B -$103.          All funds                               DaviD G.
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      His inflatio
                                                                                                             comm ex or bawould
                                                                                                                                            req                     s tha                                                                                                                                  as there are historically very few redemptions
                                                                                                                                                                                                                                                                                                                                    total                                                                                  $7.7 billion                                                                                                                              price stab et cuts.
                                             include s. Exclude                                                                                              bank mar- Dealng registere                                                                                                                                                                                                                      MX Indust                                      Global Macro Big Picture                                                                     focus on
                                     vari                                                                                                                                                                                                                                                                                                                                                                                                    ent
                                                                                                                                                                                  cordi By Deal
                                                                                                                                                                                                                                                                                         date            target    acquirer         value                                                                                                                             -8%                            -0.44
                                      Global an note                                                                                                   ong                                                                                                                                                 due to seasonality, it said in the report.                            year, while funds10:00 less than $200 million
                                                                                                                                                                                                                                                                                                                                                                                                      with                    Budget Statem                                                  ch:                                             taining a                   y budg
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   Out of tou
                                                                                                              an ind ering                 d.                      n                     not                                                                                                                                                                                                                       Monthly
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               e of heav          and out
                                                                                                                                   be filed 27th ameuropea e bank                                                                                                                       Sep 8     Healthcare BusAbbott               3,720                                                                                                    ce                        56
                                                      k                                                                off
                                                                                                                cific tion to
                                                                                                                                                                                    are                                                                                                                      "Redemptions should resume in Septem-                                                   14:00 US
                                                                                                                                                                                                                                                                                                                                                                                 have seen net losses of $18.3 billion, equiva-   Price Balan               Multi-strategy
                                                                                                                                                                                                                                                                                                                                                                                                                                                                        trichet is
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     -0.83                         t main         importanc out of place
                                                   wee                                       llion
                                                                                                   of                                  ke           in          th aling                                                                                                                                                                                                                                            RICS House                                                                                         Presiden         side the                                        trichet
                                                                                                                                               gold mining m&a t   reaches 10-year High
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        ies are            is fading.
                                                                                                                                                                                                                                                                                        Sep 9     Inspectorate
                                                                                                                 for ma ra is ran notes omberg.ues tot                                                                                                                                                     ber;Bureau Veritas one 668 the worst months for                                            19:01 UK
                                                                                                                                                                                                                                                                                                                                                                                 lent to 15.7 percent of assets. mer Confidence                             Merger arbitrage                         -1.34
                                                                                                                                                                                                                                                                                                                 historically           of
                                                                                      2.3 mi es-                                                                                                                                                                                                                                                                                                                                                                                                                        y makers
                                                                                  $2                                                  ed                                                                                                                                                Sep 7 Bioniche Pharma Mylan Inc
                                                                                                                                                                                                                                                                                                           hedge fund flows," 550 report said. For the                                                 19:01 UK
                                                                                                                                                                                                                                                                                                                                                                                                                     Consu                   ence                          -                       Central        polic                   these policglobal recovery
                                                                           sold t pay inv ex                        Nomustructur               Blo n iss                                                                                                                                                                               the                                                                                                                  Market-neutral           European Trichet says
                                                                                                                                                                                                                                              gust,                                                                                                                                                                               ess Confid                   -                                                               ility,              na
                                                                                                                                                       nt in
                                                                    ASA                                                               ng to seve                                                                                        in Au ng to                                     Sep 8 Aabar Invest year, flows Invest
                                                                                                                                                                                                                                                                                                                Abu Dhabi toward hedge funds stand at $1
                                                                                                                                                                                                                                                                                                                                       526                                                              21:30 AU
                                                                                                                                                                                                                                                                                                                                                                                                                     NAB Busin             China LEI        Equity statistical arbitrage    ude      -2.39       things: hum one time whe have lost the plot. , spanish
                                                              ans notes tha 500 Ind filing.                        issue accordi least
                                                                                                                                                                               By PratIk M. Patel, data analyst
                                                                                                                                                                                                                                                                                                                                                                                                                             rence Board                                         Jean-Cla capable of three                 ing                  s to                the irish been happy
                                                  spor month               Poor
                                           ■■ Ek -month dard & Sept. 9 times an
                                                                                         SeC          y             kets, rwrote
                                                                                                                                             s 10
                                                                                                                                                                                 gold mining company takeovers accordi Enterprise Products Partners' $21 billion
                                                                                                                                                                                                                        s in the
                                                                                                                                                                                                                annual this year, ombe
                                                                                                                                                                               reached their highestl investor volumes in 10 rg.all-stock offer for Enterprise GP Holdings
                                                                                                                                                                                                                                                                                        Sep 9                   Williams Partners      424
                                                                                                                                                                                                                                                                                              Overland Passbillion, following redemptions of $172 billion in
                                                                                                                                                                                                                                                                                                                                                                                 Spotlight               22:00 CH
                                                                                                                                                                                                                                                                                                                                                                                                                                                            CTA/managed futures
                                                                                                                                                                                                                                                                                                                                                                                                                                                            ar                          to be
                                                                                                                                                                                                                                                                                                                                                                                                                                              calend Long/Short equitiesneedness and swift
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        action. he's
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      miss               seem
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           the gove
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       rnors of can't have
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   s                ar how any-
                                                                            a                                        unde                                                                                                                      ceed -                                                      2009 and $150 billion in 2008.                                                                                         vents                                                              -4.09                   month, Greek central bankremains uncle especially
                                           three the Stan rding to tors five l take a                                                                                          years. there individua e$37.6 iled by worth of ex was the largest. so far this year there have
                                                                                                                                                                                                 have been so far billion Blo nue,                                                                                                                                                                                         ic-e                                                   alert
                                                                                                                                                                                                                                                                                                                                                                                                                                                            Fixed income arbitrage : flexibility. -4.19 wyoming
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     , last                                     it                   ,
                                                                                                                                    lume                                                                                                        Struc                                                        "We believe it is safe to assume this “lost”                                                econom
                                                                                                                                                                                                                                                                                                                                                                                 Liam Dalton, Ceo and founder of Axiom                                                                                                       he and with the speech. d their problems                               -
                                            tors es, acco pay inves estors wilgain in the                                                                                                    to             lum                     nti
                                                                                                                                                                               transactions nthly vo re comp pace co rding to been 35 takeovers in the pipeline industry for
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  more             hole,           of touch                                                            experienc
                                                                                                                                                                                      notes so far this year, with the average                                                                                                                                                                                                               meeting BIS Short-biased equity at Jackson -5.24
                                                                                                                                  vo                                                                                                                                                                       $320 billion will not come back to the indus-                                                             time
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         how out the ecB's un- thing in it addressewho are already borrowing,
                                              declin tes wil index. inv l to any d matur &
                                                                                                        ity.                                                           x      tured st mo the deals reaching 39.96%.
                                                                                                                                                                                                          t we      rrent                                                               Anticipated Approvals soon," the report said. Trimtabs'                                  Capital Manage- Date 2:00 EC Bimonthly                                          s Meeting
                                                                                                                                                             ke FAU struc premium on ion tha                                  , acco            a totalof
                                                                                                                                                                                                                                                  lion volume of $40.78 billion.                                                                                                                                                                of Investment                                   e clear          of                                        irish,                   of
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                                                                                                                                                                                                                                                                                                           try any time                                                                                                                                                                                                             are
                                               the e in the portiona date an ll Lynch                                                                  D ze        n of            large iss                 the cu notes            billion bil                                                                                                                                                             Back Page
                                                                                                                                                                                                                                                                                                                                                                                                            9/13                     nd Board              ters Meet
                                                                                                                                                                                                                                                                                                                                                                                                                                                          Bloomberg Hedge Fund Indices                                  Council is those of the and a rising costmeasures the
                                                                                ue                                                                 z AN                                              ould of the
                                                                                                                                                             billio ly, and theandean resourcesnreceived a $3.2 luding $1
                                                                                                                                                                                        mm                                                                                                                 findings are based on a survey of 954 hedge                           ment                                  5:00 Thaila al Affairs MinisMost recent returns presumably                              erning                                 tion                 erity
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  ember Gov pe's econ
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                                                                                                                                            Fret $4.98                         ge Co year              billio
                                                                                                                                                                                                                                                                                                                                                                                                             9/13                  Gener                         asts                                                                       ing defla            sing aust
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                                                                                                                                                                                                                                                                                         date            target               acquirer          type
                                                 loss betwee
                                                                     n        ced                                                   irDre sold             from                    for the      $38                       gu                                                                                                                                                                                  9/13                    ean Comm                                       wieldy 22-m ers that euro central bankers even after impo                                                     page
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                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           on next
                                                                       re pla nt fee.                                        By De s have          rease es and 7 billion a record                                 in Au                                                                Sep 14    Allegheny             FirstEnergy          Acq, Targ                                                                   5:15 Europ                         President                         dang                of                  for                                        continued
                                                  index tes we rce                                                                                                                                           notes                                                                                                                                                                                                                              Ukraine’s                            to the              posium           the need
                                                                                                                               Bank rcent inc curiti                 $4          d                                     in 20         in
                                                                                                                                                                                                                                                             .                                                                                                                                                 9/13                   Barroso,                                                at a sym emphasized
                                                                   0.5 pe 7                              $20.2                       pe            Se         than         issuethere were 297 of d deal worthn$34.35 Goldcorp Inc. and Eldorado Gold Corp
                                                                                                                                                                                                     n transactions billio
                                                                                                                                                                                                                                                erest gust.
                                                                                                                                                                                                                                                                                        Sep 15    Red Back Mining Kinross Gold                    Acq                                                                     8:45 EU’s          Core Inflati
                                                                                                                                                                                                                                                                                                                                                                                                                                                         on Rates                     facing.            et
                                                           for a 264917                            ued                        a 10 with the al more banks                      billiongannouncedistere week,.07 33.4 percent intexecutives discuss
                                                                                                                                                                                         $1.8 reg this g $1 a                                                                           Sep 17    Continental           UAL Corp             Acq, Targ
                                                                                                                                                                                                                                                                                                                                                                                                                                 Mauritius                   rence                             27, trich
                                                      Co.                                  rp. iss ting                        filings may tot es wh m.
                                                                                                                                                              en                                                                         d to         Au       r                                                                                                                                                 9/13 TBA                     Energy Confe                             on aug.
                                                                 28                                                                                                            decreaseSeC- count and a 4.8 percent de- nth of year. Fo
                                                                                                                                                                                sellin      in deal r, sellin                     linke                                                                                                                                                                                       Botswana
                                                       CUSiP                     ica Co -to-floa 3 SeC
                                                                         Amer fixed Sept. tial
                                                                                                                                   Sales volum . issuers,crease st dollarue   ge in iss volume over thenotes week. mo the
                                                                                                                                                                             the lar-largest                         new prior in the s of merger.
                                                                                                                                                                                                                                                       Back Page
                                                                                                                                                                                                                                                their $3.2 billion                      Sep 16    Dollar Thrifty        Hertz Global             Targ
                                                                                                                                                                                                                                                                                                                                                                                                                 9/13 TBA
                                                                                                                                                                                                                                                                                                                                                                                                                                           on World
                                                                                                                                                                                                                                                                                                                                                                                                                                                    Africa 2010
                                                                                                                                                                                                                                                                                                                                                                                                                                                                s                                                                                          of Pimco
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                                                                                                                                                                                                                                                                                                                                                                                                                  9/13 TBA              to Purchase
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03.24.11                                                                                                                         mERgERs | Bloomberg Brief                                       7

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anticipated approvals                                                                                Calls and meetings
DaTe           TargeT                acquirer           Value                 Type                   DaTe Time             compaNy              eVeNT                   DeScripTioN
                                 Community Bank                                                                                               Barclays
3/25      Wilber Corp.                                        102 Target shareholders
                                 System Inc.                                                                                                  Capital High
                                                                                                                                              Yield Bond      Agreed on Feb. 28 to sell Texas
3/25      Aronkasei Co Ltd.      Toagosei Co Ltd.               94 Target shareholders                                 range resources
                                                                                                     3/25     8 a.m.                          & Syndi-        shale assets to riverstone Holdings
                                                                                                                                              cated Loan      LLC for $900 million cash.
          Global Defense Tech-                                                                                                                Conference,
                                 Ares Management
3/28      nology & Systems                                    301 Expected HSr expiration                                                     Orlando
                                                                                                                                              Barclays        Agreed on Jan. 28 to sell hog
          Cedyna Financial       Sumitomo Mitsui                                                     3/25     8 a.m. Smithfield Foods Inc.    conference      production operations to Prestage
3/30                                                          570 Target shareholders
          Corp.                  Financial Group Inc.                                                                                         (see above)     Farms Inc. Terms not disclosed.
          Pride International
3/30                             Ensco PLC                 8,466 Expected HSr expiration
          Inc.                                                                                                                                Barclays        Agreed on Feb. 24 to sell New
                                                                                                              9:20     Sandridge Energy
                                 Newmont Mining                                                      3/25                                     conference      Mexico properties for about $200
3/30      Fronteer Gold Inc.                               2,020 Target shareholders                          a.m.     Inc.
                                 Corp.                                                                                                        (see above)     million to pay down debt.
          Hughes Communica-
3/30                             EchoStar Corp.            1,824 Expected HSr expiration                                                                      Agreed on Dec. 20 to buy mining as-
          tions Inc.                                                                                                   China Shenhua          Annual
3/31      Sued-Chemie AG         Clariant AG               2,352 Acquirer shareholders               3/25                                                     sets and companies from its parent
                                                                                                                       Energy Co Ltd.         earnings
                                                                                                                                                              and some units for $1.3 billion.
          Valley High Ventures
3/31                             Levon resources Ltd.         113 Target shareholders
                                                                                                                                                              Agreed on Dec. 10 to acquire Oc-
                                                                     Target, acquirer share-
4/4       Lundin Mining Corp.    Inmet Mining Corp.        4,153                                                       China Petroleum                        cidental Argentina Exploration &
                                                                     holders                                                                  Annual
                                                                                                     3/28              & Chemical Corp.                       Production for $2.45 billion and on
4/9       rC2 Corp.              Tomy Co.                     587 Go-shop period ends                                                         earnings
                                                                                                                       (Sinopec)                              Oct. 1 to invest $7.1 billion in repsol
          System C Healthcare                                                                                                                                 YPF Brasil.
4/11                             McKesson Corp.          65          High Court

                                                                                                                                                                              coNTacT /
  DaTe                                 eVeNT                                                         feaTuriNg                                    locaTioN                  regiSTraTioN
March                                                                       "The Premier Chinese Private Equity & Venture                    ritz Carlton, Financial
               Superreturn China
28-30                                                                        Capital Conference"                                             Street, Beijing             returnchina
               Securing Growth in 2011: Turkey - Discussing M&A Deal        Energy sector has led deal flow, but other niches                Sheraton Istanbul
March 29                                                                                                                                                       
               Drivers                                                      could be a boon.                                                 Maslak Hotel, Turkey
March          Alexander Watson Associates' Mergers & Acquisitions          resin and Fiber Based Packaging, Coating, and                    Hyatt rosemont,
29-30          Executive Forum 2011                                         Converting Conference.                                           Chicago
March                                                                       "The partnering conference for decision makers on biopharma
               BioWindhover/Pharmaceutical Strategic Outlook                                                                                 Grand Hyatt, New York
30-April 1                                                                  deal structure and strategy."
               M&A Insight 2011: Bridging the Gap & Strategic Alterna-                                                                       Haynes and Boone LLP,
March 31                                                                    M&A panel will explore current trends, future outlook                              
               tives                                                                                                                         Houston
                                                                            Master class chaired by Morty White,
March 31       Private Equity Investing In Canadian Companies                                                                                New York          
                                                                            Wynnchurch Capital Ltd.
                                                                                                                                             Charles Hotel, Cam-
April 1        8th MIT Private Equity Symposium                             "Life After Leverage"                                                              
                                                                            "Overcoming Challenges to Secure Successful Coverage
               2nd Annual Medical Device Mergers and Acquisitions                                                                                              
April 4-5                                                                   and reimbursement for Medical Device Products in the             Brussels, Belgium
               Conference                                                                                                                                                eventcalendar.php
                                                                            European Market"
                                                                                                                                             Thunderbird Campus, 1
               The Thunderbird 7th Annual Global Private Investing          "Industry leaders shed light on global private equity’s most
April 7-8                                                                                                                                    Global Place, Glendale,
               Conference                                                   relevant issues."
                                                                                                                                             Westin Kierland resort
April 13-14    2011 Southwest M&A Conference                                Deal of the Year Award                                           & Spa, Scottsdale,
                                                                            "Brings together over 100 middle-market practitioners to         Hermitage Hotel,
April 27-28    Southern Private Equity Conference                                                                                                              
                                                                            facilitate deal flow."                                           Nashville
                                                                                                                                             Thistle Marble Arch,
May 10-12      AM&AA and Primerus Third Global M&A Symposium                The New Economics for the Private Middle Market                                    

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