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Monday, November 06, 2006

Merger Monday Review (November 6, 2006)

So today is the epitome of what MERGER MONDAY would mean. The number of deals this morning is almost unheard of. Two of these companies, Four Seasons (FS) and OSI (OSI) were on buyout lists as BAIT SHOP MEMBERS, and some of the other mergers were either on a watch list or had been on the list before. Of course some of these had also never been looked at for any sort of BAIT SHOP lists as a buyout target.

Four Seasons (FS): FS gets $82.00 cash buyout offer from CEO Isadore Sharp, Kingdom Hotels (Saudi Price Bin Talal), Cascade (Bill Gates). FS closed at $63.87 Friday; 52-week trading range $46.85 to $67.80. FS is the high-end hotel chain. BAIT SHOP MEMBER.

Kos Pharmaceuticals (KOSP): KOSP is being acquired by Abbott Labs (ABT) for $78 per share; $50.09 Friday Close and $36.07 to $73.56 52-week trading range. KOSP is mainly targeted for its lipid treatments, as well as LDL & HDL cholesterol management. WAS NOT ON BAIT SHOP WATCH OR BUY LIST.

OSI Restaurant Partners (OSI): OSI AGREED to a $3.2 Billion deal, which is $40.00 buyout. The stock closed at $32.43 Friday; 52-week trading range: $27.30 to $48.28. It owns outback steakhouse, Flemings Steakhouse, Carrabba's, and others. Cash buyout is already approved and came from a private equity group including Bain Capital Partners LLC and Catterton Partners and Co. founders Chris T. Sullivan, Robert D. Basham and J. Timothy Gannon. BAIT SHOP MEMBER.

PortalPlayer (PLAY): PLAY is being acquired by NVIDIA (NVDA) for $13.50 in CASH. PLAY has a trading range $8.76 to $33.19 over last 52-weeks. Stock trading up at $15.95, wellabove offer price. PLAY designs chips for PDA's, media players, and handhelds. BAIT SHOP WATCH LIST, WAS NOT ON CURRENT BUYOUT TARGET LIST THOUGH.

Per-Se Technologies (PSTI): PSTI is being acquired by McKesson (MCK) for $28 cash, up from $24.45 close on Friday; 52-week trading range $19.50 to $29.48. Company offers connective healthcare solutions to doctors, hospitals, and pharmacies. WAS NOT ON BAIT SHOP WATCH OR BUY LIST.

Swift Transport (SWFT): SWFT gets a $29.00 buyout offer from former CEO and largest shareholder, Jerry Moyes. 52-week trading range is $18.80 to $33.66. Stock closed at $24.05 Friday. SWFT is a trucking freight company. BAIT SHOP WATCH LIST, WAS NOT ON CURRENT BUYOUT TARGET LIST THOUGH.

Traffic.com (TRFC): TRFC is trading up 21% at $7.55 after it is being acquired by NAVTEQ (NVT); Friday close $6.15; 52-week trading range $3.38 to $13.30. WAS NOT ON BAIT SHOP WATCH OR BUY LIST.

Also:

First Federal Bancshares (FFBI): FFBI gets $23 buyout from Heartland Bancorp, stock closed at $22.75 Friday; 52-week range $17.05 to $24.00. WAS NOT ON BAIT SHOP WATCH OR BUY LIST.

Biomet (BMET): BMET trading up 0.5% after Smith & Nephew (SNN) in UK switched advisors; SNN hired Deutsche Bank to help with review of acquiring BMET, BMET hired Morgan Stanley previously. BAIT SHOP MEMBER.

Vivendi had reportedly held talks with KKR, the private equity and LBO giant, but talks broke down because of regulatory concerns and general disagreements. WAS NOT ON BAIT SHOP WATCH OR BUY LIST.

Jon C. Ogg
November 6, 2006
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