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Old 09-09-2005, 11:42 AM
MrMon MrMon is offline
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Join Date: Nov 2004
Location: St. Louis, MO
Posts: 135
Default Re: Good Deal or Bad Deal?

I get a list of mergers every morning and occasionally things like this pop up. They're not sexy, but if you invest in a string of them, they seem quite profitable and relatively low risk, especially if it's a cash offer.

Other tempting opportunities, you decide the risks:

Medicis Pharmaceuticals Inc. (MRX), Inamed Corp. (IMDC)

Current discount: $5.10 or 6.49%
Acquirer: MRX
Target: IMDC
Offer Per Share: 1.4205 shares and $30 per share
Value of offer per share: $78.57
Value of outstanding common equity securities: $2,851,978,289
Acquirer share price: $34.19
Target share price: $73.47
Expected closing: End of 2005 12/31/2005
Annualized gain: 22.41%

Whirlpool Corp. (WHR), Maytag Corp. (MYG)

Current discount: $2.20 or 10.48%
Acquirer: WHR
Target: MYG
Offer per share: $21 cash and stock
Value of outstanding common equity: $1,677,900,000
Acquirer share price: $78.42
Target share price: $18.80
Expected closing: First quarter 2006 2/15/2006
Annualized gain: N/A
Note: Maytag shareholders will receive, for each share held, $10.50 in cash
and between 0.1144 and 0.1398 of a share of Whirlpool stock. Maytag
shareholders will receive 0.1144 of a share of Whirlpool stock if the
average Whirlpool stock price is $91.79 or greater and 0.1398 if it is
$75.10 or less. Between the two prices, the exchange ratio will vary
proportionately.
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