MANDA Portfolio Updates

A couple of quick updates on the status of my M&A portfolio:

1. AT&T finally completed its acquistion of Centennial Communications (CYCL) at the offered price of $8.50. Regulatory roadblocks pushed back the expected Q2 close but those hurdles were eventually resolved through divestiture of some Southern state assets. The trade represents a 9% return on the portfolio’s investment.

2. On October 29, a shareholder lawsuit forced the board of Rubio’s restaurants (RUBO) to reject an $8 per share offer from private equity. I knew the perils of this when I purchased the stock (see 10/15 blog).  I was fooled and exited the position on October 30 at $7.48 for a 1% loss. The good news is that it’s a small loss and only the second loss (out of 18) in the portfolio.

3. Starent Networks (STAR) stock is rising today (currently $33.95) but if it backs off of current levels, I’ll be looking to add it to the portfolio. Cisco (CSCO) is offering $35 per share for the company.

4. I picked up some Harvest Energy (HTE) today at $9.31/share. The Canadian oil trust announced on 10/22/09 that the Korean National Oil Corporation offered $10 per HTE share. The deal has the blessing of the board and seeks shareholder approval at a special meeting to be held on Dec. 15. Pending approval, the deal is expected to close Dec. 22. (I wish I had bought it at Friday’s low of $9.13!)

The revised MANDA holding are shown in the table below.

MANDA 11-09-09

Click to enlarge

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