Market Overview

Benzinga's M&A Chatter for Thursday April 4, 2013

The following are the M&A deals, rumors and chatter circulating on Wall Street for Thursday April 4, 2013:

Report Anheuser-Busch InBev Near Settlement with US DOJ

The Rumor:
Anheuser-Busch InBev (NYSE: BUD) and the US DOJ are reportedly close to a settlement, according to Bloomberg. This would pave the way for the way for a merger of Anheuser-Busch InBev and Modelo, which would include Modelo selling its US unit to Constellation Brands (NYSE: STZ).

Shares of Contellation Brands surged higher on the report, eventually closing down for the day at $48.24 Thursday, a loss of $0.11 on lower than average volume. Anheuser-Busch InBev closed at $99.55, a gain of $0.47 on lower than average volume.

Midstates Petroleum to Acquire Properties in Oklahoma and Texas for $620M

The Deal:
Midstates Petroleum (NYSE: MPO) announced Thursday that it has entered into a Purchase and Sale Agreement with Panther Energy, LLC, and its partners Red Willow Mid-Continent, LLC and LINN Energy Holdings, LLC (NASDAQ: LINE) (together, “Panther”), to acquire producing properties as well as developed and undeveloped acreage in the Anadarko Basin in Texas and Oklahoma for $620 million in cash. Both Panther Energy, LLC and Red Willow Mid-Continent, LLC are subsidiaries of the Southern Ute Indian Tribe Growth Fund. Primary horizontal drilling targets include the Cleveland, Marmaton, Cottage Grove, and Tonkawa formations. The transaction will be effective April 1, 2013 and closing is expected on or about May 31, 2013.

Midstates Petroleum closed at $6.67 Thursday, a loss of 9.5% on 3 times average volume.

Provident New York Bancorp and Sterling Bancorp to Merge in $344M Deal

The Deal:
Provident New York Bancorp (NYSE: PBNY) and Sterling Bancorp (NYSE: STL) announced Thursday they have entered into a definitive merger agreement in a stock-for-stock transaction valued at $344 million, based on the closing price of Provident New York Bancorp common stock on April 3, 2013. Under the merger agreement, Sterling Bancorp shareholders will receive a fixed ratio of 1.2625 shares of Provident New York Bancorp common stock for each share of Sterling Bancorp common stock. Upon closing, Provident New York Bancorp shareholders will own approximately 53% of stock in the combined company; Sterling Bancorp shareholders will own approximately 47%. Upon closing, Provident Bank will convert to a national bank charter and adopt the Sterling name, as will the holding company.

Provident New York Bancorp closed at $9.08 Thursday, a gain of 3% on 13 times average volume. Sterling Bancorp closed at $11.32 Thursday, a gain of 13% on 24 times average volume.

Dan Loeb/Third Point Rumored to Acquire Significant Stake in Gilead Sciences

The Rumor:
Investor Dan Loeb of Third Point was rumored Thursday, to be taking a significant stake in Gilead Sciences (NASDAQ: GILD), according to unconfirmed market chatter.

Spokespersons for Gilead and Third Point were not available for comment.

Gilead Sciences closed at $47.74 Thursday, a gain of $0.11 on average volume.

Posted-In: News Rumors M&A After-Hours Center Movers

 

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