Market Overview

Benzinga's M&A Chatter for Tuesday July 30, 2013

The following are the M&A deals, rumors and chatter circulating on Wall Street for Tuesday July 30, 2013:

Community Health Systems to Acquire Health Management Associates for $13.78/Share in Cash, Stock Deal

The Deal:
Community Health Systems (NYSE: CYH)and Health Management Associates (NYSE: HMA) announced Tuesday that they have agreed that CHS will acquire HMA for approximately $7.6 billion, consisting of $10.50 per share in cash plus 0.06942 of a share of CHS common stock for each HMA share. In addition to the cash and stock consideration, HMA shareholders would also receive one Contingent Value Right for each HMA share they own, which could yield additional cash consideration of up to $1.00 per share.

The deal is expected to close by the end of the Q1 2014, subject to shareholder approval.

Health Management Associates closed at $13.30 Tuesday, a loss of 11% on 9 times average volume.

Alexion Reportedly Hires Goldman Sachs to Handle Potential Roche Bid

The Rumor:
Shares of Alexion Pharmaceuticals (NASDAQ: ALXN) surged higher Tuesday on a report from Bloomberg that the company had hired Goldman Sachs to handle a potential bid from Roche (OTC: RHHBY).

Spokespersons for Alexion, Roche and Goldman Sachs declined comment.

Alexion Pharmaceuticals closed at $117.08 Tuesday, a gain of 6% on 3 times average volume.

Hearing Deal Reporter Says Novartis Bidding for Onyx

The Rumor:
Shares of Onyx Pharmaceuticals (NASDAQ: ONXX) spiked higher in late trading on Tuesday on a report from Deal Reporter that Novartis (NYSE: NVS) has bid for Onyx. While there has been much chatter of multiple bidders, only AMGN (NASDAQ: AMGN) has submitted a bid of $120, which was rejected by the Onyx board.

Spokespersons for Onyx and Novartis were not available for comment.

Onyx Pharmaceuticals closed at $131.69 Tuesday, a gain of 1% on average volume.

Cubist Acquires Trius, Optimer

The Deals:
Cubist Pharmaceuticals (NASDAQ: CBST) announced Tuesday it was making separate acquisitions of Optimer Pharmaceuticals (NASDAQ: OPTR) and Trius Therapeutics (NASDAQ: TSRX).

Cubist and Optimer announced that they have agreed that Cubist will acquire all of the outstanding shares of Optimer common stock for $10.75 per share in cash, for a total value of approximately $535 million on a fully diluted basis. In addition, Optimer shareholders will receive a Contingent Value Right, entitling the holder to receive an additional one-time cash payment of up to $5.00 for each share they own if certain net sales of DIFICID are achieved, or a total transaction value of up to $801 million on a fully diluted basis. The CVR's will be pubically traded.

Cubist and Trius Therapeutics announced that they have agreed that Cubist will acquire all outstanding shares of Trius for $13.50 per share in cash or approximately $707 million on a fully diluted basis. In addition, Trius shareholders will receive one Contingent Value Right, entitling the holder to receive an additional cash payment of up to $2.00 for each share they own if certain commercial sales milestones are achieved. The total transaction is valued at up to $818 million on a fully diluted basis.

Optimer Pharmaceuticals closed at $13.29 Tuesday and traded around $12 after-hours. Trius Therapeutics closed at $11.71 Tuesday and traded near $14 after-hours.

Posted-In: News Rumors M&A Movers

 

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