Market Overview

'Merger Monday' Delivers; What Companies Are Exploring Possible Deals?

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The following report pulls the highlights of M&A deals and rumors that have been announced or reported on on Monday June 2, 2014.

Ventas Will Acquire American Realty Capital Healthcare Trust

  • The boards of both Ventas (NYSE: VTR) and ARC Healthcare Trust (NASDAQ: HCT) announced Monday that Ventas will acquire all outstanding shares of ARC Healthcare in a stock and cash deal valued at $2.6 billion or $11.33 per ARC Healthcare share.
  • The deal, expected to close in the fourth quarter of 2014, represents a 14 percent premium on ARC Healthcare shares based on the May 30 closing price.
  • The cash portion of the deal is limited to 10 percent of ARC Healthcare's outstanding common stock, meaning approximately 26.9 million shares of Ventas will be issued to current ARC healthcare shareholders.

Marathon Oil To Sell Marathon Oil Norge

  • Marathon Oil (NYSE: MRO) announced Monday that is has reached a definitive agreement with Det norske oljeselskap ASA to sell its subsidiary Marathon Oil Norge AS for $2.7 billion.
  • The effective date of the transaction will be January 1, 2014, and is expected to close in the fourth quarter of this year.
  • Marathon Oil intends to use the proceeds from the transaction to spur organic growth and to fund a portion of the company's $1.5 billion authorized share repurchase.

Endurance Specialty Increased Its Offer For Aspen Insurance

  • Endurance Specialty (NYSE: ENH) announced a $2 increase in its offer to acquire Aspen Insurance from $47.50 to $49.50.
  • The offer is based off of the closing price of Aspen's shares on April 11, 2014, the day before Endurance made its initial offer.
  • On Monday, Endurance intends to file a preliminary solicitation with the SEC for Aspen's shareholders to support two actions: 1) a special general meeting of Aspen's shareholders and 2) a court-ordered meeting to vote on scheme of arrangement.

Dai-ichi Life Seeks To Buy Protective Life

  • Reuters reported that Dai-ichi is in advanced talks with Protective Life (NYSE: PL) to purchase the company for over $5 billion.
  • Shares of Protective Life reacted by soaring up over 14 percent early in Monday's session.

Broadcom Explores Strategic Alternatives

  • Broadcom (NASDAQ: BRCM) announced early Monday morning that it is seeking strategic alternatives for its cellular baseband business including potential sell-off or wind-down.
  • The successful wind-down or sell-off could mean annual savings of $700 million in R&D and SG&A expenses of which ~$100 million relates to stock-based compensation.
  • Shares of Broadcom soared up near 10 percent in reaction to the announcement.

NPS Pharmaceuticals' Shares Soar

  • In reaction to the potential buyout offer from Shire (NASDAQ: SHPG), estimated to be in the range of $5 billion, shares of NPS Pharmaceuticals (NASDAQ: NPSP) at one point rocketed up over 12 percent in Monday's session.
  • NPS has a single product- Gattex -approved for sale in the U.S.
  • Sales revenue for Gattex is estimated to be $100 million to $110 million in 2014.

Posted-In: News Rumors M&A

 

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