Market Overview

Benzinga's M&A Chatter for Monday August 18, 2014

The following are the M&A deals, rumors and chatter circulating on Wall Street for Monday August 18, 2014:

Dollar General Offers $78.50/Share for Family Dollar

The Deal:
Dollar General (NYSE: DG) announced Monday it has offered to acquire Family Dollar Stores (NYSE: FDO) for $78.50 per share in cash, for transaction value of $9.7 billion. Dollar Tree (NASDAQ: DLTR) offered $74.50 per share in cash and stock for Family Dollar on July 28, 2014.

Family Dollar confirmed receipt of the non-binding, unsolicited proposal from Dollar General. The company will consult with its legal and financial advisors, and will carefully review and consider the proposal.

Family closed at $79.81 Monday, a gain of 5%. Dollar General share rose 11.5%, to close at $64.14. Dollar Tree shares fell 2.5% to close at $54.26.

Skilled Healthcare to Merge With Genesis HealthCare in 100% Stock Transaction

The Deal:Skilled Healthcare Group (NYSE: SKH) announced Monday it has agreed to combine with Genesis HealthCare in an all-stock trasaction. Under the terms of the agreement, Skilled Healthcare shareholders will own 25.75% of the vote and value of the fully-diluted equity of the combined company. Genesis HealthCare shareholders will own 74.25%.

The deal is expected to close in early 2015.

Skilled Healthcare Group closed Monday at $6.15, a gain of more than 2%.

Rackspace Shares Rise on Activist Stake

The Activist Stake:
Blue Harbour Group reported Monday that It owns about 9.1 million shares (6.4%) of Rackspace Hosting (NYSE: RAX). Blue Harbour said Rackspace has "excellent long-term prospects that we believe are not reflected In the current share price."

Rackspace has been the subject of frequent takeover chatter.

Rackspace closed Monday at $31.82, and traded 3% higher after-hours.

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

 

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