Market Overview

Benzinga's M&A Chatter for Wednesday January 11, 2012

The following are the M&A deals, rumors and chatter circulating on Wall Street for Wednesday January 11, 2012:

Raymond James to Acquire Morgan Keegan from Regions Financial

The Deal:
Regions Financial (NYSE: RF) announced Wednesday that it has entered into a stock purchase agreement to sell Morgan Keegan & Company and related affiliates to Raymond James Financial (NYSE: RJF), for $930 million. As part of the transaction, Morgan Keegan will also pay Regions a dividend of $250 million before closing, pending regulatory approval, resulting in total proceeds of $1.18 billion to Regions. The transaction is anticipated to close during the first quarter, subject to regulatory approvals and customary closing conditions. Morgan Asset Management and Regions Morgan Keegan Trust are not included in the sale and will remain part of Regions' Wealth Management organization.

Regions Financial shares traded in a range of $4.60 to $4.84 Wednesday, on 78% of the average daily volume. Regions Financial closed at $4.80, a gain of 2.13% for the day.

Universal American to Acquire APS Healthcare

The Deal:
Universal American (NYSE: UAM) announced Wednesday that it has entered into a definitive agreement to acquire APS Healthcare for $227.5 million.

The purchase price for the transaction is $227.5 million, consisting of $147.5 million in cash to retire APS Healthcare's outstanding indebtedness and other liabilities, and $80 million in Universal American common stock, plus up to $50 million in potential performance based consideration, payable in cash in March 2014 to the extent APS Healthcare's financial results exceed certain thresholds. Universal American expects the transaction to be accretive to earnings in 2012. The transaction, which is expected to close within sixty days, is subject to customary closing conditions, including regulatory approvals.

Shares of Universal American traded Wednesday in a range of $10.86 to $13.34 on 7 times the average daily volume. Universal American closed at $10.93, a loss of 19% for the day.

Icahn's Tender Offer for Commercial Metals Expires

The Decision:
Icahn Enterprises Holdings (NASDAQ: IEP) announced Wednesday that the tender offer for all outstanding shares of common stock of Commercial Metals Company (NYSE: CMC) for $15.00 per share in cash expired at midnight, Tuesday, January 10, 2012. Approximately 23% of the shares were tendered. No shares were purchased, and all shares previously tendered and not withdrawn will be promptly returned.

Mr. Icahn stated: "We did not receive 40.1% of the shares, and therefore, as previously disclosed, we will discontinue our proxy fight."

Commercial Metals shares fell 6% on the news, closing at $13.88 on twice the average daily volume. Commercial Metals shares traded Wednesday in a range of $13.79 to $14.45.

Oracle to Acquire Brocade

The Rumor:
Oracle (NASDAQ: ORCL) to acquire Brocade (NASDAQ: BRCD) for as much as $8.50, a 40% premium over the current share price. The acquisition of Brocade could enable Oracle to better compete with Cisco Systems, according to comments out of ThinkEquity and Avian Securities, as reported by Bloomberg.

Brocade shares traded Wednesday in a range of $5.87 to $6.04, on 1.75 times the average daily volume. Brocade closed at $5.89, a gain of 2.08% for the day.

Nokia Not Being Sold to Microsoft

The Response:
Nokia (NYSE: NOK) CEO Stephon Elop, said rumors that his company will be sold to Microsoft (NASDAQ: MSFT) are baseless, in a interview with PC Mag.

Nokia shares traded in a range of $5.23 to $5.34 Wednesday, on 69% of the average daily volume. Nokia closed at $5.32, a loss of 1.3% for the day.

Jaguar Mining to be Acquired for $10+ Per Share

The Rumor:
Jaguar Mining (NYSE: JAG) to be acquired in excess of $10 per share, according to the editor of the Little Bear Research blog.

The Brazil gold producer said Wednesday it has identified potential buyers and has executed confidentiality agreements with those parties. Back in November, China's Shandong Gold Group offered $9.30 per share.

Jaguar Mining shares traded Wednesday in a range of $6.49 to $6.83 on half the average daily volume. Jaguar closed at the high and gained an additional 4% after-hours.

Textron Considers Spin-Off

The Rumor:
Textron (NYSE: TXT) considers spinning-off some of its businesses, which include Cessna aircraft and Bell helicopters. The potential spinoff was reported today by Reuters. On October 10, 2011, Textron was mentioned as a potential takeover target for General Electric (NYSE: GE).

Textron shares traded in a range of $21.02 to $22.00 Wednesday, on about 3 times the average daily volume. Textron closed at $21.32, a gain of 5.7% for the day.

Walter Energy to be Acquired

The Rumor:
On Tuesday, it was rumored that Walter Energy (NYSE: WLT) had cancelled out of a Goldman Sachs conference. The company confirmed it was due to a scheduling conflict. On Wednesday, Walter Energy announced a special board meeting, supposedly to discuss strategic options. The rumor remains alive.

Walter Energy traded Wednesday in a range of $56.80 to $62.49 on 2.6 times the average daily volume. Walter Energy closed at $61.68, a gain of 7.38% for the day.

Cobalt International Energy to be Acquired for $25 Per Share

The Rumor:
Cobalt International Energy (NYSE: CIE) to be acquired for $25 per share or more, according to energy investment bank Tudor Pickering.

Cobalt International Energy traded Wednesday in a range of $17.92 to $18.97 on twice the average daily volume. Cobalt closed at $18.27, a gain of 1.22% for the day.

Posted-In: Long Ideas News Short Ideas Rumors Commodities Asset Sales Insider Trades M&A

 

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