Market Overview

Benzinga's M&A Chatter for Monday January 30, 2012

The following are the M&A deals, rumors and chatter circulating on Wall Street for Monday January 30, 2012:

Valeant Pharmaceuticals Withdraws Offer for Acquisition of ISTA Pharmaceuticals

The Withdrawn Offer:
Valeant Pharmaceuticals (NYSE: VRX) announced Monday that it has withdrawn its offer to acquire ISTA Pharmaceuticals (NASDAQ: ISTA) for $7.50 per share in cash. Valeant had previously announced that the offer would only remain open until January 31, 2012, but withdrew the offer today due to lack of progress.

"As we stated last December, we were not interested in participating in a lengthy evaluation process and we are disappointed that the ISTA team was not willing to fully explore our proposal by January 31," stated J. Michael Pearson, chairman and chief executive officer. "We continue to be disciplined on our M&A strategy and we are actively working on other opportunities that we believe can create value for our shareholders. We wish the ISTA team well in their future endeavors."

ISTA Pharmaceuticals closed at $8.10 Monday, a gain of 1.76% for the day on 4 times the average daily volume.

ABB to Acquire Thomas & Betts for $3.9 Billion

The Deal:
ABB (NYSE: ABB) and Thomas & Betts (NYSE: TNB), announced Monday that both companies' boards of directors have agreed to a transaction in which ABB will acquire Thomas & Betts for $72 per share in cash or approximately $3.9 billion.

The acquisition price represents a 24 percent premium to Thomas & Betts' closing stock price on Jan. 27, 2012 and a 35 percent premium to the volume weighted average stock price over the past 60 trading days. The transaction is subject to approval by Thomas & Betts shareholders as well as to customary regulatory approvals, and is expected to close by the middle of 2012.

Thomas & Betts closed at $71.31 Monday, a gain of 23.05% for the day on 53 times the average daily volume.

BMC Software Enters Into Definitive Agreement to Acquire Numara Software

The Deal:
BMC Software (NASDAQ: BMC) announced Monday that it has entered into a definitive agreement to acquire Numara Software, a leading global provider of integrated IT management solutions for the mid-market. This strategic acquisition will further accelerate the growth of BMC's Software-as-a-Service business, as well as giving customers – from the largest enterprises to smallest businesses – access to IT management capabilities geared to their unique requirements, all from a single industry leader.

The combined BMC and Numara product portfolio represents the industry's most comprehensive set of SaaS and on-premise IT management solutions across all business segments.

The transaction, which is expected to close during BMC's fiscal fourth quarter, is subject to customary closing conditions, including regulatory approvals. Additional details of this transaction will be provided during BMC's upcoming earnings call on Feb. 1, 2012.

BMC Software closed at $35.50 Monday, a gain of 0.06% for the day on slightly more than the average daily volume.

Pep Boys Enters Into Definitive Agreement to be Acquired by The Gores Group

The Deal:
The Pep Boys (NYSE: PBY) announced Monday that it has entered into a definitive merger agreement under which it will be acquired by The Gores Group, one of the nation's leading investment firms, led by founder and CEO, Alec Gores. Total enterprise value of the transaction is approximately $1.0 billion.

Under the terms of the merger agreement, The Gores Group will acquire all the outstanding common shares of Pep Boys for $15.00 per share in cash. This represents a premium of 24% percent over Pep Boys' closing price of $12.08 on January 27, 2012 and a premium of 36% percent over Pep Boys' volume weighted average closing price over the last 30 trading days.

Pep Boys closed at $14.93 Monday, a gain of 23.59% for the day on 36 times the average daily volume.

Options Media Signs Definitive Agreement to Acquire Illume Software

The Deal:
Options Media Group (OPMG) has entered into a definitive merger agreement to acquire 100% of the stock of Illume Software. The boards of directors of both companies have approved the merger, which is expected to close by February 12, 2012, subject to various closing conditions, including the approval of Illume shareholders and other customary closing conditions.

Under the terms of the definitive agreement, Illume will become a wholly-owned subsidiary of Options Media. The shareholders of Illume will own 40% of the post-merger company. The completion of the acquisition is contingent on Options Media receiving financing in connection with the acquisition and for ongoing operating costs.

Options Media closed at $0.01 Monday, a loss of 9% for the day on 16.1 million shares.

McKesson to Acquire Independent Banner and Franchise Businesses of Katz Group Canada

The Deal:
McKesson Corporation (NYSE: MCK) announced Monday that it has signed a definitive agreement to purchase Drug Trading Company, the independent banner business of Katz Group Canada, and Medicine Shoppe Canada, the franchise business of Katz Group. The acquisition demonstrates McKesson's long-standing commitment to the health of the independent pharmacy segment in the Canadian market. The purchase price is approximately CAD $920 million, which McKesson expects to fund from its available cash.

McKesson closed at $78.69 Monday, a loss of 0.78% for the day on slightly more than the average daily volume.

Piper Jaffray Says Amylin Pharmaceuticals Worth $33 in Takeover

The Analyst Note:
Piper Jaffray says Amylin Pharmaceuticals (NASDAQ: AMLN) is worth $33 per share as a takeover target, after Friday's FDA approval of Bydureon .

Amylin and Alkermes (NASDAQ: ALKS) announced Friday that the U.S. FDA had approved BYDUREON, the first once-weekly treatment for type 2 diabetes. BYDUREON will be available in pharmacies nationwide in February.

Amylin Pharmaceuticals closed at $14.26 Monday, a gain of 17.46% for the day on 9 times the average daily volume.

Hearing Takeover Chatter in Pan American Silver

The Rumor:
Pan American Silver (NASDAQ: PAAS) is a takeover target, according to the dealReporter.

A spokesperson for Pan American Silver had no comment on the rumor. Pan American Silver announced a week ago it was acquiring Minefinders (NYSE: MFN) for $15.60 in cash.

Pan American Silver closed at $22.81 Monday, a loss of 1.55% for the day on 1.5 times the average daily volume.

Crocs to be Acquired by Carlyle Group

The Rumor:
Crocs (NASDAQ: CROX) is a takeover target of Carlyle Group, according to sources. The rumored takeout price is $32.50 per share.

A rumor of private equity interest in Crocs last appeared on January 18, with a buyout price of $25 per share. A spokesperson for the company could not be reached for comment.

Crocs closed at $19.11 Monday, a loss of 1.04% for the day on the average daily volume.

Nabors Industries to be Acquired for $7.2B

The Rumor:
Nabors Industries (NYSE: NBR) is a takeover target, according to Bloomberg. The rumored takeout price is $25 per share or $7.2 billion.

On December 6, 2011, Baker Hughes (NYSE: BKI) was rumored to be a buyer of Nabors at $39.50. A spokesperson for the company could not be reached for comment.

Nabors Industries closed at $18.56 Monday, a gain of 3.51% for the day on 10.5 million shares.

YM BioSciences to be Acquired

The Rumor:
YM BioSciences (NYSE: YMI) is a takeover target, according to chatter circulating on Twitter Monday. Celgene was mentioned as a rumored buyer.

A spokesperson for YM BioSciences would not comment on the rumor.

YM BioSciences closed at $2.02 Monday, a gain of 18.13% on 3.4 times the average daily volume.

Radware to be Acquired

The Rumor:
Radware (NASDAQ: RDWR) is a takeover target, according to an article in Globes.

A spokesperson for Radware was not available for comment.

Radware closed at $31.21 Monday, a loss of 1.11% on 1.3 times the average daily volume.

Posted-In: Long Ideas News Short Ideas Rumors M&A After-Hours Center Movers Tech

 

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