Market Overview

Benzinga's M&A Chatter for Wednesday February 1, 2012

The following are the M&A deals, rumors and chatter circulating on Wall Street for Wednesday February 1, 2012:

Molycorp To Receive $390 Million Strategic Investment From Molymet

The Deal:
Molycorp (NYSE: MCP) announced Wednesday that Molibdenos y Metales S.A. has agreed to invest approximately $390 million in Molycorp in exchange for 12.5 million shares of Molycorp common stock. The price of the Molycorp shares to be purchased were valued based on the 20-day volume weighted average share price as of the close of trading on January 30, 2012 plus a 10.0% premium. Molycorp has agreed to appoint to its Board of Directors upon the closing of the proposed investment a nominee to be designated by Molymet.

Molycorp closed at $29.69 Wednesday, a loss of 4.16% for the day on 1.7 times the average daily volume.

NYSE Euronext, Deutsche Boerse Announce Termination of Merger Agreement

The Termination:
NYSE Euronext (NYSE: NYX) announced Wednesday that in light of the decision by the European Commission to prohibit its proposed combination with Deutsche Boerse (DBOEY), the companies are in discussions to terminate their merger agreement.

NYSE Euronext said it would focus on the successful standalone strategy that has delivered strong growth and diversification of its core businesses and that it would leverage its financial strength to return capital to shareholders. In that regard, NYSE Euronext announced its intent to resume a $550 million share repurchase program following the termination of the merger agreement and after the release of its fourth quarter and 2011 year-end results on February 10, 2012.

NYSE Euronext shares closed at $26.43 Wednesday, a loss of 0.49% for the day on almost twice the average daily volume.

Georgia Gulf Rejects Increased Buyout Offer of $35/Share from Westlake Chemical

The Deal:
Georgia Gulf (NYSE: GGC) announced Wednesday that it has sent a letter to Westlake Chemical (NYSE: WLK) responding to Westlake's revised unsolicited proposal and to assertions made by Westlake.

The text of the letter sent today from Paul D. Carrico, President and Chief Executive Officer of Georgia Gulf, to Albert Chao, President and Chief Executive Officer of Westlake, follows: “I am writing to reiterate the points I made during our conversations and in correspondence from earlier this week, in which I shared with you the reaction of the Georgia Gulf Board of Directors to the conversation you and I had on January 27th in which you indicated the possibility of increasing your proposal to $35 per share.

“We take our fiduciary duties very seriously and will consider any bona fide acquisition proposal or other transaction that reflects the full and fair value of Georgia Gulf's current business and future prospects. However, it continues to be the unanimous view of the Board that $35 per share, which represents a discount to last night's closing price, is far from compelling and does not represent an appropriate price for us to discuss the sale of Georgia Gulf on a one-off basis.

Georgia Gulf closed at $35.08 Wednesday, a gain of 0.09% for the day on 10 times the average daily volume.

SandRidge Energy to Acquire Dynamic Offshore Resources

The Deal:
SandRidge Energy (NYSE: SD) has entered into an agreement to acquire Dynamic Offshore Resources for aggregate consideration of $1.275 billion consisting of approximately $680 million in cash and approximately 74 million shares of SandRidge common stock valued at $8.02 per share.

SandRidge has secured $725 million in committed financing from BofA Merrill Lynch, SunTrust Robinson Humphrey and The Royal Bank of Scotland plc that the company may use to fund the cash portion of the consideration. In addition, the company's $790 million borrowing base facility remains undrawn. The transaction is expected to close during the second quarter of 2012, subject to customary closing conditions.

Sandridge Energy closed at $7.83 Wednesday, a gain of 0.64% for the day on average volume.

Quad Graphics Acquires Williamson Printing Corporation

The Deal:
Quad/Graphics (NYSE: QUAD) announced Wednesday it has purchased Dallas-based Williamson Printing Corporation. The acquisition expands the company's growing U.S. network of commercial and specialty print facilities to the Dallas-Fort Worth area, home to one of the largest concentrations of corporate headquarters in the United States.

Quad Graphics closed at $11.90 Wednesday, a gain of 1.28% for the day on slightly more than average volume.

CTPartners Signs Letter of Intent to Acquire J-M. Beigbeder - CEO Search in France

The Deal:
CTPartners (NYSE: CTP) announced Wednesday that it has signed a letter of intent to acquire J-M. Beigbeder - CEO Search, an executive search firm specializing in senior executive and board level recruitments as well as in board advisory services in Paris.

Founded in the United States in 1980, CTPartners has been present in France since 2005. The Paris office currently employs 40 people.

CTPartners closed at $6.14 Wednesday, a loss of 0.16% for the day on slightly more than average volume.

DeVry To Acquire Faculdade Boa Viagem

The Deal:
DeVry (NYSE: DV) announced Wednesday that it has entered into a definitive agreement to acquire Faculdade Boa Viagem. The acquisition is another step in the process of expanding DeVry Brasil's presence in the northeast area of the country. The transaction is expected to be completed within 30 days.

DeVry shares closed at $38.63 Wednesday, a gain of 2.3% for the day on slightly more than average volume.

Neenah Paper Purchases Wausau's Premium Brands

The Deal:
Neenah Paper (NYSE: NP) announced the purchase of the branded premium paper portion of Wausau's Fine Paper division on Jan. 31, 2012.

“The acquisition of Wausau brands strengthens the breadth of our existing Fine Paper business with added scale in the marketplace, prospects for growth in new channels such as retail, and the opportunity to provide our customers with better service,” said Julie Schertell, president, Neenah Fine Paper.

Neenah Paper closed at $24.55 Wednesday, a gain of 3.28% for the day on average volume.

Hearing Renewed Takeover Chatter in Walter Energy

The Rumor:
Walter Energy (NYSE: WLT) was the subject of renewed takeover chatter, as it is just about once a week. BHP Billiton (NYSE: BHP) once again was mentioned, along with Vale (NYSE: VALE).

A spokesperson for Walter Energy told Benzinga they do not comment on rumors or speculation.

Walter Energy closed at $71.17 Wednesday, a gain of 2.95% for the day on average volume.

Private Equity Has No Interest in Corelogic

The Rumor:
Corelogic (NYSE: CLGX) shares spiked sharply lower on comments out of dealReporter that private equity has no interest in acquiring the company.

A company spokesperson would not comment and referred Benzinga to their PR firm, who did not respond to a call.

Corelogic closed at $14.03 Wednesday, a gain of 1.20% for the day on 3.4 times the average daily volume.

Total to Acquire Whiting Petroleum

The Rumor:
Total (NYSE: TOT) to acquire Whiting Petroleum (NYSE: WLL) for $70 per share, according to sources. On October 20, 2011, a similar offer was reported coming from Korea National Oil.

A spokesperson for Whiting Petroleum would not comment on the rumor. A Total spokesperson did not return Benzinga's call.

Whiting Petroleum closed at $50.12 Wednesday, a gain of 0.06% for the day on 80% of the average daily volume.

Hearing Renewed Takeover Chatter in Corinthian Colleges

The Rumor:
Corinthian Colleges (NASDAQ: COCO) had renewed takeover chatter on Wednesday. On January 25, Carlyle Group was mentioned as the rumored buyer.

A spokesperson for Corinthian Colleges reiterated the company's policy of not commenting on rumors.

Corinthian Colleges closed at $4.13 Wednesday, a gain of 36.30% for the day on 8 times the average daily volume.

Hearing Vague Takeover Chatter in Robbins & Myers

The Rumor:
The editor of the Little Bear Research. blog believes Robbins & Myers could be for sale. He is long the stock on that premise.

A spokesperson for Robbins & Myers could not be reached for comment.

Robbins & Myers closed at $50.40 Wednesday, a gain of 3.79% for the day on 1.4 times the average daily volume.

Brean Murray Sees Medivation as a Potential Takeout Target

The Analyst Note:
Analyst Brean Murray sees Medivation (NASDAQ: MDVN) as a takeover target. The note was issued after Tuesday's positive phase 3 MDV3100 prostate cancer trial data was released by Medivation.

Medivation closed at $67.57 Wednesday, a gain of 21.95% for the day on 4.3 times the average daily volume.

Hearing Renewed Takeover Chatter in Interdigital

The Rumor:
Interdigital (NASDAQ: IDCC) had renewed takeover chatter on Wednesday. A frequent takeover name, Interdigital was rumored to be a target on a group led by Intel on January 5.

A spokesperson for Interdigital could not be reached for comment.

Interdigital closed at $39.10 Wednesday, a gain of 4.8% for the day on 1.5 times the average daily volume.

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

 

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