Benzinga's M&A Chatter for Monday March 12, 2012
The following are the M&A deals, rumors and chatter circulating on Wall Street for Monday March 12, 2012:
Youku and Tudou to Create China's Leading Online Video Company
Youku (NYSE: YOKU) and Tudou Holdings (NASDAQ: TUDO) announced Monday that they have signed a definitive agreement for Tudou to combine with Youku in a 100% stock-for-stock transaction. Under the terms of the agreement, each Class A ordinary share and Class B ordinary share of Tudou issued and outstanding immediately prior to the effective time of the merger will be cancelled in exchange for the right to receive 7.177 Class A ordinary shares of Youku, and each American depositary share of Tudou, each of which represents four Tudou Class B ordinary shares, will be cancelled in exchange for the right to receive 1.595 American depositary shares of Youku, each of which represents 18 Youku Class A ordinary shares resulting in Youku and Tudou shareholders and ADS holders owning approximately 71.5% and 28.5% of the combined entity, respectively, immediately upon completion of the transaction. Upon completion, the combined entity will be named Youku Tudou Inc. Youku's ADSs will continue to be listed on the NYSE under the symbol "YOKU".
Youku closed at $31.85 Monday, a gain of 27.35% on 10 times the average daily volume.
Tudou closed at $39.48 Monday, a gain of 156.53% on 78 times the average daily volume.
Asahi Kasei Announces Agreement to Acquire Zoll Medical
Asahi Kasei Corporation, and Zoll Medical Corporation (NASDAQ: ZOLL) jointly announced on Monday that Asahi Kasei, Japan's leading diversified chemical manufacturer with businesses in the health care, chemicals & fibers, homes & construction materials, and electronics sectors, has entered into a definitive merger agreement with ZOLL, a manufacturer of resuscitation and critical care devices and related software solutions, pursuant to which Asahi Kasei will acquire ZOLL for approximately $2.21 billion. The transaction has been approved by the Boards of Directors of both companies.
Asahi Kasei, through a U.S. subsidiary, will make a cash tender offer to purchase all of the outstanding shares of ZOLL common stock for $93 per share. The purchase price represents a premium of 29.6% over ZOLL's volume weighted average closing stock price over the 30 trading day period ended March 9, 2012, and a 23.8% premium over the closing price on March 9, 2012. Zoll closed at $92.94 Monday, a gain of 23.75% on about 22 times the average daily volume.
Xstrata Rumored Buyer of Arch Coal
Xstrata (XSRAY) is rumored to be buying Arch Coal (NYSE: ACI) for $21 per share. Arch Coal is a frequent takeover name, with recent potential buyers including Peabody Energy (NYSE: BTU) and Patriot Coal (NYSE: PCX).
A spokesperson for Arch Coal would not comment on the rumor. An Xstrata spokesperson was not available for comment.
Arch Coal closed at $11.60 Monday, a loss of 3.97% on 1.2 times the average daily volume.
News Corp Rumored to Make an Offer for Monster Worldwide
News Corp. (NASDAQ: NWSA) is rumored to be offering $18 per share for Monster Worldwide (NASDAQ: MWW), according to sources. Last week Monster announced it was retaining Stone Key Partners LLC and BofA Merrill Lynch as strategic advisers.
A Monster Worldwide spokesperson would not comment on the rumor. A News Corp. spokesperson was not available for comment.
Monster Worldwide closed at $8.95 Monday, a loss of 1.76% on 1.3 times the average daily volume.
Hearing Renewed Chatter of Merck Takeover of Idenix Pharmaceuticals
Merck (NYSE: MRK) is once again being mentioned as a potential buyer of Idenix Pharmaceuticals (NASDAQ: IDIX), according to sources. The same rumor appeared on February 6, with Merck said to be offering $24 per share.
A Merck spokesperson would not comment on the rumor. An Idenix spokesperson could not be reached for comment.
Idenix Pharmaceuticals closed at $11.18 Monday, a gain of 0.22% on average volume.
Hearing Rumor of Dell Interest in Acquiring Riverbed Technology
Dell (NASDAQ: DELL) has an interest in acquiring Riverbed Technology (NASDAQ: RVBD), according to sources. The rumored acquisition price is $39.50 per share. Riverbed last had takeover chatter on February 10, with Cisco (NASDAQ: CSCO) the rumored buyer, also at $39.50 per share.
A Dell spokesperson would not comment on the rumor. A Riverbed spokesperson could not be reached for comment.
Riverbed Technology closed at $26.81 Monday, a loss of 1.61% on average volume.
Hearing Barrick Gold to Bid on Agnico Eagle Mines
Barrick Gold (NYSE: ABX) is in talks to acquire Agnico Eagle Mines (NYSE: AEM), according to sources. The rumored acquisition price is $50 per share. Agnico Eagle Mines has fallen to half their September price, after problems in their Goldex mines in Quebec.
An Agnico Eagle Mines spokesperson said reports of a Barrick Gold offer are purely speculation. A Barrick spokesperson could not be reached for comment.
Agnico Eagle Mines closed at $35.241 Monday, a loss of 3.08% on 1.6 times the average daily volume.
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