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Benzinga's M&A Chatter for Friday May 11, 2012

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

Wright Express Acquires CorporatePay

The Deal:
Wright Express Corporation (NYSE: WXS), a leading provider of value-based business payment processing and information management solutions, announced Friday that it has acquired the stock of CorporatePay, the largest privately held provider of corporate prepaid solutions to the travel industry in the United Kingdom for approximately GBP 17 million (approximately US $27.5 million), net of cash assumed, plus a potential earn-out component of up to GBP 5.5 million based on performance milestones. The all cash transaction is anticipated to be slightly dilutive to the Company's adjusted net income (which is a non-GAAP measure) in the first year of combined operations and slightly accretive thereafter.

Wright Express closed at $57.18 on Friday, a gain of 0.86% on lower than average volume.

Covington Investments Proposes To Acquire All Outstanding Shares Of Advocat for $8.50 Per Share In Cash

The Deal:
Covington Investments, LLC (together with its affiliates), submitted a non-binding proposal on Friday to acquire all outstanding common shares of Advocat Inc. (NASDAQ: AVCA) for $8.50 per share in cash in a negotiated transaction. Covington is a privately owned and growing provider of long-term care services in Florida, Ohio and Tennessee. In a letter sent to the Company's Board of Directors this morning, Covington details, among other things, that its proposal represents certain and substantial value for Advocat's shareholders at an approximate 100% premium over the Company's unaffected share price and expresses its desire to open negotiations aimed at reaching a mutually agreeable transaction.

Advocat closed at $6.82 Friday, a gain of 57.14% on 34 times the average daiy volume.

Hearing Chatter of LinkedIn Acquisition of Monster Worldwide

The Rumor:
LinkedIn (NYSE: LNKD) has an interest in acquiring Monster Worldwide (NYSE: MWW), according to sources cited by Reuters. Silver Lake Partners is another company being mentioned as a potential buyer for Monster.

A source familiar with the matter told Benzinga reports that LinkedIn has an interest in acquiring Monster Worldwide are not true. A spokesperson for Monster Worldwide was not available for comment.

Monster Worldwide closed at $9.33 on Friday, a gain of 19.01% on more than 3 times the average daily volume.

Hearing Chatter of AT&T in Merger Talks With Leap Wireless

The Rumor:
AT&T (NYSE: T) has been in merger talks with Leap Wireless (NASDAQ: LEAP), according to sources cited by Reuters.

The report comes on the heels of a Bloomberg report on Wednesday that Deutsche Telekom (DTEGY) was in talks with Metro PCS (NYSE: PCS) to merge the budget carrier with its T-Mobile USA unit.

A spokesperson for AT&T would not comment on the rumor. A Leap Wireless spokesperson was not available for comment.

Leap Wireless closed at $5.78 on Friday, a gain of 7.84% on more than 3 times the average daily volume.

Hearing Chatter Fusion-IO Rejected $33 Offer from Dell

The Rumor:
Fusion-IO (NYSE: FIO) has rejected a $33 per share offer from DELL (NASDAQ: DELL), according to sources. Fusion-IO has been the subject of frequent takeover rumors, with many big tech names being mentioned as possible acquirers.

A spokesperson for Dell would not comment on the rumor. A Fusion-IO spokesperson was not available for comment.

Fusion-IO closed at $21.41 on Friday, a gain of 3.93% on slightly more than the average daily volume.

Hearing Renewed Chatter of Sino Chem Offer for Mosaic

The Rumor:
Sino Chem is once again rumored to be offering to acquire Mosaic. The offer is reported to be between $60 and $70 per share. The same rumor surfaced in March.

A spokesperson for Mosaic would not comment.

Mosaic closed at $48.93 Friday, a 0.06% gain on lower than average volume.

Hearing Renewed Chatter of Potential Baidu Bid for Sohu

The Rumor:
Baidu (NASDAQ: BIDU) is once again rumored to be interested in acquiring Sohu.com (NASDAQ: SOHU), according to sources. On March 20, a similar rumor made the rounds with an $80 price tag on Sohu.

Spokespersons for Baidu and Sohu were not available for comment.

Sohu.com closed at $45.75 on Friday, a loss of 0.74% on lower than average volume.

Posted-In: Long Ideas News Short Ideas Rumors Management Global After-Hours Center Movers

 

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