Market Overview

Benzinga's M&A Chatter for Monday May 14, 2012

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The following are the M&A deals, rumors and chatter circulating on Wall Street for Monday May 14, 2012:

Golf Town to Acquire Golfsmith International for US $6.10 Per Share

The Deal:
Golf Town and Golfsmith International Holdings (NASDAQ: GOLF) announced Monday that they have signed a definitive merger agreement, pursuant to which Golf Town will acquire Golfsmith, a leading specialty golf retailer in the United States, for $6.10 per share in cash. This represents a premium of 32.2% to Golfsmith stockholders based on the volume-weighted average closing prices of the Company Common Stock on the 30 trading days immediately preceding this announcement. This also represents a premium of 55.1% to Golfsmith stockholders based on the volume-weighted average closing prices of the Company Common Stock on the 30 trading days immediately preceding the announcement on March 1, 2012, that the Company was evaluating strategic alternatives, including a potential sale of the Company. The closing of the acquisition, which is subject to limited closing conditions, including regulatory approvals, is expected to occur in the third quarter of 2012. The transaction is not subject to a financing condition.

Golfsmith closed at $6.04 on Monday, a gain of 28.24% on 160 times the average daily volume.

Park Sterling Corporation and Citizens South Banking Corporation to Merge

The Deal:
Park Sterling Corporation (NASDAQ: PSTB), the holding company for Park Sterling Bank, and Citizens South Banking Corporation (NASDAQ: CSBC), the holding company for Citizens South Bank, jointly announced Monday the signing of a definitive merger agreement under which Park Sterling will acquire Citizens South for a total value of approximately $77.8 million, excluding the exchange of $20.5 million in preferred stock issued to the United States Department of the Treasury in connection with Citizens South's participation in the Small Business Lending Fund. Upon completion of the transaction, the combined company will have approximately $2.2 billion in total assets, $1.7 billion in total deposits, $1.4 billion in total loans, and a network of 45 branches in the Carolinas and North Georgia. The combined company will rank as the largest community bank in the Charlotte-Gastonia-Rock Hill MSA, based on the most recent available deposit market share data, with 14 branches and pro forma deposits of approximately $771 million.

The merger agreement has been unanimously approved by the board of directors of each company. Closing of the transaction, which is expected to occur in the fourth quarter of 2012, is subject to customary conditions, including approval by Citizens South's shareholders, approval by Park Sterling's shareholders and receipt of regulatory approval.

Citizens South Banking closed at $6.22 Monday, a gain of 24.40% on 22 times the average daiy volume.

Tii Network Technologies Agrees To Be Acquired By Kelta for $2.15 Per Share

The Deal:
Tii Network Technologies (NASDAQ: TIII) announced Monday that it has entered into a definitive merger agreement with Kelta, pursuant to which Kelta will acquire Tii Network Technologies for $2.15 a share, or total consideration of approximately $33.1 million. The merger consideration represents an approximately 48% percent premium over the closing price of Tii Network Technologies' common stock as quoted on the website of the NASDAQ Stock Market on May 11, 2012.

Tii Network Technologies closed at $2.08 on Monday, a gain of 43.45% on 201 times the average daily volume.

Hearing Chatter of Texas Instruments Interest in Omnivision Technologies

The Rumor:
Texas Instruments (NYSE: TXN) may be looking to acquire Omnivision Technologies (NASDAQ: OVTI), according to sources.

Spokespersons for Texas Instruments and Omnivision were not available for comment.

Omnivision Technologies closed at $16.64 on Monday, a loss of 2.69% on more than half the average daily volume.

Warner Chilcott Cancels Out of Bank of America Conference

The Strategic Review:
Warner Chilcott (NASDAQ: WCRX) has cancelled out of the upcoming Bank of America Healthcare Conference.

A spokesperson for Warner Chilcott told Benzinga the cancellation was due to the fact the company is still in a period of reviewing strategic alternatives. The company confirmed on April 30 that they were reviewing strategic alternatives, which could include discussions with potential buyers.

Warner Chilcott closed at $21.86 on Monday, a gain of 2.20% on twice the average daily volume.

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


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