Market Overview

Benzinga's M&A Chatter for Tuesday May 15, 2012

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The following are the M&A deals, rumors and chatter circulating on Wall Street for Tuesday May 15, 2012:

Coty Withdraws Bid for Avon Products

The Withdrawal:
Coty sent a letter to the Board of Directors of Avon Products (NYSE: AVP) withdrawing its acquisition proposal. Coty stated: "We received encouragement from many of your shareholders, research analysts and others in the financial community. Despite this support, your total lack of engagement with us leads us to believe that you remain reluctant to explore a friendly, negotiated combination on a reasonable timetable. Two months is enough. Consequently, as our deadline to begin discussions expired today, our proposal is withdrawn. It is time for Coty Inc. to move on and pursue other opportunities."

Avon replied: "Avon Products, Inc. responded promptly to Coty's May 9th letter by disclosing it on May 10th and indicating that its Board would consider the contents of the letter. Subsequently on May 13th, Avon's Board said it would respond to Coty's letter within one week after considering it in conjunction with management and financial and legal advisors. On May 14th, five days after sending its letter, Coty withdrew its proposal."

Later on Tuesday, Bloomberg reported that Richmont may still have an interest in pursuing Avon.

Avon Products closed at $18.71 on Tuesday, a loss of 9.74% on 4.5 times the average daily volume.

Anadarko Petroleum Looking at Chesapeake Energy Assets

The Rumor:
Anadarko Petroleum (NYSE: APC) plans to look at Chesapeake Energy's (NYSE: CHK) Permian Basin assets, according to Bloomberg.

A spokesperson for Anadarko Petroleum told Benzinga: "we love our portfolio", but "we are always looking at and evaluating additional opportunities". The spokesperson confirmed that Chesapeake was one of the potential opportunities. A Chesapeake spokesperson would not comment on the Bloomberg article.

Chesapeake Energy closed at $14.65 on Tuesday, a loss of 5.61% on more than twice the average daily volume.

Centerbridge Partners Commences $51.50 Per Share Cash Tender Offer for All Outstanding Shares of P.F. Chang's China Bistro

The Offer:
In connection with the previously announced merger agreement entered into to acquire P.F. Chang's China Bistro, Inc. (NASDAQ: PFCB), P.F. Chang's announced Tuesday that Wok Parent LLC, Wok Holdings Inc. and Wok Acquisition Corp. have commenced a cash tender offer to acquire all of the outstanding shares of P.F. Chang's common stock. Upon the successful closing of the tender offer, stockholders of P.F. Chang's who tendered their shares in the tender offer will receive $51.50 per share in cash, without interest and less any required withholding taxes. Parent and Purchaser are newly formed entities and are wholly owned by funds advised by Centerbridge Partners, L.P., a leading private investment firm.

The tender offer is subject to conditions, including the tender of approximately 83% of the outstanding shares of P.F. Chang's, the receipt of the Federal Trade Commission's approval under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, and other customary closing conditions. In certain cases, the parties have agreed to proceed with a one-step merger transaction if the tender offer is not completed.

P.F. Chang's China Bistro closed at $51.47 on Tuesday, a gain of 0.39% on 1.4 times the average daily volume.

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

 

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