Market Overview

Benzinga's M&A Chatter for Wednesday October 3, 2012

The following are the M&A deals, rumors and chatter circulating on Wall Street for Wednesday October 3, 2012:

T-Mobile USA and MetroPCS to Combine in $1.5B Cash-Stock Deal

The Deal:
Deutsche Telekom (OTC: DTEGY) and MetroPCS Communications (NYSE: PCS) announced Wednesday that they have signed a definitive agreement to combine T-Mobile USA and MetroPCS. This transaction will create the leading value carrier in the U.S. wireless marketplace, which will deliver an enhanced customer experience through a wider selection of affordable products and services, deeper network coverage and a clear-cut technology path to one common LTE network. The combined company, which will retain the T-Mobile name, will have the expanded scale, spectrum and financial resources to aggressively compete with the other national U.S. wireless carriers.

Deutsche Telekom's supervisory board and MetroPCS' board of directors approved the transaction. The transaction is structured as a recapitalization, in which MetroPCS will declare a 1 for 2 reverse stock split, make a cash payment of $1.5 billion to its shareholders (approximately $4.09 per share prior to the reverse stock split) and acquire all of T-Mobile's capital stock by issuing to Deutsche Telekom 74% of MetroPCS' common stock on a pro forma basis. Deutsche Telekom has also agreed to roll its existing intercompany debt into new $15 billion senior unsecured notes of the combined company, provide the combined company with a $500 million unsecured revolving credit facility and provide a $5.5 billion backstop commitment for certain MetroPCS third-party financing transactions.

MetroPCS closed at $12.24 Wednesday, a loss of 9.80% on 8.5 times average volume.

Hearing AstraZeneca to Bid for Forest Labs

The Rumor:
Forest Labs (NYSE: FRX) could receive a bid of up to $50 per share from AstraZeneca (NYSE: AZN), according to the UK's Guardian.

On September 14 Carl Icahn purchased 37,5656 shares of Forest Labs and on September 24, there was heavy trading in the January 2013 38 and 41 calls.

Spokespersons for Forest Labs and AstraZeneca were not available for comment.

Forest Labs closed at $36.61 Wednesday, a gain of 1.55% on twice average volume.

Hearing Chatter Apple in Talks to Buy Pandora

The Rumor:
Apple (NASDAQ: AAPL) is holding takeover talks with Pandora Media (NYSE: P), according to a tech blog.

A spokesperson for Pandora said they have a working relationship with Apple, but declined comment on the takeover rumor.

Pandora Media closed at $10.53 Wednesday, a gain of 1.94% on lower than average volume.

Hearing Chatter MidAmerican Energy to Offer $30/Share for First Solar

The Rumor:
First Solar (NASDAQ: FSLR) is rumored to be in takeover talks with MidAmerican Energy, according to sources. The rumored buyout price is $30 per share or more.

A spokesperson for First Solar declined comment the rumor.

First Solar closed at $22.00 Wednesday, a loss of 3.87% on lower than average volume.

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

 

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