Benzinga's M&A Chatter for Wednesday December 5, 2012

The following are the M&A deals, rumors and chatter circulating on Wall Street for Wednesday December 5, 2012: Freeport-McMoRan to Acquire Plains Exploration and McMoRan Exploration in Deals Valued at $20B The Deal:
Freeport-McMoRan Copper & Gold FCX, Plains Exploration & Production Company PXP and McMoRan Exploration MMR announced today that they have signed definitive merger agreements under which FCX will acquire PXP for approximately $6.9 billion in cash and stock and FCX will acquire MMR for approximately $3.4 billion in cash, or $2.1 billion net of 36 percent of the MMR interests currently owned by FCX and PXP. Upon closing, MMR shareholders will also receive a distribution of units in a royalty trust which will hold a 5 percent overriding royalty interest on future production in MMR's existing shallow water ultra-deep properties. FCX has agreed to acquire MMR for per-share consideration consisting of $14.75 in cash and 1.15 units of a royalty trust, which will hold a 5 percent overriding royalty interest in future production from MMR's existing ultra-deep exploration properties. FCX has agreed to acquire PXP for per-share consideration consisting of 0.6531 shares of FCX common stock and $25.00 in cash, equivalent to total consideration of $50.00 per PXP share, based on the closing price of FCX stock on December 4, 2012. McMoRan Exploration closed at $15.67 Wednesday, a gain of 85% on 28 times average volume. Plains Exploration closed at $44.50 Wednesday, a gain of 23% on 18 times average volume. Tata May Raise Offer for Orient-Express Hotels by 10% to 15% The Rumor:
Tata may raise its offer to acquire the remainder of Orient-Express Hotels OEH by 10% to 15%, according to Times of India. That could bring Tata's offer over $14 per share. Tata's Indian Hotels offered $12.63 per share on November 18, to acquire the remainder of the OEH shares it did not already own. That offer was rejected by the Orient-Express Board on November 8. Orient-Express Hotels closed at $11.97 Wednesday, a loss of 2% on twice average volume. Supervalu May Sell Two Chains to Cerberus The Rumor:
Supervalu SVU is considering selling chains Albertsons and Save-A-Lot to Cerberus Capital Management, according to Bloomberg. A Supervalu spokesperson reiterated the company's strategic review process was ongoing and there was active dialogue with several potential buyers. Those buyers are believed to include Cerberus and KKR KKR. The company announced the strategic review on July 12, 2012. Supervalu closed at $2.90 Wednesday, a gain of almost 14% on 3 times average volume. Starz May be Acquired After Spinoff from Liberty Media The Rumor:
Shares of Liberty Media LMCA surged higher Wednesday on a report from WSJ that the company's Starz movie network might attract potential buyers following a spinoff next month. The news followed a selloff of Liberty Media shares Tuesday on news the company would not extend its deal with Disney DIS and would lose the rights to Netflix NFLX. A spokesperson for Liberty Media was not available for comment, Liberty Media closed off the highs at $106.40 on Wednesday, a gain of $0.84 on almost 5 times average volume. Starbucks Expects to Purchase Teavana This Year The Deal:
Starbucks SBUX confirmed it plans to go ahead with its acquisition of Teavana TEA in spite of a negative report on November 20 from short-seller Glaucus Research. The report said there was pesticide in the company's teas. Teavana denied the charges in the report. Starbucks agreed to buy Teavana for $15.50 per share in cash. Teavana Holdings closed at $15.41 Wednesday, a gain of 7% on 4.5 times average volume. Group Led by Former CEO Lowers Offer for Kit Digital The Deal:
A group led by former KIT Digital Chairman and CEO Kaleil Isaza Tuzman lowered the acquisition offer for his former company in a letter to the Kit Digital Board of Directors on Wednesday, to a range of $1.35 to $1.70 per share. The offer is based on the current price of KITD stock, compounded by the Company's strategic drift and worsening liquidity and capital structure issues. Tuzman's group had offered $3.75 per share for KIT Digital on November 23. In the absence of a response to the offer by 5 PM ET on Wednesday, December 12, 2012, that generates demonstrable progress towards a transaction, the group will evaluate other options available. Kit Digital closed at $0.74 Wednesday, a gain of 3% on 4.5 times average volume.