Market Overview

Benzinga's M&A Chatter for Friday December 7, 2012

The following are the M&A deals, rumors and chatter circulating on Wall Street for Friday December 7, 2012:

CNOOC's $15B Acquisition of Nexen Approved in Canada

The Deal:
Nexen (NYSE: NXY) announced Friday that under the terms of the Investment Canada Act, the Honourable Christian Paradis, Minister of Industry, has approved the proposed acquisition of Nexen by CNOOC Limited (NYSE: CEO) for $15 billion or $27.50 per share in cash. No further approvals are required in Canada.

Canada also approved Malaysia's Petronas takeover of oil and gas company Progress Energy (OTC: PRQNF).

Canada's Prime Minister, Stephen Harper on announcing the approvals, said foreign investment rules would be changed to prevent foreign government-owned companies from acquiring oil sands properties in all but “exceptional” circumstances.

Nexen closed at $23.52 Friday, but traded at $27.00 after hours.

Hearing Unconfirmed Market Chatter of Google Interest in Groupon

The Rumor:
Shares of Groupon (NASDAQ: GRPN) surged 23% Friday on rumors that Google (NASDAQ: GOOG) would once again be pursing a takeover of the daily deals company. The chatter appeared on reports Google was replacing its M&A head, David Lawee. On November 27, All Things D reported Groupon CEO Andrew Mason might be fired.

Groupon turned down a $6 billion bid from Google in late 2010. It's IPO opened for trade at $28 per share on November 4, 2011, but the price has been declining steadily, falling as low as $2.82.

A Groupon spokesperson told Benzinga there was no company issued news to account for the price action on Friday.

Groupon closed at $4.69 Friday on more than 2.5 times average volume.

Hearing Unconfirmed Market Chatter of Takeover Bid for True Religion

The Rumor:
True Religion Apparel (NASDAQ: TRLG) has received at least one takeover bid, according to Deal Reporter. The company is currently undergoing a strategic review process and reports have surfaced regarding private equity interest.

True Religion Apparel closed at $23.94 Friday, a loss of $0.15 on average volume.

Hearing Unconfirmed Takeover Chatter in Aegerion Pharmaceuticals

The Rumor:
Aegerion Pharmaceuticals (NASDAQ: AEGR) was the subject of takeover chatter on Friday, according to Deal Reporter. On Thursday, the Compensation Committee of the Company's Board of Directors approved the reservation of 1,000,000 shares of common stock to be used exclusively for the grant of non-qualified stock options.

Aegerion Pharmaceuticals closed at $20.17 on Friday, a loss of 2% on average volume.

Citrix Shares Surge on Cisco Takeover Speculation

The Rumor:
Shares of Citrix Systems (NASDAQ: CTXS) spiked higher Friday, after Cisco (NASDAQ: CSCO) CEO John Chambers stated that his company had gone too long without a major acquisition. Citrix Systems was not mentioned by Chambers.

A spokesperson for Citrix Systems was not available for comment.

Citrix Systems closed at $62.03 Friday, a gain of 3% on higher than average volume.

US Airways Merger with American Airlines Seen Back on Track After Pilot Contract Approval

The Rumor:
Pilots for American Airlines (OTC: AAMRQ) approved a six-year contract on Friday, giving them a 13.5% Stake in the company. According to Reuters, that opened the door for a merger with US Airways (NYSE: LCC). The proposed offer from US Airways would value the combined carrier at $8.5 billion, according to sources.

Under the proposed agreement AMR creditors would own 70% while US Airways shareholders would own 30% of the new company.

AMR Corp closed at $0.57 Friday, a gain of 12% on 3.5 times average volume.

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

 

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