Market Overview

Benzinga's M&A Chatter for Thursday January 10, 2013

The following are the M&A deals, rumors and chatter circulating on Wall Street for Thursday January 10, 2013:

Cerberus-Led Group to Acquire Up to 30% of Supervalu for $4/Share

The Deal:
SUPERVALU (NYSE: SVU) announced Thursday, a definitive agreement under which it will sell its Albertsons, Acme, Jewel-Osco, Shaw's and Star Market stores and related Osco and Sav-on in-store pharmaciesto AB Acquisition LLC, an affiliate of a Cerberus Capital Management-led investor consortium which also includes Kimco Realty Corporation (NYSE: KIM), Klaff Realty LP, Lubert-Adler Partners and Schottenstein Real Estate Group, in a transaction valued at $3.3 billion.

In addition to the sale, within ten business days of today, a newly-formed acquisition entity owned by a Cerberus-led investor consortium (“Symphony Investors”) will conduct a tender offer for up to 30 percent of SUPERVALU's outstanding common stock at a purchase price of $4.00 per share in cash.

Supervalu closed at $3.47 Thursday, a gain of 14% on 10 times average volume.

Hearing Private Equity Firms Target Legg Mason

The Rumor:
Private equity firms have been looking at Legg Mason (NYSE: LM) as a possible takeover target, according to unconfirmed market chatter. The firms reportedly were not able to convince the asset management company to sell.

A spokesperson for Legg Mason declined comment on the report, labeling it a rumor.

Legg Mason closed at $26.84 Thursday, a gain of 3% on 5.5 times average volume.

Hearing Renewed Takeover Chatter in Deckers

The Call Trade:
Shares of Deckers Outdoor rallied Thursday afternoon, following a trade of 9,500 March 45 calls at 3:20 PM. A takeover rumor made the rounds on Wednesday.

Deckers Outdoor closed at $37.02 Thursday, a gain of 2.5% for the day on average volume.

Northern Dynasty Confirms Talks with Potential Suitors

The Sale Talks:
A spokesperson for Northern Dynasty Minerals (NYSE: NAK) confirmed Thursday, the company has been in talks with potential suitors for a couple of months. While not confirming any specific buyer, the spokesperson stated that BHP Billiton (NYSE: BHP), Rio Tinto (NYSE: RIO) and Anglo American (OTC: AAUKY) were among companies that could possibly do a deal.

Northern Dynasty Minerals closed at $4.10 Thursday, a gain of 5% for the day on 3 times average volume.

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

 

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