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Benzinga's M&A Chatter for Wednesday February 6, 2013

The following are the M&A deals, rumors and chatter circulating on Wall Street for Wednesday February 6, 2013:

Liberty Global to Acquire Virgin Media for $23.3B in Cash and Stock

The Deal:
Liberty Global (NASDAQ: LBTYA) and Virgin Media (NASDAQ: VMED) announced Tuesday that they have entered into an agreement, subject to shareholder approvals, pursuant to which Liberty Global will acquire Virgin Media in a stock and cash merger valued at approximately $23.3 billion.

Under the terms of the agreement, Virgin Media shareholders will receive $17.50 in cash, 0.2582 Liberty Global Series A shares and 0.1928 Liberty Global Series C shares for each Virgin Media share that they hold. Based on Liberty Global's Series A share price of $69.46 and Series C share price of $64.50 as of February 4, 2013, this implies a price of $47.87 per Virgin Media share, reflecting a 24% premium to Virgin Media's closing price on February 4, 2013.

Virgin Media closed at $44.61 Wednesday, a loss of 1.5% on 30 times average volume.

Reliance Steel to Acquire Metals USA Holdings for $20.65/Share in Cash

The Deal:
Reliance Steel & Aluminum (NYSE: RS) and Metals USA Holdings (NYSE: MUSA) announced Wednesday, a definitive merger agreement whereby Reliance Steel & Aluminum will acquire all outstanding shares of Metals USA Holdings for $20.65 per share in cash, representing an enterprise value of approximately $1.2 billion. The transaction is expected to close in the second quarter of 2013.

The merger agreement permits Metals USA to solicit alternative acquisition proposals from third parties through March 8, 2013.

Metals USA Holdings closed at $20.65 Wednesday, a gain of almost 13% on 32 times average volume.

Hearing True Religion Losing Support from Bankers

The Rumor:
True Religion Apparel (NASDAQ: TRLG) is reportedly losing the support of investment bankers, according to Deal Reporter. The consensus is that the sale process is not going well.

True Religion Apparel announced on October 10, 2012, that after receiving indications of interest from third parties regarding a potential transaction with the Company, the Board of Directors formed a Special Committee comprised of its non-management directors to explore and evaluate potential strategic alternatives available to the Company, including a possible sale,

True Religion Apparel closed at $23.75 Wednesday, a gain of 1% on 3 times average volume.

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

 

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