Skip to main content

Market Overview

Benzinga's M&A Chatter for Wednesday January 15, 2014

Share:
Benzinga's M&A Chatter for Wednesday January 15, 2014

The following are the M&A deals, rumors and chatter circulating on Wall Street for Wednesday January 15, 2014:

Renewed Talk of Dish Interest in T-Mobile Acquisition

The Rumor:
Shares of T-Mobile US (NYSE: TMUS) spiked higher Wednesday on a tweet from Fox Business' Charlie Gasparino that there is renewed banker talk of Charlie Ergen's Dish Network (NASDAQ: DISH) acquiring T-Mobile sometime this year.

In December, Nikkei reported that Sprint (NYSE: S) majority owner Softbank (OTC: SFTBY), could purchase T-Mobile in Q2, financing a deal through the U.S. bond market.

T-Mobile closed Wednesday at $32.53, a loss of 1%.

Riverbed Reject's Elliott's $19/Share Bid

The Rejection:
Riverbed Technology (NASDAQ: RVBD) announced Wednesday that its Board of Directors, after careful consideration, has decided not to accept the offer from shareholder Elliott Management of $19.00 per share. The Board feels the offer undervalues the company and is not in the best interests of shareholders.

Analysts have said that a bidding war for the company could drive the purchase price to $25.00.

Riverbed Technology closed Wednesday at $20.11, a gain of 1.5%.

Zoom Technologies to Acquire Tinho

The Deal:
On January 13, 2014, Zoom Technologies, (NASDAQ: ZOOM) entered into an LOI with Tinho Union Holding Group to acquire all the outstanding shares of Tinho, by issuing approximately 9.4 million new shares of the Company's common stock at a valuation of $8.6505 per share to the shareholders of Tinho.

Upon closing of the Transaction, Tinho shareholders would own approximately 75% of Zoom's ownership interest. Tinho has agreed to make good provisions of after tax net income of $8.2 million and $11.1 million, for the years ended December 31, 2013 and 2014, respectively, on half of the consideration shares. The LOI calls for the Company to have $27 million of cash in its accounts at the time of closing, and provides for the Company to use the cash for initiatives if such initiatives are approved by a majority of the independent directors.

Zoom Technologies closed Wednesday at $4.30, and gained more than 50% after-hours, trading as high as $7.50.

Brown & Brown to Acquire Wright Insurance Group $602.5M in Cash

The Deal:
Brown & Brown (NYSE: BRO) has agreed to acquire The Wright Insurance Group for $602.5 million, including cash payments of $587.5 million for the Programs Business, $7.5 million for Wright National Flood Insurance Company and $7.5 million for WNFIC statutory surplus.

The deal is expected to close in April of 2014

Brown & Brown closed Wednesday at $31.56.

 

Related Articles (DISH + BRO)

View Comments and Join the Discussion!

Posted-In: M&A News Rumors Management Insider Trades Movers

Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
SPAC
Everything you need to know about the latest SPAC news.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com