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Benzinga's M&A Chatter for Monday September 22, 2014

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Benzinga's M&A Chatter for Monday September 22, 2014

The following are the M&A deals, rumors and chatter circulating on Wall Street for Monday September 19 through Sunday September 21, 2014:

Siemens to Acquire Dresser Rand for $83/Share

The Deal:
Dresser-Rand Group Inc. (NYSE: DRC) announced Sunday, that it has entered into a definitive merger agreement with Siemens under which Siemens will acquire all of the outstanding shares of Dresser-Rand common stock for $83.00 per share in cash, in transaction valued at approximately $7.6 billion.

The deal is expected to close in the summer of 2015, subject to Dresser-Rand shareholder approval, as well sas regulatory approval in the U.S., Europe and certain other jurisdictions

Sulzer (OTC: SULZF) confirmed Monday they had terminated discussions with Dresser-Rand and were pursuing other M&A projects. General Electric (NYSE: GE), which was rumored by Financial Times on Friday to be preparing a bid for Dresser-Rand, was not heard from on Monday.

Dresser-Rand shares closed Monday at $81.97, a gain of 2.5%.

Report Silver Lake in Talks to Acquire Shutterfly for $50+/Share

The Rumor:
Shares of Shutterfly (NASDAQ: SFLY) surged higher Monday, following a report from Reuters that private equity firm Silver Lake was in talks to acquire the photo sharing company for more than $50.00 per share.

Spokespersons for Shutterfly and Silver Lake did not respond to requests for comment.

Shutterfly shares closed Monday at $50.12, a gain of more than 5%.

Merck KGaA to Acquire Sigma-Aldrich for $140/Share in Cash

The Deal:
Merck KGaA (OTC: MKGAY) and Sigma-Aldrich (NASDAQ: SIAL) announced Monday, that Merck KGaA will acquire Sigma-Aldrich for $17.0 billion or $140 per share in cash. The deal is expected to close in mid-year 2015, subject to regulatory approvals and other customary closing conditions.

Sigma-Aldrich closed Monday at $136.40, a gain of 33%.

EMC Reportedly Held Merger Talks with Hewlett-Packard

The Rumor:
EMC Corporation (NYSE: EMC), reportedly held talks with Hewlett-Packard (NYSE: HPQ), according to a report from WSJ. The discussions are said to have taken place over a period of almost a year, and according to sources, the talks have recently ended. It is not known if the talks can be revived.

Other companies seen as potential suitors for all or part of EMC, include Dell, Cisco (NASDAQ: CSCO) and Oracle (NASDAQ: MSFT). Shareholder Elliott Management has been urging EMC to consider a breakup, including a sale of its 80% VMware stake, to unlock shareholder value.

EMC closed Monday at $29.68, a gain of $0.15, on three times average volume. Shares of VMware (NYSE: VMW) rose 2% Monday, to close at $96.16.

Report Allergan Rejected Bid from Actavis; Allergan in Talks to Acquire Salix

The Rumor:
Allergan Inc. (NYSE: AGN) recently rejected a takeover bid from Actavis plc (NYSE: ACT), according to a report from WSJ. Actavis is said to still be interested in a deal for Allergan.

Sources say Allergan is in talks to acquire Salix Pharmaceuticals Ltd. (NASDAQ: SLXP) in an all-cash deal worth more than $10 billion. Salix has already agreed to a merger with Cosmo Pharmaceuticals.

Allergan has been fighting off a hostile takeover by Valeant Pharmaceuticals International, Inc. (NYSE: VRX), led by investor Bill Ackman.

Allergan closed Monday at $166.12, a loss of more than 1%, and traded up 1.5% after-hours. Actavis closed Monday at $235.62, a loss of 2.5% and gained $1.38 after-hours. Salix Pharmaceuticals lost 2.5% to close at $159.83, but traded at $185.00 after-hours.

 

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