Market Overview

Wall Street's M&A Chatter From March 17-19

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The following are the M&A deals, rumors and chatter circulating on Wall Street for Friday, March 17 through Sunday, March 19, 2017.

Washington Cos. Offers $13.50/Share for Dominion Diamond

The Offer:

The Washington Companies announced Sunday it has made a proposal to the board of directors of Dominion Diamond Corporation (NYSE: DDC) to acquire all of the outstanding common shares of Dominion for $13.50 per share in cash. The proposal, made in a letter to Dominion's board of directors on February 21, 2017, is conditional on Washington conducting due diligence during a period of exclusivity.

Dominion Diamond confirmed the approach, but said it wouldn't agree to the period of exclusivity and stated that Washington Companies has a lack of credibility in the diamond industry. The Dominion Board said it's willing to engage with Washington on "customary terms."

Dominion Diamond closed at $9.92 on Friday, up $1.10.

Elliott Management Pushing Akzo Nobel to Talk With Potential Buyer PPG

The Activist Investor:

Shareholder Elliott Management is pressing Akzo Nobel NV to engage in sale talks with buyer PPG Industries Inc. (NYSE: PPG), according to sources as reported by the Wall Street Journal on Friday. Elliott wanted Akzo to separate its specialty-chemicals business, but now wants the paints and coatings manufacturer to consider a sale as well.

On March 9, Akzo Nobel rejected a $22.1 billion bid from PPG, saying the offer "substantially undervalues" the company. Elliott wants Akzo to pursue a higher offer, but a second offer has not materialized as of yet.

PPG closed at $104.49, up $0.87.

Threshold Pharma, Molecular Templates Agree to Merger in All-Stock Deal

The Deal:

Threshold Pharmaceuticals, Inc. (NASDAQ: THLD) and Molecular Templates, Inc., announced a definitive agreement under which Molecular Templates will merge with a wholly owned subsidiary of Threshold in an all-stock transaction. Longitude Capital will invest $20 million in the combined company, focused on the development of novel treatments for cancer.

The transaction is expected to close in Q2 of 2017.

Threshold Pharmaceuticals closed at $0.68, up $0.07.

Albertsons Said to have Held Preliminary Merger Talks with Sprouts Farmers Market

The Rumor:

Cerberus Capital Management-backed Albertsons Cos. has had preliminary merger talks with Sprouts Farmers Market Inc. (NYSE: SFM), according to sources as reported by Bloomberg on Sunday. The talks to take Sprouts private are at an early stage, the sources said.

Shares of Sprouts Farmers Market spiked higher on Thursday and Friday, amid unusual option activity.

Cerberus and Sprouts did not immediately respond to requests for comment on the report.

Sprouts Farmers Market closed at $22.02, up $1.14.

Posted-In: News Rumors M&A

 

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