Market Overview

Wall Street's M&A Chatter From March 29: Cabela's, WebMD, MaxLinear-Exar


The following are the M&A deals, rumors and chatter circulating on Wall Street for Wednesday March 29, 2017:

WebMD Begins Sale Process

The Rumor:

WebMD (NASDAQ: WBMD) has begun its sales process, according to sources as reported by Dealreporter. WebMD announced February 16 it was exploring strategic alternatives and hired JPMorgan as an advisor.

WebMD closed at $53.79, up $3.56.

Exar to be Acquired by MaxLinear for $13/Share Cash

The Deal:

MaxLinear, Inc. (NYSE: MXL) and Exar Corporation (NYSE: EXAR) have entered into a definitive agreement under which MaxLinear has agreed to acquire Exar for $13.00 per share in cash, for a total value of approximately $700 million, or $472 million net of Exar's cash acquired. The acquisition will be conducted by means of a tender offer and is expected to close in Q2 of 2017.

Exar closed at $12.99, up $2.37.

Under Armour Chatter of PE Interest

The Rumor:

Private equity is in talks to take Under Armour (NYSE: UAA) private at $26.00 per share, according to unconfirmed market chatter. Management is said to be considering the offer and could make a decision by the weekend.

Nike (NYSE: NKE) has been mentioned often as a potential buyer for Under Armour.

Under Armour closed at $20.66, up $0.71.

Synovus Financial in Talks to Acquire Cabela's Banking Unit

The Rumor:

Cabela's (NYSE: CAB) is said to be in talks to sell its financial business to Synovus Financial Corp. (NYSE: SNV), according to sources as reported by the Wall Street Journal. Under the proposed plan, Synovus would resell the credit-card portfolio to Capital One (NYSE: COF) and retain approximately $1 billion in deposits held in Cabela's bank, in order to avoid a regulatory review for Capital One, the sources said.

Bass Pro Shops and Cabela's announced on October 3 that Bass would acquire Cabela's for $65.50 per share in cash. Capital One was to acquire the banking operation, but investigations into its anti-money-laundering controls put the whole deal in jeopardy and sent Cabela's shares into the mid-$40s.

The talks are said to be ongoing.

Cabela's closed at $52.04, up $5.79.

Posted-In: M&A News Rumors


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