Market Overview

Wall Street's M&A Chatter From May 3: Citrix Systems, Straight Path, New Mountain Capital-VWR


The following are the M&A deals, rumors and chatter circulating on Wall Street for Wednesday, May 3, 2017.

New Mountain Capital Nears Deal to Buy VWR for ~$5B

The Rumor:

New Mountain Capital LLC is in advanced talks to acquire VWR Corp (NYSE: VWR), according to sources as reported by the Wall Street Journal. A transaction could be valued at near $5 billion, the sources said. Potential terms of the deal are not known. VWR has a current market cap of approximately $4.5 billion.

VMW closed at $33.62, up $5.10.

Bain Capital, Carlyle Group, Thoma Bravo Among Bidders for Citrix

The Rumor:

Private equity firms Bain Capital, The Carlyle Group LP (NASDAQ: CG) and Thoma Bravo are among the suitors for Citrix Systems, Inc. (NASDAQ: CTXS), according to sources as reported by Bloomberg. Bids were submitted last week, the sources said.

Representatives for Carlyle, Goldman Sachs and Thoma Bravo declined to comment. Representatives of Bain and Citrix didn’t respond to emails seeking comment.

Citrix Systems closed at $87.05, up $5.76.

Straight Path Says All-Stock Takeover for $135.96/Share is a Superior Offer to AT&T's

The Rumor:

Straight Path Communications Inc. (NYSE: STRP) announced that the Board of Directors determined that a revised offer from a multi-national telecommunications company (reportedly Verizon (NYSE: VZ) for $135.96 per share in an all-stock transaction, constitutes a “Superior Proposal” as defined in Straight Path’s previously announced definitive agreement and plan of merger with AT&T Inc. (NYSE: T) and Switchback Merger Sub Inc., dated as of April 9, 2017 (the “AT&T Merger Agreement”).

The Bidder previously submitted an unsolicited offer on April 24, 2017 to acquire 100 percent of the issued and outstanding shares of Straight Path for $104.64 per share (reflecting an enterprise value of $1.8 billion), which has been superseded by the revised offer announced today. Under the terms of the AT&T Merger Agreement, AT&T agreed to acquire Straight Path for $95.63 per share in AT&T stock.

AT&T has the option for the next three business days to negotiate an amendment to the agreement to match or exceed the the competitor's offer. Straight Path is required to pay a $38 million termination fee to AT&T if the Straight Path Board terminates the agreement.

Straight Path closed at $155.20, up $29.38.

Posted-In: M&A News Rumors


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