Market Overview

Wall Street's M&A Chatter From May 16: Walgreens-Rite Aid, Raytheon, Citrix Systems, WashingtonFirst-Sandy Spring


The following are the M&A deals, rumors and chatter circulating on Wall Street for Tuesday, May 16, 2017.

FTC Steps up Pressure on Walgreen-Rite Aid merger

The Rumor:

The Federal Trade Commission has stepped up its scrutiny of the Walgreens (NASDAQ: WBA)-Rite Aid (NYSE: RAD) merger, sending out requests for additional information from Walgreen vendors and competitors, according to sources as reported by the New York Post on Tuesday.

The Civil Information Demands indicate the FTC is not yet ready to approve the merger and could be gathering information to block the deal, sources said, although many investigations with CID's do not result in lawsuits, according to experts.

“They are working hard to get more information,” a source with direct knowledge of the situation said.

The requests, known as Civil Information Demands, show that the Federal Trade Commission is still not ready to approve the deal, sources said. Walgreen certified compliance on May 8, which gives the FTC until July 7 to approve the merger or sue to block it. Rite Aid closed at $3.78, down $0.33.

Rumor Boeing is in Advanced Talks to Purchase Raytheon

The Rumor:

Shares of Raytheon (NYSE: RTN) surged higher Tuesday on unconfirmed market chatter that Boeing (NYSE: BA) is in advanced talks to acquire the defense contractor. "Sources" say the sale price is close to $200 per share.

Raytheon closed at $159.76, down $0.33.

WashingtonFirst Bankshare to be Acquired by Sandy Spring Bancorp in $489M Stock Deal

The Deal:

Sandy Spring Bancorp, Inc. (NASDAQ: SASR) the parent company of Sandy Spring Bank, and WashingtonFirst Bankshares, Inc. (NASDAQ: WFBI), the parent company of WashingtonFirst Bank, have entered into a definitive agreement for Sandy Spring to acquire WashingtonFirst in an all-stock deal valued at $489 million.

WashingtonFirst shareholders are expected to receive 0.8713 shares of Sandy Spring common stock for each share owned of WashingtonFirst common stock. The transaction has been unanimously approved by the Board of Directors of both companies. WashingtonFirst Bankshares will be re-branded as Sandy Spring Bank in early 2018.

WashingtonFirst Bankshares closed at $33.58, up $4.74.

Citrix Systems Said to have Few Potential Buyers

The Deal:
Shares of Citrix Systems (NASDAQ: CTXS) sold off on a report from Deal Reporter that there are only a few potential buyers, according to sources. Bloomberg reported on May 4 that Bain Capital, The Carlyle Group LP (NASDAQ: CG) and Thoma Bravo are among the bidders. Citrix hired Goldman Sachs to assist in the sale of the company.

Citrix is said to have approached Microsoft regarding a deal, according to the South Florida Business Journal.

Citrix Systems closed at $84.83, down $1.50.


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Posted-In: M&A News Rumors