Market Overview

Wall Street's M&A Chatter From October 30: Sprint-T-Mobile, Lennar-CalAtlantic, CenturyLink-Level 3, Dunkin Brands


The following are the M&A deals, rumors and chatter circulating on Wall Street for Monday, October 30, 2017.

Softbank Said to End Sprint, T-Mobile Merger Talks

The Rumor:

SoftBank Group (OTC: SFTBY) plans to end merger talks between its Sprint Corp (NYSE: S) unit and T-Mobile US Inc (NASDAQ: TMUS) due to disagreement on on ownership of the combined company, according to sources as reported by Nikkei Asian Review on Monday. The action by Softbank could happen as early as Tuesday, though a report by CNBC's David Faber says it won't happen.

Reuters later reported the merger talks had not been called off and will continue.

The major obstacle in the discussions is that T-Mobile parent Deutsche Telekom (OTC: DTEGY) insisted on a controlling stake, a source has said.

Sprint closed at $6.34, down 65 cents. T-Mobile closed at $59.98, down $3.37.

Lennar, CalAtlantic Announce $9.3B All-Stock Merger Agreement

The Deal:

Lennar Corporation (NYSE: LEN) and CalAtlantic Group Inc (NYSE: CAA) announced a merger agreement that has been approved by both boards of directors. Under the agreement, each share of CalAtlantic stock will be exchanged for 0.885 shares of Lennar Class A common stock in a transaction valued at approximately $9.3 billion, including $3.6 billion of net debt assumed.

The transaction is expected to close in Q1 of 2018.

Lennar closed at $55.68, down $2.33. CalAtlantic shares rose $8.62 to close at $49.07.

LyondellBasell Said to Approach Braskem Regarding Acquisition

The Rumor:

LyondellBasell Industries NV (NYSE: LYB) has approached Brazilian petrochemical company Braskem SA (ADR) (NYSE: BAK) regarding a potential acquisition, according to sources as reported by the Wall Street Journal. A deal could value Braskem at more than $10 billion, the sources said.

The talks are at an early stage, according to the report.

Braskem closed at $32.56, up $3.25. LyondellBasell closed at $106, up $6.99.

FCC Approves CenturyLink's Acquisition Of Level 3

The Approval:

CenturyLink Inc (NYSE: CTL) announced that the FCC has approved its pending acquisition of Level 3 Communications, Inc. (NYSE: LVLT). Approvals have already been received from the DoJ and the California Public Utilities Commission. The closing of the transaction is effective November 1, 2017.

CenturyLink closed at $18.40, up 92 cents. Level 3 closed at $52.70, up $1.39.

JAB Holdings Said to Approach Dunkin Brands

The Rumor:

JAB Holding is said to be considering a takeover of Dunkin Brands Group Inc (NASDAQ: DNKN), according to sources as reported by Street Insider. JAB previously acquired Keurig and Panera Bread and also owns Caribou Coffee, Einstein Noah, Krispy Kreme, Peet’s Coffee and Stumptown Roasters.

Dunkin Brands declined comment, while JAB did not respond to a request for comment.

Dunkin Brands closed at $59.09, up $4.27.


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