Market Overview

Wall Street's M&A Chatter From November 3-5: Sprint-T-Mobile, Broadcom-Qualcomm, Rent-A-Center

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The following are the M&A deals, rumors and chatter circulating on Wall Street for Friday, November 3, through November 5, 2017.

T-Mobile, Sprint Officially End Merger Discussions

The End of Merger Talks:

T-Mobile US Inc (NASDAQ: TMUS) and Sprint Corp (NYSE: S) jointly announced Saturday that they have ended their merger talks, due to failure to agree to terms. John Legere, President and CEO of T-Mobile said a merger with Sprint has been compelling, but such a deal would have to have resulted "in superior long-term value for T-Mobile's shareholders compared to our outstanding stand-alone performance and track record."

Sprint President and CEO and Softbank Board member Marcelo Claure said, "While we couldn't reach an agreement to combine our companies, we certainly recognize the benefits of scale through a potential combination. However, we have agreed that it is best to move forward on our own."

Sprint closed Friday at $6.67. T-Mobile closed at $58.91.

Broadcom to Bid Up to $70/Share in Cash, Stock for Qualcomm

The Rumor:

Broadcom Ltd (NASDAQ: AVGO) is preparing a bid for Qualcomm, Inc. (NASDAQ: QCOM), according to CNBC's David Faber. Sources say Broadcom could be as much as $70 per share, with a minimum of 75 percent in cash. Qualcomm would also have to complete its $38 billion acquisition of NXP Semiconductors (NASDAQ: NXPI), the sources said.

Sources say Qualcomm feels the Broadcom offer undervalues the company. The Wall Street Journal first reported on Friday that an offer from Broadcom for Qualcomm was forthcoming.

Qualcomm closed Friday at $61.81, up $6.97, trading as high as $64.99 following the WSJ report.

Rent-A-Center Receives $13/Share Bid from Vintage Capital

The Offer:

Rent-A-Center Inc (NASDAQ: RCII) confirmed Friday it received a conditional, non-binding proposal from Vintage Capital Management, LLC to acquire the Company for $13.00 per share in cash. The Rent-A-Center Board said it "will carefully review and consider a full range of options focused on maximizing stockholder value, which will now include the Vintage proposal."

Rent-A-Center announced on October 30, 2017 that its Board of Directors had initiated a process to explore strategic alternatives.

Rent-A-Center closed at $10.54, up 62 cents.

Posted-In: News Rumors M&A Pre-Market Outlook

 

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