Market Overview

Benzinga's M&A Chatter for Monday January 9, 2012


The following are the M&A deals, rumors and chatter circulating on Wall Street for Monday January 9, 2012:

Bristol-Meyers Squibb Acquires Inhibitex

The Deal:
Bristol-Meyers Squibb (NYSE: BMY) acquires Inhibitex (NASDAQ: FSLR) for $26 per share.

The deal, announced late Saturday, took the biotech world by storm on Monday and gave new life to an industry that has been desperately looking for the "next big thing", since Dendreon and Human Genome Sciences failed to live up to the hype.

Inhibitex primary focus is on the development of nucleotide/nucleoside analogs for the treatment of hepatitis C virus. Its lead HCV asset is INX-189, an oral nucleotide polymerase inhibitor in Phase II development that has exhibited potent antiviral activity, a high barrier to resistance and pan-genotypic coverage.

Under the terms of the definitive agreement, Bristol-Myers Squibb will commence a cash tender offer to purchase all of the outstanding shares of Inhibitex's common stock for $26.00 per share.

Inhibitex shares traded in a range of $23.55 to $24.08 Monday, on 11 times the average daily volume. Inhibitex closed at $23.70, a gain of 140% from Friday's close.

Perrigo Acquires Assets of CanAm Care for $36 Million

The Deal:
Perrigo Company (NASDAQ: PRGO) announced Monday that it has signed a definitive agreement to acquire substantially all of the assets of CanAm Care, a privately-held, Alpharetta, Georgia-based distributor of diabetes care products for approximately $36 million in cash. The acquisition is expected to be immediately accretive to adjusted earnings per share.

The assets acquired from CanAm Care include: Dex4 hypoglycemia products (tabs, liquids and gels), insulin delivery syringes and pen needles, lancing, wound care, and compression stockings. These store brand products will compete in a U.S. diabetes healthcare market opportunity estimated at over $1.5 billion in annual sales.

Brink's Acquires Kheops, SAS

The Deal:
The Brink's Company (NYSE: BCO) announced Monday its acquisition of Kheops, SAS, a provider of logistics software and related services, for approximately $17 million. The acquisition gives Brink's proprietary control of software used primarily in its cash-in-transit and money processing operations in France. Brink's intends to continue developing the software for internal use in France and certain other countries in which it operates.

The transaction is expected to be earnings-neutral in 2012 and accretive to earnings in 2013.

Prospect Capital Portfolio Company Energy Solutions Sells Gas Solutions for $200 Million

The Deal:
Prospect Capital Corporation (NASDAQ: PSEC) announced today that Prospect's portfolio company Energy Solutions Holdings has sold its gas gathering and processing assets for a sale price of $200 million, comprised of $172 million in cash plus a $28 million earnout based on the future performance of Gas Solutions.

Energy Solutions, formerly known as Gas Solutions Holdings, continues as a portfolio company of Prospect with other energy-related operations. Prospect continues to hold $40.5 million of debt against Energy Solutions, with such debt continuing to be serviced by Energy Solutions.

Pansoft Receives Offer from Timesway Group to Acquire Remaining Outstanding Shares

The Offer:
Pansoft (NASDAQ: PSOF) announced Monday that on January 7, 2012, the Company's Board of Directors received an offer from Chairman Hugh Wang, representing Timesway Group Limited, to acquire all outstanding Pansoft shares that it did not already own at a price of $3.76 per share in a transaction under the British Virgin Islands law that would result in the Company becoming a privately-held company. The transaction is intended to be structured as a merger between the Company and a special purpose vehicle company incorporated under the British Virgin Islands law and wholly owned by Timesway. Timesway is represented by Chairman Hugh Wang and had voting power over 64% of the Company's voting securities as of June 30, 2011 .

Pansoft shares traded Monday in a range of $2.82 to $3.23 on times the average daily volume. Pansoft closed at $3.11, a gain of 54.73% for the day.

First Solar to be Acquired for $60 Per Share

The Rumor:
First Solar (NASDAQ: FSLR) is in talks to be acquired for $60 and has hired Lazard to handle the process, according to sources.

General Electric and Siemens are most often mentioned as possible acquirers of the once high flying solar company. A spokesperson for First Solar would not comment on the rumor.

First Solar shares traded Monday in a range of $35.12 to $37.18 on two-thirds the average daily volume. First Solar closed at $36.84, a gain of 4.45% for the day.

Broacade Receiving Bids from Potential Buyers

The Rumor:
Brocade (NASDAQ: BRCD) has received bids from at least half a dozen potential buyers, including Silver Lake Partners and Blackstone Group. According to Reuters, the company has hired Qatalyst Partners to handle a possible leveraged buyout.

A spokesperson for Brocade would not comment on the rumor and Qatalyst Partners did not return a call placed by Benzinga.

Brocade shares traded Monday in a range of $5.13 to $6.05 on 5 times the average daily volume and closed at $5.77, a gain of 6.46% for the day.

Collective Brands to Receive Bids by Late January

The Rumor:
Collective Brands (NYSE: PSS) will receive bids from interested parties by the end of January, according to dealReporter.

This rumor first appeared about a month ago.

Shares of Collective Brands traded Monday in a range of $14.50 to $14.97 on 81% of the average daily volume. Collective Brands closed at $14.69, a gain of 0.07% for the day.

Sterne Agee Says SemiLEDS is a Potential Takeover Target

The Rumor:
Sterne Agee Commented Monday that SemiLEDS, (NASDAQ: LEDS) the Taiwan LED chip maker, is a possible takeover target, with a book value of $5.68.

SemiLEDS shares traded Monday in a range of $3.41 to $3.78 on 1.3 times the average daily volume. SemiLEDS closed at $3.44, a loss of 4.18% for the day.

Posted-In: Long Ideas News Short Ideas Rumors M&A After-Hours Center Movers Tech


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