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Benzinga's M&A Chatter for Tuesday April 3, 2012

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The following are the M&A deals, rumors and chatter circulating on Wall Street for Tuesday April 3, 2012:

Royal Bank of Canada to Acquire Full Ownership of RBC Dexia Investor Services

The Deal:
Royal Bank of Canada (NYSE: RY) announced Tuesday that it has entered into a definitive agreement to acquire the 50 per cent stake that RBC does not already own in the joint venture RBC Dexia Investor Services Limited from Banque Internationale à Luxembourg S. A. for total consideration of €837.5 million in cash. Following the closing of the transaction RBC will own 100 per cent of RBC Dexia.

The transaction is subject to customary closing conditions, including regulatory and other approvals, and is expected to close in mid-2012.

Royal Bank of Canada closed at $57.58 Tuesday, a loss of 2.72% on more than twice the average daily volume.

Molson Coors to Acquire Central and Eastern European Brewer StarBev

The Deal:
Molson Coors Brewing Company (NYSE: TAP) announced Tuesday that it has signed a definitive agreement with StarBev L.P., owned by funds advised by CVC Capital Partners Limited and StarBev management, to acquire StarBev for €2.65 billion ($3.54 billion). Headquartered in Amsterdam, The Netherlands, and Prague, Czech Republic, StarBev operates nine breweries in Central and Eastern Europe and generated 2011 sales of approximately €0.7 billion ($1.0 billion) and earnings before interest, taxes, depreciation and amortization of €241 million ($322 million).1 The purchase price represents a multiple of approximately 11x EBITDA.

Molson Coors closed at $43.18 Tuesday, a loss of 5.43% on 6 times the average daily volume.

Dell Acquires Clerity Solutions

The Deal:
Dell announced Tuesday it has acquired Clerity Solutions, a leading global provider of applications modernization and re-hosting solutions and services. Clerity's capabilities will enable Dell Services to help customers reduce the cost of transitioning business-critical applications and data from legacy computing systems and onto more modern architectures, including the cloud.

A Dell spokesperson would not discuss the terms of the purchase.

Dell closed at $16.61 Tuesday, a loss of 0.95% on slightly more than the average daily volume.

CVR Energy Issues Statement Regarding Tender Offer Results

The Offer:
CVR Energy (NYSE: CVI), a majority owner of CVR Partners, LP (NYSE: UAN), a nitrogen fertilizer producer, issued the following statement Tuesday regarding the results of the unsolicited tender offer for $30.00 per share in cash plus a contingent cash payment right by entities controlled by Carl Icahn.

The holders of roughly 55% of CVR stock have agreed to the $30 per share offer, a deal that would give Icahn a 69% stake in the company. However, the deal will be delayed because of a shareholders right plan that the board implemented in January.

"Mr. Icahn acknowledges that he cannot at this time purchase any shares tendered in his offer, and such shares can be withdrawn at any time. The real choice for stockholders will be at our annual meeting where they will decide whether to elect Mr. Icahn's hand-picked nominees in place of our qualified and experienced Board of Directors with their track record of delivering value."

Icahn responded: "What the Board failed to tell shareholders was that the major obstacle standing in the way of our closing the tender offer is the poison pill adopted by the Board. Whose interests are the directors serving by preventing shareholders from receiving their money?!"

CVR Energy closed at $28.80 Tuesday, a gain of 5.88% on almost twice the average daily volume.

Mid-America Apartment Communities Announces Acquisition

The Deal:
Mid-America Apartment Communities (NYSE: MAA) announced today that it has completed the acquisition of Adalay Bay, a 240-unit apartment community located in Chesapeake, Virginia.

The acquisition was funded by a public offering of 1,955,000 shares of common stock earlier in the year.

Mid-America Apartment Communities closed at $67.78 Tuesday, a loss of 0.12% on average volume.

Devry's Becker Acquires Falcon Physician Reviews

The Deal:
Becker Professional Education and a part of DeVry Inc. (NYSE: DV), announced Tuesday the acquisition of Falcon Physician Reviews. The transaction marks Becker's entrance into the growing healthcare professional education market.

Devry closed at $33.91 Tuesday, a loss of 1.65% on 75% of the average daily volume.

Full House Resorts to Acquire the Silver Slipper Casino in Mississippi

The Deal:
Full House Resorts (NYSE: FLL) announced Tuesday that it has entered into definitive agreements with Silver Slipper Casino Venture LLC to acquire all of the outstanding membership interest of the entity operating the Silver Slipper Casino in Hancock County, Mississippi. The purchase price is $70 million, exclusive of estimated cash, net working capital balances, fees and expenses and other adjustments as customary as of the closing date. The agreements are subject to Full House obtaining financing for the purchase and regulatory approvals.

Full House Resorts closed at $3.01 Tuesday, a gain of 5.61% on 3 times the average daily volume.

Arrow Electronics Acquires the Altimate Group

The Deal:
Arrow Electronics, Inc. (NYSE: ARW) announced Tuesday that the company has signed a definitive agreement to acquire the ALTIMATE Group, a subsidiary of DCC plc. ALTIMATE is a European value-added distributor of enterprise and midrange computing products, services, and solutions.

Arrow Electronics closed at $41.55 Tuesday, a loss of 1.17% on average volume.

The Ensign Group Acquires Utah Home Health and Hospice Company

The Deal:
The Ensign Group (NASDAQ: ENSG), announced Tuesday that an Ensign subsidiary has acquired Zion's Way Home Health and Hospice, a well-regarded home health and hospice agency based in St. George, Utah, with branch offices in the cities of Kanab, Utah and Page, Arizona. The acquisition was effective as of April 1, 2012.

Ensign Group closed at $27.03 Tuesday, a loss of 1.71% on light volume.

Grainger Enters Brazil Through Acquisition of AnFreixo, a Votorantim Company

The Deal:
Grainger (NYSE: GWW) announced Tuesday it has acquired 100 percent of the shares of AnFreixo S.A., effective April 2, 2012. With 2011 sales of approximately $37M USD, AnFreixo is a leading broad line distributor of maintenance, repair and operating supplies in Brazil. The company had been a subsidiary in the Votorantim Group, one of the largest industrial conglomerates in Latin America with 2011 revenues in excess of $20B USD. Terms of the deal were not disclosed. Moving forward, the company will operate under the name Grainger.

Grainger closed at $219.48 Tuesday, a gain of 0.59% on 72% of the average daily volume.

Flagstone Enters Definitive Agreement with ANV for the Sale of Flagstone's Lloyd's Operations

The Deal:
Flagstone Reinsurance Holdings (NYSE: FSR) announced Tuesday that it has entered into a definitive agreement with a wholly-owned subsidiary of ANV Holdings BV, under which ANV, with capital support from Ontario Teachers' Pension Plan Board, will acquire the Company's Lloyd's operations for approximately $48 million in cash. As a result of the transaction, Flagstone will also release approximately $162 million of underwriting capital currently supporting its Lloyd's operation.

Flagstone Reinsurance Holdings closed at $7.83 Tuesday, a loss of 0.76% on average volume.

Hearing Carl Icahn to Take Stake in Range Resources

The Rumor:
Carl Icahn is about to take a large stake in Range Resources (NYSE: RRC), according to sources. Range Resources is a frequent takeover name most often mentioned with Royal Dutch Shell (NYSE: RDS.A).

A Range Resources spokesperson was not available for comment.

Range Resources closed at $58.16 Tuesday, a loss of 0.97% on half the average daily volume.

Davenport Says Walter Energy Deal Can Be Done at $109

The Rumor:
A deal for Walter Energy (NYSE: WLT) can be done for $109 per share, according to Davenport analyst Chris Haverland. Walter Energy is a frequent takeover name with potential buyers including Rio Tinto (NYSE: RIO) and Warren Buffett's Berkshire Hathaway (BRK.A).

A spokesperson for Walter Energy said he was aware of the Davenport note, but declined comment other than to say Haverland feels that a takeover makes sense.

Walter Energy closed at $59.35 Tuesday, a loss of 2.29% on 75% of the average daily volume.

Hearing Cobalt Energy Has Been Approached by Exxon Mobil, Royal Dutch Shell

The Rumor:
Cobalt Energy (NYSE: CIE) has been approached by potential buyers, including Exxon Mobil (NYSE: XOM) and Royal Dutch Shell (NYSE: RDS.A), according to sources. The rumored purchase price is $50 to $60. A Cobalt Energy spokesperson was not available for comment.

Cobalt Energy closed at $31.36 Tuesday, a gain of 4.53% on average volume.

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

 

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