Market Overview

Benzinga's M&A Chatter for Thursday April 5, 2012


The following are the M&A deals, rumors and chatter circulating on Wall Street for Thursday April 5, 2012:

Dell to Acquire Make Technologies

The Deal:
Dell (NASDAQ: DELL) announced Thursday it has signed a definitive agreement to acquire Make Technologies, a leading global provider of application modernization software and services that reduce the cost, risk and time required to re-engineer applications.

Companies are modernizing their applications portfolios so they can reduce legacy infrastructure operating costs. These applications run most effectively on open, standardized platforms including the cloud. With the acquisition of Make Technologies, Clerity Solutions and existing Dell Services capabilities, Dell provides end-to-end solutions from hardware through application migration services.

Dell closed at $16.49 Thursday, a gain of 0.18% on 64% of the average daily volume.

Spectrum Pharmaceuticals to Acquire Allos Therapeutics

The Deal:
Spectrum Pharmaceuticals (NASDAQ: SPPI) and Allos Therapeutics (NASDAQ: ALTH) announced Thursday that they have signed a definitive agreement under which Spectrum will acquire all of the outstanding shares of Allos for $1.82 per share in cash plus one Contingent Value Right. This CVR entitles Allos stockholders to an additional payment of $0.11 per share in cash if certain European regulatory approval and commercialization milestones for FOLOTYN are achieved. The upfront portion of the transaction is valued at up to $206 million on a fully-diluted basis, and $108 million net of Allos' cash balance at the end of 2011. The acquisition is expected to be accretive to Spectrum on a cash basis in the fourth quarter of 2012.

Under the agreement, Spectrum will commence a tender offer to purchase all of the outstanding shares of Allos for $1.82 in cash plus one CVR. The CVR will entitle each Allos stockholder to an additional payment of $0.11 per share in cash if FOLOTYN obtains conditional approval for the treatment of patients with relapsed/refractory PTCL in Europe in 2012 and achieves its first reimbursable commercial sale in at least three major EU markets by December 31, 2013. The CVR will not be publicly traded.

The announcement of the Allos acquisition came after Spectrum announced the Phase 3 clinical trials for apaziquone did not meet their primary endpoint.

Spectrum Pharmaceuticals closed at $11.06 Thursday, a loss of 9.42% on 5 times the average daily volume.

Allos Therapeutics closed at $1.82 Thursday, a gain of 26.92% on 48 times the average daily volume.

DaVita Acquires Majority Stake in Lehbi Care, Saudi Arabia

The Deal:
DaVita (NYSE: DVA) announced Thursday it has acquired a controlling interest in Lehbi Care, a leading Riyadh-based kidney care company. DaVita will actively manage the three Lehbi clinics in operation in Riyadh and is planning to expand home modality options and build a vascular access center.

DaVita closed at $86.99 Thursday, a gain of 0.10% on slightly more than average volume.

Hearing Peabody Energy Gets Bid from Asian Company

The Rumor:
Peabody Energy (NYSE: BTU) has received a bid from an Asian competitor, according to sources. Peabody was mentioned recently as a takeover target of Warren Buffett's Berkshire Hathaway (NYSE: BRK.B).

A Peabody Energy spokesperson was not available for comment.

Peabody Energy closed at $28.27 Thursday, a loss of 0.56% on 30% more than average volume.

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


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