Market Overview

Benzinga's M&A Chatter for Wednesday April 25, 2012


The following are the M&A deals, rumors and chatter circulating on Wall Street for Wednesday April 25, 2012:

Amgen to Acquire Mustafa Nevzat

The Deal:
Amgen (NASDAQ: AMGN) and Mustafa Nevzat Pharmaceuticals announced Wednesday an agreement under which Amgen will acquire 95.6 percent of shares in MN, a privately held Turkish pharmaceutical company, for an amount that values MN at US $700 million. The all-cash transaction will significantly expand Amgen's presence in Turkey and the surrounding region, which are large, fast-growing, priority markets for Amgen.

The transaction has been approved by the Board of Directors of each company. Completion of the transaction is subject to customary closing conditions, including regulatory approvals.

Amgen closed at $70.19 Wednesday, a gain 2.27% on slightly more than the average daily volume.

Watson to Acquire Actavis Group for EUR4.25B

Watson Pharmaceuticals (NYSE: WPI) and Actavis Group jointly announced Wednesday that Watson has entered into a definitive agreement to acquire privately held Actavis for an upfront payment of EUR4.25 billion. As a result of this acquisition, Watson will become the third largest global generics company with 2012 anticipated pro forma revenue of approximately $8 billion.

Actavis, which as a stand-alone company was positioned for strong growth, has a commercial presence in more than 40 countries and markets more than 1,000 products globally.

Actavis has approximately 300 projects in its development pipeline and manufactured more than 22 billion pharmaceutical doses in 2011. Actavis has more than 10,000 employees worldwide and had 2011 revenues of approximately $2.5 billion.

"The acquisition of Actavis will create the 3rd largest global generics company, substantially completing Watson's expansion as a leading global generics company. Actavis dramatically enhances our commercial position on a global basis and brings complementary products and capabilities in the United States," said Paul M. Bisaro, President and CEO of Watson.

Watson Pharmaceuticals closed at $69.69 Wednesday, but traded at $74.00 after-hours.

Siemens Acquires FCE Furnace Company

The Deal:
Siemens (NYSE: SI) announced Wednesday it has signed and closed a purchase agreement to acquire 100 percent of the shares of FCE, LLC, a furnace company serving the metals industry, headquartered in Huntingdon Valley, Pa. Financial details of the transaction will not be disclosed.

"The acquisition of FCE will enable Siemens to expand and strengthen its portfolio in furnace technologies, which is vital to Siemens' growth strategy," said Aashish Gupta, vice president, Metals Technologies business unit, Siemens Industry, Inc. "FCE is known for its superior expertise in engineering customized furnace technology solutions as well as for its dedicated employees' extensive process and application know-how. Our combined portfolio will enable Siemens to ensure the seamless performance of the entire metals facility while providing our customers with the products, solutions and services to be successful."

Siemens closed at $92.86 Wednesday, a gain of 0.78% on slightly less than average volume.

Hearing Bayer Rumored to Be Buying Onyx Pharmaceuticals

The Rumor:
Bayer is rumored to be buying Onyx Pharmaceuticals (NASDAQ: ONXX), according to sources. The rumor came on reports that Bayer is looking to make a major acquisition. The two companies already have a working relationship regarding their joint efforts on regorafenib.

A spokesperson for Bayer would not comment on the rumor. An Onyx spokesperson was not available for comment.

Onyx Pharmaceuticals closed at $47.33 Wednesday, a gain of 8.97% on 7 times the average daily volume.

Amarin and Forest Labs Possible Takeover Targets for AstraZeneca

The Rumor:
Amarin (NASDAQ: AMRN) and Forest Labs (NYSE: FRX) are potential takeover targets for AstraZeneca (NYSE: AZN), according to Bloomberg Businessweek. The article cites AZN's need to restock its pipeline and its recent purchase of Ardea Biosciences (NASDAQ: RDEA).

Spokespersons for the companies were not available for comment.

Amarin closed at $9.98 Wednesday, a gain of 2.36% on average volume.

Forest Labs closed at $34.05 Wednesday, a gain of 1.52% on slightly more than average volume.

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


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