Market Overview

Benzinga's M&A Chatter for Wednesday October 17, 2012


The following are the M&A deals, rumors and chatter circulating on Wall Street for Wednesday October 17, 2012:

ASML to Acquire Cymer for $2.5B

The Deal:
ASML (NASDA: ASML) and Cymer (NASDAQ: CYMI) announced Wednesday that they have entered into a definitive agreement under which ASML will acquire all outstanding shares of Cymer in a cash-and-stock transaction currently valued at $2.5 billion.

The transaction is expected to close in the first half of 2013 and is subject to customary closing conditions, including review by U.S. and international regulators and approval by Cymer's shareholders.

Cymer closed at $71.45 Wednesday, a gain of 49.38% on 48 times average volume.

WESCO to Acquire EECOL Electric Corporation for $1.16B

The Deal:
WESCO International (NYSE: WCC) announced Wednesday that, through a wholly owned subsidiary, it has entered into a definitive agreement to acquire EECOL Electric Corporation for $1.16 billion.

WESCO will address this transaction Thursday, October 18, at 11 a.m. Eastern Time during the company's third quarter 2012 earnings call.

WESCO International closed at $57.17 Wednesday, a gain of 1.49%, and rose another 5% after-hours.

Cybex International Going Private for $2.55/Share

The Deal:
Cybex International (NASDAQ: CYBI) announced today that its board of directors has authorized the Company to enter into a “going private” merger agreement pursuant to which each of its outstanding shares of common stock - other than shares owned by its largest shareholder, UM Holdings, Ltd., and UM's subsidiaries and shareholders, which include John Aglialoro, Cybex's chairman and CEO, and Joan Carter, a director of the Company – will be converted into $2.55 per share payable in cash. This transaction will be effectuated by means of a merger of a newly-formed, wholly-owned subsidiary of UM into Cybex pursuant to an Agreement and Plan of Merger. Following this merger, the Company will be solely owned by UM, Mr. Aglialoro and Ms. Carter, who currently collectively own approximately 49.5% of the Company's common stock.

The merger price reflects a 89% premium over the closing price of the Company's common stock on October 16, 2012.

Cybex International closed at $1.35 Wednesday, but was bid at $2.22 after-hours.

Sprint to Gain Control of Clearwire without Takeover

The Rumor:
Sprint (NYSE: S) is negotiating with Clearwire (NASDAQ: CLWR) to gain control of the company, without an actual takeover, according to The Wall Street Journal.

Such a deal would give Softbank (OTC: SFTBY) access to Clearwire's broadband spectrum, once their deal with Sprint was completed.

Clearwire closed at $2.26 Wednesday and rose another $0.10 after-hours.

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


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