Market Overview

Benzinga's M&A Chatter for Wednesday October 24, 2012


The following are the M&A deals, rumors and chatter circulating on Wall Street for Wednesday October 24, 2012:

Yelp Acquires Qype for $50M

The Deal:
Yelp (NYSE: YELP) announced Wednesday it has acquired Qype, Europe's largest local reviews site. Qype was acquired to accelerate Yelp's international expansion, bringing more than two million reviews and 15 million unique visitors per month across 13 countries. Under the terms of the acquisition agreement, Yelp acquired all of Qype's shares, for approximately €18.6 million and 970,000 shares of Yelp's Class A common stock, for a total purchase price of approximately $50 million USD. Qype is headquartered in Germany, with operations also in the United Kingdom. The acquisition will be recorded in Yelp's fourth quarter and 2012 year-end financial statements.

Yelp closed at $25.77 Wednesday, a gain of 7.38% on higher than average volume.

PolyOne to Acquire Spartech for $251M

The Deal:
PolyOne Corporation (NYSE: POL) and Spartech (NYSE: SEH) announced Wednesday they have entered into a definitive agreement, under which PolyOne will acquire Spartech. Under the terms of the agreement, Spartech stockholders will receive $2.67 in cash and 0.3167 shares of PolyOne common stock for each share of Spartech common stock. Based on the closing price of PolyOne shares on Tuesday, October 23, Spartech stockholders will receive cash and stock valued at $8.00 per Spartech common share, representing a total transaction value of approximately $393 million, including the assumption of Spartech's net debt of $142 million.

Spartech closed at $8.38 Wednesday, a gain of 63.04% on 227 times average volume.

Ocwen, Walter Investment Management Corp. Win ResCap's Mortgage Servicing and Origination Platform with $3B Bid

The Auction:
Ocwen Loan Servicing, LLC, the mortgage servicing arm of Ocwen Financial Corporation (NYSE: OCN), and Walter Investment Management Corp. (NYSE: WAC) were jointly awarded the highest and best bid for the mortgage servicing and origination platform assets of Residential Capital, LLC on Wednesday, in a Bankruptcy Court sponsored auction. The bid with a purchase price of $3 billion is subject to definitive documentation and Bankruptcy Court approval.

Ocwen Financial closed at $37.75 Wednesday, a gain of 4.28%. Walter Investment Management closed at $43.32, a gain of 6.46%. Altisource Portfolio Solutions (NASDAQ: ASPS) rose 13.27%, closing at $124.33. Ocwen is Altisource's largest customer.

Hearing Cliffs Natural Resources Hired Deutsche Bank as an Adviser to Handle Potential Bids

The Rumor:
Cliffs Natural Resources (NYSE: CLF) is rumored to have hired Deutsche Bank as an adviser to handle potential bids, according to sources. In April, Anglo American (OTC: AAUKY) was rumored to be offering $95.75 per share to acquire Cliffs.

A spokesperson for Cliffs was not available for comment.

Cliffs Natural Resources closed at $42.69 Wednesday, a loss of 1.97% on average volume.

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


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