Market Overview

Benzinga's M&A Chatter for Thursday October 25, 2012


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

McKesson to Purchase PSS World Medical for $29.00/Share Cash

The Deal:
McKesson Corporation (NYSE: MCK) and PSS World Medical (NASDAQ: PSSI) announced Thursday that the two companies have signed a definitive agreement under which McKesson will acquire all outstanding shares of PSS World Medical for $29.00 per share in cash. PSS World Medical and McKesson's Medical Surgical business will combine to form a leading provider of medical supplies, services and technology to physician and extended care customers.

The total transaction, including the assumption of PSS World Medical's outstanding debt, is valued at approximately $2.1 billion.

PSS World Medical closed at $28.57 Thursday, a gain of 32.27% on 60 times average volume.

Hearing Orient-Express to Announce New CEO Next Week

The Rumor:
Orient-Express Hotels (NYSE: OEH) will likely name a new CEO next week, according to a report from FT. Philip R. Mengel was named Interim CEO on May 15, 2012.

Orient-Express received a takeover bid of $12.63/Share on October from Tata's Indian Hotels on October 18. The company has acknowledged receipt of the offer, but has not yet issued a response.

A spokesperson for Orient-Hotels told Benzinga the company had made no statement concerning a CEO appointment.

Orient-Express Hotels closed at $11.40 Thursday, a loss of 8.51% on 5 times average volume.

Gardner Denver Confirms Goldman Sachs Hiring to Explore Strategic Alternatives

The Exploration:
Gardner Denver (NYSE: GDI) announced Thursday that its Board of Directors, working together with its management team and the Company's financial advisor, Goldman, Sachs, are exploring strategic alternatives, which could include a possible sale or merger.

The Company stated that no decision has been made and that there can be no assurance that the Board's exploration of strategic alternatives will result in any transaction being entered into or consummated.

Gardner Denver closed at $66.00 Thursday, a gain of 20.55% on 6.5 times average volume.

KKR Considers Bid for Supervalu's Save-A-Lot Brand

The Rumor:
KKR (NYSE: KKR) is reported to be considering a possible bid for Supervalu's (NYSE: SVU) for Save-A-Lot Brand, according to the Wall Street Journal. Cerberus Capital Management is reportedly preparing a bid for the full company, but may sell off some of the assets to interested buyers.

Supervalu closed at $3.03 Thursday, a gain of 3.77% on 1.5 times average volume.

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


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