Benzinga's M&A Chatter for Monday December 10, 2012

The following are the M&A deals, rumors and chatter circulating on Wall Street for Monday December 10, 2012:

Hearing Unconfirmed Chatter of Icahn Stake in Hewlett-Pakcard

The Rumor:
Carl Icahn is rumored to be taking a large stake in Hewlett-Packard (NYSE: HPQ), according to unconfirmed sources.

A spokesperson for Hewlett-Packard officially declined comment on the rumor.

Hewlett-Packard closed at $14.16 Monday, a gain of 2.5% on 1.5 times average volume.

Hearing Renewed Chatter Tata Raising Bid for Orient-Express Hotels

The Rumor:
Tata’s Indian Hotels is preparing to raise its bid for Orient-Express Hotels (NYSE: OEH), according to Indian media reports. Indian Hotels offered $12.63 per share on October 18. The offer was rejected by the OEH board on November 8.

An Orient-Express spokesperson told Benzinga there was no update on the Indian Hotels offer.

Orient-Express Hotels closed at $11.90 Monday, a loss of 2% on higher than average volume.

Hearing Unconfirmed Market Chatter of ArcelorMittal Stake in Freeport-McMoRan

The Rumor:
ArcelorMittal (NYSE: MT) is reportedly taking a large stake in Freeport-McMoRan (NYSE: FCX), according to unconfirmed market sources.

A spokesperson for Freeport-McMoRan declined comment on the rumor. An ArcelorMittal spokesperson was not available for comment.

Freeport-McMoRan closed at $32.04 Monday, a gain of 1% on almost twice average volume.

Delta Close to Buying Virgin Stake for $300M to $500M

The Rumor:
Delta Air Lines (NYSE: DAL) is reportedly close to a deal to acquire a 49% stake in Virgin Atlantic currently owned by Singapore Airlines (OTC: SINGF), according to Bloomberg. That deal was first reported on December 2.

Delta Air Lines closed at $10.14 Monday, a gain of $0.03 on average volume.

AIG to Sell Up to 90 Percent of International Lease Finance Corporation for Up to $5.28B

The Deal:
American International Group (NYSE: AIG) and an investor group led by Mr. Weng Xianding, the Chairman of New China Trust Co. Ltd., announced Monday that they have entered into an agreement under which AIG will sell up to a 90% stake in International Lease Finance Corporation (ILFC), a non-core asset, to the investor group in a transaction that values ILFC at approximately US$5.28 billion.

The investor group comprised of New China Trust Co. Ltd., China Aviation Industrial Fund and P3 Investments Ltd. has agreed to acquire 80.1% of ILFC for approximately US$4.23 billion, with an option to acquire an additional 9.9% stake. Upon receipt of required Chinese regulatory approvals and exercise of the option, the investor group is expected to be expanded to include New China Life Insurance Co. Ltd. and an investment arm of ICBC International.

AIG closed at $33.36 Monday, a loss of 2% on lower than average volume.

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