Market Overview

Benzinga's M&A Chatter for Friday January 4, 2013

Benzinga's M&A Chatter for Friday January 4, 2013

The following are the M&A deals, rumors and chatter circulating on Wall Street for Friday January 4, 2013:

Report Cerberus Close to Deal for Supervalu

The Rumor:
Shares of Supervalu (NYSE: SVU) spiked higher Friday, on reports a deal is close with Cerberus Capital, according to Dow Jones. The report indicated that Cerberus would buy parts of the grocery retailer and take a stake in the rest. On December 5, 2012, Bloomberg reported Supervalu was considering selling chains Albertsons and Save-A-Lot to Cerberus.

A Supervalu spokesperson reiterated the company's strategic review process was ongoing and there was active dialogue with several potential buyers.

Supervalu closed at $2.94 Friday, a gain of 13.5% on 4.5 times average volume.

Regeneron Recommends Rejection of Mini-Tender Offer by TRC Capital

The Tender Offer:
Regeneron Pharmaceuticals (NASDAQ: REGN) has been notified of an unsolicited "mini-tender" offer by TRC Capital Corporation to purchase up to 1 million shares, or approximately 1.06%, of the outstanding Regeneron common stock at a price of $161.25 per share. TRC's offer price represents approximately a 4.46% discount to the closing price of Regeneron common stock on December 27, 2012, the last closing price prior to commencement of the offer, and a 10.77% discount to the closing price of Regeneron common stock on January 3, 2013. TRC's offer is subject to numerous conditions, including the availability of financing satisfactory to TRC.

Regeneron does not endorse TRC's offer and recommends that shareholders do not tender their shares in response to the offer because it is a so-called "mini-tender" offer at a price below the current market price for Regeneron shares and is subject to numerous conditions.

Regeneron Pharmaceuticals closed at $181.07 Friday, a gain of $0.36 on lower than average volume.

Clearwire Shareholder Crest Financial Seeks to Block Sprint Deal

The Attempt to Block the Deal:
Clearwire (NASDAQ: CLWR) shareholder Crest Financial announced Friday, it plans to ask the FCC to block the company's acquisition by Sprint (NYSE: S) and also to block Softbank's planned acquisition of 70% of Sprint for $20 billion. Sprint agreed on December 17, 2012 to purchase the remainder of Clearwire it does not already own for $2.97 per share.

Crest Financial owns approximately 8% of Clearwire.

Clearwire closed at $2.88 Friday, flat for the day, on 7 times average volume.

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


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