Market Overview

Benzinga's M&A Chatter for Tuesday February 5, 2013


The following are the M&A deals, rumors and chatter circulating on Wall Street for Tuesday February 5, 2013:

Virgin Media Confirms Discussions with Liberty Global

The Confirmation:
Virgin Media (NASDAQ: VMED) confirmed Tuesday, that it is in discussions with Liberty Global (NASDAQ: LBTYA), concerning a possible transaction. Any such transaction would be subject to regulatory and other conditions.

Virgin Media closed at $45.61 Tuesday, a gain of almost 18% on 16.5 times average volume.

Dell to Be Acquired by Michael Dell, Silver Lake for $13.65/Share in Cash

The Deal:
Dell (NASDAQ: DELL) announced Tuesday, that it has signed a definitive merger agreement under which Michael Dell, Dell's Founder, Chairman and Chief Executive Officer, in partnership with global technology investment firm Silver Lake, will acquire Dell. Under the terms of the agreement, Dell stockholders will receive $13.65 in cash for each share of Dell common stock they hold, in a transaction valued at approximately $24.4 billion.

The transaction will be financed through a combination of cash and equity contributed by Mr. Dell, cash funded by investment funds affiliated with Silver Lake, cash invested by MSD Capital, L.P., a $2 billion loan from Microsoft (NASDAQ: MSFT), rollover of existing debt, as well as debt financing that has been committed by BofA Merrill Lynch, Barclays, Credit Suisse and RBC Capital Markets, and cash on hand. The transaction is expected to close before the end of the second quarter of Dell's FY2014.

Dell closed at $13.42 Tuesday, a gain of 1% on 9 times average volume.

Hearing Renewed Unconfirmed Takeover Chatter in Molycorp

The Rumor:
Molycorp (NYSE: MCP) was the subject of renewed market chatter on Tuesday.

A spokesperson for Molycorp declined comment on the rumor.

Molycorp closed at $7.53 Tuesday, a gain of 2.5% on average volume.

Protalix BioTherapeutics Confirms Hiring Citigroup to Assist in Exploring Strategic Alternatives

The Confirmation:
Protalix BioTherapeutics (NYSE: PLX), confirmed, in response to a report in Israeli media, that the company has hired Citigroup to assist it in reviewing a broad array of product partnering, technology sharing and other strategic alternatives.

Protalix BioTherapeutics closed at $6.15 Tuesday, a gain of 14% on 39 times average volume.

Charter Communications Shares Surge Higher on Report of Possible Deal

The Rumor:
Charter Communications (NASDAQ: CHTR) shares rose as $83.55 Tuesday, on a report from Deadline that it may be preparing for a deal with Time Warner Cable (NYSE: TWC) or Cox.

A spokesperson for Charter Communications declined comment on the report.

Charter Communications closed at $81.53 Tuesday, a gain of 6% on 2.5 times average volume.

Blackberry Shares Fall on Comments from Lenovo in Response to Dell Deal

The Comments:
Blackberry (NASDAQ: BBRY) shares fell Tuesday, following comments from Lenovo (OTC: LNVGY) that would indicate the company is not pursuing acquisitions. Lenovo stated: "Our strategy is clear, our financial position is healthy and our business is very strong; so we are focused on our products, customers and overall execution rather than distracting financial maneuvers and major strategic shifts. This focus is an advantage for us and a benefit to our customers." The statement came in response to the announcement of the Dell (NASDAQ: DELL) buyout deal.

Lenovo had hinted on January 24, that it might consider a deal for Blackberry (formerly Research in Motion) to boost the company's mobile unit.

Blackberry closed at $16.02 Tuesday, a gain of almost 7% on twice average volume.

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


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