Welcome to the Yogurt Eating issue of M&A Daily
Chobani rejected a takeover offer from PepsiCo (NYSE:PEP). The company is advised by Goldman Sachs (NYSE:GS) on a potential sale. Pepsi wanted control, while the Greek yogurt maker wanted to maintain control and sell only a minority stake. Coca-Cola (NYSE:KO) also wants to invest in the company, but has been unable to reach terms. Another suiter is WhiteWave (NYSE:WWAV).
An issue for potential Greek yogurt suitors: lesbians. They appear in a Chobani ad, which has come under criticism. Too late. The yogurt-eating lesbian will be a part of the ad culture while the critics will become less and less common. The critical campaign by the professionally offended starts by saying that,
Chobani should be ashamed…
They won't be.
Lake Shore Gold
Apollo Global (NYSE:APO) and a consortium of investors agreed to buy Apollo Education (NASDAQ:APOL), no relation, in a $1.1 billion cash deal. APOL holders get $9.50 per share. The deal will probably close by September. If it successfully closes by then, the $0.84 net arbitrage spread will offer a 17% annual return.
The definitive proxy was filed for the Western Digital (NYSE:WDC) acquisition of SanDisk (SNDK).
Solera (NYSE:SLH) launched a $1.9 billion offering of senior unsecured notes for the acquisition by Vista Equity. The $1.44 net arbitrage spread offers a 20% annual return if the deal closes next month.
Outerwall (NASDAQ:OUTR) is being targeted by activist investor Engaged, which owns 14% of the company. Engaged would like to see better control over costs, a higher dividend, and the consideration of a sale. Board nominations can be made starting March 12 and are due by April 12.
KLA-Tencor (NASDAQ:KLAC) entered into a memorandum of understanding with shareholders regarding its acquisition by Lam (NASDAQ:LRCX). The $1.56 net arbitrage spread offers a 6% annual return if the deal closes by July.
The New York Public Service Commission filed comments expressing concern with the Altice (OTCPK:ATCEY) acquisition of Cablevision (NYSE:CVC). The $3.29 net arbitrage spread offers a 25% annual return if the deal closes by July.
Elsewhere on Seeking Alpha
- Investing With An Edge: First Trust Dividend And Income (NYSE:FAV)
- Wal-Mart-Amazon Retail Arbitrage (WMT, AMZN, EMC, VMW)
- GE Flips Asset Manager To State Street (NYSE:GE)
- China Leading The Asian M&A Growth Wave (NYSE:SYT)
- To RONA's Shareholders: Take The Money (LOW, OTC:RONAF)
Disclosure: I am/we are long TE, SNDK, SLH, CVC, YHOO, FAV, EMC, SYT.
I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Additional disclosure: Chris DeMuth Jr and Andrew Walker are portfolio managers at Rangeley Capital. Rangeley invests with a margin of safety by buying securities at deep discounts to their intrinsic value and unlocking that value through corporate events. In order to maximize total returns for our investors, we reserve the right to make investment decisions regarding any security without further notification except where such notification is required by law.
Editor's Note: This article discusses one or more securities that do not trade on a major U.S. exchange. Please be aware of the risks associated with these stocks.