Vultures Circle Bankrupt SunEdison

| About: SunEdison, Inc. (SUNEQ)

Summary

Bidders are lining up for solar assets.

Virgin America gets $57 per share.

Axiall gets a 17% bump from pursuer.

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Welcome to the Solar Fire Sale issue of M&A Daily

SunEdison

SunEdison (SUNE) is bankrupt, with the formalities to be filed later this month. Scavengers are already picking through its assets. For one example, Adani is seeking to buy SunEdison's Indian solar projects. SUNE's Indian assets include 450 megawatts of generation capacity. Adani may have to compete with SoftBank (OTCPK:SFTBY) and Foxconn (OTC:FXCOF) for the assets in bankruptcy.

Virgin America

Alaska Air (NYSE:ALK) agreed to acquire Virgin America (NASDAQ:VA) in a $4 billion cash deal. VA holders get $57 per share.

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Axiall

Westlake (NYSE:WLK) increased its proposal for Axiall (NYSE:AXLL) to $23.35 per share made up of $14 in cash and 0.1967 WLK. This is a 17% bump.

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Yahoo!

SoftBank is in talks with Yahoo! (NASDAQ:YHOO) regarding a deal.

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An alternative bidder, Time (NYSE:TIME) is looking to partner with private equity for a bid. Two potential partners include KKR (NYSE:KKR) and Blackstone (NYSE:BX).

Ruckus

Brocade (NASDAQ:BRCD) is buying Ruckus (NYSE:RKUS) for $1.2 billion of cash and stock. RKUS's holders get $6.45 of cash and 0.75 BRCD. The target worked with Morgan Stanley (NYSE:MS) on the sale. Brocade has financing commitments from Wells Fargo (NYSE:WFC), Deutsche Bank (NYSE:DB), and SunTrust (NYSE:STI).

Baxalta

Under the fast-track process, the European Union set a May 11 deadline for its review of the Baxalta (BXLT) acquisition by Shire (NASDAQ:SHPG). The $3.09 net arbitrage spread offers a 22% IRR if the deal closes by August.

EMC

EMC (EMC) and Dell secured approval for their merger from CADE, Brazil's antitrust regulator.

Jarden

Newell Rubbermaid (NYSE:NWL) announced the preliminary results of the exchange offers and consent solicitations for certain Jarden (NYSE:JAH) notes.

Fresh Market

The Fresh Market (NASDAQ:TFM) go-shop period for its acquisition by Apollo (NYSE:APO) expired without any other deal proposals.

Bank of Tokyo-Mitsubishi

The CEO of Bank of Tokyo-Mitsubishi is looking at buying US regional banks.

Checkpoint

The Checkpoint (NYSE:CKP) acquisition by CCL has been granted HSR early termination.

Cascade

The preliminary S-4 has been filed for the FormFactor (NASDAQ:FORM) acquisition of Cascade (NASDAQ:CSCD).

Office Depot

Staples (NASDAQ:SPLS) management told the judge in its antitrust case that it is willing to freeze prices for three years in order to get regulatory approval for its acquisition of Office Depot (NYSE:ODP). The net arbitrage spread is $2.25. More to come in future editions of M&A Daily...

Done deal(s).

  • BB&T (NYSE:BBT) completed National Penn (NASDAQ:NPBC) deal.
  • Microchip's (NASDAQ:MCHP) Atmel buy (NASDAQ:ATML) closes today.
  • The Homeinns (NASDAQ:HMIN) acquisition was successfully closed.
  • Sumitomo Mitsui (NYSE:SMFG) bought GE's (NYSE:GE) Japanese leasing unit.
  • Schlumberger (NYSE:SLB) closed its acquisition of Cameron (NYSE:CAM).

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Elsewhere on Seeking Alpha

Disclosure: I am/we are long VA, AXLL, YHOO, BXLT, EMC, ODP, NROM, SNDK, TEX.

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. We invest with a margin of safety by buying securities at discounts to their intrinsic value and unlocking that value through corporate events. To maximize returns for our investors, we reserve the right to make investment decisions regarding any security without notification except where notification is required by law. We manage diversified portfolios with a multi-year time horizon. Positions disclosed in articles may vary in sizing, hedges, and place within the capital structure. Disclosed ideas are related to a specific price, value, and time. If any of these attributes change, then the position might change (and probably will).

Editor's Note: This article covers one or more stocks trading at less than $1 per share and/or with less than a $100 million market cap. Please be aware of the risks associated with these stocks.