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Welcome to the Solar Fire Sale issue of M&A Daily
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.
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).
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) and Dell secured approval for their merger from CADE, Brazil's antitrust regulator.
Bank of Tokyo-Mitsubishi
The CEO of Bank of Tokyo-Mitsubishi is looking at buying US regional banks.
The Checkpoint (NYSE:CKP) acquisition by CCL has been granted HSR early termination.
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...
- 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).
Elsewhere on Seeking Alpha
- 3 Ways To Beat This Market (NYSEARCA:SPY)
- Activism At Noble Roman's Could Free Up Some Dough (OTCQB:NROM)
- Alaska-Virgin Deal: A Win-Lose For Delta (DAL, AAL, ALK, VA)
- Western Digital's Misunderstood Merger (WDC, SNDK)
- A Tesla For The Masses... Even In Jersey (TSLA, CBS, TEX)
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.