MARKET CURRENTS
real-time news and commentary for investors
MARKET CURRENTS
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Today - Thursday, May 23, 2013
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3:49 PM Getting an go-ahead from the CA Public Utilities Commission, Sprint (S) and SoftBank (SFTBF.PK) announce they've received all necessary state regulatory approvals for their transaction (Softbank's purchase of a majority stake in Sprint). Next up is the FCC and a government panel which reviews foreign investments. DISH has yet to win these state approvals, maybe giving an edge to SoftBank which can promise a speedier and more certain closing. 1 Comment
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1:48 PM BioTime (BTX -0.2%) says its shareholders have overwhelmingly approved the planned acquisition of stem cell-related assets from Geron (GERN). The green light was given at a special meeting of shareholders, with at least 32.5M votes coming in favor from the 34.5M shares represented and voted. Comment!
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1:25 PM Elan's (ELN +3%) board has rejected the sweetened takeover bid from Royalty Pharma, saying it "continues to grossly undervalue" the company, with board chairman Robert Ingram adding that it's "no more than an opportunistic attempt to acquire our company at a substantial discount at our shareholders' expense." It urges shareholders to reject the offer, noting also that it's reducing the acceptance threshold to 50% plus one share from 90%. 1 Comment
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8:45 AM More on Rue21 (RUE): An initial 40-day "go-shop" period process will start today during which the retailer can try to reel in another bid. A low termination fee of ~$10M makes this a feasible option. If Apax Partners lands Rue21 it will have its work cut out for it after the company reported a tough comparable store sales decline of 4.6% for Q1. (PR) Comment!
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Wednesday, May 22, 2013
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7:13 PM Lender Processing Services (LPS) is the subject of acquisition talks with Fidelity National (FNF) and buyout shop Thomas H. Lee, with a price tag of about $2.9B, the WSJ reports. Fidelity National was LPS' parent until a 2008 spinoff; a deal would not only bring the service provider back into FNF's umbrella, but mark the latest of many deals Fidelity's made with Thomas H. Lee. The deal values LPS at about $33/share; it closed Wednesday at $29.11. 3 Comments
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2:19 PM SolarWinds' (SWI -13.9%) is downgraded to Sector Perform at Pacific Crest after yesterday's $120M purchase of N-able Technologies. "The customer base, integration of the acquisition and deal size is incongruous with prior acquisitions," the firm writes, adding SWI is spending half of its cash on an "incremental opportunity that pales in comparison to its existing" market. Comment!
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1:16 PM More on Saks-Neiman Marcus: A combination of the two high-end retailers could help save costs through store closings and would give rival Nordstrom (JWN +0.5%) plenty to think about. Still, striking a deal price could be very tricky with KKR advising Saks (SKS +17%) on one side and Goldman Sachs repping Neiman Marcus on the other. Stay tuned. Comment!
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12:38 PM ZAGG spikes 6.4% amid reports that Logitech (LOGI) is in acquisition talks, RANsquawk notes. 4 Comments
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11:38 AM Fusion-io (FIO +0.4%) is the subject of renewed M&A speculation, as Bloomberg points to the record low in FIO's price-sales ratio while prospects remain intact, with sales projected to more than double through 2015 as more data centers use FIO’s flash-memory technology. "Any large hardware provider who has storage solutions could find value in them," an analyst says, particularly after the recent break in valuation. Comment!
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9:28 AM Clearwire (CLWR) says it board of directors recommends shareholders approve the Sprint (S) offer to buy the company for $3.40 per share. A voting date is set for May 31. 6 Comments
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8:23 AM More on the Multiband (MBND) acquisition at $3.25/share: Congrats to SA Pro's Inefficient Market who - less than 24 hours ago and at a price of about $2.30 - told readers he was buying the stock "hand over fist." "In my opinion, Multiband's MDU unit alone is worth more than the entire company's current enterprise value of $82M." Comment!
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8:15 AM Goodman Networks plans to acquire Multiband (MBND) for $3.25 per share in a deal valued at $116M. Multiband's board of directors say they evaluated several options for the company before agreeing to the offer. Under the terms of the arrangement, Multiband can keep soliciting bids from other parties for 45 days. Comment!
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Tuesday, May 21, 2013
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6:38 PM SolarWinds (SWI) attempts to move downmarket and obtain a stronger cloud presence by striking a deal to acquire private N-able for $120M in cash. Whereas SolarWinds' IT management offerings are more focused on enterprises (it has been gaining share here against the likes of CA, BMC, H-P, and IBM), N-able sells cloud-based IT management software to service providers, who in turn use them to offer IT management services to SMBs. (PR) Comment!
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6:27 PM France Telecom (FTE) will invest up to €50M ($64M) in video site Dailymotion and once more begin looking for a partner this fall, says Orange CEO Stephane Richard. With the French government (27% stake) having scuttled the Yahoo deal, FTE has reportedly been fielding Dailymotion bids from local tech/media players. 1 Comment
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4:13 PM Saks (SKS +11.1%) has hired Goldman to explore strategic alternatives, "including a possible sale of the company," the NY Post reports. P-E firms, including KKR and Leonard Green, are seen as likely bidders. Shares +15.8% AH, adding to today's big post-earnings gains. 2 Comments
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3:52 PM Clearwire (CLWR +4%) reschedules its special shareholder meeting to May 31, so as to give investors time to weigh Sprint's (S) new $3.40/share offer. Crest Financial says it still isn't satisfied, arguing Clearwire's spectrum deserves a higher price tag. Shares are currently at $3.39, a penny below the offer price. 3 Comments
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12:11 PM Bernstein analyst Aaron Gal says Mylan (MYL -0.4%) could still bid $22/share for Warner Chilcott (WCRX +2.2%) as the latter's "willingness" to accept an all-share deal from Actavis (ACT +0.6%) might bring others to the table. Comment!
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11:18 AM Food delivery websites Seamless and Grubhub will merge to create a company that could take the niche industry to the next level. Though online food ordering sites are a hodge-podge of various options, the Seamless-Grubhub combination could lead to an expansive national rollout and a dominant industry position in the space. Should Yelp (YELP +1.4%) or Open Table (OPEN +2.7%) be worried about the threat of expanded services from the new company? Comment!
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9:09 AM Sprint (S) raises its offer for Clearwire (CLWR) to $3.40/share ahead of today's shareholder vote on a $2.97/share offer, which was widely expected to be shot down. The revised offer, which trumps Dish's (DISH) $3.30/share bid and has been sent to Clearwire's board for review, is said to have the support of Comcast, Intel, and Bright House, who collectively own 26% of Clearwire shares not held by Sprint. Nonetheless, Clearwire +6.1% to $3.46, above the offer price. Sprint +1.1%. (previous) 6 Comments
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