Seeking Alpha
  • Today - Tuesday, September 30, 2014

  • 2:54 PM
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  • 1:54 PM
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  • 10:34 AM
    • The positive market reaction following Encana's deal for Athlon Energy and other recent transactions may put pressure on inventory short majors and other large-cap companies to pursue M&A activity to increase their quality inventory in the U.S. onshore market, according to a UBS report.
    • UBS lists six top potential targets, some of which already are swirling in the rumor mill, including Pioneer Natural Resources (NYSE:PXD), with its own fracking fleet and huge Midland Basin play making it a very attractive but expensive target.
    • The firm's other five top M&A candidates: COG, CXO, OAS, RRC, WLL.
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  • 9:56 AM
    • UnitedHealth Group (UNH) acquires MedSynergies, a manager of physician practices, for an undisclosed sum. The deal adds ~9,300 doctors to its Optum network.
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  • 8:45 AM
    • Johnson & Johnson (NYSE:JNJ) acquires privately-held clinical stage biopharmaceutical firm Alios BioPharma for $1.75B in cash.
    • Alios develops therapies for viral diseases. Its lead product is AL-8176, an orally administered antiviral therapy in Phase 2 clinicals for the treatment of infants with respiratory syncytial virus (RSV).
    • Janssen Pharmaceuticals R&D Chief William N Hait, M.D., Ph.D. says, "We are excited that this acquisition will enable us to explore treatment options for a number of viral infections, including RSV, the last of the major pediatric diseases with no available preventive therapy."
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  • 6:57 AM
    • A new report has surfaced from The Hollywood Reporter stating that Japan's SoftBank (OTCPK:SFTBY) is in talks to acquire a minority stake in privately held movie studio Legendary Pictures. The publication says the talks have been going on for weeks.
    • The news comes following reports that SoftBank's discussions to buy Dreamworks Animation have cooled.
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  • Monday, September 29, 2014

  • 6:16 PM
    • According to the reported deal terms, AMC (NASDAQ:AMCX) would own almost 50% of BBC America, while government-controlled BBC would retain the rest.
    • AMC would be able to add BBC America to the stable of TV networks it sells to pay-TV networks, thereby giving it more bargaining power. Meanwhile, BBC America would benefit from AMC's programming and ad resources.
    • BBC America currently reaches ~80M U.S. households. Reports of a deal first emerged in July.
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  • 5:47 PM
    • The WSJ says it "wasn't immediately clear" what led buyout talks between SoftBank (OTCPK:SFTBF) and Dreamworks (NASDAQ:DWA) to cool. The paper now reports the companies "could ultimately strike a deal other than an outright takeover ... for instance some kind of content partnership."
    • DWA -7.4% AH to $26.10. Shares rose 26% in regular trading on reports of acquisition talks featuring a $32/share offer.
  • 4:31 PM
    • Under the terms, Simplicity (NASDAQ:SMPL) owners will receive one share of HomeStreet (NASDAQ:HMST) stock for each share of Simplicity they own, subject to adjustment should HomeStreet rise above $20 or fall below $15. HomeStreet today closed at $17.73; Simplicity at $16.50.
    • The combined company will have about $4.1B in assets, total deposits of $3.1B, and loans of $3.1B.
    • A conference call is set for 1 PM ET tomorrow.
    • Source: Press Release
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  • 4:27 PM
    • AMAG Pharmaceuticals (AMAG +28.2%) acquires privately-held Missouri-based Lumara Health for $675M in a cash-and-stock transaction. The deal consists of $600M in cash, $75M in stock and up to $350M in sales-related milestones.
    • Lumara focuses on women's health. It's lead product is the Orphan Drug Makena (hydroxyprogesterone caproate injection) indicated to reduce the risk of preterm birth in women who are pregnant with one baby and who have delivered one preterm baby spontaneously in the past.
    • Also, Lumara divests its portfolio of OTC products to Perrigo for $82M.
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  • 3:58 PM
    • Bloomberg reports Computer Sciences (CSC +5.9%) has contacted Blackstone, Bain, and other P-E firms about an LBO. Shares have spiked higher.
    • Talks are said to be at an early stage, with CEO Mike Lawrie reportedly trying to convince would-be suitors CSC's turnaround is half-finished. One source says P-E firms like the IT services firm's multiples, but have concerns about its cash flow and slower-growing units.
    • With a current market cap of $8.7B, CSC would be a big fish to swallow. But the company's low valuation (shares go for 0.7x FY14 sales) and fairly predictable revenue streams could boost P-E interest.
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  • 3:57 PM
    • Perrigo Co. (PRGO -0.6%) acquires a portfolio of women's healthcare products from privately-held Missouri-based Lumara Health for $82M in cash. The products generated more than $15M in top-line sales for the 12-month period ended March 31, 2014.
    • Separately, Perrigo transfers a portfolio of preclinical research assets to Imago Pharmaceuticals for an undisclosed upfront payment, development-related milestones and royalties on future sales. The portfolio includes IP, drug candidates and a 500k compound CNS-focused small molecule library. It acquired the assets when it bought Elan Corp. in December 2013.
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  • 2:06 PM
    • A source tells Bloomberg Iron Mountain (IRM +6.2%) may buy Recall Holdings for $2B-$2.5B. That would represent a hefty premium to Recall's current $1.37B market cap.
    • Bloomberg also reports "nothing has been decided and the talks may still fall apart." Wooden pallet maker Brambles reportedly drew bids in the $2B range when it put Recall on the block in 2012; it ultimately decided to spin off the business.
    • Earlier: Iron Mountain reportedly looking to buy Recall
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  • 1:58 PM
    • Sources tell dealReporter Lumos Networks (LMOS +5.4%) has begun a sale process.
    • The fiber network owner's shares have spiked higher in response. They remain well below a 52-week high of $25.10. Larger peer TW Telecom agreed to merge with Level 3 earlier this year.
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  • 1:44 PM
    • Australia's Recall Holdings, publicly traded in Sydney, is a major rival for Iron Mountain's (IRM +5.1%) document management/data protection business. The company closed overnight trading with a $1.38B market cap.
    • Bloomberg reports Iron Mountain is working with Evercore to buy Recall. Shares have popped in response.
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  • 1:27 PM
    • JAB Holding Company acquires Einstein Noah Restaurant Group (BAGL +50.4%) for $20.25 per share.
    • The $374M deal has the backing of Greenlight Capital which owns the largest block of shares of the bagel chains operator.
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  • 12:59 PM
    • Esterline (ESL +0.6%) expands its presence in Europe after agreeing to acquire Belgian-based Barco's (OTC:BCNAF) defense and aerospace business for €150M ($190M).
    • The business makes displays for air traffic control, for cockpits and for flight simulators as well as rugged work stations and screens the military can use in hostile environments.
    • Barco had said for at least a year that the business was not core and could be sold at the right price.
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  • 12:26 PM
    • Encana’s (ECA +2.3%) takeover of Athlon Energy (ATHL +24.6%) is good news for Diamondback Energy (FANG +2.3%) and Energen (EGN +2.2%), according to analysts at Sterne Agee.
    • The acquisition implies a value of $98/share for FANG, Sterne says, based on FANG's 85K net acre leasehold position, estimated 19.8K boe/day of Q3 production, $585M of assumed debt, and a $1.7B market value for the Viper Energy Partners (NASDAQ:VNOM) units it owns.
    • The firm sees even more upside for EGN, as ECA’s price implies a value of $102/share for EGN, based on 180K net acres across both sides of the Permian Basin, 48K boe/day of Q3 Permian Basin production, 132M cfe/day of Q3 San Juan Basin, and $835M of pro forma net debt as of Sept. 30.
    • Permian producers Laredo Petroleum (LPI +5%), Parsley Energy (PE +5%) and RSP Permian (RSPP +4.8%) also are higher following the acquisition news.
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  • 8:56 AM
    • EnLink Midstream Partners (NYSE:ENLK) and EnLink Midstream (NYSE:ENLC) agree to acquire Gulf Coast natural gas pipeline assets including the Bridgeline system in southern Louisiana from Chevron (NYSE:CVX) for $235M.
    • The assets include ~1,400 miles of natural gas pipelines spanning from Beaumont, Tex., to the Mississippi River corridor and ~11B cf of working natural gas storage capacity in southern Louisiana.
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  • 8:02 AM
    • Seaboard (NYSEMKT:SEB) sells off a 50% stake in its Daily's Premium Meats business to Triumph Foods for $72.5M
    • The company estimates it will earn a pretax gain of approximately $55M from the transaction.
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