Benzinga's M&A Chatter for Thursday May 31, 2012
The following are the M&A deals, rumors and chatter circulating on Wall Street for Thursday May 31, 2012:
Talbots to be Acquired by Sycamore Partners
Talbots (NYSE: TLB) and Sycamore Partners announced Thursday that they have entered into a definitive agreement pursuant to which an affiliate of Sycamore Partners will acquire all the outstanding common stock of the Company for $2.75 per share in cash. The transaction is valued at approximately $369 million, including net debt. The transaction is currently expected to close in the third quarter of this year.
The announcement follows a comprehensive review undertaken by the Talbots Board to maximize stockholder value. Under the terms of the agreement, which has been approved by the Company's Board of Directors, Talbots stockholders will receive $2.75 in cash for each outstanding share of Talbots common stock they own. The purchase price represents a 113% premium to the closing price on May 30, 2012 and a 76% premium to the closing price on December 6, 2011, the closing price prior to the public disclosure of Sycamore's initial proposal to acquire the Company.
Talbots closed at $2.44 on Thursday, a gain of 89.15% on 38 times the average daily volume.
Forest Labs Considered Good Takeover Target
Forest Labs (NYSE: FRX) is considered a good takeover target, according to a note released Thursday by Leerink. AstraZeneca has been frequently mentioned as a potential buyer for Forest Labs.
Spokespersons for Forest Labs and AstraZeneca were not available for comment.
Forest Labs closed at $35.00 Thursday, a gain of 3.98% on 2.5 times the average daily volume.
Hearing Private Equity Interest in Polycom
Polycom (NASDAQ: PLCM) is being reported to be a target of private equity, according to sources.
A spokesperson for Polycom was not available for comment.
Polycom closed at $11.44 on Thursday, a loss of 1.21% on 1.5 times the average daily volume.
Hearing Dollar Thrifty Cancels Meeting
Dollar Thrifty (NYSE: DTG) was rumored to have cancelled out of a conference or management meeting today, sending shares of that company and its potential merger partner Hertz (NYSE: HTZ) sharply higher. Discussions between the two companies have been ongoing for several years and CNBC reported today that a deal is not imminent.
In May 2011, Hertz had offered $57.60 in cash plus .8546 HTZ shares for each share of Dollar Thrifty.
Spokespersons for Dollar Thrifty and Hertz were not available for comment.
Dollar Thrifty closed at $81.58 on Thursday, a gain of 1.98% on 4 times the average daily volume.
Hertz closed at $13.61 on Thursday, a gain of 1.95% on 3 times the average daily volume.