Benzinga's M&A Chatter for Tuesday June 26, 2012
The following are the M&A deals, rumors and chatter circulating on Wall Street for Tuesday June 26, 2012:
Capital Bank Increases Offer for Southern Community Financial
On June 25, 2012, Southern Community Financial Corporation (NASDAQ: SCMF) and Capital Bank Financial Corp agreed to amend their previously announced Agreement and Plan of Merger.
The Amendment provides that the consideration to be paid by CBF will consist entirely of cash, in an amount equal to $3.11 per share of Southern Community common stock. Each outstanding option to purchase shares of Southern Community common stock will be vested prior to the Merger and be paid in cash equal to the difference between the exercise price of the option and $3.11.
In addition, and upon consummation of the transaction, Southern Community's shareholders will continue to receive a Contingent Value Right, entitling them to cash proceeds of up to $1.30 per share, based on the credit performance of Southern Community's legacy loan portfolio over the five years following closing.
The obligations of Southern Community and CBF to consummate the merger have been modified to remove certain conditions, including the effectiveness of certain registration statements of CBF.
The transaction continues to be subject to the approval of Southern Community's shareholders, receipt of any required regulatory approvals and other customary closing conditions. It is expected to be consummated in the third quarter of 2012.
Southern Community Financial closed at $3.05 Tuesday, a gain of 14.23% on 36 times average volume.
Five Big Pharma Companies Still in Running for Amylin
Amylin Pharmaceuticals (NASDAQ: AMLN) has five potential buyers still in the running to acquire the San Diego-based diabetes drug maker, according to Reuters sources. The companies rumored to be bidding are Bristol-Myers Squibb (NYSE: BMY), AstraZeneca (NYSE: AZN), Novartis (NYSE: NVS), Sanofi (NYSE: SNY) and Merck (NYSE: MRK).
Spokespersons for Amylin and Novartis declined comment on the report, while the other companies did not respond to requests for comment.
Amylin Pharmaceuticals closed at $27.90 Tuesday, a gain of 1.58% on lower than average volume.
Hearing Renewed Chatter Glu Mobile Receives $7 per Share Bid from Microsoft
A spokesperson for Microsoft declined comment on the renewed chatter. A Glu Mobile spokesperson was not available.
Glu Mobile closed at $5.08 Tuesday, a gain of 5.07% on twice the average daily volume.
Hearing Renewed Chatter in Best Buy
Best Buy (NYSE: BBY) was the subject of renewed takeover chatter on Tuesday. The company was once again rumored to have hired Goldman Sachs as an adviser to explore strategic options. That same rumor appeared last Friday, June 22.
Later in the day the Wall Street Journal reported that Best Buy founder Richard Schulze was exploring a buyout of the company, or he might sell his stake. That report last surfaced on June 7. A spokesperson for Best Buy would not comment on the report.
Best Buy closed at $19.37 Tuesday, a gain of 4.65% on almost twice the average daily volume.