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Benzinga’s M&A Chatter for Thursday August 14, 2014

Courtesy of Benzinga.

The following are the M&A deals, rumors and chatter circulating on Wall Street for Thursday August 14, 2014:

Heartland Payment Systems Acquires Leaf

The Deal:
Heartland Payment Systems (NYSE: HPY) announced Thursday, that it acquired Leaf, which created a POS tablet specifically designed for commerce. Terms of the deal were not disclosed.

Heartland Payment Systems shares closed Thursday at $47.17, a gain of $0.01%.

OmniVision Receives Non Binding Proposal for $29/Share

The Offer:
OmniVision Technologies (NASDAQ: OVTI) announced Thursday, that its board of directors has received a non-binding proposal in a letter dated August 12, 2014 from Hua Capital Management, indicating that a group of investors led by HCM proposes to acquire all of the outstanding shares of common stock of OmniVision for $29.00 per share in cash. HCM is headed by Dr. Xisheng Zhang of Hua Capital Management, whose previous company, Accelicon was acquired by Agilent in 2011.

OmniVision’s board of directors is reviewing HCM’s proposal.

OmniVision Technologies closed at $28.29 Thursday, a gain of 15%.

Report Shutterfly Receiving Competing Bids from PE Firms

Shares of Shutterfly (NASDAQ: SFLY) surged higher Thursday, on a report from The Deal that the company is receiving competing bids from private equity companies. The deal reportedly will close this year.

The Rumor:Bloomberg reported on July 2, that Shutterfly had hired Qatalyst to handle a potential sale. Deal Reporter said on July 30, that Yahoo (NASDAQ: YHOO), Apple (NASDAQ: AAPL), Microsoft (NASDAQ: MSFT) and Hewlett-Packard (NYSE: HPQ) were looking at Shutterfly as a potential takeover target.

Shutterfly closed Thursday at $49.67, a gain of more than 4%.

Coca-Cola Acquires 16.7% Equity Stake in Monster Beverage for $2.15B

The Deal:
The Coca-Cola Company (NYSE: KO) and Monster Beverage (NASDAQ: MNST) announced Thursday that they have entered into agreements for a long-term strategic partnership, under which Coca-Cola will acquire an approximately 16.7% stake in Monster for $2.15 billion. Coke will have two directors on Monster’s Board and will become Monster’s preferred distribution partner globally.

The deal is expected to close in late 2014 or early 2015.

Benzinga reported back in 2012, that Coca-Cola might be planning a takeover of the energy drink company.

Monster Beverage closed Thursday at $71.65, and traded as high as $97.48 after-hours on the news. Coca-Cola ended the regular session at $40.18 and traded as high as $40.82 after-hours.

Posted-In: News Rumors Management Insider Trades M&A Movers

Whitney Tilson Says More Confident of Herbalife Short Position Following Ackman Presentation

Courtesy of Benzinga.

Whitney Tilson said in an email Tuesday, that he is more confident in his short position in Herbalife (NYSE: HLF), following Bill Ackman’s presentation. Tilson said he now believes his position has a 76% chance of succeeding vs 63% prior. That’s based on his belief that there is a 95% chance most of the company’s operations are a pyramid scheme, and there is now an 80% chance regulators will intervene.

Herbalife shares rose steadily throughout Ackman’s presentation Tuesday, and end the day up 25% at $77.67

Posted-In: News Movers & Shakers Insider Trades General

Benzinga’s M&A Chatter for Wednesday August 20, 2014

Courtesy of Benzinga.

The following are the M&A deals, rumors and chatter circulating on Wall Street for Wednesday August 20, 2014:

Infineon to Purchase Int’l Rectifier for $40/Share in Cash

The Deal:
Infineon Technologies (OTC: IFNNY) and International Rectifier Corporation (NYSE: IRF) announced Wednesday that they have signed an agreement under which Infineon will acquire International Rectifier for $40 per share in cash. The transaction is valued at approximately $3 billion.

The deal is expected to close in late calendar year 2014 or early calendar year 2015.

International Rectifier shares closed at $39.10 Wednesday, a gain of 47%.

NY Post Reports Iliad Speaking to Google, Microsoft About Funding T-Mobile Bid

The Rumor:
France’s Iliad (OTC: ILIAY), which offered $33 per share for a 57% stake in T-Mobile (NYSE: TMUS) on July 31, is reportedly in talks with Google (NASDAQ: GOOG) and Microsoft (NASDAQ: MSFT) regarding an increased bid, according to the NY Post. Iliad’s original bid was rejected by T-Mobile and shares of the fourth-largest U.S. carrier have fallen from the high on August 5 of $34.95 to Tuesday’s closing price of $28.95.

Spokespersons for Iliad and T-Mobile did not respond to requests for comment on the report.

T-Mobile closed Wednesday at $29.67, a gain of 2.5%.

Hellman & Friedman Made Offer for Shutterfly, Bain Capital Also Showing Interest, Could Be Valued at ~$2B, Deal Could Be Reached as Soon as Sept

The Rumor:
Share’s of Shutterfly (NASDAQ: SFLY) spiked to a high of $54.78 on Wednesday, following a report from Bloomberg that Hellman & Friedman and Bain Capital are among companies that have expressed an interest in the digital photo company. According to sources, Shutterfly could be vauled at $2 billion in a sale.

Shutterfly has been the subject of frequent takeover rumors over the past two months. Spokespersons for Shutterfly, Bain and Hellman and Friedman declined comment.

Shutterfly closed Wednesday at $50.47, a gain of more than 1%.

Posted-In: News Rumors M&A Movers

Tobacco Stocks Slump; Cause Unproven

Courtesy of Benzinga.

Related RAI
CVS Shrugs Off $2 Billion In Cigarette Sale Losses
4 Consumer Staples Stocks Trading Higher This Quarter
Is Reynolds Backing Off E-Cigs in Acquiring Lorillard? (Fox Business)

Reynolds American (NYSE: RAI) led tobacco stocks on a down tick Wednesday, dropping nearly one percent.

Reynolds' merger partner Lorillard (NYSE: LO) was also down by 0.6 percent and Altria Group (NYSE: MO) slumped more than 0.5 percent. Other cigarette makers were dropping with no news to account for the movement.

The relatively obscure Indian publication Deccan Chronicle of Hyderabad, India, said Wednesday that Indian health officials are set to ban e-cigarettes, but the item is vaguely worded and ill-sourced, and has been ignored by major news organizations.

E-cigarettes today account for $1 billion of the tobacco industry's $35 billion in annual sales, but Wells Fargo says the devices could hit $10 billion by 2018.

Wales has proposed banning the devices later this year, and the World Health Organization caused a stir last spring with a leaked memo that appeared to call for restrictions.

Posted-In: News Rumors Intraday Update

3 Companies That Should Grab Xbox Entertainment Studios

Courtesy of Benzinga.

Related TWX
Lego To Build Lego House Museum
3 Reasons Why Time Warner Should Acquire Xbox Entertainment Studios
Hectic Week in Tech as Major M&A Breaks Down (Fox Business)

Time Warner (NYSE: TWX) is rumored to be interested in acquiring Xbox Entertainment Studios from Microsoft (NASDAQ: MSFT).

Few analysts were interested in talking to Benzinga about the rumor, which may turn out to be completely false given Microsoft's official statement on the matter.

Global Equities Research analyst Trip Chowdhry told Benzinga that he thinks it would be smart for Microsoft to sell the studio.

"Under the new CEO, Microsoft is focusing on the core businesses," said Chowdhry. "Anything else, they're probably going to divest in it. Who else may be interested in the studio? I don't know."

Albert Fried & Company analyst Rich Tullo told Benzinga that he thinks it is more likely that Microsoft will simply close the division and take the write-off.

Whatever happens, there are a few firms that may be interested in a buyout. Read on to see which ones could pick up the studio.

Related Link: Xbox, PlayStation TV Ad Spend Could Reach $125 Million In 2014

1. Lionsgate (NYSE: LGF)

Lionsgate struck gold when it acquired the rights to The Hunger Games. The first two films grossed more than $400 million in the United States alone.

Lionsgate had hoped that Divergent would prove to be another cash cow, but the first film ended its run at just $150 million. With an $85 million budget, the movie was profitable, but it is nowhere near the size of the Hunger Games franchise.

If Lionsgate wants another smash hit, the studio might want to examine Xbox Entertainment Studios. At the very least, this studio would give Lionsgate the chance to produce a movie based on the hugely popular Halo franchise.…
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NY Post Reports Iliad Speaking to Google, Microsoft About Funding T-Mobile Bid

Courtesy of Benzinga.

France’s Iliad (OTC: ILIAY), which offered $33 per share for a 57% stake in T-Mobile (NYSE: TMUS) on July 31, is reportedly in talks with Google (NASDAQ: GOOG) and Microsoft (NASDAQ: MSFT) regarding an increased bid, according to the NY Post. Iliad’s original bid was rejected by T-Mobile and shares of the fourth-largest U.S. carrier have fallen from the high on August 5 of $34.95 to Tuesday’s closing price of $28.95.

View full article…

Posted-In: News Rumors Management M&A Movers

Benzinga’s M&A Chatter for Tuesday August 19, 2014

Courtesy of Benzinga.

The following are the M&A deals, rumors and chatter circulating on Wall Street for Tuesday August 19, 2014:

GigOptix Proposes to Acquire GSI Technology for $6.50/Share in Cash, Stock Deal

The Offer:
GigOptix (NYSE MKT: GIG) announced Tuesday that it is proposing to acquire all of the outstanding shares of GSI Technology (NASDAQ: GSIT) for $6.50 per share, consisting of $2.00 per share in cash, plus GigOptix common stock worth $1.33 based upon the volume-weighted average price of GigOptix’s common stock for the three trading days ending one day prior to the closing of the combination and a special dividend of $3.17 per share in cash payable by GSI Technology.

GSI Technology acknowledged the unsolicited, non-binding and conditional proposal from GigOptix, and said its Board of Directors will promptly and carefully review and consider the proposal, respond to it and advise its stockholders of the Board’s response.

GSI Technology closed at $5.41 Tuesday, a gain of 9.55%. GigOptix shares rose $0.01, to close at $1.34.

Allergan Could Acquire Salix for as Much as $190/Share

The Rumor:Shares of Salix Pharmaceuticals (NASDAQ: SLXP) rose sharply Tuesday, on a report from WSJ that Allergan (NYSE: AGN) could acquire the Raleigh, NC drug company for as much as $190 per share or $10 billion, according to sources. The rumored move is being seen as an attempt to make it more difficult for Valeant Pharmaceuticals (NYSE: VRX) to acquire Allergan.

Shares of Jazz Pharmaceuticals rose almost 3% for the day, on reports it too could be a potential takeover target.

Allergan declined comment on the rumor. Salix did not respond to a request for a comment.

Salix Pharmaceuticals closed Tuesday at $160.80, a gain of 15.5%, while Allergan closed at $161.82, a gain of 4%. Shares of Valeant closed at $113.72 a gain of 3.5%.

Report Family Dollar Likely to Reject Dollar General Bid

The Rumor:
CNBC’s David Faber reported Tuesday that Family Dollar’s (NYSE: FDO) Board of Directors is likely to meet this week to discuss the bid…
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PetSmart Up On Report It Will Go On Block

Courtesy of Benzinga.

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Facing Activist Pressure, PetSmart Reviews Capital Structure (Fox Business)

PetSmart (NASDAQ: PETM) shares spiked Tuesday on a report that the company will explore a potential sale.

Reuters said several shareholders led by activist investor Jana Partners have succeeded in efforts pushing the pet supply retailer to sell itself.

PetSmart may announce plans to explore strategic alternatives as soon as this week, according to an unnamed source cited by Reuters.

Jana, led by activist investor Barry Rosenstein, has held an 9.8 percent stake in PetSmart since last month when it called on Petsmart to review strategic alternatives, including a sale.

It sent a similar letter to PetSmart last week and on Monday disclosed it had received an anonymously delivered internal PetSmart document that outlined how it planned to fend off Jana.

PetSmart closed at $69.70, up 1.84 percent.

Posted-In: News Rumors M&A Hot After-Hours Center

3 Reasons Why Time Warner Should Acquire Xbox Entertainment Studios

Courtesy of Benzinga.

Related TWX
Lego To Build Lego House Museum
3 Companies That Should Grab Xbox Entertainment Studios
Hectic Week in Tech as Major M&A Breaks Down (Fox Business)

After months of hype for new, original content, Microsoft (NASDAQ: MSFT) announced that it would shut down its entertainment division.

The Hollywood Reporter last week revealed that Microsoft might sell Xbox Entertainment Studios to another entity instead. Time Warner (NYSE: TWX) is reportedly one of the first companies Microsoft spoke to about the possible sale.

Not everyone is buying into the rumor. Albert Fried & Company analyst Rich Tullo told Benzinga that there is a possibility that Microsoft will simply "close it down, take a couple hundred million-dollar tax break," and put that cash back into the company.

"That's possible," said Tullo. "More possible."

Related Link: 6 Companies That Could Acquire AMC Networks

When Microsoft CEO Satya Nadella announced that the studio would be closed, he made no mention of a possible sale. If that has changed, there are a few reasons why Time Warner would want take control of the company.

1. Big Licenses Right Out Of The Box

Xbox Entertainment Studios comes with licenses (and content that is already in production) for a number of notable properties, including Halo. Microsoft has collectively sold more than 50 million copies of the various Halo games, and a new sequel is headed to Xbox One in the distant future.

It is not hard to fathom what a well-made Halo film could do for Time Warner. It may not be as big as Harry Potter or Batman, but it could still provide the company with millions of dollars in additional revenue.

2. Top Talent

Acclaimed director Steven Spielberg will produce one of the two Halo series. The other, a web-based series, is coming from Ridley Scott.

Though it…
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3 Hot Takeover Targets In The Food And Beverage Industry

Courtesy of Benzinga.

Related KO
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CNBC's Stock Pops & Drops From August 18
Has the Smartphone Changed Us for the Better? (Fox Business)

Coca-Cola's (NYSE: KO) announcement last week that it had acquired a $2.15 billion, 16.7 percent stake in Monster Beverage (NASDAQ: MNST) pairs the biggest soda company in the world with the biggest energy drink brand in the United States.

Investor Reaction Positive

The deal, two years after the two companies almost struck a similar deal, was positively received by shareholders of both companies as well as investors who helped boost stock prices shortly after the announcement.

Related Link: Will Publix Try To Acquire Whole Foods?

Keurig Green Mountain

Coke’s latest acquisition follows the company’s initial 10 percent stake in coffee company, Keurig Green Mountain for $1.25 billion. Coke later bumped its stake up to 16 percent.

Both companies have been working together to develop a machine that will let consumers make their own Coke-branded soda.

Who’s Next?

Monster and Keurig are not the only food and beverage companies potentially ripe for investment or acquisition; Coca-Cola isn't the only major player poised to take action.

So who's next?

1. Campbell Soup (NYSE: CPB)

Warren Buffet’s Berkshire Hathaway already owns a 50 percent share of ketchup maker, Heinz. Bloomberg suggested the Omaha Oracle might also be interested in soup maker Campbell if the price was right.

With a negative Sell rating and price target downgrade by Goldman Sachs, not to mention an Underweight designation by Morgan Stanley, Forbes made a similar suggestion as recently as July.

2. SABMiller (OTC: SBMRY)

Following InBev’s $52 billion takeover of Anheuser-Busch six years ago, talk that Anheuser-Busch InBev could make a play for another major rival has been a…
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Help One Of Our Own PSW Members

"Hello PSW Members –

This is a non-trading topic, but I wanted to post it during trading hours so as many eyes can see it as possible.  Feel free to contact me directly at with any questions.

Last fall there was some discussion on the PSW board regarding setting up a YouCaring donation page for a PSW member, Shadowfax. Since then, we have been looking into ways to help get him additional medical services and to pay down his medical debts.  After following those leads, we are ready to move ahead with the YouCaring site. (Link is posted below.)  Any help you can give will be greatly appreciated; not only to help aid in his medical bill debt, but to also show what a great community this group is."

Thank you for you time!


Zero Hedge

Goldman Warns Additional Chinese Stimulus Risks Global Financial Stability

Courtesy of ZeroHedge. View original post here.

Submitted by Tyler Durden.

The soft July data have once again generated expectations of monetary easing from China. Goldman however thinks further monetary easing would have incrementally less of an impact and would come at the cost of financial stability. This diminishing impact, they argue, would result as overcapacity/oversupply restricts long-term borrowing demand and due to interest rate deregulation, which tends to move the long-term risk-free interest rate to a higher equilibrium, as seen in recent data. As the tradable sector continues to recover on the back of an improved global outlook, Goldman believes that a combination of sectoral policies aimed at easing financial stress and str...

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Chart School

Daily Market Commentary: Semiconductor Gains Accelerate

Courtesy of Declan.

It was more of the same from the Semiconductor index: a solid gain which took the index ever closer to 652 resistance. All of which is helping the Nasdaq and Nasdaq 100 maintain their push to all-time highs. Technicals for the Semiconductor Index are net bullish.  Weakness will offer itself as a buying opportunity, particularly at the breakout line and/or 50-day MA. Risk can be measured from the 38.2% fib retracement at $616.25.

The Nasdaq took a small loss, but 4,485 should be strong support. Losses back to this level will also offer a buying opportunity. A decisive undercut of 4,485 would switch to a 'bull trap', but that is not today's problem.

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Phil's Favorites

How can you have euphoria when nobody gives a sh*t?

How can you have euphoria when nobody gives a sh*t? Courtesy of    In early 2013, the “It’s 1999 again” bears came out of the woodwork and I spent a day looking at the way the stock market’s new highs were being covered by national newspapers all over the country.

Surely, in 1999, everyone was both aware and excited about the milestones in the market – if we were anywhere near a mania-like atmosphere, wouldn’t we be seeing something similar today?

But instead of wall-to-wall market coverage – there was just about nothing. Most business sections mentioned it, but the stock rally didn’t make the front ...

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All About Trends

Mid-Day Update

Reminder: David is available to chat with Members, comments are found below each post.

Click here for the full report.

To learn more, sign up for David's free newsletter and receive the free report from All About Trends - "How To Outperform 90% Of Wall Street With Just $500 A Week." Tell David PSW sent you. - Ilene...

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Option Review

Elizabeth Arden Put Option Activity Revisited

It’s an ugly day for investors in Elizabeth Arden, with shares in the name losing roughly one-quarter of its value overnight after the retailer of beauty products and fragrances reported a wider than expected loss and sales that were lower than analysts anticipated. Shares in the name are down more than 23% in the final hour of trading to stand at $14.95.

On Friday of last week we wrote a short note about put option activity on the stock...

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Sector Detector: Bullish investors jockey for position as if the correction is over

Courtesy of Sabrient Systems and Gradient Analytics

As many investors enjoy the final weeks of summer, some optimistic bulls seem to be positioning themselves well ahead of Labor Day in anticipation of a fall rally. Indeed, last week’s action was impressive. After only a mere 4% correction, investors continued to brush off the disturbing violence both at home and abroad, and they took the minor pullback as their next buying opportunity. But was that really all the pullback we’re going to get this year? I doubt it. But I also believe that nothing short of a major Black Swan event can send this market into a deep correction.

In this weekly update, I give my view of the current market environment, offer a technical analysis of the S&P 500 chart, review our weekly fundamentals-based SectorCast rankings of the ten U.S. business sectors, and then ...

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Swing trading portfolio - week of August 18th, 2014

Reminder: OpTrader is available to chat with Members, comments are found below each post.


This post is for all our live virtual trade ideas and daily comments. Please click on "comments" below to follow our live discussion. All of our current  trades are listed in the spreadsheet below, with entry price (1/2 in and All in), and exit prices (1/3 out, 2/3 out, and All out).

We also indicate our stop, which is most of the time the "5 day moving average". All trades, unless indicated, are front-month ATM options. 

Please feel free to participate in the discussion and ask any questions you might have about this virtual portfolio, by clicking on the "comments" link right below.

To learn more about the swing trading virtual portfolio (strategy, performance, FAQ, etc.), please click here ...

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Stock World Weekly

Stock World Weekly

Newsletter writers are available to chat with Members regarding topics presented in SWW, comments are found below each post.

The Stock World Weekly Newsletter is ready to go! View it here: Stock World Weekly. Just put in your user name and password, or take a free trial. 


#120692880 / ...

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Market Shadows

Helen Davis Chaitman Reviews In Bed with Wall Street.

Author Helen Davis Chaitman is a nationally recognized litigator with a diverse trial practice in the areas of lender liability, bankruptcy, bank fraud, RICO, professional malpractice, trusts and estates, and white collar defense. In 1995, Ms. Chaitman was named one of the nation's top ten litigators by the National Law Journal for a jury verdict she obtained in an accountants' malpractice case. Ms. Chaitman is the author of The Law of Lender Liability (Warren, Gorham & Lamont 1990)... Since early 2009, Ms. Chaitman has been an outspoken advocate for investors in Bernard L. Madoff Investment Securities LLC (more here).

Helen Davis Chaitman Reviews In Bed with Wall Street. 

By Helen Davis Chaitman   

I confess: Larry D...

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Digital Currencies

BitLicense Part 1 - Can Poorly Thought Out Regulation Drive the US Economy Back into the Dark Ages?

Courtesy of Reggie Middleton.

An Op-Ed piece penned by Veritaseum Chief Contracts Officer, Matt Bogosian

This past weekend (despite American Airlines' best efforts), Reggie and I made it to the Second Annual North American Bitcoin Conference in Chicago. While there were some very creative (and very ambitious) ideas on how to try to realize the disruptive Bitcoin protocol, one of the predominant topics of discussion was New York Superintendent of Financial Services Benjamin Lawsky's proposed Bitcoin regulations (the BitLicense proposal) - percieved by many participants at the event as an apparent ...

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Biotechs & Bubbles

Reminder: Pharmboy is available to chat with Members, comments are found below each post.

Well PSW Subscribers....I am still here, barely.  From my last post a few months ago to now, nothing has changed much, but there are a few bargins out there that as investors, should be put on the watch list (again) and if so a small amount.

First, the media is on a tear against biotechs/pharma, ripping companies for their drug prices.  Gilead's HepC drug, Sovaldi, is priced at $84K for the 12-week treatment.  Pundits were screaming bloody murder that it was a total rip off, but when one investigates the other drugs out there, and the consequences of not taking Sovaldi vs. another drug combinations, then things become clearer.  For instance, Olysio (JNJ) is about $66,000 for a 12-week treatment, but is approved for fewer types of patients AND...

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See Live Demo Of This Google-Like Trade Algorithm

I just wanted to be sure you saw this.  There’s a ‘live’ training webinar this Thursday, March 27th at Noon or 9:00 pm ET.

If GOOGLE, the NSA, and Steve Jobs all got together in a room with the task of building a tremendously accurate trading algorithm… it wouldn’t just be any ordinary system… it’d be the greatest trading algorithm in the world.

Well, I hate to break it to you though… they never got around to building it, but my friends at Market Tamer did.

Follow this link to register for their training webinar where they’ll demonstrate the tested and proven Algorithm powered by the same technological principles that have made GOOGLE the #1 search engine on the planet!

And get this…had you done nothing b...

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FeedTheBull - Top Stock market and Finance Sites

About Phil:

Philip R. Davis is a founder Phil's Stock World, a stock and options trading site that teaches the art of options trading to newcomers and devises advanced strategies for expert traders...

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About Ilene:

Ilene is editor and affiliate program coordinator for PSW. She manages the site market shadows, archives, more. Contact Ilene to learn about our affiliate and content sharing programs.

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