Courtesy of Benzinga.
The following are the M&A deals, rumors and chatter circulating on Wall Street for Monday June 17, 2013:
Starboard Says Sum of Smithfield Parts Worth More than $34/Share Offer
The Shareholder Letter:
Smithfield Foods (NYSE: SFD) shareholder Starboard Value LP announced Monday that it sent a letter to Smithfield’s Board of Directors. The letter states Smithfield could be worth $44 to $55 per share, well in excess of the $34.00 per share offered by Shuanghu. Starboard wants the Company to shop its operating divisions to all potentially interested parties.
Smithfield acknowledged receipt of the Starboard letter, and reiterated its recommendation in favor of the Shuanghui offer.
Smithfield Foods closed at $33.08 Monday, a gain of $0.28 on 3.5 times average volume.
Johnson & Johnson to Acquire Aragon Pharmaceuticals for Upfront Cash Payment of $650M
The Deal:
Johnson & Johnson (NYSE: JNJ) announced Monday a definitive agreement to acquire Aragon Pharmaceuticals for an upfront cash payment of $650 million, plus additional contingent payments of up to $350 million based on reaching predetermined milestones. The deal is expected to close in the third quarter of 2013.
Johnson & Johnson closed at $85.63 Monday, a gain of $0.72 on average volume.
Lowe’s to Acquire Orchard Supply Hardware Assets for $205M
The Deal:
Lowe’s announced Monday it has entered into an asset purchase agreement with Orchard Supply Hardware (NYSE: OSH) to acquire the majority of Orchard’s assets for approximately $205 million in cash, plus the assumption of accounts payable to nearly all of Orchard’s supplier partners. Lowe’s plans to have Orchard operate as a separate, standalone business, retaining its brand under the leadership of Orchard’s current management team.
Orchard Supply Hardware closed at $2.11 Monday, a gain of 12% on 8.5 times average volume.
Viropharma Reportedly Attracting Interest
The Rumor:
Viropharma (NASDAQ: VPHM), a biotech company specializing in drugs for rare diseases, has reportedly drawn takeover interest from several pharmaceutical companies, according to sources reported by Reuters.
A spokesperson for Viropharma declined comment on the rumor.
Viropharma closed at $28.87 Monday, a gain of 6% on 7.5 times average volume.
EMCOR Group to Acquire RepconStrickland for $455M in Cash
The Deal:
EMCOR Group (NYSE: EME) announced Monday that it has entered into an agreement to acquire RepconStrickland for approximately $455 million in cash. The transaction is expected to close in early July.
EMCOR Group closed at $38.72 Monday, a gain of $0.05 on light volume.
