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Wall Street's M&A Chatter From January 27-29

DHT, GIS, WBA, POST, ASBFF, NSRGF, FRO

The following are the M&A deals, rumors and chatter circulating on Wall Street for Friday January 27 through Sunday, January 29, 2017:

Cerberus Capital Could End Up with 865 Walgreens Drug Stores

The Rumor:

Private equity firm Cerberus Capital could end up as the buyer for 865 Walgreens Boots Alliance Inc (NASDAQ: WBA) drug stores and save the $9.7 billion merger with Rite Aid Corporation (NYSE: RAD), according to sources as reported by the New York Post on Friday. The FTC has expressed concerns over the viability of Fred's, Inc. (NASDAQ: FRED) as a buyer for the stores. Cerberus, through Albertson's, submitted a higher offer than Fred's for the Walgreens stores.

The merger agreement between Walgreen's and Rite Aid expired on Friday, though sources said neither was expected to walk away from the deal.

Rite Aid closed Friday at $6.93, up 2.21 percent.

Post, Nestle-General Mills JV Among Bidders for Weetabix

The Rumor:

Post Holdings (NYSE: POST), Associated British Foods (OTC: ASBFY) and the Nestle (OTC: NSRGF)-General Mills (NYSE: GIS) joint venture Cereal Partners Worldwide are among four potential bidders for UK cereal brand Weetabix, according to sources as reported by Reuters on Friday. A deal could be worth approximately $1.88 billion.

Weetabix, Associated British Foods, and Nestle declined comment on the report. Post and General Mills did not respond, according to Reuters.

Post Holdings closed at $82.81 on Friday, up $0.17. General Mills closed at $62.72, up $0.02.

Frontline Offers $5.09/Share for DHT in All-Stock Deal

The Offer:

DHT Holdings Inc (NYSE: DHT) announced Sunday it has received a non-binding, highly conditional proposal from Frontline Ltd (NYSE: FRO) to acquire all of the outstanding shares of common stock of DHT for $5.09 per share, in a stock-for-stock deal. Under the proposed terms of the offer, DHT shareholders would receive 0.725 of a Frontline share for each share of DHT.

DHT's Board said it will evaluate the proposal from Frontline and respond in due course. In addition, the DHT Board has adopted a one-year shareholder rights plan and declared a dividend of one preferred share purchase right for each share of DHT common stock outstanding at the close of business on February 9, 2017.

DHT closed at $4.27 on Friday, down 2.95 percent.