The following are the M&A deals, rumors and chatter circulating on Wall Street for Tuesday, February 14, 2017.
Aetna, Humana End Merger Agreement
The Merger Termination:
Aetna Inc (NYSE: AET) and Humana
Inc (NYSE: HUM) have mutually
ended their merger agreement following a ruling from the United States District Court for the District of Columbia granting a
DoJ request to enjoin the merger. Aetna will pay Humana a $1 billion termination fee and has terminated its agreement to sell
certain Medicare Advantage assets to Molina Healthcare, Inc. (NYSE: MOH).
Aetna closed Tuesday at $125.81, up 3.08 percent. Humana closed at $205.97, down $0.35.
Hearing Renewed Takeover Rumor in Kate Spade
The Rumor:
Kate Spade & Co (NYSE: KATE) is said to be
awaiting first round bids, according to a report from DealReporter. Among the companies said to be bidding include Coach
Inc (NYSE: COH) and Michael Kors Holdings
Ltd (NYSE: KORS).
A spokesperson for Kate Spade said the company doesn’t comment on industry rumors or speculation. Bloomberg reported in late
December that a formal sale process was to begin in January.
Kate Spade closed at $19.61 on Tuesday, up 4.42 percent.
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Hologic to Acquire Cynosure for $66/Share in Cash
The Deal:
Hologic, Inc. (NASDAQ: HOLX) and
Cynosure, Inc. (NASDAQ: CYNO) have signed a
definitive agreement for Hologic to acquire Cynosure for $66.00 per share in cash via a tender offer, for an equity value of
approximately $1.65 billion and an enterprise value of $1.44 billion net of cash.
The transaction, has been approved unanimously by the boards of directors of both companies. The tender offer is expected to be
completed in late March or April of 2017.
Cynosure closed at $65.93 on Tuesday, up 28.01 percent.
Cigna Terminates Merger Agreement with Anthem
The Merger Termination:
Cigna Corporation (NYSE: CI) announced it
has exercised its right to terminate
the proposed merger agreement with Anthem Inc (NYSE: ANTM) following an order from the U.S. District Court for the District of Columbia
enjoining the transaction. Cigna believes it will not receive regulatory approval for the merger and terminating the agreement is
in the best interest of shareholders.
Cigna filed suit against Anthem in the Delaware Court of Chancery, seeking payment by Anthem of the $1.85 billion reverse
termination fee contemplated in the merger agreement, plus additional damages of more than $13 billion, including the amount of
premium that Cigna shareholders did not realize due to the termination of the merger.
Anthem responded, stating Cigna didn't have the right to unilaterally terminate the merger agreement.
Cigna closed at $146.68 on Tuesday, up $0.83. Anthem shares fell $0.20 to close at $163.32.
SoftBank Group to Acquire Fortress Investment Group for $8.08/Share in Cash
The Deal:
SoftBank Group Corp. (OTC: SFTBY) and
Fortress Investment Group LLC (NYSE: FIG) have
agreed that SoftBank will acquire Fortress for $8.08 per share, or approximately $3.3 billion in cash.
Benzinga reported heavy activity on Tuesday in the March $6.00 Fortress call prior to the takeover announcement.
The transaction is subject to Fortress shareholder approval and regulatory approval and is expected to close in H2 of 2017.
Fortress Investment Group closed at $6.21 on Tuesday and traded as high as $7.90 after-hours.
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