The following are the M&A deals, rumors and chatter circulating on Wall Street for Monday, April 10, 2017.
AT&T to Acquire Straight Path Communications for $95.63 per Share in All Stock Deal
The Deal:
Straight Path Communications Inc. (NYSE: STRP) and AT&T (NYSE: T) announced a definitive merger agreement under which AT&T will acquire Straight
Path for $95.63 per share in an all-stock transaction, for a total value of $1.6 billion, including liabilities and amounts to be
remitted to the FCC per the terms of Straight Path’s January 2017 consent decree.
Straight Path shareholders will be paid in AT&T stock. Closing is expected within 12 months, subject to FCC review.
Straight Path Communications closed at $91.64, up $55.16.
Marcato urges Rent-A-Center's Board to Explore Sale
The Activist Letter:
Activist investor Marcato Capital Management sent a letter to the Rent-A-Center (NASDAQ: RCII) Board of Directors urging the Board to commence a strategic review
process to consider alternatives, including a sale of the company. Marcato Partner Shawn Badlani, RCII's poor financial performance
is a "direct result of multiple years of operational and strategic missteps by the Company."
Badlani said if the the Board continues to resist a review strategic alternatives now, Marcato will vote for Engaged Capital's
director nominees at the upcoming annual meeting.
Rent-A-Center closed at $10.29, up $0.69.
Microsoft to Acquire Deish
The Deal:
Deis announced it's being acquired by Microsoft (NASDAQ: MSFT). Terms were not disclosed. Deis develops tools for creating and managing
Kubernetes containers.
Microsoft closed at $65.53, down $0.15.
KKR Seeks to Take Harley Davidson Private
The Rumor:
Shares of Harley Davidson (NYSE: HOG)
spiked higher as traders circulated unconfirmed chatter that KKR is seeking to take the company private. "Sources" say a deal could
be made at $73.00 per share. Harley Davidson has been the subject of private equity chatter in the past.
Harley Davidson closed at $61.84, up $0.93.
RetailMeNot to Be Acquired by Harland Clarke Holdings for $11.60/Share in Cash
The Deal:
Harland Clarke Holdings Corp.announced it has reached a definitive agreement to acquire RetailMeNot, Inc.
(NASDAQ: SALE) for $11.60 per share in cash. The transaction
is expected to close in Q2 of 2017.
RetailMeNot closed at $7.75 and traded at $11.60 after-hours.
Knight Transportation, Swift Transportation to Merge; Deal Values Swift at $22.07/Share
The Deal:
Knight Transportation, Inc. (NYSE: KNX) and
Swift Transportation Company (NYSE: SWFT)
announced that their boards of directors have unanimously approved a merger of Knight and Swift in an all-stock transaction. Under
the terms of the agreement, each Swift share will convert into 0.72 shares of Knight-Swift by means of a reverse stock split. Each
share of Knight will be exchanged for one Knight-Swift share. The implied value per share of Swift is $22.07, based on the $30.65
closing price of Knight shares on April 7, 2017.
The transaction is expected to close in Q3 of 2017.
Knight Transportation closed at $34.75, up $4.10. Swift Transportation closed at $24.77, up $4.75.
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