Benzinga's M&A Chatter for Tuesday February 7, 2012

The following are the M&A deals, rumors and chatter circulating on Wall Street for Tuesday February 7, 2012: Glencore, Xstrata Agree to $90B Merger The Deal: The Glencore (GLNCY) Directors and the Independent Xstrata (XSRAY) Directors have reached agreement on the terms of a recommended all-share merger of equals - Creation of a major natural resources group with a combined equity market value of $90 billion and a unique business model, fully integrated along the commodities value chain, from mining and processing, storage, freight and logistics, to marketing and sales - Merger ratio of 2.8 New Glencore Shares for every Xstrata Share held, excluding Xstrata Shares already owned by the Glencore Group, providing Xstrata Shareholders other than Glencore with a 45 per cent. stake in the Combined Entity.
- The Merger values each Xstrata Share at 1,290.10 pence and the entire issued and to be issued share capital of Xstrata at approximately £39.1 billion ($61.9 billion) and represents a premium of:
- approximately 15.2 per cent. to Xstrata's closing share price of 1,119.50 pence as at 1 February 2012, being the last business day prior to the announcement by Xstrata that it was in discussions with Glencore; and
- approximately 27.9 per cent. to Xstrata's volume weighted average share price of 1,008.91 pence over the three-month period ended 1 February 2012, being the last business day prior to the announcement by Xstrata that it was in discussions with Glencore. Glencore closed at $14.48 Tuesday, a loss of 2.82% for the day on half the average daily volume. Xstrata closed at $3.71 Tuesday, a loss of 4.38% for the day on 4.7 times the average daily volume. Kraft Foods to Acquire SodaStream International The Rumor: Kraft Foods KFT to acquire SodaStream International SODA, according to sources. SodaStream signed a contract with Kraft on January 5, to sell drinks based on brands like Country Time and Crystal Light. Benzinga was in contact with spokespersons for both SodaStream and Kraft. Neither would comment on the rumor. SodaStream International closed at $42.42 Tuesday, a gain of 0.26% for the day on slightly more than the average daily volume. BHP Billiton, Rio Tinto to Acquire Cliff's Natural Resources The Rumor:
BHP Billiton BHP or Rio Tinto RIO could acquire Cliff's Natural Resources CLF for as much as $95 to $100 per share, according to a report on Bloomberg.com. A spokesperson for Cliff's would not comment on the rumor. Spokespersons for BHP and Rio Tinto were not available for comment. Cliff's Natural Resources shares closed at $75.51 Tuesday, a gain of 0.69% for the day on 1.4 times the average daily volume. Sears Holdings Hires Goldman Sachs as Adviser to Handle Strategic Options The Rumor:
Sears Holdings SHLD has hired Goldman Sachs as a consultant to handle strategic options, according to sources. Sears has been the subject of much chatter in recent weeks, with Chairman Eddie Lampert said to be attempting to take the company private. A spokesperson for Sears Holdings would not comment on the hiring of Goldman Sachs. Sears Holdings closed at $47.30 Tuesday, a gain of 6.17% for the day on just under the average daily volume. Oracle to Acquire Juniper Networks The Rumor:
Oracle ORCL to acquire Juniper Networks JNPR for $36 per share, according to sources. A spokesperson for Juniper would not comment on the chatter. Oracle did not respond to Benzinga's request for comments. Juniper Networks closed at $23.02 Tuesday, a gain of 1.32% for the day on 1.2 times the average daily volume. Berkshire Hathaway to Acquire Stake in Tesla Motors The Rumor:
Berkshire Hathaway BRK BRK to acquire up to a 10% stake in Tesla Motors TSLA. A spokesperson for Tesla would neither confirm nor deny the report, while Berkshire Hathaway did not respond to Benzinga's request for comments. Tesla Motors closed at $31.60 Tuesday, a loss of 0.63% for the day on average volume. Chevron to Acquire Cheniere Energy The Rumor:
Chevron CVX to acquire Cheniere Energy LNG for $19.50 per share, according to sources. A rumor involving the same two companies was reported on January 12, with a $16 purchase price. A spokesperson for Cheniere Energy would not comment on the rumor. Chevron did not respond to a request by Benzinga for comments. Cheniere Energy closed at $12.68 Tuesday, a loss of 3.5% for the day on 1.25 times the average volume. Siemens to Acquire Hologic The Rumor:
Siemens SI to acquire Hologic HOLX for $32 per share, according to sources. Benzinga contacted Siemens and Hologic, but neither responded with comments. Hologic closed at $20.83 Tuesday, a gain of 0.19% for the day on average volume. Collective Brands Narrows List of Bidders to 10 The Rumor:
Collective Brands PSS has reduced the number of bidders for the company down to 10, according to sources. On January 24, it was reported by Bloomberg that potential bidders included DSW DSW, PE firm Irving Capital and Leonard Green. Collective Brands closed at $18.24 Tuesday, a gain of 6.05% for the day on 2.7 times the average volume.