Wall Street's M&A Chatter From May 2: Akzo Nobel, Ormat, Staples Buyout, OneBeacon-Intact Financial

The following are the M&A deals, rumors and chatter circulating on Wall Street for Tuesday, May 2, 2017.

Cerberus, Sycamore Considering Staples Buyout

The Rumor:

Cerberus Capital Management LP and Sycamore Partners are exploring a takeover of Staples, Inc. SPLS, according to sources as reported by Reuters. The two PE firms are said to be frontrunners for a deal, following Staples talks with several firms recently, the sources said.

Staples and Office Depot Inc ODP called off their merger last May after the FTC effectively blocked the deal.

Staples closed at $9.78, up $0.13.

Akzo Nobel's Supervisory Board Says Most Recent PPG Offer is Inadequate

The Board Comments:

Akzo Nobel's AKZOY supervisory board has determined that PPG's PPG April 24 offer of $29 billion is inadequate and still does not value the company highly enough, according to sources as reported by Reuters. The board was scheduled to meet Tuesday to discuss the next step, the sources said.

Akzo is said considering talking to PPG only about issues that would negatively impact a deal, such as antitrust approval and not entering into negotiations, which could hinder the chances of getting a higher acceptable offer.

Akzo and PPG did not immediately respond to requests for comment on the rumor.

PPG closed at $109.47, up $0.01.

Ormat Said to Receive Interest from Chinese Suitors

The Rumor:

Shares of Ormat Technologies, Inc. ORA spiked higher following a report from Deal Reporter that the company is being pursued by two Chinese suitors, according to sources. Ormat in January entered the energy storage and demand response business, paying $35 million to acquire Viridity Energy.

Ormat closed at $59.98, up $1.00.

OneBeacon to be Acquired by Intact Financial for $18.10/Share in Cash

The Deal:

OneBeacon Insurance Group, Ltd. OB has entered into a definitive merger agreement, under which Intact Financial Corporation will acquire OneBeacon for $18.10 in cash per share. The deal is expected to close in Q4 of this year.

OneBeacon closed at $15.70, and traded at $18.10, after-hours.