The Special Situation Report #19: 5/29 Roundup

Summary of the Week in Special Situations

May 29, 2022

Last Thursday I published my latest research on the e-commerce marketplace 1stDibs. As always I’m just an email away if you want to get in touch. Thank you for dropping by and I’ll be back next week.

Update on Developing M&A

Strategic Alternatives & Ongoing Situations

American Axle & Manufacturing (AXL) clarified that the company is not engaged in a sale process (Press Release)
Blue Apron (APRN) investor Joe Sanberg asked if he should try to take the company private (Twitter)
Kohl’s (KSS) potential buyers are planning to lower their original bids (Reuters)
Toshiba (TOSYY) Japanese buyout firms JIP, Polaris are considering bids (Reuters)
Wendy’s (WEN) 19% shareholder Trian disclosed in 13D filing that it is exploring an acquisition of the company (Filing)

Rumors

Envestnet (ENV) buyout deal rumored to be dead as bidders have moved on (Barron’s)
Insulet (PODD) draws takeover interest from Dexcom (DXCM) (MedTech Dive)
Papa John’s (PZZA) speculation that it may become a takeover target (Seeking Alpha)
Talkspace (TALK) recently approached by buyers with takeover interest, but no deal was reached (Axios)

Update on Shareholder Activism

Aerojet Rocketdyne’s (AJRD) CEO offered to resign in exchange for $50mm (Bloomberg)
Albertsons (ACI) speculation that Jana Partners is building a position (Seeking Alpha)
New York City REIT (NYC) Glass Lewis, ISS back activist candidate in proxy battle (Filing)

Update on Other Special Situations

Spin-Offs

Lionsgate (LGF.A) updated investors on its plan to spin-off Starz (The Hollywood Reporter)
Encompass Health (EHC) provided further detail on its upcoming spin-off of Enhabit (Hospice News)

Other

Didi Global (DIDI) may sell a stake to China’s FAW (Barron’s)
Emerson Electric (EMR) considering a sale of its waste-disposal business (Bloomberg)
Valvoline (VVV) approached by Saudi Aramco about a takeover of its lubricants business (WSJ)

Announced M&A

Target / Acquirer – Transaction Enterprise Value

Energy & Natural Resources

Höegh LNG Partners LP (HMLP) / Höegh LNG Holdings – $168mm (Press Release)

Financials

PCSB Financial (PCSB) / Brookline Bancorp (BRKL) – $313mm (Press Release, Presentation)

Healthcare

Covetrus (CVET) / CD&R & TPG – $4bn (Press Release)
Entasis Therapeutics (ETTX) / Innoviva (INVA) – $80mm (Press Release)

Industrials

StoneMor (STON) / Axar Capital Management – $720mm (Press Release)

Technology, Media & Telecommunications

VMWare (VMW) / Broadcom (AVGO) – $61bn (Press Release, Presentation)

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