Takeover target Harbin Electric (HRBN) surges

Posted on Monday, June 20th, 2011

Harbin Electric (Nasdaq: HRBN) shares rose more than 46% to $12.25 on Monday after the company agreed to be bought for $24 a share. A group led by Harbin’s CEO is doing the buying. Harbin Electric said it expects the deal to close in the fourth quarter. Volume for the stock totaled 6.8 million shares, more than five times its all-day average.

The company announced that it has entered into a definitive agreement and plan of merger with Tech Full Electric Company Limited, a Cayman Islands company wholly owned indirectly by Tianfu Yang, the Company’s Chairman and Chief Executive Officer, and Tech Full Electric Acquisition, Inc., a Nevada corporation wholly owned by Parent.

In the June 20 news release regarding the merger, Yang said, “I want to thank the Special Committee for its extremely thorough work in reviewing our offer to take the Company private in order to ensure that the interests of all shareholders of the Company are fully protected.

“I have full confidence that, with the help of its highly respected financial and legal advisors, the Special Committee has thoroughly reviewed and evaluated potential alternatives and has established the credibility of our offer, including the availability of debt financing from China Development Bank Corporation Hong Kong Branch and Abax.”

Harbin Electric, headquartered in Harbin, China, is a leading developer and manufacturer of a wide array of electric motors with a focus on innovative, customized, and value-added products.

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Takeover target WPCS International Inc. (WPCS) leaps in price

Posted on Thursday, June 16th, 2011

WPCS International Inc. (Nasdaq: WPCS) shares gained 30.9% to $2.92 today after home-security and media-services provider Multiband Corp. (Nasdaq: MBND) signed a non-binding letter of intent to buy the communications-infrastructure firm for $3.20 a share. Shares in WPCS totaled 876,000, compared to average daily volume of just over 23,000.

The acquisition, which will be subject to customary due diligence, negotiation of a definitive merger agreement and other conditions, including the approval of the shareholders of WPCS, is expected to close by the end of the third quarter of 2011. Multiband is offering $3.20 in cash per share for WPCS shares.

In conjunction with the LOI announcement, Multiband has entered into a separate agreement with a third party to acquire for cash at $3.20 per share approximately 710,000 shares of WPCS’s outstanding common stock, representing an approximate 10% interest in WPCS.

In the June 16 press release announcing the takeover, Multiband CEO James L. Mandel commented, “This strategic acquisition will be significant for Multiband, expanding our service offering across a similar geographic footprint to our current presence and creating opportunity for significant operational leverage through the consolidation of real estate, training, and overhead expenses.

“Once integrated, we expect the acquisition to be immediately accretive, adding more than $100 million in revenue and between $5-8 million in EBITDA, on an annual basis.”

The LOI with WPCS has been approved by the Board of Directors of Multiband.

WPCS, based out of Exton, Pa., is a design-build engineering company that focuses on the implementation requirements of communications infrastructure.

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MediaMind Technologies Inc. (MDMD) acquired by DG, stock soars

Posted on Thursday, June 16th, 2011

MediaMind Technologies Inc. (Nasdaq: MDMD) shares gained 38.2% to $22.03 a piece Thursday, after DG Fastchannel Inc. (Nasdaq: DGIT) said it would pay $418 million, or $22 a share, to buy the digital-advertising company. Volume for the stock topped 2.3 million shares, routing a daily average of just over 70,000.

A news release June 16 announced the definitive agreement, under which DG will acquire MediaMind in an all-cash transaction. The acquisition creates one of the premier global online and television advertising technology companies.

Upon closing, Gal Trifon, President and CEO of MediaMind, will serve as DG’s Chief Digital Officer, leading DG’s online advertising business. Additionally, Ofer Zadikario, MediaMind’s Chief Solutions Officer, will join DG in the same position.

“This is a game-changing transaction that provides DG with an unmatched global footprint, broad customer reach and an innovative platform in television and the fast-growing online advertising market,” said Scott Ginsburg, Chairman and CEO of DG in the same news release. “

In the release, Trifon was quoted thus, “We believe this transaction offers significant value for our shareholders and is the natural, next step for MediaMind. DG will provide us with the added scale and resources to continue to grow our platform and enhance the services we provide our customers. Working together with DG, we will provide a single solution for advertising creation, distribution, and monitoring for cross-platform campaigns.

“We are excited to partner with DG,” Trifon concluded, “to continue to increase our base of large advertisers and expand our global operations, and we are confident that our employees will benefit from the greater opportunities at the combined company.”

Headquartered in New York, MediaMind has 37 sales and representation offices covering 64 countries. In 2010, MediaMind delivered campaigns for 9,000 brand owners using approximately 3,800 media and creative agencies across 8,200 global web publishers in 64 countries.

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Regeneron Pharmaceuticals Inc. (REGN) jumps on OK for eye drug

Posted on Wednesday, June 15th, 2011

Regeneron Pharmaceuticals Inc. (Nasdaq: REGN) shares rose 8.4% to $59.65 after U.S. regulators had released a report saying its experimental treatment prevents a cause of vision loss. Volume for the stock registered 1.29 million, just outdistancing its all-day average of 1.24 million.

The Food and Drug Administration said the company’s drug, VEGF Trap-Eye, worked as well as Roche (RHHBY.PK)‘s Lucentis in treating an eye condition that is the leading cause of blindness in American seniors.’

On Friday, an outside panel of experts will vote on whether the drug should be approved. The FDA is not required to follow the group’s advice, though it often does.
Analysts have high expectations for Regeneron’s drug because it designed to be injected less frequently than Lucentis: once every two months, versus once a month.

Dr. Michael Aberman, Regeneron’s vice president of strategy and investor relations, was quoted in a Forbes article on June 15 as saying, “It’s a big deal for patients and caregivers if you can get less frequent injections in the eye. It’s a great advancement in quality of life and compliance.”

The FDA said studies of VEGF Trap-Eye showed it worked as well as Lucentis in maintaining patients’ vision after one year of treatment.

If approved, VEGF Trap-Eye will be the first drug to compete with Roche’s Lucentis, which posts sales of about $1.5 billion annually.

Founded on the principle that strong science would lead to important new medicines, according to the company website, the Tarrytown, New York-based Regeneron has become an integrated biopharmaceutical company that discovers, develops, and commercializes medicines for the treatment of serious medical conditions.

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DST Systems Inc. (DST) races ahead on word of several suitors

Posted on Wednesday, June 15th, 2011

DST Systems Inc. (NYSE: DST) shares gained 14.2% to $55.19 after Reuters reported that the accounting-software company had drawn interest from private equity firms in recent months. Volume for the stock was 1.5 million shares, compared to an all-day average of 288,000.

The exclusive story that broke this morning quoted sources close to the situation as saying the Kansas City-based DST had received several buyout overtures from private equity firms in recent months, including one led by activist investor Russell Glass.

Glass, founder and head of New York investment firm RDG Capital, told Reuters he had teamed up with a private equity firm and approached DST management within the last 30 days to talk about a buyout of the diversified data processing company in the mid-$60s per share range.

DST also held discussions in March and April with another private equity firm that was also eyeing a mid-$60s price range, a source close to the situation said.

The news agency also quotes Glass as saying he was rebuffed by DST management on grounds that the company did not want to sell while it is grossly undervalued.

The other private equity firm had also been rejected, while the mid-$60s range appears to be the starting point, said the source, adding, “You have to be prepared to bump or compete with other buyers.”

The source requested anonymity because the talks are not public. A DST spokeswoman declined to comment.

DST Systems, Inc. provides sophisticated information processing and computer software products and services to support the mutual fund, investment management, insurance and healthcare industries.

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