Notable Merger and Acquisition News of the Day 2/01: [(NYX) (MCP) (WLK)/(GGC)]

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Overall Analyst Rating:
NEUTRAL ( Down

Down)

Dividend Yield: 4.9%
Revenue Growth %: -11.5%

NYSE Euronext (NYSE: NYX) announced today that in light of the decision by the European Commission to prohibit its proposed combination with Deutsche Boerse, the companies are in discussions to terminate their merger agreement.

NYSE Euronext said it would focus on the successful standalone strategy that has delivered strong growth and diversification of its core businesses and that it would leverage its financial strength to return capital to shareholders. In that regard, NYSE Euronext announced its intent to resume a $550 million share repurchase program following the termination of the merger agreement and after the release of its fourth quarter and 2011 year-end results on February 10, 2012.
Molycorp, Inc. (NYSE: MCP) announced today that Molibdenos y Metales S.A. (Molymet), the world’s largest processor of the strategic metals molybdenum and rhenium, has agreed to invest approximately $390 million in Molycorp in exchange for 12.5 million shares of Molycorp common stock. The price of the Molycorp shares to be purchased were valued based on the 20-day volume weighted average share price as of the close of trading on January 30, 2012 plus a 10.0% premium. Molycorp has agreed to appoint to its Board of Directors upon the closing of the proposed investment a nominee to be designated by Molymet.

Proceeds from the Molymet investment will be retained by Molycorp for general corporate purposes and will bolster Molycorp’s strategic flexibility. The funds are expected to finance Molycorp’s future growth and will help the Company continue to pursue its vertical supply chain integration business model. Closing of the transaction is subject to the satisfaction of customary closing conditions, including the receipt of certain governmental regulatory approvals.
Westlake Chemical Corporation (NYSE: WLK) announced today that it has submitted a revised proposal to the board of Georgia Gulf Corporation (NYSE: GGC) to acquire all the outstanding shares of Georgia Gulf for $35.00 per share in cash. The Company also announced that Georgia Gulf has rejected this increased offer. The revised proposal represents a 17% increase to Westlake’s previous offer of $30.00 per share, a 77% premium to Georgia Gulf’s unaffected 30-day volume weighted average share price of $19.82 prior to our original public offer and a substantial premium over the volume weighted average share price since the initial offer.