Filed under: Management, Rumors, Value and lack thereof, Public or private?

Shares of Children’s Place (NASDAQ: PLCE) were up more than 5% on Friday after the children’s clothier and Disney Store owner announced that it was putting itself up for sale. The shares shut at $23.92, well off the 52-week high of $71.81. The company has been mired in scandal and recently CEO Ezra Dabah recently resigned after an investigation found that he’d failed to comply with company rules regarding insider trading and reporting. Dabah remains on the board and own 18% of the company.

Here’s where it gets interesting. According to The Wall Street Journal, “Mr. Dabah has told acquaintances that he wants to start his own private-equity firm and might be interested in buying Children’s Place and the Disney Store chain it operates. Mr. Dabah had been CEO of Children’s Place since 1991.”

Children’s Place hasn’t filed a 10-Q in more than a year, has several shareholder class-action lawsuits pending against it, and its auditor, Deloitte & Touche, reported that it would not stand for re-election because it can’t rely on information provided by Mr. Dabah and the company.

In other words, a large part of the blame for the company’s troubles — and resulting stock price — could probably be placed on the shoulders of Mr. Dabah. With the stock so far off its highs, he might stand to benefit from his poor management if he ends up acquiring all or part of the company.

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Filed under: Deals, Management, Engagements, Shareholders

Biogen (NASDAQ: BIIB) announced that “its Board of Directors has authorized management to evaluate whether third parties would have an interest in acquiring the company at a price and on terms that would represent a better value for stockholders.” BIIB call option volume of 6,470 contracts compares to put volume of 2,731 contracts. BIIB November option implied volatility of 39 is above its 26-week average of 31 according to Track Data, suggesting more massive risk.

Daily options Update is provided by Stock Specialist Paul Foster of theflyonthewall.com.

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Filed under: Deals, Management, Top deals, Engagements, Investments

Molson Coors(NYSE:TAP) & SABMiller announced the intent to combine their U.S. and Puerto Rico operations of their respective subsidiaries in a joint venture to create a stronger, brand-led U.S. brewer with the scale, resources and distribution platform to compete more effectively in the increasingly competitive U.S. market place. The new company will be called MillerCoors and will have net annual revenues of approximately $6.6 billion. Anheuser-Busch (NYSE:BUD) has been frequently speculated as in partnership venture discussions with InBev.

Daily M&A Update is provided by Stock Specialist Paul Foster of theflyonthewall.com

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Filed under: Deals, Management, Rumors, Financials and analyticals, Engagements, Investments

Intercontinental Exchange(NYSE:ICE) closed at $157.76. ICE has been frequently mentioned as a potential consolidation candidate over the last 16-months. On 10/2/07 ICE reported September 2007 contract volume rose 33.7% compared to September 2006. ICE is expected to report EPS in October. ICE over all option implied volatility of 44 is below its 26-week average of 48 according to Track Data, suggesting decreasing price movement.

SAP AG(NYSE:SAP), a German software company, announced its $6.8 billion takeover of Business Objects(NYSE:BOBJ), a global provider of business intelligence software solutions BOBJ. Cowen says: “1) What other dilutive deals the company is considering further reducing ROIC? 2) Why SAP paid so much (relatively) for a company that announced 3Q earnings shortfall the same day it got bought, and 3) can the company integrate such a large acquisitions?”

Daily M&A Update is provided by Stock Specialist Paul Foster of theflyonthewall.com

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