#S&P Dow Jones Indices will make the following changes to the S&P MidCap 400 and S&P SmallCap 600 indices: #Valvoline $VVV will replace #Noble Corp. $NE in the S&P MidCap 400, and Noble will replace #Celadon Group $CGI in the S&P SmallCap 600 effective prior to the open on Tuesday, May 16.
S&P MidCap 400 constituent #Ashland Global Holdings $ASH is spinning off its remaining stake in Valvoline in a transaction expected to be completed prior to the open on Monday, May 15, pending final conditions. Ashland Global will remain in the S&P MidCap 400 post the spin-off transaction. Noble is ranked at the bottom of the S&P MidCap 400 and is no longer representative of the mid-cap market space. Celadon is ranked near the bottom of the S&P SmallCap 600 and is no longer representative of the small-cap market space.
#MaxLinear $MXL will replace #Exar $EXAR in the S&P SmallCap 600 effective prior to the open on Monday, May 15. MaxLinear is acquiring Exar in a deal expected to be completed on or about that date, pending final conditions.
#Lantheus Holdings $LNTH will replace #Tidewater $TDW in the S&P SmallCap 600 effective prior to the open on Tuesday, May 16. Tidewater is ranked at the bottom of the S&P SmallCap 600 and is no longer representative of the small-cap market space.
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#Elliott Associates said in its SEC filing regarding its new activist stake in #Gigamon, “The Reporting Persons intend to communicate with the Issuer’s management and Board about a broad range of operational and strategic matters, and intend to encourage the issuer to undertake a strategic review process including, without limitation, a potential sale of the Issuer or certain of its businesses or assets, in which the Reporting Persons may participate, as a means of enhancing shareholder value.
The Reporting Persons intend to review their investment in the Issuer on a continuing basis and may from time to time in the future express their views to and/or meet with management, the Board, other shareholders or third parties, including, potential acquirers, service providers and financing sources, and/or formulate plans or proposals regarding the Issuer, its assets or its securities.”
Shares of #Gigamon $GIMO are up 15% to $40.30 following news of the activist stake.
#Belden $BDC announced that it has rescinded its proposal to acquire 100% of #Digi International $DGII in light of the fiscal second quarter 2017 results and full-year 2017 outlook reported by Digi on May 4, 2017.
Belden’s offer of $13.82 per share in cash, initially disclosed on November 11, 2016, was based on a 10x EBITDA multiple on #EBITDA of $24M implied by the high end of guidance provided by Digi to its shareholders on October 27, 2016.
Earnings before interest, tax, depreciation and amortization (EBITDA).
$DIGI tumbled 13% on the news to close at $10.70. Shares were trading around $10 when the buyout was announced.
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