S&P Global Market Intelligence presents a periodic summary of potential deal activity in the financial sector, including rumored transactions. This summary is based on information obtained on a best-efforts basis and may not be inclusive of all potential deal activity.
Banking
* After an auction was canceled due to lack of competing bidders, a federal bankruptcy judge is considering approval of a sale of Beach Community Bancshares Inc.'s stake in Beach Community Bank to a trust linked to philanthropist, banker and real estate investor David Bolger.
* In a report, Keefe Bruyette & Woods analyst Michael Perito wrote that First Busey Corp.'s management is open to acquiring smaller banks, pursuing a merger of equals or partnering with a larger institution.
Perito wrote that Byline Bancorp Inc., Midland States Bancorp Inc. and Enterprise Financial Services Corp. could be viable candidates for a merger of equals; while possible acquirers could include MB Financial Inc., UMB Financial Corp., First Midwest Bancorp Inc., Wintrust Financial Corp., Great Western Bancorp Inc. and First Merchants Corp.
Also to read: I-banks eyeing lucrative fees as large-bank M&A returns; and US regulatory relief should trigger large-bank M&A
Financial services
* ChineseInvestors.COM Inc. has signed a letter of intent to acquire the assets of XBTeller.com, a Colorado cryptocurrency ATM and over-the-counter operation. Among other things, the letter of intent contemplates a total investment by ChineseInvestors.COM of approximately $2.5 million with $400,000 to be paid in cash and the remainder to be paid in its restricted stock.
* Following a strategic review, the board of American Capital Senior Floating Ltd. has decided that the company must be liquidated and dissolved. The plan includes the sale of its assets and the distribution of the net proceeds to the company's stockholders.
* IHS Markit Ltd. has initiated a process to sell its derivatives processing business, MarkitSERV, after doing a review of its financial services businesses. MarkitSERV provides end-to-end trade processing and workflow solutions across OTC derivatives asset classes.
* In early May, activist investor Elliott Management Corp. proposed to acquire athenahealth Inc. for $160 per share in cash and expressed concerns over the company's lack of communication and willingness to take part in such transactions. Subsequently, athenahealth shareholder Janus Henderson Group PLC urged the company to take part in a formal sale process. More recently, Legg Mason Inc. affiliate ClearBridge Investments LLC urged athenahealth's board to instruct its financial advisers to launch a formal solicitation process, including all potential strategic and financial suitors.
Also to read: CEO: LPL balance sheet ready for M&A opportunity 'of almost any size' ; and S&P Global eyes bolt-on deals under $100M, expansion into China
Insurance
* American Equity Investment Life Holding Co. is discussing a potential sale with interested suitors, and Athene Holding Ltd. and FGL Holdings could be among the companies eyeing the U.S. provider of annuities and life insurance products, Reuters reported. American Equity has confirmed potential deal talks.
* Vero Beach, Fla.-based Orchid Underwriters Agency LLC, the U.S. coastal wind-focused managing general agency backed by private equity firm Gryphon Investors, has engaged Sandler O'Neill to advise on a potential sale of the company, The Insurance Insider reported. Orchid has reportedly started talking to possible buyers.
* Kingsway Financial Services Inc. entered into a letter of intent to sell its nonstandard automobile insurance companies in an effort to focus on its extended warranty business.
* Distinguished LLC engaged Evercore to explore a potential sale of its New York-based program manager operation, Distinguished Programs Holdings LLC, The Insurance Insider reported.
Also to read: With segregated account rehab over, Ambac Financial will look at M&A, CEO says; Report: GE hires i-bankers to help divest insurance biz; Report: The Hartford moves to 2nd round in Aspen Insurance auction
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