Medco Health Solutions Inc. (NYSE: MHS) has announced it will buy PolyMedica Corporation (NASDAQ: PLMD) in an all-cash deal worth $1.5 billion.

PolyMedica is a direct supplier of diabetes testing supplies and other diabetes related products that is largely known for its Liberty brand. The purchase price values PolyMedica at $53 per share, a 17% premium over its closing price before the announcement.

Medco is explicitly making a play for the burgeoning diabetes market, as the press release announcing the deal states:

"An estimated 17 million Americans are currently treated for diabetes, with more than 1 million patients diagnosed each year; an additional 7 million are estimated as undiagnosed. Diabetes care represents one of the fastest-growing segments of health care in a market estimated at more than $25 billion a year. These patients represent 5 percent of the population but account for more than 15 percent of total drug spending..."

Medco is a pharmacy benefit manager that mainly provides prescription drug programs, with clients including Blue Cross/Blue Shield. Last year, Medco had net income of more than $600 million on revenue of more than $40 billion. The purchase of PolyMedica is seen positively by analysts as complimenting Medco's existing services, which include giving prescriptions to 2.8 million diabetes patients.

Both Medco shares and PolyMedica shares are trading near all-time highs on news of the deal, but the possible synergies from this purchase still makes MHS a stock worth watching!

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In a largely expected move, exchange holding Borse Dubai offered $4 billion - all cash - for Nordic exchange operator OMX, easily topping Nasdaq Stock Market Inc.'s (NASDAQ: NDAQ) cash and stock offer valued at $3.7 billion.

Though Borse Dubai already has almost a 30% stake in OMX, which operates exchanges in countries such as Sweden and Iceland, some shareholders may resist the deal not because of its value but its origin. A buyout by a Middle Eastern, government controlled holding company may be especially unappealing to the Swedish government which has a 6.6% stake in the company.

Nasdaq CEO Bob Greifeld is allegedly planning to travel to Sweden to meet with management and key shareholder of OMX, and Nasdaq said it remains fully committed to its offer.

Borse Dubai Chairman Essa Kazim had a different message, saying "This combination [of Borse Dubai and OMX] will establish OMX as the [Borse Dubai] group's global platform, building on OMX's leading technology and strong brand to position it to become one of the fastest-growing major exchange networks in the world."

Borse Dubai officials have been in Sweden all this week trying to win over OMX management and shareholders as well.

"We are prepared to give it financially full backing, to grow it and turn it into a truly global exchange," Borse Dubai Chairman Kazim said.

Though there are still many hurdles, the lure of the wealth of oil money behind the phrase "financially full backing" may prove too much for OMX to resist in the long-run, especially if Borse Dubai sweetens its offer.

Despite obviously jeopardizing the Nasdaq-OMX deal, Nasdaq shares are actually up today on continued speculation that there is a possibility of a three-way deal between Nasdaq, OMX, and Borse Dubai. And this makes NDAQ a stock worth watching!

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Late afternoon yesterday, federal judge Paul Friedman rejected the Federal Trade Commission's request to block Whole Foods Market Inc.'s (NASDAQ: WFMI) proposed acquisition of Wild Oats Markets Inc. (NASDAQ: OATS).

The FTC had argued that the half-billion dollar deal would stifle competition in the already niche organic foods sector, but Whole Foods countered that their true competition is now general supermarkets which have increased their organic products offerings.

Chairman and CEO of Whole Foods John Mackey said in a statement, "The District Court's ruling affirms our belief that a merger between Whole Foods and Wild Oats is a winning scenario for all stakeholders. We believe the synergies gained from this combination will create long-term value for customers, vendors and shareholders as well as exciting opportunities for team members."

The FTC can still try to block the deal by seeking a stay from the U.S. Court of Appeals for the District of Columbia Circuit or the district court, though all FTC Competition Director Jeffrey Schmidt would say is "we are reviewing our options."

In the meantime, Wild Oats shares are up nearly 18% to $17.90 and Whole Foods shares are up almost 5% to $43.22.

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TXU Corp. (NYSE:TXU) is set to begin its road show today garner support for a $32 billion buyout by private equity investors, indicating concern about whether it will be able to drum up the necessary 2/3 vote to seal the deal. The deal put together by KKR and TPG values TXU shares at $69.25 a piece - a 25% premium to the predeal share price. However, some shareholders aren't so sure that this is the best route to unlock value.

Many investors are concerned that the company negotiated the buyout price while it was under fire for building 11 coal power plants while also facing criticism for excessive executive compensation. Moreover, the outlook for the U.S. power market has improved substantially since the deal was announced last Spring. Combined, these factors seem to imply that the buyout offer may now be too low to be justified.

As a result, some investors believe that TXU should pursue a split-up instead where it would be divided into three businesses - an energy-driven wires business, a power-generation business, and an energy retailer. Te company came out strongly against such ideas in its proxy filing yesterday where it indicated that a buyout represents a much better deal for shareholders. However, the company said that if the buyout wasn't approved, this was the route that it would take.

Whether or not the company can drum up enough support to go through with their buyout offer remains to be seen. However, the possibility of a split-up or increased buyout offer make TXU a stock that is definitely worth watching!

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Metromedia International Group (OTC:MTRM) shares jumped $0.10, or 5.88%, to $1.80 today after Fursa Alternative Strategies' Mickey Harley expressed concerns over the company's proposed $1.80/share buyout offer and made his own $2.05/share proposal on the same terms. Shareholders applauded the move today but shares are currently at the original buyout price, leaving 14% on the table.

The planned merger is between Metromedia and an investor consortium called CaucusCom Mergerco, funded by Capital Management & Investment and others. Unfortunately for Fursa, these investors also have a $7.5 million breakup fee along with 20% of the net fees if the merger deal falls through and a third party acquires the company. This may cause some problems; however, it is likely that the board will at least consider the alternative proposal.

Metromedia is a diversified holding company that focuses on the Georgian telecom market. The interest in the companies lies predominantly in its 50.1% stake in MagtiCom - a mobile phone operator in the Republic of Georgia.
However, the company also has a large stake in PeterCom - a mobile phone operator in Russia. It also owns interests in Telecom Georgia and Telenet - two other Georgian companies.

In the end, this is good news for shareholders as it cannot hurt them. The current buyout offer stands at $1.80/share, so risky investors may find it worthwhile to purchase shares that are currently trading at that price in hopes for a chance at $2.05/share - a 14% premium. And this makes MTRM a stock worth watching!

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