DSM Deal for Martek (Nasdaq:MATK) Positive Says Canaccord

The $31.50 bid by DSM for Martek Biosciences (Nasdaq:MATK) is a good one, according to Canaccord Genuity, and they see value in the company shareholders in general don't at this time.

Canaccord says, "DSM offers $31.50/share in cash for MATK. We do not expect a competing bid as IP expiration is not the challenge for DSM that it is for any other potential suitor. Anticipate deal will close as announced by early Q2/2011...We view DSM as the ideal acquirer as the risk of buying MATK is patent expiration, yet DSM is already exposed to this risk and has IP of its own that could be synergistic."

Canaccord Genuity changed their rating on Martek Biosciences to "Tender." Martek is trading at $31.52, down $0.15, or 0.47 percent, as of 12:19 PM EST.

Canaccord has a price target of $31.50 on them, and see no likelihood of another suitor pursuing Martek.

Martek (Nasdaq:MATK) Gets $1.1 Billion Offer from DSM

Shares of Martek Biosciences Corporation (Nasdaq:MATK) are soaring on the news Dutch group DSM has made an offer of $1.1 billion for the company.

DSM said this is only the first of many acquisitions they're ready to make in the high-margin portion of the food and materials sector.

Last week DSM sold off some of its chemical assets for $1.6 billion as it now starts to focus on growth through acquisitions. DSM has close to $2 billion on hand to make deals with.

Martek shareholders will get $31.50 a share from the offer, about 35 percent above Monday's closing share prices.

DSM said they're using cash reserves as the financial means to acquire Martek.

Martek was trading at $31.60, up $8.24, or 35.30 percent, as of 1:20 PM EST.

JPMorgan (NYSE:JPM), American Express (NYSE:AXP), Bank of America (NYSE:BAC), Wells Fargo (NYSE:WFC) Rise on Deal Expectations

The deal whereby Toronto-Dominion Bank agreed to acquire Chrysler Financial for $6.3 billion has apparently given a boost to financials, as JPMorgan (NYSE:JPM), American Express (NYSE:AXP), Bank of America (NYSE:BAC) and Wells Fargo (NYSE:WFC) are all trading up today.

Expectations from investors are this is the beginning of a probable flurry of deals which will continue on into 2011.

This goes beyond only the financials as far as expectations go for deals in 2011, as evidenced by Martek Biosciences (Nasdaq:MATK)
receiving a bid on them from Royal DSM, a Dutch firm. Martek has soared to $31.62, up $8.26, or 35.36 percent, as of 1:02 PM EST. Volume is already over 23 million as of this writing.

Some are heartened by the fact these deals were for companies in the U.S. with interest from firms outside the country, suggesting some American-based companies are still considered undervalued.

JPMorgan was trading at $41.16, up $1.21, or 3.03 percent, as of 1:05 PM EST. Wells Fargo was at $30.88, up $0.78, or 2.59 percent. Bank of America was at $12.84, up $0.22, or 1.70 percent. American Express was trading at $43.38, up $0.88, or 2.07 percent.