Hedge Fund News Wrap: Week Ending 10/9/15

Dell and EMC Are Flirting About Merging 

dell(Business Insider) – Dell Inc. and private-equity firm Silver Lake are in cahoots regarding buying EMC Corp. According to several sources EMC, a cloud computing company, has not made it clear whether Dell would acquire the entire company or just certain parts.

If the deal gets the green light, it will be one of the biggest tech tie-ups in history. In true fashion, the shares of EMC rose 4.8% in midday trading yesterday as news of the possible merger began to circulate.

EMC has seen better days, as threats like Amazon, Google and Microsoft continue to grow and several market analysts have repeatedly downgraded the stock over the past year or so. Meanwhile, the company is in the midst of cutting $850 million in spending, and the CEO is already halfway out of the door.

Read the entire article at Business Insider
More coverage: CNBC and The Wall Street Journal

Amazon Handmade Is Looking To Out-Craft Etsy 

(CNN Money) – Etsy, a well known peer-to-peer e-commerce website, is no longer the big kid on the block as Amazon Handmade takes aim to snatch up some of the market. Launched yesterday, Amazon Handmade resembles Etsy tremendously, sending shares of Etsy Inc. down by 6.9% because apparently there is great need for upscale pet furniture, crocheted overalls and other quirky goods. amazonvsetsy

“We believe we are the best platform for creative entrepreneurs, empowering them to successon their own terms,” Etsy CEO Chad Dickerson said in an emailed statement. “Etsy has a decade of experience understanding the needs or artists and sellers and supporting them in ways that no other marketplace can.”

It’s troubling times for the Brooklyn-based Etsy, as Amazon’s newest venture went live with a lineup of over 80,000 items from about 5,000 sellers in 60 countries. The fear is that because of Amazon’s outrageously large current customer base, Prime membership holders and unlimited advertising, Etsy will tumble as artists and sellers are deciding between the two, and some are even going to sell on both.

Read the entire article at CNN Money
More coverage: Market Watch and The New York Times

Roche To Buy U.S. Biotech Group Adheron Therapeutics 

(Reuters) – California-based Adheron Therapeutics is in the midst of a deal worth up to $580 million with Swiss drug-maker Roche, who plans on acquiring the U.S. biotech group. The deal comes at a time when Roche is seeking small bolt-on acquisitions at a time when the company says that prices for medium-sized biotech companies with experimental drugs in late-stage developments have soared out of reach, states Reuters.

This isn’t your average drug deal, as Roche is giving $105 million for company and its much-wanted drug, SDP051. The drug targets a protein called cadherin-11, which is believed to become a novel therapy for both rheumatoid arthritics and fibrotic disease.

“This deal brings together Adheron’s deep understanding of the underlying science of Cadherin-11 with Roche’s vast experience in researching and developing next-generation medicines,” Adheron CEO Hari Kumar said in a statement.

Read the entire article at Reuters
More coverage: Fierce Biotech