NuVasive/Globus Medical spread widens amid notice of FTC meeting (update)
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Update 4:45pm: Adds reporting that NuVasive deal wasn't discussed at FTC meeting.
The deal spread in Globus Medical's (NYSE:GMED) planned purchase of Nuvasive (NASDAQ:NUVA) widened in regular trading amid a notice about a closed-door Federal Trade Commission meeting on Wednesday. The spread widened to 98 cents from 45 cents on Tuesday.
The FTC had scheduled a closed-door meeting for 1:30 p.m. today, according to a notice from the regulator.
The NuVasive (NUVA) deal wasn't discussed at the FTC meeting, according to a Bloomberg report after the close on Wednesday, which cited a person familiar.
Investors often speculate when meeting notices are given that the FTC may be voting on an ongoing deal that's being reviewed. While sometimes these meetings are about public companies, oftentimes they are about private firms.
Traders may be speculating on the NuVasive/Globus deal as the combination is tentatively scheduled to close, pending regulator approval, prior to the market opening on Friday, according to a Nasdaq delisting notice on Monday. The stock is scheduled to be halted immediately following the after-hours session on Thursday.
Traders told Seeking Alpha on Wednesday that they seemed concerned that NuVasive (NUVA) and Globus Medical (GMED) weren't giving a lot of information in regards to the Nasdaq delisting notice.
NuVasive (NUVA) and Globus Medical (GMED) didn't return Seeking Alpha email requests for comment.
The Nasdaq notice comes amid a report earlier this month that the companies appear optimistic about regulatory approval for the $3.1 billion deal after reports in recent months that the FTC may be looking to challenge the deal. NuVasive (NUVA) also stuck with its guidance for the Q3 close earlier this month amid a second request from the FTC.
Other potential deals that the FTC may be voting on include Intercontinental Exchange's (ICE) planned purchase of Black Knight (BKI), where the parties entered a consent decree with the FTC on Friday, and Amgen's (AMGN) $28 billion purchase of Horizon Therapeutics (HZNP), where the FTC has paused its in-house case as it tries to work on a settlement.  Another deal investors are waiting for the FTC to decide on is Kroger's (KR) planned $24 billion purchase of Albertsons (ACI).

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