Posts related to ‘Mergers and Buy Outs’

It Looks More Likely GE (GE) May Keep NBCU, Force Job Cuts

With the passing of each hour, there are more media reports that talks between GE (NYSE:GE) and Vivendi for the French company to sell its 20% of NBCU to the American conglomerate have moved closer to collapse. Without Vivendi’s cooperation, GE cannot form the joint venture it is creating with Comcast (NASDAQ:CMCSA) to take the management and eventually the ownership of the entertainment company out of its hand. Read More »

Posted on: November 21, 2009 – 11:34 am in Conglomerates, Media, Mergers and Buy Outs, ,

Hershey Longs For Cadbury?

The trust that controls Hershey has asked the company to make a bid for UK sweets company Cadbury (NYSE:CBY).

The Wall Street Journal reports that the offer would be approximately $17 billion which would top the current offer from Kraft (NYSE:KFT)

Douglas A. McIntyre

Posted on: November 20, 2009 – 4:46 pm in Mergers and Buy Outs, ,

Vivendi Disputes Value Of GE’s (GE) NBCU Business

The much-anticipated deal for Comcast (NASDAQ:CMCSA) to take control of the NBC Universal division of GE (NYSE:GE) may die next week . Vivendi, which owns 20% of NBCU, believes that the entertainment and news company is worth much more than GE does.

According to the FT, “General Electric and Vivendi are at least $1bn apart in their valuation of the French group’s stake.”

It will be a challenge for GE to operate a business that it clearly wants to sell. Read More »

Posted on: November 20, 2009 – 5:23 am in Media, Mergers and Buy Outs, ,

AMERITRADE Shelf Registration Spurs E*TRADE Speculation Further (AMTD, ETFC, SCHW)

TD AMERITRADE Holding Corporation (NASDAQ: AMTD) has just filed an automatic shelf registration statement with the SEC today, which many rumor mongers may jump on and point to the notion that this lends more credibility to some buyout rumors from yesterday that it may want to acquire E*TRADE Financial Corporation (NASDAQ: ETFC).  AMERITRADE did not offer any terms nor any size or timing, but the offering is solely for senior debt securities and for subsidiary guarantees.  As with most automatic shelf registrations, no underwriters were mentioned by name.
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Posted on: November 19, 2009 – 11:38 am in Banking, Brokerage Firms, Financial Stocks, Mergers and Buy Outs, Rumors, , ,

The More Focused, and More Opaque, Buffett & Berkshire Hathaway (BRK-A, BRK-B, BNI, UNP, NSC, GS, GE, TIF, HOG, WMT, COP, XOM, WFC, RSG, DOW, ETN, WBC, MCO, WLP, UNH, GSK, SNY, GCI, WPO)

This was an important week for investment guru and billionaire watchers to see which gurus were holding which stocks.  The full public equity holdings of Warren Buffett via Berkshire Hathaway Inc. (NYSE: BRK-A) were particularly of note, particularly with those B shares under “BRK-B” soon to split and giving a chance for even the less astute ranks of Joe Public to own a piece of the Berkshire dream.  Obviously the huge change is via the Burlington Northern Santa Fe Corp. (NYSE: BNI) buyout.  As part of this deal, Buffett is exiting Union Pacific (NYSE: UNP) and exiting Norfolk Southern (NYSE: NSC) stakes of about $600 million and $100 million, respectively, to avoid duplication and internal competition.  The rail transport play now accounts for about one-quarter of the total Berkshire Hathaway entity upon closing. But the less obvious position in that Warren Buffett in 2009 has made it clear that there will be a simpler and probably less “stock-hound” version of Berkshire Hathaway ahead.

Buffett has gone higher up the food chain and is likely to be a creditor now inside or to large institutions.  We have seen this during the crisis.  Buffett negotiated a better deal for Goldman Sachs Group (NYSE: GS) than the US Government was able to get.  Buffett’s preferred stock in Goldman Sachs has a dividend of 10% and is callable at any time at a 10% premium; but Buffett also got warrants to purchase $5 billion of common stock with a strike price of $115.00 per share, exercisable for a five-year term (4 years now), and Buffett would effectively get to pocket $61 per share if he exercised those all today at the market (and with a $2.6 billion warrant profit alone).

The General Electric Co. (NYSE: GE) stake was listed only as 7.77 million shares of common stock (about $125 million now), the same as it has been for quarters.  Yet last year Buffett came to the rescue with a $3 billion of perpetual preferred stock in a private offering with a dividend of 10% and warrants to purchase $3 billion of common stock.  The preferred is callable after 3-years (2 years now) at a 10% premium; the warrants have a strike price of $22.25 and are exercisable for a five-year term (4 years now).
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Posted on: November 19, 2009 – 8:59 am in Activist Investor, Bonds, Buffett, Conglomerates, Dividend, Editor's Picks, Infrastructure, Large Cap Stocks, Mergers and Buy Outs, Oil & Gas, Private Equity, Transports, Value Investing, , , , , , , , , , , , , , , , , , , , , , , ,

52-Week High Club (AMD, ASMI, ALV, CHS, GGWPQ, LFT, DE)

Advanced Micro Devices Inc. (NYSE: AMD) rose over 10% to a yearly high of $7.33 after the computer processor maker announced today that it would offer $500 million in senior notes, the cash from which will be used to purchase its 5.75 percent convertible notes due in 2012.

ASM International N.V. (NASDAQ:ASMI) rose over 5% to a yearly high of $24.69 after the semiconductor equipment maker was upgraded by Fortis Bank Nederland NV.

Autoliv Inc. (NYSE: ALV) rose over 3% to a yearly high of $41.84 after the airbag manufacturer said that production is holding up well in the fourth quarter.

Chico’s FAS Inc. (NYSE: CHS) rose over 14% to a yearly high of $15.43 after the women’s clothes retailer announced 3Q earnings of $0.13 per share, nearly doubling analysts expectations.  

General Growth Properties Inc. (OTC: GGWPQ) rose over 35% to a yearly high of $6.19 after Simon Property Group Inc. (NYSE: SPG) announced that it had hired Lazard Ltd to lookk into buying assets from General Growth.  

Longtop Financial Technologies Limited (NYSE: LFT) rose nearly 10% to a yearly high of $35.30 after the Chinese software developer said that it had added 3.7 million additional American depositary receipts priced at $31.25.

Deer & Company (NYSE: DE) rose over 6% to a yearly high of $52.28 after Jim Cramer recommended buying shares in the tractor maker, arguing that the company would benefit from increased agricultural activity.  

Garrett W. McIntyre

Posted on: November 18, 2009 – 4:15 pm in Agriculture, Autos, Mergers and Buy Outs, Retail, Semiconductor, Technology Companies, , , , , , , ,

Long-Past SPAC Deals Reach Back for Warrants, More Deal News (SGS, HOL, EST, CIO, PAX, TMI, CFQCF)

We have been given some exclusive coverage on the recent developments in special purpose acquisition companies and blank check companies from SPACupdate.com this morning.  Stream Global Services (AMEX: SGS), the business outsourcer brought public through SPAC Global BPO Services Co., has launched an offer to buy back its warrants from its blank check merger. As more than a dozen SPAC targets have leaped past their blank check’s IPO value, it is expected that investors will clamor to buy up warrants that offer big discounts on rising stock and that the companies affiliated with those blank checks will set out to curb dilution through buybacks.

Friday, China Holdings Acquisition Co. (AMEX: HOL) will have its deal vote to bring ceramic tile maker Jinjiang Hengda Ceramics Co., Ltd. The SPAC, earlier this week, entered into an agreement with forward contract champ Victory Park Capital Advisors to buy back 4 million shares at a small premium. The $150 million SPAC joins a long list of successful blank checks from this fall—among them, REIT-targeting vehicles Enterprise Acquisition Co. (AMEX: EST)—that used forward contracts to get their deals done.
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Posted on: November 18, 2009 – 8:50 am in IPOs, Mergers and Buy Outs, Private Equity, , , , , , ,

American Express & Revolution… The Reach Down (AXP)

American Express Company (NYSE: AXP) is about to get larger in the credit arena, and in a new path than its traditional high-end clients.  The company announced that it has agreed to acquire Revolution Money, which was launched by AOL Co-founder Steve Case in 2007.  The purchase price is expected to be approximately $300 million.  This may just be the first of several reach-down initiatives from AmEx.
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Posted on: November 18, 2009 – 8:41 am in Financial Stocks, Mergers and Buy Outs,

52-Week High Club (AGO, SMTL, SINA, TWB)

Assured Guaranty Ltd. (NYSE: AGO) over 32% to a yearly high of $28.14 after the company posted earnings of $0.44 per share, beating analysts estimates.  

Semitool Inc (NASDAQ: SMTL) rose over 30% to a yearly high of $11.00 after Applied Materials Inc (NASDAQ: AMAT) agreed to buy the company for $11.00 per share, or $364 million.  

Sina Corp (NASDAQ: SINA) rose over 10% today to a yearly high of $47.95 after the Chinese internet portal beat earnings and projected margin improvements.  

Tween Brands Inc (NYSE: TWB) rose over 11% today to a yearly high o $10.16 after the company posted a profite of $0.58 per share, beating analyst estimates.  

Garrett W. McIntyre

Posted on: November 17, 2009 – 3:56 pm in Financial Stocks, Media, Mergers and Buy Outs, Retail, Semiconductor, Technology Companies, , , , ,

SPAC/Blank Check IPO Filing: 57th Street General Acquisition Corp.

The world of special purpose acquisition companies may get yet another new entrant.  After the close of trading on Monday came the filing for 57th Street General Acquisition Corp. to come public via an initial public offering.  This deal is being brought by Morgan Joseph and by Ladenberg Thalman & Co.   57th Street plans to sell 5,000,000 Units, each at a purchase price of $10.00 per unit and consisting of one share of common stock and one warrant to purchase one share of our common stock with an $11.50 strike price.

57th Street is a newly organized blank check company formed for the purpose of acquiring (or merging with) one or more operating businesses or assets that have not yet been identified.  This blank check has a bit shorter of a lease as it will only have 15 months from the date of this prospectus to consummate its initial business transaction.

Unfortunately, this one plans to trade OTC on the Bulletin Board.

Jon C. Ogg

Posted on: November 17, 2009 – 11:31 am in IPOs, Mergers and Buy Outs, Private Equity

Semitool Becomes Part of Applied Materials (SMTL, AMAT)

Semitool, Inc. (NASDAQ: SMTL) has become the perfect fit for Applied Materials, Inc. (NASDAQ: AMAT).  Applied has decided to acquire the maker of multi-chamber single-wafer and batch wet chemical processing equipment used in the fabrication of semiconductor devices. The company is being acquired by Applied Materials for $11.00 per share in cash.  The $364 million deal is small enough that it should not bleed too much from Applied Materials’ shares as its market cap is some $17 billion and now that it has earnings behind it.
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Posted on: November 17, 2009 – 8:10 am in Mergers and Buy Outs, Semiconductor, Technology Companies, ,

Bristol-Myers Cleans Up on Mead Johnson (BMY, MJN)

Money ImageBristol-Myers Squibb Company (NYSE: BMY) is going to completely separate itself from its holdings in Mead Johnson Nutrition Company (NYSE: MJN).  The company expects that the split-off will be a tax-advantaged way to divest these holdings and is expected to be net cash flow positive to the BioPharma business and is expected to be accretive to earnings per share beginning in 2010.  Mead Johnson has had one unbelievable year.  This came public in February and traded as low as $25.72 after the IPO.  Shares closed at $45.25 on Friday.
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Posted on: November 16, 2009 – 9:29 am in Drug companies, Healthcare, IPOs, Mergers and Buy Outs, ,

Cisco’s (CSCO) Tandberg Gamble That Video Quality Pays

TVCisco (NASDAQ:CSCO) has decided to gamble that it can get reluctant Tandberg shareholders to support a buyout of their company by raising its offer to $3.4 billion. That is a 10% improvement over Cisco’s previous offer. A number of Tandberg investors lined up against the first deal, saying it valued the company at too low a price.

Cisco says it will walk away from its attempt to buy the company if Tandberg shareholders do not approve a purchase at the new figure. The offer by Cisco is a huge gamble on video conferencing, an over-crowded field. Read More »

Posted on: November 16, 2009 – 5:35 am in Mergers and Buy Outs, Technology Companies, , ,

Are Silicon Storage Holders Getting Enough? (SSTI)

Money ImageSilicon Storage Technology, Inc. (NASDAQ: SSTI) is trading up on a private equity and management-led buyout.  SST is flash memory maker based in Sunnyvale, California.  While the company has entered into a definitive merger agreement to be acquired for $2.10 per share, it is almost impossible not to wonder (at best) if this price is a fair value to the Silicon Storage shareholders who would be getting cashed out if a majority approves the deal.

First off, the company is being acquired by Prophet Equity LP’s Technology Resource Holdings, Inc. as well as by members of Silicon Storage’s management team.  The $2.10 price is also only a 13% premium to yesterday’s close.  It seems some believe that the private equity and management-led buyout will have to pony up more.  Shares are above the buyout price.
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Posted on: November 13, 2009 – 3:00 pm in Corporate Governance, Management Change, Mergers and Buy Outs, Private Equity, Semiconductor, Shareholder Issues, Technology Companies,

Many Key SPACs on Deck (PAX, TOH, EST, TCW, CFQCF, GQN, NSAQ, CIO)

We have been given some exclusive data from SPACupdate.com on the progress of many blank check and special purpose acquisition companies which their targets and relevant trading data. Prospect Acquisition Co. (AMEX: PAX), Hicks Acquisition Co. (AMEX: TOH), Enterprise Acquisition Co. (AMEX: EST), Triplecrown Acquisition Co. (AMEX: TCW), China Fundamental Acquisition Co. (OTC: CFQCF), Global Brands Acquisition Co. (AMEX: GQN), North Shore Acquisition Co. (OTC: NSAQ), and Asia Special Situation Acquisition Co. (AMEX: CIO) all have very recent or pending data important for SPAC and special situations investing.
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Posted on: November 13, 2009 – 9:23 am in Mergers and Buy Outs, Private Equity, , , , , , , ,

British Air And Iberia: Airlines Return To The Center Of M&A Stage

airplaneThe rumor that US Air (NYSE:LCC) and American (NYSE:AMR) may merge is not so far-fetched today, or that Southwest (NYSE:LUV) might take over JetBlue (NASDAQ:JBLU).

British Air and Iberia, the flag carriers of the two nations whose fleets met at The Battle of Trafalgar, will merge, creating one of the world’s largest airlines. BA shareholders will control 55% of the new company which will have a market value of $7 billion and total sales of nearly $20 billion. It is noteworthy that just earlier this week, BA said it would fire  4,900 people because of a $485 million loss in the six months that ended on September 30. Read More »

Posted on: November 12, 2009 – 5:58 pm in Airlines, Mergers and Buy Outs, , , , , , ,

52-Week High Club (COMS, AMD, PLA, BID)

3Com Corp (NASDAQ: COMS) rose over 30% to a yearly high of $7.52 after Hewlett-Packard, the PC maker, announced plans to buy 3Com for $2.7 billion.

Advanced Micro Devices Inc. (NYSE: AMD) rose over 20% to a yearly high of $6.73 after the announcement that the company would receive $1.25 billion from Intel Corp. (NASDAQ: INTC) under an agreement that ends a legal dispute between the two companies over patents and antitrust accusations.  

Playboy Enterprises Inc. (NYSE: PLA) rose over 60% to a yearly high of $4.75 because the magazine is in talks to sell itself to Iconix Brand Group (NASDAQ: ICON).

Sotheby’s (NYSE: BID) rose as high as 11% to a yearly high of $19.50 after the action house raised $117 million at a sale yesterday.  

Garrett W. McIntyre

Posted on: November 12, 2009 – 4:31 pm in Earnings, Law, Mergers and Buy Outs, , , , , ,

Tech Giants Now Hold ~$265 Billion Cash To Spend (HPQ, COMS, INTC, AMD, MSFT, CSCO, AAPL, GOOG, ORCL, JAVA, QCOM, EMC, YHOO, DELL, AMZN, EBAY, ONT, BRCD, JDSU, STAR, VMW)

You have already seen the Hewlett-Packard (NYSE: HPQ) buyout of 3Com Corporation (NASDAQ: COMS).  But this week before that deal was announced we covered how mergers in the technology sector have been very slow to develop over the scale in which we and others think is possible for the sector.  After the Intel Corporation (NASDAQ: INTC) settlement with Advanced Micro Devices (NYSE: AMD), the tally of cash that is now estimated would be an implied $265 billion that is available for the tech giants in our 24/7 Wall St. Real-Time 500 to make acquisitions.

The giant cash balances are held by Microsoft Corporation (NASDAQ: MSFT), Cisco Systems Inc. (NASDAQ: CSCO), Apple Inc. (NASDAQ: AAPL), Google Inc. (NASDAQ: GOOG), and Oracle Corp. (NASDAQ: ORCL), assuming nothing happens with Sun Microsystems Inc. (NASDAQ: JAVA).  But players like QUALCOMM Inc. (NASDAQ: QCOM), EMC Corporation (NYSE: EMC), International Business Machines (NYSE: IBM), Dell Inc. (NASDAQ: DELL), Yahoo! Inc. (NASDAQ: YHOO), Amazon.com Inc. (NASDAQ: AMZN), and eBay Inc. (NASDAQ: EBAY) are either all sitting with large amounts of cash or will be very soon.

We have broken out these technology, IT, software, and Internet companies by the cash amount they hold or what they have in a soon-to-be cash balance.  Of course only a fraction of this cash will be used for mergers.  But there is also a ton of room here for dividends and of course the share buybacks.

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Posted on: November 12, 2009 – 11:31 am in Consumer Electronics, Cramer, Dividend, Editor's Picks, Internet, Large Cap Stocks, Mergers and Buy Outs, PC Companies, Private Equity, Rumors, Semiconductor, Software, Stock Buybacks, Technology Companies, Telecom, , , , , , , , , , , , , , , , , , , ,

Corel & Vector: From Strange to Stranger (CREL)

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Corel LogoWe had already commented on hoe the merger offer for Corel Corp. (NASDAQ: CREL) from majority owner Vector Capital might be the strangest merger paths of this decade.  The strange can always get stranger.  Vector Capital had already raised its buyout price for the software company.
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Posted on: November 12, 2009 – 9:50 am in Mergers and Buy Outs, Software,

Tech Strangeworld: 3Com Bought by H-P (COMS, HPQ, CSCO, IBM)

HO LogoSometimes the unimaginable happens, and that is today.  3Com Corporation (NASDAQ: COMS) is being acquired, and in a deal that won’t run regulatory risk at least over China having access to core technology.  Hewlett-Packard (NYSE: HPQ) is the surprise buyer.

H-P is buying the networking and routing company for a price of $7.90 per share in cash, which comes to an enterprise value of about $2.7 billion.   The deal has also been approved by the boards of directors at each company.  Based upon Cisco Systems Inc. (NASDAQ: CSCO) expanding its reach further out into data centers and beyond and based on some recent moves from IBM (NYSE: IBM), this is actually a lower surprise than had this been announced a year ago.  That would make one wonder what moves those companies will make.
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Posted on: November 11, 2009 – 4:30 pm in Earnings, Mergers and Buy Outs, Technology Companies, , , ,