Saturday, 4 August 2012

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Friday, 3 August 2012

Mergers & Acquisitions - Week Ending 08/03/12

On Monday, Chicago Bridge & Iron purchased fellow engineering company Shaw Group for $3 billion. Through this, CBI believe that they can capitalize on the recent boom in energy; the target’s specialty. The bidder fell 14.15%, while Shaw jumped 55%, almost 20% short of the premium offered. Roper Industries acquired Sunquest Information Systems for $1.42 billion. The buyer feels that the diagnostics software firm will add significantly to their medical unit.  The industrial firm gained 1.1%. Also that day, Oracle absorbed Xsigo for an undisclosed fee. Oracle expects network virtualisation capabilities to enhance their cloud environments. The enterprise computing giant lost 0.6%. The following day, it was announced that MGM would buy back $590 million of its shares from activist investor Carl Icahn. This comes as part of the film group’s plan to go public in the near future; hoping that a public listing, along with upcoming blockbusters, could help it out of the financial hole its in. 

Later that day, Google took over Wildfire, a marketing firm focused on social media. Through this, they are looking to give clients in their core advertising business access to the whole spectrum of social networking sites. The internet titan was relatively unchanged. The midweek saw a controlling stake in the ‘Plaza’ taken on by the Sahara Group for $570 million. While the acclaimed New York hotel has been struggling in recent years, the Indian entrepreneurs feel that there may be high rewards when the hospitality market recovers. Also that day, the Toronto Stock Exchange was bought by the Maple Group for $3.7 billion. The consortium, which fended off the London Stock Exchange to close the deal, will look to improve the bourse by adding the facilities of its other trading firms. The final deal of the week came on Friday, when Heineken acquired a further 40 percent of Asia Pacific Breweries for $4.1 billion, giving it over 80 percent of its shares. This is part of the brewer’s aim to strengthen its presence in emerging markets. The bidder closed 4.4% higher.

Friday, 27 July 2012

Mergers & Acquisitions - Week Ending 07/27/12

Over the weekend, it was announced that NRG Energy would buy GenOn Energy for $1.7 billion. The move, which will create one of America’s largest power generation firms, is an attempt by the firms to survive in the face of falling electricity prices. NRG was up 8% while the target was boosted 26%, exceeding the premium offered. Monday saw action in transport, as Genessee & Wyoming purchased RailAmerica for $1.4 billion. The buyer is expecting this to increase their EPS by 10 percent. G&W and RailAmerica gained 0.6% and 9.8% respectively. United Technologies sold its Rocketdyne unit to GenCorp for $550 million. This comes as UTC looks to refocus on its core businesses. The seller dropped 1.3% while the defense and aerospace manufacturer jumped over 12%. Peet’s Coffee & Tea was acquired by Joh. A. Benckiser for $974 million. The conglomerate believes in Peet’s core values, as well as its long term growth prospects. The beverage company was elevated almost 28%, mirroring the premium offered. Dreamworks Animation absorbed Classic Media for $155 million. Through the deal, Dreamworks will add many popular family entertainment franchises to its portfolio. The entertainment company lost 0.4%. Later that day, VMware bought Nicira for $1.05 billion. With this deal, the software visualization firm steps into server visualization, a field with high growth forecasted. The buyer was down 0.4% on Tuesday.

The midweek saw MGN Gas Networks taken over by a consortium of Li Ka-shing’s companies for $1 billion. Mr Li believes that adding this to his complimentary businesses may help return the British gas firm to profitability. The markets didn’t agree as two of the bidders, Cheung Kong Holdings and Power Assets Holdings, fell 0.9% and 1.8% respectively. Shell announced oil and gas production sharing contracts with CNOOC and CNPC; two Chinese energy firms. The fields at the center of these deals are in West Africa and Changbei, China, respectively. The fight continues to meet China’s ever-increasing energy needs. The oil and gas firm closed 0.9% higher. Also that day, United Technologies divested its pumps and compressors unit Hamilton Sunstrand to BC Partners and the Carlyle Group for $3.46 billion. This is the latest in a string of non-core spin-offs to fund its takeover of Goodrich. Carlyle and the building systems and aerospace supplier gained 1.2% and 0.4% respectively. On Friday, Apple acquired AuthenTec, a mobile security group, for $356 million. An increase in software attacks on iOS has followed the recent surge in popularity, and Apple is now looking to bolster its security. The tech giant was up 1.8% while AuthenTec spiked over 66%, exceeding the premium offered.

Friday, 20 July 2012

Mergers & Acquisitions - Week Ending 07/20/12

Kicking off a busy day in health sciences, Monday morning saw GlaxoSmithKline buy biopharmaceutical company Human Genome Sciences for $3 billion. Through the deal, GSK will be looking to replenish their offerings as older patents expire. This followed months of negotiations and was greeted well by the markets, with the pharmaceutical giant and Human Genome up 0.7% and 4.5% respectively. The trend continued, as Thermo Fisher acquired One Lambda, a transplant diagnostics company, for $925 million in an all-cash deal. The medical instrument maker believes that this will provide a promising addition to their diagnostic offerings. The buyer fell 0.3%. TPG Capital purchased Par Pharmaceutical for $1.9 billion. This leveraged buyout agreement follows an auction process during which several private equity firms expressed interest in Par. The generic drug maker jumped 37%, in line with the premium offered. Also that day, Regis Corporation divested its hair restoration unit to Aderans, a Japanese wig maker, for $163.5 million. This move is part of a wider strategy by the hair care giant to refocus on its core businesses; it is also believed that other non-core units are also being assessed. The vendor and Aderans gained 2.2% and 1% respectively.

The following day, State Street absorbed Goldman Sachs’ hedge fund administration unit for $550 million. The deal will make the bank the largest provider of back-office services to hedge funds in the world; an area which has become much more lucrative in the past few years. State Street lost 6.4% while the seller was lifted 0.3%. TiVo took over TRA, a group which correlates viewing activity to consumer spending habits, for $20 million. This is expected to allow advertisers to pick networks and shows best positioned to sell their products. The television software company closed 0.3% higher. Autodesk acquired video authoring and publishing company Socialcam for $60 million. This comes as the design software maker is moving towards less-specialized products with mass market appeal. The bidder grew by 1.7%. Thursday brought the news that Cable operator Suddenlink Communications would be sold to BC Partners and the Canada Pension Plan Investment Board for $6.6 billion. Despite economic woes, defensive investors have noted that consumer demand for broadband, telephone and television services has remained strong. Georgia Gulf purchased the commodities unit of fellow chemicals firm PPG Industries for $2 billion. This will allow the PPG to focus on its core coatings business while making their counterparty a market leader for certain chemicals. The seller and Georgia Gulf were up 7.5% and 13% respectively. Also that day, Penguin Publishing absorbed Author Solutions, which allows people to publish their own books, for $116 million. Recently there has been a large shift towards self-publishing, and Penguin is hoping to derive value from the pool of almost 200,000 books that the target has published.