Friday, 3 June 2011

Mergers & Acquisitions - Week Ending 03/06/11


On Monday Fortis acquired Central Vermont Public Service for €470 million. This had negative implications for the buyer, with the utility giant down over 2%. Central Vermont was up over 40% reflecting the large premium being paid. Tuesday saw Ashland buy International Speciality Products for $3.2 billion in an all-cash deal. This was met with positive market sentiment, with the buyer up 11%. Also that day, KKR acquired Academy Sports and Outdoors for an undisclosed fee. This news gave only a small boost to the private equity firm, they were up 0.5%. Later on, it was announced that Intact Financial Corp. would buy the Canadian part of AXA for $2.6 billion. This did little for the Canadian insurer’s share price; it fell almost 1%, while shares in AXA were up 3% by market close.

A hectic midweek saw Sealed Air purchase Diversey Holdings for $2.9 billion. This was unable to prevent the Sealed Air share price falling 7%. Lenovo bought PC maker Medion for $909 million. Despite increasing their share in the German market, the buyer was down 3% on this news, while Medion was up 17%. Also on Wednesday, Marathon Oil Corporation purchased shale assets worth $3.5 billion. They closed down almost 3%. Following shareholders’ approval, Alpha Natural Resources purchased Massey Energy for $7.1 billion. The deal was greeted negatively on the markets; Massey finished the day 1% lower, while Alpha were down over 2%.
On Thursday, Progress Energy Resources sold half of its shale venture in British Colombia to Petronas for over $1 billion. The gas giant was up 4% on this news. BankUnited purchased Herald National Bank for $71.4 million. However shareholders may not have been happy with what was offered; Herald was down almost 4%. The buyer was down 2%.