Friday, 10 June 2011

Mergers & Acquisitions - Week Ending 10/06/11


On Monday, it was announced that Statoil would sell its 24% stake in Gassled, a joint pipeline venture, to Solveig Gas Norway for $3.2 billion. Shares in the Norwegian oil giant were trading down almost 2%. Daimler and Rolls Royce gained a majority stake in Tognum, now with a combined holding of 60%. The price offered by the auto firms valued the German engine maker at $4.9 billion. Shares in Tognum were only marginally affected, while Daimler and Rolls Royce fell by 0.8% and 0.24% respectively. French investment house Eurazeo purchased a 45% stake in Moncler, an Italian fashion brand for around $620 million. Shares in the buyer were down almost 0.4%. Also that day, Goldman Sachs agreed to sell Litton Loan Servicing to Ocwen Financial Corporation for $263 million. This sale comes as a result of controversy over the bank’s involvement with foreclosures in the wake of the Subprime Mortgage Crisis. The seller was down 1% by market close and the buyer was down 1.6%.

The following day, the Greek Government sold 10% of Hellenic Telecom Organisation to Deutsche Telekom for $585 million in an effort to reduce its massive national debt. Hellenic, also known as OTE, was down over 6%, while shares in the German telecoms giant were up 0.5%. The midweek saw WellPoint, a large health insurer, agreeing to buy CareMore, a care provider for the elderly, for $800 million. The buyer’s share price was down almost 1%. On Thursday, the Taiwanese regulator said that it would support AIG’s sale of Nan Shan Life Insurance to a consortium led by Ruen Chen Investment Holding for $2.2 billion. Shares in the global insurer were boosted by almost 3% on this news. 

On Friday, Citic Securities agreed to buy a 20% stake in the research and brokerage units of Credit Agricole for $374 million. The Chinese brokerage was up 0.08%, while the French bank was down 1.3%. Also that day, a Namibian court gave the ok to Wal-Mart to takeover Massmart for $2.4 billion. The ruling was the result of an appeal by the Namibian regulator to have conditions attached to the supermarket’s acquisition. Despite the positive ruling, the world’s largest public corporation was down 1.7% as week’s end.