Friday, 19 August 2011

Mergers & Acquisitions - Week Ending 19/08/11

On Monday, Time Warner Cable announced that they would buy Insight Communications, a provider of cable television in the Midwestern US, for $3 billion. Despite gaining more than half a million customers, the buyer fell by 0.75%. Also in media, Virgin sold a 50% stake in UKTV to Scripps Network Interactive for $552.4 million. Scripps’ price increased by 0.75%, while the seller was boosted 4.3%. Berkshire Hathaway disclosed in a filing that they had acquired 0.5% of Dollar General. The discount retailer was up around 3.6% in after hours trading, while Warren Buffet’s famed holding company rose almost 1%. That day also saw the week’s biggest acquisition, as Google purchased Motorola Mobility Holdings for $12.5 billion. This move into the cellphone business comes as the web giant’s mobile platform, Android, continues to grow as smartphones become increasingly popular. The buyer fell 1%, while Motorola Mobility was boosted 56%, representing the massive premium being offered.

The midweek saw Cree bought Ruud Lighting for $583 million. The semiconductor maker was down 4%. On Thursday, Asahi Group Holdings took over Flavoured Beverages Group Holdings for $1.3 billion. The Japanese alcohol manufacturer was up 1.7%. Noble Energy acquired a 50% stake in a shale venture owned by Consol Energy for $3.4 billion. Noble was down 5.6%, while the seller was up 0.4%. Hewlett-Packard announced that it would buy Autonomy, a software producer in the UK for $11.7 billion. In after hours trading, the buyer was down 21%, while Autonomy was 64% higher; in line with the premium offered. Also that day, Liberty Media bought a $204 million stake in Barnes & Noble. Liberty fell around 5% as the troubled bookseller dropped 7%.