Friday, 30 September 2011

Mergers & Acquisitions - Week Ending 30/09/11

On Monday, Alibaba announced that it would spin off HiChina, its web hosting unit. The Chinese tech firm was down 8.4%. Also that day, Berkshire Hathaway said that it would buy back up to $23 billion worth of its shares in order to support their dwindling price. This comes as a surprise to many who believed that Berkshire’s $43 billion in cash had been earmarked for acquisitions. The conglomerate, which has the highest share price on the market, was up 8%. The following day, RenRen purchased, which hosts video content uploaded by users, for $80 million. The Chinese social networking site finished the day 4.5% higher.

The other two deals of the week came on Thursday, when Saab Automobile sold its Spyker Cars unit for $43.5 million to North Street Capital, a private equity firm. This deal is the latest in a string of efforts to save Saab. The Swedish car manufacturer was down 1.2%. Also that day, Nationwide Mutual Insurance acquired fellow insurer Harleysville Group for $1.6 billion. The Pennsylvania-based firm will be absorbed by Nationwide’s property and casualty unit. The target was boosted a massive 87% by the bell, reflecting the huge premium tendered by Nationwide.

Friday, 23 September 2011

Mergers & Acquisitions - Week Ending 23/09/11

On Monday, Tyco International announced that it planned to split into 3 publicly traded businesses; an alarm unit, a flow control unit and a commercial and security unit. It is the latest in a string of troubled companies to combat the tough climate by spinning off units. They were up 2.4%. The midweek saw the end of a drawn out hostile takeover battle as Fosters' shareholders accepted SABMiller’s sweetened bid of $10.15 billion. The buyer, a brewing and beverage company, was down 1.9% while Australia’s largest brewer was boosted almost 6% on the news. Also that day, United Technologies purchased Goodrich Corporation, an aviation company, for $16.4 billion in an all cash deal. The technology giant finished 1.5% lower, as the target fell 2.1%.

On Thursday, Sumitomo Metal Industries and Nippon Steel agreed to merge under the latter company title, creating the 2nd largest steel maker on earth in a deal worth around $22 billion. Also that day, Yum! Brands sold 2 fast food units; ‘Long John Silver’s’ and ‘A&W Restaurants’ for an undisclosed fee. The buyers were both consortiums; ‘LJS Partners’ and ‘A Great American Brand LLC’. The quick service restaurant holding company, whose other brands include KFC and Pizza Hut, dropped 3% by the bell.

Friday, 16 September 2011

Mergers & Acquisitions - Week Ending 16/09/11

On Monday, McGraw-Hill said that it would split in two; separating its business information and educational units in an attempt to improve the standing of its listless share price. It closed up 4%. Broadcom purchased NetLogic Microsystems for $3.7 billion in an all-cash deal. The semiconductor firm wants to compliment its current communications range with more advanced networking chips. The buyer fell by 1.1%, while NetLogic was boosted by 50%, reflecting the massive premium offered. Also that day, engineering firm Charter International was bought by Colfax for $2.4 billion. The global supplier of pumps and valves was down 8.6%.

The next major deal came late on Wednesday, when Teradyne, acquired fellow test-equipment manufacturer LitePoint Corporation for $510 million. Despite this large expansion, shares in the buyer were relatively unaffected. The following day, GTCR announced that it would buy Fundtech $390 million. The private equity firm plans to combine it with BankServ, a money transfer company. The financial software provider jumped 32% by the bell.

Friday, 9 September 2011

Mergers & Acquisitions - Week Ending 09/09/11

On Tuesday, Temple-Inland, a packaging and building products firm, accepted International Paper’s increased offer of $3.7 billion. The target was boosted 25.3%, while the world’s largest paper maker jumped 8.9%. Also that day, Lufkin Industries said it would buy all of the assets of Quinn’s Oilfield Supply for $303 million. This significant move into the Canadian market saw the buyer end the day 2.7% higher. The midweek saw Vallares, an investment vehicle part-owned by former BP CEO Tony Hayward, purchase Genel Energy for $2.2 billion. (Price changes for Vallares are currently unavailable).

On Thursday, Google acquired Zagat, an online restaurant and bar review service. Although details were undisclosed, the price tag is likely to have been between $100 and $200 million. The world’s largest search engine was relatively unaffected; up 0.2%. The following day, Scotiabank bought a 20% stake in Bank of Guangzhou for $723 million. Despite being the latest in a string of financial institutions to invest in the world’s fastest growing country, the Canadian bank fell 3% by the bell.

Friday, 2 September 2011

Mergers & Acquisitions - Week Ending 02/09/11

On Monday, it was announced that Alpha Bank and Eurobank would merge, creating the largest lender in Greece; with assets totalling $212 billion. The banks hope to strengthen their capital positions in the face of the debt crisis. Both shares were boosted around 30%. AuRico Gold purchased Northgate Minerals for $1.48 billion. This is the latest in a string of such acquisitions in the face of soaring gold prices. The buyer was down 18.5%, while Northgate rose 28%. The following day saw further action in mining, as Macarthur Coal accepted a $5.2 billion bid from ArcelorMittal and Peabody Energy. The Australian mining firm has been the target of several acquisitions recently, and rose 0.4% upon its sale. ArcelorMittal and Peabody finished the day up 4.7% and 3.1% respectively. Also that day, Investor Carl Icahn has agreed to sell his $310 million stake in Lion’s Gate after a long struggle between him and management in the company. The global entertainment firm fell around 3%.

The midweek saw Sony, Hitachi and Toshiba merge their LCD businesses by working with a government backed fund in an attempt to defend against increasing foreign competition; with each of the Japanese electronics manufacturers taking a 10% stake in the venture. Hitachi rose 1.2%, while Sony and Toshiba rose 2.8%. On Thursday, IBM bought Algorithmics, a risk analytics company for $387 million. Despite this attempt to increase its presence in the financial services market, the buyer dropped 0.9%.