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.