Friday, 4 November 2011

Mergers & Acquisitions - Week Ending 04/11/11

On Monday, B&G Foods purchased Mrs. Dash and five other household brands from Unilever for $325 million in an all-cash deal. The consumer goods giant has been recently selling several of the kitchen brands it gained from last year’s takeover of Alberto Culver. The buyer was up 8.3%, while the Unilever was down 1.5%. The following day, it was announced that BB&T Corporation would pay $301 million for $5.4 billion in loans and deposits from BankAtlantic. The commercial bank agreed to take only the best assets, leaving the seller with millions in troubled loans. Despite the deal expanding BB&T’s operations in the southeast, they fell 3.7% as BankAtlantic’s parent was boosted a massive 111%. Also that day, web powerhouse Yahoo bought InterClick for $270 million in order to improve its data targeting solutions for advertisers. The audience intelligence firm grew by 21%, reflecting the large premium being paid, while Yahoo closed 4.5% lower.

After hours on Thursday saw Billionaire Carl Icahn disclose an increase in his WebMD stake to 9.5%. Mr Icahn has been known to advise his companies to change strategy in order to raise their share price. The health information website was almost 1% higher the following day. On Friday, mining firm Anglo American said that it had increased its stake in De Beers to as much as 85% in exchange for $5.1 billion in cash. It has been hinted that the Oppenheimer family relinquished control of the company, which produces one third of the world’s diamonds, to diversify their portfolio. Anglo American was up 1.4%. Also that day, Kirin Holdings acquired the remaining 49% stake in Brazilian brewer Chincariol Participacoes e Representacoes following its purchase of a 51% stake in August. The deal was worth around $1.35 billion. They hope that gaining full ownership will help them improve governance and efficiency at Chincariol. The Japanese food and beverage firm dropped 0.6%.