Saturday, 31 December 2011

Mergers & Acquisitions - Week Ending 30/12/11

Tuesday saw a $924 million deal, as EDF increased its stake in Edison, an Italian utility firm, to 81 percent. This move comes as Europe's largest power company look to increase their foothold in the country. The buyer was relatively unchanged on the news, while the target lost 1.7%. Also that day, MetLife sold its $10.5 billion retail banking unit to GE Capital. This is believed to be a result of the threat of increased regulation for the insurance giant. The bidder fell 1.2%, as the vendor gained 0.3%.

The following day saw a similar sale, as Citigroup spun off its retail banking operations in Belgium to Credit Mutuel Nord Europe for an undisclosed fee. This deal fits in with CMNE's expansionary tactic in Western Europe. The seller lost 2.9%. On Thursday, Alexion Pharmaceuticals acquired Enobia for a total of $1.1 billion. The buyer citied a life-saving drug currently in production by the firm as a bullish sign. They were relatively unchanged during the day’s trading. On Friday, OTE sold its 20 percent stake in Telecom Serbia for $512 million. The Greek telecoms operator said that they will use proceeds from the sale to reduce their debt, which stands at almost $1 billion. Deusche Telecom, OTE's parent, was 0.4% higher by the bell.