Friday, 27 January 2012

Mergers & Acquisitions - Week Ending 01/27/12


On Monday, Apache Corporation purchased Cordillera Energy for $2.85 billion. This is the latest in a string of deals involving shale formations, which are recovered using a controversial process known as fracking. The oil and gas firm gained 1.6% on the news. Also that day, Pan American Silver bought rival Minefinders for $1.5 billion. Precious metals prices remain high as investors look beyond stocks for safer investments. Pan American is looking to be the world's largest producer of silver. The bidder fell 9.8% as the target jumped almost 23%. The following day, HSBC sold its operations in Costa Rica, El Salvador and Honduras to Banco Davivienda of Colombia for $801 million. This comes as Europe's largest bank look to cut costs by divesting its less profitable units. The vendor was down 0.2%. Also that day, SPX Corporation spun off its auto tools unit to Robert Bosch for $1.15 billion. The industrial giant is looking to shift its focus to its tech unit. SPX were up 1.6%.

Thursday saw 2 major deals in the glowing biotech sector. Amgen took over blood cancer and tumour specialist Micromet for $1.16 billion. The buyer grew by 1.6% while Micromet was boosted a massive 32% mirroring the premium offered. Following this, Celgene acquired Avila Therapeutics for $575 million. The firms expect to see significant synergy in their Cancer offerings. Celgene dropped 1.5%. The following day, Eastman Chemical absorbed rival chemical company Solutia in a $3.38 billion deal. It believes that this purchase will enable expansion into developing markets, like China. The bidder increased by 7%, while the target soared 41%, reflecting the large premium being paid.