Friday, 6 May 2011

Mergers & Acquisitions - Week Ending 06/05/11

Teva Pharmaceuticals got the ball rolling this week with a $6.8Bn deal to purchase Cephalon. Word of this takeover managed to turn around a midday slump for them, they closed up over 3% on Monday. It did little to help Cephalon’s stock however; they closed down 3%. Later that day, it was announced that eco-friendly supply chain regulator BioJet International and Abundant Biofuels, the renewable energy company, would merge, with the latter becoming a fully owned subsidiary of BioJet whilst still retaining the Abundant name.

The midweek saw Applied Materials acquire Varian Semiconductor for $4.9 billion, equivalent to $63 dollars a share, giving them a whopping 55% premium on their previous close. While this didn’t do much for the buyer’s share price (down about 1%), it sent Varian Semiconductor’s price up just over 50% as expected.

On Friday, The Warner Music Group announced that it would be bought out by former board member, Len Blavatnik for a figure in the range of $3.3 billion in an all-cash deal. The Russian billionaire’s holding company Access Industries paid a premium of 34% on the company’s average share price in the last 6 months, with this news boosting the record label’s stock price by 3.5% at weeks end.