Friday, 2 March 2012

Mergers & Acquisitions - Week Ending 03/02/12


Setting the pace for what was a relatively quiet week deal wise; Motorola repurchased $1.17 billion worth of shares from activist investor Carl Icahn on Monday as part of a share buyback plan. Despite him selling most of his shares, he will remain one of their largest shareholders, and stated that he applauded the board for the move, terming it “responsible behaviour”.  The tech firm and Icahn Enterprises dropped 0.1% and 0.9% respectively.Also that day, the Blackstone Group invested $2 billion into Cheniere Energy Partners, which will help them to build a facility to allow for the compression and distribution of natural gas. The private equity firm lost 1.1% while Chinere were boosted 13.4%. The final deal of the week came on Wednesday, when AMD acquired SeaMicro for $334 million. The Silicon Valley start-up manufactures “microservers” into which AMD plans to integrate some of its new chips. It hopes that bold moves like this will help it overtake Intel as the largest processor maker. The markets felt differently however, as buyer fell 2.26%.