Friday, 18 May 2012

Mergers & Acquisitions - Week Ending 05/18/12


On Monday, Concho Resources purchased the Three Rivers Operating Company for $1 billion. This news, which continues the strong trend of energy deals, will give Concho access to 1,500 new drilling locations in the Southern US. Prior to the deal, the target had been planning to go public. The oil and gas company gained 3.2%. Also that day, Ally Financial's mortgage unit filed for bankruptcy. It is believed that ResCap has long weighed down its parent's otherwise profitable financial operations.
On Thursday, Sears Holdings announced that it would divest 44 percent of its 95 percent stake in Sears Canada, a unit which has been seemingly holding it back as it looks to recover in a tough environment. This deal, will also free up cash for the ailing retailer, includes a caveat that hints towards further spinoffs. The seller was up over 3%, while Sears Canada fell almost 13%. Also that day, Agilent Technologies bought cancer diagnostics company Dako for $2.2 billion. The bidder is looking to strengthen its presence in the life sciences industry. The scientific instruments maker was down 0.3%.