Friday, 13 July 2012

Mergers & Acquisitions - Week Ending 07/13/12

On Monday, the Campbell Soup Company acquired rival Bolthouse Farms for $1.55 billion. This will allow the buyer to strengthen its beverage unit in the face of slowing soup sales. The food company lost 0.8%. WellPoint purchased health benefits specialist Amerigroup for $4.9 billion in an all-cash deal. The insurer sees this as a handsome addition to its portfolio as Obama’s Affordable Care Act comes into effect; giving it an impressive share of both the Medicaid and Medicare markets.  The bidder was up 3.4%, while Amerigroup jumped 38%; 5% below the premium offered. Later that day, Intel bought a 15 percent stake in ASML Holding for $4.1 billion. They plan to use their stake in the semiconductor supplier to fast-track the development of a new technology called extreme ultraviolet lithography. The chipmaking giant fell 2.3% as the target was boosted 8.5%.

The following day, Comcast agreed to sell a 15.8 percent stake in A&E to its owners Walt Disney and Hearst for $3 billion. The television network has performed well since its inception in 2009. Comcast increased by 0.26%, while the entertainment giant dropped 1.3%. On Thursday it was announced that Dentsu would buy Aegis for $4.92 billion. The Asian advertising company will be looking to use this deal as a springboard for international expansion. Dentsu was down 7% while their British rival soared 44%, reflecting the large premium offered. Also that day, private equity firm Permira sold Valentino Fashion Group to Mayhoola for Investments for $856 million. Many luxury brands have managed compensate for growth lost in Europe by going global; the fashion house is currently seeing strong expansion in emerging markets.