Friday, 3 August 2012

Mergers & Acquisitions - Week Ending 08/03/12

On Monday, Chicago Bridge & Iron purchased fellow engineering company Shaw Group for $3 billion. Through this, CBI believe that they can capitalize on the recent boom in energy; the target’s specialty. The bidder fell 14.15%, while Shaw jumped 55%, almost 20% short of the premium offered. Roper Industries acquired Sunquest Information Systems for $1.42 billion. The buyer feels that the diagnostics software firm will add significantly to their medical unit.  The industrial firm gained 1.1%. Also that day, Oracle absorbed Xsigo for an undisclosed fee. Oracle expects network virtualisation capabilities to enhance their cloud environments. The enterprise computing giant lost 0.6%. The following day, it was announced that MGM would buy back $590 million of its shares from activist investor Carl Icahn. This comes as part of the film group’s plan to go public in the near future; hoping that a public listing, along with upcoming blockbusters, could help it out of the financial hole its in. 

Later that day, Google took over Wildfire, a marketing firm focused on social media. Through this, they are looking to give clients in their core advertising business access to the whole spectrum of social networking sites. The internet titan was relatively unchanged. The midweek saw a controlling stake in the ‘Plaza’ taken on by the Sahara Group for $570 million. While the acclaimed New York hotel has been struggling in recent years, the Indian entrepreneurs feel that there may be high rewards when the hospitality market recovers. Also that day, the Toronto Stock Exchange was bought by the Maple Group for $3.7 billion. The consortium, which fended off the London Stock Exchange to close the deal, will look to improve the bourse by adding the facilities of its other trading firms. The final deal of the week came on Friday, when Heineken acquired a further 40 percent of Asia Pacific Breweries for $4.1 billion, giving it over 80 percent of its shares. This is part of the brewer’s aim to strengthen its presence in emerging markets. The bidder closed 4.4% higher.