Merger Talk

Google reportedly in talks to buy Groupon for $3 billion

2010-11-19T09:25:00.000-05:00

Google is in talks with to buy Groupon for more than $3 billion, AllThingsD reports, citing “multiple sources close to the situation.” The story says Yahoo offered to buy the local deals site earlier this year for $2 billion to $3 billion. The piece also noted that the talks might not result in a deal.

The story noted that there could be other buyers, and cited Microsoft (MSFT),Amazon (AMZN) and eBay (EBAY) as potential alternative bidders.

Both Google and Groupon have declined to comment.

Caterpillar To Buy Mining-Equipment Company Bucyrus For $7.6B

2010-11-15T09:16:00.000-05:00

PEORIA, Ill. and SOUTH MILWAUKEE, Wis. – Caterpillar Inc. (NYSE: CAT)

and Bucyrus International, Inc. (Nasdaq: BUCY) announced today they have entered into

an agreement under which Caterpillar will acquire Bucyrus International in a transaction

valued at approximately $8.6 billion (including net debt). The acquisition is based on

Caterpillar’s key strategic imperative to expand its leadership in the mining equipment

industry, and positions Caterpillar to capitalize on the robust long-term outlook for

commodities driven by the trend of rapid growth in emerging markets which are

improving infrastructure, rapidly developing urban areas and industrializing their

economies.

Under the terms of the transaction, which has been approved by the boards of

directors of both companies, Bucyrus shareholders will receive $92 per share, $7.6 billion

in aggregate consisting of all cash. The transaction represents an implied premium of 32

percent to Bucyrus' share price as of November 12, 2010. Caterpillar will fund the

acquisition through a combination of cash from the balance sheet, debt and up to $2

billion in equity. The transaction is expected to close in mid-2011. Caterpillar intends to

locate its mining business headquarters in South Milwaukee, Wisconsin, where Bucyrus

headquarters is currently located, and maintain the Bucyrus brand for the principal

Bucyrus legacy products.

“For several years, mining customers have been asking us to expand our range of

products and services to better serve their increasingly complex requirements,” said

Caterpillar Chairman and CEO Doug Oberhelman. “This announcement says to those

customers, we heard you loud and clear. It is a strong statement about our belief in the

bright future of the mining industry. Our strategy calls for disciplined investment in

attractive industries that value our product and service delivery model," Oberhelman said.

"Our performance through the global economic turmoil of 2008-2009 allowed us to

emerge with a strong balance sheet and the ability to make strategic investments in

companies like Bucyrus. This, and other recent acquisitions, will position Caterpillar for

industry leadership and will be positive for our stockholders, customers and employees.”

Tim Sullivan, Bucyrus President and CEO, said, “This is an outstanding and

financially compelling transaction for our shareholders. More fundamentally, it is a

testament to the tremendous value our talented team of employees has created over the

past several years and to the strength of our brand in the global mining machinery

marketplace. I am confident that we have found an excellent partner in Caterpillar.

Caterpillar is a first-rate global company and it shares our commitment to providing

innovative products and exceptional service to customers, creating a collaborative and

safe work environment for employees and minimizing the impact on the environment.

We are very pleased that Caterpillar has committed to locate its mining business

headquarters in Milwaukee and we are confident that the combined global platform will

be extremely well positioned to capitalize on the substantial growth opportunities in this

market in the years ahead.”

The closing of the transaction is subject to regulatory approvals, customary

closing conditions and approval by Bucyrus stockholders. At that time, Caterpillar Group

President Steve Wunning will have executive office accountability for Bucyrus, along

with his current responsibilities for the company’s mining business.

“Even today at mine sites around the world, our customers are using Bucyrus

shovels to load Caterpillar mining trucks,” Wunning said. “This combination, as well as

the significant expansion in products and facility capacity already announced, gives us

the opportunity to expand the range of surface and underground mining products and

solutions offered to customers by Caterpillar and its dealer network.”

A driving motivation for the transaction is Caterpillar’s estimate of more than

$400 million in annual synergies beginning in 2015 derived from the combined financial

strength and complementary product offerings of the combined mining equipment

businesses.

Synergies driven by the acquisition include:

• Market leading sales and support capabilities of Caterpillar dealers and a

broad, one-stop shop for global mining customers

• Caterpillar Remanufacturing products and services for Bucyrus equipment

• Caterpillar engines and components to enhance performance and lower owning

and operating costs for Bucyrus equipment

• Additional scale and cost efficiencies in areas such as purchasing and engineering

• Deployment of manufacturing best practices through the Caterpillar Production

System

Advisors:

J.P. Morgan Securities LLC served as exclusive financial advisor for Caterpillar

and has provided committed financing for the transaction. Mayer Brown LLP, Sidley

Austin LLP and Howrey LLP served as legal advisors for Caterpillar.

Deutsche Bank Securities Inc. and UBS Investment Bank served as financial

advisors for Bucyrus. Sullivan & Cromwell LLP and Arnold & Porter LLP served as

legal advisors for Bucyrus.

The Daily Beast acquires Newsweek

2010-11-12T09:03:00.000-05:00

The Daily Beast agreed to acquire Newsweek, Inc. on November 11, 2010. The Daily Beast and Newsweek will merge to form The Newsweek Daily Beast Company which will be equally owned by Sidney Harmon and IAC/InterActiveCorp. Under the new structure, Newsweek will remain a printed weekly magazine, but its web operations will be incorporated into the Daily Beast's website. Tina Brown will become editor-in-chief of the newly merged operation of both publications. Harman will be executive chairman of the new venture while Daily Beast President Stephen Colvin will be Chief Executive Officer. The management will report to an independent board with IAC chairman Barry Diller serving as a Board Member.

EMC acquires Bus-Tech

2010-11-12T08:58:00.001-05:00

EMC® Corporation (NYSE: EMC), the world’s leading provider of information infrastructure solutions, today announced it has acquired Bedford, Massachusetts-based Bus-Tech®, Inc. Bus-Tech is a privately held provider of VTL (Virtual Tape Library) solutions that utilize open systems disk storage to store and retrieve mainframe tape data. Bus-Tech products enhance EMC solutions for mainframe batch processing, backup and recovery, disaster recovery, and data archiving applications. Bus-Tech now becomes part of the rapidly growing EMC Backup Recovery Systems division, which delivers next-generation, disk-based backup and recovery solutions. The acquisition is not expected to have a material impact to EMC GAAP and non-GAAP EPS for the full 2010 fiscal year.

The opportunity for mainframe users to eliminate tape infrastructure and embrace next-generation disk-based backup solutions is being driven by mainframe virtual tape and data deduplication technologies. Bus-Tech and EMC are technology and market leaders in these respective categories. IDC estimates mainframe tape storage and media revenues will be $2.5 billion between 2010 and 2014, creating a significant market opportunity for disk-based storage in mainframe tape environments. The combination of EMC disk library and EMC deduplication storage systems with Bus-Tech mainframe virtual tape library controllers gives mainframe users a simple, cost-effective way to eliminate complex and aging tape-based systems. This accelerates their batch, backup and disaster recovery processes while providing automation and reliability levels that tape-based systems simply cannot deliver.

Frank Slootman, President of EMC’s Backup Recovery Systems division, said, “Mainframe users are not immune to the challenges with tape when it comes to backup and recovery. In a few short years, the application of data deduplication and disk-based storage has literally transformed the backup market. The addition of Bus-Tech will enable us to deliver a suite of next-generation mainframe backup products that are highly differentiated in terms of performance, integration and supportability.”

Bus-Tech has been a member of the EMC Select partner program since 2004, and has been an EMC OEM partner since March of 2008. Bus-Tech most recently collaborated with EMC in July of 2010 to help deliver the Deduplication Storage Expansion option for the EMC DLm960 Disk Library for Mainframe, which was based on the widely adopted EMC Data Domain® DD880 deduplication storage system. The pairing of Bus-Tech mainframe

Al Brandt, President of Bus-Tech, said, “This acquisition begins a new and very exciting chapter for Bus-Tech and its employees. EMC’s Backup Recovery Systems division has sustained a market trajectory to which we will soon be contributing. Bus-Tech’s solutions span the full range of mainframe customer types, so the potential associated with this combination is significant. We are looking forward to a very productive future as members of the EMC family.”

Oracle Buys ATG

2010-11-11T08:57:00.000-05:00

Oracle announced today that it has agreed to acquire Art Technology Group, Inc. (NASDAQ: ARTG), a leading provider of eCommerce software and related on demand commerce optimization applications, through a cash merger for $6.00 per share, or approximately $1.0 billion. ATG’s solutions enable enterprises to provide a cohesive online customer experience with sophisticated merchandising, marketing, content personalization, automated recommendations, and live-help services.

ATG’s eCommerce software platform is the industry’s top-ranked, cross-channel commerce solution and is highly complementary to Oracle’s CRM, ERP, Retail, and Supply Chain applications, as well as its portfolio of middleware and business intelligence technologies. ATG also offers on demand commerce optimization applications that provide companies with an online presence, the ability to improve customer satisfaction through immediate service response and automated recommendations.

Together Oracle and ATG expect to help businesses grow revenue, strengthen customer loyalty, improve brand value, achieve better operating results, and increase business agility across online and traditional commerce environments.

The transaction is subject to stockholder and regulatory approval and other customary closing conditions and is expected to close by early 2011.

“Driven by the convergence of online and traditional commerce and the need to increase revenue and improve customer loyalty, organizations across many industries are looking for a unified commerce and CRM platform to provide a seamless experience across all commerce channels,” said Thomas Kurian, Executive Vice President Oracle Development. “Bringing together the complementary technologies and products from Oracle and ATG will enable the delivery of next-generation, unified cross-channel commerce and CRM.”

“More than 1,000 global enterprises rely on ATG’s solutions to help increase the value of their online customer interactions,” said Bob Burke, President and CEO, ATG. “This combination will enhance the ability to bring all their commerce activities together – creating a more consistent and relevant experience for their customers across all interaction channels, including online, in stores, via mobile devices and with call centers.”

“The addition of ATG, which brings market-leading products used by some of the largest and most well-known retailers and brands, furthers Oracle’s strategy of delivering industry-specific enterprise applications,” said Bob Weiler, Executive Vice President, Oracle Global Business Units. “This acquisition builds upon our dedication to offer the most complete and integrated suite of best-of-breed software applications and technologies required to power the most demanding companies in the world in every industry.”

WPP plc acquires behavioral targeting firm I-Behavior

2010-11-10T10:15:00.001-05:00

Acquirer:

WPP plc, together with its subsidiaries, offers various communications services worldwide. It provides global, national, and specialist advertising services; above- and below-the-line media planning, buying, and specialist sponsorship and branded entertainment services; and specializes in brand, consumer, media, and marketplace insight, as well as works with clients to generate and apply insights. The company also offers corporate, consumer, financial, and brand-building services; consumer, corporate, and employee branding and design services, covering identity, packaging, literature, events, training, and architecture; a range of general and specialist customer, channel, direct, field, retail, promotional, and point-of-sale services; and integrated healthcare marketing solutions, including advertising, medical education, and online marketing. In addition, WPP provides a range of specialist services comprising custom media and multicultural marketing, event, sports, youth, and entertainment marketing; corporate and business-to-business; and media, technology, and production services. Further, the company offers a CPM-based media network representing inventory from over 950 publishers; a publisher-side advertising management platform; online marketing and measurement, search solutions, and email marketing; digital production; an interactive agency; addressable advertising system for cable and satellite operators; social media; Web analytics tools for publishers; an Internet-based advertising agency; an online video game network; and an integrated Web marketing suite. Additionally, it develops technology products that enhance the process of acquiring, optimizing, and measuring digital media; and creates turnkey mobile solutions for handset manufacturers and wireless operators, as well as mobile branding, promotion, and marketing solutions. WPP was founded in 1971 and is based in Dublin, Ireland.

Target:

I-Behavior, Inc., a behavioral targeting company, provides database marketing solutions for multi-channel marketers and advertisers. The company delivers the modeling performance, price, and bottom-line results. It offers products and services for acquisition, retention, and optimization. I-Behavior focuses on direct targeting, online targeting, and retail based on buying behavior across industry verticals, including catalog, retail, continuity, and solo offers. The company is based in Louisville, Colorado.

Terms of the deal were not disclosed.

J&J to buy breast implant maker Mentor for $1.07B

2008-12-02T06:32:00.000-05:00

Monday December 1, 5:16 pm ET
By Linda A. Johnson, AP Business Writer

Johnson & Johnson to buy implant maker Mentor for $1.07B, move into cosmetic surgery business

TRENTON, N.J. (AP) -- In a move to become a major player in cosmetic and reconstructive surgery, health care products company Johnson & Johnson said Monday it will buy cosmetic-product and breast-implant maker Mentor Corp. for $1.07 billion.

Analysts said J&J is paying "a giant premium" for the maker of MemoryGel breast implants, liposuction equipment and "barrier" skin repair products, with an eye to their long-term value for an aging population.

Under the deal, J&J will start a cash tender offer for $31 per share -- nearly double Mentor's Friday closing price of $16.15 -- for a total of $1.07 billion. J&J will assume Mentor's net debt, about $50 million, and make company a stand-alone unit in its Ethicon Inc. business, a top provider of sutures, mesh and other surgical products.

"For Mentor, what a payday!" said Erik Gordon, associate dean and head of biomedical industry programs at Stevens Institute of Technology.

Mentor shares jumped $14.43, or 89 percent, to $30.58; J&J shares, weighed down by a big decline in the broader market, fell $3.25, or 5.6 percent, to $55.33.

"It's a good space for J&J to get bigger in because it's a space with the least cost-control pricing pressures," as patients, rather than insurers or government health programs, generally pay for cosmetic surgery, Gordon said.

Johnson & Johnson doesn't have a cosmetic surgery franchise per se, but this summer it launched a collagen-based skin filler called Evolence. Some products made by Ethicon and by Ethicon Endo Surgery, which makes devices for stomach-reduction and other operations, increasingly are being used in plastic surgery, including sutures, mesh implants for facelifts, and harmonic scalpels, J&J spokesman Bill Price said.

"Mentor's going to become sort of a cornerstone for ... our strategy to become a major player in this area," he said.

Santa Barbara, Calif.-based Mentor has about 1,300 employees and had $373 million in 2007 sales.

"The addition of Mentor, a market-leader and one of the most respected companies in the aesthetic space, expands our capacity to provide physicians with products that can restore patients' appearance, self-esteem and quality of life," Alex Gorsky, the J&J company group chairman overseeing Ethicon, said in a statement.

The deal is expected to shave 3 to 5 cents per share off of J&J's 2009 earnings. Both companies' boards of directors have approved the deal, expected to close during the first quarter.

Mentor's chief executive, Josh Levine, will stay on as a member of Ethicon's global management board, Price said. Significant layoffs are not expected.

Analyst Dr. Sean Lavin of Lazard Capital Markets wrote that Johnson & Johnson "is purchasing Mentor at an optimal time, as the stock was down nearly 60% year to date."

Lavin doesn't expect other buyers to emerge, adding, "We cannot think of another company in as synergistic a position," given that J&J salespeople regularly call on general and plastic surgeons and dermatologists.

Mentor's key competitor in the breast implant market is Allergan Inc., the Irvine, Calif.-based maker of Botox. Mentor is developing its own antiwrinkle injection and dermal fillers to compete.

Most of Mentor's sales are in the U.S. and J&J, with a huge global sales operation, sees an opportunity to expand the business elsewhere, Price said.

The Mentor deal is the second buyout in as many weeks for cash-rich J&J, which on Nov. 24 bought biotech company Omrix Biopharmaceuticals Inc. for $438 million. The deal, expected to close late this month, will add products used to control bleeding during surgical procedures.

Gordon said he expects more acquisitions -- by J&J and also by pharmaceutical companies that have too weak a pipeline to support their overhead and need to either acquire products or merge with another large company and slash costs.

Overall, portions of the health care sector with cash-heavy balance sheets, such as big drugmakers, have been more open to acquisitions during the current recession.

AP Business Writer Damiam Troise in New York contributed to this report.

Carl Icahn raises his stake in Yahoo

2008-11-30T07:58:00.000-05:00

Billionaire investor Carl Icahn invests an additional $67 million into Yahoo

NEW YORK (AP) -- In a move likely to fuel speculation over Yahoo Inc.'s search for a new chief executive, activist investor Carl Icahn has bought up close to 7 million additional shares of the Internet company, according to regulatory filings.

Icahn, a billionaire hedge-fund manager who threatened to oust Yahoo's board this summer after it rejected a deal with Microsoft Inc., snapped up about $67 million worth of shares over three days this week, according to a filing with the Securities and Exchange Commission.

Icahn bought 6.8 million shares for an average of $9.92 each in three batches from Monday through Wednesday, bringing his total stake to 75.6 million, or nearly 5.5 percent of the company, according to the filing made Wednesday.

In his original $1.5 billion investment in Yahoo, Icahn paid an average of about $25 dollars per share.

Yahoo's stock rose 93 cents, or 8.8 percent, to $11.51 Friday.

Yahoo is looking for a new chief executive after co-founder Jerry Yang said earlier this month that he will step down as soon as the board finds a successor.

Icahn has been among the loudest voices arguing for a new direction at Yahoo. He threatened to nominate a new slate of directors after the Sunnyvale, Calif., company rejected a $47.5 billion takeover offer from Microsoft this summer. Yahoo gave him a seat on its board and two other slots for members of his choosing.

Microsoft head Steven A. Ballmer, after making two unsuccessful bids, now says he isn't interested in buying the whole company, though he has expressed interest in the search business.

Clearwire and Sprint unit close WiMax merger

2008-11-30T07:57:00.000-05:00

Clearwire and Sprint unit close merger in deal promising faster network for wireless users

Associated Press

KIRKLAND, Wash. (AP) -- Clearwire Corp. has completed its merger with the unit of Sprint Nextel Corp. that is building a new wireless data network, the companies said Friday.

The company formed by the merger keeps the Clearwire name. It aims to create a network that uses WiMax, a new wireless technology that promises faster data speeds than most current cellular broadband networks, and make it available to 120 million to 140 million people.

Clearwire already has about 400,000 customers on a network that uses similar technology. The new company will absorb Sprint's existing Baltimore-area WiMax network, which the company developed under the Xohm brand, in addition to Sprint spectrum covering much of the country.

Sprint, based in Overland Park, Kan., will own 51 percent of the company while investors in the original Clearwire, founded by cellular pioneer Craig McCaw, will own about 22 percent.

The remainder of the company will be owned by investors including Comcast Corp., Intel Corp., Time Warner Cable Inc., Google Inc. and Bright House Networks, which have put in a total of $3.2 billion in cash.

The deal was announced in May.

Clearwire's headquarters will remain in Kirkland.

Clearwire shares rose 60 cents, or 10 percent, to $6.62, while Sprint's stock jumped 29 cents, or 12 percent, to $2.79.

Report: Citigroup to sell Japan trust banking unit

2008-11-30T07:56:00.001-05:00

Report: Citigroup to sell trust banking unit in Japan as part of restructuring

TOKYO (AP) -- Citigroup Inc. plans to sell its Japanese trust banking unit as the ailing U.S. banking giant struggles to survive the global financial crisis, media reports said Sunday.

Citigroup plans to begin tender offers next week to determine the buyer of NikkoCiti Trust and Banking Corp., its trust banking operation in Japan, for about 40 billion yen ($416.7 million), the Nikkei business newspaper reported.

Several major Japanese trust banks, including Mitsubishi UFJ Trust & Banking Corp., Sumitomo Trust & Banking Co. and Mizuho Trust & Banking Co., are expected to place their bids, the Nikkei said, without citing sources.

Officials at Nikko Citigroup and NikkoCiti Trust were not available for comment Sunday.

Citigroup also plans to cut jobs through early retirements at its Japanese brokerage unit Nikko Cordial Securities Inc., and to further trim its Japan operations, the Nikkei said.

Citigroup is among U.S. banks hardest hit by the downturn in the credit and mortgage markets. The bank has been rushing to wind down its assets backed by risky debt.

Citigroup said earlier this month it planned to cut 53,000 jobs, on top of 22,000 cuts previously announced. It also sold off its retail banking unit in Germany.

Early data shows strong Black Friday shopping

2008-11-30T07:55:00.000-05:00

By Ashley M. Heher, AP Retail Writer

Preliminary sales figures show stronger-than-expected Black Friday; sales up 3 percent

CHICAGO (AP) -- The holiday shopping season got off to a surprisingly solid start, according to data released Saturday by a research firm. But the sales boost during the post-Thanksgiving shopathon came at the expense of profits as the nation's retailers had to slash prices to attract the crowds in a season that is expected to be the weakest in decades.

Sales during the day after Thanksgiving rose 3 percent to $10.6 billion, according to preliminary figures released Saturday by ShopperTrak RCT Corp., a Chicago-based research firm that tracks sales at more than 50,000 retail outlets. Last year, shoppers spent about $10.3 billion on the day after Thanksgiving, dubbed Black Friday because it was historically the sales-packed day when retailers would become profitable for the year.

But this year, many observers were expecting consumers to spend more time browsing than buying, amid contractions in consumer spending and growing fears about economic uncertainty and trouble in the global financial markets.

"Under these circumstances, it's truly amazing when you think about all the news that led into the holiday season, it certainly appears that consumers are willing to spend more than most expected," said ShopperTrak co-founder Bill Martin. "Everybody wants value for their dollar, so we saw a tremendous response to the discounts."

While it isn't a predictor of overall holiday season sales, Black Friday is an important barometer of people's willingness to spend during the holidays. Last year, it was the biggest sales generator of the season while the Thanksgiving shopping weekend of Friday through Sunday accounted for about 10 percent of overall holiday sales.

Still, experts, who predict this year's overall holiday shopping period will be the weakest in decades thanks to an overall contraction in spending, caution that this year's sales growth may be hard to sustain.

Also complicating matters is a shorter buying season -- 27 days between Black Friday and Christmas -- instead of 32 last year.

Across the country, sales in the South were up 3.4 percent from last year while they climbed 2.6 percent in the Northeast as shoppers began scouring store aisles at midnight hoping to snag the best selection on early morning specials, some as much as 70 percent off. Elsewhere, sales rose 3 percent in the Midwest and 2.7 percent in the West.

Patty Saal, 60, of Mogadore, Ohio, began her Black Friday shopping at 5 a.m. when she and her daughters went to a Sam's Club to purchase iPods.

"We're doing fine," she said.

Fifth-grade teacher Daphna Stepen, 42, spent Black Friday hunting for deals inside Macy's and at the Limited Too clothing store and headed out again Saturday. The Chicago resident said she was surprised by the discounts as well as how many coupons she'd received from stores, which helped her save even more money on already marked-down items.

"You can get almost 40 percent off stuff if you work the coupons," she said.

Separately on Saturday, J.C. Penney Co. Inc. said business was strong in its sites across the country as customers responded to sales. Some of the department store's best sellers were smaller electronic gadgets and practical gifts, such as sweaters, boots, coats and luggage.

But the chain said it wouldn't provide specific sales figures.

"In light of the challenging and volatile economic climate, and shifts in this year's retail calendar, we don't believe that reporting sales data for any one day (or weekend), including Black Friday, would provide a meaningful barometer of our business," the Plano, Texas company said in a statement released Saturday afternoon.

AP Retail Writers Anne D'Innocenzio in New York and Emily Fredrix in Aurora, Ohio contributed to this report.

Infosys could turn sights on SEAL Consulting in wake of failed Axon bid, sources say

2008-11-26T22:23:00.004-05:00

* SEAL's SAP development capabilities attractive to Indian IT companies
* Other potential suitors could include HCL Technologies, Ramco Systems, Patni Computer systems and L&T Infotech
* Infosys has worked with ABN AMRO, Royal Bank of Scotland, Ashurst, and Linklaters in the past
_______________________________________________________________________________
Infosys (NASDAQ:INFY), based in Bangalore, India, could set its sights on SEAL Consulting after having lost its bid for Axon to HCL Technologies, said industry sources.
SEAL, an SAP services provider based in Edison, New Jersey, has similar capabilities to Axon, the sources agreed. With 400 employees, it is about one-fourth the size, but could still provide a suitor with a decent market entry and client list, one industry executive explained. A banker estimated SEAL’s revenue at just under USD 100m.
Infosys, with a USD 14bn market capitalization and USD 1.9bn in cash, would be open to acquisitions in the SAP space or other subsectors, a company insider said. The company will continue to seek acquisitions in SAP-related spaces, CFO V Balkrishnan said in the company’s most recent earnings call. SAP is one of the fastest-growing segments of its business, he added.
But SEAL CEO Badal Patel said the company is not actively seeking a sale, and would only be interested in selling under very specific circumstances. "We have to have a right fit, the acquirer would really have to understand us and the deal would have to give our employees growth and career opportunities."
SEAL’s capabilities are attractive to potential suitors, said a second industry executive. Installing, integrating and customizing SAP’s enterprise resource planning (ERP) software is a long-term engagement that provides stable and ongoing cash flows.
Along with Infosys and HCL, an Indian banker identified Indian-based companies Ramco Systems, Patni Computer Systems and L&T Infotech, a subsidiary of conglomerate Larsen & Toubro, as other potential bidders for SEAL.
But Infosys is the most logical bidder, as 12% of its revenues come from its SAP-based business, an Indian-based analyst said. HCL Technologies could be distracted by the Axon deal, Ramco may not have sufficient funds to make an acquisition, and if SEAL were to ask for more than two times revenues, in line with the Axon deal, Patni might find the valuation too high, the analyst added.
SEAL’s Patel stressed the company was not for sale and is doing well in the soft market. "We have always thought that either we become part of another name brand and grow through that, or we take a different route, making our own acquisitions."
The Axon bid was a bold move for the two Indian bidders, US bankers agreed, particularly as the final acquisition price of GBP 440m represented a multiple of more than two times revenue. Industry sources said they expect to see continued pursuit of US or European companies in the SAP service space.
Infosys has worked with ABN AMRO, Royal Bank of Scotland, Ashurst, and Linklaters in the past.

Renew Life Formulas rumored to be for sale, sources say

2008-11-26T22:23:00.003-05:00

Renew Life Formulas, a Tampa Bay, Florida-based natural health products company, is rumored to be for sale, said two industry sources.
Renew declined repeated requests for comment or an interview.
The privately-held company, worth roughly USD 100m, has been for sale for some time, but a sale probably has not happened because private equity buyers are struggling to get financing on deals, said a banker claiming knowledge of the situation.
Renew has probably reached its peak in terms of growth potential, and now may be looking to sell to a larger player to continue company growth, said an industry executive.
Recently another supplement company similar in size to Renew Life sold at 6x EBITDA, and the USD 100m valuation might also fetch that multiple, the industry banker said.
According to a private equity executive, however, valuations in the space are about 2x revenue.
Though private equity may have a hard time buying Renew, a smaller group of strategic buyers could be interested, the banker said.
NBTY is “an 800 pound gorilla” in this industry, and may be interested in Renew; however, it typically buys brands for cheap, the industry executive said.
Enzymatic Therapy also may see value in acquiring Renew, the industry executive added. CEO Randy Rose of Enzymatic declined to comment on whether his company would be interested in Renew or if he had heard if Renew Life was for sale.
Optimum Nutrition, BSN and Universal Nutrition may acquire brands to supplement organic growth, added the private equity executive.
Acquiring an established brand has greater value than creating a new brand, the industry executive explained.
The industry is also recession resistant because of its dedicated customer base, said the private equity executive, adding that this makes a nutritional supplement company a solid investment for private equity or strategic players.
Renew Life is a maker of natural digestive care and cleansing dietary supplements.

Navistar could sell foundry business, CEO says

2008-11-26T22:23:00.001-05:00

* Japan's Hino and Isuzu Motors, and India's Amtek, Hinduja and Mahindra & Mahindra could bid, industry sources say
* Castwell Products, TMB Industries, All-American Holdings, and Advanced Metals Group could also bid, banker says
_______________________________________________________________________________
Navistar International (NYSE:NAV), the Warrenville, Illinois-based truck, engine and auto parts manufacturer, could sell its foundry business, said CEO Dan Ustian in an interview. The business, consisting of one foundry in Indianapolis, Indiana, and another in Waukesha, Wisconsin, produces cylinder heads and small ductile iron components for trucks and diesel engines. Ustian said the business is lagging because of labor costs, and Navistar "can't manage" it. He added that a larger domestic player could have gone for it by now if not for the credit crunch.
The company, which does not break down its foundry revenues, declined to comment on the valuation of the business. Navistar's market capitalization is USD 1.48bn.
Navistar's financial advisors are Credit Suisse and Bank of America, said Ustian.
One potential bidder for the foundry business, according to Ustian, could be listed, Brazil-based Tupy. A Navistar spokesperson added that the company has engine manufacturing facilities in Brazil.
A US-based industry banker said that domestic players would also be interested in the segment and could get financing for a deal even in the current financial environment. Such companies include Castwell Products, owned by Texas-based private equity firm Hunt Special Situations Group, and Illinois-based private equity group TMB Industries, which is actively trying to build up its foundry platform. The banker said that Georgia-based All-American Holdings, run by two investors, is interested in corporate divestitures, and would "take a hard look" at assets that may be distressed. Pennsylvania-based Advanced Metals Group also likes to look at corporate carve-outs, the banker said.
The foundry industry has an advantage when it comes to financing, as companies generally have a high level of assets to leverage, noted the banker. However, valuations have come down, and if the business is underperforming, Navistar could probably expect a valuation of only around 3x to 4x EBITDA, said the banker.
In terms of foreign bidders, Indian foundry groups have been moving into Europe and North America and could be logical buyers, the banker said. He mentioned listed Amtek Auto, Hinduja Foundries and Mahindra & Mahindra as potential bidders. Mahindra currently has a distribution joint venture with Navistar.
Isuzu Motors, the listed Japanese truck and engine manufacturer, could consider pursuing US foundry segments if a company such as Navistar approached, said an Isuzu insider. Isuzu's listed subsidiary, I Metal Technology, manufactures cast iron parts for vehicles, the insider said. The company does not have sales and production bases in the US, according to Isuzu's website.
Listed, Japan-based Hino Motors could also target the foundry segment to strengthen its US business, said a Japan-based analyst. A Hino insider, however, said the company does not have immediate acquisition plans due to a shortage of funds. The insider added that Hino only sells about 5,000 trucks annually in the US.
Navistar's stock is trading at a near 52-week-low of USD 20.74 per share. Recent news reports noted that the stock fell 19.4% after the company's announcement earlier this week that it was restructuring its truck parts segment into four separate units and cutting jobs in that segment.
The company also reported losses in its diesel engine unit in its latest 10-K filing. Ford, one of its major diesel parts customers, purchased 25.5% fewer units compared to 2006, a result of its stricter purchasing requirements. In spite of the downturn, Ustian said that Navistar does not plan to sell the diesel engine unit, adding that pickup truck companies, whom the product is targeted at, are unlikely to spend money for the segment.

Rent-A-Center will continue to buy competitors, plans to acquire 50 stores this year, CEO says

2008-11-26T22:22:00.004-05:00

Rent-A-Center (NASDAQ:RCII), a Plano, Texas-based rent-to-own company, will acquire smaller competitors, said Chief Executive Officer Mark Speese. These could be companies with as few as two or three locations or as many as 75, he said. Rent-to-own companies rent furniture, appliances and computers at weekly or monthly rates and will transfer ownership to the renter after a specified period of time.
The company, with a market capitalization around USD 807m, has a 40% market share; its only significant competitor is listed, Georgia-based Aaron Rents, with a USD 1.18bn market capitalization. Speese said that Rent-A-Center (RAC) could be interested in acquiring its next largest competitors, including Florida-based Buddy's Home Furnishing, Texas-based Bestway, Virginia-based Premier Rentals, and Indiana-based American Rentals, "if they came to us." Each of these companies has 75 or fewer locations.
In 2006, RAC acquired Rent Ways for about USD 567m and Bear Stearns advised on the transaction. Speese said that the company may not hire a banker for smaller transactions, but would work with any banker that brought a deal to it. Its law firm is Fulbright & Jaworski.
RAC has USD 99m in cash on its balance sheet and will have USD 100m to 120m in free cash flow next year, all of which may be used for acquisitions, to pay down debt or for share repurchase. The company usually acquires opportunistically when it is approached by potential targets, said Speese.
Stores can be valued at six to 12 times monthly revenue each, and revenue can go from USD 35,000 to 70,000, said Speese. Sometimes RAC will close an acquired location and transfer its accounts to an existing store.
RAC recently added check cashing, money transfers and other financial services to about 350 of its stores.

ADA-ES would be excellent fit for Albemarle, says CFO

2008-11-26T22:22:00.003-05:00

ADA-ES (Nasdaq: ADES), the Littleton, Colorado-based specialty chemicals company, would be an "excellent" acquisition candidate for Albemarle Corp, said ADA-ES's CFO Mark McKinnies.
ADA-ES's activated carbon is used to reduce mercury emissions from coal-fired power plant boilers, an area that Baton Rouge, Louisiana-based Albemarle strengthened after its USD 22m acquisition in June of Twinsburg, Ohio-based Sorbent Technologies.
Asked if he thought ADA-ES could interest Albemarle, McKinnies said: "Perhaps. They [Albemarle] have to buy their activated carbon from some place because they don't manufacture it. Obviously, with private equity partners [involved in ADA-ES], they're not the longest term holders. They're going to look at selling at some point in time and Albemarle would be an excellent candidate."
Private equity firm Energy Capital Partners (ECP) is poised to own about 35% in ADA-ES if shareholders approve their 50/50 joint venture to construct an activated carbon plant.
ADA-ES has a market capitalization of USD 25m, although its stock price is trading at a third of its level in June.
McKinnies said management was not concerned that ADA-ES's low share price could draw a takeover bid, saying any would-be acquirer would have to pay ECP a breakup fee of a couple million dollars plus ECP's legal fees of USD 1.5m. He added that the board would perform its fiduciary responsibility and evaluate offers.
ADA-ES's joint venture with New Jersey-based ECP, announced in October, is for a USD 350m plant that can produce 125 to 175 million pounds of activated carbon per year and expected to come on-line in 2010. Perella Weinberg Partners and Cargill subsidiary Black River Asset Management LLC were among those showing interest in a process run by Credit Suisse, but they only wanted to buy shares at the corporate level while ADA-ES wanted to find a participant in the activated carbon project.
The facility will be funded with 40% equity and 60% debt. ECP and ADA-ES will have to stump up USD 70m each for the equity part, with USD 45m coming from ECP's purchase of convertible preferred shares in ADA-ES and another USD 25m coming from a prior PIPE transaction.
To fund the debt portion of the activated carbon project, Credit Suisse was mandated to raise USD 210, expected to be a mixture of senior secured and mezzanine funding. ADA-ES expects to get a low B from rating groups and place that debt by the end of the first quarter next year, said McKinnies. If it fails to raise the debt, ADA-ES's alternatives include equity financing from ECP, said McKinnies.
Neither of ADA-ES’s direct competitors, Holland-based Norit nor Pittsburgh, Pennsylvania-based Calgon Carbon, were as aggressive as ADA-ES felt they needed to be to meet the growth it expects in activated carbon, he added.
ADA-ES also sells powdered activated carbon injection systems, mercury measurement instrumentation and provides mercury emission control services. The company also develops refined coal technology and sells other chemicals for coal-fired boilers.

Cronos seeking buyer for equity stake, source says

2008-11-26T22:22:00.001-05:00

Cronos, a privately held container leasing company based in San Francisco, is seeking buyers for an equity stake in the company, according to a source familiar with the situation. It is also contemplating a public listing in 2009 and has not hired financial or legal advisors.
The company wants to find a buyer for the interest now primarily owned by BNP Paribas, the source said. Cronos was taken private in a management buyout last year for approximately USD 133.7m, and is currently 37%-owned by five members of management. The rest of Cronos was sold to Fortis, which in recent months was partially nationalized and partially sold to BNP Paribas.
Cronos may sell at least a 49% equity stake to an outside investor, and could lever up to 1.6x EBITDA, the source said. The size of the investment could range from USD 30m to USD 60m, and Cronos would prefer an investor with an 18 to 24 month horizon. The person said the investment could offer a double digit IRR in two years.
Potential buyers will likely be located outside the US, and could include a large German bank or an infrastructure firm, the source said.
The company ultimately aims to list on an Asian exchange, preferably Singapore, in mid to late 2009, and later do a secondary listing in Hong Kong.
Cronos would hire a firm like Macquarie or a bank familiar with the Asian markets to advise on a public offering. It works with a local law firm in San Francisco and has informal contacts at Proskauer Rose in New York.
Cronos provides intermodal marine container leasing services, supplying dry cargo, refrigerated and tank containers. Its containers are about 25% generic and 75% specialized, or designed around specific cargo. Its customers include major agricultural and chemical companies.
It manages 800 cost-equivalent units (CEU), generates USD 160m in revenues per year and has 80 employees globally, the person said. Its competitors include three listed companies: Textainer, based in Bermuda, TAL, based in New York, and CAI International, based in San Francisco.

Procter & Gamble could make further divestitures in battery, food and other units, sources say

2008-11-26T22:21:00.002-05:00

* Duracell could be sold once market conditions improve
* Pringles, Braun electric shavers and toilet paper business also potential sale candidates
* P&G may prune some haircare products, but is unlikely to sell any major brands
* Company used Morgan Stanley, the Blackstone Group, Davis Polk & Wardwell, Jones Day and Cadwalader, Wickersham & Taft LLP on Folgers divestiture
______________________________________________________________________________
The Procter & Gamble Company (NYSE:PG), in divestiture mode, could sell brands in its battery, food, appliances, toilet paper, and hair care units, industry experts said.
Businesses that could go on the block include: Duracell, Pringles, Braun electric shavers and the company's toilet paper business, said the experts.
The Cincinnati, Ohio-based company, which recently sold Folgers, its coffee business, for USD 3bn, is likely to continue divesting, two industry analysts said.
After making a number of major acquisitions, the company is probably more likely to be a seller than a buyer of assets, P&G CFO Clayton Daley said, speaking during a Q&A session at a Deutsche Bank conference this June.
Two units that appear primed for sale are P&G’s battery business, Duracell, and its one remaining snack business, Pringles. The company hired the Blackstone Group to review Folgers, Pringles and Duracell in 2007, according to a prior report from this news service.
Duracell could be next on the divestiture list, as it has seen a decline in sales, said the first analyst. Whereas for the fiscal year 2008, volume for batteries was up mid-single digits, it was flat for the the company’s latest first quarter. Further, in the quarter, global market share of general purpose batteries declined about one point. However, P&G is waiting for the financing markets to revive before spinning off or selling Duracell, because the most likely buyers for Duracell are private equity firms, a first banker said.
Pringles could have a harder time finding potential buyers, because it would have to be sold through a Reverse Morris Trust, a transaction structured to allow a tax-free merger between two companies, because it has a higher tax basis than Duracell, said another banker. Finding a Reverse Morris Trust partner can be difficult given size requirements for the procedure. For instance, Kraft Foods has been thought to be interested in Pringles, but would be too large for a trust merger, the banker explained.
Besides Duracell and Pringles, other units likely be moved to the divestiture list include Braun electric shavers, said a second industry banker. Proctor & Gamble CEO AG Lafley told analysts in the company's latest earnings call that P&G has been shutting down and “moving away” from some parts of the Braun appliance portfolio. The company divested its Braun thermometer and blood pressure monitors last year.
Another business P&G is likely to review is its toilet paper business, a third industry banker said. P&G owns Charmin toilet paper, as well as Bounty kitchen towels and Puff facial tissues.
As with any of its segments, P&G may prune small brands within its hair care division, which has limited growth prospects, two of the bankers agreed. But it is unlikely to sell any of its larger brands. In the past, Alberto-Culver has sought to buy the Aussie brand from P&G, but P&G has not been open to a sale, the second banker noted.
On its Q1 earnings call, P&G's Lafley noted subpar performance on the part of Wella, the company’s German salon hair care subsidiary. However, he said P&G was working on turning Wella around, and defended P&G’s other hair care brands, saying that they were the best performers in the sector.
The company has spent too much money assembling its hair care portfolio to abandon it, the first banker said. It recently bought Frederic Fekkai, a high-end salon and retail brand, another noted, and so seems inclined to fix its hair care business right now. P&G is probably shifting toward the high-end hair care spectrum, as is evident in its purchase of Frederic Fekkai, the first banker noted.
Proctor & Gamble’s entire hair care unit is doing poorly versus its peers such as Alberto-Culver, noted the second industry banker. For the fiscal year ended June 2008, the company reported that its global hair care market share was in line with the prior year's level. Professional hair care volume, however, declined by mid-single digits, with the decline in care and styling offsetting the growth in color products. In the company’s latest Q1 results, it reported that globally all major hair care brands contributed to volume growth. But Professional hair care saw a low single digit volume decline. Hair care is included in P&G’s beauty segment, and the company does not break out sales and earnings for hair care.
Proctor & Gamble tends to make big divestitures every two years, the second banker noted. The company spaces out its divestitures in case such sales dilute the company’s results, the second banker explained.
The company seems unlikely to divest its pet care business, focusing more on trying to turn it around, this news service recently reported. According to the first analyst, the company recently brought in new management to try and revive the brand, and seems committed to staying in pet care for a longer term.
Proctor & Gamble, which has a market capitalization of about USD 192bn, declined requests for comment. It used Morgan Stanley, the Blackstone Group, Davis Polk & Wardwell, Jones Day and Cadwalader, Wickersham & Taft LLP on the Folgers divestiture.

AGCO attempting buyout of Chinese manufacturer, CEO says

2008-11-26T22:21:00.001-05:00

* In talks with Foton Lovol Heavy Industries, says company insider
* Company will look at privately-held opportunities with fewer obstacles, banker says
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AGCO (NYSE: AG), a Duluth, Georgia-based agricultural equipment manufacturer, is considering buying out a privately-owned Chinese manufacturer, said Chairman and Chief Executive Officer, Martin Richenhagen. The company is in talks with Foton Lovol Heavy Industries, said a Foton Lovol insider.
“Basically we are working in two directions,” said Richenhagen in an interview with this news service during a visit to Brazil. “One is a greenfield factory for manufacturing drive trains for tractors under 100 kW, which will help us have low-cost components for our factories all over the world.” The second direction is the takeover of a privately-held company, currently under negotiation, he added.
AGCO expects to end the year with about USD 600m in cash and almost USD 9bn in revenues, said Richenhagen, adding that the company also plans to make a large acquisition of up to USD 3bn in six months, as previously reported by this news service.
In China, AGCO uses an advisor that is familiar with the financial situation that also provides good due diligence, said Richenhagen, declining to name the firm. “We typically use an auditor, a financial advisor and a legal advisor.”
There are not many options in China for tractor acquisitions, commented an industry source, who is CEO of an international agricultural equipment manufacturer in Brazil, and knows AGCO's movements. The Chinese Tractor Owners Association reported nine tractor manufacturers as members: Beiqi Foton Motor Co. holding of Foton Lovol Heavy Industries; Benye Tractor Corp.; Dongfeng Agricultural Machinery Group Co. (DFAM); Hubei Shenniu Tractor Co.; Jiangsu Jiangdong Group Co. Ltd.; Jiangsu Yueda Yangcheng Tractor Plant; Jiangling Tractor Co.; Shandong Tractor Works, and Weifeng Machine Works.
Deere & Co, the Illinois-based maker of agricultural equipment, acquired Benye Tractor last year. Among the other options is Foton Lovol Heavy Industries, whose executives have said that they could consider M&A moves. Foton Lovol (formerly known as Shandong Foton Heavy Industries) is the biggest manufacturer of tractors and combine harvesters in China, registering CNY 9.5 bn (USD 1.39 bn) in 2007 sales, and is a subsidiary of Beiqi Foton Motor Company Limited. According to a past report on this news service, the company had IPO plans and was considering long-term M&A moves in 2006.
A Foton Lovol insider said the company has been in talks with AGCO for business cooperation for a while, which includes a possible M&A transaction. The source declined to reveal how long the two companies had been negotiating, but said the two parties are trying to work out a plan that can achieve synergies for both sides. The source said the major issue that slowed down the talks is whether Foton Lovol would let AGCO take a controlling position: “AGCO seeks a buyout, or at least a controlling stake, while we would rather not sell a controlling stake.” Beiqi Foton would oversee the final process, because the company is its subsidiary, but Foton Lovol would negotiate the specific terms, said the source.
A Chinese banker said AGCO tried to takeover several listed Chinese agricultural equipment makers in the past few years, but the deals have failed for the same reason. “AGCO is often interested in takeover deals. But most listed agricultural equipment makers in China are state-owned, and they are not likely to accept takeover bids from overseas counterparts.” The source said that AGCO is looking now at targets in the private sector rather than state-held industries, because they would encounter fewer obstacles in negotiations.
In a report published by this news service in September, Richenhagen said he had identified several candidates and was expecting to complete a deal by the end of the year. In January 2007, Richenhagen confirmed its interest in China-based First Tractor, and in Case New Holland (CNH) or German Claas, but both companies informed at the time they were not for sale.

Acesco vigilant for opportunistic buys in Peru, Mexico and the US; sale not ruled out, export director says

2008-11-26T22:20:00.000-05:00

Acerias de Colombia (Acesco), the family-owned Colombia-based steel group, could take advantage of the global turmoil to make opportunistic buys, preferably in Peru, Mexico or the US, export director Rafael Rosso said.
According to Rosso, Acesco has annual revenue of roughly USD 5bn and has some 500 employees. When asked if it would look towards an IPO in the future, he said it would remain a family-owned company in the short term, but it could seek an IPO on the Colombian bolsa within the next five years.
“We have an acquisition department inside the company, which is always looking for opportunities, that shows Acesco´s acquisition interest. We have special interest in the Peruvian, Mexican and US markets,” he noted.
Acesco has experience in M&A, having acquired several Costa Rica-based companies like Metalco, a galvanized steel products company. Two years ago it bought Ecuador-based Rooftec, which produces steel construction products.
According to Rosso, Acesco has been approached several times with takeover and stake sale offers. “It has been difficult to accept an offer because there are three generations involved in the decision-making, but it is a matter of time. The global trend is inclined towards mergers, especially in the metals sector, I don't see how we can stay behind,” Rosso said.
Before the financial crisis, Acesco and Brazil-based Votorantim announced it was planning to build a steel plant in Colombia with an investment of USD 1.5bn. When asked if the project would move forward, Rosso said that “there is no perfect time to invest in a steel plant, the perfect time is when companies decide to do it. This is the correct time for the benefit of our country and for South American metal companies,” Rosso added.
A US industry analyst said he did not see the current M&A market as conducive to deals. Buyers with capital may be looking opportunistically for targets but sellers are not plentiful, he said. He questioned whether the company was looking at hostile deals and what kind of gunpowder it had if it were to set off on making buys in this market. Steel companies interested in acquiring could be making wish lists right now as far as targets, but as far as timing is concerned it could be a while before it was possible to conclude a major transaction, he said. He added that he expects to see the market bottom at some point in the first half of 2009, but cautioned that it could be some time before a buyer and seller would likely see eye-to-eye on value.
When asked if Votorantim could present itself as a suitor for Acesco, Rosso declined comment, saying it has not happened yet.
For upcoming deals, as well as for its past acquisitions, the company hires several law and accounting firms, which Rosso declined to name. He said it would hire international and local advisors for any future M&A transaction.
A Votorantim spokesperson did not return calls for an interview. The Brazilian conglomerate reported in October losses on derivative investments, and after that sold CanaVialis and Alellyx to Monsanto. It is in talks to sell Banco Votorantim and cancelled its planned stake purchase in Aracruz. The Brazilian group concluded the 85% acquisition of Peru-based zinc and lead miner, Atacocha on 31 October. If the conglomerate completes the sale of Banco Votorantim, it will recover its cash position and could pursue new acquisitions, commented a Brazilian sector analyst.
“The only potential target in Peru is Corporacion Aceros Arequipa,” said a Peruvian analyst, adding that the only other Peruvian steelmaker is Siderperu, owned by listed Brazilian conglomerate Gerdau (NYSE: GGB). “The entrance of Gerdau into the Peruvian market, and the international turmoil could push the company to seek new capital,” said the analyst. According to the analyst, Aceros Arequipa announced last year a USD 80m investment to expand its production from 550,000 tons to 900,000 tons, after refusing several approaches from big players like Arcelor-Mittal (NYSE: MT), Argentina-based Techint and Brazil's Gerdau. “However, that happened last year, and now, with the crisis, it could be different,” said the analyst.
Established in 1966, Corporacion Aceros Arequipa produces corrugated iron, wire, profiles, and other steel products for the construction sector. The company registered approximately USD 500m in revenues last year.

Lawn Doctor could consider strategic options more actively when markets improve; has held preliminary conversations with two banks, exec says

2008-11-26T22:18:00.000-05:00

Lawn Doctor has drawn interest from financial as well as strategic suitors, said Scott Frith, vice president, marketing and franchise development.
But though open to approaches, at the moment the USD 90m in revenue company is not actively pursuing them, he said. “The multiples would not be as attractive.” Interest has been expressed for a minority, majority, or an outright buy of the Holmdel, New-Jersey-based lawn-care franchise.
The company could, however, consider a buyer more actively when markets improve, said Frith. If it were to consider a sale, the owners would want to continue to own a minority stake in the business and participate in its growth, he added. Robert Magda and Russell Frith, his father, are the primary owners of the closely held business.
Lawn Doctor has had preliminary meetings with two investment banks that would represent the company in any potential transaction. It uses DLA Piper as its law firm.
The company has received strong interest from private equity players who like the scalability, free cash flow and predictability of a franchise business, added Frith. Though financial buyers, who understand the franchise business, continue to be interested, access to capital has been restricted and multiples are lower, he added.
There are pros and cons associated with each suitor, said Frith. Whereas private equity firms tend to run companies as going concerns with access to resources, there is also the strategic advantage of partnering with a franchise company that has other such businesses.
Founded in 1967, Lawn Doctor currently has around 475 franchise locations nationwide. Business has been slow for franchisers as the main sources for funding a franchise, which include converting 401k into equity, home equity and SBA lending, are drying up, Frith noted. However, the retail consumer or homeowner part of the business has been healthy for Lawn Doctor, he said. The company has an affluent consumer base, and people still want their homes to look good, he added.
Lawn Doctor could look at acquiring smaller independent lawn care businesses through its franchises as part of its growth plans going forward, said Frith. Though the decision has not been made as yet, there is the opportunity as a number of independents get squeezed out of business, he added. The company would look at making acquisitions in markets where demand for its services exceeds its market share. Lawn Doctor, which has a strong balance sheet, would extend financing to its franchises for making such acquisitions, he added.
With the price of goods and fuel increasing, the company does expect to increase prices, said Frith. It also expects to be bundling more services together to provide a better value proposition for its customers. Services provided by the company include lawn and landscape care, as well as pest control.

Sun Bancorp seeks several small or one large acquisition, CEO says

2008-11-16T05:35:00.004-05:00

Sun Bancorp (NASDAQ:SNBC), a more than USD 3.4bn asset-size bank based in Vineland, New Jersey, is interested in making several small, or one large, acquisition, said CEO Thomas Geise.
He said Sun Bancorp, holding company for Sun National Bank, finds central New Jersey markets attractive in which to acquire, due to high demographics, and could look to increase market share within its current footprint, including in Cumberland County and Cape May County markets in the southern part of the state.
He said Sun is evaluating whether to apply for the federal government’s Troubled Assets Relief Program, under which it could get USD 90m, but is “well positioned” to make acquisitions, including a larger one, without that money. “It is fair to say,” that Sun is in relatively good shape, given the current state of the economy and the financial services market, said Geise.
Past financial advisors to Sun, whose current market capitalization is nearly USD 230.9m, have included Janney Montgomery Scott, according to regulatory documents. It had been represented by the law firm of Malizia Spidi & Fisch, and its current auditor is Deloitte & Touche, also according to regulatory documents.
Two industry sources agreed with Geise that Sun was in a relatively good position to make one or more acquisitions, despite its third quarter where bad loans cut into its profit. They noted that Sun appears to have just received proceeds from the sale of its six Delaware branches to WSFS, completed this week, and that Sun could potentially greatly benefit from acquisitions.
In Cumberland County, a potentially well fitting acquisition of some scale, said the sources, could be Vineland, New Jersey-based Colonial Bank. With more than USD 501.7m in assets and owned by NASDAQ-listed Colonial Bancshares, it has deep roots in the community and could potentially work very well for Sun there, said the sources.
A larger potentially well fitting acquisition, said the sources, could be Cape Bank, which, with more than USD 1.2bn in assets, is the largest community bank in Cape May and neighboring Atlantic County, where Sun also has a substantial presence.
For a central New Jersey acquisition in a high demographic area, said the sources, a potentially good fit for Sun could be Oakhurst, New Jersey-based Central Jersey Bank. With more than USD 534.5m in assets and owned by NASDAQ-listed and Long Branch, New Jersey-based Central Jersey Bancorp, it is located in Monmouth County, at or near one of the 50 highest income US counties, according to government figures. The sources said Central Jersey's operations could fit well with Sun’s goals and added that Central Jersey Bancorp too is in relatively good shape. Central Jersey Bancorp had record net income in this year’s third quarter of USD 1.03m, and had net income of USD 2.3m for the first nine moths of this year, according to regulatory filings. Central Jersey Bancorp’s market capitalization is just over USD 58.8m.
Sun Bancorp reported net income of USD 4.1m in this year’s third quarter, down from USD 5.9m in last year’s third quarter, according to regulatory documents.
Colonial, Cape, and Central Jersey did not comment.

Old National could look at National City branches, other acquisitions after approval for treasury capital injection, CEO says

2008-11-16T05:35:00.003-05:00

Old National (NYSE:ONB), the Evansville, Illinois-based bank, could look at acquisitions if it decides to take the USD 150m capital injection that has been approved by the Treasury, said Chief Executive Officer Bob Jones.
The bank, whose market capitalization is currently more than USD 1.2bn, is waiting for the Treasury to issue details of the plan before it decides whether or not to take the capital, said Jones. "We want to make sure we understand the covenants and restrictions involved," he said.
If it decides to participate, it would use some of the funds for lending and some for acquisitions in its core markets of Indianapolis, northern Indiana, and the area between Indianapolis and Louisville, said Jones.
Old National has worked with a number of legal and financial advisors in the past, and would decide on advisors for potential deals "depending on the deal, depending on the market," said Jones.
For its last acquisition, that of Mishawaka, Indiana-based St Joseph Capital, an approximately USD 500m asset-size bank purchased for USD 75.6m, which closed early last year, Old National was advised by Sandler O'Neill & Partners and its legal counsel was Ice Miller, according to regulatory documents. Old National's auditor is Crowe Chizek and Company, also according to regulatory documents.
Jones told this news service in April that branches of National City that would be divested after it was taken over, would be of interest to Old National. If branches of National City are divested as a result of PNC's purchase, Old National is interested in them, said Jones.
The Louisville market is not highly concentrated, according to government Herfindahl-Hirschman Index calculations, thus compelled divestitures may not be occurring on the basis of high concentration, industry sources familiar with regulation and market concentration issues said. However, National City ranks number one there in terms of deposit market share, with more than USD 3.9bn in deposits, while PNC ranks third with more than USD 2.1bn, according to industry figures, thus giving rise to the possibility of divestitures, either voluntary or otherwise, said the industry sources. A spokesperson for National City told this news service last week "that there will be some divestitures of branches with strong market share" and that Louisville was one of the markets where there is "overlap."
Old National could also look at acquiring regional banks that are having problems, said Jones.
When asked about acquisition multiples, Jones pointed to the PNC/National City deal at just over book value as a possible barometer for future deals, while saying that in the end, the market will determine deal values.
In Fort Wayne, Indiana's second largest city, Old National could likely benefit adding to its one-office presence there through a potentially opportune acquisition, such as Tower Bank & Trust, said the sources. With nearly USD 691.3m in assets as of 30 June, according to regulatory documents, Tower Bank, owned by NASDAQ-listed and Fort Wayne-based Tower Financial, is concentrated in Fort Wayne, an important Indiana market, and can be seen as trading at less than 0.9 price/book, the sources said. Tower has a market capitalization of USD 34.55m. Its shares closed today at USD 8.46, down from a 52-week high of USD 14.24. Tower did not comment.
A bank that could be seen trading at about 1.15 price/book, based on its current price and most recent quarter, which could potentially fit well with Old National, said the sources, is Bloomington, Indiana-based and NASDAQ-listed Monroe Bancorp. Monroe has the number one deposit market share in the Bloomington market, and could boost Old National in other areas, including adding a presence in Noblesville, just north of Indianapolis, where Old National has a significant presence. The sources said the fact that Old National holds the number four - a fairly relatively distant number four - market share position in Bloomington may not preclude any deal based on regulatory grounds. A deal could be greatly beneficial to Old National. Monroe has a market capitalization of more than USD 63.2m. Monroe CEO Mark Bradford declined to comment.
Old National has 20 days from the date of approval by the Treasury, which was 27 October 2008, to decide whether or not to use the funds.
The company has not decided how much of the capital would be allocated for acquisitions and how much would support bank business, such as lending and the development of its local communities. "We have an important role to play in economic development," said Jones.

InBev could divest Labatt to mitigate antitrust concern in Anheuser-Busch deal, sources say

2008-11-16T05:35:00.001-05:00

InBev, the Belgian brewing giant, may need to divest Ontario, Canada-based Labatt in order to complete its acquisition of Anheuser-Busch, according to industry sources.
Once InBev completes its acquisition of Anheuser-Busch, it will control 50% of the US market, a level which could raise antitrust concerns with regulators, said an industry executive. While the executive had no knowledge of plans to divest the Labatt brand, he described such a move as a logical maneuver to scale back InBev’s North American presence and placate regulators.
Anheuser-Busch has distributed InBev products since 1 February 2007 without raising any antitrust flags, though InBev’s Canadian portfolio, including Labatt, was excluded from that arrangement. Another industry source speculated that the exclusion of the Canadian brands was likely borne out of the companies’ concern that antitrust regulators would get involved. Now that all products will be coming under one umbrella, the source thought that the companies must deal with the antitrust implications that they had likely attempted to sidestep.
As previously reported, an industry source said that the Department of Justice (DoJ) was “intensely scrutinizing” issues regarding Labatt market share in New York. This signals that Labatt would be a likely divestiture candidate, as there would be significant market overlap in the northeast between Anheuser and Labatt.
This would not be the first time InBev has had to divest a brand in order to gain approval for an acquisition. In 2001, InBev sold its UK-based Carling brand to Coors in order to gain approval for its acquisition of UK-based Bass Brewers.
The Canadian beer industry is dominated by Labatt and Coors and a likely acquirer would be a beer company looking for an entry into the Canadian market, said the executive.
The industry source suggested that San Antonio, Texas-based Gambrinus Company; Wall, New Jersey-based Crown Distributors; and White Plains, New York-based Heineken USA could be interested in acquiring Labatt. None of them returned calls for comment.

Akeena Solar could be targeted by partners Suntech or Kyocera in early 2009, sources say

2008-11-16T05:34:00.002-05:00

Akeena Solar (NASDAQ:AKNS), the Los Gatos, California-based solar power system designer and installer, could be targeted by business partners Suntech or Kyocera in early 2009, according to industry sources.
CEO Barry Cinnamon said Akeena is looking at all opportunities and would do what is in the best interest of the shareholders when asked if the company could be acquired. He said Akeena is in ongoing dialogue with Japan-based Kyocera, which manufactures Akeena’s Andalay solar panels, and China-based Suntech Power Holdings, which distributes the Andalay panels in Europe, Australia and Japan. He added that Akeena, which has a USD 84m market capitalization, has what foreign solar manufacturers are looking for -- a good footprint in the US and a solid product.
Cinnamon, who owns 30% of the company, said Akeena has in-house counsel and uses DLA Piper as its legal advisor. He added that the company has worked in the past with a number of investment banks and advisors, but is not looking to hire any at this time.
A US analyst said Akeena will have a tough time getting the capital it needs in today’s paralyzed capital markets, and said he could see the company being acquired in the first half of 2009. Akeena has a good product that makes it more attractive than its competitors, the analyst added.
In the last year, Kyocera and Suntech have signed licensing agreements with Akeena, allowing them to manufacture Akeena’s Andalay solar panels and distribute them around the world. That would make a strong case for either of the Asian photovoltaic manufacturers to acquire Akeena, said the analyst.
A recent analyst report valued the company at USD 6 per share, which "reflected the likelihood that Akeena will have far fewer options in 2009." Akeena is currently trading at USD 2.92, up from its 52-week low of USD 1.90 a share a few weeks ago, but down dramatically from its 52-week high of USD 16.80.
A Suntech source said: "We indeed have the intention to talk with Akeena about any acquisition possibility. In the meantime, we now have enough funds to do some overseas acquisitions." The source declined to disclose whether Suntech has appointed a financial advisor for the possible acquisition of Akeena.
Wuxi-based Suntech, which has a USD 2.17bn market cap, had 2007 net income of USD 171m.
A Kyocera company insider said the Kyoto-based company does not have immediate M&A plans, but could always look for M&A opportunities to expand its sales channels and technological expertise, adding that it could grow its solar business in North America.
A Japanese analyst said Kyocera’s first priority is to improve its financial situation and given this could not look for M&A opportunities. However, the analyst could not rule out the possibility of Kyocera speaking to Akeena about its solar business.
Kyocera posted group sales of about JPY 1.2trn (USD 12bn) in the year ended in March 2008 and its market capitalization is about JPY 1trn (USD 10bn).

Coty could look to expand presence in emerging markets through opportunistic acquisitions, CFO says

2008-11-16T05:34:00.001-05:00

Coty could seek opportunistic buys in emerging markets to boost its fragrance, skin care and color cosmetics portfolio, CFO Michael Fishoff said in an interview. The company is a New York City-based perfume business.
Current market conditions are favorable for deal making. “There are values to be had,” Fishoff said. The move is expected to contribute to the privately-held company’s immediate goal of reaching USD 5bn in revenues. Coty has USD 3.3bn in revenue and is owned by German consumer goods company Joh A Benckiser.
Coty is equally interested in fragrance, skin care, and color cosmetics buys with revenues of USD 50m or more, said Fishoff. The company wants to fill small voids in its fragrance portfolio, a 60% sales generator, and there is also potential for color cosmetics and skincare.
Attractive targets should have a presence in emerging markets such as Russia, India and other parts of Asia where Coty’s presence is underdeveloped, Fishoff explained. Europe generates 55% of sales, America 33% and Asian and other markets contribute 12% of sales.
Coty will also continue to look at buys domestically, Fishoff said. The company has identified a few targets, but has not yet completed due diligence. “If a good opportunity came along we would acquire immediately,” he said. Murad and Bare Escentuals, both based in California, could be possible targets, said Fishoff, when questioned.
In India, the skin care and fragrance brands of listed majors Hindustan Unilever (HUL) and ITC could be of interest to Coty, said a Mumbai-based analyst. But it is unlikely either company would consider divesting those units at this point, he added.
Coty’s Fishoff said it was his understanding that Unilever had no plans to dispose of HUL’s skin care and fragrance business. He was not familiar with ITC.
ITC told this news service previously that it was seeking acquisitions in the FMCG space. An HUL spokesperson declined comment on HUL’s acquisition strategy.
Another option for Coty could be to engage in a joint venture with a domestic brand after partnering with a strong distributor, said an Indian banker. “Why does Coty want to come to India?” the banker asked. “Does it want to sell a few products at high volumes or many products at lower volumes?” Especially if Coty is after the latter, it would need to partner with a national retail chain with a strong distribution network, he said.
While larger companies might not be willing to sell at this time, many small companies could see advantages from a tie-up – especially one with a global player, a second banker said. He pointed to Emami’s October acquisition of Zandu Phamaceuticals Works as evidence of M&A interest in the space.
But those companies may not meet Coty’s size requirement, the analyst said. In India, not many companies hit USD 50m in sales for their skincare and fragrance brands alone, he explained. The entire skincare market in India is thought to be worth about USD 500m, with the fragrance and deodorant market accounting for a lot less. Potential deals could be done at 1x-2x sales, the analyst added.
JPMorgan has been mandated by Coty for past M&A deals, but new advisor approaches would be considered, said Fishoff. “We are constantly looking at acquisitions and that [identification of targets] is a challenge for bankers right now.” It has used law firm Covington & Burling for past deals.
Acquisition financing would be generated via existing cash flow, reserves from parent Benckiser and tapping the financial markets, Fishoff said. “There is available capital for deals, especially with interest rates down.”
Outside of opportunistic buys, the company plans to grow through international alliances and organic growth. Deloitte & Touche provide accounting services.

BRS Labs to shop for a banker in January, expects to sell to larger company in six to nine months, chairman says

2008-11-16T05:33:00.000-05:00

BRS Labs, a private Houston, Texas-based company that specializes in using artificial intelligence for video surveillance, plans to look for a banker in January, said Chairman and CEO Ray Davis.
The company is not ready to hire a banker today, as it is in the midst of proving its technology’s commercial viability. Still, BRS Labs is progressing “very quickly” and expects to sell to a larger entity in six to nine months, he said.
BRS Labs has contracts in the pipeline worth USD 100m, Davis said. However, the company expects to be valued based on its intellectual property and on the potential uses of its technology, rather than on its revenue. BRS Labs expects an exit north of a billion dollars, Davis said.
An industry analyst said, and an industry banker agreed, that New York-based L-3 Communications is one company that could take a look at BRS Labs. The reason, according to the analyst, is that L-3 is always looking at companies that can add to its portfolio of security technology.
Among L-3’s products are surveillance and reconnaissance systems. The company’s customers include the Department of Defense.
The industry banker said that another company that could find the technology of BRS Labs fitting, is NYSE-listed and Melbourne, Florida-based Harris Corporation. Harris too, has a focus on the government sector, including the Department of Defense and NASA, and is also known for helping to provide a secure White House/Kremlin link during the early days of the Cold War, said the banker. Harris has a market capitalization of more than USD 5bn.
The banker described a sales price tag of USD 1bn or more seemingly "a best case scenario," but said he could not rule it out either. He said that at a lesser price range, BRS could be a potential fit with a company such as Fairfax, Virginia-based and NASDAQ-listed ManTech International. With a market capitalization of nearly USD 1.9bn, ManTech provides technology and solutions for national security programs for the intelligence community and the Department of Defense.
Davis founded BRS Labs in November 2005 - this is his eighth company. The company has received funding of USD 23m. The company’s business plan is to build a product, prove its viability, and then sell to a larger company, he said.
Behavioral Recognition Systems (BRS) Labs is a software company that developed an adaptive learning video surveillance algorithm called AISight. The patented software analyzes video feed and makes observations about normal behavior based on the activity in that environment and then flags events that are out of the ordinary.
BRS Labs’ technology is used for surveillance of subways, military targets, borders and embassies. The technology has fewer false positives and requires less human intervention than standard surveillance programs, Davis said.
BRS has more than 35 engineers working in the area of artificial intelligence.

Richelieu Hardware will consider more acquisitions in 2008

2008-02-28T16:37:00.001-05:00

Richelieu Hardware, the listed Canadian hardware retailer, stated in an annual report released on 27 February that it will consider buys in the coming year.
The company stated: "We will carefully select the best acquisition opportunities according to our criteria of profitability and long-term growth."
The company stated it had annual revenue of CAD 436.7m (USD 449.5m) during 2007.

Google hires Credit Suisse to advise on potential Yahoo stake - rumor

2008-02-28T16:36:00.001-05:00

Google has hired George Boutros of Credit Suisse on a potential acquisition of just under 20% of Yahoo, potentially disrupting Microsoft’s bid, according to a report on Techcrunch. The blog cited sources with knowledge of the deal saying Boutros was hired the day after Microsoft’s bid. However, only one source reported that Boutros may be advising on acquiring a stake in Yahoo. The goal of such a deal could be to delay any merger with Microsoft in order to buy Google time to react to the change in the competitive landscape.
The blog cautioned that arbitrageurs had not yet heard any rumor regarding an upcoming offer from Google. Henry Blodget at Silicon Alley Insider wrote that such a move could be possible, despite the high cost of Yahoo’s stock. Blodget pointed out that Google currently has USD 14bn in cash, and would still have considerable reserves if it decided to take a blocking stake. Furthermore, Google pulled a similar trick with AOL when Microsoft and Yahoo were considering bids for the Time Warner unit.
Kara Swisher at All Things Digital wrote that such a move would be detrimental to Google anyway, both because of the expense of Yahoo stock and the shareholder lawsuits that would likely result from the play.

TransCanada Corporation mulling acquisitions

2008-02-28T16:35:00.002-05:00

TransCanada Corporation, the Canadian energy services firm, stated in its annual report released on 27 February that it will consider using buys for growth.
The company stated that it is pursuing the development of greenfield and brownfield pipeline projects to grow its North American pipeline and related infrastructure business, which includes frontier natural gas pipeline projects such as the Mackenzie Gas Pipeline (MGP) and the Alaska Pipeline as well as crude oil pipeline projects to meet the growing demand for transportation of Alberta oilsands production.
The company stated that other possible avenues of growth include the following: "acquiring synergistic natural gas transmission assets that complement TransCanada’s existing core regions; acquiring partners’ interests in associated pipelines to enhance strategic control, profitability and value; and acquiring stand-alone gas transmission enterprises in new regions of North America where critical mass and solid competitive advantage can be established".
The company stated that, in addition, it is also pursuing the development of natural gas pipeline infrastructure and associated LNG regasification terminals in Mexico and aims to grow pipeline earnings from PipeLines LP through acquisitions and organic growth.
The company reported CAD 1.22bn (USD 1.25bn) in net income from continuing operations for the year ended 31 December 2007.

Electronic Arts standing on USD 26 offer; CFO says Take Two's undervaluation argument is unrealistic

2008-02-28T16:35:00.001-05:00

Electronic Arts (EA) is standing firm on Sunday's offer of USD 26 per share to acquire rival Take Two Interactive Software, said CFO Warren Jenson in an interview. Calling the number "hugely pre-emptive," he said Take Two's demand for a higher bid was unrealistic.
Jenson declined to comment on whether management has discussed offering more. Take Two's stock price was USD 17.36 last Friday before the offer was publicly disclosed.
Earlier this week, a top Take Two shareholder told this news service that USD 30 per share was a more realistic price. He cited the upcoming 29 April release of Grand Theft Auto 4 and other cost-cutting measures that Take Two has said have not yet been recognized by the market.
"It's a dance, right," said EA's Jenson of Take Two's rejection of the offer. "There's not a shred of historical evidence to show that is the case," he said of assertions that Grand Theft Auto 4 sales would dramatically change Take Two's value.
As the seventh version of the game, Jenson said there is plenty of data to predict sales. While he said EA may not dramatically increase its US and UK sales, it could in more far-flung markets such as Spain or Russia.
"They're [EA] very serious here," said Kaufman Brothers analyst Todd Mitchell. "They took some money out of short term investments and put it into cash." Still Mitchell said he remains unconvinced a deal will close as the Take Two acquisition is not an imperative for EA.
"If they overpay for this thing, people are going to smell desperation," he said.
EA's Jenson said it may drop the size of its bid if Take Two does not act quickly enough.
Speaking Wednesday afternoon, he warned that the pressure is on to finish a deal in order to integrate Take Two's management into EA in time for this year's holiday season. The period can account for some 40% of video game sales, he said.
"We just don't need both," he said in reference to overlap in EA's and Take Two's management. Creative personnel may be a different story.
Rockstar Games – the Take Two publisher of the Grand Theft Auto series – is a "significant part of this transaction," said Jenson. Yet the value of Rockstar is said by some to be tightly aligned with Dan Houser, its president, and his brother, Sam Houser, vp creative.
"Everyone acknowledges the Housers are the glue that keeps this [Grand Theft Auto] together," said Michael Pachter, an analyst with Wedbush Morgan Securities.
But it is unclear whether the two would be willing to move to EA – particularly with a contract that is said to give them a cut of gross revenues from Take Two's Grand Theft Auto sales. "The myth is they get 15% of revenues," said Pachter, "I think that's probably right."
With that standard dangling before employees – and a history of building controversial themes such as sex into Grand Theft Auto – Pachter questioned whether EA would want the two in-house. Earlier this week, Pachter publicly suggested that EA split Rockstar off into a separate company to avoid some of these issues.
"The analysts see Rockstar and they see risk," said EA's Jenson. "We see Rockstar and we see opportunity."
While he said he had some understanding of the Housers' contracts, he declined to specify what that was.
Instead, he said he believed that the Housers would be comfortable working within EA.

Microsoft acquires YaData

2008-02-27T13:57:00.001-05:00

Microsoft today announced an agreement to acquire Israel-based YaData, a provider of advanced tools for the discovery of unique customer segments. According to a report in The Globes citing sources, the price tag is between USD 30m and USD 40m.
YaData’s technology will enable Microsoft to provide its advertisers with richer targeting capabilities so they can connect with their audience in more efficient and engaging ways, at the same time providing its customers more relevant and focused ads. The YaData team will join Microsoft's Israel R&D center in Herzliya and YaData’s solutions will be deployed through Microsoft’s Advertiser and Publisher Solutions group.
"The purchase of YaData brings the Israeli R&D center into the field of online advertising, which is undoubtedly one of Microsoft’s most strategic fields,” said Moshe Lichtman, President of the Microsoft Israel R&D Center. “This is a great example of how Israeli technology has considerable value that is contributing to our most important areas of development. In recent months, I have become familiar with YaData's top quality personnel, and I am convinced that their contribution to the Israeli R&D center and to Microsoft globally will be significant."
YaData, founded in July 2006, is headquartered in Tel Aviv, Israel and has received funding from Israeli venture capital funds Giza and Ofer Hi-Tech. The company's solutions provide marketing managers with the tools necessary to automatically identify and target specific customer groups. YaData's technology will be integrated into Microsoft's Advertiser and Publisher Solutions group and will add advanced behavioral targeting tools and capabilities to Microsoft's online advertising platform. The addition of YaData’s technology will help Microsoft’s efforts to improve advertisers' ROI and to provide more focused and relevant advertising, tailored to specific client needs. In addition, the integration of YaData’s solutions with Microsoft will help improve Internet content creators’ ability to monetize their inventory.
“YaData fully believes in the potential of behavioral targeting to enhance the value of online advertising for publishers, advertisers and users,” said Amir Peleg, chief executive officer of YaData. “Microsoft has the resources to unlock the potential in YaData’s technology and create a truly innovative online advertising solution. We’re excited to see what the future holds.”
Microsoft is committed to providing best-in-class audience segmentation and targeting without using personally identifiable information. As YaData’s technology is incorporated into Microsoft’s advertising platform, Microsoft will continue to adhere to its high standards for the protection of consumer privacy. The acquisition is subject to certain closing conditions, including receipt of required regulatory approvals. It is expected to close after the required regulatory approvals are received.

RealNetworks could use cash to pursue M&A - research report

2008-02-27T12:41:00.001-05:00

RealNetworks Inc., a Seattle, Washington-based digital media company, could pursue acquisitions with cash, Bear Stearns said on 27 February.
"Real has ~USD 3.15/share in net cash," said Kunal Madhukar, Bear Stearns' digital media analyst, in a research report focusing on developments at management meetings held yesterday. "Uses of cash include potential acquisitions especially if valuations become more attractive in a weakened economic environment, as well as to ensure major partners (like Verizon) are comfortable with liquidity. However, share buybacks remain an alternative use of funds."
Real's market cap is USD 900.7m.

Tim Hortons may use M&A for growth

2008-02-27T12:40:00.001-05:00

Tim Hortons, the listed Canadian donut and coffee chain, will consider using M&A for growth, according to an annual report released on 26 February.
The company stated: "We intend to evaluate other potential mergers, acquisitions, joint ventures, investments, strategic initiatives, alliances, vertical integration opportunities and divestitures when opportunities arise or our business warrants evaluation of such strategies."
The company stated it had CAD 1.25bn (USD 1.25bn) in revenue during 2007.

Dell a potential takeover target - report

2008-02-26T16:16:00.001-05:00

Dell, the listed Round Rock, Texas-based computer and peripherals manufacturing company, is a potential takeover target, according to Investor's Digest of Canada.
In a report from the 29 February edition of the investment advisory, analyst Larry MacDonald cited a previous report in which a columnist indicated that Dell was among a group of eight businesses that warranted the takeover-candidate status.
However, the report noted that Dell, though its stock is relatively inexpensive, is still an improbable takeover candidate.
Dell's market cap is USD 45.58bn.

Electronic Arts could try to replace Take-Two board to get deal done - report

2008-02-25T08:54:00.001-05:00

Electronic Arts, the listed, Redwood City, California-based video game maker whose USD 2bn offer for Take-Two was rejected, could try to replace the board, reported the New York Times. Take-Two is a listed New York-based developer, marketer, distributor and publisher of interactive entertainment software games and accessories.
The unsourced portion of an article looking at the deal, reported that Electronic Arts could opt to launch a proxy contest to replace Take-Two's board to get a deal done. According to the report, Electronic Arts' chief executive John Riccitiello will have to convince investors to accept the offer over the next several weeks as well as convince employees that Electronic Arts will respect the independence of Take-Two's game developers.

Microsoft could be more successful with Yahoo bid if it pays cash - report

2008-02-22T08:34:00.001-05:00

Microsoft, the Washington listed software company, could be more successful in its bid for Yahoo if it pays cash, reported the Wall Street Journal. The unsourced report, part of the paper's Breaking Views column, speculated that if Microsoft were to pay USD 44.6bn in cash for California listed Yahoo, and financed part of the deal with debt, that may please Microsoft shareholders because of the tax benefits associated with it. As for Yahoo shareholders, they may prefer cash to Microsoft's shares. The report noted Microsoft should have little trouble selling to debt involved in a deal to investors.

Phillips, Hager & North Investment Management to be acquired by Royal Bank of Canada

2008-02-22T08:30:00.000-05:00

Royal Bank of Canada (RY on TSX and NYSE) announced that it entered into a definitive agreement to acquire Phillips, Hager & North Investment Management Ltd (PH&N), according to a 21 February press release.
The transaction is subject to regulatory approvals and other customary closing conditions and is expected to close on or about 30 April 2008.
Under the terms of the agreement, PH&N shareholders will receive 27m RBC common shares, with a portion deferred until three years after closing. The transaction is not expected to have a material impact on earnings per share in the near term.
"We've chosen to join forces with RBC because of the many benefits it affords PH&N clients, especially with respect to the kinds of investment opportunities they will need to be successful over the long term," said John Montalbano, the president of PH&N. "RBC has the commitment and resources to leverage our strengths with institutional, private client and mutual fund clients. In all, it's a great result for our clients, for the two companies, and for our people who have made PH&N the success it is today."
"Success in our business is always driven by the quality of our people. We are thrilled that such a talented and committed team is joining us at RBC," said Gord Nixon, the chief executive officer of RBC.
"Together, our vision is to be a clear leader among Canadian-based asset management companies, and to continue to grow our global capabilities in investment management for institutional, retail and high net worth clients," said George Lewis, the group head of RBC Wealth Management and currently CEO of RBC Asset Management.
Third-party rankings and surveys position PH&N highly for both performance and client service - two competitive strengths shared by RBC. "This transaction leverages the respective strengths and growth opportunities of two leading asset management companies," said Lewis. "We are extremely proud of the success of RBC's industry leading investment performance, most recently reflected in our receipt of the 2007 'Best Overall Fund Group' award in Canada from Lipper Inc., for delivering consistently strong risk-adjusted performance relative to peers."
With combined assets under management in Canada exceeding $160bn (based on RBC's and PH&N's respective year-ends), the two businesses will form one of the largest private sector asset managers in Canada. Specifically, the transaction:
- Will create one of the largest private client investment counselling businesses in Canada with market strengths coast-to-coast, and notably in Western Canada;
- Will make RBC one of the top five managers in the Canadian institutional market for defined benefit and defined contribution pension plans;
- Will significantly extend RBC's existing leadership in the Canadian retail mutual fund market; and
- Is expected to be seamless for clients, and create significant benefits in terms of advice, expertise and investment options.
Said Lewis: "We want to be the first choice for every client in Canada with asset management needs. With this announcement, we have an even stronger team, a larger playing field, and a well diversified, stable business mix, with strengths and talent across all asset classes, client segments and distribution channels of asset management."
Montalbano will become the CEO of the combined organization comprising PH&N and RBC's asset management business. Upon closing, PH&N will become part of RBC Wealth Management. In the new organization, Brenda Vince, the president of RBC Asset Management, will lead the combined mutual fund and high net worth businesses. Dan Chornous, currently CIO of RBC Asset Management, will be the CIO of both PH&N and RBC Asset Management. PH&N's Hanif Mamdani will be head of alternative investments for both PH&N and RBC Asset Management. Damon Williams will continue to be head of institutional management at PH&N, which will remain headquartered in Vancouver.

SABMiller interested in further growth opportunities

2008-02-22T08:29:00.000-05:00

SABMiller, the international brewing company, is interested in looking for further growth opportunities in developing markets, according to Business Day.
The report, which cited SABMiller spokesperson Nigel Fairbass, noted that the company could be interested in opportunities in Asia as well as southeastern Asia.
Citing an industry analyst, the report noted that the brewer could also look at growth prospects in Mexico and Russia. The report noted that a potential acquisition of Femsa, the Mexico-based beverage company, could provide SABMiller with access to the Brazilian market.
The sector analyst also reasoned that Carlsberg could be a possible target for SABMiller as Carlsberg could be overextending itself as a result of its bid for Scottish & Newcastle.
Fairbass was cited as saying that SABMiller concentrated on the premium sector in Russia and that there is not a significant following of beer brands in Russia.

Rio Tinto/BHP Billiton: Competition concerns will be evaluated around iron ore, uranium and coaking coal - report

2008-02-21T16:52:00.001-05:00

Competition concerns regarding the takeover bid by BHP Billiton for Rio Tinto would be evaluated around iron ore, uranium and coaking coal, the Sydney Morning Herald reported. The unsourced report in the paper's Xchange column said it was not yet certain that BHP would need to divest assets in order to gain regulatory approval. The article noted that Anglo American's chief executive, Cynthia Carroll, commented she could be keen on purchasing assets that would need to be sold by BHP/Rio to get competition regulator approval. The paper said NSW or Queensland-based coal mines and iron ore mines in the Pilbara were likely desired assets.
Rio Tinto’s market capitalisation currently stands at GBP 85.78bn.

Google rumored to acquired Bigmir)net for USD 100m - report

2008-02-21T16:51:00.001-05:00

Google, the listed Mountain View, California-based internet giant, has been rumored to have acquired Bigmir)net, the Ukrainian portal, for USD 100m, TechCrunch reported, citing local press reports.
The blog reported that Bigmir)net is a version of Mail.ru, which was a site that Google reportedly was interested in acquiring. Mail.ru had a valuation of USD 1bn.
TechCrunch reported that Quintura said Bigmir)net was launched in September 2000 and reported its 2006 revenue was USD 15m.

Canadian National Railway: Government could be contemplating changes in ownership limits - report

2008-02-21T10:38:00.000-05:00

Canadian National Railway, the listed Montreal, Quebec-based entity, could see the Government of Canada change ownership caps, the National Post said.
An unsourced section of a 21 February report focusing largely on possible changes to Canada's airline sector foreign-ownership regulations noted that the federal government could makes changes to Canadian National ownership limits. Under the current rules, no single investor can own more than 15% of the company's outstanding stock. According to the report, the government will not press ahead with any changes until a current review of the country's foreign-ownership and competition regulations is completed.
Canadian National's market cap is USD 25.42bn.

Agrium could pursue large acquisitions next year

2008-02-21T09:10:00.000-05:00

Agrium, the listed Calgary, Alberta-based agriculture retailer and fertilizer entity, could pursue big acquisitions next year, according to the Calgary Herald.
Mike Wilson, CEO of Agrium, said in the 21 February news report that the company, which is buying listed Greeley, Colorado-based rival UAP Holdings, could seek out large acquisitions between the second half of next year and 2010.
He explained that his company, which could pursue opportunistic acquisitions if suitable large targets are not found, will hold off on imminent transformational buys until it has "integrated" UAP.
In the report, Wilson discussed his company's plans to grow and to pick up additional market share in the US market.

Air Canada shareholder ACE's majority stake more appealing as gov't entertains possible review of foreign-ownership laws - report

2008-02-21T09:08:00.000-05:00

ACE Aviation Holdings could more easily unload its 75% stake in Air Canada now that the federal government is believed to be open to taking another look at the country's airline industry foreign-ownership rules, the National Post said.
The 21 February report cited unidentified sources as saying that the government of Canada has been seriously considering upping foreign-ownership caps in the airline sector, though it likely will not move on that front until a current review of the country's foreign-ownership and competition regulations is completed.
The report noted that Robert Milton, chief executive officer of listed Montreal, Quebec-based ACE, previously said that pension funds and private equity companies have already expressed an interest in listed Dorval, Quebec-based Air Canada. He added that Air Canada could end up being picked up by a US player. However, the current rules would prevent a US rival from acquiring in excess of 49% of Air Canada's equity and over 25% of its voting stock. Unidentified senior Ottawa-based sources said in the report that the federal government's desire to review foreign-ownership regulations in the airline industry is motivated by a strategy to inject Canada's airline sector with additional investment while not giving foreign interests complete control over the sector.

ING Groep may not sell ING Canada

2008-02-21T09:07:00.000-05:00

ING Groep, the listed Amsterdam, Netherlands-based company that recently sold its Mexican property and casualty insurance unit, is unlikely to sell ING Canada, according to a report in the National Post.
Charles Brindamour, chief executive of ING Canada, was cited in the 21 February news report as saying that ING Groep will more likely than not opt for keeping its 70% interest in ING Canada, though the listed Toronto-based P&C insurance entity is "not core" to the parent company's business.
ING Canada's market cap is CAD 4.59bn (USD 4.53bn).

Wells Fargo plans to make around 15 buys this year

2008-02-21T08:58:00.000-05:00

Wells Fargo, the California listed bank, plans to make around 15 acquisitions this year, reported the San Jose Mercury News. The report, citing comments Wells Fargo chairman Richard Kovacevich made on Bloomberg TV, noted that Kovacevich said the prices of targets have come down enough for Wells Fargo to increase its pace of buys. The report noted that targets will likely be bigger than Wells Fargo's recent buys. Wells Fargo has a market capitalization of USD 102bn.

Staples mulling raising its offer for Corporate Express - report

2008-02-21T08:48:00.000-05:00

Staples, the Massachusetts-listed office supplies retailer, is mulling raising its offer for Corporate Express, reported the Boston Herald. The unsourced article in the paper's Ticker section reported that Staples is mulling making a higher bid, after Dutch stationery distributor Corporate Express rejected its offer. Staples has a market capitalization of USD 16.2bn.

Yahoo embraces new severance plan to fight off Microsoft - report

2008-02-20T10:05:00.001-05:00

Yahoo, the Sunnyvale, California listed Internet company, that is fighting a hostile bid from Microsoft, embraced a new severance plan to try to fight off Microsoft, reported the Boston Herald. The unsourced report, part of the paper's Ticker section, reported that Yahoo is offering severance plans that pay employees for as long as two years. Microsoft made a USD 44.6bn offer for Yahoo.

Motorola completes Soundbuzz acquisition; Motorola, RIM exchange lawsuits - report

2008-02-20T10:04:00.000-05:00

Motorola, the Schaumburg, Illinois-based electronics company, completed its announced acquisition of Soundbuzz, the Chicago Tribune reported.
The newspaper cited information from Motorola regarding the purchase of the digital music provider, based in Singapore.
The Chicago Sun-Times, meanwhile, reported that Motorola and Research In Motion, which makes BlackBerry handheld devices, have sued each other. RIM, based in Waterloo, Ontario, and Motorola have collaborated as well as competed over a number of years, the news report said.
Each company is claiming the other is using technology without the permission of the other, the report said. It cited a Motorola spokesperson as saying the complaint by RIM has not been reviewed.

Corus Entertainment sees no 'imminent' M&A activity, CEO says

2007-01-11T13:20:00.001-05:00

Corus Entertainment, the listed Canadian radio and television broadcasting firm, anticipates no M&A deals in the foreseeable future, noted the National Post.
John Cassaday, the chief executive of the company, was cited in the 11 January report as saying that he does not anticipate "imminent" M&A-related "activity" in 2007. He acknowledged in the report, which concentrated in the company's Q1 results, that Corus was interested in buying listed Canadian media firm Alliance Atlantis Communications' broadcast assets. However, CanWest Global Communications, a listed Canadian rival, and Goldman Sachs yesterday announced a USD 1.960bn deal to buy Alliance Atlantis.

CanWest Global Communications and Goldman Sachs Capital Partners acquire Alliance Atlantis Communications for USD 1.96bn

2007-01-11T13:19:00.001-05:00

anWest Global Communications and GS Capital Partners, a private equity affiliate of Goldman Sachs, said a new acquisition company will acquire Alliance Atlantis Communications. The new acquisition company will acquire all of its outstanding class A voting and class B non-voting shares at a purchase price of CAD 53.00 per share in cash for an aggregate price of CAD 2.3bn 9USD 1.96bn).
"Today's transaction is consistent with CanWest's strategy to enhance its existing television business and expand its presence in the fast growing specialty television sector," said Leonard Asper, President and CEO of CanWest. "The combined expertise of CanWest and Alliance Atlantis will enable us to produce even better Canadian content, promote it more effectively, and provide greater access to more viewers across more platforms. We are thrilled to be working with Goldman Sachs to effect this strategic transaction."
The acquisition of Alliance Atlantis is to be carried out by way of a statutory Plan of Arrangement. The newly formed acquisition company is an indirect wholly-owned subsidiary of CanWest. The Arrangement requires a vote by Alliance Atlantis' Class A voting and Class B non-voting shareholders at a meeting of shareholders, which is currently expected to be held in the spring of 2007. Shareholders representing approximately 80% of the Class A voting shares, have agreed to vote their shares of Alliance Atlantis in favour of the shareholders' resolution approving the Arrangement.
The Arrangement is also subject to court approval as well as certain other customary conditions, including the receipt of regulatory approvals. Pending approval from the Canadian Radio-television and Telecommunications Commission ("CRTC") for the change of ownership and transfer of control of the specialty television channels, the securities of the relevant regulated entities will be deposited with a trustee pursuant to a voting trust agreement approved by the CRTC.
A special committee of the board of Directors of Alliance Atlantis, comprised of Robert Steacy (Chair), Barry Reiter and Anthony Griffiths (the "Special Committee"), has reviewed the plan of arrangement in consultation with its legal and financial advisors. The special committee unanimously recommends the plan of arrangement to the company's board of directors, and the board of directors unanimously recommends (with one director recusing himself due to conflict) that shareholders vote in favour of the Arrangement. RBC Capital Markets has provided an opinion to the board indicating that, as of the date of such opinion, the consideration under the plan of arrangement is fair from a financial point of view to the shareholders.
A CanWest-controlled company will be the controlling shareholder of Alliance Atlantis following the closing of the transaction (expected to occur by summer 2007). It is intended that a reorganization of Alliance Atlantis will take place to separate the businesses of the Company as follows: upon receipt of CRTC approval, Alliance Atlantis' specialty television business and CanWest's Canadian television business will be managed on an integrated basis by CanWest and ultimately combined; it is intended that Alliance Atlantis' Motion Picture Distribution business will be controlled by a Canadian partner of GS Capital Partners; and it is intended that GS Capital Partners will own 100% of Alliance Atlantis' financial interest in the highly successful CSI franchise.
As part of this new relationship with Goldman Sachs, CBS will assume international distribution of CSI, CSI: Miami and CSI: NY.
The formal combination of the broadcast businesses will occur sometime in 2011. The equity of each of CanWest and GS Capital Partners in the combined entity will be determined by the EBITDA of the combined operation at that time. There are a variety of customary liquidity mechanisms that will be available to the parties following the combination.
CanWest was advised by Genuity Capital Markets and GS Capital Partners was advised by Goldman, Sachs & Co. Alliance Atlantis was advised by RBC Capital Markets.

eBay acquires online tickets marketplace StubHub

2007-01-11T13:16:00.002-05:00

eBay announced on 10 January 2007 it has agreed to acquire privately held StubHub, a leading online marketplace for the resale of event tickets.
The acquisition will enable eBay to expand its presence and offering in the online tickets segment, while allowing StubHub to continue to scale its business with the e-commerce expertise and resources of eBay.
eBay has agreed to purchase StubHub for an estimated aggregate value of approximately USD 310m, which will include the company's net cash as of the closing. The final amount will be determined at closing payable in cash.
StubHub is the fan's ticket marketplace, enabling customers to buy and sell tickets at fair market value to a vast selection of sporting, concert, theater and other live entertainment events, even those that are "sold out".

Sirius Satellite and XM Satellite Radio merger would face big regulatory issues - report

2007-01-11T13:16:00.001-05:00

Sirius Satellite Radio, the New York listed radio satellite company and its Washington DC competitor XM Satellite Radio, would face big regulatory issues if the merger takes place. The unsourced Wall Street Journal report, part of the paper's Breaking Views column, reported that while an analyst at Lehman Brothers said the two companies combined could save USD 1.3bn annually, the regulatory issues with a deal could make a merger hard to get done. According to the report, a way to get around some of the potential regulatory concerns over increased prices if the two combined is to either argue satellite radio is not a competitor to terrestrial radio and digital music or for the combined company to offer voluntary controls over price.

Sears sees speculation that it could be getting ready to make a large buy - report

2007-01-11T13:15:00.002-05:00

Sears, the Illinois listed retailer, is seeing speculation that it could be getting ready to make a large buy, reported the Wall Street Journal. The report, part of a story looking at the company's fourth quarter financial results, said that Sears had a large cash balance at the end of the fourth quarter, which has prompted talks that it could make a large strategic buy in 2007. According to the unsourced report, Sears expects to end its fiscal year with USD 3.5bn in cash.

Wells Fargo open to possibility of more deals

2007-01-11T13:15:00.001-05:00

Wells Fargo, a listed California bank, is open to the possibility of more deals, said Felix Fernandez, the northern California regional president for Wells Fargo's community banking division.
An American Banker report said that Fernandez declined to discuss whether Wells would seek more deals, but said the bank is open to being acquisitive. On 10 January, Wells Fargo said it would acquire California-based Placer Sierra Bancshares for USD 645m.

Bank of America does not 'need' big buy to prop up EPS in '07 - research report

2007-01-11T13:14:00.001-05:00

Bank of America, the listed North Carolina bank, does not "need" to do a major deal to sustain earnings per share in 2007, Citigroup reports.
Citigroup made the remarks in a 5 January research report about multiple banks. The report was prepared by Keith Horowitz, Brian Mauney, and Stephen Kapsky, and discussed the outlook for multiple US banks in 2007.
In discussing Bank of America, the report said that the company has "significant fuel" to power growth via organic means. The report characterized "fears" that a "large international" buy could take place in the near future as "overblown." The report said that its analysis of Bank of America's business performance during 2006 versus its guidance showed the company performed at or above expectations.
The report said that, in general, Citigroup expects 2007 to show "below trend" growth, with growth at about 4% versus 14% during 2006.
However, Citigroup believes that in 2008, the company's earnings per share will reflect growth of 11%.
Bank of America had a market cap of USD 239.9bn in morning trading on 11 January.

Lukoil: ConocoPhillips increases stake to 20%

2007-01-10T09:30:00.001-05:00

Lukoil, the listed Russian oil firm, has seen US-listed energy giant ConocoPhillips increase its stake in Lukoil to 20%, at the end of 2006. This was reported in Vedomosti, which referred to ConocoPhillips’ preliminary reports for Q4 2006.
A Rzeczpospolita report referred to Lukoil and wrote that ConocoPhillips increased stake from 18% to 20%, as it was anticipated in a strategic agreement between the parties. Vedomosti reported that in 2004, ConocoPhillips bought over 11% ordinary shares in Lukoil.
In 2005, Lukoil recorded sales of USD 55.7bn, according to company web site.

Gap not likely to garner more than USD 25 a share in sale - report

2007-01-10T09:29:00.003-05:00

Gap, the California listed retailer that has hired Goldman Sachs for advising, is not likely to garner more than USD 25 a share in a sale, reported the Wall Street Journal. The report, citing option traders, reported option trading shows that most traders do not expect an offer to be higher than USD 25 a share.
Meanwhile a report in the paper's Breaking Views column, reported Gap may be ideal for a LBO given it has USD 2bn in cash and does not need more. According to the unsourced report, Gap could be valued at USD 17bn net of cash, in an LBO. The report speculated Gap could borrow USD 12bn with suitors having to come up with USD 5bn. The report was part of the paper's Options column.
Gap has a market capitalization of USD 16.4bn.

EnCana intends to buy Trident Resources - report

2007-01-10T09:29:00.001-05:00

nCana, the listed Canadian energy giant, is reportedly interested in buying Trident Resources, the unlisted Canadian energy player, said the Globe and Mail.
The report cited an unidentified source in Calgary, Alberta as saying that EnCana has already inked a letter of intent to purchase the natural gas player. Moreover, another unidentified source, who said in the report that a deal could materialize within a "few days," added that EnCana could be willing to spend in excess of USD 1bn to buy Trident. Trident, which the report said has debt worth over USD 700m, has a gas-from-coal focus, an area of interest of EnCana. The deal, if it proceeds, would represent EnCana's biggest buy in close to 36 months.

Jean Coutu Group gears up for more Canadian acquisitions - report

2007-01-10T09:28:00.001-05:00

Jean Coutu Group, a listed Canadian pharmacy chain, is gearing up for more acquisitions in Canada, according to a Globe and Mail report on 10 January.
Francois Coutu, who heads up Jean Coutu Group's Canadian business, was cited in the report as saying that the company is currently concentrating on closing a business transaction to sell to listed Pennsylvania-based Rite Aid its US drugstores. Once the deal is done, Jean Coutu Group will focus on growing its Canadian business via acquisitions, he explained. He added, however, that while the company will consider buying chains and independent outlets, it will not rush its growth strategy.
For the five weeks ended 30 December 2006, the company's Canadian franchise network's same store retail sales were up 8.4%, pharmacy same store sales gained 9.4% while front-end same store sales increased 7.4% year-over-year. The network showed a 9.1% increase in total retail sales compared with the same period last year. Retail sales for the period were CAD 290m (USD 246.2m).

CanWest confirms exclusive talks on possible purchase of Alliance Atlantis

2007-01-10T09:26:00.000-05:00

In response to media speculation, CanWest Global Communications Corp. (CanWest) today confirmed that it has entered into exclusive discussions regarding the possible purchase of Alliance Atlantis Communications Inc. (Alliance Atlantis).
CanWest in conjunction with private equity firm, Goldman Sachs Capital Partners, has entered into discussions with Alliance Atlantis and its controlling shareholder Southhill Strategy, which is owned by Alliance Atlantis's executive chairman Michael MacMillan and Seaton McLean. There can be no assurance that these discussions will result in a definitive agreement.

News Corp. could move to buy Dow Jones in 2007 - report

2007-01-02T09:05:00.003-05:00

News Corp., the New York listed media company, could buy Dow Jones in 2007, reports the Los Angeles Times. The report, part of the paper’s annual predictions column, reported News Corp. could move to buy Dow Jones, also of New York, to boost its business news cable channel. The report predicts that if News Corp. does do that, some investors will express anger that it spent USD 5bn on an old media company when it could have acquired CNet for less. The predictions in the paper are based on interviews with analysts, investors and executives as well as the paper’s own guesswork, according to the La Times.

Yahoo could look for merger partner in 2007 - report

2007-01-02T09:05:00.001-05:00

Yahoo, the California listed Internet company, could look for a merger partner in 2007, reported the Los Angeles Times. The report, part of the paper’s annual predictions column, reported that Yahoo could look for a merger partner in 2007, to help it compete better against Google.
According to the report, potential partners include Time Warner’s AOL, Microsoft’s MSN and eBay. The report noted Yahoo could also look for a merger with an older media company as well.
Yahoo has a market capitalization of USD 34.7bn. The predictions in the paper are based on interviews with analysts, investors and executives as well as the paper’s own guesswork, according to the LA Times.

Home Depot: PE group could be willing to table USD 100bn offer - report

2007-01-02T09:04:00.001-05:00

Home Depot, the Georgia listed home improvement retail operator, could possibly be taken out for USD 100bn, suggested a report in the Globe and Mail.
According to an unsourced section of a 2 January report, American private equity concerns Texas Pacific Group and KKR could possibly be willing to table that amount for the American retailer that recently acquired a Chinese business.
The report, which focused on the potential for more private equity buyouts in 2007, noted that the idea of a private equity group willing to table USD 100bn for a target would have been deemed ridiculous by investors just a few years back.

Citigroup considers making possible acquisitions in Italy in credit card and personal loan sector, CEO says

2006-12-22T08:40:00.001-05:00

Citigroup, the US bank, intends to consider making possible acquistions in Italy, reported Panorama. Charles Prince, Citigroup's chief executive, said in an interview that the company is interested in making acquistions in Italy and that sectors such as credit cards and personal loans can still give good results.
Citigroup reached profits of EUR 24.6bn in 2005.

Alcan could receive takeover bid from foreign entity - report

2006-12-22T08:39:00.001-05:00

Alcan, the listed Canadian aluminum giant, could eventually be subject to a takeout offer, according to a professor cited in the Montreal Gazette.
In the report, Prof. Joseph D’Cruz from the University of Toronto, said that Alcan, whose shares do not adequately reflect the company's value, could become a target for a foreign buyer if Canada's currency continues to slip in value.
Alcan's market cap is USD 17.71bn, according to Yahoo Finance.

Level 3 Communications may be acquisition candidate; Google and Qwest may bid - report

2006-12-21T11:13:00.000-05:00

Level 3 Communications, the US listed fibre optic company, may be an acquisition candidate, the Wall Street Journal reported. The report said that speculation that Level 3 might be acquired has helped to double its share price over the last year. The report said that Google, the listed internet company, could be a possible bidder. Google refused to comment, the report continued. Qwest, the listed US telecoms operator, is also believed to be looking for targets, with Level 3 believed to be figuring among them. Qwest also refused to comment, the report added. However, the report noted that some market operators believe that take-over speculation is over-hyped. Level 3 has a market cap of USD 6.766bn.

Juniper Networks still attractive takeover target despite charge caused by stock option granting - report

2006-12-21T11:07:00.001-05:00

Juniper Networks, the California-listed networking company, shouldn’t see a stock option granting scandal hurt its attractiveness as a target, reported the San Jose Mercury News.
The report, citing analysts, said that even though Juniper was taking a charge of about USD 900m due to how the company issued stock options to chief executive officer Scott Kriens, analysts said it was still an attractive takeover target given the option grants happened in 1999.
The report was part of a broader story looking at options granting at Juniper.

Aeroplan Income Fund likely to make an acquisition in 2007 - report

2006-12-21T11:06:00.001-05:00

Aeroplan Income Fund, the listed Canadian loyalty marketing company, is poised to acquire a company next year, said an analyst in the Globe and Mail.
Nick Morton, an RBC Dominion Securities analyst, was cited in the 21 December report as saying that in 2007, Aeroplan could take a run at the frequent-flier plans offered by either Varig in Brazil or Qantas Airlines in Australia.
Aeroplan’s Q3 earnings came in at CAD 34.3m (USD 30.3m), up 77%.

Nike may be looking at targets worth up to USD 500m - research report

2006-12-21T09:54:00.000-05:00

Nike, the listed athletic apparel and shoe manufacturer in Oregon, may use acquisitions worth up to USD 500m to fuel growth, Citigroup reported.
Citigroup made the remarks in a 20 December research report prepared by Kate McShane. The report ranked Nike stock as "buy" and "medium risk."
The report mentioned the possibility of acquisitions as part of its analysis of the company's prospects and growth options in 2007.
The report said that Nike has multiple growth options over the long term that are "outside" the Nike brand. These include Chinese and other international business options, women's business, and other categories. Citigroup estimates the company will have USD 1.4bn available at the close of 2007 on its balance sheet.
Based on remarks by Nike management, Citigroup said "it sounds" like the company is now "actively looking" at potential targets. Management indicated that the company would view as targets brands that can fill in its portfolio or brands with products that would not be brandable as Nike products. The report said Citigroup believes Nike would seek acquisition targets that are less than USD 500m in value in order to preserve some remaining funding for other growth methods.
The report said Nike has a USD 26.9bn market cap.

Exxon Mobil, Royal Dutch Shell and Chevron could pursue North American buys - report

2006-12-20T15:59:00.002-05:00

Exxon Mobil, Royal Dutch Shell and Chevron, the three listed oil companies, could look to pursue buys, reported the Wall Street Journal. The report, citing analysts, stated all three companies are in a good financial spot to look for buys, primarily in North America. According to the report, North America oil companies are good targets because North America is seen as a good place to engage in energy investments. According to the report, one target is Hess of New York, but analysts’ notes its market capitalization of USD 13.9bn may make it too small of a target. Other targets include Devon Energy of Oklahoma City, EnCana, Suncor Energy and Nexen of Canada and XTO Energy of Texas. ConocoPhillips of Texas is seen as a target and a buyer. Exxon is based in Texas, while Royal Dutch Shell is based in Netherland and Chevron is based in California. Chevron, with a market capitalization of USD 162bn is the smallest of the three, reported the Wall Street Journal.

Juniper Networks rumoured target or could engage in buys - analyst report

2006-12-20T15:59:00.001-05:00

uniper Networks, the California listed networking equipment company, is seeing talk it could be an acquisition target amid Ericsson's acquisition of Redback Networks, according to an analyst report.
According to a research report issued 20 December by BWS Financial analyst Hamed Khorsand, there is speculation that Juniper could be bought out or engage in a merger. According to the report, talk of Juniper being acquired is unsubstantiated. The report noted Juniper could engage in more acquisitions to remain competitive. The call was part of a broader research report looking at the Ericsson and Redback deal.
Juniper has a market capitalization of USD 11bn.

oneywell has a lot of potential acquisition targets mainly outside US - analyst report

2006-12-20T15:58:00.000-05:00

Honeywell, the listed New Jersey conglomerate that has said it will look for buys, has a lot of potential targets, according to an analyst report.
According to a research report issued 20 December by Caris & Company analyst May Anne Sudol, Honeywell has indicated it has a lot of potential acquisition targets in the pipeline with many outside the US. According to the report, Honeywell will likely look to buy companies that have a technology it would want and will likely be sensitive to price.
The call was a part of a broader research report in which Caris raised its investment rating on Honeywell to buy from above average. Honeywell has a market capitalization of USD 36.2bn.

UAL and Continental in preliminary merger talks - reports

2006-12-13T09:50:00.000-05:00

UAL Corp, owner of Ilinois-based United Airlines, is in talks with Continental Airlines on a potential merger, according to various news wire reports.
A Wall Street Journal online report said both companies have held talks for a few months but have sped up the process after the hostile bid made by US Airways Group for Delta Air Line last month.
Separately, the Wall Street Journal said that AirTran Holdings was also on the edge of launching a bid for Midwest Air Group, people familiar with the matter said. The move hints at a growing pressure for consolidation, which have stretched out to smaller carriers.
A Reuters report, citing the New York Times, said Glenn Tilton, chief executive of UAL, and Continental chief Larry Kellner, have held a meeting to talk about a potential deal. However, the talks were said to be preliminary with no expectation of an imminent deal.
An Agence France Press report, citing The Times, said both United Airlines and Continental refused to comment. United's parent UAL Corp and Continental Airlines could not be reached for comments.

Anadarko outlines plans to sell additional assets - reports

2006-12-12T17:01:00.001-05:00

Anadarko Petroleum, a listed, Texas-based oil and gas exploration and production company, said Tuesday it plans to sell at least USD 5bn in additional assets, according to reports.
Anadarko plans to sell its Venezuelan assets, a quarter of its interest in the K2 project in the deepwater Gulf of Mexico, its production assets in Qatar, drilling projects in the Rockies and assets in north Louisiana and west Texas, the reports said.
Anadarko CFO, Al Walker, said on Tuesday at an investor conference that the company will aim to reduce debt down to USD 12bn by the end of 2007. This year the company spent USD 22.5bn to pay for the acquisitions of Kerr-McGee and Western Gas.
Walker said deals could be announced by the end of the month, and the asset sales could generate from USD 5bn to USD 9bn, after taxes, according to the reports.

WhitePages is an attractive target; may expand into social networking space, CEO says

2006-12-12T16:58:00.002-05:00

WhitePages.com, a Washington-based directory business, may be an attractive target for a company that wants to enter the “people search” space, CEO Max Bardon said.
WhitePages.com is the largest online people search company, powering directories of Verizon’s SuperPages and YellowPages.com.
WhitePages.com has been approached by various Internet, media and technology companies. “If some day something came along we are not closed to it,” Bardon said. The company does not have a definitive time frame for an exit through sale or IPO," he added.
WhitePages.com would be an attractive target because it owns strong brand names such as 411.net and phonenumber.com, in addition to WhitePages.com. Founded in 2000, the company has a strong localized element with about 22 million unique users a month and has been growing 50% to 100% over the past four years. “For both financial and synergistic reasons we could be attractive to larger companies,” Bardon said.
These potential suitors include traditional media companies, providers of yellow pages services and internet companies such as InterActiveCorp or United Online. “As we get larger this set of potential buyers gets smaller,” he said.
WhitePages is profitable, and received an investment two years ago of about USD 40m from outside equity investors. The company expects to generate revenues between USD 50m and USD 55m in 2006.
WhitePages.com acquired its latest brand name, Address.com in 2006, and if it made more buys would probably look to companies to aid plans to expand its search capabilities to include the social and professional networking spaces, Bardon said. “When I think about places we would consider it would be more tangential spaces,” he said.
WhitePages currently partners with ZoomInfo and could potentially partner with a business such as LinkedIn, but it is still too early to know whether acquiring such companies would make sense. “The jury is still out,” Bardon said.

Coca-Cola plans to move quickly when it finds acquisition targets

2006-12-12T16:58:00.001-05:00

Coca-Cola, the Georgia listed beverage company, plans to move quickly when it finds acquisition targets, reported the Wall Street Journal. The report, citing Muhtar Kent, Coca-Cola’s president and chief operating officer, said that the company will move fast when it discovers an acquisition target. According to the report, Kent said that the company is not looking to buy the stake in Coca-Cola Enterprise, the Atlanta bottler, that it does not own. The report was part of a broad story looking at plans for Coca-Cola under Kent. Coca-Cola has a market capitalization of USD 9.7bn.

Citigroup not likely to change strategy; could push for more buys - report

2006-12-12T16:57:00.003-05:00

Citigroup, the New York listed financial firm that’s seen calls to break up the company, isn’t likely to change strategy, reported the New York Times. The report, citing analysts, reported that the appointment of Robert Druskin as head of the company’s corporate and investment bank could mean the company has no plans to change its strategy or oust it CFO Sallie Krawcheck. According to the report, on Thursday at the company’s investor meeting, Citigroup Chief Executive Charles Prince may attempt to convince shareholders that the current strategy is working and that the company needs to increase the amount of acquisitions it engages in. Citigroup has a market capitalization of USD 260bn.

Symantec's stock rises on talk Hewlett-Packard wants to buy it - report

2006-12-12T16:57:00.001-05:00

Symantec, the California listed security software company, saw its stock climb on talk Hewlett-Packard may want to buy it, reported the San Jose Mercury News. The report, citing an analyst, reported talk that California-based Hewlett-Packard would want to buy Symantec emerges from time to time.
Symantec has a market capitalization of USD 19bn.

Bank of Canada renews call for bank mergers in Canada - report

2006-12-12T16:53:00.000-05:00

David Dodge, governor of the Bank of Canada, is renewing calls for bank mergers in Canada, according to the 12 December National Post.
According to Dodge, Canadian financial services institutions, absent a Government of Canada decision to allow bank mergers in the country, will increasingly fall behind their international rivals. In the report, it was noted that analysts expect plenty of M&A activity next year in the banking sector, which could further put Canadian banks at a disadvantage. An unidentified executive at a Canadian bank said in the report that the only reason the political will cannot be mustered up to push the agenda is that the bank mergers issue is unpopular among the public.

Sony could separate electronics and entertainment divisions and look at divestitures, executive says

2006-12-08T08:48:00.002-05:00

Sony could separate its core electronics and entertainment businesses into two separate public companies, Sony CFO Rob Wiesenthal said.
The company will also look at divestitures, according to Wiesenthal. “Our goal is to revitalize the core electronics business,” Wiesenthal said. If the company fails to increase the value of that division, Sony will consider other options, such as making the electronics division a separate public company, Wiesenthal said.
Wiesenthal also said that the company will look at divesting sections that were considered “sacred” before. Divesting those divisions would be "difficult", but Sony would still consider divesting them, Wiesenthal said.
Wiesenthal said that Sony had divested sections of its financial services business and retail business. “There is more to come,” he said.

Yahoo may be compelled to consider M&A if management cannot turn things around - research report

2006-12-08T08:48:00.001-05:00

Yahoo could face an M&A scenario if its management is unable to turn things around in a way that boosts the company's stock price, noted a research report.
UBS analysts Benjamin A. Schachter and Daniel Silver said in a 7 December UBS Investment Research report that Yahoo, which recently announced a restructuring effort, will either need to see its management team fix up what ails the listed California-based Internet company and boost its share value, or change the management team and/or engage in some sort of M&A deal to increase shareholder value. A report carried on this news service earlier today suggested that Microsoft, the listed Washington-based software giant, could be interested in buying Yahoo, which has a market cap of USD 36.22bn.

Sirius and XM not likely to merge; FCC rule would prevent it - report

2006-12-08T08:45:00.000-05:00

Sirius and XM, the two listed satellite companies, are not likely to merge despite speculation that the two could hook up, reported the Wall Street Journal. The unsourced report, part of a broad story looking at declining demand for satellite radios, said that a merger is not likely because of a Federal Communications Commission ruling that prevents a satellite company from buying a competitor. According to the report, the FCC is not likely to change that rule. A previous report in the New York Daily News had said New York based Sirius and Washington DC based XM could merge in the next year-and-a-half, creating a 7bn company.

Playboy could be takeover target for PE firm or publisher - report

2006-12-07T09:03:00.000-05:00

Playboy, the listed Chicago media company, could be a takeover target for a PE firm or publisher, reported the Wall Street Journal. The unsourced report in the Wall Street Journal, reported that Playboy could be a target for a PE firm or publisher given the company has been improving and has a cheap stock price.
Playboy has a market capitalization of USD 383.5m.

Puma's stock rises on talk Nike wants to buy - report

2006-12-07T09:00:00.000-05:00

Puma, the German sneaker maker, saw its stock rise on renewed speculation Nike may want to buy it, reported the Boston Herald. The report, citing traders, reported rumors of a takeout by Nike were spreading in Europe and Oregon where Nike is based.
According to the report, the rumors were prompted by Nike arranging a USD 1bn loan. The report noted a Nike spokesperson said the loan will be used for general corporate purposes.

Yahoo: Microsoft could be interested in buying company, analyst says - report

2006-12-07T08:59:00.000-05:00

Microsoft could be interested in buying Yahoo, the listed California-based Internet firm that recently announced a reorganization, noted the Globe and Mail.
Rob Sanderson, an American Technology Research analyst, was cited in the report saying that Yahoo's decision to revitalize its management team will not eliminate takeover rumors, particularly when a company such as Microsoft, a Washington-based software heavyweight, could bulk up its online advertising operations by acquiring Yahoo. Yahoo's market cap is USD 36.54bn.

Thomson looking for more acquisitions, CEO says

2006-12-06T09:15:00.003-05:00

Thomson, the listed Canadian data provider based in Connecticut, is looking for takeover targets in the electronic data space, reported the Globe and Mail.
Richard Harrington, CEO of the company, was cited in the report as saying that Thomson intends to fund future acquisitions by using proceeds that will come via the divesting of its educational publishing unit.
Thomson's market cap is USD 27.57bn, according to Yahoo Finance.

Yum! Brands not planning a purchase of Wendy's chain - report

2006-12-06T09:15:00.001-05:00

Yum! Brands does not plan to purchase Wendy's, according to a report in the Akron Beacon Journal, which cited David Novak, YUM chief executive. Yum! owns Pizza Hut, KFC, A&W and Long John Silver's, and has been speculated as a potential bidder for the Ohio-based Wendy's chain.
Novak questioned a purchase of Wendy's because the chain lacks locations that are outside of North America, the article reported.
Wendy's has a USD 3.97bn market cap.

Talisman the subject of heightened takeover speculation - report

2006-12-06T09:14:00.001-05:00

Talisman Energy, the listed Canadian oil and gas company, has found itself the subject of heightened takeover rumors, according to the National Post.
The report cited Barry Nelson, who works with Talisman, as saying that his company will not address recently published reports suggesting that Total SA, the listed French energy giant, is interested in launching a takeover attempt for Talisman. In the report, it was noted that Talisman's stock price climbed yesterday on speculation that an outright takeover bid or breakup of the entity was possibly imminent.
Chris Theal, an analyst with Tristone Capital, said in the report that Talisman could possibly be broken up into three portions, which could bump up the company's share value to between CAD 23 and CAD 25. Talisman's market cap is USD 19.06bn, according to Yahoo Finance.

Alcan could receive takeover bid in months ahead - report

2006-12-05T11:04:00.001-05:00

Alcan, the listed Canadian aluminum player, could be on the receiving end of a takeover bid in the months ahead, noted Report on Business magazine.
The report, which focused primarily on Alcan's troubled past with the residents and government of Kitimat, British Columbia, cited unidentified analysts' musings about a likely takeover bid for Alcan sooner rather than later. Rio Tinto in the UK and BHP Billiton in Australia have been mentioned in previous reports as possible suitors.
Alcan's market cap is USD 18.77bn, according to Yahoo Finance.

Boyd Gaming sees stock climb on speculation it could be next takeover target - report

2006-12-05T09:11:00.000-05:00

Boyd Gaming, the listed Nevada casino company, saw its stock climb Monday on speculation it could be the next takeover target, reported the Wall Street Journal. The report, citing analysts, reported shares of Boyd Gaming rose 11% and its options traded briskly on speculation that Boyd could be the next to be taken out.
The speculation was prompted by an offer for Station Casinos. The report was part of the Wall Street Journal's options column.
Boyd has a market capitalization of USD 3.7bn.

CBS would sell Simon & Schuster at the right price, CFO says; McGraw Hill could be interested, source says

2006-12-05T09:10:00.002-05:00

CBS would sell its consumer publishing division if it was offered the right price, CFO Fred Reynolds said in a one-on-one interview with this news service. CBS is not actively looking to sell that division, Reynolds added.
In a Q&A session at the Credit Suisse media and telecom conference, Reynolds was asked if he would sell Simon & Shuster at USD 1.5bn. Reynolds responded that that would be a very good offer. "If somebody values one of our businesses more than we do, we will take a look at their offer," Reynolds said.
A source familiar with the strategy of CBS said that he believed CBS was not shopping its Simon & Shuster division, but had no reason to keep it. The source said Simon & Shuster is estimated to have just under USD 100m in cash flow. An offer of 10x EBITDA for that division is very feasible based on other deals in that industry, the source said.
McGraw-Hill, the New York based publishing company could be interested in acquiring Simon & Shuster, the source said.

ValueClick acquires Shopping.net for USD 13.3m in cash

2006-12-05T09:10:00.001-05:00

ValueClick, the listed California-based online marketing group, today announced that it has acquired UK-based, privately held Shopping.net for USD 13.3m in cash.
Shopping.net owns and operates 27 websites that provide comparison shopping, search and vertical market content to European online consumers. Shopping.net will be integrated into ValueClick Europe to complement ValueClick Europe’s existing online marketing services.
Shopping.net websites attract more than two million unique visitors per month. Shopping.net generates revenue primarily through online advertising priced on a cost-per-click basis. Shopping.net is ValueClick’s second European acquisition of online shopping destination sites, following the 2004 acquisition of comparison shopping site PriceRunner.com.
“Shopping.net is a great fit for ValueClick Europe,” said Carl White, chief executive officer of ValueClick Europe. “This acquisition expands our online shopping destination site presence in the marketplace, and is another significant step in our European expansion. Shopping.net will complement our other businesses, including PriceRunner, Commission Junction and vcmedia.”

Yahoo China could spin off from Alibaba within 12 months - report

2006-12-04T13:52:00.000-05:00

Yahoo China, the Chinese subsidiary of Yahoo.com, could spin off from Alibaba.com, the Zhejiang-based internet company, the China Internet Weekly reported. The article in the weekly journal cited unnamed sources close to Yang Zhiyuan, the Yahoo CEO, as saying the spin-off could take place within 12 months.
Yahoo paid USD 1bn to take 40% stake in Alibaba.com last year and Alibaba.com merged with Yahoo China. The article added that the Alibaba's merger with Yahoo China could be strategically wrong. Xie Yun, the previous Yahoo China resigned 40 days after he took office on 27 November, which had been taken as an indication that the US-based Yahoo senior executives had lost confidence in Ma Yun, the Alibaba-Yahoo China CEO and were not satisfied with the development strategies in Yahoo China and Alibaba.com.

CNET remains an 'attractive' target - research report

2006-12-04T13:51:00.000-05:00

CNET, the web-based media company in California, is "attractive" as a target, Citigroup reported.
Citigroup made the remark in a 29 November research report prepared by Mark Mahaney, Sandeep Aggarwal, and Matthew Reichek. The report ranked CNET stock as "buy" and "speculative."
The report focused on Citigroup's "thesis" on the company stock and provided an update on the bank's long-term thesis on the stock. Among four expectations for CNET is Citigroup's continued view that CNET remains "attractive" as a target, with past M&A deal multiples suggesting that there might be an upside of over 30% off of the current stock valuation.
The report said that Citigroup neither has a "specific acquirer" in mind, nor a timetable for a potential deal.
The report said the traditional media are now confronted with "secular growth" impediments, and thus buying an online content firm like CNET is thus a potentially "logical possibility."
The report said that a 2007 EBITDA multiple of 17 would lead to a take-out at a USD 11.86 take-out price, which is a premium of 40%.
CNET has a USD 1.28bn market cap, the report said.

New York Times chairman mulling taking company private - report

2006-12-01T08:31:00.000-05:00

New York Times, the New York listed newspaper group, is seeing its chairman mull taking the company private, reported the Boston Herald. The report, citing a report in Business Week, reported Chairman Arthur Sulzberger has been getting advice from Steven Rattner, who runs Quadrangle Group, about taking the New York Times private. According to the report, Rattner also held talks with members of the founding family that control the New York Times last spring to discuss alternatives including a LBO. New York Times has a market capitalization of USD 3.5bn. The Business Week article cited unnamed sources, according to the Boston Herald.

PepsiCo could still be interested in Danone – report

2006-11-30T09:08:00.001-05:00

PepsiCo, the listed New York-food behemoth, could still be interested in smaller French competitor Danone, La Tribune reported. The report cited a “well-informed” banker as saying that the former head of PepsiCo, Steve Reinemund, was one of the people opposed to a takeover of Danone during the meetings of the board. PepsiCo decided not to launch an offer because the board was not unanimously in favour of such a move. However, the banker said that the new head of PesiCo, Indra Nooyi, who was the finance director of the group then, was in favour of Danone’s takeover. And the report pointed out that Nooyi led the 2001 acquisition of Quaker Oats and Gatorade. The report also referred to comments made by an analyst at Lehman Brothers who said at the end of last month that Danone could still be under the threat of a takeover.

Home Depot receiving calls on potential LBO deal - market report

2006-11-29T15:16:00.000-05:00

Retailers Home Depot is receiving calls from bankers about potential take private deal, according to CNBC reporter Charles Gasparino, who cited industry sources.
The reporter named KKR as one of PE firms that “have run numbers” on Home Depot, also adding that it could be a hostile situation.
This would be the largest LBO deal ever, with a potential price tag of USD 100bn.
Home Depot has a market cap of USD 77bn.

Euro Disney could see hostile takeover offer from Center-Tainment – report

2006-11-29T10:01:00.000-05:00

Center-Tainment, the listed Swiss leisure investor, could be making a hostile bid for the listed French leisure park Euro Disney, Frankfurter Allgemeine Zeitung reported. The report stated that Center-Tainment issued a statement last week in which it announced a significant acquisition. Center-Tainment also claims that the company was listed at the Frankfurt stock exchange in September this year with the purpose of making a takeover offer for Euro Disney.
Euro Disney stated it has not received any takeover offer yet. A 40% stake in Euro Disney is owned by the Walt Disney Company. The report noted that Center-Tainment offers EUR 0.11 for each Euro Disney share which at present has a value of EUR 0.06 per share. The offer would not be made in cash but Euro Disney’s shareholders would receive Center-Tainment shares in exchange. The report indicated that Center-Tainment’s website revealed the company is valued at EUR 150m. The report said that Center-Tainment plans to reveal further details at a press conference to be held in Paris tomorrow.

Sirius and XM could merge in next 18 months - report

2006-11-29T09:59:00.000-05:00

Sirius and XM, the two listed satellite companies could merge soon, reported the New York Daily News. The report, citing Stifel Nicolaus analyst Kit Spring, reported the two companies could merge over the next year-and-a-half. According to the report, the combined company would have a USD 7bn value and could cut costs by USD 650m annually.
Sirius is based in New York and XM is based in Washington DC.