3 Merger and Acquisitions Stock Stories For a Monday Appraisal

Hewlett-Packard Co. (NYSE:HPQ): Current price $21.35

SAP Co-Chief Executive Bill McDermott has told The Times that HP tried to offload the United Kingdom software house Autonomy onto SAP sometime prior to April. The latter had been approached by HP following its being advised that the business was “available,” but SAP was not excited by the notion. McDermott commented, “We were aware that it was on the market at one time but were never seriously interested in Autonomy.” Industry players were made “aware” that Autonomy was up for sale sometime before April, when Chief Executive Meg Whitman announced during a visit to London that the firm was not for sale, and that HP would go on with its $11 billion purchase, in the face of having to write down its value by $8.8 billion.

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HPQ

First Merchants Corporation (NASDAQ:FRME): Current price $15.83

On Monday, First Merchants and CFS Bancorp (NASDAQ:CITZ) reached a definitive agreement through which CFS will merge with and into First Merchants, and its wholly-owned bank subsidiary, Citizens Financial Bank, will merge with and into First Merchants Bank. Through the terms, shareholders of CFS will have the right to receive 0.65 shares of First Merchants common stock for each share of CFS common stock owned. Calculated on the close of First Merchants’ common stock on May 10 of $16.14, the transaction value is roughly $114.7 million, with an implied price per share of CFS common stock of $10.49.The transaction should close in the fourth quarter.

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FRME

Microsoft Corporation (NASDAQ:MSFT): Current price $33.03

Shares of Barnes & Noble (NYSE:BKS) spiked last week on chatter that Microsoft, which owned a 17 percent interest in NOOK Media, the Barnes & Noble subsidiary that develops the NOOK e-reader tablets and related content, was making a $1 billion offer to acquire the entity outright and take it over, so as to incorporate (possibly) the Windows operating system over the current Android OS that runs on the tablets. Although Microsoft apparently did not intend to do anything, there was much talk of the proposed deal, which by one calculation would have come to approximately $27 per share of Barnes & Noble stock, explaining why when the idea hit reached the street, shares spiked to almost $22 a share in the trading day, according to Insider Monkey.

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MSFT

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