4 Merger and Acquisitions Stock Stories for Due Diligence

Ferro Corporation (NYSE:FOE): Closing price $6.76

On Monday, Ferro said it had finalized the sale of its pharmaceuticals division Pfanstiehl Laboratories to PLI Holdings, an affiliate of Med Opportunity Partners. The transaction was made up of a $16.9 million cash payment and an earn-out incentive payment of as much as $8 million, payable over two years based on attained earnings targets. Beyond that, the firm retained certain tax benefits of an estimated $5 million. In 2012, Ferro’s pharmaceuticals business generated segment income of $2.4 million.

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FOE

American Greetings Corporation (NYSE:AM): Closing price $18.05

The corporation announced Monday that it had reached a definitive agreement through which a newly organized entity owned by the Weiss Family, including its Chairman, Morry Weiss; Director and Chief Executive Zev Weiss; and Director, President and Chief Operating Officer Jeffrey Weiss and related persons and entities, will purchase the company.  Through the terms, American Greetings Class A and Class B shareholders, excluding the Weiss Family and related entities, will receive $18.20 per share in cash, and, if declared by the board, one regular quarterly dividend of 15 cents per share declared and payable in a manner consistent with the company’s past practices.

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AM

Intel Corporation (NASDAQ:INTC): Closing price $21.42

Three sources have informed VentureBeat that Intel is in talks to acquire Omek Interactive, an Israeli gesture recognition and tracking tech firm. Samsung (SSNLF.PK) and Qualcomm (NASDAQ:QCOM) are also said to be mulling a bid for the company, but one source said that a bidding war is not likely to develop.

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INTC

Gastar Exploration (NYSE: GST): Closing price $2.01

Gastar will acquire proven reserves and undeveloped leasehold interests in Kingfisher and Canadian counties in Oklahoma from Chesapeake Energy Corporation (NYSE:CHK). It will repurchase its common shares from Chesapeake, resolving all litigation for $85 million. The transaction includes drilling rights in roughly 157,000 net acres adjacent to Gastar’s existing Mid-Continent acreage and approximately 2.8 million barrels of energy equivalent of proven reserves. The purchase should close on or before June 7, subject to the usual closing adjustments, and with a property purchase effective date of October 1, 2012.

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GST

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