Hewlett-Packard and 9 Stocks Making Deal Buzz This Week

Here’s your Cheat Sheet to this week’s top mergers and acquisition news:

Markets are at 5-year highs! Discover the best stocks to own. Click here for our fresh Feature Stock Pick now!

Hewlett-Packard Co. (NYSE:HPQ): Current price $21.26

SAP (NYSE: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.

Are these stocks a buy or sell? Let us help you decide. Check out our Stock Picker Newsletter now.

HPQ

First Merchants Corporation (NASDAQ:FRME): Current price $16.52

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.

Are these stocks a buy or sell? Let us help you decide. Check out our Stock Picker Newsletter now.

FRME

Microsoft Corporation (NASDAQ:MSFT): Current price $34.87

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 reached the street, shares spiked to almost $22 a share in the trading day, according to Insider Monkey.

Are these stocks a buy or sell? Let us help you decide. Check out our Stock Picker Newsletter now.

MSFT

Don’t Miss: The Fed: Don’t Worry, We’ll Keep An Eye On Things.

Wells Fargo & Co. (NYSE:WFC): Current price $39.88

In the prospectus regarding its capital increase published on Tuesday, Commerzbank said that is in intensive negotiations to divest the majority of its $7.4 billion in British property loans. The bank wants to sell the portfolio to the private equity investor Lone Star and Wells Fargo, according to a knowledgeable source. Commerzbank is selling off the United Kingdom property loans division of its mortgage unit Hypothekenbank Frankfurt International, formerly known as Eurohypo, so as to reduce the size of its balance sheet.

Are these stocks a buy or sell? Let us help you decide. Check out our Stock Picker Newsletter now.

WFC

Kansas City Southern (NYSE:KSU): Current price $117.20

Analyst Benoit Poirier at Desjardins Securities believes that both Canadian National Railway Co. (NYSE:CNI) and Canadian Pacific Railway (NYSE:CP) should think about acquiring Kansas City Southern, the biggest railroad in Mexico, as he thinks that a potential purchase could be on the Canadian railroads’ agendas. He outlined the rationale for such a deal, calculating a final offer price of $131 per share for Kansas City Southern, which marks a 17 percent bonus.

Are these stocks a buy or sell? Let us help you decide. Check out our Stock Picker Newsletter now.

KSU

Facebook (NASDAQ:FB): Current price $26.25

Presently, it appears that Facebook’s attempt to acquire the social navigation firm Waze has hit a significant snag that has blocked the deal. The Israeli newspaper Calcalist, which first broke news of Facebook’s plans to buy Waze, has followed its original report with news that the parties are having difficulties reaching terms in a few crucial areas. The biggest bottleneck seems to be Facebook’s desire to shut Waze’s research and development center, and transfer a number of key Waze employees to the company’s American headquarters.

Are these stocks a buy or sell? Let us help you decide. Check out our Stock Picker Newsletter now.

FB

Don’t Miss: Is Facebook Home Soon to be Homeless?

T-Mobile US (NASDAQ:TMUS) Current price $19.93

Deutsche Telekom, which finalized a deal in May to expand its United States business, revealed that it has the option to divest the asset to a buyer prior to the expiry of an 18-month share lock-up period. The telecom would not be restricted from selling if a third party extended an offer for T-Mobile US, Chief Financial Officer Timotheus Hoettges told shareholders at the annual meeting in Cologne on Thursday. He responded to an investor who asked whether Vodafone Group could be a hypothetical buyer. In its deal to merge the fourth largest American wireless carrier with MetroPCS Communications, Deutsche Telekom promised not to sell shares of the listed carrier for 18 months. The German company holds a 74 percent interest in the company, which has a market value of $14.2 billion.

Are these stocks a buy or sell? Let us help you decide. Check out our Stock Picker Newsletter now.

TMUS

Quest Diagnostics (NYSE:DGX): Current price $60.69

On Thursday, Quest announced that it has purchased the toxicology and clinical laboratory unit of the medical center operator Concentra, which is a subsidiary of Humana. What’s more, Quest Diagnostics has reached a long-term agreement with Concentra to be its primary supplier of workplace drug toxicology and clinical laboratory testing.

Are these stocks a buy or sell? Let us help you decide. Check out our Stock Picker Newsletter now.

DGX

Commerce Bancshares (NASDAQ:CBSH): Current price $43.10

Summit Bancshares and Commerce Bancshares on Thursday jointly announced a merger agreement through which the former will merge into a wholly-owned subsidiary of Commerce Bancshares in a transaction valued at around $40.6 million, entirely comprised of Commerce Bancshares stock. This acquisition of Summit Bancshares, the parent company of Summit Bank, will add roughly $261 million in assets, $213 million in loans, and $231 million in total deposits. The merger agreement has been approved by the boards of both companies and should close in the third quarter.

Are these stocks a buy or sell? Let us help you decide. Check out our Stock Picker Newsletter now.

CBSH

Newcastle Investment Corp. (NYSE:NCT): Current price $5.95

Newcastle reports that the spin-off of New Residential Investment Corp. was successfully concluded on Wednesday. Beginning on Thursday, New Residential will commence trading on the New York Stock Exchange under the symbol NRZ. Holders of Newcastle common stock as of the record date, May 6, have been electronically issued one share of New Residential common stock for each share of Newcastle common stock held as of the record date.

Are these stocks a buy or sell? Let us help you decide. Check out our Stock Picker Newsletter now.

NCT

Don’t Miss: Are These Numbers a Warning For the Labor Market?

More from The Cheat Sheet