M&A Weekly Recap: Goldman Sachs Purchases Dwight Asset Management, Oracle Swallows Taleo

Monday

Xstrata could have dealings with the European Commission as it investigates Glencore International Plc.’s proposed $35 billion acquisition of shares in the company that it does not own. This is despite a 2006 ruling that treated the firms as one for antitrust purposes, due to Glencore’s 34.4% stake in Xstrata.

Consolidated Communications (NASDAQ:CNSL) purchases SureWest Communications (NASDAQ:SURW) for $23 per share. This marks a 47.5% premium to Friday’s closing price.

Don’t Miss: Verizon and Coinstar/Redbox Joint Venture to Deliver Video Content…

Fidelity National Financial (NYSE:FNF) agrees to acquire all outstanding common stock of dining chain O’Charley’s (NASDAQ:CHUX) for $9.85/share in cash. FNF owns a 9.5% stake in CHUX, which operates more than 340 full-service restaurants under the O’Charley’s, Ninety Nine and Stoney River concepts.

TiVo (NASDAQ:TIVO) is up over 5% premarket on a Barron’s weekend report. The report says Microsoft (NASDAQ:MSFT) or Google (NASDAQ:GOOG) could target the provider of digital-video recorders for acquisition. Software patent victories and advanced hardware also have made shares attractive again, the article says.

PepsiCo (NYSE:PEP) was rumored to be offering $320 million for Brazilian cookie maker, Marilan Alimentos. However, on account of tax issues and price differences, PEP pulled out of the deal, reports a Brazilian paper.

Express Scripts (NASDAQ:ESRX) and Medco (NYSE:MHS) shares are down due to a report that the Federal Trade Commission is gathering evidence to use in a bid to block a deal between the companies to merge; a final decision on whether or not to sue is expected by as late as early March.

Earnings Report: Coca-Cola Enterprises Inc. Fourth Quarter Earnings Sneak Peek.

Tuesday

Nestle (NSRGY.PK) leads Danone (DANOY.PK) in the race to buy Pfizer’s (NYSE:PFE) $10 billion Wyeth infant nutrition unit. The firms emerged as frontrunners following first-round bids, Reuters reports. Mead Johnson (NYSE:MJN) and Heinz (NYSE:HNZ) are also involved in the second round for Wyeth, which has a strong presence in China.

InterActiveCorp (NASDAQ:IACI) plans to sell a $50 million stake in its Vimeo online video site at a $300 million valuation, reports Pando Daily. The company is looking to maintain a 50% “non-controlling stake” in Vimeo following the deal, while claiming over 55 million unique visitors, despite revenues of just $5 million.

Don’t Miss: IACI Investors Not Happy About Vimeo’s Valuation.

Medco Health (NYSE:MHS) and Express Scripts (NASDAQ:ESRX) shares could rebound after the news that the Federal Trade Commission may reject the merger deal between the two companies. Sources tell the New York Post that the deal still has a greater than 50% chance of approval. Therefore a merger of commercial real estate data providers CoStar Group (NASDAQ:CSGP) and LoopNet (NASDAQ:LOOP) may come to a screeching halt.

Republic Airways (NASDAQ:RJET) is close to hiring financial advisers. They would help sell its Frontier Airlines unit, says CEO Bryan Bedford, but the chances another airline will acquire Frontier are “very, very low,” he adds. The two most likely scenarios are selling Frontier entirely or in part to a private equity firm, or spinning it off to RJET shareholders.

Goldman Sachs (NYSE:GS) announced it purchased Dwight Asset Management from Old Mutual Asset Management. The amount for which was undisclosed as it makes a stronger push into the defined contribution investment-only business. The firm expects Dwight to become a part of Goldman Sachs Asset Management sometime in the second quarter.

Investing Insights: Glencore and Xstrata Announce $90B Merger.

Wednesday

Akamai (NASDAQ:AKAM) has acquired Blaze. The acquisition was of a developer of technology for accelerating the speed at which web pages load. Blaze’s solutions complement the site acceleration capabilities provided via Akamai’s content delivery network (CDN). In December, Akamai acquired rival CDN owner Contendo.

Capital One’s (NYSE:COF) controversial bid to buy ING Direct USA (NYSE:ING) was rescheduled to Monday without explanation by the Federal Reserve Board. COF’s deal caught community groups’ attention. Concerns are about banks getting too big, given its ING bid is the biggest bank deal since the financial crisis.

Investing Insights: Groupon Preparing for First Public Earnings Announcement.

Groupon (NASDAQ:GRPN) did it, now LinkedIn (NYSE:LNKD) is spending its first post-IPO year acquiring a large amount of startups. Today, it’s learned that LinkedIn is buying Rapportive, a developer of a browser plug-in that provides contextual information for Gmail text. The company also acquired contact management software firm Connectedand search technology developer IndexTank back in October.

Illumina (NASDAQ:ILMN) declared Roche’s $44.50/share hostile bid to be inadequate. It also calls the timing of the offer “blatantly opportunistic.” Two weeks ago, Illumina adopted a poison pill in response to Roche’s offer.

Don’t Miss: Larry Fink: I’m Bullish on Stocks, Baby.

Thursday

Barclays (NYSE:BCS) and RBS (NYSE:RBS) control around 70% of Spain’s third-largest hospital operator. United Kingdom private equity Doughty Hanson has agreed to buy USP, for 355 million euros ($477 million) from the creditors.

Investing Insights: Banks Reach $25 Billion Settlement Over Mortgage Fraud, Foreclosures.

Illumina (NASDAQ:ILMN) traded higher on chatter that an activist investor movement may be stirring and ongoing speculation on the firm’s deal with Roche. Trader Karen Finerman translated the semantics and says that the phrase “ready to commence discussions” equates to we’ll pay more.

Cornerstone OnDemand, Inc. (NASDAQ:CSOD) Constant Contact, Inc. (NASDAQ:CTCT) and NetSuite Inc. (NYSE:N) have all sold off in the wake of the Oracle Corporation (NASDAQ:ORCL) deal with Taleo Corp. (NASDAQ:TLEO). Others are faring better: Saba Software, Inc. (NASDAQ:SABA) salesforce.com, inc. (NYSE:CRM), and Kenexa Corporation (NASDAQ:KNXA). Bernstein thinks Oracle’s modest premium, perhaps due to a limited number of potential buyers, “puts a cap” on future deal valuations. However, as Nomura notes, the run-up already seen in Taleo due to marketing and advertising hopes helps explain the small premium.

Don’t Miss: Nokia Dominates Mobile Web Usage.

Friday

Procter & Gamble (NYSE:PG) will try to end the sale of its Pringles business. Proctor & Gamble must now determine how best to exit the deal and whether to expect a pushback from Diamond Foods (NASDAQ:DMND). If the sale goes forward, P&G shareholders will end up owning a majority of Diamond’s stock, which fell 37% yesterday.

Don’t Miss: Proctor and Gamble: We’re Probably Holding onto Pringles.

Horizon Bancorp (NASDAQ:HBNC) snaps up Heartland Community Bank (HRTB) in a deal slated to close in the second quarter. Under the terms of the deal, Horizon will issue 0.54 shares of its common stock for each share of Heartland stock outstanding. The transaction will be valued at $9.72 per share for HRTB.

Express Scripts (NASDAQ:ESRX) prepares to tell regulators that its delivered all the requested information on the purchase of Medco Health (NYSE:MHS) in a move that will trigger a 30-day Federal Trade Commission review of the deal.

Yahoo (NASDAQ:YHOO) trades higher following news of Alibaba’s latest efforts to facilitate a deal. According to Reuters, Yahoo may hold onto a 15% stake in Alibaba following the deal’s closing. Alibaba may offer a stake in Alibaba.com and/or other company-owned assets.

International Paper (NYSE:IP) and Temple-Inland (NYSE:TIN) reach agreement with the Department of Justice. The agreement will allow IP’s acquisition of TIN to proceed. The combined company will undertake the post close divesture of 970,000 tons of containerboard mill capacity and divest three facilities.

Don’t Miss: Alibaba Looks to Buy Back Yahoo’s Shares.

To contact the reporter on this story: Tanya Harding at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com