Mergers & Acquisitions: Alibaba’s Shareholders Offered $1.6 Billion Buyout, United Technologies to Acquire Goodrich
United Technologies (NYSE:UTX) has offered $16.4 billion in cash to acquire Goodrich (NYSE:GR), UTX’s biggest deal in a decade. At $127.50 a share, the offer is a 16% premium to Goodrich’s closing price on Wednesday, and 47% higher than last week when the deal started to leak, inevitably boosting Goodrich’s stock. UTX will halt buyback and slash its M&A stockpile in order to maintain its credit rating following the deal.
Silver Lake, DST Global, Temasek Holdings, and Yungfeng Capital have offered $1.6 billion for privately-held employee and shareholder stock of China’s Alibaba Group, a price that values the firm at $32 billion. That would put Yahoo’s (NASDAQ:YHOO) 39% stake in the company at $12.5 billion. The deal signals that Alibaba isn’t looking at an IPO any time soon.
Microsemi (NASDAQ:MSCC) will acquire Zarlink Semiconductor (PINK:ZLKKF) for CAD $525 million, or $3.98/ share. Microsemi’s offer tops its previous, hostile bid of CAD $3.35/share by 19%. Microsemi expects the acquisition to be accretive to its 2012 EPS by $0.24-$0.26.
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