Mergers & Acquisitions: McGraw-Hill to Split Into Two, Broadcom to Buy NetLogic for $3.7 Billion
Publisher McGraw-Hill (NYSE:MHP) announced plans today to split into two separate companies, one focusing on global markets, the other on education. The transaction is expected to be completed by the end of 2012 through a tax-free spinoff of the education unit to shareholders. McGraw-Hill hopes to effect $1 billion in savings on corporate expenses and administrative and technology costs.
Broadcom (NASDAQ:BRCM) has agreed to buy NetLogic Microsystems (NASDAQ:NETL) for about $3.7 billion in order to extend the wireless chip maker’s range of chip-making technology for more advanced networks. Broadcom will pay $50 a share for each NetLogic share, a premium of 57% over NetLogic’s closing share price on Friday.
Advisory firm ISS has said that Allied World (NYSE:AWH) shareholders should support a proposed merger with Transatlantic Holdings (NYSE:TRH), though ISS recommends Transatlantic shareholders oppose the deal, saying they could get more money from Berkshire Hathaway (NYSE:BRK.A) or Validus (NYSE:VR).
QR Energy (NYSE:QRE) has agreed to buy oil and natural gas properties from Quantum Resources Funds for $557 million in a cash-and-unit transaction. The deal would more than double QR’s production capacity and reserves.
After MacAndrews & Forbes upped its cash offer to $25 per share, M&F Worldwide (NYSE:MFW) has agreed to be bought by the holding company.
U.S. pumps and valves manufacturer Colfax (NYSE:CFX) has agreed to buy U.K. toolmaker Charter International (PINK:CHITF) for roughly $2.4 billion in cash and shares, beating out rival bidder Melrose (PINK:MLSPF)