Mergers and Acquisitions Recap: AB InBev Bids Big, Micron Raises Eyebrows
Perhaps as a part of brewing majors’ current strategies of igniting growth via acquisitions in emerging markets, AB InBev (NYSE:BUD) tops the list of bidders for the maker of Presidente beer, Cervecería Nacional Dominicana. The Wall Street Journal says that the company might be valued at $2.5 billion, a price in-line with Molson Coors’ $3.5 billion purchase of Eastern Europe’s StarBev.
Micron’s (NASDAQ:MU) convertible note offering for Elpida is thought by Oppenheimer to boast that it has “money in the bank”: “If the $870 million offering represents all that Micron has to fork over and respective governments retire Elpida and Rexchip debts or Micron puts in a bid together with other cash sources, we could warm up to it. Otherwise, it is more money into the DRAM drain.”
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Safeway (NYSE:SWY) has been named as a ‘beneficiary of industry consolidation’ by SA author Takeover Analyst, and rumors that the grocery chain is ripe for takeover are flying, cause shares to do the same.
Cytec Industries’ (NYSE:CYT) announcement that it is buying composite materials company Umeco for $434 million, sends its shares up. In addition, Cytec forecasts that the acquisition will add earnings per share accretion of about $0.20 per share in the current year and $0.65 a share in 2013.
Intuit (NASDAQ:INTU) purchases AisleBuyer, which should enable the linkup of the former’s GoPayment credit-card processing platform, which competes with Square and PayPal, and AisleBuyer’s solution, which is comprised of a mobile shopping and self-checkout device that relies on smartphone apps.
The Illumina (NASDAQ:ILMN) vs. Roche (RHHBY.PK) takeover saga continues Thursday, as ILUM shares dip below Roche’s most recent offer of $51. Illumina investors seem to be more worried that the acquisition might be abandoned, as the company has twice turned Roche down. Roche said Thursday that its offer is “more than adequate to serve as a basis” to start talks and “is full, fair and extremely attractive by every conceivable financial metric”.
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