Mergers and Acquisitions Recap: Barclays Buys ING Direct, Cytec Sells Unit to Advent
Barclays (NYSE:BCS) will purchase ING Direct U.K. from its parent ING Groep (NYSE:ING), which will take a €320 million after-tax loss on the transaction. The United Kingdom bank that is being acquired holds deposits of £10.9 billion and mortgages of £5.6 billion, along with 1.5 million customers and 750 employees. Its mortgage book had a loan-to-value ratio of 50 percent as of Aug 31st. Barclays payed a 3 percent discount, but bought the deposit book at par.
Cytec Industries (NYSE:CYT) divests its coating resins unit to the private equity company Advent for $1.03 billion and $118 million in liabilities. The sales process was initiated in May, subsequent to slumping demand in Europe along with rising costs. The business, which includes varnishes and specialty paints, generated one half of Cytec’s 2011 revenues of $3 billion.
Are these stocks a buy or sell? Let us help you decide. Check out our Wall St. Cheat Sheet Stock Picker Newsletter now >>
ProPhase Labs (NASDAQ:PRPH) sees the buyout bid by Matrixx Initiatives increased by 14 percent to $1.60 per share in cash, which is up from its earlier offer of $1.40 that the former had turned down. Matrixx is the private firm which makes Zicam cold medicine and is a rival to PRPH’s Cold-Eeze product line.