Mergers and Acquisitions Recap: Deals and Rumors of the Week
Another week is in the books and deals continue to flow through the pipeline. In case you missed anything, we’ve got your Cheat Sheet to all the big deals and juicy mergers and acquisitions rumors of the week:
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Providence Equity Partners has bought software company Blackboard (NASDAQ:BBBB) for $45 a share, $1.64 billion plus $130 million in debt, after months of speculation that Blackboard was looking to be acquired.
Citigroup (NYSE:C) is rumored to be in talks with Leucadia National (NYSE:LUK) and Centerbridge Capital over a sale of its OneMain consumer-financial services unit, formerly known as CitiFinancial. The deal could bring in as much as $1 billion for Citigroup.
Google (NASDAQ:GOOG) was outbid in an auctioning of now-defunct telecommunications equipment maker Nortel‘s 6,000 patents. Google bid $900 million and has remained the top bidder since April, but ultimately lost out to a consortium of companies including Apple (NASDAQ:AAPL), Microsoft (NASDAQ:MSFT), Research in Motion (NASDAQ:RIMM), Sony (NYSE:SNE), Ericsson (NASDAQ:ERIC), and EMC Corp. (NYSE:EMC), bidding a combined $4.5 billion.
Scripps Networks Interactive Inc. (NYSE:SNI) has received a $1 billion buyback authorization. Scripps will buy 6.4 million shares for $300 million from the Edward W. Scripps Trust that holds 93% of the Cincinnati-based company’s voting power. The other $700 million worth of shares will be purchased privately or on the open market.
French utility giant GDF Suez SA (EPA:GSZ) plans to divest itself of about $14 billion in assets by 2013. The company plans to steer clear of any large mergers in the near future. “For now, we focus on organic growth,” said Chief Executive Gérard Mestrallet in an interview. “We might consider small and medium acquisitions in the future, but they will be specifically targeted.”
Deutsche Boerse (PINK:DBOEY) and NYSE Euronext (NYSE:NYX) have asked the European Commission to approve their $10 billion merger. Normally approval takes 25 working days, but may take longer in this case, according to EU Commissioner Joaquin Almunia, who says the Commission will have to address competition concerns.
BJ’s Wholesale (NYSE:BJ) has accepted an acquisition offer from private equity firms Leonard Green & Partners and CVC Capital for $51.25 per share, or about $2.8 billion, a 6.6% premium on yesterday’s close price of $48.08. Leonard Green has been an active buyer in the retail sector over the last year, acquiring companies like Jo-Ann Stores, TPG Capital, and J. Crew.
U.K. firm Melrose (PINK:MLSPF) has made a £1.3 billion bid for tool and equipment maker Charter (PINK:CHITY). The £6.80 per share bid is a 30% premium over Charter’s last closing price.
French retail giant Carrefour (EPA:CA) has received an offer to merge its Brazilian operations with Companhia Brasileira (NYSE:CBD), creating the largest retail company in Brazil, with 2011 annual sales of 30 billion euros.
Dish Network (NASDAQ:DISH) is set to buy TerreStar Networks (PINK:TSTRQ) for $1.38 billion after no competing bids were received by Monday’s deadline. The acquisition will go to court July 7 for approval.
British drinks group Diageo (NYSE:DEO) gained approval to raise its stake in its joint venture Sichuan Chengdu Quanxing to 53%. Qanxing has a 39.7% stake in Sichuan Schuijingfang, China’s fourth largest white spirits group. According to Chinese law, if Diageo has control of Quanxing, it must launch a mandatory tender offer for the whole of Shuijingfang. Diageo will be offering 21.45 yuan per share in a 6.3 billion yuan deal.
Southern Union (NYSE:SUG) will enter acquisition talks with Williams Companies (NYSE:WMB) despite rival bidder Energy Transfer Equity (NYSE:ETE) trying to block any discussions. Southern Union Co. Earnings: Revenue Falls After Four-Straight Increases>>
Lehman Brothers (PINK:LEHMQ) will sell its majority ownership in the former International Toy Center building, located at 200 Fifth Avenue in Manhattan, to a real-estate fund managed by J.P. Morgan (NYSE:JPM) in a $700 million deal.
S1 Corporation (NASDAQ:SONE) has announced that it will acquire Fundtech (NASDAQ:FNDT) in a stock deal worth roughly $700 million. FNDT shareholders will receive 2.72 shares of SONE stock for every share of FNDT, or $20.51 a share, a 3% premium on Friday’s closing price and an 18% premium on the trade price before the potential deal was announced.
Stanley Black & Decker (NYSE:SWK) is offering Niscayah (PINK:NSYHF) $1.2 billion, including debt, to buy the Swedish security and surveillance company. The offer tops an earlier bid from Securitas (PINK:SCTBF), Nicayah’s former parent company.
Consolidated Graphics (NYSE:CGX) has announced their intention to acquire RT Associates and hopes to complete the transaction within the next 90 days.
Metropolitan Health Networks (AMEX:MDF) has announced it will buy Continucare (NYSE:CNU) for $416 million in cash and stock. The two companies combined will have an annual revenue of roughly $660 million. The deal pays a 35% premium on Continucare’s closing price on Friday.