Mergers and Acquisitions Recap: Deals and Rumors of the Week
Carl Icahn has bid $76.50 a share for Clorox (NYSE:CLX) in a deal valuing the company at $10.2 billion, a 21% premium to the company’s December 20 closing price — the last close before Carl Icahn first began building his stake in the company. Icahn already owns 9.4% of the company’s shares and would like to purchase the rest.
BHP Billiton (NYSE:BHP) has announced that it will buy Petrohawk Energy (NYSE:HK) in a $12.1 billion all-cash offer. BHP will pay $38.75 a share for Petrohawk, a 65% premium on Thursday’s close price, in a tender offer beginning July 25. BHP is interested in Petrohawk because of its shale natural gas assets in the Eagle Ford, Haynesville and Permian Basin areas in Texas and Louisiana. Shale assets are becoming hot commodities as demand for natural gas and its byproducts continues to rise. Marathon Oil (NYSE:MRO) and Dutch Shell (NYSE:RDS.A) are among many companies buying shale assets in multi-billion dollar deals.
Deutsche Börse (ETR:DB1) shareholders have approved a $9 billion merger with the NYSE Euronext (NYSE:NYX). The two exchanges plan to create a new international stock market operator. NYSE Euronext shareholders approved the deal last week, so now the merger must await regulatory approval. Because Deutsche Börse and NYSE Euronext are two of Europe’s biggest derivatives platforms, their merger will be under heavy scrutiny by European antitrust officials.
Williams Companies (NYSE:WMB) announced today that it was increasing its offer for Southern Union (NYSE:SUG) in an effort to beat out Energy Transfer Equity LP (NYSE:ETE). The all-cash offer values Southern Union at $9.4 billion, or $44 a share. Energy Transfer Equity originally offered Southern Union $33 a share back in mid-June, which was followed a week later by $39 a share by Williams Companies in a $4.9 billion bid, which ETE topped in early July with a $5.1 billion bid. The latest figure values Southern Union’s stock at a 56% premium to its last closing price before ETE’s opening bid.
eBay‘s (NASDAQ:EBAY) $240 million purchase of Zong Inc., a mobile-payment start-up, is putting pressure on other companies to make their own acquisitions in that developing market, including Google (NASDAQ:GOOG), American Express (NYSE:AXP), and Visa (NYSE:V), all of which have begun meeting with similar start-ups for exploratory discussions. Mobile-payments are expected to account for $670 billion dollars spent by 2015, up from $240 billion in 2011.
Both eBay (NASDAQ:EBAY) and Newell Rubbermaid (NYSE:NWL) have invested in logistics provider Shipwire, which acts as a middle-man for merchants, storing and shipping products and selling order-management software, a service much in demand for retailers expanding their online sales.
International Paper (NYSE:IP) took its $3.3 billion bid for Temple-Inland (NYSE:TIN) directly to the company’s shareholders on Monday. The hostile bid values shares at $30.60 each, only slightly above Monday’s closing price of $30.55, though up 46% over its closing price on June 6, the last full day of trade before International Paper first unveiled its offer. Temple-Inland is against the takeover, claiming that International Paper’s valuation of the company is too low.
Citrix Systems (NASDAQ:CTXS) has bought cloud start-up Cloud.com for an undisclosed sum. Citrix hopes to be a major force in the cloud sector (SKYY), building on-premise Infrastructure-as-a-Service clouds. Cloud.com comes with established customers including Bechtel, GoDaddy, and Zynga. Don’t Miss: Cloud Computing: Your Cheat Sheet to the Cloud Business Landscape.
Stillwater Mining (NYSE:SWC) has agreed to buy Peregrine Metals (PINK:PTTDF) for $487.1 million in cash and stock. Stillwater will gain access to the Altar open mine in Argentina, which is said to contain 7.4 billion pounds of copper and 1.5 million ounces of gold.
Deputy Prime Minister Nick Clegg has urged Rupert Murdoch to drop his $12 billion bid for British Sky Broadcasting (PINK:BSYBY) as the U.K. government seeks new regulatory advice about the acquisition. Murdoch’s News Corp. (NASDAQ:NWSA) has been under heavy scrutiny since the News of the World scandal last week.
Peabody Energy (NYSE:BTU) and ArcelorMittal (NYSE:MT) are offering a joint bid of $5 billion for Australia’s Macarthur Coal. Over a year ago, Peabody dropped its initial bid for Macarthur, but presents a renewed offer only a day after the Australian government announced plans to tax carbon emissions.
Lonza (PINK:LZAGF) has agreed to buy Arch Chemicals (NYSE:ARJ) for $1.4 billion in a deal that will create the world’s largest microbial-control business.