Mergers and Acquisitions Recap: Sprint Aims to Stop AT&T in Deals and Rumors of the Week
Sprint (NYSE:S) has filed a lawsuit to block AT&T’s (NYSE:T) acquisition of T-Mobile (PINK:DTEGY), claiming the merger would “entrench the duopoly control of…the two ‘Ma Bell’ descendents,” which would harm retail customers and independent wireless carriers. Only last week, the Department of Justice filed a suit to block the merger.
International Paper (NYSE:IP) will acquire Temple-Inland (NYSE:TIN) for $4.3 billion, buying shares for $32 each and assuming $600 million in debt. Earlier this summer, IP took a $3.1 billion offer straight to shareholders, causing TIN to adopt a poison-pill defense.
The world’s biggest iron ore producer, Vale (NYSE:VALE), is in talks to sell or lease a fleet of giant iron ore carriers to Chinese and other ship owners. Less than three months ago, Vale’s first iron ore carrier was denied access to Chinese ports and was forced to divert to Italy on its maiden voyage. Vale originally planned to own a fleet of 19 dry bulk freighters to cut shipping costs from Brazil to China, the world’s top importer of iron ore.
The FTC has requested more information on the proposed merger between Medco Health (NYSE:MHS) and Express Script (NASDAQ:ESRX), postponing the deal by 30 days. The two firms are still hoping the $29.1 billion merger will be completed in the first half of 2012.
Rio Tinto (NYSE:RIO) and Anglo American (PINK:AAUKY) are planning to sell their stakes in Palabora Mining (PINK:PBOAF), a South African copper miner they say is “no longer of sufficient scale.” Rio owns 58% of Palabora and Anglo owns almost 17%. Their combined holdings are worth roughly $720 million.