Mergers and Acquisitions Recap: Tesoro BUYS BP’s CA Refinery, Leap Shares FALL Over Merger Analysis
A merger between US Airways Group, Inc. (NYSE:LCC) and AMR Corporation (AAMRQ.PK) seems more likely following the latter’s Chief Executive Tom Horton, saying to the Financial Times that a deal “may be an attractive option” and also that a decision could be only weeks away. The bankrupt carrier is still exploring its options, including other combinations or staying independent.
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Tesoro Corporation (NYSE:TSO) will acquire BP’s Carson, California refinery and ARCO retail operation for approximately $2.5 billion. The buyer anticipates that the transaction will be accretive to earnings in both of the initial two years of operations.
Illinois-based Guggenheim Life is currently the lead bidder for all of Aviva plc’s (NYSE:AV) United States division, in an acquisition that could value the operations at £800 million, which is about £200 million below the previous estimates. The Daily Telegraph said over the weekend that Aviva recently wrote down the value of its subsidiary by some £876 million and might agree to take a further hit, since a sale will free up approximately £2 billion of capital.
Shares of Leap Wireless International, Inc. (NASDAQ:LEAP) moved down on word that Deutsche dumps on the possibility that the company will be purchased merely for its spectrum and other assets. DB calculates that the firm’s assets are worth $4.6 billion, although its debt and obligations come to almost $6.5 billion. Last week, Leap shares were beaten down because of weak earnings, but afterwards rebounded on the prospect of a buyout.
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