Mergers and Acquisitions Review: Kraft Wants to Sell Breakstone, Oracle Wants to Buy AEG
Kraft Foods Group (NASDAQ:KRFT) wants to divest its Breakstone dairy division which could bring about $400 million, according to Bloomberg, which adds that Grupo Lala might be a buyer. Analysts believe that a sale like that could represent the beginning the company concentrating upon its power brands and also that “ongoing pruning, especially if there is a slowdown and their leverage starts to get too high,” might be anticipated.
Oracle Corporation (NASDAQ:ORCL) Chief Executive Larry Ellison is looking at a purchase of the sports and entertainment division AEG from Anschutz, for which the latter wants $10 billion, says Reuters. If this is correct, Ellison already holds a significant credit facility to help out, having pledged 139 million Oracle shares that are valued at $4.3 billion as “collateral to secure personal indebtedness.”
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Telefónica (NYSE:TEF) divests its call-center business Atento to Bain Capital for €1.04 billion, or $1.34 billion, as part of its plan to sell off assets to reduce its huge €57 billion debt. This transaction occurs just a bit more than a week after Telefónica announced its plans to list its German mobile O2 subsidiary.
Ecolab (NYSE:ECL) will purchase Champion Technologies for $2.2 billion in a transaction consisting of 75 percent cash and 25 percent stock. The firm explains that the acquisition should assist in its finding new oil and gas opportunities in North America and should be accretive next year, adding that synergies from the unified entity are projected to bring $150 million to its total-run rate by 2015.