M&A Rewind: BBVA Sells ASSETS, Micron WANTS Elpida

The Spanish firm Banco Bilboa Vizcaya Argentaria (NYSE:BBVA) conforms to the current pattern of major banks divesting assets to raise capital, as it sells its operations in Puerto Rico to Oriental Financial Group (NYSE:OFG). The transaction will bring $500 million to BBVA, and will contribute to the consolidation among Puerto Rica’s financial institutions as well.

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Glencore (GLCNF.PK) is prepared to abandon its proposed giant merger with Xstrata (XSRAY.PK) unless the sovereign wealth fund in Qatar quits its demand for a 16 percent increase in the transaction’s premium, say sources. However, so far there are no signs that the fund will back down, and that Glencore believes the higher premium overvalues Xstrata, but the former thinks that it can come back later with a fresh bid if necessary.

Shares of Micron (NASDAQ:MU) take off in late trading, from word in The Nikkei that it will acquire the bankrupt Elpida (ELPDF.PK) for ¥200 billion ($2.51 billion). The two firms have discussed such a deal for months, which would if completed reduce DRAM capacity and thus raise prices throughout the industry. Specifically, the merger would increase Micron’s economies of scale and boost its relatively weak position in the quickly growing mobile DRAM market, although observers are a bit dubious as to the effect upon Micron’s balance sheet.

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