Mergers and Acquisitions Review: Home Depot BUYS U.S. Home Systems, KIT Digital Might SELL Itself

Here are Tuesday’s top stories:

Xstrata Plc (XSRAF.PK) assures interested parties that its $62 billion merger with Glencore is on track and should close in the fourth quarter, even though the statement comes amid pressure from Xstrata shareholders to improve the deal’s details. At the same time, Xstrata’s first half net profit plunges by 33 percent to $1.94 billion while revenue slides 7 percent to $15.55 billion. Also, the firm postpones $1 billion of capital expenditures.

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Home Depot, Inc. (NYSE:HD) will purchase U.S. Home Systems, Inc. (NASDAQ:USHS) at $12.50 per share, which represents a 38 percent bonus over Monday‚Äôs closing price. Amounting to approximately $93 million, the acquisition should help reinforce Home Depot’s custom quality specialty home improvement product line.

Shares of KIT Digital, Inc. (NASDAQ:KITD) pop on the news that activist investors Seth Hamot and Peter Heiland have joined its board as director Joseph Mullin exits and that their funds, Costa Brava and JEC Capital, now respectively own 7 and 8 percent investments in the IP video software provider. After these changes, KIT announces that its board will “address several expressions of interest” concerning a divestiture of part or all of the company.

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