Mergers and Acquisitions Weekly Recap: Yahoo Remains in Focus, Apple Buys a Company
Apple (NASDAQ:AAPL) has acquired C3 Technology, which develops detailed 3D maps. The deal signals that Apple is looking to end its use of Google (NASDAQ:GOOG) Maps on devices using its iOS software, such as the iPod and iPad, in favor of its own map application.
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Starwood Hotels & Resorts Worldwide, Inc. (NYSE:HOT) received interest from Singapore’s Temasek Holdingsand Thayer Lodging Group as possible buyers. The two companies are looking at a $65 bid for the company while its current stock price jumped to $51 on the news.
Diamond Foods, Inc. (NASDAQ:DMND) got hit with three downgrades to neutral after its crop payments made to walnut growers appeared questionable. An investigation has been launched, prompting a possible delay in the company’s purchase of Procter & Gamble’s (NYSE:PG) Pringles line. The acquisition was set to close in December but may not happen until the first half of 2012.
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PepsiCo Inc. (NYSE:PEP) won a bid for for Brazilian biscuit maker Mabel, an estimated 800 million to 900 million reals ($460 million-$518 million) transaction. With the deal, Pepsico will continue its growing dominance in the biscuit industry. The transaction adds 1.5 million biscuits to its production capabilities, joining September’s acquisition of an Argentinian biscuit company.
News Corporation’s (NASDAQ:NWS) Fox Sports may bid on the bankrupt L.A. Dodgers, according to a Bloomberg article. One source said of the company’s motive: “If it comes down to paying $3 billion for telecast rights or $1 billion for the team, the math may mean you buy the team.”
Express Scripts, Inc. (NASDAQ:ESRX) and Medco Health Solutions, Inc. (NYSE:MHS) are aggressively seeking congressional support for their proposed merger. The companies are looking to dispel industry consolidation concerns; they are putting a positive spin on the transaction by saying a combined entity would allow increased negotiating power for larger drug discounts, lower healthcare costs and improved patient care.
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BB&T Corporation (NYSE:BBT) has signed an agreement to purchase BankAtlantic, a subsidiary of Bank Atlantic BanCorp’s (NYSE:BBX). The acquisition will expand BBT’s Southeast Florida presence and increase its market share to No. 6 in Miami.
Under the agreement’s terms, BB&T will acquire approximately $2.1 billion in loans and $3.3 billion in deposits for an estimated $301 premium above BankAtlantic’s net asset value at closing.
Yahoo! Inc (NASDAQ:YHOO) actions may suggest it’s not ready to sell the entire company with the announcement to acquire data-analysis tool provider interCLICK, Inc. (NASDAQ:ICLK). The $270 million cash transaction ($9 per share) represents a 22 percent premium above interCLICK’s Monday closing stock price.
Charles Schwab (NYSE:SCHW) is reportedly considering bidding on MF Global’s (NYSE:MF) retail futures segment. MF, which filed for Chapter 11 bankruptcy protection this morning, would also like to offload its institutional clearing business, but that may prove more challenging given that most institutional asset managers have already moved their business elsewhere.
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B&G Foods (NYSE:BGS) has announced a deal to acquire six Culver specialty brands from Unilever (NYSE:UL) for $325 million. B&G expects the acquisition to be immediately accretive to earnings and free cash flow.
TNK-BP (NYSE:BP) will buy a 45% holding in 21 exploratory blocks in the Amazon oil fields for an initial $1 billion from start-up HRT, though the latter first has to buy the stake from partner company Petra Energy. Over the next 10 years, TNK-BP could pay up to $5 billion.
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Yahoo (NASDAQ:YHOO) is “leaning toward” merely selling its Asian assets while remaining independent, distributing the proceeds to shareholders through a dividend or stock buyback.
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