Thursday, November 30, 2006
Rumors Kirk Kerkorian dumped the rest of his GM stock
Rediff.com (REDF), Sify (SIFY) Takeover Rumors Are Back
Apple iPod Phone a Reality?
Citigroup Sees Value in CNET (CNET) As a Takeover Target
SL Green (SLG) Considers Raising Bid for Reckson (RA), But May Not Top Icahn/Macklowe Offer
Wall Street investors are looking at current filings from SL Green (NYSE: SLG) as a possibility that the company may raise its bid to acquire Reckson (NYSE: RA), but might not match the Icahn/Macklowe bid of $49 per share.
Recently, Carl Icahn and Harry Macklowe offered to acquire Reckson for $49 per share. In addition, Mack-Cali Realty (NYSE: CLI) has reportedly joined the Icahn/Macklowe group in their bid for Reckson.(SL Green's current offer is: Upon consummation of the merger, each outstanding share of common stock of Reckson will be converted into the right to receive $31.68 in cash, an amount in cash equal to an adjusted prorated dividend and 0.10387 of a share of SL Green common stock without interest and less any required tax withholding, for total merger consideration of $43.31 per share of Reckson common stock, based on the closing price per share of SL Green's common stock of $112.00 on August 2, 2006)
WR Grace (GRA) Sees Upside Action
Stifel Nicolaus downgrades Novellus Systems (NVLS) to Sell, Says Sale is Unlikely
Analyst Patrick J. Ho said, "while we have no additional insight, we do not see a potential takeout of the company occurring in the near term (although we do not want to discount the possibility of a LBO scenario, but also consider this somewhat unlikely near term). Ho also said, "even if a deal were to occur, we do not believe at current prices that there is any dramatic premium left in terms of valuation, particularly when compared to other recent semi cap deals."
Jefferies Sees Electro-Optical Sciences (MELA) As Takeover Longer Term
Wednesday, November 29, 2006
Greenberg/NYT Rumors Appear Over Hyped
Semi Stocks Piling Cash May Be Takeover Targets
Merrill Lynch analyst Doesn't See Infineon (IFX) Takeover
Citigroup Said a ECI Telecom (ECIL) Takeover is Unlikely, But Says the Stock is Cheap
In a research report this morning on ECI Telecom Ltd (Nasdaq: ECIL), Citigroup said, regarding the Haaretz article suggesting possible purchase of ECI by ADC (Nasdaq: ADCT), takeover is very unlikely. The analyst said CFO Giora Bitan noted that Israeli financial news sources operate by less stringent standards when it comes to publishing.The firm still said the stock is trading at a very attractive valuation, with $250 million in cash and no debt. The firm said the stock is worth $11 per share using a "very conservative valuation calculation." The firm has a Buy rating on the stock.
Bear Steans Comments on Takeover Prices of HLT and HOT
New York Times (NYT) Higher on Report Hank Greenberg Buying Stock
Titanium Stocks Higher on Takeover Chatter
Dollar General (DG) Gives Back Yesterdays' Gains As Takeover Speculation Abates
Banc of America Comments on Louisiana-Pacific (LPX) Takeover Talk
Tuesday, November 28, 2006
CNBC's Faber Reports on a Competing Bid for Harrah's Entertainment (HET)
CNBC's David Faber reports on a competing bid for Harrah's Entertainment Inc. (NYSE: HET). Faber said a Penn National Gaming Inc. (Nasdaq: PENN) group, including DE Shaw, Lehman Brothers, and Wachovia are looking at a bid for Harrah's. Faber said it is not clear if the Penn group could present a competitive bid.
Currently, Harrah's is evaluating a bid from Apollo Management Group and the Texas Pacific Group, which was last reported to be around $83-$84 per share.
Harrah's is up 1.2% to $77.59 in afternoon action.
Reports Private Equity Firms Pursuing Dollar General
On CNBC, MergerMarket analyst Josh Kosman said private equity firms Bain Capital and Cerberus Capital are aggressively pursuing Dollar General Corp. (NYSE: DG). Kosman said it is not clear if Dollar General is talking with the interested parties.
Rumors of a Dollar General buyout surfaced last week.
Dollar General is a Fortune 500 discount retailer with more than 8,000 neighborhood stores. Dollar General stores offer convenience and value to customers by offering consumable basic items that are frequently used and replenished, such as food, snacks, health and beauty aids and cleaning supplies, as well as a selection of basic apparel, housewares and seasonal items.
EMI Group Receives Preliminary Takeover Approach
In a statement today, British music company EMI Group Plc said it received a preliminary approach for the Company which may or may not lead to an offer being made. One newspaper said the deal could be worth $4.8 billion.
Shares of EMI jumped 10% in overseas trading after making the statement on the approach.
The Financial Times reported that private equity firm Kohlberg Kravis Roberts (KKR) and Goldman Sachs were among the bidders. KKR denied they were involved.
The latest reports suggested that private equity firm Permira made the preliminary approach to EMI.Earlier in the year, EMI Group Plc and rival Warner Music Group (NYSE: WMG) backed off offers for each other after a European court ruling overturned regulatory clearance of the Sony Music and BMG merger.
Analyst Doesn't Sees UMC Buyout
Palm A More Attractive Takeover Target Following Drop?
Louisiana-Pacific (LPX) Higher on Takeover Rumors
TiVo (TIVO) Continues to Struggle, But Name Recognition Makes it an Eventual Takeover Target - Analyst
Coca-Cola (KO) Denies Coca-Cola Enterprises (CCE) Buyout Rumors
Coca-Cola CEO Neville Isdell said, "We have no intention to buy CEE."Earlier in the month, financial publication Barron's reported on the possibility of a merger between the two.
Monday, November 27, 2006
Cablevision (CVC) option implied volatility is Low as investors wait for better Dolan bid
Merrill Lynch's Cohen Comments on Media Consolidation
Cohen said Comcast (Nasdaq: CMCSA) and Time Warner Cable (NYSE: TWX) will continue to dominate in the cable market.
Cohen said Verizon (NYSE: VZ) or AT&T (NYSE: T) could buy satellite-TV providers EchoStar (Nasdaq: DISH) or DirectTV (NYSE: DTV), or the two could merge.
Cohen said DreamWorks Animation (NYSE: DWA) is a possible takeover target.
Cohen sees Viacom (NYSE: VIA) and CBS (NYSE: CBS), which split in January, as possible acquirers. She doesn't think either will be taken private as has been rumored.
Could AT&T Throw in the Towel on BellSouth?
Prudential Comments NMX and ICE Valuation, Takeover Premiums
This morning, Prudential initiated coverage on the recent hot IPO NYMEX Holdings (NYSE: NMX) with an Underweight rating and $112 target. The firm also raised its price target on IntercontinentalExchange (NYSE: ICE) from $100 to $120.
The firm thinks NYMEX has a takeover premium built into the stock, but says the stock is too pricey to attract suitors. On ICE, the firm said they don't feel a takeover premium is reflected in the stock.
The firm wants investors to swap out of NMX into ICE.
Analyst Says Affiliated Computer Services (ACS) News Could Bring Up Going Private Talk Again
Stifel Nicolaus comments on Affiliated Computer Services (NYSE: ACS) following news that an option investigation determined that prior CEO Jeff Rich, CFO Warren Edwards, and CEO Mark King all engaged in backdating. King and Edwards announced their resignations related to the news.
Analyst George A. Price said, "Last year, private equity pursued ACS to go private, though ultimately the company chose not to pursue that path. With the senior management changes, we believe the question of going private may arise again. Two items to note: 1) Chairman has super voting rights, controlling about 40% of the voting control of the shares (we estimate) " he would have to be open to the idea to go private, and 2) business has changed - the operating margins declined 150-200 bps, capital intensity has increased (more ITO in the mix). ACS might not be as attractive to private equity firms as it was last year (lower price than the $62 price discussed last year)."The firm maintained their Hold rating on the stock, citing declining margins, low organic revenue growth, and high debt load.
Shire Pharmaceutical (SHPGY) implied volatility below average at 27
Barron's Discusses LBO Targets
A weekend Barron's article discusses the LBO boom and mentions some potential targets. Link $
According to the article, Morgan Stanley strategist Henry McVey says a $50 billion LBO is possible, suggesting all but the top 60 companies could be targets. Some large companies that could be targets include Gap (NYSE: GPS), Micron Technology (NYSE: MU), Bed Bath and Beyond (Nasdaq: BBBY), Nike (NYSE: NKE), Liz Claiborne (NYSE: LIZ), EMC (NYSE: EMC) and Costco Wholesale (Nasdaq: COST).
The report also says energy takeovers have mainly involved strategic buyers, but that could change. The report mentions Apache (NYSE: APA), Valero Energy (NYSE: VLO), Hess (NYSE: HES) and Transocean (NYSE: RIG) as possible targets.
In the consumer sector Avon Products (NYSE: AVP) has been the subject of takeover rumors. Merrill Lynch places Kimberly-Clark (NYSE: KMB) and Estйe Lauder (NYSE: EL) on the top of their list of targets.
Homebuilders have been mentioned as LBO targets including KB Home (NYSE: KBH), DR Horton (NYSE: DHI), Lennar (NYSE: LEN), Toll Brothers (NYSE: TOL), MDC (NYSE: MDC) and Hovnanian Enterprises (NYSE: HOV).
In technology, CreditSights says Linear Technology (Nasdaq: LLTC), Maxim Integrated (Nasdaq: MXIM), Analog Devices (NYSE: ADI), (Nasdaq: ALTR) and Xilinx (Nasdaq: XLNX) makes their list of buyout targets.
Stifel Nicolaus Sees 75% Probability of SIRI/XMSR Merger ATTEMPT in Next 18 Months
Spring said, "Based on History & Risk/Reward We believe the probability of a SIRI/XMSR merger ATTEMPT within the next 18 months (or potentially sooner) is 75%. Our conviction is based mainly on Mel Karmazin's track record and a compelling risk / reward trade off. We have dug through the 10ks and rediscovered that Karmazin-led companies conducted over 20 major M&A transactions, totaling nearly $80B."
Commenting on regulatory approval of such a deal, Spring said, "We believe the probability of an FCC/DOJ merger APPROVAL is 55-60%, with market definition as the key variable."
The firm reiterated their Buy rating on both SIRI and XMSR and raised their price target on XMSR from $16 to $18, with $2 of merger option value.
SIRI's Karmazin Would Be Interested in XMSR Merger
Soleil Downgrades U.S. Steel (X) After Takeover Rumor Run-Up
Analyst Charles A. Bradford, from Bradford Research, Inc., said, "While a possible breakup value could approach $100 a share, it is our experience that companies do not trade at the breakup value and possible acquirers won't pay full value for a company."
Friday, November 24, 2006
Freeport-McMoRan (FCX) Takeover Seems Unlikely - CNBC
Technip (TKP) Higher on Takeover Reports
Shares of French oilfield service company Technip (NYSE: TKP) are higher in this morning on reports from French newspaper La Tribune that Italian oil giant Eni SpA may make a bid for the company. According to the reports, Eni may merge Technip with its Saipem SpA unit.
Another French paper Les Echos reported that Saipem could offer more than 6 billion euro for Technip. A merger between Technip and Saipem would create the world's third largest oilfield-services company, behind Halliburton Co. (NYSE: HAL) and Schlumberger Ltd. (NYSE: SLB).Technip said it has not received a takeover approach. Shares of Technip are up 7.3% in early action.
BJ's Wholesale (BJ) implied volatility rose on 11/22/06 after CEO resigns
Allstate (ALL) Mentioned As Takeover Target Again - Chicago Tribune
Besides Allstate, Morgan Stanley's list included Bank of America (NYSE: BAC), Citigroup (NYSE: C) and Countrywide Financial (NYSE: CFC).
Last summer, Prudential Equity Group LLC named Allstate to its list of possible targets.When asked about the possibility of a takeover at the company's May annual meeting, Allstate's CEO Edward Liddy said the company wishes to stay independent. Liddy plans to step down as CEO at the end of 2006. He will be replaced Thomas J. Wilson, who is currently president and chief operating officer. Liddy will remain chairman until his retirement from the company in the spring of 2008.
Reports Boyd Gaming (BYD) Could Be Next Las Vegas Takeover - BusinessWeek
Sangamo (SGMO) May Be Next Biotech Takeover - BusinessWeek
Reports Armor Holdings (AH) May Be Lockheed Martin (LMT) Takeover Target - BusinessWeek
Advanced Semiconductor Engineering (ASX) Receives $5.94/Share Offer from Consortium
Advanced Semiconductor Engineering, Inc. (NYSE: ASX) received an indication of interest from a consortium of investors led by The Carlyle Group, regarding a potential offer by the Consortium for all of the outstanding common shares of ASE at a price of NT$39 per share (approximately US$5.94 per ADS).ASE has been informed that Jason Chang, the Chairman and Chief Executive Officer of ASE, has agreed, subject to certain conditions, to participate as a member of the Consortium and to roll the shares of ASE owned by him and ASE Enterprises Limited, his affiliated holding company, into an equity interest in the holding company formed by the Consortium. Chairman Chang has also entered into an exclusivity agreement with the Consortium. Chairman Chang and ASE Enterprises Limited collectively own approximately 18.4% of the Shares.
Wednesday, November 22, 2006
Citigroup (C) Denies Rumors CFO is Leaving
Fund Discusses a Possible Northwest Airlines (NWACQ) / Continental Airline (CAL) Merger
In its 13D filing on Northwest Airlines today, 5% Owl Creek Asset Management, which said NWACQ could be worth $19.75-$33.50 per share, said, "US Airways announced that it expects the combination to generate $1,650,000,000 of annual synergies, which is 6.2% of the combined Delta/US Airways passenger sales. Assuming comparable proportional synergies to a Northwest merger with Continental (Continental Airlines is the most logical partner, but this analysis would be equally applicable to another carrier), then the synergies generated by a combination of Continental Airlines with Northwest would be approximately $1,250,000,000annually. Valuing the company at a post-merger multiple of 5.25x EBITDAR including one half of the synergies accruing to Northwest (the other half to the merger partner) results in an implied stock price of $33.50 per share."
More at 13DTracker
Kerkorian's Tracinda Confirms GM Stock Sale Rumor
Dollar General (DG) Higher on Takeover Talk
Freeport McMoRan (FCX) option implied volatility Elevated at heavy Upside call Volume
Soleil Securities Comments on GDS Industry Consolidation
Soleil Securities analyst Michael Millman, of Millman Research Associates, comments on Sabre Holdings (NYSE: TSG) and industry consolidation.
The analyst said they see the likelihood of GDS (global distribution system) consolidation increasing and expects Travelport to be a consolidator because of its scale and reach.The firm said the two remaining GDS' will have to merge. The firm said the the pairings will be Galileo (owed by Travelport)/Worldspan (under a great deal of pressure), which will force Amadeus/Sabre.
Deutsche Bank Says $6B in Sears Holdings (SHLD) Value Could Be Unlocked
Sears Holdings Corporation (Nasdaq: SHLD) is higher this morning following a positive research report from Deutsche Bank examining the additional cash that could be generated by securitizing real estate and intellectual property assets.
Analyst William A Dreher said, "We believe there is potentially up to $6.0B in total value that could be unlocked. By leveraging chairman Eddie Lampert’s expertise in investing these proceeds, we see an additional $0.91-$7.88 to our core FY07 EPS estimate (retail only). By adding the incremental per share value to our current PT of $206, we arrive at an implied share price range of $220-$381. Reiterate BUY rating."
Shares of Sears Holdings are 3% higher to $177.50 in early action
BJ's Wholesale Club Inc. (BJ) is higher on LBO speculation after CEO resigns
US Steel (X) Option Implied Volatility Elevated on M&A Speculation
Rumors Swirl Acquirer Freeport-McMoRan (FCX) Is Itself a Takeover Target
Is Kerkorian Selling GM?
WSJ Discusses Next Takeover Targets
Tuesday, November 21, 2006
First Data (FDC) An LBO Candidate?
Continental Airlines (CAL) Higher Following Merger Openness
Shares of Continental Airlines Inc. (NYSE: CAL) are higher following a report from Reuters, quoting the CEO in a recorded message, saying the company would consider a merger to stay competitive.
InterDigital (IDCC) Higher on Takeover Speculation
GOOG for REDF Rumor Makes the Rounds Again
TD Banknorth Buyout Could Prelude Sovereign Bancorp Takeover
Reports IBM in Talks to Buy Verint Systems (VRNT)
According to reports yesterday from Isreal's Globes, sources have informed them that IBM (NYSE: IBM) is in talks to acquire Verint Systems Inc. (Nasdaq: VRNT). According to the report, the two have been in talks for some time and a deal is expected to be worth around $1 billion, which is near its current market cap.
Verint, which provides software-based data analysis systems for the business intelligence and security markets, was spun-off from Comverse Technology Inc. (Nasdaq: CMVT) in 2002. Comverse still holds 57% of Verint's stock.
The article said the main link between Verint and IBM is in the surveillance camera sector, which IBM recently entered.
Shares of Verint are fractionally higher today after rising 3.3% on Monday.
E*TRADE (ET) Higher on Takeover Speculation Following Charles Schwab's Large Asset Sale
Speculation now centers around what Charles Schwab will do with the funds. According to published reports in the Financial Times, Fox-Pitt Kelton analyst David Trone suggested E*TRADE could be a good fit for Schwab. A buyback could be another alternative.
Shares of E*TRADE are up 1.9% today after rising 4.2% Monday.
Others stocks in the online brokerage sector that could see increased takeover speculation include optionsXpress Holdings Inc. (Nasdaq: OXPS), TD AMERITRADE Holding Corporation (Nasdaq: AMTD) and TradeStation Group Inc. (Nasdaq: TRAD).
Citigroup Analysts Comments on Novellus Systems Takeover Rumors
"While our analysis of financial and strategic fits indicates TEL (#2 equipment supplier) as a plausible consolidator in a competitive takeover, we view a TEL/NVLS deal as being unlikely given cross-border M&A has historically proven difficult + TEL's success at integrating acquisitions in the past is mixed.
With respect to private equity interest, our work (in conjunction w/ input from Citi's risk arb team) indicates a NVLS deal under typical debt/equity assumptions and a ~25% equity premium would drive only ~11% IRR, or well below the typical 20-30% hurdle rate for PE deals - even in this environment."
Apple (APPL) Higher on iPhone Rumors
Cramer Said Reliance Steel (RS) Is The Next Takeover in the Sector
Monday, November 20, 2006
CreditSights Looks At Semi LBO Targets
Steel Sector Sees Flurry of Activity on M&A
Other steel names: Nucor (NYSE: NUE), AK Steel (NYSE: AKS), Allegheny Tech (NYSE: ATI), Carpenter Technology (NYSE: CRS), Steel Dynamics (Nasdaq: STLD), Chaparral Steel (Nasdaq: CHAP), Companhia Siderurgica Nacional (NYSE: SID), IPSCO Inc. (NYSE: IPS), Mittal Steel (NYSE: MT), Reliance Steel & Aluminum (NYSE: RS).
Coca-Cola Enterprises (CCE) Higher Following Barron's Takeover Report
The report also said deal or no deal, Coca-Cola Enterprises looks reasonably priced - trading at 16x projected 2006 earnings versus a 17 multiple for rival Pepsi Bottling Group (NYSE: PBG).
Shares of Coca-Cola Enterprises are 4% to $21.04 in afternoon action.
Nabors Industries (NBR) Volatile on Takeover Talk
Ameristar Casinos (ASCA) Higher on Takeover Speculation Following CEO's Sudden Death
Ameristar Casinos Inc. (Nasdaq: ASCA) is higher today on takeover speculation following the sudden death of Chairman and Chief Executive Craig H. Neilsen.
Neilsen owns a majority 55% position in the company. His shares will be transferred to his private foundation, The Craig H. Neilsen Foundation, which is primarily focused on spinal cord injury research and treatment.
John M. Boushy, President of the Company, was elected to succeed Craig Neilsen as Chief Executive Officer, and Ray Neilsen and Mr. Kanofsky were elected to the Board as Co-Chairmen.
Keybanc which upgraded the stock to Buy this morning said, "Ameristar immediately becomes a possible takeover candidate."
Shares of Ameristar Casinos are 11.5% higher to $28.60 in mid-day action Monday.
Intuitive Surgical (ISRG) Higher On Takeover Chatter
Stifel Nicolaus Says Others Bidders for Phelps Dodge (PD) "May be Discouraged by the 33% Premium"
ACOR a Takeover Target?
Recently rumors surfaced Elan Corp. (NYSE: ELN) could be a buyer for the company, although the probability of such a deal appears low.
London Stock Exchange Rejects Nasdaq's Offer
Yahoo!'s (YHOO) Newspaper Deal Kills YHOO for MNST Speculation
- Freeport-McMoRan Copper & Gold Inc. (NYSE: FCX) and Phelps Dodge Corporation (NYSE: PD) have signed a definitive merger agreement under which FCX will acquire Phelps Dodge for approximately $25.9 billion in cash and stock, creating the world's largest publicly traded copper company.
- Equity Office Properties Trust (NYSE: EOP) announced that it has signed a definitive merger agreement to be acquired by Blackstone Real Estate Partners, an affiliate of The Blackstone Group, in a transaction valued at approximately $36 billion.
- Evraz Group S.A. and Oregon Steel Mills (NYSE: OS) announced that they have signed a definitive agreement under which Evraz will acquire Oregon Steel for $63.25 per share, or an aggregate price of approximately $2.3 billion. NOTE: Watch other steel names X, AKS
- Actelion Ltd announced that it has entered into a definitive agreement to acquire CoTherix, Inc. (Nasdaq: CTRX) for $13.50 per share. NOTE: More biotech M&A
- The Nasdaq Stock Market Inc. (Nasdaq: NDAQ) made an offer to buy the rest of the London Stock Exchange PLC. The Ordinary Offer is in cash at 1,243 pence per LSE Ordinary Share, valuing the entire issued ordinary share capital of LSE at approximately GBP 2.7 billion and represents an enterprise value of approximately GBP 2.9 billion.
Reports Bank of America (BAC) to Acquire Charles Schwab's U.S. Trust Unit for $3.3B
Friday, November 17, 2006
Analyst Sees Takeover Value in Marvell
Interview Puts BB&T (BBT) in Play
Punk Ziegel analyst Richard X. Bove said the interview makes the acquisition of BB&T "far more likely."
Citadel Denies Rumors of Trouble
A spokesman for Citadel said, "We are aware of the rumors. They are completely unfounded."
Earlier today, rumors that a large US hedge fund was in trouble sweep through the financial markets.
Labels: Hedge Fund
FTD Group (FTD) Takeover Bait?
Hedge Fund Loss Rumors Make the Rounds
Labels: Hedge Fund
InterContinental (ICE) Higher After Word NYMEX "Won't rule out merger with ICE"
Foot Locker (FL) Said Sale Rumors are Untrue
The company said several months ago they hired Evercore Partners The Parthenon Group, and said "Based on our assessment of their work, we continue to be confident about our business and our ability to generate long-term shareholder value by executing our strategic plan."
Reports Russian Severstal Looking to Get Bigger to Buy U.S. Steel (X)
According to reports from Bloomberg, citing Russian daily Kommersant, Russia's biggest steelmaker OAO Severstal is in talks to merge with local iron miners to create a $20 billion company that could bid for U.S. Steel Corp. (NYSE: X).
According to the reports, Severstal is considering a merger with ZAO Gazmetall and ZAO Metalloinvest, controlled by Russian billionaire Alisher Usmanov, which would create a company with enough muscle to buy U.S. Steel.
Oppenheimer Said Outright Tekelec (TKLC) Sale More Likely
Prudential Mistaken on National City (NCC) Takeover
Deutsche Bank Doesn't See Imminent Deal for BOBJ or COGN
Deutsche Bank downgraded Business Objects (Nasdaq: BOBJ) and Cognos (Nasdaq: COGN) today. Both stock have been the subject of takeover speculation in the business intelligence (BI) space. Deutsche Bank said the stocks trade with a takeover premium, but they don't see an imminent deal
Wednesday, November 15, 2006
Hedge Funds After Yahoo!?
Suntrust Doesn't See Imminent Deal for Cognos
Suntrust comments on recent M&A speculation in the business intelligence (BI) space, which has centered around Cognos Inc. (Nasdaq: COGN), Hyperion Solutions Corp. (Nasdaq: HYSL), and Business Objects (Nasdaq: BOBJ) as takeover targets.
The firm said the most interesting talk going around is that IBM is ready to buy Cognos. The firm doesn't see an imminent deal for Cognos.
UPDATE; Delta (DALRQ) CEO Plans to Emerge From Bankruptcy As a Stand-Alone Carrier
He said, "We received a letter from U.S. Airways this morning and will of course review it. Delta's plan has always been to emerge from bankruptcy in the first half of 2007 as a strong, stand-alone carrier. Our plan is working and we are proud of the progress Delta people are making to achieve this objective.
He also said, "The Bankruptcy Court has granted Delta the exclusive right to create the plan of reorganization until Feb. 15, 2007. We will continue to move aggressively towards that goal."
Delta Air Lines (DALRQ) Issues First Response to Merger Offer From US Airways (LCC)
Merrill Lynch Doesn't See FL LBO
ServiceMaster (SVM) Attracting Buyout Interest - WSJ
According to the paper, the company's cash flows are especially attractive to buyout firms, but the company's religious-based culture could make some buyout firms uncomfortable.
ServiceMaster currently serves residential and commercial customers through a network of over 5,500 company-owned locations and franchised licenses. The Company's brands include TruGreen ChemLawn, TruGreen LandCare, Terminix, American Home Shield, InStar Services Group, ServiceMaster Clean, Merry Maids, Furniture Medic, and AmeriSpec.
US Airways (LCC) Proposes $8B Merger with Delta Air Lines
US Airways believes that the combination will generate at least $1.65 billion in annual synergies, including $935 million in network synergies, predominantly from optimization of the airlines' complementary networks, including rationalization of network overlap, which will result in a 10 percent reduction of the combined airlines' capacity, reducing unprofitable flying and improving the mix of traffic. In addition, $710 million in net cost synergies will be achieved by combining facilities in overlap airports and eliminating redundant systems and overhead. Significantly, the opportunity to generate more than half of these synergies could be lost if a merger is delayed until after Delta emerges from bankruptcy. The merger is expected to be accretive to US Airways' earnings in the first full year after completion of the merger.
Tuesday, November 14, 2006
Motorola Agrees to Buy Netopia (NTPA), But Competing Bid Could Emerge
OmniVision (OVTI) Up on Takeover Talk
Pier 1 Imports (PIR) Comments on Unusual Trading Activity to NYSE
Pier 1 Imports, Inc. (NYSE: PIR) was notified today by the New York Stock Exchange (NYSE) of unusual trading activity in the Company's stock. The NYSE has asked the Company to respond by press release to the unusual activity. The Company's policy is not to comment on market rumors or speculation including unusual market activity.
*NOTE - Earlier, According to reports from Reuters, Danish retail magnate and 9.8% holder Jakup a Dul Jacobsen is preparing to make a bid for Pier 1 Imports Inc. (NYSE: PIR). Previously, Pier 1 provided confidential financial data to Jacobsen and several other parties to consider a possible transaction.
Rumors Move Monster Worldwide (MNST) Higher
Reports Jakup Jacobsen Preparing to Bid for Pier 1 Imports (PIR)
According to reports from Reuters, Danish retail magnate and 9.8% holder Jakup a Dul Jacobsen is preparing make a bid for Pier 1 Imports Inc. (NYSE: PIR).
Previously, Pier 1 provided confidential financial data to Jacobsen and several other parties to consider a possible transaction.
In early October, Pier 1 said to date it has received one preliminary indication of interest, but the entity submitting that indication of interest subsequently advised Pier 1 it would not continue further discussions with Pier 1 regarding a possible transaction. Pier 1 said it couldn't make a prediction if a deal will be reached with the remaining entities.
Briggs & Stratton (BGG) Higher on LBO Chatter
First Analysis Securities Comments on Nice Systems (NICE)/Witness Systems (WITS) Merger Speculation
The firm said on paper, a merger between Nice and Witness would be highly accretive, to the tune of $0.15-$0.35 per share, even under the assumption that Nice acquires Witness for $23-$25 per share.
The firm also said a merger would stop the price battles between the two companies and create a powerhouse for call center quality monitoring. The firm said the differing cultures would be the biggest hurdle. The firm said uncertainty is too high for them to recommend either stock.
CNBC's Faber Said CCU Bidders Have Come in at About The Same Price
Renewed Sovereign Bancorp (SOV) Takeover Speculation Drives Option Activity
Large 24.9% holder Spain's Banco Santander Central Hispano SA (NYSE: STD) has been considered a likely suitor for the remaining shares of the company, but some investors don't think a deal is imminent.
Sovereign Bancorp is an $89 billion financial institution with nearly 800 community banking offices, over 2,000 ATMs and approximately 12,000 team members with principal markets in the Northeast United States.
Timberland (TBL) Exploring a Possible Sale - WSJ
According to reports from the Wall Street Journal, Timberland (NYSE: TBL) is exploring a possible sale. The company has hired Goldman Sachs to assist in the process. According to the paper, the company is active with private-equity firms but a deal is still some time away.
Timberland is a global leader in the design, engineering and marketing of premium-quality footwear, apparel and accessories. Timberland markets products under the Timberland(R), Timberland PRO(R) Series, SmartWool(R), Timberland Boot Company(TM), Mion(TM) and GoLite(R) brands.
Monday, November 13, 2006
Cramer Comments on Buyout Targets
RBC Said Mellon Bank Is Looking to Make Acquisitions
DealScape Comments on Lampert Speculation
The blog said a deal with BUD or SWY are the most absurd. The blog said GPS or HD are far better options.
Commenting on their own list of possible alternative targets for Lampert, the blog said Foot Locker (NYSE: FL) and Pier 1 (NYSE: PIR) would be the ones to watch.
Takeover Chatter On Source Interlink (SORC) Following Founder Resignation
Genesis Microchip (GNSS) Takeover Talk Resurfaces
Reports Sprint Nextel (S) Drawing Private Equity Interest
Reports from TheDeal.com ($), Sprint Nextel Corp. (NYSE: S) is talking with private equity firms about a possible LBO. But, according to the report, the size of the deal could prohibit it from actually happening.
The report said another carrier Alltel (NYSE: AT) is also drawing private equity attention, although it trades at a significantly higher multiple than Sprint.
Last week, rumors swirled Comcast (Nasdaq: CMCSA) could buy Sprint. The rumors followed Comcast's recent moves showing its wireless ambitions.
Rumors Bank of America (BAC) Could Buy KeyCorp (KEY)
According to reports Friday from Reuters, citing Punk, Ziegel analyst Richard Bove, Bank of America Corp. (NYSE: BAC) may consider making an acquisition in the Midwest, and KeyCorp (NYSE: KEY) is considered a possible target.
According to the report, the analyst said BofA can acquire another $54 billion in deposits before reaching the 10% US bank deposit ceiling.
UAL Higher on Going Private Report
Palm (PALM) To Position Itself for a Sale?
ISIS Pharmaceuticals (ISIS) CEO Says Not for Sale
Latest on Tribne Auction
Friday, November 10, 2006
Unlike Citigroup, UBS Doesn't See Comcast Buying Sprint
Rodman & Renshaw Bullish on Bioenvision (BIVN), Says Stock Does Not Reflect Clofarabine or Buyout
Rodman & Renshaw reiterated its positive stance on Bioenvision (Nasdaq: BIVN) in a research note titled: FISCAL 1Q07 UPDATE - BIG PHARMA/BIOTECH ON A BUYING SPREE - WHO'S NEXT?Analyst Reni J. Benjamin said, "We are reiterating our Market Outperform / Speculative Risk rating and our 12-month target price of $12. With clofarabine on the market for pediatric ALL, a potential European filing in AML by year end, significant news flow highlighting strong clinical efficacy at upcoming conferences, and the initiation of a broad clinical program targeting large unmet needs, we believe the company’s current market valuation does not reflect the potential of clofarabine or the potential of the company as an acquisition target."
Note: Yesterday, Genentech (NYSE: DNA) announced a deal to buy Tanox Inc. (Nasdaq: TNOX) for $20 per share, a 46% premium to today's closing price. Another recent notable deal was Merck's (NYSE: MRK) deal to buy Sirna Therapeutics, Inc. (NASDAQ: RNAI), at a 100% premium.
Bids For Six Flags Parks Coming In Low
More XMSR/SIRI Merger Rumors, AAPL's Name Thrown In Again
Reports Strategic Buyers May Be Eyeing 3Com (COMS)/ Huawei Joint Venture
According to reports from LightReading.com, strategic buyers are looking at the 3Com (Nasdaq: COMS) and Huawei Technologies joint venture, H-3C.
According to the report, potential bidders may now include equipment vendors like Juniper Networks, Inc (Nasdaq: JNPR) and Nortel Networks (NYSE: NT). In the past, it was reported that private equity firms Texas Pacific Group, Bain Capital and Silver Lake Partners were interested in the assets.
The report said interest from the equipment vendors is a new development that could lead to a bidding war. The equipment companies interest in the assets stem from their desire to combat market leader Cisco (Nasdaq: CSCO). Bids for the joint venture could range from $1-$2 billion. Link
CNET Blog Mentions Check Point Software (CHKP) As Possible Buyout Target
JB Hunt Transport (JBHT) Sees Upside Interest on Chatter
Amtech Sees Takeover in Business Intelligence: BOBJ, COGN, HYSL
Calyon Says SUG Could Be Break-Up or Sell Over Time
Citigroup Says Comcast Could Be Acquisitive, Could Acquire Sprint
Fitch Says CVG, CA or DELL Are Best LBO Targets in Tech
Thursday, November 09, 2006
Biotech Could See More M&A Speculation Following DNA/TNOX Deal
Station Casinos (STN) Up Again on Takeover Speculation
Rumor Sears Holdings (SHLD) for Safeway (SWY)
Wednesday, November 08, 2006
Lexmark (LXK) Higher on Lenovo Takeover Rumor
Printer maker Lexmark International Inc. (NYSE: LXK) is moving higher mid-day on rumors China PC-Maker Lenovo may target the company in a buyout as it seeks to build a major printer business. Reports originaly surfaced at CRN.com, which cited comments from analysts. Link
Lexmark currently manufactures Lenovo-branded, according to the report.
Shares of Lexmark are 3.8% on heavier than normal volume in mid-day action Wednesday.
UPDATE: 2:20PM ET: Lexmark comes off highs. Hearing sell-side firm saying they don't think Lenovo will buy the company.
Tuesday, November 07, 2006
Stifel Nicolaus Says a XMSR/SIRI Merger is "A Scenario Which We See As Increasingly Likely"
Stifel Nicolaus comments on XM Satellite Radio Holdings, Inc. (Nasdaq: XMSR), maintaining their Buy rating and $16 price target, citing significant upside potential in merger scenario.
Analyst Kit Spring said, "Despite the fact we have reset our terminal 2011 EBITDA down by about 12%, we are maintaining our target by rolling the target year forward to 2007. Our $16 is based on a 4-year DCF which assumes 17MM subscribers, a 9x multiple of EBITDA, $435 EV per sub, discounted at a 10.5% WACC. An easier way to derive our target is: $930MM of free cash flow in 2011, or $2.58 per share, times a 10x multiple (looks conservative to us) equals a $26 stock price, which would equal $16 discounted back to year-end 2007 at a 13% equity discount rate. We see significant upside potential to our target if SIRI (Nasdaq: SIRI) makes a merger bid for XMSR, a scenario which we see as increasingly likely."