Wednesday, February 28, 2007
Reports Mitsui & Co will buy Steel Technologies (STTX)
Citigroup Said Sprint Nextel (S) Remains a Potential Candidate for M&A
Monday, February 26, 2007
Dow Jones Reports Magna Int'l (MGA) has Contacted Major Labor Unions as Part of Due Diligence Process For Possible Acquisition of Chrysler (DCX)
The report cites Canadian Auto Workers President, Buzz Hargrove, saying Magna has entered into discussions with the union regarding the study of Chrysler.
Deutsche Bank said the Private equity buyout of TXU is positive for IPP stocks: NRG, CEG, MIR, EXC, RRI,
Reports DaimlerChrysler AG Could Take GM Stake As Part of Chrysler Deal
Dow Chemical (DOW) Higher on Reports of Private Equity Bid
The paper said the company could receive a $54 billion bid from a consortium of private equity buyers that could include KKR, Blackstone and Carlyle Group. The bid could come in at $60 per share the paper reported.
Thursday, February 22, 2007
STMicroelectronics NV (STM) Higher on Takeover Rumor
Loeb's Calls For Acorda Therapeutics (ACOR) To Sell
Analyst Says Aristocrat May Look to Acquire Bally Technologies (BYI)
Select Equity Group Opposes Management-Led Buyout of Laureate Education (LAUR)
Jupitermedia (JUPM) Confirms Takeover Talks with Getty Images (GYI)
Cramer Discusses Possible Anti-Competitive Mergers
On Mad Money, Jim Cramer discusses possible anti-competitive mergers that could pass regulatory mustard now, but may not in the future with a White House administration change. Cramer said we may see a rush of deals ahead of the change.
Large LESCO (LSCO) Holder Hawkshaw Capital Disappointed with Deere (DE) Takeover Offer
Wednesday, February 21, 2007
Analyst Notes Rumors Magna International (MGA) Could Be Interested in Chrysler group
Magna International is an auto-parts maker based in Ontario.
ValueAct Capital offers to acquire Catalina Marketing (POS) for $32 per share
Reports ECI Telecom (ECIL) Could Be For Sale
Karsch Capital Wants CSK Auto (CAO) To Initiate a Sale Process Immediately
Citigroup Dicusses 11 Possible LBO Targets
Analog Devices (NYSE: ADI): the firm said, "ADI has LBO/divestiture and LBO/re-IPO value creation potential because it has partitioned business segments with mismatched profitability."
Maxim Integrated Products (Nasdaq: MXIM): the firm said, "We view Maxim Integrated as a possible transaction candidate given its scale, the unusual stability and quality of its free cash flow."
Bearingpoint Inc. (NYSE: BE): the firm said, "A transaction is unlikely until after BE catches up on its S.E.C. filings, which is anticipated to be a 3Q07 event." Also said, "We assume a take-out price of $12, consistent with our target price."
DST Systems (NYSE: DST): the firm said, "we believe the company's high level of recurring revenue and valuable investment portfolio makes it an appropriate candidate for this list. Assuming at per share takeout price of $91, which represents an approximate 25% premium to current levels, our LBO analysis reveals a potential 25% IRR."
First Data Corp. (NYSE: FDC): the firm said, "We believe that Buy-Rated FDC represents a more interesting LBO possibility following its recent spin-off of Western Union (WU) than its screen rank of 52 might otherwise indicate"
Fair Isaac Corp. (NYSE: FIC): the firm said, "Our decision to consider FIC as a top LBO candidate is based more on our qualitative view of the business than the quantitative valuation factors."
Credence Systems Corp. (Nasdaq: CMOS): the firm said, "... while we rate shares of CMOS Hold (2S) with a $5 price target given our view of back-end fundamentals and near-term risk from a big "air-pocket" in orders from major customer AMD, we believe the potential for further restructuring provides sufficient leverage in the model longer-term for a private equity interest. Assuming a 20% takeout premium (or a buyout price of roughly $6/share)."
KLA Tencor (Nasdaq: KLAC): the firm said, "... believe the potential for further restructuring (already planned) provides sufficient leverage in the model longer-term for private equity interest. Assuming a 20% takeout premium (or a buyout price of roughly $60/share), our proprietary model suggests KLAC would generate an IRR of 35%."
Cypress Semiconductor (NYSE: CY): the firm said, "Although Cypress Semiconductor (2S) did not rank highly in our initial quantitative screening, we believe that it has the potential for an LBO or changes in capital structure for three main reasons (a) Management has expressed strong willingness to consider an LBO (b) IRR analysis on the core Cypress business (excluding SunPower) yielded a return of 24% which is above the industry specific hurdle rate of 20% and (c) We believe that there is room for operational improvements that can drive increases in gross margin, independent of an LBO transaction."
Check Point Software Technologies Ltd. (Nasdaq: CHKP): the firm said, "We think the company would make an attractive LBO/private equity candidate due to: Strong balance sheet with over $1B in net cash representing almost 20% of market cap; Relatively low valuation, CHKP trades at a P/E of ~16x CY07 EPS vs an average P/E of ~21x for our software coverage universe; Stable cash flow generation; CHKP has generated ~350M in operating cash flow each of the last two years and has a stable base of customers with high renewal rates."
Plantronics (NYSE: PLT): the firm said: "We think that Plantronics is a good candidate for a leveraged buy-out ... Our analysis suggests that a LBO would produce a 32% IRR for the equity sponsors and management even with a take-out premium of 25% versus the current stock price."
The firm also said despite scoring in the top 20 of their LBO scorecard, they have chosen not toinclude the following stocks as likely LBO candidates: National Semiconductor Corp. (NYSE: NSM), RF Micro Devices Inc. (Nasdaq: RFMD), Skyworks Solutions Inc. (Nasdaq: SWKS), QLogic Corp. (Nasdaq: QLGC), Western Digital Corp. (NYSE: WDC), Komag Inc. (Nasdaq: KOMG), Motorola Inc. (NYSE: MOT), Palm, Inc. (Nasdaq: PALM), Commscope Inc. (NYSE: CTV), Electronics for Imaging, Inc. (Nasdaq: EFII), Novellus Systems Inc. (Nasdaq: NVLS), Intersections Inc. (Nasdaq: INTX), Global Payments Inc. (NYSE: GPN), ECI Telecom Ltd. (Nasdaq: ECIL), Bisys Group Inc. (NYSE: BSG), Gateway Inc. (NYSE: GTW), Mattson Technology Inc. (Nasdaq: MTSN), LAM Research Corp. (Nasdaq: LRCX), McAfee Inc. (NYSE: MFE), Netflix, Inc. (Nasdaq: NFLX).
The firm also said, "While we do not expect any of our 15 covered companies in the EMS, Connector,Distributor, and Passive segments to go private via an LBO or private equity, we do foresee Sanmina (Nasdaq: SANM) likely undergoing a significant recapitalization of it is capital structure."
ABN AMRO (ABN) Higher After Children's Investment Fund Urges Break-Up or Sale
Reports Getty Images (GYI) In Talks to Acquire Jupitermedia (JUPM)
Tuesday, February 20, 2007
Stifel Nicolaus Said Build-A-Bear (BBW0 Could Be A Takeover Tgt Below $30
Schick also said, "BBW makes good margin and great cash flow with retail/entertainment expertise. We believe the company could and should be private if it remains under $30, and better momentum should occur in 2Q07."
The firm maintains its Buy rating and $36 price target.
Deutsche Bank Comments on Hanson plc (HAN) Following Vulcan/Florida Rock Deal
Bear Stearns (BSC) Higher on Takeover Chatter
Converium (CHR) Rejects Unsolicited Takeover Proposal
Friday, February 16, 2007
GM In Talks To Purchase Chrysler Group - Report - DJ
Soleil Said Vonage (VG) Is An Underweight on the Business, But Overweight On Possible Takeover
Bear Stearns Thinks a SIRI/XMSR Merger Would Pass Regulatory Hurdles
Rumors Goldman Sachs and British Airways Could Bid for AMR (AMR) - BusinessWeek
BusinessWeek's Inside Wall Street column discusses rumors AMR (NYSE: AMR), the parent of American Airlines, is a buyout target of a group that includes Goldman Sachs (NYSE: GS) and British Airways (NYSE: BAB) in a deal that could be worth $46-$52 per share.
NOTE: A follow-up report from Reuters said the two have no plans to bid for AMR, citing sources familiar with the matter.
Wednesday, February 14, 2007
Dollar Thrifty Automotive (DTG) Soars on Takeover Reports
If the deal is completed it would create the third-largest rental car company in the US, behind Enterprise Rent-a-Car and Hertz Global Holdings (NYSE: HTZ).
Occidental Petroleum (OXY) Sees Interest on Takeover Talk
Daimlerchrysler (DCX) Higher on Rumors of Chrysler Unit Fate
Retalix Ltd. (RTLX) Higher on Rumors VeriFone (PAY) Could Buy the Company
Tuesday, February 13, 2007
Ceridian (CEN) To Explore Strategic Alternatives
Applebee's (APPB) Exploring Strategic Alternatives
Alcoa (AA) Higher on Reports of Bids from BHP Billiton Ltd. (BHP) and Rio Tinto PLC (RTP)
Share of Alcoa (NYSE: AA) are higher in pre-open trading on reports in Europe, BHP Billiton Ltd. (NYSE: BHP) and Rio Tinto PLC (NYSE: RTP) are each considering bids for the company worth around $40 billion.NOTE:
A follow-up report from Reuters said BHP Billiton was not working on a bid for Alcoa, citing a source close to the matter.
Friday, February 09, 2007
Cubist Pharmaceuticals (CBST) Higher on Takeover Chatter
Thursday, February 08, 2007
No New York Times (NYT) Sale Says Analyst
According to reports from Bloomberg, a Lehman Brother analyst said a sale of the New York Times Co. (NYSE: NYT) to Warren Buffett or any other entity is highly unlikely due to the Sulzberger family control of the company.
Shares of New York Times closed up 3.8% Wednesday on rumors the billionaire was buying shares in the company. The stock is 2% lower today.
Tuesday, February 06, 2007
Has Carl Icahn Sold His Take-Two (TTWO) Stake
Novelis (NVL) Up on More Takeover Rumors
In Late January, Novelis confirmed it was in discussions with various parties that could lead to a potential sale of the Company.