Stifel Nicolaus Comments on Pearson plc (PSO) Takeover Speculation

Stifel Nicolaus comments on recent speculation, reported late yesterday by "The Business", that private equity firm Kohlberg Kravis Roberts (KKR) is looking at a potential LBO of Pearson plc (NYSE: PSO) for Ј7 billion or $13.7 billion (a 4% premium to yesterday's close).

The firm said, "Our SOTP analysis suggests the company can do better. Based on purchase price multiples involving comparable assets in recent transactions, we derive a fair value ranging from $17 at the low end to $23 at the high end. We would also note that according to the report, KKR has yet to make contact with Pearson, and thus Ј7 billion is merely a number at this point."

Reports Willis Group (WSH) Still Interested in Buying Marsh & Mclennan (MMC)

According to reports from the New York Times, Willis Group Holdings Ltd. (NYSE: WSH) is still interested in acquiring larger rival Marsh & Mclennan Companies Inc. (NYSE: MMC). The article notes that even though Marsh & Mclennan said it is not interested in a takeover, Willis Group's CEO Joseph Plumeri has not given up on his plan for a merger of the two companies. Sources briefed on the plan say Plumeri has the backing of Kohlberg Kravis Roberts (KKR), the buyout firm which briefly owned the company.

Smith & Nephew (SNN) Higher As Takeover Speculation Grows

Smith & Nephew plc (NYSE: SNN) is 3% higher in early action on growing takeover speculation. According to reports, the private equity group that bought Biomet, Inc. (NASDAQ: BMET) could also target Smith & Nephew. The group was made up of Blackstone Group, Goldman Sachs Capital Partners, Kohlberg Kravis Roberts & Co. and TPG.

Smith & Nephew and Biomet were engaged in merger talks prior to the private equity group deal.

Home Depot (HD) CEO Downplays LBO Speculation - Paper

According to reports from the Atlanta-Journal Constitution, Home Depot (NYSE: HD) CEO Bob Nardelli downplayed speculation that the company was the target of a takeover by private equity firms.

Nardelli told the paper, "somebody is probably running the number on us on any given day." He also said the media reports are, "an unfortunate distraction."

Recent reports from the New York Post suggested buyout firms Kohlberg Kravis Roberts and Texas Pacific Group have explored the possibility of a record $100 billion leveraged buyout of the home improvement giant.

Shares of Home Depot are 3.8% higher in mid-day action Friday.

Link to AJC.com article

Home Depot (HD) Higher As LBO Talk Gains Steam

Shares of Home Depot Inc. (NYSE: HD) are 4% higher in early action as LBO speculation gains steam. A takeover of the home improvement giant would seem completely far-fetched not so long ago, but with the activity and wealth of private equity buyers, analysts now say a deal could make sense.

Recent reports from the New York Post, suggest private equity firms including KKR have held talks with investment banks about structuring the deal.