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."

Gap Could Sell Itself in Pieces - Analyst

Prudential upgrades Gap Inc. (NYSE: GPS) from Underweight to Neutral, says board is meeting today and company has engaged service of Goldman Sachs. Says company may be looking to sell the company in pieces to more than one buyer.

UBS Doesn't See Private Equity Buyout of SMI, Downgrades

UBS downgrades Semiconductor Manufacturing International (NYSE: SMI) from Neutral to Reduce, saying the company is an unlikely candidate a private equity buyout.

Shares of Semiconductor Manufacturing ramped 22% on Wednesday on rumors the company could be a takeover target.

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.

Former Cendant Parts Wyndhan (WYN) and Avis Budget (CAR) Higher Following Realogy Buyout

Spin-offs of the former Cendant, Wyndhan (NYSE: WYN) and Avis Budget Group, Inc. (NYSE: CAR), are seeing interest today following the private equity buyout of Realogy Corporation (NYSE: H), another piece of the former Cendant.

Talk on the street is private equity firms are also crunching the numbers on takeovers of these former Cendant units.

Apollo and Texas Pacific Set to Win Harrah's (HET) Auction With $90+ Bid - WSJ

According to reports from the Wall Street Journal Sunday, the private equity team of Apollo Management and Texas Pacific Group are set to win the auction for Harrah's Entertainment (NYSE: HET), with an offer of at least $90 per share.

The article said while a last minute hiccup could still derail the deal, an announcement is expected on Monday.

Street Waits on Harrah's (HET) Bid News

The street is still waiting on a decsion from Harrah's Entertainment Inc. (NYSE: HET) related to buyout bids for the casino company.

According to reports from the Wall Street Journal today, Penn National Gaming (Nasdaq: PENN) made a competing offer to the bid from private equity groups Texas Pacific Group and Apollo Management, which earlier in the week was raised to $87.

Harrah's Entertainment (HET) Sees Volatility Mid-Day on Rumors

Harrah's Entertainment Inc. (NYSE: HET) has seen some volatility mid-day today as rumors swirl the company could opt for a recapitalization versus a private equity buyout. A decision from the company is expected later in the week.

The latest reports suggested the private equity group of Apollo Management and Texas Pacific Group would raise their bid from $83.50 to $87. The stock is currently at $79.40.

Does Sabre Buyout Put PCLN and EXPE in Play?

With the private equity buyout of Travelocity parent Sabre Holdings Corp. (NYSE: TSG), takeover speculation on Priceline.com Inc. (Nasdaq: PCLN) and Expedia Inc. (Nasdaq: EXPE) is picking up.

The stocks are doing little today but you can expect more chatter on the names going forward as sector consolidation takes shape.

Today's Sabre deals follows news this summer that a Blackstone Group affiliate bought Cendant's Travelport, which operates Orbitz.com, for $4.3 billion.

Private Equity Group Expected to Raise Harrah's Bid to $87 - WSJ

According to reports from the Wall Street Journal, Apollo Management and Texas Pacific Group are expected to raise their bid for Harrah's Entertainment (NYSE: HET) from $83.50 to $87.

Final bids for Harrah's are due today and a decision from the company is expected later this week.

Shares of Harrah's closed at $79.74 on Monday.

Sabre Holdings (TSG) Bought By Private Equity Group

As was rumored, Sabre Holdings (NYSE: TSG) agreed to be acquired by Silver Lake Partners and Texas Pacific Group for $32.75 per share in cash. Link

Claire's Stores (CLE) Higher On Reports Takeover Getting Closer

Claire's Stores, Inc. (NYSE: CLE) is higher this morning following reports from Women's Wear Daily the company entered into the second round of bidding with offers said to be around $39 per share.

Earlier in the month, Claire's Stores said it was exploring strategic alternatives for enhancing shareholder value, including a possible sale of the company. The Company has retained Goldman, Sachs & Co.

Claire's Stores, Inc. is a leading international specialty retailer offering value-priced costume jewelry and accessories to fashion-aware tweens, teens and young adult females through its two store concepts: Claire's and Icing by Claire's.

Shares of Claire's Stores are 4.5% higher to $34.60 in early action.

Harrah's (HET) implied volatility at 19 as HET board expected to discuss Bids on 12/13

Harrah's (NYSE: HET) : HET is trading at $80.10 in pre-open trading, above its close of $79.59. The Wall Street Journal reported "HET plans to meet Wednesday to consider all buyout offers." HET option implied volatility of 19 is below its 6-month average of 23 according to Track Data, suggesting decreasing fluctuations. Paul Foster

Reports Sabre Holdings (TSG) Is Up for Sale

According to reports from the Wall Street Journal, Sabre Holdings Corp. (NYSE: TSG) has put itself up for sale, with private-equity groups seen as the most likely purchasers. Sabre Holdings could be acquired at a premium to its $3.75 billion market cap.

Citigroup Said Deere (DE) Approached by Private Equity

Citigroup analyst, David Raso, comments on meeting with Deere & Co (NYSE: DE) management: "Discussion focused mostly on potential areas for acquisitions/business build outs given hugely strong balance sheet and on the sustainability of its strongly improving Shareholder Value Add metrics. However, some interesting color included CEO answering our questions acknowledging company has been approached by private equity to buy the company though management seemed to genuinely dismiss the potential for such an event."

"As well, somewhat disappointing when it comes to accounting earnings potential over the next 24 months is when we asked mgmt about its journey to continually reduce inventory in the channel and if production could stay below retail demand, mgmt noted that's possible."

Boyd Gaming (BYD) Higher Following Station Casinos' (STN) Takeover Offer

Shares of Boyd Gaming Corp. (NYSE: BYD) are 6% higher in early action following news this morning that a management-led group offered to buy Station Casinos, Inc. (NYSE: STN) for $82 per share.

STN and BYD had been seen as the next gaming companies to go.

Takeover speculation in the group has been rampant since Harrah's Entertainment (NYSE: HET) received a $15 billion buyout proposal from private equity firms Apollo Management and Texas Pacific Group in October.

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

Citigroup Analyst Comments on Novellus Systems (NVLS) Takeover Chatter

Citigroup analyst, Timothy Arcuri, comments on Novellus Systems (Nasdaq: NVLS): "While a private equity deal here can't be ruled out, necessary hurdle rates for returns remain difficult to achieve based on our work. Rather, we feel an acquisition by a peer such as Tokyo Electron - while risky - is more likely at this point and we now feel the probability of NVLS being acquired in the next 1-2Qs is at least 50%."

Arcuri continued, "While a deal would clearly move the stock higher, absent this factor, the fundamental margin story here has played out and shares are now under some pressure in core businesses such as CVD. We thus maintain Hold, $32 price target."

Semi Stocks Piling Cash May Be Takeover Targets

According to Barron's Tech Trader blog, Prudential said some semiconductor companies are piling up cash on their balance sheets and may find themselves the targets of takeover bids from private equity firms if they don't rationalize their balance sheets. Mentions Analog Devices (NYSE: ADI), Linear Technology (Nasdaq: LLTC), Altera (Nasdaq: ALTR) and Maxim Integrated Products (Nasdaq: MXIM) Link

Merrill Lynch analyst Doesn't See Infineon (IFX) Takeover

According to Barron's Tech Trader blog, Merrill Lynch analyst Andrew Griffin doesn't see a private equity takeover of Infineon (NYSE: IFX). Link