The banks at the heart of the Hunstman deal are backtracking on their commitment to fund the merger. Acquirer Hexion is suing those banks to force them to fund the deal. There are some big financial penalties for Hexion if they cannot complete the deal, so they have some serious motivation to sue [...]
From an article in Barrons today:
The company’s bid for NRG Energy seems risky without enough reward.
and
…the deal is only modestly accretive to Exelon earnings leading us to question the long-term benefit to shareholders. Meanwhile, the challenges to successfully executing the transaction are considerable.
For more on this deal, see my recent blog post with a number [...]
Target: Genentech, Inc (DNA)
Buyer: Roche Holding AG
Footing: Unfriendly, nothing agreed upon yet.
The company flexed its financial muscles with the Genentech bid in July, holding firm to its $89 per share offer for the 44 percent it does not already own, even though it was rejected as undervaluing the U.S. biotech company. - Reuters via NYT [...]
It looks like the ImClone deal might be making strides to get completed. I mentioned last week that I thought the deal was in danger of getting done. It was $65/sh then…. now it is above $67… the spread is closing.
From this article fin TheStreet.com:
Eli Lilly said Tuesday that it has commenced a [...]
Looks like Hexion and Apollo are now going to try and complete the Huntsman (HUN) deal. At HUN’s current trading price, if the deal goes through at the original buyout price, the ROI is huge.
Target: Huntsman Corp. (HUN)
Buyer: Hexion and Apollo Management LP
Deal: $28 cash per share
Target share price: $12
Closes on: ??
Backstory:
Hexion/Apollo have wanted [...]
UPDATED: 10/17/2008
Target: Captaris (CAPA) - Captaris Inc (CAPA) is a business automation software developer.
Buyer: Open Text Corp (OTEX) - mainly a content management software developer.
Notes:
Orig. Announced: 9/4/2008
Deal: $4.80/sh cash.
Currently trading at: $4.70
Arb spread: $0.10.
Analysis:
These numbers do not look that great to me. I will watch, but mostly ignore this one.
Backstory:
In March 2008, Captaris rejected [...]
Some deals I am avoiding right now:
Republic Services - Waste Management (more)
Diebold - United Technologies (deal withdrawn)
Alltel - Verizon Wireless
Underscoring the severity of the debt crisis, several sources said that Verizon Wireless has not been able to get fully committed financing to back the acquisition of Alltel. - TheDeal.com article
Target: LNCB - Lincoln Bancorp ($12.50)
Acquirer: FRME - Commerce National Bank ($21)
THE DEAL: Merger letter to shareholders on this one says:
In exchange for your Lincoln common shares, you will have the opportunity to choose either 0.7004 shares of First Merchants common stock or $15.76 in cash for each Lincoln common share you own. However, no [...]
Target: ImClone Systems (IMCL)
Deal: $70/share
Current Share Price (10/10/2008): $65
Acquirer: Eli Lilly and Co.
Notes:
The $70/sh offer beat out another offer of $62/sh from Bristol-Myers Squibb.
Current arbitrage spread: $5/sh
Seems like a consensus is growing that this deal might not happen.
But the deal immediately raised eyebrows when Lilly executives revealed that as much as half the cash will [...]
Private equity fund Mithras Capital (owns 1.9 million YHOO shares, or 0.14 percent) proposed a new deal this week: Sell Yahoo to Microsoft for $22 a share. Current trading price: $12.29. That’s quit a premium– looks like someone at Mithras is smoking something.
Based on the comments at the press release blog post (see link below), [...]
