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Acquisition

  • Featured Story

    Hot Stocks: Hewlett-Packard Continues its Business Makeover with ArcSight Acquisition

    By Don Miller, Contributing Writer, Money Morning - September 14, 2010

    Read More…

Article Index

  • Hot Stocks: Hewlett-Packard Continues its Business Makeover with ArcSight Acquisition
  • Let's Make a Deal: How the Mergers-and-Acquisitions Boom Will Hurt the U.S. Economy
  • PetroChina, Shell Target Australia's Arrow Energy
  • AIG Sells Alico Unit to MetLife for $15.5 Billion, Raising More Cash to Pay Fed
  • Schlumberger's Acquisition of Smith the Latest Evidence of a Takeover Trend
  • How to Make the Most of a Resurgent M&A Market in 2010
  • With NBC Deal Done, Comcast Becomes the New Cable Juggernaut
  • Lazard Puts Future in M&A with New CEO
  • InBev Finally Woos Anheuser-Busch with Higher Offer, Top Billing
  • Don't Be Fooled by a Lull in M&A Activity, More Deals Are on the Way
  • Surprise Rate Cut And Bear Stearns Buyout Inspires Investor Skepticism, Not Calm
  • Time Warner Contemplates Both Acquisitions and Asset Sales after a 53% Drop in Quarterly Profits
  • Goldman Sachs Moves into Japan Property Market
  • Warren Buffett and Berkshire Hathaway Rumored as Bear Stearns Investors
  • CRH eyes possible $4.5 billion buyout of Cemex operations

Hot Stocks: Hewlett-Packard Continues its Business Makeover with ArcSight Acquisition

By Don Miller, Contributing Writer, Money Morning - September 14, 2010

Hewlett-Packard Co. (Nasdaq: HPQ) yesterday (Monday) took another step toward becoming a more diverse software-based company by agreeing to buy ArcSight Inc. (Nasdaq: ARST) for about $1.5 billion in cash.

Palo Alto, California-based H-P will pay ArcSight investors $43.50 a share, a 24% premium over the stock's closing price on Sept. 10. ArcSight makes security software to help companies identify suspicious activity on their corporate networks.

The deal is the latest in a string of acquisitions designed by H-P to lower its reliance on lower-margin computers and servers.

"HP wants to expand from their traditional hardware offerings -- printers and computers and servers -- and they've gone into more services and software," Dave Novosel, an analyst at corporate-bond research firm Gimme Credit in Chicago, told Bloomberg News. "This is something that's a little bit different for H-P. This is not where they've had a strength in the past."

H-P in April kicked off the spending spree by buying 3COM for $2.7 billion and smartphone-maker Palm Inc. for $1.2 billion. H-P also acquired Fortify Software Inc., another security firm, and Stratavia Inc., a database and application automation company based in Denver. Terms for those purchases weren't disclosed.

Read More…

Let's Make a Deal: How the Mergers-and-Acquisitions Boom Will Hurt the U.S. Economy

By , Money Morning - August 31, 2010

With its $39 billion hostile bid for Canada's Potash Corp. (NYSE: POT), mining giant BHP Billiton Ltd. (NYSE ADR: BHP) capped an active August in the mergers-and-acquisitions market.

With the moribund growth prospects of the U.S. economy, there would seem to be no great urgency for companies to go on an M&A spree, yet the total value of announced buyout deals for August alone has topped $175 billion.

Cynics are reaching only one conclusion: With interest rates so low and corporations so cash-rich, it seems that company management teams would rather do anything with that cash than to give it back to shareholders via stock buybacks or boosted dividends.

And those deals signal additional trouble ahead for the U.S. economy.



To understand the problems that this rampant dealmaking figures to cause, please read on...

PetroChina, Shell Target Australia's Arrow Energy

By Kerri Shannon, Associate Editor, Money Morning - March 9, 2010

Oil companies Royal Dutch Shell PLC (NYSE ADR: RDS.A) and PetroChina Co. Ltd. (NYSE ADR: PTR) yesterday (Monday) made a joint offer for Australian energy producer Arrow Energy Ltd. in yet another demonstration of how China is turning Australia into its personal commodities broker.

The $3.4 billion (A$3.26 billion) deal would give shareholders A$4.45 per share - a 28% premium from Friday's share price - and a share in a new Arrow international-business entity for each current Arrow share.

Market reaction was favorable as Arrow's prices soared 47% Monday following the news, up to A$5.11 on the Australian stock exchange (ASX).

"It's an opportunistic bid and good for Arrow shareholders," Tim Schroeders, Pengana Capital portfolio manager, told CNBC.

Read More…

AIG Sells Alico Unit to MetLife for $15.5 Billion, Raising More Cash to Pay Fed

By Don Miller, Contributing Writer, Money Morning - March 8, 2010

American International Group Inc. (NYSE: AIG) today (Monday) agreed to sell its American Life Insurance Co. unit, better known as Alico, to MetLife Inc. (NYSE: MET) for $15.5 billion, taking yet another step towards paying off its U.S. government debt.

MetLife will pay $6.8 billion in cash and $8.7 billion in equity securities for Alico, AIG's second-largest foreign life-insurance business.

With a deal inked a week ago to sell its Asian life-insurer unit, American International Assurance Ltd. (AIA), to Prudential PLC (NYSE ADR: PUK) for $35.5 billion, the Alico sale means AIG is now expected to return $32 billion in cash to the Federal Reserve Bank of New York in the coming months - provided both deals close as scheduled by yearend.

Read More…

Schlumberger's Acquisition of Smith the Latest Evidence of a Takeover Trend

By Kerri Shannon, Associate Editor, Money Morning - February 22, 2010

With global energy demand expected to surge over the next decade, straining production, it's no surprise that many of the sector's biggest players are racing to acquire competitors whose expertise will help them thrive in a more competitive environment. And Schlumberger Ltd. (NYSE: SLB) on Sunday became the latest energy giant to bring a competitor […]

Read More…

How to Make the Most of a Resurgent M&A Market in 2010

By Larry D. Spears, Contributing Writer, Money Morning - January 4, 2010

Unlike this time last year, prospects for U.S. corporate mergers and acquisitions (M&A) appear robust heading into the new year. And that bodes well for investors astute enough to identify the sectors where action will likely be hottest.

As an indication of the improving outlook, nine deals with a total value of $19.9 billion were announced from the start of December through Christmas Eve. That came on top of November's 14 M&A announcements, which were valued at $63.175 billion - although that number was distorted somewhat by Warren Buffett's $26.52 billion bid for the 78% of Burlington Northern Santa Fe Corp. (NYSE: BNI) he didn't already own.
 

By contrast, archives of merger-tracking Web site The Online Investor,  show 15 deals involving publicly traded U.S. stocks in December 2008, but the total value was a meager $3.986 billion. (That's not counting the $8.8 billion merger of Japanese electronics giants Panasonic Corp. (NYSE ADR: PC) and Sanyo Electric Co. (OTC: SANYY), which brightened the global picture somewhat.) November 2008 had 14 deals valued at just $4.898 billion.

Read More…

With NBC Deal Done, Comcast Becomes the New Cable Juggernaut

By , Money Morning - December 4, 2009

Comcast Corp. (Nasdaq: CMCSA) will acquire a 51% stake in General Electric Co.’s (NYSE: GE) NBC Universal Inc. for $13.75 billion in cash and assets, giving the cable giant lucrative cable channels including SyFy, Bravo and the USA Network, as well as Universal Pictures and its related theme parks in California, Florida and Japan.

But for GE, the deal is a precursor to and eventual exit from the media business.

"This isn’t just one of the biggest media deals, this is arguably one of the biggest M&A deals in years," Wunderlich Securities Inc. analyst Matthew Harrigan, who recommends buying Comcast shares, told Bloomberg News.

Read More…

Lazard Puts Future in M&A with New CEO

By , Money Morning - November 17, 2009

In a signal of confidence for the future of mergers-and-acquisitions (M&A), Lazard Ltd. (NYSE: LAZ) appointed Kenneth Jacobs as its chairman and chief executive officer following the unexpected death of famed dealmaker Bruce Wasserstein.

Jacobs, a 21-year company veteran, was most recently CEO of Lazard North America and has a history of leading M&A advisory teams.

“Jacobs is clearly qualified for the position because he has run the North American operations of the company,” Dick Bove, vice president and equity research analyst at Rochdale Securities LLC told Bloomberg Television. “It should be positive for Lazard.”

Read More…

InBev Finally Woos Anheuser-Busch with Higher Offer, Top Billing

By , Money Morning - July 14, 2008

By Jennifer YousfiManaging Editor In a move that surprised investors, Anheuser-Busch Companies Inc.'s (BUD) board voted to end more than 150 years as a family-controlled company, accepting a $70-per-share bid from Belgium's InBev NV in a deal that puts a $52 billion price tag on the iconic American brewer. The St. Louis-based Anheuser-Busch - which […]

Read More…

Don't Be Fooled by a Lull in M&A Activity, More Deals Are on the Way

By , Money Morning - March 31, 2008

By Jason Simpkins Associate Editor The U.S. buyout market is about to enter a new phase, as corporate takeovers pick up where private-equity firms left off last fall. The deal-making market is a key to the health of the U.S. stock market. During much of 2006 and 2007, it was the steady stream of private-equity […]

Read More…

Surprise Rate Cut And Bear Stearns Buyout Inspires Investor Skepticism, Not Calm

By , Money Morning - March 17, 2008

By Jennifer Yousfi And William Patalon III Money Morning Editors In a surprise move yesterday (Sunday), the U.S. Federal Reserve announced that it had cut the Discount Rate by a quarter of a percentage point – a key element of a three-point financial package that includes the takeover of troubled investment bank Bear Stearns Cos. […]

Read More…

Time Warner Contemplates Both Acquisitions and Asset Sales after a 53% Drop in Quarterly Profits

By , Money Morning - November 8, 2007

By Mike Caggeso Associate Editor Jeffrey Bewkes won't even start his new post as chief executive of Time Warner Inc. (TWX) until Jan. 1, but he's ready to sell assets - and perhaps even AOL - as the media giant wrestles with a 53% drop in third-quarter profits. "We will be looking at anything that […]

Read More…

Goldman Sachs Moves into Japan Property Market

By , Money Morning - October 8, 2007

From Staff Reports Goldman Sachs Group Inc. (GS) has its sights set on Japan. Goldman and New York-based Aetos Capital LLC have joined forces and are looking to buy Japanese property company Simplex Investment Advisors for the equivalent of about $1.1 billion to $1.35 billion - a premium of about 65%. The bid is for […]

Read More…

Warren Buffett and Berkshire Hathaway Rumored as Bear Stearns Investors

By , Money Morning - September 27, 2007

From Staff Reports Bear Stearns Cos. Inc. (BSC) shares jumped almost 7.5% yesterday (Wednesday) after the New York Times reported that the investment bank is in talks to sell a minority stake to investors including Warren Buffett. The firm is in "serious" talks with several outside investors and could sell as much as 20% of […]

Read More…

CRH eyes possible $4.5 billion buyout of Cemex operations

By , Money Morning - September 18, 2007

From Staff Reports Dublin-based CRH PLC (CRH) is eyeing a possible $3.5 billion to $4.5 billion acquisition of Cemex SAB's (CX) concrete plants, cement division and pipe-making unit, the companies announced yesterday (Monday). For CRH, the world's second-biggest maker of building materials, it's all about timing. The majority of the assets that the Monterrey, Mexico-based […]

Read More…

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