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Deals of the day- Mergers and acquisitions
October 1, 2013 / 10:13 AM / 4 years ago

Deals of the day- Mergers and acquisitions

Oct 1 (Reuters) - The following bids, mergers, acquisitions and disposals were reported by 2000 GMT on Tuesday:

** Warren Buffett’s Berkshire Hathaway Inc will receive Goldman Sachs Inc stock worth nearly $2.15 billion on Tuesday through warrants acquired as part of a deal originally signed during the depths of the 2008 financial crisis. Buffett received the warrants five years ago when his investment in Goldman was seen as a vote of confidence in the bank, which was reeling from turmoil in the credit market.

** Assicurazioni Generali SpA, Italy’s biggest insurer, said it had completed the sale of its U.S. life reinsurance business to France’s Scor SE for expected total gross proceeds of $910 million.

** Japan’s Sumitomo Corp agreed to buy steel products maker Edgen Group Inc for about $520 million to expand its global distribution business. The $12 per share offer represents a 58 percent premium to the stock’s Monday close of $7.60.

** Hungarian drug maker Egis Nyrt’s board said it backs French Servier’s offer to buy all shares of Egis it does not already own. Servier’s Arts et Techniques du Progres unit, which owns 51 percent of Egis, offered last week to buy the rest of the company for 28,000 forints per share in a deal worth 107 billion forints ($488.8 million).

** The Texas attorney general said his state was dropping out of the U.S. Justice Department lawsuit seeking to block the merger of American Airlines parent AMR Corp and US Airways Group Inc.

** Fast-growing internet software maker Opera Software ASA is neither seeking a buyer nor is it in the market for any big acquisitions, Chief Executive Lars Boilesen told the Reuters Nordic Investment Summit.

** French media group Vivendi SA, hoping to offer pay-TV service to Brazilians eager to watch World Cup soccer matches and the Olympic Games coming to their country, said on Tuesday its Brazilian unit GVT had started negotiating with satellite company EchoStar Corp to set up a pay-TV venture. The venture with Echostar, owned by billionaire Charlie Ergen, would be managed by GVT and headquartered in Brazil if the deal goes through.

** Czech-Greek fund Emma Delta, the buyer of a majority stake in Greece’s gambling monopoly OPAP, said it raised 400 million euros ($541 million) via a private placement of senior secured notes to finance part of the purchase.

** The world famous Harlem Globetrotters exhibition basketball team has been sold to theme park operator Herschend Family Entertainment, the company announced. Norcross, Georgia-based Herschend, which operates 26 theme parks and aquariums across the nation, including most notably Dolly Parton’s Dollywood theme parks, acquired the team from private equity firm Shamrock Capital Advisors.

** Financier Ronny Pecik may make an offer for Hypo Alpe Adria’s Balkans banking network, the nationalised lender’s prime asset, the Kurier newspaper reported.

** MoneyGram International Inc has decided to remain public after talks with private equity firms over a leveraged buyout did not result in an offer in line with its expectations, three people familiar with the matter said this week.

** Republic Airways Holdings Inc said it would sell Frontier Airlines to Indigo Partners LLC in a deal valued at about $145 million. Indigo will pay $36 million in cash for the equity of Frontier Holdings and assume Frontier’s debt.

** Poundland, Britain’s largest single-price discount retailer, is considering an initial public offering in the first half of next year, two sources familiar with the situation told Reuters.

** Shareholders in Finnish engineering company Metso approved plans to spin off its pulp, paper and power unit to boost growth. The unit, which generated about 40 percent of Metso’s net sales of 7.5 billion euros last year, will be listed under a new name, Valmet, next year.

** Newmont Mining Corp, the biggest gold miner in the United States, has joined the race for Glencore Xstrata’s copper mining project in Peru, the Financial Times reported in its Tuesday edition. Newmont’s Chief Executive Gary Goldberg told the Financial Times that Glencore’s Las Bambas mine was “an interesting prospect”.

** Romanian construction materials producer Adeplast will launch an initial public offering for a minority stake during Oct. 2-15 on the Bucharest bourse, hoping to raise between 13 and 15 million euros ($20.30 million). “The funds will be used to finance new investments and develop the company’s activity,” Adeplast said in a statement. The firm plans to sell 16.5 million shares, or roughly 33 percent of its share capital after the IPO.

** Bank Leumi, Israel’s second-largest lender, sold a 4.35 percent stake in Migdal Insurance and Financial Holdings to a number of buyers for about 270.5 million shekels ($77 million), the bank said. Leumi said it sold its stake in Migdal, Israel’s largest insurer, at a price of about 5.9 shekels per share, which was the closing price on Monday.

** Spanish builder Sacyr said its board had decided to sell its property division Vallehermoso, a move that could help it shed more than 1.2 billion euros ($1.62 billion) of debt. In a note to the stock exchange regulator, Sacyr said it had received interest in Vallehermoso but that no deal had yet been finalised. It did not give further details on price or potential buyers.

** Qatar Holding, the investment arm of Qatar’s sovereign wealth fund Qatar Investment Authority, has bought NYSE Euronext’s 12 percent stake in the Qatar Exchange, the Doha-based bourse said. The deal, for which a price was not revealed, makes Qatar Holding the sole owner of Qatar Exchange, which operates the country’s securities market.

** Commercial Bank of Qatar said it had acquired a further 3.4 percent stake in Turkey’s Alternatifbank through a public tender offer, building on its majority holding buy earlier this year. No sale price was given.

** Italian technology company Eurotech has signed a deal to sell its U.S. aerospace and defense computer operation Parvus Corp to the Curtiss-Wright group for $38 million. The sale of Parvus, which specializes in manufacturing rugged computing and communication systems to companies such as Lockheed Martin, Northrop Grumman and Boeing, allows Eurotech to exit what it now views as a non-core sector as it seeks to return to profit.

** German insurer Talanx is considering winding down its life insurance arm HDI Lebensversicherung, the group’s chief executive has told daily newspaper Sueddeutsche Zeitung. The options for HDI include a freeze on new business and the phasing out of existing contracts, CEO Herbert Haas told the newspaper. Existing contracts could also be sold to a specialist company that would wind them down, he said.

** Power group EDF said it was in exclusive talks with energy services group Dalkia France to buy public lighting and traffic management company Citelum. EDF founded Citelum in 1993 and handed it over to Dalkia in 2000 when it set up the energy services joint venture with water and waste group Veolia .

** Experian, the British information services group, has agreed to buy United States fraud detection group The 41st Parameter for $324 million, the firm said.

** Macquarie Group and a group led by non-bank lender Pepper Australia made final, rival bids for assets with an estimated net book value of A$1 billion ($935 million) that Lloyd’s Banking Group is selling in a global restructuring, people familiar with the matter said. The Pepper Australia consortium includes Bank of America Merrill Lynch, people familiar with the process said.

** The New Zealand government said it will pump up to NZ$155 million ($128 million) into Solid Energy and private lenders will swap some debt for equity under a plan to save the troubled coal miner, which is slated for partial privatization. The proposed restructuring plan will see the state-owned company issue NZ$100 million of redeemable preference shares, with key lenders exchanging NZ$75 million of debt for equity and the government injecting NZ$25 million.

** Colombia’s government raised the asking price for its majority stake in the country’s third-biggest electricity generator, Isagen, by 11 percent on Monday, citing strong local and foreign interest. The government will now seek 3,178 pesos ($1.67) per share, President Juan Manuel Santos told reporters, which would take the total price for its 57.6 percent stake to around 5 trillion pesos ($2.62 billion), based on a Reuters calculation.

** Turkish energy company Palmet plans to float a stake of about 20 percent in an IPO next year to raise money to expand its business, Chairman Doganay Samuray said. Istanbul-based Palmet, which distributes natural gas and produces electricity, hopes to earn $100 million or more from the IPO, Samuray told Reuters on Monday.

** J.C. Penney Co Inc shareholder Perry Corp has cut its stake in the retailer by more than half to 3.28 percent, a regulatory filing showed on Monday. The hedge fund firm, run by Richard Perry, had earlier reported a stake of 8.62 percent as of Aug. 30, according to a filing with the U.S. Securities and Exchange Commission.

** Some of the world’s largest private equity firms have made preliminary offers for Johnson & Johnson’s Ortho Clinical Diagnostics unit, which makes blood screening equipment and laboratory blood tests and could fetch around $5 billion, several people familiar with the matter said on Monday. Blackstone Group LP, KKR & Co LP, Bain Capital LLC, Carlyle Group LP and BC Partners Ltd are among the buyout firms that submitted first-round bids last week and are waiting to hear back this week on who made the shortlist, the sources said.

** Telus Corp, one of Canada’s biggest wireless providers, is in talks with Mobilicity to revive a plan for Telus to purchase the struggling smaller player, the Globe and Mail newspaper reported late on Monday. The newspaper report, which cited unnamed sources, came after Mobilicity won protection from its creditors on Monday and said it was seeking regulatory approval for a transaction that would allow it to keep operating. It did not identify the possible buyer.

** Investment firm TCW has acquired private equity firm Craton Equity Partners in a push to expand its alternative offerings, the head of the firm’s alternative products division said on Monday.

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