ITT Water Spinoff Could Pursue Pall as CEO Retires

Includes: ITT, PLL
by: Alacra Pulse Check Blog
By Sheena Lee

Deal Idea: The planned retirement of Pall Corporation’s (NYSE:PLL) chief executive, Eric Krasnoff, in March 2012 could prompt the company to do a deal, said Credit Suisse analysts Hamzah Mazari and Christopher Parkinson. They said that Krasnoff’s retirement after 17 years is “a catalyst for the company to merge or become acquired…In our view ITT’s water tech spin-off will likely be a suitor.” (DealBook)

After the spin-off from ITT, the newly formed standalone Water Technology Corporation will include Residential & Commercial Water, Flow Control and Water & Wastewater (including biological, filtration and disinfection treatment and analytics) businesses and is estimated to generate pro forma revenue of $3.6 billion in 2011. (Zacks)

Credit Suisse upgraded Pall, manufacture of filtration and separation equipments, to Outperform from Neutral and raised the firm’s price target to $66 from $54. (Proactive Investors) Last month, analysts at Jefferies & Co. had also raised their price target on Pall to $55 from $45. (Benzinga)

Deal Update: Shareholders unhappy with a proposed leveraged buyout of J.Crew (JCG) have walked away from a weeks-old settlement that allowed for changes to the deal, according to a letter filed in Delaware state court. (DealBook)

Other Deal Activity:

RPG Group company Phillips Carbon Black (506590) has indicated that the company is in the race for the $1.2-billion carbon black division of Germany’s Evonik Industries. (Business Standard)

After a drawn-out court battle, Dish Network (NASDAQ:DISH) is set to acquire the satellite operator DBSD North America for about $1 billion as it emerges from bankruptcy. Dish Network will also make a loan of $87.5 million available to DBSD. (DealBook)

M2 Telecommunications is expected to announce a multi-million-dollar acquisition of rival telco Clear Communications after it halted trading late Monday. (The Australian)

Russia’s biggest mobile phone group MTS is talking to fellow telecoms operators over a possible merger, the CEO of MTS parent company Sistema said. (Reuters)

Corning (NYSE:GLW) said that it agreed to buy a wireless solutions provider, MobileAccess Networks, for an undisclosed sum. (DealBook)

Valeant Pharmaceuticals (NYSE:VRX) announced that it would acquire PharmaSwiss, the maker of generic drugs, for 350 million euros ($481 million). (DealBook)