Costco, Ingersoll on Buffett's Buyout List?

by: Alacra Pulse Check Blog

by Sheena Lee

Deal Idea: Some Berkshire Hathaway (NYSE:BRK.A) investments that could be on Warren Buffett’s shopping list for takeover include Costco (NASDAQ:COST) and Ingersoll Rand (NYSE:IR), experts said. One analyst at a major mutual fund said earlier this month his fund was already buying into Costco on the theory that Berkshire will take over the wholesale retailer. (Reuters)

Credit Suisse last month raised its price target on Costco to $80 from $75, calling the company an underappreciated global growth story. (TheStreet) KeyBanc Capital Markets analyst Jeff Hammond downgraded Ingersoll to Hold from Buy, saying that inflation and the weak outlook could hold the stock back. (

Deal Idea: Equinox Minerals’ (OTC:EQXMF) C$4.8 billion ($5 billion) hostile bid for fellow copper miner Lundin Mining (OTC:LUNCF) is sparking talk that it could be putting itself into play, as hot copper prices turn pure-play copper miners into the latest juicy targets in the mining sector. (Reuters)

Deal Update: Shareholders of J. Crew (JCG) approved a management-led buyout and the company announced that 41 million shares were voted in favor of the deal, while 13 million shares were voted against. The retailer’s second biggest shareholder, Paulson & Company, which holds a 9.4 percent stake, had decided just on Monday to support the buyout. (DealBook)

Deal Update: Honest Tea and The Coca-ColaCompany (NYSE:KO) announced that Coca-Cola has exercised its option to acquire the remaining portion of the tea maker. The move completes a transaction which began three years ago when Coca-Cola purchased a minority stake in the company. Financial terms of the transaction were not disclosed. (Coca-Cola)

Deal Update: General Mills (NYSE:GIS) and Nestle (OTCPK:NSRGY) are among leading candidates to buy a 50% stake in French yogurt maker Yoplait, being sold by PAI Partners. Nestle and General Mills submitted offers valuing Yoplait at about 1.6 billion euros ($2.2 billion) and a final bidder may be selected in the next few weeks. (Bloomberg)

Today’s Rumor: India’s International Coal Ventures consortium could be lining up a 165 pence a share cash offer for Coal of Africa, sending its shares up. (This Is Money)

Other Deal Activity:

Health Care REIT (NYSE:HCN) said that it had agreed to buy the real estate of Genesis HealthCare for $2.4 billion, in the second major health care real estate deal of the week. (DealBook)

Pan American Energy has struck a deal to buy an oil refinery and nearly 450 service stations from Esso, the Argentine unit of Exxon Mobil (NYSE:XOM). (Reuters)