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Tim Travis
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Tim Travis is a veteran deep value investor and money manager. Travis has extensive experience in traditional investments such as stocks and bonds, in addition to having a unique methodology of combining options and distressed investing with value investing to generate income, reduce risk, and... More
My company:
T&T Capital Management
My blog:
T&T Capital Management Blog
My book:
Learn to Treat Your Portfolio as a Business
  • Nestle To Acquire Pfizer Baby Food Unit For $11.9 Billion-Bloomberg 0 comments
    Apr 23, 2012 10:14 AM | about stocks: NSRGY.PK, PFE

    It looks like Nestle (NSRGY) is paying a healthy 19.8 times 2012 EBITDA for Pfizer's (PFE) nutrition business. That is a pretty high multiple but Nestle is betting on cost synergies, and high growth prospects from the emerging markets that the business operates in. Nestle has and also produces a lot of cash so this seems like a decent use of it, so I think the deal makes sense for both companies. Pfizer was very lucky to have two really strong bids from both Nestle and Danone to ensure that they got a fair price.

    http://www.bloomberg.com/news/2012-04-23/nestle-agrees-to-buy-pfizer-baby-food-unit-for-11-9-billion-1-.html

    Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

    Stocks: NSRGY.PK, PFE
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