Brazilian paper Folha de S. Paulo reports America Movil (AMX +1.6%), Telefonica's (TEF +1.2%) Vivo (VIV +4.9%), and Oi (OIBR +12.3%) have agreed in principle to pay R$31.5B ($13.1B) to acquire and break up TIM Participacoes (TSU +8.6%), Telecom Italia's (TI +2.9%) Brazilian unit.
The paper adds a formal offer will be made to TI shareholders. TI chairman Giuseppe Recchi says his firm hasn't yet received an offer. TIM's market cap is currently at $12.5B.
AMX would reportedly keep 40% of TIM, Telefonica 32%, and Oi 28%. Rumors of a joint bid have been around for weeks, as Brazilian carriers dealing with slowing growth and price wars bet consolidation will improve their fortunes.
Markets are responding well to the report. Oi merger partner Portugal Telecom (PT +8.9%), whose main asset is a stake in the combined company, is also rallying.
An online trading firm, City Index specializes in CFDs, forex, and U.K. spread betting. The purchase price is $118, but includes $36M on City's balance sheet.
Terms: $20M in cash, $60M of convertible notes, and the issuance of about 5.3M GCAP shares. In addition to the $36M of cash on City's books, the company also has $65M of NOLs which can be carried forward. The deal is expected to close in Q1.
Q3 preliminary results for GAIN Capital: Net revenues of $102.8M up 69% Y/Y. Adjusted EBITDA of $26.6M up 120%; cash earnings per share of $0.40 up 124%. Full report on Nov. 6.
Aviv REIT (NYSE:AVIV) is higher by 14.6% premarket to $34.50 per share after agreeing to be sold to Omega Healthcare Investors (NYSE:OHI) in an all-stock deal for $3B, or $34.97 per share based on last night's closing prices.
Under the terms, Aviv owners will receive 0.90 Omega shares for each share of Aviv they hold.
The deal is expected to be accretive to Omega's adjusted FFO and FAD. Early 2015 adjusted FAD guidance of $2.81-$2.87 compares to 2014's $2.58-$2.61.
Current Omega CEO Taylor Pickett will continue in that role when the companies are combined. Aviv Chairman and CEO Craig Bernfield will become a member of Omega's expanded board.
The WSJ reports SoftBank (OTCPK:SFTBF) has tasked new Sprint CEO Marcelo Claure with "gathering information" on the Mexican telecom assets America Movil (AMX +0.4%) plans to sell to appease regulators.
AMX was reported last month to have contacted SoftBank (among other carriers) to gauge its interest in buying the assets. BofA has estimated a sale could fetch $15B, but a WSJ source says bidders are eying a ~$10B price.
AT&T has suggested it's looking to make an offer. Three weeks ago, Carlos Slim told Bloomberg the asset sale could extend beyond Mexico's eastern coast.
The deal strengthens Lenovo's mobile position in the U.S. and various international markets, and also bolsters its R&D resources. Lenovo has said it's keeping the Motorola brand.
Though struggling in recent years, Motorola's revenue rose 43% Y/Y in Q3 to $1.69B, thanks largely to successful low-end phone launches. A new high-end phone - the Droid Turbo - was launched with Verizon on Tuesday.
Lockheed Martin (NYSE:LMT) has entered into a definitive agreement to acquire Systems Made Simple, a provider of health IT solutions to the U.S. government.
"Systems Made Simple's capabilities in engineering health technology solutions are a natural extension of our existing health IT portfolio, and will enable us to deliver a broader portfolio of capabilities to meet our healthcare customers' current and future needs," says CEO Marillyn Hewson.
The acquisition is expected to close within 30 days.
Tokyo Electron (OTCPK:TOELF), which is expected to be acquired by Applied Materials (NASDAQ:AMAT), has announced that the completion of their merger could take until next year due to delays in regulatory approvals.
Applied Materials agreed to buy Tokyo Electron in September of last year in an all-stock deal worth more than $10B, combining the two makers of chip-making gear as demand for their products slowed.
Western Gas Partners (WES, WGP) agrees to acquire Nuevo Midstream, a Delaware Basin gas gatherer and processor, for $1.5B.
Nuevo's assets include a 300M cf/day cryogenic processing complex with an additional 400M cf/day of processing capacity scheduled to be in service in 2015, and 275 miles of gathering pipeline; more than 70% of Nuevo's gross margin is fee-based, and Western expects that following the acquisition more than 95% of its consolidated gross margin will be either fee-based or covered under its fixed-price agreements with Anadarko.
Western expects the Nuevo acquisition to be accretive to its distributable cash flow per unit in 2015.
(HCA -0.5%) acquires privately-held CareNow, an operator of 24 urgent care centers in the Dallas-Fort Worth area. The independent medical services provider was founded in 1993 and serves ~9% of the local population.
Financial terms are not disclosed. The transaction should close in Q4.
EMC (EMC +0.5%) has acquired Maginatics, provider of a software platform built from the ground up to jointly manage public and private cloud storage. It has also acquired Spanning, provider of a data backup/recovery service for cloud business apps. Terms are undisclosed.
EMC touts Maginatics' ability to provide a global namespace (enabled by its Virtual Filer file system) for far-flung cloud storage resources, thereby simplifying data management and protection. Its platform also uses client software that optimize storage delivery based on device type.
"This would provide EMC with the industry’s most capable cloud and on-premise software defined storage platform," said industry analyst Ben Woo ahead of the deal (rumors existed). Woo added EMC could integrate Maginatics' offerings with its ViPR platform for managing on-premise storage.
The purchases follow the acquisitions of cloud infrastructure (IaaS) software firm Cloudscaling and cloud storage software firm TwinStrata, and mesh with a broader EMC effort to deliver storage platforms that work with both EMC and non-EMC hardware; the 2013 ScaleIO acquisition also fits with this goal.
In tandem with the acquisitions, EMC has unveiled its Enterprise Hybrid Cloud platform, which the storage giant claims can allow a hybrid cloud to be set up in 28 days.
The solution relies on several VMware (VMW +1.5%) products, including its virtualization, IT self-service, and cloud/data center management software. It also features EMC storage hardware (VMAX, VNX, Vblock, and Avamar) and software (ViPR, VPLEX), and integrates with VMware's vCloud AIR IaaS platform.
Microsoft is already a major player in the hybrid cloud software/services space (via Azure), and various supporters of the OpenStack IaaS platform (IBM, H-P, Cisco, Red Hat, etc.) have their own efforts underway.
Bristol-Myers Squibb (BMY +1.6%) enters into an agreement with privately-held Austrian biotech F-star Alpha Ltd. that gives it the exclusive right to acquire the company and its lead asset, FS102, a HER2-targeted therapy for the treatment of breast and gastric cancer.
Under the terms of the agreement, BMY will make aggregate payments of $50M consisting of an option fee for the right to acquire F-star Alpha, payment for certain rights and licenses from F-star and a clinical milestone payment upon the initiation of the Phase 1 clinical trial. BMY will conduct and fund the development of FS102 during the option period. Total aggregate consideration may reach $475M.
A day after finally releasing its 2013 20-F, NQ Mobile says it has rejected Bison Capital's $9.80/share buyout offer. However, NQ "remains in active discussions with Bison Capital about alternative opportunities for investment and collaboration as the Board continues its review of strategic initiatives at a broader level."
Separately, NQ has closed the sale of a 3.58% stake in its FL Mobile game-publishing subsidiary to Bison for $15M (previous), and the sale of a 0.92% stake in FL other investors for $3.85M.
Another $6.15M worth of FL shares can be sold to other investors within 60 days of the Bison deal. Investors have a redemption right if FL doesn't do an IPO within 12 months of the sales.