Today - Monday, November 24, 2014
- Sources close to the matter say Bayer (OTCPK:BAYRY) (OTCPK:BAYZF) is exploring the sale of its diabetes device business as it focuses on higher growth areas. The company is supposedly working with Credit Suisse on the potential deal. Observers believe the unit could fetch between €1B - 2B ($2.5B).
- Bayer also intends to jettison its plastics business.
- Bloomberg reports The Ontario Teachers Pension Plan and Canada's Public Sector Pension Investment Board (PSP) are near a $7B deal to buy Telesat that would value Loral (LORL +7.2%) at $85/share.
- Loral has spiked to $78.50 on the report. The company recently shot down a Telesat deal valuing it at $80/share.
- PerkinElmer (PKI -0.3%) acquires Stockholm-based Perten Instruments Group AB for $266M. Perten manufactures advanced analytical instruments for quality control of food, grain, flour and feed. The transaction expands PerkinElmer's footprint in food testing.
- Perten's top line is ~$65M. It should contribute ~$0.04 to PKI's earnings in 2015.
11:41 AM| Comment!
- American Tower (AMT +0.2%) hasn't disclosed how much it's paying to buy Airtel's Nigerian tower portfolio. Airtel's Nigerian unit will act as the portfolio's anchor tenant, courtesy of a 10-year lease. (PR)
- AMT CEO Jim Taiclet: "With the largest population and economy in Africa and relatively underdeveloped wireless infrastructure, we view Nigeria as a tremendous growth opportunity. Further, we expect this investment to support our long-term objective of generating double-digit AFFO per share growth for our stockholders."
- The agreement comes on the heels of a $1.2B deal to buy 6,480 Brazilian towers from TIM Participacoes.
- Onex (OTCPK:ONEXF +1.1%) agrees to pay up to €3.75B ($4.64B) for Swiss carton packaging maker SIG Combibloc Group from New Zealand-based Reynolds Group.
- SIG is one of the world’s largest manufacturers of carton packaging for the food and beverage industry.
- Reynolds said earlier that SIG’s Q3 revenue fell 3% to $549M on lower sales in Europe, the Middle East and Asia, where a raw milk shortage slowed demand for cartons.
- Nearly a decade after it sold U.K. mobile carrier O2 to Telefonica (NYSE:TEF), BT is thinking of either buying back O2 or acquiring rival EE from Orange (NYSE:ORAN) and Deutsche Telekom (OTCQX:DTEGY), the FT reports. Spain's El Confidencial reports Telefonica could sell O2 in exchange for a 20% stake in BT.
- BT owns 4G spectrum, and already offers MVNO services through a deal with EE. EE and Vodafone are hatching plans to encroach on BT's turf by offering quad-play bundles. Engadget notes acquiring a mobile carrier make BT the only carrier with "full control over its home phone, broadband, mobile and TV services."
- BT has confirmed it has "received expressions of interest from shareholders in two UK mobile network operators, of which one is O2, about a possible transaction in which BT would acquire their UK mobile business." Orange CEO Stephane Richard recently stated EE's 50/50 ownership structure was unlikely to last.
- BT +3.3% premarket. TEF +1.5%.
- Sarepta Therapeutics (NASDAQ:SRPT) is up 14% premarket on robust volume in response to BioMarin Pharmaceuticals' (NASDAQ:BMRN) announced acquisition of Prosensa Holding N.V. (NASDAQ:RNA) for $680M.
- Some observers believe Sarepta's Duchenne muscular dystrophy drug eteplirsen is better than Prosensa's drisapersen which makes it a more attractive acquisition target.
- Previously: BioMarin buys Prosensa
- Previously: Sarepta +11.2% following FDA statement
- Tetraphase Pharmaceuticals (NASDAQ:TTPH) is reportedly considering selling itself after being approached by interested suitors. Sources say the acquirer could be Acetelion (OTCPK:ALIOF) (OTC:ALIOY) or Roche (OTCQX:RHHBY).
- The attraction is Tetraphase's antibiotic eravacycline, currently in Phase 3 development. Both oral and IV formulations of the drug have demonstrated higher dose response rates than Johnson & Johnson's (NYSE:JNJ) Levaquin (levofloxacin) for the treatment of complicated urinary tract infections. In the Ignite-2 study, patients receiving 200 mg eravacycline IV-to-oral doses achieved a response rate of 70.8% while patients receiving 250 mg IV-to-oral doses achieved 64.3%, both significantly ahead of Levaquin's 52.2% response rate.
- A trial comparing eravacycline to Merck's (NYSE:MRK) Invanz (ertapenem) for the treatment of complicated intra-abdominal infections is underway.
- TTPH is up 18% premarket on light volume.
- Previously: Tetraphase completes eravacycline Phase 3 enrollment
- 3D Systems (NYSE:DDD) agrees to acquire Israel's Cimatron (NASDAQ:CIMT) for ~$97M to strengthen its position in the 3D design and manufacturing business.
- CIMT provides CAD and CAM software products and solutions for 3D manufacturing; DDD will pay $8.97/share, a 47.5% premium to CIMT's Nasdaq closing price on Friday.
- CIMT +42.7% premarket, DDD +0.5%.
- The stock and cash deal currently works out to $76 per share for Platinum Underwriters (NYSE:PTP), a 24% premium to Friday's close. It's also 1.1x September 30 book value of $68.34.
- Platinum owners will receive $10 per share in cash as a special pre-closing dividend, and may then elect to receive another $66 per share in cash or 0.6504 RenaissanceRe (NYSE:RNR) shares, or a combination of the two. The deal is expected to close in 2015 H1.
- A conference call is set for 9 ET.
- Source: Press Release
- PTP +18.3% to $72.50 permarket
- Through its acquisition of Banister Pipelines, Quanta Services (NYSE:PWR) expects to expand its Canadian mainline pipeline services across Canada, while providing Banister's customer base with access to its extensive energy infrastructure resources.
- Banister is estimated to generate approximately $350M in revenue in 2015.
- BioMarin Pharmaceuticals (NASDAQ:BMRN) acquires Prosensa Holding N.V. (NASDAQ:RNA) for $17.75 per share (~$680M) plus ~$80M in milestones related to the regulatory approvals of drisapersen in the U.S. no later than May 15, 2016 and in Europe no later than February 15, 2017.
- The FDA is currently assessing the drisapersen NDA under a rolling review process. The Duchenne muscular dystrophy drug has Orphan Drug, Fast Track and Breakthrough Therapy designations.
- In addition to the terms of the acquisition agreement cited above, BioMarin will purchase a $50M convertible note from Prosensa within five days of signing the contract. If the transaction fails to close for any reason, the note will automatically convert into 4,395,914 shares of RNA stock.
- RNA is up 65% premarket to $18.87 on light volume.
- On December 18 GlaxoSmithKline (NYSE:GSK) shareholders will vote on the company's planned acquisition of Novartis' (NYSE:NVS) vaccines business, the latter's acquisition of Glaxo's cancer products and the combination of their consumer healthcare businesses. The total value of the assets involved is ~$20B.
- Previously: Novartis announces billions of dollars in deals with GSK, Eli Lilly
- Previously: Why Glaxo bids adieu to cancer drugs
- Investors are only starting to digest Aviva’s (NYSE:AV) potential £5.6B ($8.8B) purchase of Friends Life (OTC:RSLLF), which the two companies were forced to confirm late on Friday after the news leaked.
- The deal aims to strengthen the balance sheet of Aviva, as well as boosting AUM and cutting costs.
- The two companies have agreed to terms of a possible all-share deal at a 15% premium to Friends Life's closing price, offering Friends Life shareholders a 26% stake in the new company.
Sunday, November 23, 2014
- Discovery (NASDAQ:DISCA) and Foxtel (NASDAQ:NWS) are reportedly preparing to offer shareholders in Ten Network Holdings a potential interest in any turnaround in its financial performance in to an effort win the takeover auction for the troubled company.
- Time Warner (NYSE:TWX) is reportedly out of the running.
- Ten's tentative deadline for indicative offers is Dec. 2.
- Source: AFR
- Previously: Race for Ten Network Holdings to heat up this week (Nov. 10)
Friday, November 21, 2014
- American Tower (NYSE:AMT) is buying 6,480 towers from TIM Participacoes (NYSE:TSU) for R$3B ($1.2B), slightly more than the ~$1.1B previously reported by Reuters. AMT "intends to finance the acquisition in a manner consistent with its previously announced leverage targets."
- The towers are expected to produce R$435M/year ($171M/year) in revenue, and R$191M/year ($75M/year) in gross margin. TIM has agreed to 20-year leases for the towers, and will act as their anchor tenant.
- AMT has already bought Brazilian towers from NII Holdings, and acquired local tower owner BR Towers. The company also bought 666 Brazilian towers in 2011, a transaction Muddy Waters took aim at.
- Altogether, AMT owned/operated 69.5K towers at the end of Q3.
- Qualcomm (NASDAQ:QCOM) has sold its Taiwanese Mirasol display plant to TSMC (NYSE:TSM) for $85M, per a TSMC regulatory filing.
- Taiwanese media previously reported Qualcomm was set to sell the plant, which it once planned to invest up to $975M in, and that TSMC wanted to use it to expands its chip assembly/testing ops.
- Meanwhile, the sell-side has been busy debating Qualcomm's analyst day guidance and commentary, with much of the attention on focused on the company's China remarks. Cowen's Tim Arcuri is somewhat encouraged. "The company provided no new substantive regulatory (NDRC/FTC/EU) updates, but seemed to strike a more definitive tone about ultimately collecting royalties on 'substantially all LTE devices.'"
- That, in turn, makes Arcuri think the most likely outcome for the China dispute is "some combination of a fine, potential changes in the royalty rate structure for all of [Qualcomm's] licensees operating in China, and/or increased investment in the local China semiconductor supply chain."
- Bernstein's Stacy Rasgon is less positive. "We do not believe the near-term regulatory issues (particularly China) are truly the primary issue anymore ... The bigger issue being how the rise of China, at scale, is changing the overarching market dynamics that Qualcomm plays."
- More than 75% of the votes were cast in favor of the deal in which SWS Group (SWS +0.6%) shareholders will receive $1.94 in cash and 0.2496 shares of Hilltop Holdings (HTH +2%) for each share of SWS they own. Judging by the share price reaction, Hilltop investors think they're getting a bargain.
- Source: Press Release
- Halliburton's (HAL +2.4%) takeover of Baker Hughes (BHI +1.3%) will create an oilfield services powerhouse in North Dakota with more than half of the cementing market and a leading position in fracking, Reuters reports.
- In the Williston Basin, the combined company will control 53% of the market to line a new well with cement to prevent leaks, as well as 36% of the market for fracking and 35% of the market for directional drilling, according to the data.
- The North Dakota market share projections for the combined company will be of interest to competitors and regulators, as the deal is expected to face stiff antitrust hurdles and receive close scrutiny from regulators in the U.S. and Europe.