Today - Friday, November 28, 2014
3:01 PM| Comment!
- Ingram Micro (NYSE:IM) has "made a binding offer" to acquire ANOVO, A French provider of reverse logistics and repair services for smartphones, set-tops, and other tech products in Europe and Latin America. Terms are undisclosed.
- The deal is expected to close in Q1 2015, contribute $300M+/year in revenue, and be "modestly accretive" to EPS.
- ANOVO claims 5K "associates" in 11 countries. CEO Francois Lacombe will continue running the company post-acquisition.
- Sources tell Bloomberg Vodafone (NASDAQ:VOD) is "holding internal deliberations and analyzing the financial and regulatory hurdles as well as investor support for a share-based transaction" with Liberty Global (NASDAQ:LBTYA).
- However, they add no formal talks with Liberty are currently underway, and that "valuation and regulatory issues remain key obstacles."
- Liberty has a ~$38B market cap, and $40.1B in net debt. Vodafone is worth $95.1B, and has $34B in net debt. Vodafone closed up 2.5% (with the help of a UBS upgrade), and Liberty closed up 7.4%.
- Prior coverage
- Reuters reports Procter & Gamble (NYSE:PG) is working with Goldman to explore a sale of its Wella hair care unit, and that a deal could fetch ~$7B.
- P&G, which has already been busy streamlining its consumer product lineup, is said to be "exploring all options for the unit," including the sale of just a portion of it. The company bought Wella for $7B in 2003.
- PG +1% AH.
- Bloomberg reports Vodafone (VOD +2.6%) is exploring a "combination" with European cable giant Liberty Global (LBTYA +7.4%). Liberty has soared on the news.
- Liberty operates in 14 countries (12 in Europe), passes 52M homes, and claims 27M customers and trailing annual revenue of $20B. Vodafone has already acquired Spanish and German cable giants ONO and Kabel Deutschland, and has declared it wants to offer mobile/wireline bundles throughout Europe.
- Earlier: UBS upgrades Vodafone
- Medtronic (MDT +1.3%) secures EU approval for its $43B acquisition of Covidien plc (COV +1%) contingent on, as expected, Covidien selling Stellarex, its drug-coated angioplasty balloon. Spectranetics (SPNC +1.9%) agreed to purchase Stellarex several weeks ago for $30M. The FTC recently gave its blessing to the transaction as well.
- Previously: FTC clears Medtronic/Covidien marriage
- Previously: Spectranetics buys Covidien's DCB platform
- Lyon, France-based Flamel Technologies (FLML +0.6%) sells its Pessac, France-located manufacturing and development facility to Swedish CDMO (contract development and manufacturing organization) Recipharm for €10.6M as part of a five-year service agreement. Flamel retains access to the capabilities of Pessac as well as other Recipharm facilities for its production and development activities. The sale includes the royalty contract for Coreg CR with GlaxoSmithKline (GSK +0.3%).
- Flamel and Recipharm agree to negotiate an agreement with the objective of incorporating the former's drug delivery technology into the latter's contract development business.
- In a separate transaction, Recipharm will make a €10.5M investment in Flamel's common stock.
- Glentel (OTC:GLNIF) is Canada's biggest independent mobile phone retailer, operating 494 retail locations in the country through several brands. It also "owns, operates, and franchises approximately 735 retail locations in the United States, as well as 147 points of sale in Australia and the Philippines."
- BCE (BCE) is paying C$26.50/share - half in cash, half in stock - to acquire Glentel's 22.4M shares (total cost $594M), and is assuming net debt and minority interest of $78M. The share purchase price represents a 108% premium to Glentel's Thursday close in Toronto.
- The deal is expected to close in Q1 2015. It could cause some friction with BCE rivals serviced by Glentel, such as Rogers, Fido, and Virgin Mobile. BCE plans to "continue offering products from multiple carriers following the acquisition."
- BCE: "Supporting Bell's commitment to deliver improved customer service, this transaction secures continued access for consumers to the convenient, high-quality customer experience offered by Glentel retail brands."
- Pfizer's (NYSE:PFE) attempt to gain control of AstraZeneca (NYSE:AZN) through a £69.4B ($110B) takeover bid in May would have collapsed on changes to U.S. tax inversion laws, announced Astrazeneca's chief exec, cooling off speculation of another bid for the U.K. pharmaceutical company.
- "If we had agreed to a deal at the time, probably that deal would have fallen apart by now, just like the AbbVie/Shire deal, and created enormous destruction and disruption in our company," said Pascal Soriot in an interview with CNBC.
- Vivendi (OTCPK:VIVHY) has closed the sale of its mobile carrier SFR to domestic cable company Numericable (Altice's subsidiary) for €13.4B ($16.7B).
- Numericable is looking to make SFR its flagship brand and displace Orange as France's largest broadband operator.
- Vivendi will use the sale to cut debt, announcing plans to proceed with the early redemption of €5.3B in bonds.
- Previously: Vivendi chooses to sell SFR to Altice in €17B+ deal
- Hutchison Whampoa (OTCPK:HUWHY), the owner of Britain's fourth largest mobile operator 3 Group, is now entering the race for either O2 (NYSE:TEF) or EE, the U.K.'s number one and two wireless carriers.
- The move sparks the prospect of a bidding war, as Deutsche Telekom (OTCQX:DTEGY) and Orange (NYSE:ORAN) confirmed on Wedneday that they were in talks to sell EE to BT (NYSE:BT).
- Hutchison could put forward a bid for either EE or O2 by the end of the year.
- Previously: Deutsche Telekom, Orange confirm EE sale talks
Wednesday, November 26, 2014
- Shanda Interactive has sold 48.8M Shanda Games (GAME -0.2%) Class B shares to a company controlled by acting CEO Yingfeng Zhang, and an equal number of shares to an affiliate of Hong Kong-based Ningxia.
- Following the sale, Ningxia owns 24.1% of GAME's Class A and B shares, and 40.1% of its voting rights. Zhang's company respectively owns 9.1% and 34.5%. Shanda Interactive "no longer beneficially owns any ordinary shares of the Company."
- Shanda Interactive doesn't intend to remain a member of the consortium that has offered $1.9B ($6.90/ADS) to buy Shanda Games. However, Ningxia and Zhang remain a part of it.
- GAME also announces Zhang is now the company's chairman. He replaces Shanda Interactive co-founder Tianqiao Chen, who is leaving the board. Ningxia chairman Shengming Ma is joining the board.
- The Federal Trade Commission approves the merger between Medtronic (MDT +1%) and Covidien plc (COV +1.2%) with the proviso that Covidien divest its drug-coated catheter business before completing the transaction. Covidien agreed to sell the business for $30M to Spectranetics (SPNC +1%) several weeks ago.
- Previously: Medtronic buying Covidien for $42.9B
- The Federal Trade Commission approves GlaxoSmithKline's (GSK +0.4%) proposed acquisition of Novartis' (NVS +0.6%) vaccines business and the proposed creation of a consumer healthcare joint venture between the two firms.
- As a condition of the positive vote, Novartis will divest its private label nicotine replacement therapy transdermal patch, Habitrol, in the U.S. to Dr. Reddy's Laboratories SA (RDY +1.5%).
- Bloomberg reports Amazon (AMZN -0.5%) has finished internal talks to buy top Indian online fashion retailer Jabong. VCCircle reports Amazon has "completed its first level of talks" to buy Jabong, and that the deal could be worth $1.1B-$1.2B.
- Jabong had a 1H14 GMV of INR5.1B ($82.9M) courtesy of 3.2M orders, up 3x Y/Y. The company is backed by German e-commerce VC firm/incubator Rocket Internet.
- Indian restrictions on retail foreign investment could stand in Amazon's way. However, the new government is reportedly open to loosening e-commerce-related restrictions.
- Amazon committed to investing $2B in India earlier this year, where it faces off against local giant Flipkart and eBay-backed marketplace Snapdeal. Alibaba just stated it plans to expand its Indian presence.
- Delphi's (DLPH -0.2%)sale of its air conditioning business, Delphi Thermo, is being complicated by potential problems with one its South Korean JV partners, Reuters reports.
- Delphi's business has caught the eye of France's Valeo (OTCPK:VLEEY -0.2%), Germany's Mahle and Japan's Denso (OTCPK:DNZOY -0.1%) and a sale could fetch more than $700M.
- The potential problems stem from the fact that Erae (a company which Delphi holds a JV with called Kdac) has also expressed interest in the business but is being sidelined from the process.
- Delphi's Thermal Systems unit posted adjusted EBITDA of $80M on sales of $1.5B in 2013.
- Abraaj has raised its bid for Bisco Misr to 80.58 EGP per share, announcing a $130M offer for the Egyptian cake and biscuit maker.
- The UAE investment company's initial bid of 73 EGP per share earlier this month was topped this morning by Kellogg's (K -0.5%) offer of 79 EGP/share.
- Previously: Kellogg makes offer for Egypt's Bisco Misr
- Smith & Wesson (NASDAQ:SWHC) agrees to acquire hunting and shooting accessories provider Battenfeld Technologies for $130M.
- SWHC expects the deal to be accretive to gross margins, EPS and cash generated in FY 2016, which begins May 1, 2015.
- Battenfeld develops and sells shooting, reloading, gunsmithing and gun cleaning supplies.
6:40 AM| 1 Comment
- Deutsche Telekom (OTCQX:DTEGY) and Orange (NYSE:ORAN) have confirmed that they are in talks to sell their U.K. wireless carrier EE to BT (NYSE:BT), in a move that could combine the U.K.’s biggest fixed-line operator and largest mobile operator.
- The news comes after Monday's report that BT was in talks to buy EE or Telefonica’s (NYSE:TEF) U.K. mobile business O2.
- EE was valued at about $19B by its co-owners in October.