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  • Today - Friday, October 31, 2014

  • 10:14 AM
    • 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.
    | Comment!
  • 8:27 AM
    • Danone (OTCQX:DANOY) nabs a 25% stake in Chinese firm Yashili International Holdings.
    • The acquisition of the milk powder maker was struck at a deal price of $566M.
    • The company says the investment will help it expand in the infant milk business in China.
    | Comment!
  • 8:18 AM
    • 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.
    • Conference call at 8 ET
    • Source: Press Release
    | Comment!
  • 7:56 AM
    • 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.
    • Conference call at 8:30 ET
  • 6:18 AM
    | 1 Comment
  • Thursday, October 30, 2014

  • 6:55 PM
    • Groupon (NASDAQ:GRPN) discloses it has hired advisers to explore strategic options for its Asian ops, including Korean deals site/marketplace Ticket Monster (acquired last year for $260M).
    • "There are certain countries where we’d benefit from a partner," says CEO Eric Lefkofsky. The company insists it's not looking to sell all of Ticket Monster.
    • With Ticket Monster providing a boost, Groupon's Rest of World segment saw billings rise 154.8% Y/Y in Q3 to $597M, and revenue rise 25.8% to $108.5M. The segment claims 14.3M active customers.
    • Shares have turned positive. They were initially down slightly following Groupon's Q3 beat and light Q4 outlook.
    • Results/guidance, details.
  • 1:49 PM
    • 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.
    | Comment!
  • 9:36 AM
    • Bloomberg reports Perrigo (PRGO +1.2%) is in "exclusive talks" to buy Belgian over-the-counter drugmaker Omega Pharma, and that a deal could be reached soon.
    • Omega was previously reported to be on the block back in August. Bloomberg's sources state the company could be sold for over €4B ($5B).
    | Comment!
  • 9:24 AM
    • Lenovo's (OTCPK:LNVGF) $2.91B purchase of Motorola Mobility from Google is on the books.
    • 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.
  • 9:23 AM
    • 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.
    | 1 Comment
  • 7:00 AM
    • Holcim (OTCPK:HCMLY) no longer plans to form a joint organization with Cemex (NYSE:CX) in Spain due to its merger plan with Lafarge (OTCPK:LFRGY).
    • Lafarge and Holcim formally notified the European Commission of their plan to create the world's largest cement group with $44B in yearly sales on Tuesday.
    • Cemex will instead take over two of Holcim's cement operations in Spain for €45M euros ($56.7M) in cash.
    | Comment!
  • Wednesday, October 29, 2014

  • 4:19 AM
    • 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.
    | Comment!
  • Tuesday, October 28, 2014

  • 5:27 PM
    • 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.
    • Earlier: Q3 earnings
    | 1 Comment
  • 4:49 PM
    • Engility Holdings (NYSE:EGL) agrees to acquire privately-held TASC, a provider of professional services, for ~$1.1B, including the assumption of $613M in debt.
    • EGL, a provider of skilled personnel services to the Defense Department, Justice Department and other government entities, says the combined company would generate revenue of ~$2.5B in 2014.
    • TASC stockholders will receive 18.9M EGL shares, or ~51% ownership stake in the combined company; EGL shareholders will receive a special cash dividend of ~$11.40/share for each share they own.
    • EGL +4.2% AH.
    | Comment!
  • 3:54 PM
    • (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.
    | Comment!
  • 1:36 PM
    • Colgate-Palmolive (CL -0.5%) has bought Laser Brands Toothpaste for close to $100M, sources tell the WSJ.
    • The toothpaste maker is located in Myanmar.
    • Terms of the deal haven't been disclosed by the company.
    | Comment!
  • 1:26 PM
    • 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.
    | Comment!
  • 10:57 AM
    • 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.
    | Comment!
  • 9:24 AM
    • 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.
    • NQ +0.9% premarket to $9.51.
  • 8:13 AM
    • Tornier N.V. (NASDAQ:TRNX) is up 24% premarket on light volume in response to the announcement of its merger with Wright Medical Group.
    | Comment!
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