The purchase gives Frontier 875K voice, 415K data, and 215K video connections, and 2.5K employees. Frontier respectively had 1.93M and 393K broadband and video subs, and 13.9K employees, at the end of Q2.
Frontier has promised to invest $63M over the next three years to expand U-verse service coverage and increase broadband speeds in the state. The telco predicts it will "realize significant cost savings from leveraging its current infrastructure in supporting the new Connecticut business operations."
The FTreports P-E firms Bain and Apax Partners are weighing offers for Portugal Telecom (PT +3.7%). Both PT and merger partner Oi (OIBR +6.1%) are rallying in early trading.
French cable giant Altice has also been reported have interest in acquiring PT, and thus undoing the Oi merger. Shares of both companies have cratered this year, thanks in part to the Rioforte debt scandal.
Pfizer's (NYSE:PFE) announcement yesterday of an $10B stock repurchase plan deflates expectations that it will make another run at AstraZeneca (NYSE:AZN). Under British takeover rules, it could do so in November. In any event, the change in U.S. tax regulations making inversions less attractive makes a mega-deal like this unlikely.
Digital River (NASDAQ:DRIV) has entered into a definitive merger agreement to be acquired by an investor group led by Siris Capital in a transaction valued at approximately $840M.
Under the terms of the deal, Siris will acquire all of the outstanding common shares of Digital River for $26.00 per share in cash, representing a premium of approximately 50% over yesterday's closing price.
The agreement will also allow Digital River to solicit alternative acquisition proposals from third parties during a 45-day "go-shop" period, following the date of execution of the merger agreement.
Celgene (CELG +5.9%) likes its partnership with privately-held Sutro Biopharma so much that is has inked another deal with the antibody-based therapeutics developer. Under the terms of the agreement, Sutro receives a upfront payment of $95M that includes an equity stake, $90M during the research phase and potentially more than $1B, including milestones.
Celgene also has an option to buy Sutro under undisclosed terms.
The partners will work on PD-1 and PD-L1 inhibitors, the most promising cancer immunotherapy area. Sutro's value proposition is a better way to build antibody-drug conjugates that are more selective in their binding targets. Its technology enables a simpler method of making biologics, more akin to small molecule drugs.
Though it rejected Iliad's overtures, Deutsche Telekom (OTCQX:DTEGY) is still trying to find a suitor for T-Mobile USA (TMUS +2.7%), Germany's Manager Magazinreports.
The magazine speculates America Movil (AMX +0.8%), which no longer counts AT&T as an investor, could make a bid. For now, Carlos Slim's carrier only operates in the U.S. through its TracFone Wireless prepaid MVNO.
AMX is also about to get a windfall from the sale of Mexican assets being unloaded to appease regulators.
Emcore's (NASDAQ:EMKR) is selling its tunable laser and transceiver optical component businesses to NeoPhotonics (NYSE:NPTN) for $17.5M - $1.5M in cash and a $16M promissory note. The deal is expected to close in early January 2015.
The businesses accounted for 25% of Emcore's FY14 (ended Sep. '14) revenue. Emcore notes the product lines being sold haven't historically been profitable.
NeoPhotonics: "EMCORE's narrow linewidth tunable laser product line is highly complementary to our broad existing portfolio of optical components for [100G] coherent transport systems ... EMCORE's External Cavity Laser tunable laser has the narrowest linewidth in the industry, which we believe will become increasingly important for advanced modulation schemes at 400G and beyond."
DaVita HealthCare Partners (DVA +1.2%) acquires Colorado Springs Health Partners (CSHP) for an undisclosed sum. CSHP is a multi-specialty medical group with more than 100 doctors at 11 locations throughout the Pikes Peak region. The transaction is expected to close this quarter.
Railroad stocks were hammered today after some executives threw cold water on the idea that the railroad industry is ripe for consolidation.
Norfolk Southern (NYSE:NSC) CEO said during today's earnings conference call that he thinks a major merger would be “highly problematic,” since in the past they have led to "significant service problems for some period of time" and potential cost savings such as overlapping routes do not exist as much anymore.
Yesterday, Canadian Pacific (NYSE:CP) CEO Hunter Harrison confirmed that talks with CSXfell apart after several meetings because they couldn't agree on key issues, and added that a deal with Kansas City Southern (NYSE:KSU) is unlikely because the stock is expensive.
Sources tell dealReporter Riverbed (RVBD +2.6%) plans to contact potential buyers next week. Shares have spiked higher after previously trading near breakeven.
The WAN optimization hardware leader announced on Oct. 9 (along with a Q3 warning and job cuts) it would explore strategic and financial alternatives," as long sought by Elliott Management. Q3 results arrive tomorrow.
Fresenius Medical Care (FMS -0.2%) acquires National Cardiovascular Partners (NCP) for an undisclosed sum. The company expects the acquisition to add more than $200M to the top line in 2015 and be accretive to earnings in the first year after closing.
NCP is a leading operator of endovascular, vascular and cardiovascular services in the outpatient setting. It partners with over 200 doctors in 21 outpatient vascular centers in six states.