Tuesday, May 5, 2015
- Cogent Communications (NASDAQ:CCOI) joined Netflix today in calling for conditions on the proposed merger of AT&T (NYSE:T) and DirecTV (NASDAQ:DTV).
- Data carriers like Cogent (along with firms like Netflix) are focused on interchange issues, the fees that a broadband behemoth could collect for accepting Internet traffic -- and their opposition, or the nature of it, could be good news for the deal, says industry analyst Craig Moffett.
- The reason? The companies could be kingmakers by urging concessions, he says: They helped sink the Comcast-TWC deal, and now with AT&T/DirecTV, “two of the most ardent opponents are tacitly blessing the idea of the merger as long as there are appropriate conditions.”
- The two say that a combined AT&T/DirecTV with no restrictions will have a bigger incentive to stymie streaming entertainment.
- Pacific Rubiales Energy (OTCPK:PEGFF) has received a takeover offer by its biggest shareholder that values it at ~$6B including debt, Bloomberg reports.
- Mexican conglomerate Alfa and Harbour Energy are said to have made an all-cash offer that values Rubiales at ~C$6/share.
- Alfa’s interest in the company has been speculated ever since it disclosed a stake last year, which it built to 19% in October, just below the 20% threshold that would require a company to start a takeover bid in most cases under Canadian securities law.
5:28 PM| 8 Comments
- Bloomberg reports Microsoft (MSFT -1.2%) is "evaluating a bid" for Salesforce (CRM +4.8%) after Salesforce was approached by another potential suitor. Salesforce is reportedly working with two banks to determine a response.
- Bloomberg cautions Microsoft isn't currently in talks with the cloud CRM software giant, whose market cap stands at $49B. There was plenty of speculation Microsoft was the company that (per Bloomberg) recently approached Salesforce. SAP has denied being interested, and Oracle has suggested it isn't. A source says Microsoft has "long expected it might compete for Salesforce if it was for sale."
- Salesforce has jumped on the report. If Microsoft pursues a bid, activist ValueAct Capital (has a board seat) might raise objections.
- The report comes as Microsoft announces a partnership with cloud ERP/HR/e-commerce software vendor NetSuite (N +3%) to integrate NetSuite's apps with Office 365 apps and Azure services, and to make Azure NetSuite's "preferred cloud infrastructure platform." Microsoft struck an Office 365-focused partnership with Salesforce last year. NetSuite has received a lift from Bloomberg's report.
- Harris (HRS -1.6%) expects to win antitrust approval for its planned acquisition of Exelis(XLS -0.6%) without having to make any asset disposals and still anticipates the $4.6B deal to close in June.
- The remaining stumbling block is its ownership of intellectual property related to a planned Army radio upgrade, Chief Executive Bill Brown said on a post-earnings call. The company is confident it will resolve the issue.
- Earlier: More on Harris' FQ3 (May. 05 2015)
- Earlie: Harris beats by $0.07, misses on revenue (May. 05 2015)
- KapStone Paper and Packaging KS acquires Victory Packaging for $615M in cash.
- The deal terms call for payouts of another $45M if certain terms are met over the next four years.
- The company says a $100M tax benefit associated with the acquisition will lower the net purchase price to $515M.
- Previously: KapStone misses by $0.11, misses on revenue
- Previously: Volume down in Q1 for KapStone Paper and Packaging
- Mondelez International (NASDAQ:MDLZ) and D.E. Master Blenders (OTC:DEMBF) land conditional approval from the European Commission on their proposed merger after agreeing to divest a few brands in certain regions.
- The newly-created Jacobs Douwe Egberts is expected to strike revenue of more than €5B ($5.56B).
- Pierre Laubies will be the pure play coffee company's CEO.
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