Thursday, August 21, 2014
- Some observers believe Pfizer (PFE -0.4%) will rekindle its bid for AstraZeneca (AZN +3%) by late 2014. The British firm rejected its ₤71B offer in May. Pfizer walked away despite being within 7% of the price AstraZeneca wanted.
- Under British takeover rules, the negotiations could restart as early as August 26 if AstraZeneca invites Pfizer back to the table. Pfizer cannot initiate discussions until November 26. The rules also allow Pfizer to make a single offer via private phone call to AstraZeneca but this option is rarely used because the process stops if the target says no.
- It all depends on Ian Read's enthusiasm for a higher bid. This may be unlikely considering what happened in May.
- Aviation site RGN states "Wall Street is now buzzing that Verizon might be studying a potential joint venture, acquisition or partnership" with GOGO.
- Verizon archrival AT&T announced plans in April to offer U.S. in-flight Wi-Fi services "as soon as late 2015;" Gogo tumbled on the news. Meanwhile, RGN has previously stated Gogo rival Row 44 is rumored to be on the block. Verizon exited the in-flight telecom services market after Gogo purchased spectrum in '06.
- Analyst Tim Farrar: "I think that an interest in Gogo would certainly make sense because life is getting increasingly difficult for standalone connectivity providers ... When you have the big boys coming in from the equipment side, the Panasonic and Honeywell-types of the world, and also the terrestrial connectivity side in terms of AT&T, you’ve got to pick your partners."
- 30% of Gogo's float was shorted as of July 31.
- Shares of Family Dollar (NYSE:FDO) are lower in early trading after the company confirms reports that is has rejected a $78.50-per-share offer from Dollar General.
- The company says it has antitrust concerns about the combination.
- The board has reaffirmed that it supports the company merging with Dollar Tree (NASDAQ:DLTR).
- Premarket: Dollar Tree -1.8%, Family Dollar -0.5%, Dollar General (NYSE:DG) -1.1%.
- Dollar General (NYSE:DG) states that Family Dollar (NYSE:FDO) CEO Howard Levine, ignored multiple requests to pursue a merger even prior to Dollar Tree's (NASDAQ:DLTR) $74.50-a-share offer.
- Rick Dreiling, CEO of Dollar General claims that Levine shrugged off the requests out of fear he would be forced to step down as CEO.
- Earlier this week, Family Dollar's board announced that it would review Dollar General's $78.50-a-share offer, but continued to recommend shareholders vote for its $74.50-a-share deal with Dollar Tree.