Special Situations and Arbs • 13 Comments
Jun. 9, 2015, 8:55 PM
- GE's $12B deal to sell its U.S. private-equity lending business to Canada Pension Plan Investment Board is just the beginning of its plan to shed ~$200B of GE Capital assets - and a whole lot of cash to spend on takeovers.
- Although GE may not make a move right away as it tries to complete the $14B purchase of most of Alstom’s energy business, Bloomberg figures it could amass a $40B war chest for takeovers.
- Among speculated targets: Pentair (NYSE:PNR), a provider of water pumps and filtration systems; Flowserve (NYSE:FLS), a maker of industrial pumps and valves; electrical components manufacturer Hubbell (HUB.A, HUB.B); life sciences equipment maker Bio-Rad Laboratories (NYSE:BIO); and some of the assets Halliburton (NYSE:HAL) and Baker Hughes (NYSE:BHI) will divest as part of their merger.
- Whatever the target, acquisitions likely will be part of GE’s transformation after asset sales and returning capital to shareholders.
May 21, 2012, 10:32 AM
Eaton (ETN +1%) is paying about 14X EBITDA for Cooper (CBE +26%), Bloomberg calculates, in a deal that Eaton shareholder CAIM calls "pretty amazing," as "they're going to dominate that electrical power equipment segment," especially when the economy improves. The purchase is also sending shares of Hubbell (HUB.A) +6.3% and Accuity (AYI +5.4%).| May 21, 2012, 10:32 AM