HP (NYSE:HPQ) is getting a lot bigger. The personal computer and printing giant is buying Samsung's (OTC:SSNLF) printing business for $1.05B, in a move that will give it 6,000 new employees, thousands of new technology patents and a bigger presence in Asia.
The acquisition is expected to add to HP's earnings in its full year after closing.
Samsung will also buy $100M-$300M worth of HP shares on the open market once the deal is through.
With the possibility of a Qualcomm (NASDAQ:QCOM) split afloat, an interesting piece of analysis has surfaced on Wall Street, pointing towards Intel (NASDAQ:INTC) as the best possible beau if the firm decides to break itself up.
"The chip deal to end all chip deals," said Cowen analyst Timothy Arcuri.
Other suitors for Qualcomm's chip business, valued at $30B-$40B, could include a consortium backed by the Chinese government and Samsung Electronics (OTC:SSNLF).
A South Korean court has rejected an appeal from activist fund Elliott Associates to block the merger of two Samsung group companies - Cheil Industries and Samsung C&T - saying that the proposed deal did not represent an illegal transfer of value to investors.
The deal would allow the heirs of patriarch Lee Kun-hee, who remains hospitalized since a May 2014 heart attack, to consolidate stakes in affiliates like smartphone maker Samsung Electronics (OTC:SSNLF) and keep control of the Samsung group.
Elliott, which has a 7.1% stake in Samsung C&T, argued the merger should be ruled invalid because it undervalued the company.
Samsung Group has announced the merger of two major affiliates, as it reconstructs itself to smooth the path for management succession within the founding Lee family.
The all stock deal, approved by the boards of both firms, would see Samsung's de facto holding company Cheil Industries acquire building firm Samsung C&T (which has a key stake in Samsung Electronics (OTC:SSNLF)) for 8.9T won ($8.1B).
"Dividends and other forms of shareholder returns are responsibilities that the company has for shareholders, so we will make efforts to meet them. But our primary objective is growth," said Robert Yi, Samsung Electronics' (OTC:SSNLF) head of investor relations.
While investors were cheered this year by Samsung's 40% dividend boost and its first share buyback since 2007, the tech giant is looking to use its $56B cash pile to fund growth in 2015, including acquisitions.
The SEC and the Ontario Securities Commission are investigating whether a recent Reuters report about a possible $7.5B purchase of BlackBerry (NASDAQ:BBRY) by Samsung Electronics (OTC:SSNLF) was sparked by investor intent on pumping the Canadian smartphone maker’s stock.
BlackBerry shares, which closed on Jan. 13 at $9.71, shot up 30% on the news to close at $12.60 on Jan. 14, its biggest one-day gain in years.
Shortly after the rumor, both companies denied holding talks for such a deal.
Though both companies have issued statements denying M&A talks, Samsung (OTC:SSNLF) is "actively pursuing a plan to take over or buy a significant stake in BlackBerry (NASDAQ:BBRY)," Canada's Financial Postreports.
The paper has obtained a document prepped for Samsung by i-bank Evercore that "outlines the case for, and the potential structure of a possible purchase of BlackBerry." Though the doc was created in Q4 2014, a source says Samsung remains interested. “I can tell you Samsung is contemplating a purchase. It’s still being pursued right now. Samsung is still evaluating their options."
BlackBerry soared a week ago after Reuters reported Samsung had proposed buying the company for a price between $13.35-$15.49/share. Shares quickly gave back most of their gains after BlackBerry denied having talked with Samsung about a buyout offer. Samsung later provided its own denial.
In response to Reuters' report, BlackBerry (NASDAQ:BBRY) says it "has not engaged in discussions with Samsung (OTC:SSNLF) with respect to any possible offer to purchase BlackBerry."
BBRY -11.2% AH. Shares are still up 15% from yesterday's close.
Update: The Globe and Mailreports BlackBerry has "shunned a handful of takeover overtures in recent months as its board of directors and largest investor continues to support a restructuring strategy that they expect will deliver greater shareholder value than current acquisition offers."
Samsung (OTC:SSNLF) proposed acquiring BlackBerry (BBRY +29.8%) for a price between $13.35-$15.49/share, according to a Reuters source. BlackBerry closed yesterday at $9.71, and has closed today at $12.60. Shares are up another 3.2% AH to $13.02.
According to documents, Samsung's proposed acquisition range implies an enterprise value of $6B-$7.5B, after factoring $1.25B in convertible debt. Execs from both companies reportedly met last week.
Reuters states Samsung is interested in BlackBerry's patent portfolio. BlackBerry could also mesh with Samsung's efforts to grow its enterprise presence, strengthen its embedded/IoT offerings, and (though this is easier said than done) lower its Google dependence. The companies announced a BES12-focused enterprise partnership in November.
Previously: Samsung reportedly approached BlackBerry about acquisition
Update: BlackBerry denies having talked with Samsung about a buyout offer.
In yet another round of Samsung restructuring, Samsung Electronics (OTC:SSNLF, OTC:SSNGY) says it will consider acquiring the shares of unlisted medical equipment maker Samsung Medison that it does not currently own.
Samsung Electronics currently holds a 68.5% stake in Samsung Medison, which has a book value of about 478B won ($472M).
Samsung's restructuring has accelerated since the May hospitalization of the group's chairman Lee Kun-hee, and has sparked investor speculation to the group's succession.