Tyco (TYC) is coming back to the S&P 500 after the index reconsidered its policy of removing companies that incorporate outside the U.S. It's replacing Smith International (SII) after the close of trading on Aug. 26, around the same time Smith will be acquired by Schlumberger (SLB).
The proposed merger of Schlumberger (SLB +1.9%) and Smith International (SII +1.9%) will get a second look by the Justice Department, ensuring several more months of scrutiny. The companies had expected the deal to close in the second half of this year.
UBS (UBS) rose to No. 3 in U.S. deal adviser rankings in Q1, from No. 11 a year ago. In dollar value, UBS advised on $51B in deals, vs. just $4.8B a year earlier. The growth was driven by UBS bagging two big deals: the ongoing auction of General Growth Properties (GGP) and Schlumberger's (SLB) acquisition of Smith International (SII).
Schlumberger's (SLB -4.6%) acquisition of Smith International (SII +7.8%) shows that the M&A logjam may be breaking up. But analysts are divided about whether the $11B price tag, which was higher than some expected, is too much.
Schlumberger (SLB) will buy Smith International (SII) for $11.34B in stock. Based on the closing prices for both companies on Thursday, before rumors of the deal surfaced, the deal values Smith at $45.84/share, a 37.5% premium. Smith shareholders will own 12.8% of the combo.
Schlumberger (SLB) is said to be in advanced talks to acquire Smith International (SII) in a deal that could be worth around $9B and would create an oil-services behemoth. An announcement is possible in the coming days.
Global drilling fluids leader Smith International (SII) says it may spend $400M-450M on five to seven acquisitions by the middle of the first quarter. Last month the company closed on a public offering of 28M shares to be used for possible purchases and debt service.
David White+ FollowFollowing- Unfollow|Send Message22 Feb 2010
Gold down slightly. Oil up slightly. USD Index down. Could make for a very mixed day. SLB and SIIM&A may buoy markets.
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John Mylant+ FollowFollowing- Unfollow|Send Message17 Nov 2009
I said (SII) would go down this morning,watch for a PUT OPTION play. It dropped 12.48% did you make money? http://bit.ly/GyiNm/
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Smith International, Inc. is a leading global provider of premium products and services used during the drilling, completion and production phases of oil and natural gas exploration and development activities. As used herein, “Smith,” the “Company,” “we,” “our” and “us” may refer to Smith...More