Johnson Controls Escapes From America

| About: Tyco International (TYC)


… But this time for a tax inversion.

VMware cuts costs.

AIG responds to activists with a new plan.

Welcome to the $6,000 shower curtain issue of M&A Daily.


Former Tyco CEO Dennis Kozlowski

Johnson Controls (NYSE:JCI) will acquire Tyco (NYSE:TYC) in a $29 billion cash and stock inversion. Tyco will do a reverse stock split so its holder get 0.9550 shares for each share owned. Johnson Controls holders get one share of the combined company or $34.88 in cash per share.

Baker Hughes

Halliburton (NYSE:HAL) remains committed to its merger with Baker Hughes (BHI). They are still discussing it the antitrust regulators. Halliburton management recently offered an improved divestiture package to fix regulatory concerns. The $11.35 net arbitrage spread offers a 71% return if the deal closes by June.


EU antitrust regulators will clear the Schlumberger (NYSE:SLB) acquisition of Cameron (NYSE:CAM) without conditions.


The final proxy has been filed for the Air Liquide (OTCPK:AIQUY) acquisition of Airgas (ARG).


The definitive proxy has been filed for the SunEdison (SUNE) acquisition of Vivint (NYSE:VSLR).

First Niagara

The second amendment to the S-4 has been filed for the KeyCorp (NYSE:KEY) acquisition of First Niagara (NASDAQ:FNFG).

Plum Creek

Institutional Shareholder Services recommends that Plum Creek (NYSE:PCL) shareholders approve the merger with Weyerhaeuser (NYSE:WY).


VMware (NYSE:VMW) will cut about nine hundred jobs in a restructuring plan to help cut costs and improve the prospects of the Dell acquisition of EMC (EMC).

Health Net

In the California DOI hearing on the Centene (NYSE:CNC) acquisition of Health Net (NYSE:HNT), the Consumer Watchdog is pressuring the DOI to demand expensive consumer protections. The $0.46 net arbitrage spread offers a 9% annual return if the deal closes by March.


Dow (NYSE:DOW) and du Pont (NYSE:DD) executives met with Iowa political leaders including the governor to discuss moving the headquarters for their new agricultural business to the state. The business will be spun-off as part of their transaction.

American International Group

American International Group (NYSE:AIG) plans to separate its troubled assets from the rest of the company. More to come in future editions of M&A Daily

Elsewhere on Seeking Alpha

Disclosure: I am/we are long BHI, EMC, AIG.

I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Additional disclosure: Chris DeMuth Jr and Andrew Walker are portfolio managers at Rangeley Capital. Rangeley invests with a margin of safety by buying securities at deep discounts to their intrinsic value and unlocking that value through corporate events. In order to maximize total returns for our investors, we reserve the right to make investment decisions regarding any security without further notification except where such notification is required by law.

Editor's Note: This article discusses one or more securities that do not trade on a major U.S. exchange. Please be aware of the risks associated with these stocks.

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