Welcome to the Industrial issue of M&A Daily
General Electric (GE) is selling its $3 billion industrial solutions unit next month. Potential suitors include private equity shops as well as strategic buyers such as ABB (ABB), Eaton (ETN), Siemens (OTCPK:SIEGY), and Schneider (OTCPK:SBGSY). Over 13,000 employees in 60 countries will be impacted.
Intelsat (I) and OneWeb are combining in a stock deal. SoftBank (OTCPK:SFTBY) is investing $1.7 billion in common and preferred shares of the combined company. Intelsat is working with Goldman (GS); OneWeb is working with PJT (PJT) and Barclays (BCS).
Tricon is buying Silver Bay (SBY) in a $760 million cash deal. SBY holders get $21.50 per share. Silver Bay is working with Goldman. Despite the two new Goldman deals, Morgan Stanley (MS) has slipped into the number one spot in the Dealogic M&A advisor rankings.
The EU approved the Siemens acquisition of Mentor (MENT).
All requisite applications have been filed for the China Oceanwide acquisition of Genworth (GNW). The $1.37 arb spread offers a 75% IRR if the deal closes by August.
Hewlett Packard Enterprise
The Lattice (LSCC) shareholder vote on the acquisition by Canyon Bridge is today. The $1.25 arb spread offers a 98% IRR if the deal closes by May.
The Lionbridge (LIOX) shareholder vote is today for the acquisition by HIG.
The preliminary proxy has been filed for the Home Point acquisition of Stonegate (SGM).
FelCor (FCH) management told Ashford Hospitality Trust (AHT) that a cash-heavy offer would be more attractive than an equity-heavy one. Land and Building Investment Management wants FelCor to review Ashford’s offer. The $0.69 arb spread offers a 14% IRR if a deal at the current offer price closes by October. More to come in future editions of M&A Daily…
Elsewhere on Seeking Alpha
Beyond Seeking Alpha
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- Notes on the Buffett letter
- Munger’s Most Important Concept
- My Draft Address to Congress for President Trump
Disclosure: I am/we are long HPE, LSCC.
I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. 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. We invest with a margin of safety by buying securities at discounts to their intrinsic value and unlocking that value through corporate events. To maximize returns for our investors, we reserve the right to make investment decisions regarding any security without notification except where notification is required by law. This post may contain affiliate links, consistent with the disclosure in such links. We manage diversified portfolios with a multi-year time horizon. Positions disclosed in articles may vary in sizing, hedges, and place within the capital structure. Disclosed ideas are related to a specific price, value, and time. If any of these attributes change, then the position might change (and probably will).
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