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Merger & Acquisition Activity Sparks Confidence; Deals Top $175 Billion In August


Global merger activity is at its highest levels since late 2009, presenting a glimmer of economic confidence even as the stock and bond markets continue to price in a weakening U.S. economy, writes the Wall Street Journal. Here's a look back at the deals that helped M&A activity top $175 Billion this month. The deals are sorted by date, in sequential order.

Wednesday, August 4th, 2010

  • Regional airline operator SkyWest Inc. (NASDAQ:SKYW) reveals on Wednesday that its Atlantic Southeast subsidiary will acquire ExpressJet Holdings Inc. (XJT) for $133 million in cash or $6.75 a share, to help better align operations with two of its biggest customers.

Friday, August 13th, 2010

  • I.B.M. (NYSE:IBM) said Friday that it had agreed to buy Unica (UNCA), a seller of marketing software, for $451.7 million in cash or $21 a share. The deal marks the latest in a string of bolt-on acquisitions for the tech services giant.
  • The Blackstone Group reported Friday it will take Dynegy Inc. (NYSE:DYN) private for $4.50 a share in cash in a deal valued at $4.7 billion, including debt. Houston-based oil field equipment firm Allis-Chalmers Energy Inc. (ALY) agrees to be bought by Norway-listed Seawell in a deal valued at $890 million.

Monday, August 16th, 2010

  • Brazilian airline Tam SA (NYSE:TAM) enters into a merger agreement with Chile's Lan Airlines (LFL) late Friday. The deal is worth a reported $11.5 billion at [then] current market prices.
  • ResCare, Inc. (RSCR) announced that it had received a proposal from Onex Corporation to be acquired for $12.60 per share or $370 million. Dell Inc.
  • (DELL) agrees to buy 3Par Inc. (NYSE:PAR) in an all-cash deal valued at approximately $1.15 billion. Fremont, California-based 3Par, maker of high-efficiency IT storage systems, would be acquired at $18 a share.

Tuesday, August 17th, 2010

  • Phoenix Technologies Ltd. (PTEC), the Milpitas, California, provider of core-systems software, definitively agrees to be acquired by Marlin EquityPartners for $3.85 a share, or $139 million.
  • Potash Corporation of Saskatchewan Inc. (POT) said Tuesday that its board has unanimously rejected an unsolicited takeover bid from mining giant BHP Billiton Ltd. (NYSE:BHP). BHP had proposed to acquire Potash Corp. for $130 per share in cash. The board of Potash decided the offer is "grossly inadequate" and undervalues the company.
  • Medtronic Inc. (NYSE:MDT) signs an agreement to acquire Eatontown, N.J.-based Osteotech Inc. (OSTE) for an estimated $123 million.
  • Reynolds Group reveals on Tuesday that it will pay about $4.4 billion for Hefty bag maker Pactiv (PTV). Including debt, the acquisition is valued at around $6 billion.

Thursday August 19th, 2010

  • Intel (NASDAQ:INTC) reveals $7.67 billion all-cash bid for security technology firm McAfee (MFE).
  • First Niagara Financial Group Inc. (NASDAQ:FNFG) reports that it will buy NewAlliance Bancshares Inc. (NYSE:NAL) for $1.5 billion.

Source: WSJ


Disclosure: No position