M&A

Hi All...

I am starting this new thread, where I will keep try to keep updating on some BIG mergers/acquisitions deals that are taking place globally & some not so Big Indian deals also. I dunno if this is the right place to start this thread. Mods do let me know if there's any prob.

Lets start with most recent.

Ferrovial's agreed takeover of BAA

BAA agrees to Ferrovial takeover
Airports operator BAA has confirmed its support for a takeover by Spanish building group Ferrovial.
BAA, which runs seven UK airports, has agreed to an offer of 950.25 pence a share offer, valuing it at £10.3bn.

Ferrovial beat off competition from a consortium led by US bank Goldman Sachs, which said it had made an offer worth a total of 955.25p a share.

Goldman Sachs urged shareholders "to take no action" and promised a further announcement "in due course".

On Tuesday, the Takeover Panel extended the deadline for a bid from the Goldman Sachs consortium to 16 June.

Update: Goldman gives up BAA takeover bid
US investment bank Goldman Sachs has announced that it will no longer proceed with a takeover bid for UK airports operator BAA.
Its comments came after BAA said it "ceased" talks with the Goldman Sachs.

The news appears to leave Spain's Grupo Ferrovial free to complete its £10bn ($18bn) takeover of BAA, which has been backed by the UK firm's board.

The UK Takeover Panel had given Goldman Sachs until June 16 to make a rival offer for BAA or withdraw its interest.

Airports have become an attractive investment target because of the surge in air travel worldwide.


Cheers!
 

shrijit_s

Par 100 posts (V.I.P)
This is an update on Mittal's offer for Arcelor. Arcelor has again rejected the offer and is expecting a better offer. This is atleast an improved position by Arcelor. Initially it did not even want to discuss the matter with Mittal Steel. Lets c how this saga ends

Arcelor Rejects Mittal Offer, Expects Improved Bid
June 12 (Bloomberg) -- Arcelor SA, the world's second- largest steelmaker, said it rejected a revised offer by hostile suitor Mittal Steel Co. and will meet Mittal again to discuss the prospect of a higher bid.

Mittal indicated it may further improve its proposal, Luxembourg-based Arcelor said in an e-mailed statement today. The companies met for face-to-face talks on June 8, the first since Rotterdam-based Mittal announced its initial offer Jan. 27. Mittal declined to comment today other than to say its bid still offers ``superior value'' and is the ``best combination.''

Arcelor, led by Chief Executive Officer Guy Dolle, last month agreed to buy most of OAO Severstal, Russia's No. 3 steelmaker, in a 13 billion-euro transaction that values itself at 44 euros a share. The deal would give Russia's Alexei Mordashov up to 38 percent of the combined company. Billionaire Lakshmi Mittal is seeking to convince Arcelor's investors to accept his offer instead.

``If Mittal wants Arcelor it will have to pay 44 euros,'' said Frederic Plisson, a fund manager with Financiere de l'Echiquier in Paris, which oversees $1.9 billion in assets including Arcelor shares.

Shares of Arcelor rose 35 cents, or 1 percent, to 34.05 euros as of 10:02 in Paris. Mittal's shares dropped 19 cents, or 0.8 percent, to 24.05 euros in Amsterdam.

No New Meeting

Arcelor ruled out calling a new meeting requested by some shareholders that would allow them to block the Severstal deal with a two-thirds majority. It would have given a ``fraction'' of them the ``right to eliminate'' it, Arcelor said today.

An investor meeting to be held June 30 will require at least 50 percent of the company's entire shareholder base to travel to Luxembourg or send a representative if they want to reject it, Arcelor said.

Last week's meeting between Arcelor and Mittal may signal that Arcelor is softening its stance, billionaire Wilbur Ross, a director at Mittal, said in an interview June 9.

Mittal's offer closes July 5 to Arcelor shareholders in Belgium, France, Luxembourg, Spain and the U.S. Mittal on May 19 sweetened the cash-and stock offer for Arcelor by 34 percent.
 

shrijit_s

Par 100 posts (V.I.P)
Credit Agricole Offers to Buy Greece's Emporiki Bank

June 13 (Bloomberg) -- Credit Agricole SA, France's largest bank, offered to buy Emporiki Bank SA for about 2.8 billion euros ($3.5 billion) in cash to expand in Greece, where the economy is growing three times faster than its home market.

Credit Agricole bid 23.50 euros for each Emporiki share, or 0.3 percent more than the June 9 closing price, the Paris-based lender said today. The French bank already owns 8.9 percent of Emporiki and the offer values the entire company at 3.1 billion euros.

``The deal is excellent for the growth outlook,'' said Alain Tchibozo, an analyst at ING Groep NV in Paris, who has a ``buy'' recommendation on the French bank's stock. ``Agricole used to suffer from low growth potential as its retail unit is mainly settled in mature markets. Greece will add some growth potential.''

Credit Agricole Chief Executive Officer Georges Pauget said last month the company had more than 5 billion euros to expand abroad and was looking for a ``large'' purchase. The bank joins competitors such as Dexia SA and Societe Generale SA in expanding into faster-growing countries such as Greece, Turkey, and Russia. Credit Agricole says it's also still considering a bid for U.K. mortgage lender Alliance & Leicester Plc.

Credit Agricole shares fell 92 cents, or 3.4 percent, to 26.72 euros as of 2:11 p.m. in Paris, leaving the gain this year at less than 1 percent. Emporiki shares rose 1.16 euros, or 5 percent, to 24.60 euros in Athens.

``The fact there's no premium leaves room for potential other bidders and that's moving the share price higher,'' said George Satlas, a fund manager at Diethniki SA in Athens, which has more than 6 billion euros under management.
 

shrijit_s

Par 100 posts (V.I.P)
This is also an hostile offer made by Bayer for Schering AG.

Bayer Raises Schering Stake, Prepares New Offer

June 14 (Bloomberg) -- Bayer AG is preparing a new bid for Schering AG after German rival Merck KGaA derailed its first attempt to buy the world's largest maker of birth-control pills for 16.5 billion euros ($20.8 billion).

Bayer bought the shares held by German insurer Allianz AG, bringing its Schering holding above the 30 percent threshold that triggers an offer to all investors, the Leverkusen, Germany-based company said today in a statement to the stock exchange.

Merck has built up a 21.8 percent stake in Berlin-based Schering, forcing Bayer to pay 88 euros a share on the open market to support its offer, which expires tonight. Bayer earlier this year outbid Merck to win Schering and become Germany's largest drugmaker by adding the best-selling multiple sclerosis treatment and Yasmin birth control pills.

``We're ready for the second round,'' Bayer Chief Executive Officer Werner Wenning said in the statement. ``We will do everything we can to clarify the situation as quickly as possible and prevent Merck's tactics from harming the future development'' of Schering.

Merck spokesman Steffen Mueller declined to comment. Schering Chief Executive Officer Hubertus Erlen backs Bayer and has called on Merck to explain its plans. The Darmstadt, Germany- based drugmaker doesn't have to spell out its intentions under German stock exchange rules.

``They have to sit down at a table to solve this,'' Ludger Mues, an analyst at Sal Oppenheim in Cologne, said in an interview.

Share Holdings

Bayer's offer of 86 euros a share accepted by Schering's board in March, beating a 77 euro offer from Merck.

Merck bought 2.1 million Schering shares yesterday, the company said in a regulatory filing. Schering investors with 29.77 percent of the company pledged to bring their shares to Bayer, down from 36.78 percent 24 hours earlier.

Shares of Bayer have declined 11 percent since June 8, when Merck said it had a 6 percent stake in Schering. Bayer shares rose 21 cents, or 0.7 percent, to 30.77 euros at 9:10 a.m. in Frankfurt, while Merck shares rose 90 cents, or 1.3 percent, to 69.35 euros. Schering shares rose to 88.33 euros, above the offer price.

The spread on Bayer bonds widened. The extra yield investors demand to hold Bayer's 6 percent euro-denominated bond due in 2012 instead of government bond widened to 70 basis points, according to RBC Capital. This is more than the 68 basis points the spread hit when Standard & Poor's put the company on credit watch for downgrade on March 24 of this year.

In Talks?

Merck is in talks with Bayer to sell its stake, which would raise the cost of the offer by about 1.1 billion euros for Bayer, Die Welt reported without saying where it got the information.

Deutsche Bank is advising Merck, while Morgan Stanley and Dresdner Kleinwort Wasserstein are advising Schering. Bayer is being advised by Credit Suisse and Greenhill.

Bayer filed a lawsuit in New York yesterday alleging that Merck violated U.S. law by failing to publicly disclose that it was acquiring shares of Schering. The company asked U.S. District Judge Leonard Sand in Manhattan to block Merck from voting its shares of Schering and to force Merck to divest its stake.
 

shrijit_s

Par 100 posts (V.I.P)
Nokia, Siemens to Merge Units to Take on Ericsson

June 19 (Bloomberg) -- Nokia Oyj and Siemens AG agreed to combine their telecommunications network-equipment units to close the gap with Ericsson AB in the $65 billion market for phone switches, routers and base stations.

The merger will create a company with annual sales of about 15.8 billion euros ($19.9 billion), equally owned by Espoo, Finland-based Nokia and Munich-based Siemens and named Nokia Siemens Networks, they said.

Shares of Siemens and Nokia, the world's largest mobile- phone maker, jumped after the companies said they'll eliminate as many as 9,000 jobs, or 15 percent of the combined workforce. The venture will have 21 percent of the wireless-equipment market, which may grow 8.8 percent next year, against 26 percent for market leader Ericsson AB, according to Credit Suisse Group. The German engineering company's chief executive officer, Klaus Kleinfeld, sold the handset unit last year.

``It's a good solution for Siemens and for the industry as a whole because it means less competition,'' said Michael Vieker, who manages about $460 million at Muenchener Kapitalanlage GmbH in Munich, including Siemens shares. ``There is too much capacity and we haven't seen any major consolidation so far because the players were too strong to go bankrupt.''

Nokia shares rose 47 cents, or 3 percent, to 16.12 euros in Helsinki today. Siemens jumped 6.7 percent to 66.99 euros in Frankfurt, the biggest gain since March 2003. The stock rose as much as 9.6 percent earlier today.
 

j_ritu

New member
hey Shrijit,
Thanks for this thread...could u plz keep us updated on the Arcelor-Mittal hostile bid??wonder whether the deal will finally come thru at all.....
 

shrijit_s

Par 100 posts (V.I.P)
j_ritu said:
hey Shrijit,
Thanks for this thread...could u plz keep us updated on the Arcelor-Mittal hostile bid??wonder whether the deal will finally come thru at all.....

Your wish is my command :big_grin:

as of now d latest update has already been posted...It does seem tat Arcelor has reduced its hostile stance slightly ..n it may well agree to d merger..provided tat Mittal Steel will increase its offer...

Cheers
 

shrijit_s

Par 100 posts (V.I.P)
Latest Update on the Mittal-Arcelor deal: It seems that finally Arcelor is relenting. Some rumours state that Arcelor's CEO Guy Dolle may recommend Mittal's offer to the board. Some say that Mittal will increase his bid. It seems the 5 month long saga may be reaching its climax soon.

Mittal Says It's Approaching Agreement With Arcelor (Update3)
June 23 (Bloomberg) -- Mittal Steel Co., the world's largest steelmaker, said it's approaching an agreement to buy Arcelor SA that would end a five-month struggle and lead to the biggest steel-industry merger.

The two companies will continue talks on Mittal's 24 billion-euro ($30 billion) offer today and tomorrow, Sudhir Maheshwari, Mittal's managing director for business development and treasury, said in an interview today. Luc Scheer, a spokesman for Arcelor in Luxembourg, declined to comment. Arcelor's board is scheduled to meet June 25.

``Talks are ongoing and constructive'' and some parts of the offer ``in principle have been agreed,'' Maheshwari said by mobile phone. Mittal is considering offering more stock or cash or both, the Wall Street Journal reported today, citing unidentified people familiar with the situation.

Arcelor Chief Executive Officer Guy Dolle, after months of resistance, is moving closer to Mittal as shareholders object to a defense strategy that includes an agreement to combine with Russia's OAO Severstal. Mittal wants to buy Arcelor to cut raw material costs and increase bargaining power with customers to create a steelmaker three times bigger than any rival.

``Now it's just a question of a little bit more money,'' said Frederic Plisson, a fund manager with Financiere de l'Echiquier in Paris, which oversees $1.9 billion in assets including Arcelor shares.

Shares of Mittal rose 30 cents to 26.29 euros at 10:57 a.m. in Amsterdam. Shares of Arcelor are suspended in Paris pending clarification on its talks with Mittal and Severstal.

Higher Offer

Based on Mittal's closing share price in Amsterdam yesterday, its offer is worth 36.04 euros per Arcelor share, according to Bloomberg calculations.

Mittal may increase its offer by 3 billion euros, the Financial Times said yesterday, citing unidentified people familiar with the deal. That would value each Arcelor share at 40.62 euros, according to Bloomberg calculations.

Dolle said in New York on June 20 he wants a higher offer from Mittal, signaling he may yet recommend an agreement. Arcelor has valued its accord with Severstal at 44 euros a share.

Mittal has already increased its offer, first made Jan. 27, by 34 percent. As part of the improved terms, billionaire Chairman Lakshmi Mittal agreed to eliminate his preferential voting rights in the combined company.

Arcelor, the world's second-biggest steelmaker, on May 25 recommended investors accept a deal with Severstal that would make Russian billionaire Alexei Mordashov the biggest shareholder in the new company. Mordashov on June 20 offered to cut his proposed stake in the combined company to 25 percent, from 32 percent previously, as investor opposition grew.

New Company

Mittal is now offering to give Arcelor shareholders more than half the new company's shares and keep Dolle as CEO, the Wall Street Journal reported today. Lakshmi Mittal would probably be chairman or president, according to the report.

According to the La Tribune, Joseph Kinsch will remain as chairman of the new company, with Lakshmi Mittal as co-chairman, until Kinsch, 73, retires in April 2007. La Tribune didn't say where it got the information.

Mittal needs Arcelor to control 10 percent of global steel production. If Arcelor merges with Severstal, it will replace Mittal as the world's biggest producer.
 

shrijit_s

Par 100 posts (V.I.P)
Hi All!!!

Some updates after a long time. I won't be posting again on Mittal-Arcelor, since there are already some posts on that. However, I will update on few large offers, which were announced in these last few days

First - Phelps Dodge's bid for Inco & Falconbridge for $ 40 Bn..

Phelps Dodge to Buy Inco, Falconbridge for $40 Bln
June 26 (Bloomberg) -- Phelps Dodge Corp. said it agreed to acquire Canadian nickel miners Inco Ltd. and Falconbridge Ltd. for $40 billion in the world's largest mining takeover.

Phelps Dodge will offer 0.672 of a Phelps Dodge share and C$17.50 in cash for each Inco share, the Phoenix, Arizona-based company said today in a PRNewswire statement. The offer will allow Inco to increase its previously agreed takeover offer for Falconbridge to C$62.11 a share, Phelps Dodge said. Phelps Dodge will also spend as much as $5 billion buying back stock.

Inco and Falconbridge have become takeover prizes as a three-year rally in metal prices increases values and earnings power. Nickel prices in London have climbed 42 percent since Jan. 1. Mining companies, flush with cash, are considering acquisitions to gain market share. Phelps Dodge, with mines in Arizona and New Mexico, stands to gain nickel production in Canada and copper in Chile.

``A lot of these guys are going to have even more cash this year, and are looking at deploying that cash,'' Tim Huff, an analyst in London at ABN Amro Holding NV, said in an interview before Phelps Dodge confirmed the deal today. ``It's a really smart move on the part of Phelps.''

The transaction was reported earlier today by the New York Times, Washington Post and Canada's National Post.
 

shrijit_s

Par 100 posts (V.I.P)

Johnson & Johnson to Buy Pfizer Unit for $16.6 Billion
Monday , June 26, 2006

NEW BRUNSWICK, N.J. — Health care products maker Johnson & Johnson (JNJ) said Monday it is buying the consumer health care unit of drug maker Pfizer (PFE) for $16.6 billion in cash.

The deal would give Johnson & Johnson brand names including Listerine, Nicorette, Visine, Sudafed and Neosporin as part of a unit whose reported sales totaled $3.9 billion in 2005.

Pfizer had been reviewing its strategic options for the division since February so it could focus on its prescription drug business.

J&J will also acquire the U.S. over-the-counter switch rights to the prescription antihistamine Zyrtec upon patent expiration. Its own brands already include Band-Aid, Tylenol and Neutrogena.

"This acquisition builds upon our broad base in health care products and our leadership objectives in the consumer, pharmaceutical and medical devices and diagnostics markets," Johnson & Johnson Chairman and Chief Executive William C. Weldon said in a statement.

The deal, which was approved by the boards of both companies and is subject to regulatory and shareholder approval, is expected to close by the end of 2006 and contribute to Johnson & Johnson's earnings in 2009.
 

shrijit_s

Par 100 posts (V.I.P)
and now its time for an Indian deal of decent size, which happened recently.


Tata Coffee acquires US co for $220 m
Sunday, 25 June , 2006, 11:59

Mumbai:The Tata Group today announced the acquisition of a US-based company for $220 million.

"Tata Coffee has acquired the US-based Eight O'Clock Company," a group spokesperson said.

The company informed the Bombay Stock Exchange that it has signed a definitive agreement to acquire the Eight 0'Clock Coffee Company (EOC), USA, from Gryphon Investors for a total acquisition price of $220 million.

EOC has over 100 years of brand history and retail coffee experience in the US and is a leading player in the branded whole bean segment and a category leader in the value gourmet segment in the US retail market.

Within the broad US retail coffee category, EOC is the third largest brand by volume behind Folgers and Maxwell House, the statement said.

EOC had net sales of $109 million and EBITDA of $27 million in 2005.

The acquisition provides a sizeable entry platform and an established brand to Tata Coffee in the $21 billion US coffee market, the company said. | Go to Sify Business Home page |

The acquisition which will be financed through a combination of equity and non-recourse debt will transform Tata Coffee from a regional coffee player in the Indian market to a significant global player with strong and powerful brands in the Indian and US coffee markets, it added.

This acquisition is in line with the company's objective to move up the value chain and become a leading and fully integrated player in the global coffee industry, Tata Coffee said.
 

shrijit_s

Par 100 posts (V.I.P)
Xstrata Raises Hostile Bid for Falconbridge by 7.2%

July 19 (Bloomberg) -- Xstrata Plc increased its hostile bid for Canadian nickel miner Falconbridge Ltd. by 7.2 percent to $16.3 billion to thwart Phelps Dodge Corp.'s plans for the mining industry's largest takeover.

Xstrata, the Zug, Switzerland-based producer of coal, zinc, copper and chrome, said in a statement that it will pay C$62.50 ($55.08) a share for the 80 percent of Falconbridge it doesn't already own. The company earlier offered C$59. Phelps Dodge, the world's third-largest copper producer, said its offer was ``best and final'' and a better deal for Falconbridge's investors.

Some investors say Xstrata's bid was a knockout blow. Shares of Phelps Dodge surged today on speculation the company will be worth more without the added debt and new stock needed for its deal, said Nancy Havens-Hasty, president of New York-based Havens Advisors LLC, which runs a $200 million hedge fund.

``People think that maybe Phelps Dodge isn't going to win,'' Havens-Hasty said.

Mining companies are battling for natural resource assets as China, the world's largest consumer of metals, drives copper, nickel and zinc to record levels. The price of nickel, used in stainless steel production, has more than tripled in the past three years.

Toronto-based Falconbridge said in a statement it is reviewing the details of Xstrata's new offer.

Phelps Dodge, based in Phoenix, on July 16 raised its friendly offer for Toronto-based Inco Ltd. and Falconbridge, now valued at about C$43.5 billion in cash and stock, in what would be the biggest mining takeover.

Best, Final Offer

Phelps Dodge Chief Executive J. Steven Whisler said in a statement that his company's bid ``is the only proposal that allows Falconbridge shareholders to participate in the enormous synergies and upside available only by combining these three companies. This is the best and final proposal for Falconbridge that we will support. It is time for Falconbridge shareholders to decide what is truly in their best interests.''

Shares of Phelps Dodge rose $3.77, or 4.9 percent, to $81.03 at 4:03 p.m. in New York Stock Exchange composite trading, the biggest one-day gain since June 29. The rally may signal investors expect Xstrata to acquire Falconbridge.

``It's hard to see that this is not close to the final chapter,'' said Gavin Graham, director of investments at Toronto- based Guardian Group of Funds, which holds Falconbridge and Inco shares among $5.3 billion of assets.

Shareholder Opposition

If Xstrata wins Falconbridge, Phelps Dodge ``will not have to issue as many shares to buy Inco as the company would if it had to buy Inco and Falconbridge,'' Havens-Hasty said. ``On top of it, you have some shareholder discontent. It could keep the deal from happening.''

Atticus Capital LLC, a New York-based hedge fund and the second-largest Phelps Dodge shareholder as of March 31, ``intends to vote down this deal and would be surprised if other shareholders didn't reach the same conclusion,'' spokesman Robert Coburn said today in an interview.

Atticus, which manages more than $11 billion, ``continues to believe a return of capital is the best option for Phelps Dodge,'' Coburn said. Atticus was among the hedge funds that blocked Deutsche Boerse AG's bid for London Stock Exchange Plc. Phelps plans to take on $19 billion in debt to fund the Inco and Falconbridge deals.

Whisler said he wasn't surprised by opposition from Atticus, which reflects the hedge fund's ``short-term strategies based on their own objectives.''

Falconbridge shares rose C$1.34, or 2.2 percent, to C$63.38 at 4:15 p.m. in Toronto, and Inco jumped C$2.35, or 3.1 percent, to C$79.29. Xstrata climbed 94 pence, or 4.9 percent, to close at 2,005 pence in London. It has tripled in the past four years.

Lost Bid

Xstrata, which lost to BHP Billiton Ltd. last year in its hostile bid to acquire Australia's WMC Resources Ltd., made its initial bid for Falconbridge on May 17. The revised offer is the second increase in two weeks, and values Falconbridge at about 8 times earnings before interest, taxes, depreciation and amortization based on the Canadian company's earnings in the four quarters ending March 31. BHP Billiton paid 7.3 times Ebitda for WMC.

Falconbridge, the world's fourth-largest nickel producer, would diversify Xstrata's production portfolio. Nickel prices have risen 78 percent this year and copper 77 percent.

``They really don't want to miss out this time, but at the same time they don't want to overpay,'' Greg Smith, executive director of London-based Fat Prophets, said today by phone. Xstrata may raise its bid to C$65, he said.

Special Dividend

Xstrata said it amended its offer to include a special dividend due to Falconbridge shareholders of C$0.75 a share. The improved bid values Falconbridge at about C$24.1 billion, including the dividend, Xstrata said. The company bought 20 percent of Falconbridge at C$28 a share in August and September 2005.

Xstrata Chief Executive Officer Mick Davis, 48, said in an interview today from Zug that he made ``a tactical error'' in not making a full offer for Falconbridge last year. Should its bid fail, he said the company is ``continuously looking at alternative propositions.''

``It's time to draw a line under it now,'' Davis said. ``I think the shareholders of Falconbridge are tired of this.''

Inco's bid for Falconbridge ``remains very competitive,'' Chief Executive Officer Scott Hand said today in a conference call from Toronto. Xstrata's increased bid shows the Swiss company recognizes the strong outlook for metals that Phelps Dodge and Inco have forecast in their merger plans, he said.

Falconbridge's shareholders can expect C$64.92 a share if the three-way merger of Phelps Dodge, Inco and Falconbridge proceeds, Hand said in a later statement.

Glencore Support

The Swiss company said it has received support from Baar, Switzerland-based trader Glencore International AG, which controls a 36 percent stake in Xstrata.

The increased offer by Xstrata, which will expire 8 p.m. Toronto time on Aug. 14, is one of four involving five companies. In May, Vancouver-based Teck Cominco Ltd. bid for Inco, which had already agreed to acquire Falconbridge.

``We are watching and observing with interest,'' Doug Horswill, a spokesman for Teck Cominco, said in a telephone interview. ``We are on the sidelines.

Teck Cominco's bid for Inco is conditional on the termination of Inco's agreement to buy Falconbridge. Inco's Hand said the company would merge with Phelps Dodge even if it isn't able to acquire Falconbridge.
 

shrijit_s

Par 100 posts (V.I.P)
HCA Agrees to $21.3 Bln Buyout by Bain, KKR, Merrill (Update4)
July 24 (Bloomberg) -- HCA Inc., the largest U.S. hospital chain, said it agreed to a $21.3 billion buyout offer from Bain Capital LLC, Kohlberg Kravis Roberts & Co., Merrill Lynch & Co. and HCA co-founder Thomas F. Frist Jr.

Including the buyers' assumption of $11.7 billion in debt, the transaction's total value will be $33 billion, the company said today in a statement. That would top the $31.3 billion that KKR paid in 1989 for RJR Nabisco Inc. in the biggest buyout ever.

Stockholders will receive $51 for each HCA share, 6.5 percent more than the July 21 closing price. The deal will return Nashville, Tennessee-based HCA to private hands for a second time. The cost of caring for patients without insurance and pressure from Congress to cut government payments have hurt U.S. hospital stocks, making them cheaper for buyout firms to acquire.

``It makes sense for a company like HCA to operate in private,'' Sheryl Skolnick, an analyst with CRT Capital Group LLC in Stamford, Connecticut, said in a July 20 interview. ``They don't use their equity for acquisitions or compensation. They are more likely to need to shed assets.''

The purchase, the third-largest mergers and acquisition deal announced this year, will be financed through a combination of equity from the private buying group and loans from Bank of America, Citigroup Global Markets, JPMorgan and Merrill Lynch Capital Corp., the company said.

HCA said its board recommended that shareholders approve the transaction. Subject to antitrust clearance and certain other conditions, the purchase may be completed in the fourth quarter, HCA said. Members of HCA senior management agreed to reinvest a portion of their HCA equity in the acquiring entity or an affiliate.

Shares Rise

HCA spokesman Jeff Prescott declined in a voicemail message to comment on today's announcement.

Shares of HCA rose $1.77, or 3.7 percent, to $49.64 at 10:34 a.m. in New York Stock Exchange composite trading. Before a 10 percent runup July 20, HCA shares had lost 13 percent this year, underperforming a little-changed Standard & Poor's 500 Index.

HCA's 6.5 percent note maturing in 2016 fell as much as 7.7 cents to 79 cents on the dollar, according to Trace, the bond- price reporting system of the NASD. The extra yield, or spread, investors demand to own the debt instead of U.S. Treasuries widened to as much as 4.91 percentage points, up from 3.52 percentage points July 21. The debt was issued in February at 99.6 cents on the dollar to yield 2 percentage points more than Treasuries.
 

shrijit_s

Par 100 posts (V.I.P)
A great hostile battle happening. Waiting to see its result.

Teck Cominco Boosts Inco Bid to Thwart Phelps Deal
July 31 (Bloomberg) -- Teck Cominco Ltd., the world's largest zinc producer, increased its hostile bid for nickel miner Inco Ltd. by 12 percent to C$16.5 billion ($14.7 billion) to thwart a competing deal with Phelps Dodge Corp.

Teck Cominco would pay cash and stock valued at C$82.50 for each Toronto-based Inco share, a 12 percent increase from its May 8 bid. The new offer boosts the cash portion to C$40 from C$28, Vancouver-based Teck Cominco said today in a statement. Phelps Dodge's offer was valued at C$81.74 as of July 28.

Mining companies are battling for natural resource assets as China, the world's largest consumer of metals, drives copper, nickel and zinc to record levels. Phelps Dodge sought to acquire Inco and Falconbridge Ltd. in a $43.5 billion transaction, the biggest mining takeover ever. Falconbridge shareholders rejected the deal, leaving Phelps Dodge to acquire Inco alone.

``The increased cash component crystallizes substantial value for Inco shareholders who choose that option,'' Teck Cominco Chief Executive Officer Donald Lindsay said in the statement.

Shares of Inco rose 10 cents, or 0.1 percent, to C$86.67 at 10:28 a.m. in Toronto Stock Exchange trading, giving the company a market value of C$17.3 billion. The stock is up 71 percent in the past year.

Teck, Phelps Dodge

Teck Cominco fell 62 cents, or 0.8 percent, to C$72.39 in Toronto. On the New York Stock Exchange, Phelps Dodge jumped $3.90, or 4.8 percent, to $85.40. Phelps Dodge rallied as copper prices rose and the Globe and Mail reported the company may be acquired by Grupo Mexico SA.

The maximum amount of cash will be C$9.1 billion, Teck said. The offer expires at midnight Aug. 16 in Toronto.

Lindsay wants to buy Inco, the world's second-largest nickel producer, to enter a market in which prices have risen 86 percent this year. Teck's offer puts pressure on Phelps Dodge Chief Executive Officer J. Steven Whisler, which agreed to acquire Inco in a friendly takeover.

Phelps Dodge spokesman Peter Faur didn't immediately return phone calls seeking comment.

Inco, backed by Phoenix-based Phelps Dodge, last week lost to Zug, Switzerland-based Xstrata Plc in a takeover battle for nickel producer Falconbridge.

Teck first made an unsolicited bid for Inco on May 8, offering Inco shareholders C$28 in cash and 0.6293 of its Class B subordinate voting share on the condition that Inco didn't buy Falconbridge.

Phelps Takeover Speculation

Shares of Phelps Dodge reached an eight-week high on speculation the company may be the target of a bid by Grupo Mexico, which the Globe and Mail newspaper on July 29 said has hired U.S. financial advisers to study a bid. The paper cited people in the financial industry that it didn't identify.

Grupo spokesman Juan Rebolledo declined to comment, and Phelps Dodge spokesman Peter Faur didn't return calls seeking comment.

Executives at Southern Copper, a unit of Grupo Mexico, said two months ago the company was talking to several other companies including Phelps Dodge about forming a ``strategic alliance,'' the Globe said.
 

shrijit_s

Par 100 posts (V.I.P)
The INCO battle just keep getting interesting with one more bidder. The current bidder is Vale


Vale Offers C$19.4 Billion in Cash for Canada's Inco
(Aug. 11 (Bloomberg) -- Cia. Vale do Rio Doce, the world's largest iron-ore producer, entered the battle for Inco Ltd., offering C$19.4 billion ($17.2 billion) to wrest the Canadian nickel miner from two other bidders.

Rio de Janeiro-based Vale said it plans to pay C$86 a share for Inco, the second-biggest nickel miner, in an all-cash offer that may trump cash-and-stock bids from Phelps Dodge Corp. and Teck Cominco Ltd.

The takeover, which would be the biggest foreign acquisition ever by a Brazilian company, would make 64-year-old Vale the world's fourth-largest mining company by sales. Vale Chief Executive Officer Roger Agnelli would gain supplies of nickel, used to make steel rust-resistant, to deliver alongside iron ore to steelmaking customers such as ThyssenKrupp AG.

``This is the best bid out there by far,'' said Ronald Mayers, who invests in companies involved in mergers and acquisitions for Montreal-based Desjardins Securities, which holds Inco shares. ``This is a winning bid, unless someone else comes in and does better.''

Vale's shares sank 2.2 percent to 42 reais in Sao Paulo today while Inco's shares jumped 3.5 percent to C$89.08 in Toronto, leaving them up more than 70 percent this year. At a share price of 42.2 reais, Vale has a market value of 112.9 billion reais ($52 billion).

`Disciplined'

Phoenix, Arizona-based Phelps Dodge, the world's third- largest copper producer, agreed on June 26 to buy Inco with cash and stock that are today worth C$88.53 per share. Vancouver- based Teck Cominco is offering C$86.04 is cash and stock per share in a hostile bid.

Inco spokesman Bruce Drysdale and Phelps Dodge spokesman Peter Faur declined to comment. Teck President and Chief Executive Officer Don Lindsay said the company won't be ``drawn into an expensive bidding war for Inco.''

``We will weigh our options carefully, and remain committed to a disciplined approach to any transaction,'' Lindsay said in a statement released on Canada NewsWire.

Losing Inco would be Phelps Dodge's second setback in less than a month, after Zug, Switzerland-based Xstrata Plc beat it in the battle for Canadian miner Falconbridge Ltd. Falconbridge's board three days ago recommended shareholders accept Xstrata's C$19.2 billion bid.

Inco said in a filing with the U.S. Securities and Exchange Commission this week that it will owe Phelps Dodge a termination fee of $475 million should Inco cancel the merger or recommend another bid.

`Full-Value'

Mining companies are battling for natural-resource assets as China, the world's largest consumer of metals, drives copper nickel and zinc to record levels. The price of nickel, used in stainless steel production, has more than tripled in the past three years.

Demand for raw materials, such as iron-ore and nickel continues to grow faster than mining companies can increase supply, a situation that will continue for many years, Agnelli said. Nickel, in particular, faces tight supply in the future, making it likely nickel prices will remain high and that Vale shareholders will benefit from an Inco purchase, he added.

``We consider this offer a full-value offer for Inco,'' Agnelli told reporters at a news conference in Rio de Janeiro. ``It's high but justified.''

The purchase of Inco will be financed by loans from Credit Suisse, UBS AG, ABN Amro Holding NV and Banco Santander Central Hispano SA, Vale said in a statement. Stikeman Elliott LLP and Cleary, Gottlieb, Steen & Hamilton LLP are acting as the company's legal advisers.

Canico Purchase

Agnelli, 47, is seeking to expand iron-ore, aluminum and transport operations and add production of raw materials such as nickel, copper and coal as part of a $17.4 billion five-year expansion plan. Adding Inco would make Vale the world's biggest nickel miner by 2010.

``They want to be up there with the big guys in Australia, along with BHP Billiton,'' said Anders Damgaard, who helps manage $3 billion, including Vale shares, at Sydinvest Asset Management in Aabenraa, Denmark.

Last year, Vale paid C$933 million to purchase Canico Resources Corp., a Canadian-based mining company that owned the Onca Puma nickel mine near Vale's existing Amazon rainforest mines and railway. It is also developing it's own Vermelho nickel mine.

Moody's

When Vale's two Brazilian nickel mines begin operations in 2008 or 2009, the company will be able to produce more than 280,000 metric tons of metallic nickel a year, 15 percent more than Russia's OAO GMK Norilsk Nickel, currently the world's largest producer.

Vale's offer is 8.8 times Inco's earnings before interest, taxes, depreciation and amortization, or Ebitda, based on the past four quarters. That compares with the 8 times Ebitda that Xstrata is paying for Toronto-based Falconbridge, according to data compiled by Bloomberg.

Vale Chief Financial Officer Fabio Barbosa has set a goal of reducing Vale's borrowing costs to the levels of rivals such as BHP Billiton.

While Vale's debt is rated investment grade, it still has higher borrowing costs than many of its peers. The company's 2016 bonds yield about 6.16 percent, 34 basis points more than bonds of similar maturity issued by BHP Billiton. A basis point is 0.01 of a percentage point.

Moody's Investors Service placed Vale's Baa1 local currency debt rating on review for a possible cut today after the company announced its bid for Inco. Moody's rates Vale's foreign debt Baa3, three levels above the Brazilian government.

Melbourne-based BHP Billiton is the world's biggest mining company followed by London-based Anglo American Plc. and London- based Rio Tinto Group.
 

shrijit_s

Par 100 posts (V.I.P)
Shinhan Financial to Acquire South Korea's LG Card
Aug. 16 (Bloomberg) -- Shinhan Financial Group Ltd., South Korea's second-largest financial services company, won a bid to acquire LG Card Co. in what may be the country's biggest takeover.

Shinhan Financial was chosen to enter exclusive negotiations for Seoul-based LG Card, the nation's No. 2 card issuer, Kim Jong Bae, deputy governor of main creditor Korea Development Bank, said at a press briefing today. No price was disclosed. Yonhap news agency yesterday said the lender will buy a 85 percent stake for about 68,000 won a share, indicating a 7.2 trillion won ($7.5 billion) takeover.

The purchase may trump market leader Kookmin Bank's 6.95 trillion won takeover of Korea Exchange Bank in March, as increased competition from global lenders forces the industry to consolidate. LG Card will raise Shinhan Financial's assets to 219 trillion won, increasing the gap between it and smaller lenders Woori Finance Holdings Co. and Hana Financial Group Inc.

``The bid indicates Shinhan Financial can generate more than 3 trillion won of profits a year, competing with bigger rival Kookmin,'' Bryan Song, an analyst at Merrill Lynch, said before the announcement. ``If the big players compete to expand their presence with such huge profits, that will put more pressure on the other two.''

LG Card's Bailout

LG Card's creditors, who own an 82 percent stake after have spending 4 trillion won to bail it out since January 2004, are seeking to recoup their investment after business improved on a pickup in Korean consumer spending. The card issuer struggled with rising defaults three years ago when one in 13 of the nation's 48 million people fell at least three months behind on debt payments.

Hana and National Agricultural Cooperative Federation also bid for LG Card after Standard Chartered Plc. pulled out. JPMorgan Chase & Co. advised creditors on the sale and UBS AG acted as adviser for Shinhan Financial.

Kookmin's assets will expand to 287 trillion won after it completes the takeover of Korea Exchange Bank, which is pending regulatory approval.

``The deal ushers in an era of the two top players in the country's banking and credit card businesses being dominant,'' said Mok Young Chung, an analyst at Macquarie Securities Korea Ltd., who has a ``buy'' recommendation on Shinhan Financial.

Creditors' Stakes

LG Card creditors spent an average of about 36,000 won a share for their stakes in the credit card company, said Jeon Tae Jin, general manager of Korea Development Bank.

Hana was named the secondary-preferred bidder should negotiations with Shinhan Financial break down, said Korea Development Bank, which is overseeing the sale for creditors, who owned 81 percent of the firm as of June 30.

Final details for the sale should be announced by October, Korea Development Bank said in a statement. The preferred bidder will have four weeks to conduct due diligence and may revise down its final offer price within 5 percent of its price offer, Kim said.

Shinhan Financial will merge its credit card business with LG Card and make the merged unit the world's No. 5 credit card company by transaction volume by 2015, the financial services company said in a statement today.

Shares of LG Card rose as much as 7.14 percent and closed at 2,600 won, or 4.5 percent, higher at 60,000 won today in Seoul. The stock surged 8.9 percent on Aug. 14. South Korean markets were closed for a holiday yesterday.

Shinhan Financial stock gained as much as 3.83 percent, before slipping back to close 1.6 percent, or 750 won, higher at 46,500 won.

No Lay-Offs

Shinhan plans to acquire LG Card without staff lay offs and manage it as a separate unit for about two years before the merger, according to the statement. The merged credit card business will have a transaction volume of $64 billion, the world's 10th biggest, Shinhan said, citing the 2004 Nilson Report.

Buying LG Card will give Shinhan Financial an additional 10 million customers who paid 14.3 trillion won with their credit cards in the first quarter. LG Card's biggest rival, Kookmin Bank, had 9.12 million cardholders accumulating 15.3 trillion won of credit card bills in the first quarter.

LG Card's labor union threatened in a statement today to block the sale should Korea Development Bank fail to disclose a long-term business plan for the credit-card company and details about the selection process for the winning bidder.
 

shrijit_s

Par 100 posts (V.I.P)
Finalllllyy!!!!!!!!! Its here!!!! The largest deal ever done by an Indian Company

:SugarwareZ-191:

Right now dont have the detailed news. This is the best I have got. Will post a detailed one later

Tata Tea acquisition largest overseas deal by Indian co
Tata Tea has acquired 30% in US-based Energy Brands Inc for USD 677 million. Energy Brands markets ready-to-drink coffee from US' Best Brew. This 30% stake was acquired from TSG Consumer Partners, through Tata Tea Great Britain. Tata Sons and Tata Tea are to jointly invest USD 677 for this acquisition.

Energy Brands is the parent company of Glaceau Water Company, which sells water, FruitWater, VitaminWater, SmartWater. Glaceau Water products are sold in 40 US states.


Analysts say Tata Tea's target of more than doubling its consolidated turnover in three years to Rs 7,000 crore implies more acquisitions in the pipeline. Its international business will dwarf the domestic one even more in the years ahead.

This Tata Tea acquisition is said to be the largest overseas deal by an Indian company.
 
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