Mergers & Acquisitions

Mergers and acquisitions (M&A) is a general term that refers to the consolidation of companies or assets. M&A can include a number of different transactions, such as mergers, acquisitions, consolidations, tender offers, purchase of assets and management acquisitions. In all cases, two companies are involved. The term M&A also refers to the department at financial institutions that deals with mergers and acquisitions.

Merger In a merger, the boards of directors for two companies approve the combination and seek shareholders’ approval. After the merger, the acquired company ceases to exist and becomes part of the acquiring company. For example, in 2007 a merger deal occurred between Digital Computers and Compaq whereby Compaq absorbed Digital Computers.

Acquisition: In a simple acquisition, the acquiring company obtains the majority stake in the acquired firm, which does not change its name or legal structure. An example of this transaction is Manulife Financial Corporation’s 2004 acquisition of John Hancock Financial Services, where both companies preserved their names and organizational structures.

Huntsman and Clariant Halt Chemicals Merger, Citing Investor Revolt

On Friday, Huntsman and Clariant said they remained convinced that the proposed deal was “in the long-term best interests of all of our shareholders” but opted to avoid the continued costs and disruption in trying to push the deal forward. Neither company will pay a breakup fee. Clariant said on Friday that White Tale, an investment vehicle formed by the hedge fund manager Keith Meister and the investment fund 40 North, had accumulated more than 20 percent of the Swiss…

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Alaska Air Group Can’t Wait to Move Past Its Virgin Merger — The Motley Fool

We are good airline operators. We’re good at managing costs. We’re good at managing operations. We’re actually good at managing revenues, but we have been a little bit focused on the merger. And the sooner we get to the place where the merger is done and we’re running the airline, which means whatever, getting close to our people, budgets, all of that stuff, the better. –Alaska Air Group CEO Brad Tilden The quote above, from Alaska Air Group‘s (NYSE:ALK) third-quarter…

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Western Digital to plough on with merger roadblocks in Toshiba talks

Western Digital has refused demands from Toshiba that it drop a set of legal rights it believes would allow the company to block Toshiba’s US$18 billion sale of its memory chip unit to SK Hynix as part of negotiations over a joint chip investment between Toshiba and Western Digital. Because of the impasse over the terms, Western Digital does not believe it will take part in a coming round of investment in Toshiba’s so-called Fab 6 chip factory in Yokkaichi,…

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Wilbur Ross: A Look Back at His Days as the ‘Bankruptcy King’

“Bondholders are like workers in a factory. … On their own they have no leverage. But if someone pulls them together, they can negotiate with anyone.” -Wilbur Ross He is now a prominent politician, but before becoming secretary of commerce, Wilbur Ross (Trades, Portfolio) was a prominent value investor, a turnaround expert who raised not only troubled companies, but also controversy. He came to prominence a few years after starting his own firm in 2000 by bold moves in the…

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Nokia telecom Q3 sales fall in presence of Chinese competition

By: Reuters | Helsinki | Published:October 26, 2017 3:11 pm Nokia reported a sharp drop in quarterly earnings from its telecom network gear business. (File Photo) Nokia reported a sharp drop in quarterly earnings from its telecom network gear business, warning the market had turned more challenging due to tough competition in China and consolidation among wireless carriers. Shares in the Finnish company dropped more than 11 percent by 0739 GMT as it forecast that the market, where it competes…

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Haniel acquires leading manufacturer of packaging machines ROVEMA

DGAP-News: Franz Haniel & Cie. GmbH / Key word(s): Mergers & AcquisitionsFranz Haniel & Cie. GmbH: Haniel acquires leading manufacturer of packaging machines ROVEMA (news with additional features) 26.10.2017 / 08:56 The issuer is solely responsible for the content of this announcement.   Haniel acquires leading manufacturer of packaging machines ROVEMAAttractive, fast-growing niche player ensures further diversification of the portfolio Duisburg, 26 October 2017. Franz Haniel & Cie. GmbH (Haniel) signed a contract on 24 October 2017 for the complete…

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Latin American Herald Tribune – Grupo Banorte Announces Merger to Create Mexico’s No. 2 Financial Group

MEXICO CITY – The Grupo Financiero Banorte (GFNorte) announced on Wednesday the merger acquisition of Grupo Financiero Interacciones, whereby it will become Mexico’s second-largest financial group in terms of assets, loans and deposits. In a statement, GFNorte said that it is expecting the transaction to be concluded in the second quarter of 2018, if and when the general assemblies of the two groups give their approval along with the Finance and Public Credit Secretariat. GFInter shareholders would receive a combination…

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Four Singapore firms top the largest SEA M&As in 2017

The US$15.94b acquisition of Global Logistic Properties topped the list. The mergers and acquisitions (M&As) of four Singapore firms topped the list of the largest in Southeast Asia from Q1 to Q3 in 2017, Mergermarket revealed. According to its trend report, the acquisition of Global Logistic Properties (GLP) by a consortium led by China Vanke, HOPU, and Hillhouse Capital for US$15.94b is the largest deal in Q1 to Q3. The acquisition of CWT Limited by HNA Holding Group Co Ltd…

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Prosperity Bancshares’ (PB) CEO David Zalman on Q3 2017 Results – Earnings Call Transcript

Prosperity Bancshares, Inc. (NYSE:PB) Q3 2017 Earnings Conference Call October 25, 2017, 10:30 ET Executives Charlotte Rasche – EVP, General Counsel & Senior EVP David Zalman – Chairman & CEO David Hollaway – CFO & EVP H. E. Timanus – Vice Chairman & Chairman Analysts Brady Gailey – KBW Ebrahim Poonawala – Bank of America Merrill Lynch David Rochester – Deutsche Bank AG Matthew Olney – Stephens Inc. Peter Winter – Wedbush Securities Gary Tenner – D.A. Davidson & Co.…

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Oct 25, 2017 – Periscope Capital Inc. Buys Capitol Investment Corp IV, Pensare Acquisition Corp, Hennessy Capital Acquisition Corp III, Sells Easterly Acquisition Corp, Double Eagle Acquisition Corp, Hennessy Capital Acquisition Corp III

Investment company Periscope Capital Inc. buys Capitol Investment Corp IV, Pensare Acquisition Corp, Hennessy Capital Acquisition Corp III, Industrea Acquisition Corp, Social Capital Hedosophia Holdings Corp, Pensare Acquisition Corp, Industrea Acquisition Corp, Federal Street Acquisition Corp, Federal Street Acquisition Corp, I-AM Capital Acquisition Co, sells Easterly Acquisition Corp, Double Eagle Acquisition Corp, Hennessy Capital Acquisition Corp III, Silver Run Acquisition Corp II, JM Global Holding Co during the 3-months ended 2017-09-30, according to the most recent filings of the investment…

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Generational Equity Announces Sale of Designer Sign Systems to Private Investor

DALLAS, Oct. 25, 2017 /PRNewswire/ — Generational Equity, a leading mergers and acquisitions advisor for privately held businesses, is pleased to announce the sale of its client, Orientations Inc. dba Designer Sign Systems, to a private investor. The acquisition closed April 18, 2017. Details were not disclosed. Designer Sign Systems designs and manufactures custom architectural interior as well as exterior signage. The company also offers wayfinding, design/build, installation, consulting, reorder fulfillment, and other related services. DSS is based in Blaine, Minnesota, outside…

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AT&T to upgrade DirecTV Now service as strategy to stem loss of pay TV customers | Technology

DirecTV Now’s gains were a bright spot in a tough quarter for AT&T’s traditional TV business. Its two traditional services, U-verse and DirecTV, lost a total of 385,000 customers during the three-month period. That’s roughly equivalent to the whole population of Arlington. The sharp decline reflects the fragmented TV landscape where new players like Netflix and Hulu and legacy players like AT&T and Comcast compete for eyeballs. But Stephens attributed nearly half of the losses to the company’s tightened credit policy and homes hit by…

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Lewiston-Auburn merger ballot question: ‘It’s on there’

LEWISTON-AUBURN — Lewiston-Auburn voters should know two things, city clerks of both cities said. Early voting is open. “No lines, no waiting. Come on down,” Lewiston City Clerk Kathy Montejo said. And the referendum question asking voters do they want Lewiston and Auburn to consolidate is definitely on the ballot. “It’s the only question,” she said. But the ballot question is confusing some voters, Montejo said. It reads: “Do you approve the charter and consolidation agreement as recommended by the Lewiston…

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Commerzbank hires Goldman Sachs as an advisor for possible takeover bids

CommerzBank branded bikes. Reuters Germany’s second-largest lender has hired advisers to prepare for possible takeover bids. Both Goldman Sachs and Rothschild are advising the lender, which has a market capitalisation of €14 billion. Any deal for Commerzbank would be the biggest for a German bank since before the financial crisis. LONDON — Commerzbank, Germany’s second-largest bank by assets, has hired Goldman Sachs as an adviser as it prepares for takeover bids, according to reports. The Financial Times reports that Goldman…

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Outcry against Sinclair-Tribune Media merger should prompt feds to kill the deal

Hundreds of consumers are offering some simple and direct advice to federal regulators eyeing Sinclair Broadcasting Group’s proposed acquisition of locally-based Tribune Media: Kill this awful deal — now. They’re right. As this column stated in August, a Sinclair-Tribune merger will create the country’s largest television group — an anti-consumer and anti-competitive broadcasting powerhouse with access to an unprecedented 72 percent of the U.S. households. Nothing much has happened to change the basic construction of this agreement. But in recent…

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IHS Markit : Tight Inventory of Deepwater E&P Assets for M&A Drives Prices Higher as Offshore Deal Value Increases, IHS Markit Says

Reduced exploration spending means fewer world-class deepwater assets for sale, while number of shallow-water deals has declined Reduced spending for oil and gas exploration is limiting availability of quality deepwater assets for merger and acquisition (M&A) deals, according to a new report by IHS Markit (Nasdaq: INFO), a world leader in critical information, analytics and solutions. This lack of deepwater asset inventory is challenging E&P (exploration and production) operators who seek to acquire assets in order to secure development funds…

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