November 26th, 2011

AT&T to offer bigger asset sale to save T-Mobile deal: report – Yahoo! News

Reuters – AT&T Inc is considering an offer to divest a significantly larger portion of assets than it had initially expected, in order to salvage its $39 billion deal to buy T-Mobile USA, Bloomberg reported citing a person familiar with the plan.Bloomberg said the exact size of the divestiture hasn’t been determined but reported it could be as much as 40 percent of T-Mobile USA’s assets.The divestiture is an attempt to address the concerns of the Justice Department, which sued to block the takeover on August 31 saying the deal would “substantially lessen competition” in the wireless market, Bloomberg said.The proposed deal was dealt another blow on November 22, when the Federal Communications Commission’s chairman sought to have it sent to an administrative law judge for review.

via AT&T to offer bigger asset sale to save T-Mobile deal: report – Yahoo! News.

November 22nd, 2011

Obama Says He Will Veto Any Attempt To Eliminate Automatic Spending Cuts After Super Committee Fails

President Obama threatened to veto any attempt to eliminate the $1.2 trillion in mandatory spending cuts scheduled to take effect in 2013 now that the super committee has failed.In a terse statement from the White House briefing room, Obama said, “I will veto any effort to get rid of those automatic spending cuts. There will be no easy off ramps on this one.”He added that he will also push Congress to extend the payroll tax cut into 2012, warning that if lawmakers fail to act “taxes for every American will go up next year.”He added: “I’m not about to let that happen.”

via Obama Says He Will Veto Any Attempt To Eliminate Automatic Spending Cuts After Super Committee Fails.

November 18th, 2011

Deutsche Börse and NYSE Euronext Offer Concessions to Complete Merger – NYTimes.com

LONDON — Deutsche Börse and NYSE Euronext announced plans Friday to divest businesses in Europe and open up other operations to rivals, in an effort to win regulatory approval for their proposed $9 billion merger.

NYSE Euronext said it would sell its pan-European single equity derivatives units, except the options businesses in its home markets. Deutsche Börse also said it would divest similar operations.

The companies added they would give rivals access to Eurex Clearing, a clearinghouse for derivatives products, to offset regulatory concerns that the pending merger would lead to uncompetitive practices.

via Deutsche Börse and NYSE Euronext Offer Concessions to Complete Merger – NYTimes.com.

November 17th, 2011

Cigna Sells More Stock to Pay for HealthSpring Deal – Deal Journal – WSJ

Despite historically low interest rates, Cigna is opting to sell about 15 million shares of fresh stock to raise money for its $3.8 billion acquisition of HealthSpring.

Cigna earlier this month sold $2.1 billion of debt, and the equity issuance at Tuesday’s closing price would bring in some $750 million. (Cigna also said in a news release that its bankers have the option to buy 2.25 million additional Cigna shares.)

Cigna’s planned stock sale would boost the amount outstanding about 6%. The stock price is slumping about 2.2% in pre-market trading on Wednesday.

When Cigna announced last month its deal for HealthSpring, the company said it planned to finance about 20% of the acquisition price from sales of new Cigna stock. The rest of the money will come from issuing new debt and from Cigna’s existing cash stockpile.

via Cigna Sells More Stock to Pay for HealthSpring Deal – Deal Journal – WSJ.

November 17th, 2011

An IPO Do-Over, With a 32% Haircut – Deal Journal – WSJ

By Shira Ovide

InvenSense, which makes motion sensors for consumer electronics, delayed a planned IPO back in August, when bouncing stock markets conspired to spike many IPOs. Now, InvenSense is back, but the delay cost the company dearly.

Last night, InvenSense sold 10 million shares to the public for the first time, at $7.50 a pop. Back this summer, InvenSense initially planned to sell 10.5 million shares at $8.50 to $10.50 each. So instead of raising up to $110 million as planned before markets went haywire, InvenSense is pocketing $75 million — or about 32% less money into the company’s coffers.

Shares of InvenSense

via An IPO Do-Over, With a 32% Haircut – Deal Journal – WSJ.

November 17th, 2011

GE Buys Railroad Software Company – Deal Journal – WSJ

General Electric pulled off a deal today for RMI, a company that provides transportation-management software for railroads and related companies.

GE didn’t disclose the price of the deal, but it’s fair to think the transaction won’t make much of a dent in GE’s stockpile of assets. A news release said RMI has revenue of about $45 million. RMI has been owned by private-equity firm Carlyle Group.

via GE Buys Railroad Software Company – Deal Journal – WSJ.

November 17th, 2011

Chesapeake Plans to Spin Off Oilfield Service Business – Deal Journal – WSJ

By Ryan Dezember

Chesapeake Energy plans to spin off its oilfield service business next year in a public stock offering to establish the value of the unit to investors and pump up the share price of the parent company, Chief Executive Aubrey McClendon said in an interview Wednesday.

Chesapeake recently installed a management team for the collection of service businesses it has built over the years and plans to retain a majority stake–perhaps around 80%–in the company after it goes public, McClendon said on the sidelines of Stephens Fall Investment Conference.

Chesapeake will retain control of the service company’s board and will hold onto as much stock as it can while allowing a liquid market for the public shares, he added. Also, McClendon said, the company will continue to work primarily for Chesapeake, which is the most active driller in the U.S.

via Chesapeake Plans to Spin Off Oilfield Service Business – Deal Journal – WSJ.

November 17th, 2011

Delphi Raises $530 Million in IPO, Pricing at Low End of Range – Businessweek

Nov. 17 (Bloomberg) — Delphi Automotive Plc, the former parts unit of General Motors Co., raised $530 million in its initial public offering, pricing the shares at the low of the range.

The company sold 24 million shares for $22 each, according to data compiled by Bloomberg, after offering them for $22 to $24 apiece. Delphi, based in Troy, Michigan, will trade on the New York Stock Exchange under the symbol DLPH.

The price range valued Delphi at a discount to other North American auto-parts makers as most of the proceeds went to the largest shareholder, Paulson & Co. The company had originally discussed a $1 billion IPO, with plans to use the funds for debt payments and working capital.

“It is impressive that they are able to get a cyclical company like Delphi public in a tough market,” said Wayne Wilbanks, chief investment officer at Wilbanks, Smith & Thomas in Norfolk, Virginia, which manages about $1.8 billion. “The recent bump in the market” gave them a short window to get the deal done, he said.

via Delphi Raises $530 Million in IPO, Pricing at Low End of Range – Businessweek.

November 17th, 2011

Stifel Is Said to Be in Exclusive Talks to Buy Morgan Keegan – Businessweek

Nov. 16 Bloomberg — Stifel Financial Corp. is in exclusive talks to buy Regions Financial Corp.’s Morgan Keegan brokerage after prevailing over private-equity bidders, said people with knowledge of the matter.Stifel remains days or weeks away from agreeing to an acquisition and may not reach a deal, said the people, who spoke on condition of anonymity because the discussions are private. Regions dropped talks with two groups of buyout firms, one comprising Carlyle Group and Blackstone Group LP, and the other made up of Thomas H. Lee Partners LP and Aquiline Capital Partners LLC, the people said.

via Stifel Is Said to Be in Exclusive Talks to Buy Morgan Keegan – Businessweek.

November 17th, 2011

SCA of Sweden to Buy Georgia-Pacific Unit for $1.8 Billion – NYTimes.com

LONDON — The Swedish hygiene and paper company SCA announced plans on Thursday to acquire the European tissue business of Georgia-Pacific for $1.8 billion.

SCA, based in Stockholm, said the Georgia-Pacific unit it would be combined with its own consumer operations, which make products including tissues and diapers. The company said the deal would lead to $170 million of annual cost savings by 2014.

via SCA of Sweden to Buy Georgia-Pacific Unit for $1.8 Billion – NYTimes.com.

November 17th, 2011

RIM Critic Pushes Change, but His Sway Is in Doubt – NYTimes.com

TORONTO — With its stock down about 65 percent this year, Research in Motion, the maker of the BlackBerry, has no shortage of unhappy shareholders. But few of its investors have sought and received as much attention over the past few months as Victor P. Alboini, the chairman and chief executive of Jaguar Financial.

In several interviews with the media since June, Mr. Alboini has called for the replacement of RIM’s co-chief executives, demanded the appointment of an independent chairman and urged the company’s board to consider selling or breaking the company into three units.

via RIM Critic Pushes Change, but His Sway Is in Doubt – NYTimes.com.

November 17th, 2011

E*Trade Calls Off Its Efforts to Sell Itself – NYTimes.com

The E*Trade Financial Corporation said Thursday that its board had withdrawn the online brokerage firm’s efforts to sell itself, a process that began after one of its largest investors, the Citadel Investment Group, pressed the board to explore an auction.

E*Trade said in a statement that its board decided to call off the sales process after a recommendation from its financial adviser, Goldman Sachs, following two days of regularly scheduled directors meetings

via E*Trade Calls Off Its Efforts to Sell Itself – NYTimes.com.

November 17th, 2011

Sinopec Expands in Brazil With Stake in Energy Company – NYTimes.com

LONDON — Sinopec has agreed to invest almost $5.2 billion in the Brazilian operations of Portuguese energy company Galp Energia, the latest move in a global expansion by China’s largest oil refiner.

Under the terms of the deal, the state-owned Sinopec will invest $4.8 billion for a 30 percent stake in Petrogal Brasil, a subsidiary of Galp Energia in the fast-growing South American country. The Chinese company will make an additional loan to the Brazilian-based business for $390 million.

via Sinopec Expands in Brazil With Stake in Energy Company – NYTimes.com.

November 17th, 2011

Universal Music Group Set to Acquire EMI Unit – NYTimes.com

6:41 p.m. | Updated

Vivendi, the French media and telecommunications company, has agreed to acquire the recorded music division of the EMI Group for 1.2 billion pounds, or about $1.9 billion.

The agreement means that the EMI record label, whose artists include the Beatles and Coldplay, will be under the same corporate umbrella as the Universal Music Group, the world’s largest music company.

via Universal Music Group Set to Acquire EMI Unit – NYTimes.com.

November 17th, 2011

Bank of America to Sell Most of Its Stake in Chinese Lender – NYTimes.com

Bank of America to Sell Most of Its Stake in Chinese Lender

Bank of America announced on Monday that it would sell most of its remaining holdings in China Construction Bank to a group of unidentified investors, in a bid to bolster its capital buffer.

The deal, which is projected to raise $1.8 billion, comes as the bank faces questions about its financial health.

via Bank of America to Sell Most of Its Stake in Chinese Lender – NYTimes.com.

November 17th, 2011

Moody’s Buys Majority Stake in Indian Research Firm – NYTimes.com

NEW DELHI — Moody’s said on Monday that it had bought a majority stake in Copal Partners, a company that provides research and analysis for banks, hedge funds and private equity firms using analysts in India and other emerging markets.

Copal’s 1,250 analysts do equity research, due diligence on mergers and statistical analysis for dozens of big banks and funds, at a fraction of the cost of analysts in New York or London. The company’s revenue has increased at least 20 percent a year since 2006, and is projected to hit $50 million in 2011, Copal executives said on Monday.

via Moody’s Buys Majority Stake in Indian Research Firm – NYTimes.com.

November 17th, 2011 November 17th, 2011

Barclays Capital Rises, ‘Big-Boy Checkbook’ in Hand – NYTimes.com

The American pipeline operator Kinder Morgan struck one of the biggest deals of the year nearly a month ago with its $21.1 billion purchase of a rival, the El Paso Corporation.

What was just as notable was the financing backing the deal — a $13.3 billion loan package arranged by Barclays Capital, one of the largest financing efforts that the bank had made on its own. It was the second time this year that the British investment bank took the initial financing of a megadeal upon its shoulders. In August, Barclays lent $8.3 billion to Hewlett-Packard to help pay for its $11.7 billion purchase of the British software company Autonomy.

via Barclays Capital Rises, ‘Big-Boy Checkbook’ in Hand – NYTimes.com.

November 17th, 2011 November 17th, 2011

Continental and United merger is ‘on track’ – USATODAY.com

In a recent speech, Jeff Smisek, CEO of United Continental Holdings, likened merging two large airlines to a total house remodeling.

Workers at Chicago’s O’Hare airport in May remove a sign with the old Continental Airlines logo to reveal the new United logo featuring Continental’s blue glob

“We are not doing painting and spackling here,” he told a group of business executives in Chicago.

Like a large construction project, the integration of United and Continental airlines is having its share of drama: meshing disparate cultures; the issue of new union representation contracts running behind schedule; some disgruntled pilots; customer confusion; and a long to-do list that includes minute details such as the proper verbiage when warning flight attendants to prepare for takeoff.

via Continental and United merger is ‘on track’ – USATODAY.com.