Deal And Related News Feb 14, 2011

· SATS/HUGH: EchoStar Corporation announced an agreement to acquire all of the outstanding equity of Hughes Communication a transaction valued at approximately $2 billion.  Under the terms of the transaction, which has been approved by the Boards of Directors of both companies, Hughes’ shareholders will receive $60.70/share.  The transaction is expected to close later this year.

· GENZ – SNY has wrapped up its due diligence but still needs some more time to hammer out certain details before consummating a deal w/GENZ; the companies hope to have something wrapped up by this week.  SNY didn’t find anything in its due diligence that would prevent the talks from moving forward, although could be looking to adjust its offer based on what it learned about GENZ.  WSJ

· SNY – Sanofi-Aventis SA plans to spend 1 billion euros over the next three years on acquisitions in ophthalmology, Les Echos reported.  The company is currently studying “closely” four potential purchases, three of which are in the U.S. and the other in Israel – Bloomberg

· DYN – Icahn announced that on February 10, 2011, FERC approval for the Icahn tender offer for Dynegy shares was received. The only significant remaining condition to the tender offer is the Minimum Condition, which requires that at least approximately 35% of the shares outstanding are tendered.  Icahn extends the offer again (through Feb 18).

· Zynga valuation tops $7B in latest funding round – the co is talking to investors to raise $250MM in a deal that would value the firm at $7-9B; back in Apr Zynga raised capital at a $4B valuation.  WSJ

· Siemens – in a radical move for the company, Siemens is now considering several large acquisitions in its power networks and plant automation businesses; the co has a cash pile north of $20B and insiders say its deal book is “filled to the brim” w/acquisition candidates.  FT

· GE – General Electric Co. has agreed to buy the well-support division of John Wood Group PLC for $2.8 billion in cash.  GE beat out companies inc. HAL for the business – WSJ

· AIG – the US government is trying to drum up interest for its AIG common share stake among the world’s largest SWFs.  FT

· Whitehaven Coal – a Korean consortium has made an initial offer to buy Whitehaven Coal for $3.5B.  WSJ

· MMI – the co has agreed to buy a small software company, 3LM, making a product that boosts the security of mobile devices powered by Android.  The price is said to be worth tens of millions of dollars.  WSJ

· EMS – is near an agreement to be acquired by private-equity firm Clayton Dubilier & Rice LLC in a leveraged buyout valued at about $3.1 billion.  Clayton Dubilier may pay about $70 a share – Bloomberg

· NYX/Deutsche Boerse – the boards of the companies are meeting in the coming days (NYX on Sun and D Boerse on Tues) to sign off on the transaction; an announcement could come on Tues.  WSJ

· Chi-X Europe and BATS have extended their takeover talks and continue to pursue a deal whereby BATS could wind up buying Chi-X Europe.  Sources say the talks are progressing well.  WSJ

· NDAQ – has become the latest exchange operator to consider a deal – the co is said to be considering its options amid a wave of consolidation.  London Telegraph

· NYX – pos. comments; the deal will prob. wind up going through and shouldn’t face any fatal anti-trust opposition; the NYX shrs now are pricing in most of the transaction’s upside although there is still some left.  Barron’s

· NYX – NY Senator Schumer said he would reserve judgment on whether to back the NYX/D Boerse deal until an official announcement is made.  Schumer said that the NYSE name should be retained.  WSJ

· Exchange M&A – the article speculates that CME could look to buy NDAQ; the article also postulates that NDAQ may look to buy CBOE.  Barron’s

· CLX – Icahn buys a 9% stake in the company – the stake is mostly via stock options; Icahn said in a filing the stock is undervalued and that he may seek discussions w/mgmt.  WSJ

· Seahawk Drilling, one of the largest shallow water rig operators in the GOM, said it was seekingbankruptcy protection and would be selling off its assets to a competitor.  HERO will buy Seahawk’s assets for $100MM ($25MM in cash + 22.3MM shrs).  WSJ

· ANR – positive comments; the MEE deal is a good one and fundamentals in met coal are strong; the stock could easily top $60 in 12 months.  Barron’s

· BGP – Borders Group is in the final stages of preparing a Chapt 11 bankruptcy filing after failing to strike a deal w/its publishers and creditors.  The co could file for protection on Mon or Tues.  BGP could wind up closing 1/3 of its stores.  Some bankers are doubtful whether BGP can be restructured as a standalone company and think it may have to seek liquidation.  WSJ

· Biogen Idec Inc. (BIIB) reported a passive 8.1% stake in drug developer Aveo Pharmaceuticals Inc. (AVEO) – DJ

· SAIC Motor – the state parent of SAIC Motor Corp plans to inject additional assets into its listed subsidiaries as it finalises its move to float all of its auto-related operations – Reuters

· China to ramp up M&A reviews – China will launch a state-level investment review body to ensure merger and acquisition deals struck by foreign firms in the country do not endanger national security – Shanghai Daily.

· LLY to embark on innovative drug funding method – will seed 3 development funds w/~$50MM each w/the goal of raising ~$750MM in total, the balance coming from outside investors.  These funds would in turn shepherd drugs through their development and testing phase before reaching the market.  LLY would be surrendering some of the upside in exchange for bearing less of the development costs of these drugs.  FT

· CHK – the WSJ says Carl Icahn, who owns a large stake in CHK, may be influencing some of the energy company’s recent asset sales.  WSJ

· “mega buy-out” LBO deals struck during the run-up to the financial crisis have performed sig. better than previously thought, outpacing returns generated by stocks during the same period.  FT

· BJ – Former CFO (Frank Forward) has agreed to no longer serve as a consultant to the company (they had made this agreement on Jan 5th); no more payments will be made to Forward. “Effective February 8, 2011, Frank D. Forward and BJ’s Wholesale Club, Inc. (the “Company”) have agreed that Mr. Forward will no longer serve as a consultant to the Company pursuant to the Consulting Agreement between the parties dated January 5, 2011. The agreement has been terminated and no payments were or will be made to Mr. Forward under the agreement with respect to periods after February 6, 2011.”

· JCG – Mason Capital (6.5% shareholder) delivered a letter to JCG’s Board urging the Board to increase the price for the deal & advised the Board that Mason would oppose the JCG deal at the current price.

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