M&A Activity, Merger Arbitrage, and Hostile Takeovers

How Google- Motorola Deal Came Together (DealBook)
It took less than seven weeks, but it became more expensive quickly.
From the first discussions in early July to a formal announcement on Aug. 15, Google moved swiftly this summer to secure a $12.5 billion takeover of Motorola Mobility, according to a filing submitted on Tuesday. The search giant, which was eager to own Motorola’s extensive patent portfolio, was also willing to pay up.

Sergey Brin

ConAgra Gives Ralcorp a Deadline to Accept Its Offer (DealBook)
After months of unsuccessfully trying to persuade Ralcorp to accept several takeover proposals, ConAgra on Tuesday set a Monday deadline for the food company to accept its $5.2 billion merger bid.
If Ralcorp does not begin deal talks by 5 p.m. that day, ConAgra will withdraw its $94-a-share all-cash offer.
Shares in Ralcorp plummeted 8.9 percent in after-hours trading Tuesday, to $77.60. They have consistently remained below ConAgra’s bid.

Jakks Pacific receives takeover bid from Oaktree Capital (LA Times)
Jakks Pacific Inc., the Malibu toy maker, has received a $544-million takeover bid from Oaktree Capital Management after the Los Angeles buyout firm failed to work out a friendly deal with the company.
In a letter to Jakks’ board Tuesday, Oaktree made an offer to take Jakks private for $20 a share in cash, a 25% premium on the toy maker’s closing stock price of $16 that day. The company said it had been trying to work out a deal with the company since March; Oaktree Funds owns about 4.9% of Jakks already, according to the Associated Press.

Avis Abandons Its Bid for Dollar Thrifty (DealBook)
The Avis Budget Group, which made an offer last year for Dollar Thrifty, is walking away from its bid, potentially paving the way for Hertz Global.
On Wednesday, Avis Budget announced in a filing that it is bowing out of the bidding process, citing current market conditions.
The decision comes less than a month after Dollar Thrifty called on Avis and Hertz to submit their “best and final” offers. At the time, Hertz had the superior bid, with a cash-and-stock offer valued at $1.91 billion — significantly higher than the Avis bid of about $1.55 billion.

Nestle Using Strong Franc in Takeovers Puts Mead Johnson in Play: Real M&A (Bloomberg)
Nestle SA (NESN) is turning to takeovers after more than $10 billion in stock repurchases failed to stem a decline in shareholder value. That may put Mead Johnson Nutrition Co. (MJN) in its sights.
Nestle, which spent 10 billion Swiss francs ($11.4 billion) on buybacks in the past 14 months, will stop buying shares and may instead pursue acquisitions, Chief Financial Officer James Singh said last month after the currency reached a record. The world’s largest food company lost 5.4 percent during the buyback period as its rivals gained. While Nestle’s revenue is projected to drop this year, the franc’s appreciation — the biggest of any major currency in the past year — is now making takeovers cheaper than ever, James Investment Research Inc. said.

blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

The 10 Richest Stand Up Comedians in the World

The 10 Fattest Countries in the World

The 5 Best Summer Jobs for Teens

The 10 Most Religious Countries in the World Keeping the Faith

The 10 Most Educated Countries in the World

The 10 Most Popular Cell Phones in the World

The 10 Drunkest Countries in the World

The 10 Most Expensive Private Schools in the World

The 10 Smallest Countries in the World

Walking Dead Season 5 Spoilers You’ll Wish You Didn’t Know

The 10 Poorest Countries in the World

The 10 Greenest Countries in the World

The Top 10 Countries with the Highest Population in the World

The 10 Most Visited Countries in the World

The Top 10 Star Wars Characters in the Iconic Series

The 10 Most Expensive Android Phones in the World

5 Reasons Why The Illuminati Is Real and a Threat to Society

The 6 Scariest Halloween Costumes Ever Screamed At

The 4 Biggest Hedge Fund Managers in the World Today

The 15 Most Densely Populated Countries in the World

The 10 Biggest Tea Drinking Countries in the World

Top 6 Ways to Improve Your Checkout Process and Close Sales

The 5 Most Profitable Online Businesses You Can Start Today

The 20 Most Profitable Hospitals in the US

The 5 Most Profitable Home Businesses to Start

The 7 Teams that Will Win the Stanley Cup in 2015

The Top 10 Most Expensive Digital Cameras to Snap Stunning Shots With

The 10 Highest Quality Fast Food Restaurants In America Today

The 8 Best Halloween Decorating Ideas to Spook Up Your House

10 Marvel Women that Should Get a Movie Right Now

The 20 Best Remixes of Popular Songs that Will Make You Forget the Originals

7 Most Expensive Cities in the World

5 Least Expensive Cities in the World

10 Celebrities Who Believe In Scientology

10 High Margin Food Products to Build a Business Around

The 10 Most Expensive Clothing Stores in the United States to Get Decked Out At

The 5 Biggest Kickstarter Scams That Swindled Backers’ Donations

The 10 Most Expensive Boarding Schools In the World

50 Crazy Facts About Japan You Won’t Believe

Top 10 Least Expensive Hybrid Cars to Save the Planet With

The 10 Biggest ‘Gate’ Controversies in History

The 10 States with the Highest Nursing Shortages Leaving Their Hospitals Depleted

The 10 Best Value Investment Blogs that Every Investor Must Read

The 6 Cheapest Boarding Schools in Europe 2015

The 5 Most Expensive Cars To Insure in the World

The 10 Most Common Genetically Modified Foods

10 Self-Made Billionaires Who Came From Nothing

The 10 Most Expensive Cities to Live in North America

The 13 Most Expensive Headphones in the World to Represent

The Top 20 Wealthiest Soccer Teams in 2014

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!