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

10 Most Influential Papers In Economics

Top 8 Biggest Charities in the US

10 Worst Celebrity Career Moves Ever

Top 10 Best Paid Tennis Stars in the World

10 Cities with High Demand for Nurses

6 of the Worst Greeting Card Messages Ever Crafted

6 Ways to Make Money in ArcheAge and Build Your Empire

10 Foods To Eat To Lower Cholesterol Levels

The 10 Most Hated Television Characters of All Time

The 30 Worst Halloween Costume Ideas Ever Brought to Horrible Life

10 Vocational Skills in Demand Today with Jobs Waiting to be Filled

10 Best Places to Visit in Central and South America

The 10 Greatest Empires in History Which Nearly Conquered the World

The 6 Cheapest Boarding Schools In America 2015

5 Clear Reasons LoL is Better than DotA, Continues to Rule MOBAs

The Only 9 Teams with a Chance to Win the Super Bowl

The 15 Most Common Phobias in America that Induce Fits of Panic

Top 6 Least Expensive Tourist Destinations in 2014

Jim Goetz, Peter Fenton, Jim Breyer: Top 6 Venture Investors for 2014

Top 15 Billionaires in 2014

5 Pitfalls To Avoid When Buying a Franchise

Top 20 Medical Schools in the US – 2014 Rankings

4 Business Strategies that Turned Jamie Oliver into the World’s Richest Chef

6 Qualities That Make You A Good Team Player

10 High Paying Seasonal Jobs in America this Holiday Season

The 10 Busiest Shipping Lanes in the World

5 Most Valuable Brands in China

The 10 States with Highest Substance Abuse Rates Crippling Their Populace

The Top 10 Things to Do Before You Die That Will Echo for Eternity

The 10 Best Selling Items on Etsy

Top 10 Things to Do in Tokyo, the Greatest City in the World

10 Mistakes on Social Media that Can Harm You and Will Probably Get You Canned

The 10 Best Cities to Find Jobs in 2014

The 10 Most Controversial Songs Of All Time to Hit (and get Banned from) the Airwaves

The 20 Biggest IPOs in US History

The 10 Best Places to Visit in Mexico that Are Beautiful and Safe

7 Bad Habits that Age You Beyond Your Years

The 40 Best Fortune Cookie Sayings That Will Leave You Bemused, Befuddled, or Beguiled

10 Foods to Eat Before a Workout to Make Every Drop of Sweat Count

The 5 Best Documentaries On Netflix You Must See

The Most Heartwarming and Inspirational Story Of This Halloween Season, It Will Make You Cry and Jump For Joy

10 Best Party Songs of All Time to Bring the House Down With

5 New World Order Conspiracy Theories that Will Strangle the World

The 10 Highest Rated Movies of 2014

The 10 Largest Container Shipping Companies in the World

The 10 Largest Armies in the World: Who Should We Be Afraid Of?

Best Warren Buffett Quotes on Money You Need to Hear

The 10 Highest Suicide Rates by Profession

The 20 Most Underrated Movies of All Time

The 10 Fastest Growing Companies in America

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!