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 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

4 BuzzWorthy Cannabis Stocks And Some Smoking Derivative Plays

The 10 Healthiest Fast Food Chains in America to Dine At

The 5 Most Expensive Cat Food Brands You Can Spoil Your Kitty With

The 6 Best eCommerce Platforms for Small Businesses

The 10 Worst Mistakes an Entrepreneur Can Make

The 5 Most OP Characters in League of Legends to Carry Games and Crush Foes With

The 5 Best Foods to Eat Before Running that Will Help You Pound the Pavement

10 Glaring Plot Holes in The Walking Dead that a Zombie-Filled Bus Could Drive Through

The 5 Biggest Celebrity Stoners Who Love Their Reefer

The 10 Most Overrated Movies Of All Time by Out-of-Touch Critics

Top 6 Least Expensive Cruise Destinations For 2015 that Will Take You to Paradise

10 States with Lowest Substance Abuse Rates in America

The 14 Most Watched TV Finales Ever

The 10 Best Selling Role Playing Games of All Time for PC

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

Top 6 Cities For The Ultra Rich to Live in Comfort

10 Cities with High Demand for Nurses

6 of the Worst Greeting Card Messages Ever Crafted

How 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

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!