acquisition posts
FeedPosted Feb 24th 2011 11:00AM by Trefis (RSS feed)
Filed under: Amer Intl Group (AIG), MetLife Inc. (MET), Prudential Financial (PRU)

MetLife (
MET) increased its international presence substantially after the acquisition of ALICO in 2010. MetLife competes with AIG (
AIG), The Hartford (
HIG), Prudential Financial (
PRU) and New York Life Company.
MetLife reported a 36% increase in premiums, fees and other revenues from the insurance business outside of the U.S. in the year 2010, mainly due to the addition of about $836 million from ALICO's one month operations. MetLife acquired ALICO for about $15.5 billion from AIG as a part of its strategy to grow internationally. The acquisition has enabled MetLife to serve 90 million customers in over 60 countries and has significantly boosted MetLife's position as a leading insurance company in the U.S, Japan, Latin America, Asia Pacific, Europe and the Middle East.
Continue reading ALICO Accelerates MetLife's International Growth
Posted Jan 31st 2011 2:00PM by Brent Archer (RSS feed)
Filed under: Major Movement, Deals, Bad News, Options, Technical Analysis

Alpha Natural Resources (
ANR -
option chain) stock is trading lower today after the company announced over the weekend that
it will acquire Massey Energy (
MEE) in a $7.1 billion cash and stock deal. Under the deal, MEE shareholders will receive 1.025 shares of ANR plus $10 in cash for each MEE share held. Since this deal values MEE about 10% higher than its closing price from Friday, ANR stock is headed lower since it is essentially overpaying to buy Massey.
This kind of movement is typical of a buyout situation, and ANR would not enter the deal if they didn't think it was a good idea in the long-term. However, the short-term is a different story, and if you think this stock won't be rising too far in the coming months, then it could be a good time to look at a short-term bearish hedged play on ANR.
Continue reading What Are the Implications of ANR Buying Massey Energy?
Posted Dec 30th 2010 11:00AM by Elizabeth Harrow (RSS feed)
Filed under: Rumors, Options, Technical Analysis, Anadarko Petroleum (APC)
Shares of Anadarko Petroleum (APC) gapped higher right out of the gate Thursday morning, thanks to a report that BHP Billiton (BHP) may be eyeing the firm as a potential takeover target. According to the U.K.'s Daily Mail, BHP could be prepping an offer worth $90 per share to acquire Anadarko. However, neither company has issued a formal response to the speculation.
After jumping to a new annual high of $76.50 bright and early Thursday morning, APC is on pace to notch a weekly finish atop the $70 level for the first time since April 23. In fact, if the shares can maintain their positive momentum through Friday's close, the shares could stage their first weekly victory north of $75 since June 2008.
Continue reading Anadarko Petroleum Bounces Higher on Buyout Buzz
Posted Nov 17th 2010 11:30AM by Elizabeth Harrow (RSS feed)
Filed under: Major Movement, Earnings Reports, Analyst Upgrades and Downgrades, Options, Technical Analysis, Suntech Power Hldgs ADS (STP)
Suntech Power (STP) is taking a post-earnings plunge, as traders pan the company's third-quarter report.
Wednesday morning, Suntech said its third-quarter profit climbed 11% to $33.1 million, or 18 cents per American depositary share (ADS), while revenue rose 57% to $743.7 million. Gross margin for the quarter contracted to 16.4% from 17.8%, due to lower selling prices.
Continue reading Suntech Power Tumbles to New Annual Low Following Earnings
Posted Sep 17th 2010 8:30AM by Mark Fightmaster (RSS feed)
Filed under: Deals, Competitive Strategy, Johnson and Johnson (JNJ)

Early Friday, American health care giant Johnson & Johnson (
JNJ) announced that it is in "advanced talks" to acquire
Dutch biotech firm Crucell NV. According to the report, the deal (which would help strengthen JNJ's vaccine business) is going to cost $2.29 billion. JNJ already owns a 17.9% stake in Crucell and will be offering €24.75 in cash for the remaining 82%. The offer price represents a 58% premium from Crucell's Thursday close.
In a joint statement, the companies noted expectations for "Crucell's strength in the manufacture, discovery and commercialization of vaccines would create a strong platform for Johnson & Johnson in the vaccine market." According to the Associated Press, JNJ has roughly $64 billion in annual sales and is the "world's biggest and most broadly based health care company."
Continue reading Johnson & Johnson Sets Sites on Crucell: What Would This Mean for Stock?
Posted Jul 15th 2010 3:00PM by Wade Hansen (RSS feed)
Filed under: Deals, BP p.l.c. ADS (BP)

As the economy begins to gain some traction, we are starting to see more M&A activity. This is a good sign as it shows credit markets are thawing.
Today, we saw three key acquisition announcements.
BP (
BP) is making a move to try and polish up its tarnished reputation by going green. BP announced it will be buying Verenium Corporation's (
VRNM) cellulosic biofuels business-- fuels made from grasses, canes, softwoods and other biomass -- including the company's facilities in Jennings, LA and San Diego, CA for $98.3 million.
Continue reading BP, ProSight and Carlyle Group Make Key Acquisitions
Posted Jun 28th 2010 9:00AM by Mark Fightmaster (RSS feed)
Filed under: Deals

Noble Corporation (
NE) announced Monday morning that it has entered a
definitive merger agreement with FDR Holdings, also known as Frontier. The deal values the joint venture at $2.16 billion. NE expects the deal to close by the end of July, and noted that it will be accretive to cash flow immediately and to earnings in 2011. NE will acquire a fleet of roughly 23 rig years of contracts that generate roughly $3.2 billion in gross contract backlog.
NE CEO David W. Williams sated that, "Frontier is an excellent strategic addition to NE's existing asset, customer and employee base ... This acquisition is a highly complementary extension of our mid- and deepwater presence and positions us for additional growth in new market segments that can provide further opportunities for Noble and our customers."
Continue reading Noble to Acquire Frontier Drilling
Posted Jun 24th 2010 10:40AM by Mark Fightmaster (RSS feed)
Filed under: Berkshire Hathaway (BRK.A), Technical Analysis

Warren Buffett decided to stock up on Tesco (
TSCO) shares earlier this week, MarketWatch
reported this morning. Buffett's Berkshire Hathaway (BRK.A, BRK.B) purchased roughly 2 million additional shares, boosting to group's stake in the British supermarket past 3%.
Buffett's decision comes two weeks after the company announced a succession plan, naming Philip Clarke as chief executive effective in March. In addition, Tesco released first-quarter earnings a week ago, receiving a mixed reaction from analysts as same-store sales were mostly flat.
Continue reading Warren Buffett Stocks Up on Tesco
Posted Apr 13th 2010 12:30PM by Elizabeth Harrow (RSS feed)
Filed under: Palm Inc (PALM), Options
There's been a lot of chatter lately about a potential buyout for Palm Inc. (PALM), with various reports pointing to HTC and Lenovo as possible suitors for the parent of the Pre and Pixi smartphones. However, one long-term option trader on Monday placed a confident bet against a white-knight bid for PALM by opening a sizable, out-of-the-money put position on the equity.
Around midday Monday, a block of 6,500 contracts slipped across the tape on PALM's January 2011 2.50 put, which is currently out of the money by about three points. These puts changed hands at the ask price of $0.25, suggesting they were purchased.
Continue reading Options Bear Places Massive Bet Against Palm
Posted Apr 10th 2010 2:40PM by Tom Johansmeyer (RSS feed)
Filed under: Deals, Internet, Apple Inc (AAPL), Technology
Last year, Twitter said it had two goals for 2010: generate revenue and make acquisitions. At the time, the company was still sitting on a significant portion of its last round of capital, and given the $20 million annual burn rate revealed late last year -- plus the revenue it's generating -- it's unlikely that Twitter has had to deplete its coffers. So, Twitter has cash to put to work, and now we're seeing what that means.
On its blog, Twitter announced Friday that it has entered into an agreement with Atebits (aka Loren Brichter) to acquire Tweetie, which is one of the top Twitter clients for the Apple (AAPL) iPhone. In addition to acquiring the application, Twitter is also picking up talent. Brichter's efforts were good for a 2009 Apple Design Award, and he'll be part of future efforts to get Twitter for the iPad off the ground.
Continue reading Twitter Acquires Tweetie, Loren Brichter
Posted Jan 19th 2010 10:20AM by Mark Fightmaster (RSS feed)
Filed under: Deals

This morning, Tyco International (
TYC) announced that it
will purchase Brink's Home Security Holdings (
CFL) for $2 billion. The $2 billion will be comprised of cash and stock. TYC noted that the deal will combine two of the top companies in North American residential and commercial security under the ADT banner.
Brink's/Broadview Security reportedly has more than 1.3 million recurring revenue accounts in North America, with revenue of roughly $565 million. This is roughly a quarter of ADT's 4.8 million accounts.
Continue reading Tyco International Purchases Brink's Home Security
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