Archive for the ‘Acquisitions’ Category

Consolidations and mergers can have an effect two years after they are complete.

Wells Fargo & Co (WFC.N), the fourth-largest U.S. bank by assets, said on Wednesday it is closing more than 600 Wells Fargo Financial offices and will no longer originate non-prime mortgages.

The bank said the Wells Fargo Financial offices are no longer necessary after its 2008 acquisition of Wachovia Corp and it will offer mortgage services through its other banking locations.

Translation: More layoffs.

Google has acquired Picnik, whose Web-based application lets people import and edit photos in a browser.

“We’re not announcing any significant changes to Picnik today, though we’ll be working hard on integration and new features,” wrote Brian Axe, a Google product management director, in an official blog on Monday.

I wonder if this is one of those acquisitions where they let the product die as they incorporate the technology into something else, or is this going to be one of those rare exceptions?

Crossposted at The Alligator Pit.

Another U.S. based firm bites the dust.

Germany’s Merck KGaA said Sunday that it will pay $6 billion in cash to buy U.S. biotech equipment maker Millipore Corp. in a move to expand its presence beyond drugs and chemicals and into the life science sector.

The deal ends more than a week of speculation over Millipore’s future.

Shares of the Billerica, Mass., company soared last week after reports said lab instrument maker Thermo Fisher Scientific Inc. had made a $6 billion offer. Millipore, which supplies tests and equipment to the biotechnology industry, then confirmed that it was evaluating strategic alternatives — including a possible sale. The company hired advisers Goldman Sachs and Cravath, Swaine & Moore LLP to help it consider its options.

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Sure, they didn’t go out of business, but pretty soon every food manufacturer, drug manufacturer, clothing manufacturer, and auto manufacturer will be based outside our borders. Then what? That’s right, we bite the dust!

Wal-Mart sells millions of DVD’s every year, it’s only natural that they demand a piece of the pie from online rentals. It was just a matter of time.

Wal-Mart Stores is taking another swing at the online movie business with the acquisition of Vudu.
The retail giant announced the deal on Monday following widespread speculation that an acquisition would be coming soon. Financial terms were not disclosed.

I saw this story tonight, and I honestly don’t know how this will work out for the viewer. Are they going to keep the focus of the network on reporting the weather, or will we be seeing runs of Twister and The Perfect Storm from time to time?

NBC Universal and private equity firms Bain Capital and Blackstone Group said on Sunday they agreed to buy The Weather Channel from Landmark Communications.

Terms of the widely expected deal were not disclosed, but sources familiar with the transaction said the price tag was just under $3.5 billion.

I just hope they don’t lose their focus, because I’m not sure a Law Order: Special Weather Unit would work either.

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Oh great. Does this mean they will have yet another battle in NASCAR about the Alltel logo becoming the Verizon logo? We’ve barely begun to recover from the last fiasco (Cingular changing to AT&T).

Vodafone Group PLC confirmed Thursday that Verizon Wireless is in advanced talks about acquiring U.S. carrier Alltel Communications LLC.

News reports have suggested the possible deal would value Alltel, the fifth-largest U.S. wireless carrier by subscribers, at $27 billion.

Vodafone holds a 45 percent stake in Verizon Wireless, which is controlled by Verizon Communications.

I can just hear the fights that this will spark. Oy.

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When companies merge, or one product segment is acquired by another, they sometimes don’t make sense. This one, however, seems to make sense.

J.M. Smucker Co (SJM.N) will acquire Folgers, the largest U.S. coffee business, from Procter & Gamble Co (PG.N) for stock valued at $2.95 billion, the companies said on Wednesday.

The deal will give P&G shareholders a 53.5 percent stake in Smucker, known for its namesake jellies and jams and which also makes Jif peanut butter and Crisco shortening, brands it acquired from P&G in 2002.

Just imagine the new line of flavored coffees that will be coming our way. Ha! I’m just not sure America is ready for Boysenberry Lattes though.

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Have you ever opened a bag of M&M’s and then set a n open pack of spearmint gum next to it? If you leave it there for a few hours, your chocolate will begin to taste minty. Don’t believe me? Try it.

M&M’s candy maker Mars Inc has teamed up with billionaire Warren Buffett to buy No. 1 chewing gum manufacturer Wm Wrigley Jr Co (WWY.N) for $23 billion, creating the world’s largest confectionery company.

The deal, announced on Monday, will give Buffett’s Berkshire Hathaway Inc (BRKa.N) a stake of more than 10 percent in Wrigley, which will become a separate Mars subsidiary. Buffett’s other food holdings include a stake in Kraft Foods Inc (KFT.N).

I find it fascinating that Wrigley is worth $23 billion.

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How much is your company really worth when the company trying to take it over decides to lower their bid?

Microsoft Corp is evaluating its bid for Yahoo Inc because the Internet company may have lost value since Microsoft made its offer, people familiar with the matter said on Friday.

The news, first reported by Reuters, sent Yahoo shares down more than 5 percent in extended trade.

After weeks of silence, recent comments from various sources to journalists suggest the software maker is hardening its stance and pushing Yahoo for action.

Ain’t it funny how everyone thinks the acquisition of Yahoo by Microsoft will ruin Yahoo, yet just a couple months ago everyone said Yahoo was worthless anyway?

I wouldn’t pay money for Yahoo. Then again, I wouldn’t pay money for a lot of things.

Also posted at The Alligator Pit

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So… I guess the whole JPMorgan Chase buying Bear Stearns for just $236 million was just a test.

JPMorgan Chase & Co on Monday raised its takeover offer for Bear Stearns Cos to about five times its original bid and struck a deal to buy nearly 40 percent of the bank, all but locking up the controversial acquisition.

Under the revised deal, JPMorgan will buy 95 million newly issued Bear Stearns shares, and Bear’s board agreed to vote in favor of the offer. With those shares, JPMorgan would own 39.5 percent of Bear Stearns and have secured the backing of Bear Chairman James Cayne, owner of a 3 percent stake in Bear.

“It looks like JPMorgan has this deal sewn up right now,” said John Augustine, chief investment strategist with Fifth Third Investment Advisors.

From the sound of things, I think they had it “all sewn up” last week, but someone must have come in and complained about something that would have soured the whole deal. Why else would they come back and decide to offer 5 times their original amount?

I think even Howie Mandel would say that, compared to a year ago (at $170.23 per share), $10 per share is still a very good deal.

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