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MERGERS & ACQUISITIONS Mark Siciliano
MERGERS & ACQUISITIONS
Mark Siciliano
Definitions Merger – A joining of two companies to
form a new single company. Executives and board may reflect equality upon consummation of the transaction. (Sears/Kmart)
Acquisition – Taking over of nearly all of one company by another entity. The result will usually be the target becoming the subsidiary of the acquiring company (Progress Energy/Duke Energy)
Common Types Tender Offer – Acquiror offers cash or a
combination of cash/stock directly to target shareholders. Offer must remain open for 20 business days and a minimum number of target shares must be tendered
Stock Swap – Shares of acquiring company are offered for each share outstanding of target company. Upon completion target shareholders will have some ownership of larger entity.
Filing Types Tender offer – Acquiror must file an SC
TO-T. Target must respond with an SC 14D9.
Stock Swap – Either acquiror (or newco) must file an S-4; the issuance of new securities.
In both instances a Merger Agreement (usually in the form of an 8-K) and a proxy must be filed. Proxies may accompany the aforementioned documents or may be issued via a DEFM14A/DEFM14C.
Hostile – Acquiror makes offer to board of target company and is rejected. Acquiror continues without support of target
Buyout – An investor group (that may include current management) and makes the acquisition
Bear Hug – Letter is sent to target ‘threatening’ a takeover if the board doesn’t agree to terms of acquiror (usually board representation)
Top Hostile Deals
DateAnnounced
DateEffective Target Name Target Industry Sector Acquiror Name Acquiror Industry Sector Val ($mil) RankVal ($Mil)
11/08/07 Rio Tinto PLC Mining BHP Billiton Ltd Mining 144,521.40
188,241.78
04/25/07 11/02/07ABN-AMRO Holding NV Commercial Banks, Bank Holding Companies RFS Holdings BV Investment & Commodity Firms,Dealers,Exchanges 98,189.19 98,189.19
11/04/99 06/19/00Warner-Lambert Co Drugs Pfizer Inc Drugs 89,167.72 88,771.12
02/11/04 Walt Disney Co Amusement and Recreation Services Comcast Corp Radio and Television Broadcasting Stations 66,754.86 66,551.86
01/26/04 08/20/04Aventis SA Drugs Sanofi-Synthelabo SA Drugs 60,243.38 65,656.73
02/21/06 Endesa SA Electric, Gas, and Water Distribution E ON AG Electric, Gas, and Water Distribution 56,266.49 81,761.07
07/19/99 Total Fina SA Oil and Gas; Petroleum Refining Elf Aquitaine Oil and Gas; Petroleum Refining 51,135.18 54,087.88
07/05/99 03/27/00Elf Aquitaine Oil and Gas; Petroleum Refining Total Fina SA Oil and Gas; Petroleum Refining 50,070.05 55,339.64
08/17/10 Potash Corp of Saskatchewan Mining BHP Billiton PLC Metal and Metal Products 39,761.24 43,180.46
09/24/99 National Westminster Bank PLC Commercial Banks, Bank Holding Companies Bank of Scotland PLC Commercial Banks, Bank Holding Companies 38,814.91 38,814.91
Top Deals 2012
DateAnnounced
DateEffective Target Name Target Industry Acquiror Name Acquiror Industry Val ($mil)
RankVal ($Mil)
02/02/12 Xstrata PLC Mining Glencore International PLC
Wholesale Trade-Durable Goods 37,439.08
45,803.10
05/09/12 Banco Financiero y de Ahorros
Commercial Banks, Bank Holding Companies
FROB Investment & Commodity Firms,Dealers,Exchanges
23,785.68
23,785.68
10/15/12 Sprint Nextel Corp Telecommunications SoftBank Corp Telecommunications 23,331.94
23,331.94
06/29/12 Grupo Modelo SAB de CV Food and Kindred Products Anheuser-Busch Inbev Food and Kindred Products 20,093.45
20,093.45
07/23/12 Nexen Inc Oil and Gas; Petroleum Refining CNOOC Canada Holding Ltd
Investment & Commodity Firms,Dealers,Exchanges
19,119.31
17,665.59
08/22/12 China Telecom Corp-3G Assets
Telecommunications China Telecom Corp Ltd Telecommunications 18,047.28
18,047.28
06/13/12 Philip Morris Intl Inc Tobacco Products Philip Morris Intl Inc Tobacco Products 18,000.00
18,000.00
03/13/12 JPMorgan Chase & Co Commercial Banks, Bank Holding Companies
JPMorgan Chase & Co Commercial Banks, Bank Holding Companies 15,000.00
15,000.00
03/29/12 06/29/12
International Power PLC Electric, Gas, and Water Distribution Electrabel SA Electric, Gas, and Water Distribution 12,855.95
12,855.95
06/12/12 Johnson & Johnson Drugs Janssen Pharmaceuticals Inc
Drugs 12,656.33
12,656.33
Challenging Deals DateAnnounced
DateEffective Target Name Target Industry Sector Acquiror Name Acquiror Industry Sector
Val ($mil)
RankVal ($Mil)
03/19/07 ABN-AMRO Holding NV Commercial Banks, Bank Holding Companies
Barclays PLC Commercial Banks, Bank Holding Companies 92,606.80
92,606.80
04/25/07 11/02/07
ABN-AMRO Holding NV Commercial Banks, Bank Holding Companies
RFS Holdings BV Investment & Commodity Firms,Dealers,Exchanges
98,189.19
98,189.19
03/22/99 MediaOne Group Inc Radio and Television Broadcasting Stations
Comcast Corp Radio and Television Broadcasting Stations 58,511.75
58,631.73
04/22/99 06/15/00
MediaOne Group Inc Radio and Television Broadcasting Stations
AT&T Corp Telecommunications 49,278.87
48,906.87
09/24/99 National Westminster Bank PLC
Commercial Banks, Bank Holding Companies
Bank of Scotland PLC Commercial Banks, Bank Holding Companies 38,814.91
38,814.91
11/29/99 03/13/00
National Westminster Bank PLC
Commercial Banks, Bank Holding Companies
Royal Bank of Scotland Group
Commercial Banks, Bank Holding Companies 38,412.86
38,412.86
05/17/99 US WEST Inc Telecommunications Global Crossing Ltd Telecommunications 41,104.96
51,103.96
06/14/99 06/30/00
US WEST Inc Telecommunications Qwest Commun Intl Inc Telecommunications 56,307.03
58,825.03
11/04/99 Warner-Lambert Co Drugs American Home Products Corp
Drugs 75,563.15
75,476.85
11/04/99 06/19/00
Warner-Lambert Co Drugs Pfizer Inc Drugs 89,167.72
88,771.12
Biggest Buyouts DateAnnounced
DateEffective Target Name Target Industry Sector Acquiror Name Acquiror Industry Sector Val ($mil)
RankVal ($Mil)
07/24/06 11/17/06
HCA Inc Health Services Hercules Acquisition Corp
Investment & Commodity Firms,Dealers,Exchanges
32,918.951
32,146.951
05/29/06 05/30/07
Kinder Morgan Inc Electric, Gas, and Water Distribution Knight Holdco LLC Investment & Commodity Firms,Dealers,Exchanges
21,609.718
27,489.718
03/09/07 06/26/07
Alliance Boots PLC Miscellaneous Retail Trade AB Acquisitions Ltd Investment & Commodity Firms,Dealers,Exchanges
19,604.189
21,396.010
05/01/06 01/26/07
ARAMARK Corp Business Services Investor Group Investment & Commodity Firms,Dealers,Exchanges
8,255.724
8,216.973
12/04/06 11/07/07
Station Casinos Inc Hotels and Casinos Fertitta Colony Partners LLC
Investment & Commodity Firms,Dealers,Exchanges
4,756.885
8,108.815
05/10/07 07/27/07
Actavis Group hf Drugs Novator Partners LLP Investment & Commodity Firms,Dealers,Exchanges
4,629.423
6,389.374
10/17/03 05/15/04
Chelsfield LTD Investment & Commodity Firms,Dealers,Exchanges
Duelguide PLC Investment & Commodity Firms,Dealers,Exchanges
3,413.399
3,403.192
01/28/07 07/20/07
Laureate Education Inc
Educational Services Investor Group Investment & Commodity Firms,Dealers,Exchanges
3,384.664
3,704.229
03/20/06 09/01/06
Kerzner International Ltd
Hotels and Casinos K-Two Holdco Ltd Investment & Commodity Firms,Dealers,Exchanges
3,077.063
3,634.714
06/17/08 06/17/08
Converteam Group SAS
Electronic and Electrical Equipment Investor Group Investment & Commodity Firms,Dealers,Exchanges
2,946.193
2,946.193
Biggest Stock Swaps DateAnnounced
DateEffective Target Name Target Industry Sector Acquiror Name Acquiror Industry Sector Val ($mil) Rank ($Mil)
11/14/99 06/19/00Mannesmann AG Telecommunications Vodafone AirTouch PLC Telecommunications 202,785.13
202,785.13
01/10/00 01/12/01Time Warner Motion Picture Production and Distribution America Online Inc Business Services 164,746.86
181,568.86
11/04/99 06/19/00Warner-Lambert Co Drugs Pfizer Inc Drugs 89,167.72 88,771.12
12/01/98 11/30/99Mobil Corp Oil and Gas; Petroleum Refining Exxon Corp Oil and Gas; Petroleum Refining 78,945.79 85,125.79
01/17/00 12/27/00SmithKline Beecham PLC Drugs Glaxo Wellcome PLC Drugs 75,960.85 78,775.11
10/28/04 08/09/05Shell Transport & Trading Co
Oil and Gas; Petroleum Refining Royal Dutch Petroleum Co Oil and Gas; Petroleum Refining 74,558.58 80,304.71
03/05/06 12/29/06BellSouth Corp Telecommunications AT&T Inc Telecommunications 72,671.00 89,432.00
04/06/98 10/08/98Citicorp Commercial Banks, Bank Holding Companies
Travelers Group Inc Insurance 72,558.18 72,558.18
05/11/98 10/08/99Ameritech Corp Telecommunications SBC Communications Inc Telecommunications 62,592.54 70,394.54
04/13/98 09/30/98BankAmerica Corp Commercial Banks, Bank Holding Companies
NationsBank Corp,Charlotte,NC
Commercial Banks, Bank Holding Companies
61,633.40 61,633.40
Top Tender Offers DateAnnounced
DateEffective Target Name Target Industry Sector Acquiror Name Acquiror Industry Sector Val ($mil)
RankVal ($Mil)
07/21/08 03/26/09
Genentech Inc Drugs Roche Holding AG Drugs 46,694.84
46,694.84
08/29/10 04/08/11
Genzyme Corp Drugs Sanofi-Aventis SA Drugs 21,230.16
20,856.50
04/09/03 12/22/03
General Motors Corp Transportation Equipment General Motors Corp Transportation Equipment 15,432.27
15,432.27
01/18/11 05/25/11
Cargill Inc Food and Kindred Products Cargill Inc Food and Kindred Products 14,851.63
14,851.63
04/23/07 06/18/07
MedImmune Inc Drugs AstraZeneca PLC Drugs 14,554.63
14,681.23
12/22/06 02/27/08
News Corp Motion Picture Production and Distribution News Corp Motion Picture Production and Distribution 14,195.59
14,195.59
08/30/00 11/03/00
Donaldson Lufkin & Jenrette
Investment & Commodity Firms,Dealers,Exchanges
CSFB Investment & Commodity Firms,Dealers,Exchanges
13,528.94
13,528.94
11/13/05 12/23/05
Georgia-Pacific Corp Wood Products, Furniture, and Fixtures Koch Forest Products Inc
Paper and Allied Products 12,634.05
20,460.05
07/14/11 08/19/11
Petrohawk Energy Corp Oil and Gas; Petroleum Refining BHP Billiton PLC Metal and Metal Products 11,776.25
15,556.53
09/28/98 08/12/99
DuPont Chemicals and Allied Products DuPont Chemicals and Allied Products 11,677.54
11,677.54
Top US Deals – All Time DateAnnounced
DateEffective Target Name Target Industry Sector Acquiror Name Acquiror Industry Sector Val ($mil) RankVal ($Mil)
01/10/00 01/12/01
Time Warner Motion Picture Production and Distribution
America Online Inc Business Services 164,746.86
181,568.86
10/05/99 Sprint Corp Telecommunications MCI WorldCom Telecommunications 113,643.77
125,474.67
11/04/99 06/19/00
Warner-Lambert Co Drugs Pfizer Inc Drugs 89,167.72 88,771.12
12/01/98 11/30/99
Mobil Corp Oil and Gas; Petroleum Refining Exxon Corp Oil and Gas; Petroleum Refining 78,945.79 85,125.79
11/04/99 Warner-Lambert Co Drugs American Home Products Corp
Drugs 75,563.15 75,476.85
03/05/06 12/29/06
BellSouth Corp Telecommunications AT&T Inc Telecommunications 72,671.00 89,432.00
04/06/98 10/08/98
Citicorp Commercial Banks, Bank Holding Companies
Travelers Group Inc Insurance 72,558.18 72,558.18
07/08/01 11/18/02
AT&T Broadband & Internet Svcs
Radio and Television Broadcasting Stations
Comcast Corp Radio and Television Broadcasting Stations
72,041.15 72,041.15
01/26/09 10/15/09
Wyeth Drugs Pfizer Inc Drugs 67,285.70 64,479.70
02/11/04 Walt Disney Co Amusement and Recreation Services Comcast Corp Radio and Television Broadcasting Stations
66,754.86 66,551.86
Unusual Deals DateAnnounced
DateEffective Target Name Acquiror Name Val ($mil) Acquisition Technique
01/27/06 08/08/06
Arcelor SA Mittal Steel Co NV 32,240.47
Reverse TakeoverTender OfferTender/MergerWhite SquireStock SwapMerger of EqualsBear HugUnsolicited Deal
03/14/07 01/23/09
Loring Ward International Ltd
Werba Reinhard Holdings Ltd
86.99Going PrivateScheme of ArrangementBear HugUnsolicited Deal
02/01/08 Yahoo! Inc Microsoft Corp 43,711.60
Proxy FightStock SwapBear HugUnsolicited Deal
02/12/09 Rio Tinto Ltd Chinalco 2,627.00Open Market PurchaseDawn Raid/Sweep The Street
08/29/10 04/08/11
Genzyme Corp Sanofi-Aventis SA 21,230.16
Tender OfferTender/MergerBear HugRumored DealUnsolicited Deal
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