Tag Archives: M&A

Paper Maker Settles With Justice Department Over Acquisition

Verso Paper said on Wednesday that it would sell two paper mills to settle a government antitrust lawsuit over a $1.4 billion acquisition.

Nearly a year ago, Verso announced that it would acquire NewPage Holdings, which had emerged from bankruptcy in 2012, for $1.4 billion in cash and debt.

A NewPage paper mill that produces glossy paper used for catalogs and magazine.

In a lawsuit filed on Wednesday in the United States District Court for the District of Columbia, the Justice Department said that a combination of the two paper makers would eliminate competition in the supply of high-quality coated publication papers used for magazines, catalogs, brochures and the like in North America. Their combined  business for two types of coated papers accounts for more than $5 billion in sales.

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Thomson Reuters Introduces New Merger Arbitrage Dataset to Support Event-Driven Hedge Fund Managers

Thomson Reuters, the world’s leading source of intelligent information for businesses and professionals, today announced the launch of a new mergers and acquisitions (M&A) dataset to support event-driven hedge fund managers. Thomson Reuters M&A data provides the global asset management and alternative investment management industries with comprehensive coverage of M&A activity worldwide.

Thomson Reuters M&A data incorporates over 900,000 M&A events announced since the late 1970s, currently available to clients through a flexible suite of datafeed offerings. This comprehensive M&A transaction coverage is now accompanied by a new event history companion dataset that features time series data through the evolution of the deal. The multidimensional view of the dates, valuations and events, from announcement to completion, empowers advanced quantitative modeling of completion probability, timeframes and risks over time while delivering competitive insight to asset managers and alternative asset managers worldwide.

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Time Warner, CBS Seen as Candidates for Merger: Real M&A

Time Warner Inc. (TWX) and CBS Corp. (CBS) have flirted for years. A marriage now may make more sense than ever.

CBS shares, while trading near thehighest price since the company andViacom Inc. (VIAB) split seven years ago, fetch the lowest valuation versus earnings when compared with its five largest U.S. peers, according to data compiled by Bloomberg. Gabelli & Co. said buying the most-watched broadcast network would give Time Warner, owner of cable channels such as CNN and TNT, more negotiating leverage to win higher fees from pay-television systems that carry its programming.

A merger “makes a lot of sense,” Michael Morris, a Richmond, Virginia-based analyst at Davenport & Co., said in a telephone interview. “With the amount of collaboration they do, investors see it as a possibility as well.”

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Mergers and acquisitions of PSBs to be the main focus at ‘Gyan Sangam’

Mergers and acquisitions of PSU banks will be a major theme at the two-day ‘Gyan Sangam’ on January 2-3, a retreat of chiefs of financial institutions which will be attended by the Prime Minister, Finance Minister and Reserve Bank Governor.

The first of its kind retreat of bankers and insurers to be held in Pune will also deliberate on financial inclusion and direct benefit transfer scheme, two focus areas of the new government.

Pm Modi and Arun Jaitley. PTI.

At the retreat there will be sessions by prominent experts, including global consultancy firms, group
discussions, sharing and demonstration of best practices and technologies.

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Datalogix is important element of Oracle’s acquisition strategy

On December 22, 2014, Oracle (ORCL) announced the acquisition of Datalogix, a provider of digital marketing data as a service (or DaaS). Datalogix connects offline consumer spending data with digital marketing efforts with the goal of tracking advertising, its influence on consumers, and the resultant returns.

Datalogix has more than 650 customers and 1,500 data partners that track $2 trillion in consumer spending. Advertisers and digital media publishers such as Lenovo, Google (GOOG), (GOOGL), Facebook (FB), Twitter (TWTR), Ahold, Kraft (KRFT), and Ford use Datalogix to enhance their media presence. The company provides purchase-based targeting that leads to more revenue generation.

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Merger Creates Huge US Ethanol Maker

Late Wednesday afternoon, Pacific Ethanol Inc. (NASDAQ: PEIX) announced that it had entered a definitive merger agreement with a Midwest-based producer of ethanol, Aventine Renewable Energy Holdings, in an all-stock deal valued at approximately $190 million. The combination will more than double Pacific Ethanol’s production capacity and create the fifth-largest ethanol maker in the United States.

Aventine, like Pacific Ethanol, was a high-flying, NYSE-traded alternative energy company in the middle of the last decade. In 2009, Aventine filed for bankruptcy protection and began trading in the over-the-counter market. The company emerged from bankruptcy in 2010.

Thin margins due to the falling price of crude have stressed ethanol makers in the second half of 2014, which is probably what made this deal attractive to both parties. Pacific Ethanol got a good price and Aventine survived.

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Oracle’s strategic acquisitions in marketing cloud space

According to Yahoo Finance, strategic acquisition extends public cloud portfolio

As explored earlier in this series, Oracle (ORCL) acquired Datalogix with the goal of strengthening its presence in the digital marketing space. Oracle’s dominance in the database market enables it to successfully market its IaaS, PaaS, and SaaS products.

Through the Datalogix acquisition, Oracle aims to extend its public cloud strategy to combine IaaS, PaaS, SaaS, and Data as a service (or DaaS) on a common cloud. In the past, Oracle made strategic acquisitions in the marketing cloud space to strengthen its presence in the cloud space.

BlueKai expands Oracle’s digital market suite

In early 2014, Oracle acquired BlueKai, a cloud-based marketing provider, to boost its digital portfolio as shown below. BlueKai’s Data Management Platform centrally organizes a company’s customer and audience data in the cloud to help implement personalized marketing campaigns across all channels. The Datalogix deal complements Oracle’s acquisition of BlueKai and strengthens its digital marketing suite.

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Ve acquires GDM Digital in eight figure deal

GDM currently works with companies including Microsoft, Coral, Lufthansa, IBM, Virgin Active and Audi. All 42 staff at GDM will be retained, bringing Ve’s total staff numbers to over 500, working in 18 offices worldwide.

GDM, which specialises in performance trading and real-time biddable media, will now offer clients the VePlatform to acquire, engage and convert customers at every stage of the e-commerce journey, in addition to a complete digital advertising service.

Ve is looking to expand its digital marketing offering

David J. Brown, CEO and co-founder of Ve, said: ‘What sets GDM apart from other ad tech companies is the incredible skill set and expertise of its staff. With all 42 of GDM’s talented staff on board, Ve will be able to expand its digital marketing offering rapidly.

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Spectrum Brands (SPB) Announces Completion of P&G’s (PG) European Pet Food Business Purchase

Spectrum Brands (NYSE: SPB) announced it has completed the acquisition of Procter & Gamble’s (NYSE: PG) European pet food business, consisting of the complementary IAMS® and Eukanuba® premium brands for dogs and cats. Financial terms of the accretive transaction were not disclosed. A definitive agreement was announced on September 23.

“The addition of these leading brands in an adjacent category better balances the product portfolio of our global pet business while significantly expanding its product offerings and geographic footprint,” said Dave Lumley, Chief Executive Officer of Spectrum Brands Holdings.

“We see major cross-selling opportunities given the strength of our existing aquatics and companion animal supplies business in Continental Europe and the particularly strong position of these dry pet food brands in the U.K.,” Mr. Lumley said. “Over the next few years, we also expect important synergies in overhead, SG&A, and manufacturing and distribution.”

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The new rules of M&A attraction

BRUCE WASSERSTEIN was probably the most famous mergers and acquisitions (M&A) banker on Wall Street in the 1980s and 1990s. Yet “Bid ‘em up Bruce”, who died in 2009, was ambivalent about his trade. The best rainmakers were capable men, he once wrote, but dealmaking also attracted “hustlers and swaggering mediocrities”. And whereas takeovers made the business world more dynamic, they also led to “pain, dislocations and blunders”.

Whether dealmaking is sensible is once more an important question, because M&A are back with a vengeance, after a lull following the financial crisis. Worldwide, $3.6 trillion of deals have been announced this year, reckons Bloomberg, an information provider, approaching the peak reached in 2007. In pharmaceuticals (see article) and among media firms the activity is frantic. Deals worth more than $10 billion are again common. America and Britain, with their open markets for corporate control, account for a disproportionate share of the action. So do cross-border deals, which have risen from a sixth of activity in the mid-1990s to 43% today.

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