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Citigroup Concedes Wachovia to Wells Fargo
The much-ballyhooed battle between Citigroup Inc. (C) and Wells Fargo & Co. (WFC) ended with a whimper Friday, as Citi gave up its pursuit of the assets of Wachovia Corp. (WB) – the Charlotte-based lender that was undermined by its broad exposure to subprime assets.
On Sept. 29, Citigroup bid $2.2 billion for Wachovia’s banking operations, but left both Wachovia’s A.G. Edwards brokerage unit and its Evergreen mutual fund family on the table. That left the door open for Wells Fargo to swoop in four days later with a $12 billion bid for all of Wachovia’s operations. That includes a $498 billion…
13Oct2008 | Money Morning | Comments Off | ContinuedSwitzerland’s Roche Makes $43.7 Billion Offer for U.S. Biotech Pioneer Genentech
Roche Holding Ltd. (OTC ADR: RHHBY) yesterday (Monday) announced a $43.7 billion offer for the 44% of Genentech Inc. (DNA) it doesn’t already own.
Switzerland-based Roche’s $89 per share cash offer is almost a 9% premium over San Francisco-based Genentech’s Friday closing price. Roche first acquired 60% of Genentech for $2.1 billion in a 1990 deal. Currently, Roche owns approximately 56% of outstanding Genentech shares.
Roche will finance the Genentech deal through a combination of new debt and $9.8 billion (10 billion Swiss francs) in cash.
“The transaction will create a unique opportunity to evolve Roche’s hub-and-spoke model into a structure that allows…
22Jul2008 | Money Morning | Comments Off | ContinuedCalpine Rejects NRG Takeover Bid
A merger that would have united the two largest U.S. independent power producers has hit a roadblock.
Calpine Corp. (CPN) has rejected NRG Energy Inc.’s (NRG) initial offer, saying the 0.534 shares for each share of Calpine’s approximately 500 million shares outstanding is inadequate.
“I don’t think anyone should be surprised by Calpine’s announcement,” Gordon Howald, an analyst with Calyon Securities USA Inc. in New York, told Bloomberg News. Howald has a “buy” rating on NRG shares, but doesn’t own any. “If they were to accept the first bid as laid out, they would probably be doing their shareholders a disservice.”
Calpine…
2Jun2008 | Money Morning | Comments Off | ContinuedShares of Canada’s BCE Plunge After Investors Learn Proposed LBO is in Jeopardy
Shares of BCE Inc. (BCE) suffered their biggest downdraft in at least a quarter century yesterday (Thursday), after an unexpected court ruling threatened to derail a $53.9 billion leveraged buyout (LBO).
A collapse would make it the biggest LBO ever to fail. Indeed, BCE would top the list of 62 LBOs – with a combined value of $174 billion – that were announced last year and then later abandoned as borrowing costs more than tripled, Bloomberg News reported.
BCE had expected to complete the buyout by next month.
The shares of the No. 1 Canadian telephone company plunged as much as 16% yesterday –…
23May2008 | Money Morning | Comments Off | Continued
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