Deals: Sprinting into the Future?

The merger mill continues to grind this week with potential deals-in-the-making — including Hewlett-Packard connecting with EDS, aircraft leasing giant International Lease Finance disconnecting from insurance giant American International Group, and Coca-Cola Co. thirsting for beverage acquisitions. But if such talk was too early-stage for last week's roundup, the $15.47 billion worth of North American transactions that were announced still made for another active seven days.

Led by $10.6 billion worth of deals involving Clearwire Corp. and Sprint Nextel Corp. — seen by some as a possible preliminary to Sprint's disconnecting from Nextel — the week featured two other notable deals in Illinois Tool Works Inc.'s $2.24-billion purchase of London-based toolmaker Enodis Plc, and Best Buy Co.'s $2.13-billion purchase of half of Carphone Warehouse Group Plc's retail business. Some intriguing private equity deals were also included among the 33 transactions reported in data provided to CFO.com by mergermarket.

The dealmaking increased the number of transactions year-to-date to 1,286, worth a total of $251.53 billion, still far below the 1,916 deals last year at this time, valued at $631.51 billion.

Here are the top 10 North American deals of the week.

Clearwire Corp. to buy Sprint Nextel Corp.'s 2.5-GHz spectrum and WiMAX-related assets for $7.40 billion
Kirkland, Wash.-based Internet services provider Clearwire agreed to acquire the two businesses of Reston, Va.-based Sprint, the wireless and wireline communications company in a deal involving 370 million newly issued Clearwire Class B common shares priced at $20 each. Terms call for Clearwire to merge into a newly created indirect subsidiary with Sprint's 2.5 GHz spectrum and WiMAX related assets, and certain hardware, software, and all WiMax based trademarks and other WiMax related intellectual property. The transaction is expected to close in the fourth quarter.
Seller financial advisor: Citigroup; Lehman Brothers
Bidder financial advisor: JPMorgan; Morgan Stanley
Seller legal advisor: Jones Day; King & Spalding
Bidder legal advisor: Davis Polk & Wardwell; Davis Wright Tremaine; Kirkland & Ellis; Latham & Watkins (Advising Morgan Stanley); Paul Weiss Rifkind Wharton & Garrison

Bright House Networks, Comcast Corp., Google Inc., Intel Corp., and Time Warner Cable Inc. to buy 22 percent of Clearwire for $3.20 billion
The buyers are paying cash for 135 million Class B shares and 25 million Class A shares of Clearwire at $20 each, a 21.5-percent premium. Philadelphia-based Comcast is a cable operator, while Google, of Mountain View, Calif., is a provider of index and web content provider; Santa Clara, Calif.-based Intel makes semiconductor chip producer and markets digital products; and New York City-based Time Warner Cable is a cable operating company. The acquisition is part of the agreement between Sprint Nextel and Clearwire. The transaction is approved by all of the parties' board of directors and is expected to close in the fourth quarter.
Seller financial advisor: Not Available
Bidder financial advisor: Merrill Lynch
Seller legal advisor: Not Available
Bidder legal advisor: Not Available

Illinois Tool Works Inc. to buy Enodis Plc for $2.24 billion
Glenview, Ill.-based foodservice equipment and machinery company Illinois Tool Works agreed to acquire the entire outstanding share capital of London-based Enodis, a food and beverage equipment manufacturer. Enodis holders will receive an ex-dividend offer that includes a per-share premium of 15 percent. There is an 8.53-percent premium over another bid to acquire Enodis, from Manitowoc Co.
Seller financial advisor: Credit Suisse; N M Rothschild & Sons
Bidder financial advisor: UBS
Seller legal advisor: Ashurst; Hammonds (Advising N M Rothschild & Sons)
Bidder legal advisor: Hammonds

Best Buy Co. to buy a 50 percent stake in the retail business of Carphone Warehouse Group Plc $2.13 billion
Richfield, Minn.-based consumer electronics retailer Best Buy agreed to acquire a 50 percent stake in the retail business operations of London-based Carphone Warehouse Group for cash and will form a new company with Carphone, with each company holding a 50 percent stake. The transaction is expected to close by Aug. 30.
Seller financial advisor: Credit Suisse
Bidder financial advisor: Goldman Sachs
Seller legal advisor: Not Available
Bidder legal advisor: Not Available

Shareholders to buy Celera Corp. from Applera Corp. for $940 million
Norwalk, Conn.-based Applera's board agreed to spin-off the Alameda, Calif.-based Celera Group division, a diagnostic business of the life sciences company. The price is based on 79.646 million shares of Celera at $12.58 per share. Terms call for the separation to be conducted through redemption of all of the outstanding shares of Applera-Celera tracking stock. The transaction is expected to close on July 1.
Seller financial advisor: Morgan Stanley
Bidder financial advisor: Not Available
Seller legal advisor: Not Available
Bidder legal advisor: Not Available

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