REITs were in the merger spotlight last week, as the $19.8 billion purchase of real estate investment trust Archstone-Smith by Tishman Speyer and Lehman Brothers topped the list of North American deals. Another REIT purchase made the top 10 as well: Morgan Stanley Real Estate's $5.3 billion purchase of Investa Property Group ranked fourth, expanding in Australia the reach of Morgan Stanley's properties businesses.
The second-largest deal was the sale of AG Edwards Inc. to Wachovia Corp. for $6.5 billion, which would create the world’s largest brokerage firm.
Meanwhile, private equity activity continued unabated, with four buyouts among the top ten — the largest was Madison Dearborn Partners LLC’s $6.5 billion deal for computer retailer CDW Corp. — and with PE buyouts accounting for more than two-thirds of the total $31.3-billion value of all last week’s deals. The $46.1 billion worth of deals done overall brought the year-to-date value of M&A to $870.3 billion, according to data provided to CFO.com by mergermarket . Yet again, that result increased the gap over the prior year's deal-making, which totaled $568.7 billion as of June 1.
Morgan Stanley advised four of last week's deals, while Lehman advised three.
Tishman Speyer; and Lehman Brothers to buy Archstone-Smith Trust for $19.8 billion
The price is $60.75 per share, a premium of 10 percent. The transaction is expected to close in the third quarter.
Seller financial advisor: Morgan Stanley
Bidder financial advisor: Banc of America Securities; Lehman Brothers
Seller legal advisor: Hogan & Hartson
Bidder legal advisor: Cadwalader, Wickersham & Taft (Advising Bank of America Corporation as debt provider and Lehman Brothers as debt provider and financial advisor); DLA Piper; Kirkland & Ellis (Advising Banc of America Securities); Schulte Roth & Zabel; Venable; Wachtell Lipton Rosen & Katz; Weil Gotshal & Manges (Advising Lehman Brothers); Willkie Farr & Gallagher
Wachovia to buy AG Edwards for $6.502 billion
The definitive agreement calls for a price of 0.9844-share of Wachovia and $35.80 in cash, for a total of $89.50 per share, a premium of 16 percent. The transaction is expected to close in the forth quarter.
Seller financial advisor: Goldman Sachs
Bidder financial advisor: Credit Suisse; Wachovia
Seller legal advisor: Wachtell Lipton Rosen & Katz
Bidder legal advisor: Simpson Thacher & Bartlett; Sullivan & Cromwell
Madison Dearborn Partners to buy CDW for $6.47 billion
The definitive agreement prices the purchase at $87.75 per share, a premium of 16 percent. The transaction is expected to close near the end of the third quarter or early in the fourth quarter.
Seller financial advisor: Morgan Stanley; William Blair & Company
Bidder financial advisor: JPMorgan; Lehman Brothers
Seller legal advisor: Sidley Austin; Sullivan & Cromwell
Bidder legal advisor: Kirkland & Ellis; Milbank Tweed Hadley & McCloy (Advising JPMorgan and Lehman Brothers)
Morgan Stanley Real Estate to buy Investa for $5.3 billion
Terms call for a cash price equal to $2.53, per Investa share, with a $6.5-cent per-share dividend, a 14.5-percent premium. The premium is 56 percent above the $1.62 year-end net tangible asset value per share, and values the share capital at $3.87 billion. The deal expands Morgan Stanley's ventures into global real estate, bringing it Investa's portfolio of Australian properties.
Seller financial advisor: KPMG Corp Fin; UBS
Bidder financial advisor: Citigroup; Morgan Stanley
Seller legal advisor: Gilbert + Tobin
Bidder legal advisor: Minter Ellison
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