M&A

M&A Roundup

AT&T and BellSouth; New York Stock Exchange and Archipelago Holdings; VNU; Public Storage and Shurgard Storage Centers; Arcelor and Dofasco; Allerg...
Helen ShawMarch 9, 2006

• San Antonio-based AT&T has agreed to buy Atlanta-based BellSouth for $67 billion in an all-stock transaction. The agreement, announced on March 5, has yet to be approved by regulators and stockholders. If approved, the deal would create the world’s largest phone company.

• The New York Stock Exchange completed its $10 billion acquisition of Archipelago Holdings on March 8, transforming the 214 year-old nonprofit into a for-profit company. Shares in the combined company, NYSE Group, began trading on the exchange that day.

• Dutch media group VNU agreed on March 8 to a $9 billion private equity buyout by AlpInvest Partners of the Netherlands and U.S.-based private equity firms Blackstone Group, Carlyle Group, Hellman & Friedman, Kohlberg Kravis Roberts, and Thomas H. Lee Partners. Some VNU shareholders, who are scheduled to discuss the deal on April 18, were expressing opposition to the deal at press time.

• Glendale, California-based Public Storage, the largest U.S. owner of self-storage units, agreed on March 7 to acquire Seattle-based rival Shurgard Storage Centers for $3.1 billion, the largest takeover in the industry. Both self-storage companies are structured as real estate investment trusts.

• Luxembourg-based steel producer Arcelor SA closed its $4.85 billion acquisition of Hamilton, Ontario-based steel maker Dofasco on March 8. Arcelor, which had been the target of a hostile bid by its Rotterdam-based rival Mittal Steel, bid successfully for Dofasco against German rival ThyssenKrupp on January 24. Arcelor will take Dofasco private and delist it from the Toronto Stock Exchange.

• Irvine, California-based Allergan, a health-care company that produces pharmaceutical products including Botox, received approval from the Federal Trade Commission on March 8 to proceed with its $3.2 billion acquisition of Santa Barbara, California-based Inamed, a manufacturer of cosmetic-surgery devices.

• York, Pennsylvania-based Bon-Ton Stores completed its $1.05 billion purchase of Sak’s Northern Department Store Group on March 6. Through the acquisition, which was announced in October, Bon-Ton Stores will take over 142 stores that conduct business under the Carson Pirie Scott, Younkers, Herberger’s, Bergner’s, and Boston Store names.

• San Antonio, Texas-based AT&T has agreed to buy Atlanta, Georgia-based BellSouth for $67 billion in an all-stock transaction. The agreement, announced on March 5, has yet to be approved by regulators and stockholders. If approved, the deal would create the world’s largest phone company.

• The New York Stock Exchange completed its $10 billion acquisition of Archipelago Holdings on March 8. The combined company, NYSE Group, transforms the 214 year-old non-profit Big Board into a for-profit company. NYSE Group shares began trading on the exchange for the first time on Wednesday.

• Dutch media group VNU agreed on March 8 to a $9 billion private equity buyout by AlpInvest Partners of the Netherlands and the following U.S.-based private equity firms: Blackstone Group, Carlyle Group, Hellman & Friedman, Kohlberg Kravis Roberts and Thomas H. Lee Partners. Some VNU shareholders, who are scheduled to discuss the deal on April 18, were expressing opposition to the deal at press time.

• Glendale, California-based Public Storage, the largest U.S. owner of self-storage units, agreed on March 7 to acquire Seattle, Washington-based rival Shurgard Storage Centers for $3.1 billion, the largest takeover in the industry. Both self-storage companies are structured as real estate investment trusts.

• Luxembourg-based steel producer Arcelor SA closed its $4.85 billion acquisition of Hamilton, Ontario-based steel maker Dofasco on March 8. Arcelor, which had been the target of a hostile bid by its Rotterdam-based rival Mittal Steel, bid successfully for Dofasco against German rival ThyssenKrupp on Janurary 24. Arcelor will take Dofasco private and delist the stock from the Toronto Stock Exchange.

• Irvine, California-based Allergan, a health care company that produces pharmaceutical products including Botox, received approval from the Federal Trade Commission on March 8 to proceed with its $3.2 billion acquisition of Santa Barbara, California-based Inamed, a cosmetic surgery device maker.

• York, Pennsylvania-based Bon-Ton Stores completed its $1.05 billion purchase on March 6 of Sak’s Northern Department Store Group. Through the acquisition, which was announced in October, Bon-Ton Stores will take over 142 stores that conduct business under the Carson Pirie Scott, Younkers, Herberger’s, Bergner’s and Boston Store names.