M&A Roundup

Nasdaq Stock Market and London Stock Exchange; Health Care Property Investors and CNL Retirement Properties; Bank of America and Banco Itau; MTN Gr...
Helen ShawMay 4, 2006

•The Nasdaq Stock Market has increased its holding in the London Stock Exchange from 15 percent to 18.7 percent with the purchase of 9.79 million shares worth approximately $219.4 million. In April, Nasdaq bought a 15 percent stake in the London Stock Exchange for $780 million after the LSE rebuffed its offer for the entire exchange in March.

•Health Care Property Investors, the largest healthcare real estate investment trust in the U.S., has agreed to acquire CNL Retirement Properties, the nation’s third largest healthcare REIT for approximately $5.2 billion of cash, stock, and debt. The deal, which is subject to approval by shareholders of CNL, is expected to close in the third quarter of 2006.

•Bank of America has agreed to exchange its BankBoston operations in Brazil for approximately $2.2 billion of stock in Banco Itau, the second largest non-government owned banking company in Brazil. Itau also has exclusive rights to purchase BankBoston units in Chile and Uruguay.

•MTN Group, the largest mobile phone company in Africa, has agreed to purchase mobile phone company Investcom LLC for $5.5 billion in cash and stock. Investcom operates in Middle Eastern markets, where MTN has no networks.

•Level 3 Communications, a provider of Internet connectivity for broadband subscribers, has agreed to acquire TelCove, Inc., a privately-held telecommunications company for $1.2375 billion. Level 3 will pay $637 million shares of its common stock, $445 million in cash, and $155.5 million in the assumption of debt. The deal is expected to close in the third quarter of 2006.

•Boeing has agreed to purchase Aviall Inc. for approximately $1.7 billion and the assumption of $350 million of net debt. Aviall, the largest independent airplane parts provider, will operate as a wholly owned subsidiary. The deal, pending shareholder and regulatory approvals, is expected to close in the third quarter of 2006.

• Aramark Corporation, a food service company, has received a $5.94 billion takeover offer from its chief executive officer, Joseph Neubauer and funds managed by private equity firms GS Capital Partners (the investing arm of Goldman Sachs Group), Thomas H. Lee Partners, J.P. Morgan Partners, and Warburg Pincus. The proposed deal to take the company private would be funded by $6.25 billion in debt financing from Goldman Sachs and equity investment from Neubauer, other executives, and investment funds.