M&A

M&A Roundup: Week Ending March 16

Schering Plough and Organon BioSciences; Kohlberg Kravis Roberts and Dollar General; Redford Merger and Spirit Finance; Cisco Systems and WebEx Com...
Helen ShawMarch 19, 2007

The week’s top deal was Schering Plough’s acquisition of Netherlands-based Organon BioSciences for $14.4 billion, according to data provided to CFO.com by mergermarket. That valuation made Organon more profitable as a target than as an initial public offering, according to published accounts.

Lehman Brothers advised on four of the week’s top ten deals; Goldman Sachs, on three. Private equity groups were relatively quiet, with only a single leveraged buyout among the week’s largest transactions. Cisco’s acquisition of WebEx, the week’s fourth-largest deal, signaled its intention to expand beyond networking.

Schering Plough to Buy Akzo Nobel’s Organon BioSciences for $14.4 Billion

The all-cash acquisition, subject to regulatory approval, is expected to close by the end of December.
Seller financial advisor: Morgan Stanley
Buyer financial advisor: Goldman Sachs
Seller legal advisors: De Brauw Blackstone Westbroek; Sullivan & Cromwell
Buyer legal advisors: Allen & Overy; Skadden Arps Slate Meagher & Flom (advising Goldman Sachs); Wachtell Lipton Rosen & Katz

Kohlberg Kravis Roberts to Acquire Dollar General for $7.2 Billion

The deal will pay $22 per share of Dollar General, a premium of 31.11 percent over its March 12 closing price of $16.78. The implied equity value of the transaction is approximately $6.9 billion.
Seller financial advisors: Lazard; Lehman Brothers
Buyer financial advisors: Citigroup; Goldman Sachs
Seller legal advisor: Wachtell Lipton Rosen & Katz
Buyer legal advisor: Simpson Thacher & Bartlett

Redford Merger to Buy Spirit Finance for $3.3 Billion

Redford Merger, a consortium led by Kaupthing Bank and Macquarie Bank, will pay $14.50 per share of Spirit Finance, a premium of 11.1 percent over Spirit Finance’s March 12 closing price of $13.05. The implied equity value of the transaction is about $1.6 billion.
Seller financial advisors: Citigroup; Wachovia
Buyer financial advisors: Kaupthing Bank; Macquarie Bank
Seller legal advisors: Kutak Rock; Venable
Buyer legal advisors: Davis Polk & Wardwell; Latham & Watkins

Cisco Systems to Purchase WebEx Communications for $2.5 Billion

The deal will pay $57 per share, a premium of 23.4 percent based on WebEx’s March 14 closing price of $46.20. The implied equity value of the transaction is approximately $2.85 billion.
Seller financial advisor: Goldman Sachs
Buyer financial advisor: Lehman Brothers
Seller legal advisor: Pillsbury Withrop Shaw Pickman
Buyer legal advisor: Fenwick & West

UnitedHealth Group to Acquire Sierra Health Services for $2.4 Billion

The deal will pay $43.50 per share, a premium of 21.17 percent based on Sierra’s March 9 closing price of $35.90.
Seller financial advisor: Lehman Brothers
Buyer financial advisor: JPMorgan
Seller legal advisors: Brownstein Hyatt Farber Schreck; Morgan Lewis & Bockius
Buyer legal advisor: Sullivan & Cromwell

GE Capital Solutions to Buy PHH for $1.6 Billion

The deal will pay $31.50 per share, a premium of 13.27 percent over PHH ‘s March 14 closing price of $27.81. GE has entered into an agreement to sell PHH’s mortgage operations to The Blackstone Group.
Seller financial advisors: Merrill Lynch; Gleacher Partners
Buyer financial advisors: JPMorgan; Lehman Brothers
Seller legal advisor: DLA Piper
Buyer legal advisors: Weil Gotshal & Manges; Simpson Thacher & Bartlett

Consortium to Buy Ford Motor’s Aston Martin Division for $839 Million

A consortium comprising ADEEM Investment Co. K.S.C.C, Investment Dar Co. K.S.C., and private investors David Richards and John Sinders have agreed to acquire a 90.6 percent stake in Aston Martin from Ford Motor for $839 million.
Seller financial advisor: UBS
Buyer financial advisors: Casesa Shapiro Group; Jefferies & Co.
Seller legal advisors: Skadden Arps Slate Meagher & Flom; Lovells
Buyer legal advisor: Clifford Chance

Microsoft to Acquire Tellme Networks for about $800 Million

The companies did not disclose financial details, but analysts estimate the transaction’s value at about $800 million; it is expected to close in the second quarter.
Seller financial advisor: Morgan Stanley
Buyer financial advisor: Not available
Seller legal advisor: Fenwick & West
Buyer legal advisor: Not available

Svenska Cellulosa Aktiebolaget to Buy Procter & Gamble’s European Tissue Operations for $675 Million

The $675 million cash acquisition includes manufacturing facilities in the United Kingdom, Germany, France, and Italy and is subject to regulatory approval.
Seller financial advisor: Not available
Buyer financial advisor: Not available
Seller legal advisors: Chapman Tripp; Jones Day
Buyer legal advisor:Freshfields Bruckhaus Deringer

Diamond Resorts to Purchase Sunterra for $660 Million

Diamond Resorts will pay $16 cash per share, a premium of 7.02 percent over the March 9 closing price. The deal’s total consideration is $660 million; the implied equity value is approximately $315.5 million.
Seller financial advisors: Merrill Lynch; Duff & Phelps
Buyer financial advisors:Credit Suisse; UBS; Textron Financial; Trivergance; Piercy Bowler Taylor & Kern
Seller legal advisors: Fried, Frank, Harris, Shriver & Jacobson (advising Merrill Lynch); Weil, Gotshal & Manges; Neuberger, Quinn, Gielen, Rubin & Gibber
Buyer legal advisors: Ballard Spahr Andrews & Ingersoll; Katten Muchin Rosenman; Christensen, Miller, Fink, Jacobs, Glaser, Weil and Shapiro

source: mergermarket

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