M&A

M&A Roundup: Week Ending March 9

Citigroup and Nikko Cordial; Meggitt and K&F Industries Holdings; ValueAct Capital and Catalina Marketing; Great Atlantic and Pacific Tea Company a...
Helen ShawMarch 12, 2007

Citigroup’s $10.7 billion bid for the shares of Japan’s Nikko Cordial that it does not already own ranked as the largest deal of the week, according to data provided to CFO.com by mergermarket. The market expects Citigroup to submit an even higher bid in the coming weeks; four major Nikko shareholders have already rejected the initial offer as too low.

Three of the week’s top ten deals were buyouts driven by private equity, which continues to play a prominent role in merger and acquisition activity. Kinder Morgan, the energy company bought out for $22 billion last year by a private equity consortium, divested its Terrasen Pipelines unit for $645 million.

Citigroup to Buy Nikko Cordial for $10.7 Billion

Citigroup Japan Investments has offered $11.65 per share, in cash, for the 95.13 percent of Nikko Cordial that it does not already own.
Seller financial advisor: GCA
Buyer financial advisor: Citigroup
Seller legal advisor: Davis Polk & Wardwell
Buyer legal advisors: Nishimura & Partners; Paul Weiss Rifkind Wharton & Garrison

Meggitt to Purchase K&F Industries Holdings for $1.7 Billion

The deal will pay $27 per share, in cash, for each K&F Industries share.
Seller financial advisor: Goldman Sachs
Buyer financial advisors: Rothschild; Merrill Lynch
Seller legal advisors: Gibson Dunn & Crutcher; Latham & Watkins (advising Goldman Sachs)
Buyer legal advisors: Clifford Chance; Kaye Scholer

ValueAct Capital to Acquire Catalina Marketing for $1.5 Billion

The deal will pay $32.10 per share of ValueAct.
Seller financial advisors: Goldman Sachs; Lazard
Buyer financial advisors: Lehman Brothers; UBS
Seller legal advisor: Paul Hastings Janofsky & Walker
Buyer legal advisors: Dechert; Milbank Tweed Hadley & McCloy

The Great Atlantic and Pacific Tea Co. to Buy Pathmark Stores for $1.0 Billion

The deal will pay $9.00 plus 0.12963 shares of A&P stock per share of Pathmark. or $13 per Pathmark share, based on A&P’s share price at market close on March 2
Seller financial advisors: Citigroup; Yucaipa
Buyer financial advisor: JPMorgan
Seller legal advisors: Latham & Watkins; Shearman & Sterling
Buyer legal advisors: Axinn, Veltrop & Harkrider; Cahill Gordon & Reindel; Cravath Swaine & Moore; Davis Polk & Wardwell (advising JPMorgan)

General Atlantic and Francisco Partners to Buy Aeroflex Incorporated for $984 Million

The deal will pay $13.50 per share of Aeroflex.
Seller financial advisors: Banc of America Securities; Bear, Stearns
Buyer financial advisors: JPMorgan; Deutsche Bank; Lehman Brothers
Seller legal advisors: Skadden Arps Slate Meagher & Flom
Buyer legal advisors: Paul Weiss Rifkind Wharton & Garrison

Vector Capital to Purchase SafeNet for $974 Million

The deal will pay $28.75 per share of SafeNet.
Seller financial advisors: Credit Suisse; Merrill Lynch
Buyer financial advisors: Citigroup; Deutsche Bank
Seller legal advisors: Wachtell Lipton Rosen & Katz: Dewey Ballantine (advising Credit Suisse)
Buyer legal advisor: O’Melveny & Myers

BP to Acquire Chevron’s Texaco Raffinaderij Pernis for $900 Million

The $900 million total excludes working capital and hydrocarbon inventory.
Seller financial advisor: Citigroup
Buyer financial advisor: Internal
Seller legal advisor: Houthoff Buruma
Buyer legal advisors: Linklaters; Herbert Smith, Gleiss Lutz, Stibbe

Zurich Financial Services Group to Buy Bristol West Holdings for $664 Million

The deal will pay $22.50 per share, in cash, for each Bristol West share.
Seller financial advisor: JPMorgan
Buyer financial advisor: Goldman Sachs
Seller legal advisor: Simpson Thacher & Bartlett
Buyer legal advisors: Willkie Farr & Gallagher; Sullivan & Cromwell (advising Goldman Sachs)

Inter Pipeline Fund to Acquire Kinder Morgan’s Terasen Pipelines (Corridor) for $645 Million

The $645 million total includes debt of $411.54 million.
Seller financial advisor: TD Securities
Buyer financial advisor: Not available
Seller legal advisor: Not available
Buyer legal advisor: Not available

Cegedim to Purchase Dendrite International for $618 Million

The deal will pay $16 per share, in cash, for each Dendrite share.
Seller financial advisor: JPMorgan
Buyer financial advisors: Banc of America Securities; SG
Seller legal advisors: Davis Polk & Wardwell (advising JPMorgan); Day Pitney; Dewey Ballantine
Buyer legal advisors: Hodgson Russ; Lowenstein Sandler