Posts filed under “M&A”

IBM to Buy Sun Micro?

Hmmmm:

Sun Microsystems Inc. surged the most ever in German trading after the Wall Street Journal reported International Business Machines Corp. is in talks to buy the company for at least $6.5 billion.

Sun Microsystems jumped as much as 61 percent to 6 euros in Frankfurt trading. The offer would value Sun’s stock at more than double the closing price of $4.97 in the U.S. yesterday, the Wall Street Journal reported, citing people familiar with the plan. An agreement may not be reached, the newspaper said. Officials at Sun and IBM declined to comment.

Buying Sun would help IBM widen its lead over Hewlett- Packard Co. in the $53.1 billion market for computer servers. Sun is projected to post its third consecutive quarterly loss as Chief Executive Officer Jonathan Schwartz seeks to weather the global recession by slashing as many as 6,000 jobs and offering lower-priced products.

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Sources:
IBM in Talks to Buy Sun in Bid to Add to Web Heft
MATTHEW KARNITSCHNIG, WILLIAM M. BULKELEY and JUSTIN SCHECK
WSJ, MARCH 18, 2009

http://online.wsj.com/article/SB123735970806267921.html

Sun Microsystems Surges on IBM Acquisition Report
Robert Valpuesta
Bloomberg, March 18 2009

http://www.bloomberg.com/apps/news?pid=20601087&sid=a_0CHRWCFx4w&

Category: M&A, Technology

Potential Pharma Mergers

Via NYT Source: Big Drug Makers May Seek to Fill Holes in Roster NATASHA SINGER and DUFF WILSON NYT, February 24, 2009 http://www.nytimes.com/2009/02/25/business/25place.html

Category: Digital Media, M&A

Sam Zell’s Commercial Real Estate Debacles (by City)

via NYT > Source: Sam Zell’s Empire, Underwater in a Big Way CHARLES V. BAGLI NYT, February 6, 2009 http://www.nytimes.com/2009/02/07/business/07properties.html

Category: Digital Media, M&A, Markets, Real Estate

Ken Lewis Learns There’s a New Sheriff in Town

Fascinating front page WSJ article on the tactics used by Fed Chair Ben Bernanke, Treasury Secy Hank Paulson to “persuade” Bank of America CEO Ken Lewis who the new sheriff in town was: “Kenneth Lewis is getting a hard lesson in the new balance of power between Washington and Wall Street. The Bank of America…Read More

Category: Bailouts, Corporate Management, Derivatives, M&A

Layoff City

Caterpillar: 20,000 Pfizer: 19,000 (10% reduction), plus additional layoffs due to merger with Wyeth: Sprint Nextel: 8,000 Home Depot: 7,000 Philips: 6,000 jobs ~~~ Bloomberg reports 74,000 job cuts today alone as “sales withered and construction slowed amid a global economic recession.” Before today, at least 15 companies announced they planned to eliminate 93,000 positions…Read More

Category: Employment, M&A

Selling Banks’ Crown Jewels

Analysis and Discussion with Ben Phillips of Casey Quirk & Associates

Category: Finance, M&A, Video

Drumbeat for Ken Lewis Resignation Builds

Wednesday night, I suggested it was Time to Fire Ken Lewis of Bank of America. Since then, several other people have come out to echo those sentiments: David Reilly, Bloomberg notes that the bad bet on Merrill follows a bad bet on China Construction Bank and an even worse bet on Countrywide: Kenneth Lewis gambled…Read More

Category: Bailouts, Corporate Management, M&A

Bank of America Shocker

Taxpayers should be furious at how they and their money are being treated. Bank of America did not buy Merrill Lynch for the good of the country: It bought it because Ken Lewis thought, wrongly, that he was getting a deal. Ken Lewis should be held accountable for this. Hank Paulson, meanwhile, should immediately disclose exactly what this secret deal was, when he made it, and why:

Bank of America’s Secret Backroom Bailout

Bank of America Shocker: How Much More Will Taxpayers Take?

That some BAO shareholders are calling for Lewis to be fired is not surprising, considering:

* On Dec. 5, Bank of America shareholders approved the Merrill transaction; less than two weeks later, BOA executives were meeting with government officials expressing concern about the size of Merrill-related losses. BOA’s official explanation – “beginning in the second week of December, and progressively over the remainder of the month, market conditions deteriorated substantially…” – rings hollow, at best.
* From the end of 2007 until early September 2008, Merrill had taken over $50 billion in subprime-related losses, according to Bloomberg. Did Lewis and BOA’s management think that was the end of Merrill’s losses?
* Bank of America has now received $45 billion in direct government capital – diluting common shareholders and matching the amount received by industry laggard Citigroup – as well as $118 billion in guarantees for its bad debts.
* Everyone today is focused on the Merrill Lynch deal, but Lewis also acquired Countrywide Financial, the biggest and most aggressive lender of the subprime era. Raise your hand if you think there aren’t huge losses coming from that portfolio.

Category: Bailouts, Corporate Management, M&A, Video

Splitty-Group

Alternative title: $%#tty-Group

Oh terrific: We are going to have two medium size piles, instead of one giant compost heap.

Is this going to be a good bank/bad bank split, or is it more accurate to say its a bad bank/worse bank ?

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Serious question: Can you name any mega-mergers that have actually worked as advertised? Outside of Oil/commodity firms (Exxon Mobil, Conaco Phillips, BP Amoco are just piles of similar resources), has ANY massive M&A conglomerate actually worked out?

Monster firms all seem to have similar problems: Clash of egos, disparate business lines, frictional corporate cultures.

The one successful example I can think of is Oracle — but they have mostly bought firms started by former employees.

Have any jumbo mergers actually worked out for shareholders?

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Category: Bailouts, Corporate Management, M&A

The $45 Billion Dollar Club

The United States of Wall Street just added another major holding to its portfolio of financial garbage: Bank of America. Like Citi, BA has now received more MORE IN BAILOUT MONEY than its actually worth. (BAC = $53B; C = $21B) How this can ever be a profitable investment, as some mathematically challenged Congress-critters have…Read More

Category: Bailouts, Corporate Management, M&A, Taxes and Policy