M&A Weekly Recap: Ancestry.com Rejects Offer, Eastman Kodak Explores Divesture Options

U.S. firm Micron Technology Inc. (NASDAQ:MU) is set to supply the bankrupt Japanese chip maker Elpida with ¥80 billion, or $1 billion, in loans and debt guarantees if its proposed acquisition of the latter is realized. These funds would be in addition to the ¥200 billion that Micron already expects to spend on the purchase of Elpida.

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ConocoPhillips (NYSE:COP) and Origin Energy Ltd. (OGFGF.PK) hope to divest a $3 billion, 15 percent investment in their $20 billion liquid natural gas project in Queensland. The latter announced in July that it will decrease its stake to 30 percent from 37.5 percent, and Bloomberg now says that ConocoPhillips will do likewise. At the same time, Sinopec (NYSE:SNP) is shelling out some $2.1 billion in order to grow its investment from 15 to 25 percent.

Brookfield Asset Management Inc. (NYSE:BAM) has raised its takeover offer for the retail, hotel, and commercial property investor Thakral Holdings to minimum of $491.8 million, according to a source. This bid for the Sydney-listed company represents an increase of 14.3 percent over its initial offer in April.

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SuperMedia Inc. (NASDAQ:SPMD) and DEX One Corporation (NYSE:DEXO) have reached an agreement to merge, thus creating a national supplier of social, local, and mobile marketing solutions. The unified firm should generate between $150 million and $175 million in yearly expense synergies. SuperMedia Chief Executive Peter McDonald will hold his same position in the new entity and the Dex One chief executive will stand in as chairman.

Cnooc Limited (NYSE:CEO) reports that it currently holds 100 billion yuan, or $15.72B billion, in cash but it will still raise more money to help finance its $15.1 billion purchase offer for Nexen Inc. (NYSE:NXY) and thus maintain its credit rating. The company also said that it has no intentions of divesting any Nexen assets after the deal is finalized.

Chief Executive Ivan Glasenberg of Glencore International plc (GLCNF.PK) comments on his firm’s $26 billion offer to purchase Xstrata, making it less to him than a “must-do deal” and that Glencore would be set to “move on” should Xstrata’s shareholders block the transaction. Major Xstrata shareholder Qatar Holdings could do just that, if Glencore declines to increase its bid.

Aetna’s (NYSE:AET) $7.3 billion acquisition of Coventry Health Care Inc. (NYSE:CVH) was the subject of Seeking Alpha author Valuentum, who remarked that “it’s hard not to like a deal that will add strong earnings growth at a reasonable multiple/price.” At the same time, the buyer’s management denied that purchase is politically motivated, saying that “We think it’s safe to say the company feels Medicaid, as well as the Affordable Healthcare Act, is here to stay.”

Benihana Inc. (NASDAQ:BNHN) finalizes taking Angelo, Gordon, and Co. private. Proceeds from the former’s premium that was received earlier in 2012, along with peer P.F. Chang’s China Bistro, has helped to elevate the profile of the restaurant sector.

Qualcomm Inc. (NASDAQ:QCOM) is ready to purchase the Israeli chipmaker DesignArt Networks for a price between $120 million and $140 million, according to Globes. The chipmaker develops processors for 3 to 4 gigabyte base stations and mobile backhaul gear, and also tops the growing market for small base station chips. This acquisition should aid Qualcomm compete with rivals such as Texas Instruments Inc. (NYSE:TXN), Cavium Networks, Inc. (NASDAQ:CAVM), and Broadcom Corporation’s (NASDAQ:BRCM) NetLogic division.

Health Care REIT, Inc. (NYSE:HCN) acquires Sunrise Senior Living, Inc. (NYSE:SRZ) at $14.50 per share, representing a 62 percent bonus over Tuesday’s close. The deal should be completed in the first half of next year.

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Shares of Polycom, Inc. (NASDAQ:PLCM) fall off, on word that private equity company Sun Capital Partners wants to back out of a deal to purchase the former’s enterprise cordless phone division for $110 million. In response, Polycom promises to bring a lawsuit to enforce the terms of the arrangement.

Genealogy website Ancestry.com Inc. (NASDAQ:ACOM) has turned down an offer of $35 per share from an unnamed suitor, and now asks others, which include private equity firms TPG and Permira, to raise their bids, according to Bloomberg. Other companies such as KKR and Providence have shown interest but believe that the price is excessive, and so haven’t yet made any offers. Shares of Ancestry.com closed Wednesday at $30.24, making for a market cap of $1.29 billion.

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Pilots at AMR Corporation (AAMRQ.PK) and US Airways Group, Inc. (NYSE:LCC) are evaluating a transitional labor agreement that is based on a contract between AMR’s pilots and US Airways and might become effective if the airlines merge, says Bloomberg. On Wednesday, the board of the APA pilots union confirmed a strike authorization vote at AMR in the event that the bankrupt carrier should implement any givebacks.

Specialty chemicals manufacturer Rockwood Holdings, Inc. (NYSE:ROC) will purchase Talison Lithium for a total amount of C$724 million, or C$6.50 per share, which marks a 53 percent windfall to Wednesday’s close in Toronto. The buyer says that this acquisition “is the logical next step in further strengthening our lithium business and enhancing our capabilities.”

Facebook’s (NASDAQ:FB) acquisition of Instagram may go forward and close, as the Federal Trade Commission on Wednesday unanimously voted to conclude its inquiry into the matter. Fortunately for the buyer (in a way), the purchase will now cost a mere $747 million since its stock price has declined so much. On the upside, the acquisition will assure Facebook’s dominance in photo sharing.

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Hertz Global Holdings, Inc. (NYSE:HTZ) has requested that Dollar Thrifty Automotive Group Inc. (NYSE:DTG) shareholders come to a consensus on a selling price, say sources. If this report is accurate, it could mean that regulatory matters are near conclusion so that the long-running purchase proposal might be close to completion. Some optimistic observers foresee a share price range between $85 and $90 for Dollar Thrifty

Top employee exits continue at Zynga (NASDAQ:ZNGA) while it’s said that the remaining management still rules out a sale, says Bloomberg. CityVille general manager Alan Patmore is leaving for “hardcore” gaming startup Kixeye, but the company recently issued equity grants, hoping that it might deter unhappy employees from leaving. However, some analysts believe that an activist push is possible as Zynga shares now trade near cash levels.

The United States Justice Department wants additional information from both Amerigroup Corporation (NYSE:AGP) and WellPoint, Inc. (NYSE:WLP) concerning WellPoint’s $4.46 billion purchase of Amerigroup. In the meantime, the Department has extended the waiting period for the transaction’s closing, which would have expired on Wednesday. Amerigroup now believes that the deal should close in the fourth quarter.

Brookfield Asset Management Inc. (NYSE:BAM), might well be mall operator General Growth Properties’ (NYSE:GGP) largest shareholder, but the former announced late on Thursday that it has no intention of divesting its 40 percent stake, or in acquiring the latter outright. Bill Ackman’s remarks that GGP should put itself up for sale, also on Thursday, ignited Brookfield’s comments.

The State of Qatar was already the second-largest shareholder in the takeover target Xstrata Plc (XSRAY) (XSRAF), and has now the country has acquired almost $38 million worth of additional shares, which pushes its stake beyond 12 percent. This move ups the ante in its standoff with Glencore International Plc (GLCNF).

Observers see the chances for a Brocade Communications Systems, Inc. (NASDAQ:BRCD) sale to be improving, but Canaccord isn’t so sure, remarking that, “the case for a strategic suitor is still questionable.” However, the analyst cites the activist investor Elliott Associates’ 9.2 percent investment in the firm, changes in management, and the proposed sale/lease-back of the company’s headquarters, making a takeover “incrementally attractive.”

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Bankrupt Eastman Kodak Co. (EKDKQ) is mulling the divestiture of its document imaging and personalized imaging divisions, having seen its attempts at auctioning off its patents fail with low offers. Even worse, the historic camera-maker has announced plans to cease the production of cameras, in order to concentrate upon enterprise solutions.

QEP Resources, Inc. (NYSE:QEP) is paying a high valuation in its $1.4 billion acquisition of North Dakota properties, which an analyst at Imperial Capital calls a good sign for other regional players: “This acquisition is a positive read-through to the pure play Bakken players, which we believe are takeout candidates.” Oasis Petroleum Inc. (NYSE:OAS) and Triangle Petroleum Corporation (AMEX:TPLM) are currently thought to be the most attractive candidates for buyout.

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