Sprint Purchases Clearwire, AMR and US Airways Near Merger: M&A Weekly Recap

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Here’s your Cheat Sheet to this week’s M&A headlines:

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Sprint Nextel Corporation (NYSE:S) said Monday that it will purchase the approximately 50 percent interest in Clearwire Corporation (NASDAQ:CLWR) that it does not currently own for $2.97 per share, or a total payment to Clearwire shareholders, other than Sprint, of $2.2 billion. This transaction will realize a total Clearwire enterprise value of around $10 billion, including net debt and spectrum lease obligations of $5.5 billion.

First Majestic Silver Corp. (NYSE:AG) and Orko Silver Corp have reached an agreement through which the former has agreed to purchase all of the issued and outstanding common shares of Orko for 0.1202 of a common share of First Majestic plus $0.0001 in cash per Orko common share. The offer implies a value of C$2.72 per Orko share, calculated on the closing prices of both First Majestic and Orko’s common shares on the Toronto Stock Exchange and TSX Venture Exchange, respectively, on December 14th. In addition, the offer marks a premium of about 69 percent to Orko’s 30-day volume-weighted average price for the period ending on that date.

Elliott Management Corp offers $11 per share in cash for Compuware Corporation (NASDAQ:CPWR) in a letter sent on Monday. Such a transaction would comprise an aggregate of $2.3 billion. Elliott is a multi-strategy investment firm with experience investing in public and private companies and has an extensive track record of successfully structuring and conducting transactions in the tech space.

The Mexican corn flour and tortilla firm Gruma said late on Friday that it purchased the interests in itself and a number of its divisions held by Archer Daniels Midland Co. (NYSE:ADM) for $450 million. The latter put the stake up for sale as it searches for cash through which to acquire Australia’s GrainCorp.

Quanex Building Products Corporation (NYSE:NX) will purchase the assets of Alumco and its subsidiaries in an all cash transaction. The assets include Aluminite, a screen producer for the window and door industry. The purchase should be accretive to earnings per share in the next year and should close by December 31st. Financials of the transaction were not reported. Quanex is a top maker of engineered materials, components and systems serving domestic and international window and door OEMs through its Engineered Products and Aluminum Sheet Products Groups.

Nielsen Holdings (NYSE:NLSN) will acquire the international media and marketing research company Arbitron (NYSE:ARB) for $48 per share in cash, representing a premium of about 26 percent to the latter’s close on December 17th. Nielson is a top global provider of information and insights into what consumers watch and buy.

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