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Strategies & Market Trends : Speculating in Takeover Targets -- Ignore unavailable to you. Want to Upgrade?

To: richardred who wrote (2158)	1/12/2009 12:01:48 AM
From: Peter Dierks	Read Replies (1) \| Respond to of 7242

Big companies that pick up small companies with profits are acreative.

To: richardred who wrote (2158)	4/21/2009 1:03:26 PM
From: richardred	Respond to of 7242

Broadcom launches hostile $764 million bid for Emulex; 1Q earnings miss Street * Tuesday April 21, 2009, 12:08 pm EDT Related: * Broadcom Corp. * , Emulex Corp. IRVINE, California (AP) -- Chip designer Broadcom Corp. is launching a $764 million hostile takeover offer for network gear maker Emulex Corp. Broadcom said Tuesday the deal would help it develop new technologies for corporate data centers. Broadcom launches hostile $764M bid for Emulex Broadcom launches hostile $764 million bid for Emulex; 1Q earnings miss Street * Tuesday April 21, 2009, 12:08 pm EDT Related: * Broadcom Corp. * , Emulex Corp. IRVINE, California (AP) -- Chip designer Broadcom Corp. is launching a $764 million hostile takeover offer for network gear maker Emulex Corp. Broadcom said Tuesday the deal would help it develop new technologies for corporate data centers. The acquisition would amount to $9.25 per share, a 40 percent premium over Emulex's closing share price Monday. A spokeswoman for Costa Mesa, California-based Emulex did not immediately return a call requesting comment on the offer. Meanwhile, Irvine-based Broadcom said it lost $92 million, or 19 cents per share, in the first quarter. That compares with a profit of $74 million, or 14 cents per share, in the year-earlier period. Sales fell 17 percent to $853 million. Analysts projected a profit of 3 cents per share on sales of $848 million, according to Thomson Reuters. Broadcom shares tumbled $1.75, or 8 percent, to $20.04 in morning trading, while Emulex saw its stock surge $2.69, or 41 percent, to $9.30. Broadcom said its unsolicited offer for Emulex, to be funded by cash and marketable securities, would help it develop technology aimed at streamlining computer networks by adding Emulex's expertise in data storage equipment. "Our combined entity can be a one-stop shop for key networking and storage technologies," Scott McGregor, Broadcom's chief executive, said in a statement. McGregor said Broadcom approached Emulex about a possible deal in December. Emulex responded in early January, saying the company was not for sale and cutting off talks, according to a letter to Emulex's board released by Broadcom. Emulex followed by writing a so-called "poison pill" into its bylaws in January. That step was intended to thwart a hostile takeover by giving existing shareholders the right to purchase more stock should any group or individual acquire more than 15 percent of outstanding shares. Broadcom indicated it would try to get the provision removed. The company plans to ask a Delaware court to invalidate any "improper actions" meant to block Broadcom's takeover bid. The acquisition would amount to $9.25 per share, a 40 percent premium over Emulex's closing share price Monday. A spokeswoman for Costa Mesa, California-based Emulex did not immediately return a call requesting comment on the offer. finance.yahoo.com

To: richardred who wrote (2158)	9/21/2009 11:56:24 AM
From: richardred	Respond to of 7242

Dell to buy Perot Systems for $3.9 billion * On Monday September 21, 2009, 11:31 am EDT By Franklin Paul and Ritsuko Ando NEW YORK (Reuters) - Dell Inc plans to buy Perot Systems Corp for about $3.9 billion, paying a steep 67.5 percent premium to expand its technology services business to compete with Hewlett-Packard Co and IBM. The deal for Perot Systems, a computer services provider founded by former U.S. presidential candidate Ross Perot, comes as large technology companies expand into higher margin IT services to secure stable and recurring revenues as computer hardware becomes cheaper. Dell, which had indicated its intention to step up acquisitions, said it would pay $30 per share for Perot Systems, which compares to its Friday's closing price of $17.91 on the New York Stock Exchange. Perot shares jumped to $29.68 in morning trading while Dell shares fell 4.0 percent to $16.02, with some analysts questioning whether the high price tag was justified. "We think this acquisition is expensive," said analyst Shannon Cross of Cross Research, who said the deal is pricier by comparison than HP's purchase of EDS last year. J.P. Morgan analyst Mark Moskowitz also said the acquisition seemed expensive, although it was a good step for Dell to lessen its high reliance on personal computers. "We believe the deal should be a good stepping stone to diversifying beyond Dell's historically high-reliance on PCs," he said. "We do see the building block as being compelling, but the purchase price seems relatively rich. If approved, Dell will pay 1.4 times sales for Perot Systems, versus HP's purchase of EDS for 0.6 times sales last year." Dell said the acquisition would help it provide a broader range of services, particularly to large enterprises including in the healthcare and government segments. Dell expects the deal to add to its earnings in its fiscal year 2012. ONE-THIRD EMPLOYEES IN INDIA Perot specializes in providing business processes and technology consulting services, with a strong client base among healthcare, government and other commercial segments. It also has a strong global presence, with over a third of its employees based in India. Perot Systems, founded in 1988 by Ross Perot, who twice ran for U.S. president, is expected to become Dell's services unit. It will be run by Peter Altabef, the current chief executive of Perot Systems. Dell said the deal may open the door to the sale of Dell PCs to Perot's clients, but emphasized that the main target was the expansion in IT services. "We will significantly expand our already important enterprise solutions capability and enhance our position in some of the fastest growing customer segments," Dell Chief Executive Michael Dell told analysts on a conference call. Executives did not give any targets for revenue, saying more details would come after the deal closes, but said they expected opportunities for cost savings. Dell said the two companies spend a combined $4 billion in the areas they plan to integrate, and that Dell sees cost savings of about 6-8 percent. "Our initial work suggests getting 6 to 8 percent, or approximately $300 million of these costs, over two years ... is very achievable," said Dell Chief Financial Officer Brian Gladden. Ross Perot Jr., Perot Systems' chairman of the board, will be considered for appointment to the Dell board. Perot Systems' biggest owner as of March was HWGA Ltd, an investment firm founded by Perot senior. (Reporting by Franklin Paul and Ritsuko Ando; Editing by Lisa Von Ahn, Dave Zimmerman) finance.yahoo.com

To: richardred who wrote (2158)	10/1/2009 8:08:55 AM
From: richardred	Read Replies (1) \| Respond to of 7242

Cisco agrees to buy Norway's Tandberg for $3 bln Cisco agrees to buy Norwegian video-conferencing firm Tandberg for $3 billion * By Ian Macdougall, Associated Press Writer * On Thursday October 1, 2009, 7:52 am EDT OSLO (AP) -- Cisco Systems Inc. on Thursday announced a $3 billion takeover bid for Tandberg ASA, a Norwegian company that makes hardware for video conferences. Cisco, the world's largest maker of computer networking equipment, said it offered 153.50 kroner ($26.50) per share of Tandberg's stock, an 11 percent premium on Wednesday's closing share price. Tandberg said in a statement that the proposal was recommended by a unanimous vote of its board of directors. The acquisition is expected to close in the first half of 2010. Tandberg CEO Fredrik Halvorsen would continue to lead the group. Halvorsen hailed the move as "a vote of confidence, not just in Tandberg but in our technology and our people." Cisco chief executive John Chambers said the acquisition "showcases Cisco's financial strength and ability to quickly capture key market transitions for growth." The company's shares rose 11.5 percent to 154.30 kroner ($26.70) in early afternoon trading in Oslo. Carnegie analyst Espen Torgersen called the bid "not outstanding," but "fair." Nordea Markets analyst Andre Adolfsen agreed, but said there was a small chance of competing bids, including from Cisco's American competitor Hewlett-Packard Co. "If you look at counterbidders -- probably HP I would say," Adolfsen said. "But I don't see it coming, to be honest." Torgersen noted that Cisco's size and market position meant that any company wishing to make a competing bid would have to have a very good reason for doing so. Tandberg employs 1,500 people globally, with joint headquarters in Oslo and New York. finance.yahoo.com

To: richardred who wrote (2158)	8/25/2010 1:16:07 PM
From: richardred	Read Replies (4) \| Respond to of 7242

Who's next in the tech M&A frenzy Commentary: Why acquisitions make sense now By Jeff Reeves ROCKVILLE, Md. (MarketWatch) -- Wall Street is abuzz with buyout news. The announcement that Intel Corp. (NASDAQ:INTC) will buy McAfee Inc. (NYSE:MFE) for nearly $8 billion in cash made a huge splash last week. Monday's move from tech giant Hewlett-Packard Co. (NYSE:HPQ) to outbid Dell Inc. (NASDAQ:DELL) for small-cap data storage firm 3Par Inc. (NYSE:PAR) also threw the tech sector for a loop. All this merger mania is making things interesting. And given the fact that as of July nonfinancial corporations have $1.8 trillion in cash to burn -- roughly 25% more than when the recession began -- you can expect more cash buyouts in tech to emerge in the months ahead. digits: Why it's not all rainbows for tech Dow Jones Newswires' Brendan Conway tells the Digits show why he thinks the recent spate of M&A activity in the tech sector may not be enough to ignite technology stocks. There are a few logical buyout targets and a few obvious buyers in tech right now (we'll get to those in a moment), but first it's important to understand the reasons acquisitions make so much sense in the current market. Cash is worthless With interest rates at rock bottom levels and with the specter of high inflation ahead thanks to massive U.S. debt, it is literally bad business to sit on cash. A dollar is worth more today that it likely will be tomorrow -- so why not spend it via buyouts, buybacks or dividends? Read about the top 10 Dow dividend stocks Depressed equity prices In case you haven't noticed, stocks haven't exactly been surging. That means many companies are relative bargains compared with a few years ago so a buyer can get more for its money. Acquisitions replace organic growth Few prospects for ensuring future profits and sales keep moving up? Then buy a business doing those things well. Intel saw the writing on the wall about mobile devices, and decided to diversify away from hardware and processors with the McAfee deal. The story is similar with HP and its buyout of troubled smart phone stock Palm and overtures at storage and cloud computing power 3Par. Positive buzz If all shareholders hear is news about slumping equity prices and weak consumer spending, that's probably not a good sign. Even small-time acquisitions can help give investors something to feel good about, and prove that your company is building for the future instead of just struggling along sleepily. Given all this, it's easy to see why companies are so eager to go on a shopping spree. But who are the most likely suitors? Google Inc. (NASDAQ:GOOG) is always at the top of the list. The company is sitting on over $20 billion in cash and has positive cash flow to increase that balance every quarter -- with no dividends to sap the war chest. The company has a history of buyouts with over 70 acquisitions in the last decade, including a rash of 22 purchases in 2010 for $1.1 billion so far. Read a full list of Google buyouts here. Following the logic of Intel, a likely buyer in the near future could be Cisco Systems Inc. (NASDAQ:CSCO) , which has over $30 billion in cash and may want to diversify away from its networking business into other high tech areas. Same for Microsoft Corp. (NASDAQ:MSFT) . The company has almost $40 billion in cash, but the closest thing it has to a groundbreaking new technology is the upcoming Kinect motion controller for its Xbox video game console. IBM (NYSE:IBM) is also a likely suspect in the tech sector. In July, the company reported that it ended the second-quarter with over $12 billion on hand and a free cash flow of $3 billion. Now let's get to the potential targets: NetApp Inc. (NASDAQ:NTAP) could be a possible takeover target due to its strong business in data storage. As the tech sector goes through some big shakeups in the wake of the Intel-McAfee deal and the bidding war for 3Par, NetApp could be quite a counterpunch. One hang up, however, is that NTAP is worth a hefty $14 billion at current stock valuations. But when you consider the fact that tech heavyweights Cisco is worth over $120 billion and IBM is worth over $150 billion, a NetApp buyout isn't impossible. Another big player Juniper Networks Inc. (NYSE:JNPR) is in the same boat with a $14 billion price tag, though its focus is more on routing and network infrastructure. Read about how to profit as semiconductor stocks short circuit. Smaller but more digestible networking, data storage and cloud computing stocks are the likeliest to make the merger list. Brocade Communications Systems (NASDAQ:BRCD) has a market cap of about $1.6 billion and is essentially in the same business as 3Par. That makes it a good counterpunch for Cisco or IBM, which you can bet are closely watching the bidding war over 3Par. Other small-cap tech targets in the data storage game could include Isilon Systems Inc. (NASDAQ:ISLN) , Compellent Technologies Inc. (NYSE:CML) and CommVault Systems Inc. (NASDAQ:CVLT) But as we saw in Intel's bid for McAfee and H-P's acquisition of Palm earlier this year, sometimes tech stocks will reach out beyond the most obvious choices in an effort to enter new areas of business or diversify their revenue stream. The next buyout targets may be a big surprise. And let's not forget that tech is hardly the only sector seeing shakeups - just look at mining giant BHP Billiton (NYSE:BHP) and its hostile bid for ag giant Potash Corp. (NYSE:POT) late last week. One thing is sure. It just doesn't make sense for cash-rich blue chips to keep sitting on their cash. And that means we're sure to see many more buyouts in 2010. marketwatch.com

To: richardred who wrote (2158)	11/16/2010 12:01:28 AM
From: richardred	Read Replies (2) \| Respond to of 7242

RE:Big Tech Companies Expected To Go Hunting In '09 More like 2010 Recent acquisitions by major technology companies A glance at major technology companies' recent acquisitions The Associated Press, On Monday November 15, 2010, 10:46 pm EST EMC Corp. has reached a deal to buy Isilon Systems Inc. for $2.25 billion in cash, the latest in a recent spree of acquisitions in the tech sector as companies look to broaden the types of software and equipment they offer big corporate customers and government agencies. Here is a look at some of the acquisitions over the past several months. July 1: Hewlett-Packard Co. completes its $1.2 billion acquisition of smart phone maker Palm Inc. July 8: Dell Inc. agrees to buy Scalent, a privately held maker of software for managing data-center infrastructure, for an undisclosed amount. July 16: Cisco Systems Inc. buys privately held CoreOptics Inc., which makes technology for helping Internet service providers handle the growing traffic on their networks, for $99 million. July 19: Dell announces it will buy privately held Ocarina Networks, which makes technology to compress data and remove duplicate information, for an undisclosed amount. July 20: IBM Corp. buys BigFix Inc., a privately held business security and compliance software company, for an undisclosed amount. Aug. 2: IBM buys privately held Web analytics software company Coremetrics for an undisclosed amount. Aug. 10: IBM buys privately held business management software company Datacap Inc. for an undisclosed amount. Aug. 13: IBM agrees to buy marketing software company Unica Corp. for $480 million. Aug. 16: Intel Corp. agrees to buy the cable modem chip-making business from Texas Instruments Inc. for an undisclosed amount. Aug. 17: HP agrees to buy privately held computer-security software maker Fortify Software Inc. for an undisclosed amount. Aug. 19: Intel Corp. agrees to buy computer-security software maker McAfee Inc. for $7.68 billion. Aug. 26: HP buys privately held database and application automation company Stratavia Inc. for an undisclosed amount. Aug. 27: IBM buys Sterling Commerce, which makes software that helps businesses buy and sell to each other, from AT&T Inc. for $1.4 billion. Sept. 2: Intel Corp. agrees to buy the wireless-chip division of Germany's Infineon Technologies AG for $1.4 billion. Sept. 2: HP agrees to buy data-storage maker 3Par Inc. for $2.07 billion, ending a bidding contest with rival Dell. Sept. 13: HP agrees to buy security-software provider ArcSight Inc. for about $1.5 billion. Sept. 15: IBM says it has acquired OpenPages, a privately held software company that develops risk and compliance management systems, for undisclosed terms. Sept. 20: IBM agrees to pay $1.7 billion for Netezza Corp., a company that helps businesses sort through data on corporate servers. Sept. 27: IBM agrees to buy privately held Blade Network Technologies, a maker of software and technologies that route data to and from servers. Financial terms were not disclosed. Nov. 2: Dell agrees to buy Boomi, whose AtomSphere software makes it easy for businesses to send data back and forth between Web-based applications and computer programs that run on PCs. Terms were not disclosed. Nov. 3: Oracle Corp. agrees to buy e-commerce software maker Art Technology Group Inc. for $1 billion, to help businesses better understand people who shop with them online. Nov. 15: EMC says it has reached a deal to buy Isilon Systems Inc. for $2.25 billion in cash to give EMC customers options for storing large amounts of data. finance.yahoo.com