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

To: richardred who wrote (4976)	8/6/2018 10:27:16 AM
From: richardred	Respond to of 7239

A Bullseye today. My first of the year. A stock deal for BMS- BEMIS. A few thoughts. First the deal has a good chance of passing regulatory approval. For one, Amcor is an Australian based company that wants a NYSE listing. The US has a trade surplus with Austrilia. Amcor pays a good dividend. BMS stock was pre-loaded. It had a 10% run up Friday. The stock trades at about a 8% discount from the stock deal 57 price. Cash is king in deals, and therefore a build in discount for stock . I'm also in the opinion you can't rule out a possible hostile surprise bid by BLL- Ball corp. IMO They have the leverage to make a competing offer should they choose to do so. Amcor Agrees to Buy Bemis in Stock Deal BY Dow Jones & Company, Inc. — 10:07 AM ET 08/06/2018 Amcor Ltd. has agreed to buy packaging competitor Bemis Co. ( BMS) in an all-stock deal with an enterprise value of $6.8 billion. Based on Amcor's closing price Friday, the companies said that the deal comes out to $57.75 a share, giving it an equity value of $5.26 billion. Shares of Bemis closed at $51.53 on Friday. The Wall Street Journal reported on Friday that the companies were discussing a deal that could be announced as soon as this week. Bemis shareholders are set to receive 5.1 shares of Amcor for each share of Bemis they own, the companies said in their announcement. About 71% of the company will be owned by Amcor shareholders with the rest owned by Bemis shareholders. As part of the deal, the companies will combine to form a holding company which will be primarily listed on the New York Stock Exchange, the companies said. Amcor's head office is in Australia, while Bemis is based in Wisconsin. The new holding company will "maintain a critical presence" in Wisconsin, the companies said. The board will have eight directors from Amcor and three from Bemis. Amcor's Chief Executive Officer Ron Delia and Chairman Graeme Liebelt will both stay in their roles when the deal is done. Amcor makes a variety of packaging types, from bags to hold produce to peelable lids. Bemis also makes packaging for consumer goods along with the health-care industry. The deal helps Amcor address a key initiative. "Amcor identified flexible packaging in the Americas as a key growth priority and this transaction delivers a step change in that region," Mr. Delia said in prepared remarks. Together, the companies have a combined revenue of about $13 billion. Write to Allison Prang at allison.prang@wsj.com (END) Dow Jones Newswires 08-06-18 1007ET Copyright (c) 2018 Dow Jones & Company, Inc.