Wall Street is closing some deals this week, (See “DONE DEAL! M&A Activity of the Week“), but the rumor mongers are also at large. Here’s your Cheat Sheet to the top mergers and acquisitions in the rumor mill:
- The London Stock Exchange (LSE.L) isn’t wasting any time. Although it is currently in the process of trying the knot with Canada’s TMX Group (X.TO) for $5 billion, rumor has it that LSE may consider taking over NASDAQ (NASDAQ:NDAQ) right after it closes the TMX deal. No one will admit anything, but we do know a few things. LSE is facing pressure because of the Deutsche Boerse (DB1.DE) deal with NYSE Euronext (NYSE:NYX) and Singapore Exchange’s (S68.SI) deal with ASX (ASX.AX). Plus, NASDAQ might be getting a little nervous, and was considering the possibility of a deal with CME Group (NASDAQ:CME) or IntercontinentalExchange (NYSE:ICE). However, CME is now lukewarm on such a partnership.
- Meanwhile, talks between NYSE Euronext, Deutsche Boerse, and top regulators are going pretty well. NYSE would consider a counterbid, however.
- This just in, from the horse’s mouth: CEO Howard Schultz, in an interview with the Wall Street Journal, claimed Starbucks (NASDAQ:SBUX) will make an acquisition in the next 12 to 18 months. It will likely be in the consumer products space (specifically the single-cup brewing segment), as the company aims to build up this segment to complement its retail division.
- For the upteenth week in a row, Sanofi-Aventis (NYSE:SNY) extended its offer for Genzyme (NASDAQ:GENZ) until April 1st, instead of the current deadline of March 16th. They just need to hammer down a price that both sides will accept. Currently the offer is for $74 per share in cash, not including the performance-based future payments, or contingent value right.
- AIG (NYSE:AIG) just can’t seem to get a break. It’s been trying to sell Nan Shan, a local Taiwanese insurance unit, for more than a year, and Taiwan’s financial regulatory body has finally said it will make a decision sometime before July. These regulators barred a different set of buyers from acquiring Nan Shan last year, so the potential buyer this year, Ruen Chen Investment, may not have too much hope in this one.
- Carl Icahn is reportedly thinking about selling auto parts supplier Federal-Mogul (NASDAQ:FDML), possibly to a private equity firm or another auto parts supplier. Federal-Mogul underwent restructuring in 2008 to 2009, after emerging from bankruptcy under the control of Icahn in late 2007. This potential sale is good news for auto manufacturers and auto parts suppliers, as many of them have emerged with lower costs and higher profit potential after the financial crisis.
- No one wants to buy Barnes & Noble (NYSE:BKS), according to Reuters. Its stock price is lower than when it put itself up for sale in August, even though its biggest rival, Borders (BGPIQ.PK), has gone bankrupt. The hope for a potential bidder had lifted the company’s stock 47 percent, but since there is no bidder, the gains have been erased. Barnes & Nobles’ founder and top shareholder, Leonard Riggio, is considering taking the company private. In the meantime, the company is banking on its ebook strategy, hoping it can compete with Amazon (NASDAQ:AMZN) and Apple (NASDAQ:AAPL).
- Deutsche Telekom (NYSE:DTE) is allegedly talking to Sprint Nextel (NYSE:S) about selling its T-Mobile USA unit. A combination of Sprint and T-Mobile USA would merge the third- and fourth-largest U.S. wireless providers, behind Verizon Wireless (NYSE:VZ) and AT&T (NYSE:T). Deutsche Telekom may expect about $25 billion for the deal, but may end up getting less due to customer losses. If a deal were to occur, Deutsche Telekom would likely hold a significant stake in the combined company, but even those details are up for grabs. The main issue blocking such a deal is valuation disagreements.
- Citigroup (NYSE:C) is still working to sell off its assets (about $259 billion’s worth of troubled assets) to pay back the government. Now, it plans to sell its CitiFinancial unit, but may plan to maintain a stake in this consumer finance business. Citi doesn’t want to sell this unit off at a loss, and is offering to help finance the deal to a potential buyer. This is especially important, because the potential buyers are mainly private equity firms, which have a harder time obtaining financing than say, a bank.
- German auto manufacturer Daimler (DAI.DE) and British aerospace engine manufacturer Rolls-Royce (RR.L) plan to team up and bid $4.44 billion for Tognum (TGM.DE), which makes industrial diesel engines. This deal will help both companies expand their integrated power systems capabilities that will put them in a position to exploit growing demand for heavy engines in developing economies, according to the CEO of Rolls-Royce. Not so fast: one of Tognum’s largest shareholders claims that the bid undervalues the company. Price could be an issue!
- The bourse merger wave just hit the Japanese: Tokyo Stock Exchange Group is allegedly in talks to merge with Osaka Securities Exchange Co. (OSCUF.PK). Tokyo runs the second largest equity market in the world, and Osaka deals in derivatives. Tokyo isn’t doing so well, as trading volume and the number of listed companies dwindled in 2010. A tie-up with Osaka, which benefited from Asia’s rapid expansion in derivatives trading, may just be the ticket given the consolidation wave across the East and West.
- Wells Fargo (NYSE:WFC) may be on the hunt for a strategic brokerage acquisition, at least according to an interview between the CEO of Wells Fargo and the Wall Street Journal. He didn’t say which brokerages he might consider, only that his desire for a jump in revenues may have to come through an acquisition.
- Dollar store chains are seeing quite a bit of activity lately. After Family Dollar (NYSE:FDO) rejected a takeover offer, Leonard Green offered to take 99 Cents Only Stores (NYSE:NDN) private for $19.09 per share. Shares are trading above this level, which suggests that the final price could be even higher, especially given that the biggest outside shareholder, FBR Capital, thinks this offer significantly undervalues the company. If you remember, Leonard Green has been involved in lots of retail takeovers and attempts, including J.Crew, Jo-Ann’s Stores (NYSE:JAS), and BJ’s Wholesale Club (NYSE:BJ).
Interact: Which deals do you think will get done? Which are just PR from hedge funds and traders? Let us know in the comments below …
Don’t Miss: DONE DEAL! M&A Activity of the Week.