Hot Features
Premium
Register for Free to get streaming real-time quotes, interactive charts, live options flow, and more.
U.S based Mergers and Acquisitions have been off to their fastest start in 2013 since 2000. In a market where survival is now reviving, M&A deals are seen as way forward for inorganic growth for companies which have managed to survive the economic downturn and for companies who are looking into concentrating on core businesses. In last couple of weeks some of biggest M&A deals have been
US Airways Group, Inc. (NYSE:LCC) – US Airways Group Inc. through its subsidiaries, provides air transportation for passengers and cargo. It offers scheduled passenger service on approximately 3,100 flights daily to 198 communities in the United States, Canada, Mexico, Europe, the Middle East, the Caribbean, and Central and South America; and hourly shuttle service between Boston, New York LaGuardia, and Washington National. As per the financial results for 2012 the company was operating on profit margin of 4.61% and operating margin of 6.46%. Return on Equity was 135.53%. The Airlines reported revenues of $13.8 billion with diluted EPS of 3.28. The company is currently trading around $16 with P/E of 5.07.
The company has recently sealed a merger with bankrupt American Airlines. The merger is an $11 billion deal and would create the world’s largest airline with approximately 6700 passengers daily.
Liberty Global Inc. (NASDAQ:LBTYA)- Liberty Global Inc. provides video, broadband Internet, and telephony services to residential and business customers in 13 countries primarily in Europe and Chile. The company operates in three segments: UPC/Unity Division, Telenet, and VTR Group. For the fiscal 2012 the company reported revenues of $10.31 billion with Diluted EPS of $1.21. The company’s operating margin was reported at 20.04%. The company is currently trading around $69 with twelve month trailing P/E of 57.22.
The company recently inked a deal to purchase Virgin Media one of the largest providers of residential Broadband Internet, pay TV, and fixed line telephony services in the UK, with 4.9 million residential cable customers (40% market share), 1.7 million contract mobile customers, and 1.3 million prepay mobile customers at a transaction value of $23.3 billion thus creating one of the world’s largest broadband companies serving 25 million customers in 14 countries. Like Liberty, Virgin too has a consistent cash flow thus the deal would bring higher value to the shareholders.
Comcast Corporation (NASDAQ:CMCSA) – Comcast Corporation operates as a media and technology company worldwide. It operates through Cable Communications, Cable Networks, Broadcast Television, Filmed Entertainment, and Theme Parks segments. For the financial year ending 31st December 2012 the company reported Revenue of $62.57 billion with profit margin of 9.91% and operating margin of 19.47%. The reported diluted EPS is $2.28. The company raised its annual dividend to $0.78 per share and is also planning to buyback $2 worth billion shares.
The stock is currently trading around $40.50 with twelve months trailing P/E of 17.86.
In 2011 the company acquired a majority stake of 51% in media conglomerate NBC Universal from Vivendi with plans to completely acquire NBC in future. But the company recently announced that it would be acquiring the remaining 49% of NBC Universal from General Electrics several years ahead of schedule to take advantage of low interest rates at $16.7 billion. The company will also pay GE another $1.4 billion for other assets. The acquisition is good move for both the companies – GE because it got cash for its stake earlier than expected and Comcast because it will benefit more from the rising price of sports rights and other TV programs.
H.J. Heinz Company (NYSE:HNZ)- H. J. Heinz Company, together with its subsidiaries, manufactures and markets food products for consumers, and foodservice and institutional customers in North America, Europe, the Asia Pacific, and internationally. Its principal products include ketchup, condiments and sauces, frozen food, soups, beans and pasta meals, infant nutrition, and other food products. Recently reported quarterly results for quarter ending January 2013 the company announced Net Income of $320 million and EPS of $0.99.
The stock is currently trading around $72.50 with twelve months trailing P/E of 23.63.
In February 2013 the company announced that it has merger agreement to be acquired by an investment consortium comprised of Berkshire Hathaway and 3 G Capital. Under the terms of agreement Heinz shareholders will receive $72.50 in cash for each share of common stock they own, in a transaction valued at $28 billion, including the assumption of Heinz’s outstanding debt. The per share price represents a 20% premium to Heinz’s closing share price of $60.48 on February 13, 2013, a 19% premium to Heinz’s all-time high share price, a 23% premium to the 90-day average Heinz share price and a 30% premium to the one-year average share price.
Cadence Design Systems Inc.(NASDAQ:CDNS)- Cadence Design Systems Inc. develops, sells or leases, licenses, and maintains electronic design automation software, hardware, verification intellectual property (IP), and design IP for semiconductor and electronic system customers worldwide. For the reported results for financial year ending December 2012 the company reported revenue of $1.326 billion, net income of $440 million or $1.57 diluted EPS.
The stock is currently trading around $14 with twelve month trailing P/E of 8.87.
The company recently announced that it has entered an agreement to acquire Tensilica Inc for $380 million in cash. Tensilica is a leader in dataplane processing IP and this acquisition will help cadence to deliver more optimised IP solutions for mobile wireless, network infrastructure auto infotainment and home applications.
