Navivest Stocks and Options Blog » acquisition

Sybase Shares Rallying On Takeover Rumors

Navivest — Wed, 12 May 2010 19:40:03 +0000

Shares of software maker Sybase (SYB) are rallying 39% on rumors the company might be a takeover candidate. The stock is up $16.19 to $57.76 a 38.95% gain at 3:35 PM.

Interactive Data To Be Acquired For $3.4 Billion

Navivest — Tue, 04 May 2010 12:46:29 +0000

Interactive Data Corporation (IDC), which provides financial market information, announced today that it had entered into an agreement to be acquired by two private equity funds, Warburg Pincus and Silverlake, for $33.86 per share or $3.4 billion in an all cash transaction.

Back on January 15, the company announced that its board was conducting a preliminary review of strategic alternatives for the company. The news sent the stock from a close of $25.47 the day prior, to a close of $29.07 on the 15th.

The $33.86 per share price represents a 32.9% premium over the closing price on January 14. IDC expects that the deal will close in the third quarter.

Jacobs Engineering Rallies On Takeover Rumors

Navivest — Sat, 10 Apr 2010 01:24:08 +0000

The stock of Jacobs Engineering Group Inc (JEC), which provides technical, professional, and construction services worldwide, rose $3.33 to $47.61, a 7.22% gain, on market chatter that the company is a takeover target, with the supposed interest coming from one or more private equity firm. TPG and Blackstone are being bandied about as the interested parties.

The shares, which have traded an average of 1.8 million shares a day over the past three months, saw volume jump to 9.7 million.

Triumph Group Up 13% On Acquisition News

Navivest — Tue, 23 Mar 2010 15:02:09 +0000

Triumph Group (TGI), a company that supplies and overhauls aerospace systems and components, is seeing its stock rally $8.01 to $69.23, for a 13.08% gain in early trading, on mergers and acquisition news from the company.

The company today announced that it had signed a definitive agreement to purchase Vought Aircraft Industries, Inc. from private equity firm The Carlyle Group, in a cash and stock deal worth $1.44 billion, which includes the retirement of $590 million of Vought debt. Upon the deal’s closing, Carlyle will own approximately 31% of Triumph Group’s outstanding stock.

According to Triumph Group, the acquisition will create a company with industry-leading breadth of product and capabilities.
Vought, which had 2009 sales of $1.9 billion, manufactures aerostructures for commercial, military and business jet aircraft. Its product line includes fuselages, wings, empennages, nacelles and helicopter cabins.

Massey Energy Shares Fall On Stock Offering

Navivest — Mon, 22 Mar 2010 22:30:01 +0000

Coal producer Massey Energy, (MEE) should be very active in Tuesday trading. The shares are off almost 4% in after hours trading on Monday, after the company announced that it is selling 8.5 million shares of its stock.

The company is planning to use the proceeds to fund its purchase of privately held Cumberland Resources, a deal which Massey announced on Wednesday March 17.

The stock is off $1.95 to $48.90 in after hours trading on Monday.

Massey Energy Shares Rallying On Acquisition

Navivest — Wed, 17 Mar 2010 15:18:58 +0000

Coal producer Massey Energy (MEE) is a strong performer today, on the company’s news that it has signed a definitive agreement to acquire Cumberland Resources, a privately held coal producer, for $960 million, in a cash and stock deal. Massey Energy is offering $460 million in cash and the balance, or $320 million, in Massey stock.

Cumberland Resources, which owns 416 million tons of coal reserves, had 2009 coal revenue of $550 million. The company posted 2009 EBITDA of $115 million.

Cumberland Resources produces both steam coal, which is used by power generating plants and metallurgical coal, which is used in the production of steel. Massey believes that the acquisition will strengthen its position in the metallurgical coal arena.

Cumberland currently produces 4.8 million tons of metallurgical coal annually and 800,000 tons of that is sold into the metallurgical coal market. After the acquisition, Massey will be producing 5 million tons of metallurgical coal.
Massey shares are up $2.95 to $53.17 for a gain in early trading.

Novell Up After Hours On Takeover News

Navivest — Wed, 03 Mar 2010 04:59:25 +0000

Shares of embattled network software maker Novell (NOVL) are rising in after hours trading, on news that hedge fund, Elliot Associates, has made an offer of $5.75 a share or roughly $2 billion, for the company.

The stock is trading slightly above that, up $1.23 to $5.98, as traders place bets that better offers might emerge from other networking-related concerns such as Microsoft (MSFT) and Cisco (CSCO) or maybe even IBM (IBM).

Novell’s stock, which was once a very hot commodity back in the nineties, have severely lagged the broader market in the past ten years, dropping 88.88% from the ten year high of $42.44 that was reached on January 4, 1999.

47% One Day Gain On Smith International Options

Navivest — Mon, 22 Feb 2010 15:28:54 +0000

On Friday, we issued a recommendation to subscribers of our Options Capitalist trading advisory service, that they buy the Smith International (SII) March 2010 37 calls, as there was a possibility a bid could be made for the company this week, by Schlumberger (SLB). We also actually posted that trade on the Navivest blog for our readers.

On Sunday, Schlumberger did announce a $45.84 per share bid for the company and the March 37 calls, which we purchased at $2.10, are now bidding $3.10, a nice 47% gain in just one trading day!

We offer compelling options trading ideas such as these twice a week via The Options Capitalist. For more info on the service, visit our site at http://www.navivest.com