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[Commentary] ©1999-1999 Phil Hyde, The Timesizing Wire, Box 622, Cambridge MA 02140 USA (617) 623-8080


Mergers&Acquisitions - Jul.1-15/99

7/15/99  8 Takeovers Reported (totalling $1.04b) -
  1. Onsale to acquire Egghead.com, a rival on-line retailer [for about $400m], Bloomberg via NYT, C4.

  2. Korean cement deal - Lafarge of France will buy So.Korea's insolvent Halla Group for at least $345m, Bloomberg via NYT, C4.

  3. Open Market to acquire Future Tense [for $125.25m], by Ronald Rosenberg, Bos Globe, D15.

  4. Marketing Services to buy Grizzard Communications [for $100m], Dow Jones via NYT, C4.

  5. [5-co.] Consortium's $46m bid wins Starter Corp. [sports apparel], AP via Bos Globe, D9.

  6. Purchase for Macromedia [Web publishing software] - of Elemental Software for about $24m, Bloomberg via NYT, C6.

  7. Telcordia Technologies Inc. [network services] - bought Mesa Solutions (systems consulting) for $??, NYT, C4.

  8. IDX Systems on-line unit buys Dietsite.com [for $??], Dow Jones via Bos Globe, D9.

7/14  12 Takeovers Reported (totalling $14.75b) -

  1. BOC, British supplier of gases, to be bought, by Alan Cowell, New York Times, p. C3 (NE).
    ...by Air Liquide SA of France and Air Products and Chemicals Inc. of the United States under an $11.2 billion cash deal announced today....

  2. Corporate Express accepts $1.1 billion offer [from Dutch-based Buhrmann NV], AP via NYT, C3.
    ...creating what it called the world's largest distributor of office supplies....

  3. Sunstone Hotel agrees to a $450 million buyout offer [from SHP Acquisitions], Dow Jones via NYT, C3.
    ...plus the assumption of $450 million in debt [total $900m]....

  4. Doubleclick in $530 million stock swap for Netgravity, Dow Jones via NYT, C3.

  5. Excite@Home to acquire iMall for $425 million in stock, Dow Jones via NYT, C3.

  6. [Aerospace product maker] Transtechnology in $173 million deal for Eaton unit, AP via NYT, C3.
    ...Eaton Corp.'s engineered fasteners business [which] employs 650 people....

  7. E*Trade to buy TIR Holdings of Ireland for $122 million, Reuters via NYT, C3.

  8. [ISP] Verio agrees to acquire Digitalnation for $100 million, Reuters via NYT, C3.

  9. $100 million deal in cable equipment, Bloomberg via NYT, C5.
    ...[as] Terayon Communication Systems Inc., a cable modem maker [buys] closely held Imedia Corp. for about $100 million in stock to expand its product line....

  10. Indymac Mortgage Holdings Inc., NYT, C3.
    ...Pasadena, Calif., a mortgage lender, agreed to buy SGV Bancorp, San Gabriel Valley, Calif., a savings and loan holding company, for $62.5 million.

  11. Fedders Corp., NYT, C3.
    ...Liberty Corner, NJ, an air-conditioner maker, agreed to acquire Trion Inc., Sanford, NC, which makes electronic air cleaners, filters and other products to improve indoor air quality, for...$39.6 million total.

  12. Sony and Time Warner make music deal - CDnow to be joined to Columbia House, by Saul Hansell, NYT, C5.
    ...Time Warner and Sony said yesterday that they would merge Columbia House, the music club they jointly own, with CDnow, the struggling on-line music store.... The new company...will be publicly traded so that it can...use its shares as currency in acquisitions....
    [There's mechanism #2 in the compaction of economies into depression readiness - use of stock to further homogenize and top-weight the economy. #1 is retaining an outdated workweek and taking incoming technological efficiencies in terms of an evermore marginalized workforce and consumer base.]

7/13  Record-breaking 19 Takeovers Reported -

  1. [$3.63b] Merger is planned to create the biggest offshore driller - Schlumberger [Sedco Forex Offshore] unit and Transocean [Offshore] to join, by Agis Salpukas, NYT, C7 (NE).
    ...The 109 million shares that are to be issued are valued at $3.2 billion, using the closing prices of Transoceanic stock on Friday.... Transocean will also assume about $430 million in Forex Offshore debt....
    [Further clues about this murky spinoff-merger deal in "Schlumberger completes spinoff of offshore oil unit," Bloomberg via 1/1/2000 NYT, B4.]

  2. Disney to merge [$1.6b] Internet holdings with Infoseek, by Fabrikant and Hansell, NYT, C1.
    [For this deal, we had to go elsewhere for the valuation. That article was:]
    Disney to buy rest of Infoseek, by Greg Miller, LA Times via Bos Globe, F1.
    ...That portion of Infoseek was valued at $1.6 billion at yesterday's market close....

  3. Quebecor to acquire printer [World Color Press of Conn.] for $1.4 billion, AP via NYT, C4.
    ...in a deal that will craete a leading global commercial printer....

  4. British insurer [Royal and Sun Alliance] to buy Orion Capital [of Conn.] for $1.4 billion, Agence France-Presse via NYT, C4.

  5. Sequent Computer Systems to be acquired by I.B.M. - $810 million for leader in linked devices, by Lawrence Fisher, NYT, C9.

  6. Motel 6 owner buys Red Roof Inns - Paris-based Accor to merge two chains in $673m deal, AP via Bos Globe, F3.
    [This deal is also in the Times with a less definitive valuation - ]
    Accor adds Red Roof Inns to stable of budget hotels, Reuters via NYT, C4.
    The French travel company Accor SA said yesterday that it had agreed to buy Red Roof Inns for $613 million.... Accor agreed to pay $22.75 a share and assume $502 million in Red Roof debt.... Accor also owns Motel 6, Novotel and Sofitel.

  7. Met Life says it will buy St. Paul [Cos. of Minn. unit, Economy Fire & Casualty Group, for about $600m], NYT, C9.
    [Compare the more informative BG version that we mined for company names - ]
    R.I.'s MetLife to buy unit of Minnesota company - Insurer expands into auto, home business, AP via Bos Globe, F5.

  8. Goldman Sachs to acquire electronic trading concern [Hull Group, for $531m], by Joseph Kahn, NYT, C6.

  9. European cable deal, Bloomberg via NYT, C4.
    Europe's 2nd-largest cable TV company, United Pan-Europe Communications NV, said it would buy Stjaern TV of Sweden from EQT Scandinavia Ltd. for $400 million.... It will also assume $50 million in debt....

  10. Global Industrial accepts $300 million buyout offer [from Austria-based RHI AG, a refractory manufactory], Bloomberg via NYT, C4.

  11. RPM, maker of Rust-oleum, agrees to buy DAP Products[ for $290m from Wassail PLC of Britain], Dow Jones via NYT, C4.

  12. [And now, the prize-winner for stupid bank names - ]
    Fifth Third Bancorp of Ohio acquires a bank in Indiana [Peoples Bank, for $228m], Bloomberg via NYT, C4.
    ...in its second purchase of an Indiana bank in a month....

  13. GenTek to buy German company [Jenoptik's Krone unit] for $218m, Bloomberg via Bos Globe, F9.
    ...Krone AG, based in Berlin, makes plugs for connecting fiber optic cables and copper wires [and] has 3,000 employees in 25 countries....

  14. Investors [at HIG Capital] propose $119.3 million buyout of Happy Kids [apparel], Bloomberg via NYT, C4.
    ...The transaction [is] supported by Happy Kids' major shareholders....

  15. [$80m] Pilgrim nuclear sale [to Entergy] expected to close today, by Peter Howe, Bos Globe, F9.
    [And close it did - ]
    7/14 Pilgrim deal to Entergy completed - $81m sale of nuclear plant is the first in US history, by Peter Howe, Bos Globe, E1. ...the first successfully completed nuclear plant sale in US history. It may herald a new era for many of the nation's 103 nuclear power plants, which not long ago were widely considered albatrosses....
    [We hope not. They ARE albatrosses - and that's an insult to the albatross! This is a technology that is appropriate only in the center of stars like our Sun, not in the delicate biosphere of Class-E planets, like Earth.]

  16. European cable deal [#2], Bloomberg via NYT, C4.
    Europe's 2nd-largest cable TV company, United Pan-Europe Communications NV, said it would...also buy the Hungarian cable operator Ujpest for $10 million....

  17. Bausch & Lomb agrees to sell its [Miracle Ear] hearing aid business [for $undisclosed], AP via NYT, C4.

  18. A-1 International Foods Inc. NYT, C4. ...Los Angeles...was bought by Royal Wessanen NV, Amstelveen, the Netherlands, a US distributor of specialty foods, for an undisclosed price....

  19. SPX Corp., NYT, C4. ...Cleveland, the world's largest maker of automobile-testing equipment, agreed to sell its Acutex unit...to Hilite Industries, Cleveland, for an undisclosed price.

7/11-12  One takeover announced ($unspecified) -

  1. 7/12  Law firms approve U.S.-British merger (A1) - Rogers & Wells approves merger with London firm (C1) -
    American and British firms set to merge, by Melody Petersen, New York Times, p. C13 (NE).
    [This much heralded article doesn't even enlighten us as to the power gradient or the price.]
    Lawyers at Rogers & Wells in New York and Clifford Chance in London announced yesterday [SUNDAY??! - media manipulation alert!] that they had approved a merger of their firms, the first combination between major British and American law firms. At the same time, the firms' partners said they had agreed to push forward with plans to merge with Germany's third-largest law firm [Pünder, Volhard, Weber & Axster of Bonn? Berlin? Düsseldorf? Munich? - Melody fails to inform us] - a move that would create the largest law firm in the world [with] 2,700 lawyers and 30 offices worldwide [and] more than $1 billion in fees [annually. Currently Skadden, Arps, Slate, Meagher & Flom [we are not making this up] in New York leads in fees [with] $890 million last year [and] Chicago's Baker & McKenzie [leads in lawyers with] 2,330....
    [One voice of sanity in this whole media event - ]
    Robert Sheehan, executive partner at Skadden, Arps, said..."You tend to be known by the work you do"...not just by the size of the firm.
    [Amen to that, bro! When merger hysteria starts hitting the barristers - across borders and law systems - it's almost enough to pry us away from our usual "diversity is beautiful" and go right back to E.F. Schumacher's "Small is Beautiful"! And here's more dirt to reassure you about lawyers - ]
    ...Partners [American?] had agreed to a compensation system...more British than American. Most British firms pay their partners based on...the number of years they have worked for the firm, a system known as "lock step"....
    [And since "partners at Rogers & Wells voted unanimously" ie: in lock step "to join the British giant," they've obviously got something in common.]
    Most American law firms have opted instead for a system that they refer to as "eat what you kill," where partners are paid based more on the amount of new business they generate.
    [At last, an unintentional admission by American sleaze, oops, we mean "lawyers," of their destructive role in business and society.]

7/10  Another 8 Takeovers Reported -

  1. Swisscom bought [majority] interest in Debitel, by Elizabeth Olson, New York Times, p. B2 (NE).
    The Swiss telecommunications company...is buying a 58% share in the German wireless company.... Under the $1.7 billion deal, Swisscom will acquire 32% of the company's shares from the car maker DaimlerChrysler and the remaining shares from Divaco, a joint venture of the trading company Metro and Deutsche Bank. The acquisition will nearly double Swisscom's customers, to 7 million.

  2. Allstate to buy a life insurance company [American Heritage Life Investment, for $1.1b], AP via NYT, B3.
    ...The Allstate Corp...is the nation's largest publicly traded insurer....

  3. Allied Signal sells one business and buys another, Dow Jones via NYT, B3.
    Allied Signal Inc...purchased Johnson Matthey PLC's [Minn.-based] electronics unit...Johnson Matthey Electronics, [a leading supplier] of materials to the semiconductor industry,.\..for $655 million..."to enter additional higher-margin specialty segments...."
    [Huh? How was that?]

  4. KN Energy to acquire a rival pipeline company, Bridge News via NYT, B3.
    Shares in...KN Energy Inc. soared yesterday as analysts applauded its move to acquire...Kinder Morgan Inc. for $506 million in stock....
    [A "Kinder and gentler" Morgan?]
    KN Energy's chief executive, Larry Hall, will step down. The new company will adopt the name Kinder Morgan....
    [Pretty strange takeover where the target's name and CEO win out! Maybe it's an example of Lao Tzu's ancient precept that "in a battle between two evenly matched commanders, the more compassionate wins out."]

  5. Allied Signal sells one business and buys another, Dow Jones via NYT, B3.
    Allied Signal Inc. sold its Laminate Systems business yesterday to Rutgers AG for about $425 million.... Rutgers, based in Essen, Germany, is a plastics and chemicals company.

  6. Fedco to sell its stores to Target, Dow Jones via NYT, B3.
    Fedco Inc. said yesterday that it had agreed to sell its real estate assets, [consisting of] 13 stores in So. Calif., to Dayton Hudson Corp's Target Stores for about $120 million. Fedco...is the nonprofit operator of 10 membership retail stores and 3 appliance and furniture centers. Fedco, which is going forward with the deal under a Chapter 11 bankruptcy petition, said it would cease its retailing operations after holding close-out sales of existing inventories....
    [Wait a minute. How can a nonprofit go bankrupt?! Guess you gotta be kinda dumb and spend a lot of time doin' all the paperwork the government dishes out for non-profits.]
    Target, a national retailer based in Minneapolis with 859 stores in 41 states, intends to remodel most of the stores and dispose of the rest.
    [What kind of dumpster do they have in mind?]

  7. Sysco to buy a California meat distributor, Bloomberg via NYT, B3.
    ...North America's [isn't that sweet - they always say that when they want to include Canada] largest food-service distributor and marketer said yesterday that it was buying the Newport Meat Co. of Irvine, Calif. Terms were not disclosed....

  8. Ziff-Davis Inc.'s ZDnet, NYT, B3.
    ...San Francisco, an Internet technology news company, agreed to buy the closely held Softseek Inc., a software reviewer and product download site, for an undisclosed price.

7/09  8 Takeovers Reported -

  1. Abbott is buying Perclose for $680 million, Bloomberg News via New York Times, p. C4 (NE).
    ...to expand its hold on the fast-growing market for mechanical heart valves.... Last month [6/22], it said it would buy the Alza Corp. for $7.1b....

  2. CRH of Dublin agrees to acquire another U.S. company, Reuters via NY Times, C4.
    CRH PLC...Europe's third-largest building materials company..\..said yesterday that its United States unit, Oldcastle Materials, had acquired the Thompson-McCully Companies, Michigan's leading asphalt and paving company, for $340 million in cash plus a deferred payment of $82 million over five years [$422m total]. The deal, together with two other deals this week (counted together in #4 below), brings CRH's total 1999 acquisition spending to about $1.32 billion.... CRH...is expanding in the U.S. as economic growth in Europe remains slow.
    [See the incredible story of how the owner of Thompson-McCully shared the money from the sale with his employees on our goodnews page 9/17/99 "For $128 million, a seat in bosses' hall of fame".]

  3. Autonation in $200 deal for 16 dealerships, Reuters via NYT, C4.
    ...The world's largest auto retailer, whose chairman is billionaire H. Wayne Huizenga, said yesterday that it had agreed to buy 16 dealerships [to] expand its reach in fast-growing markets in Calif., Col., Fla., Tex., and Wash....

  4. CRH of Dublin agrees to acquire another U.S. company, Reuters via NY Times, C4.
    CRH PLC...Europe's third-largest building materials company..\..said yesterday that its United States unit, Oldcastle Materials, had acquired the Thompson-McCully Companies [see above].... On Monday, Oldcastle announced the purchase for $146 million of two New Jersey companies: Millington Quarry Inc. and Dell Contractors Inc.
    [We'll count these 2 NJ firms together since we don't have details or individual purchase prices.]

  5. Unlimited Solutions Inc., NYT, C4.
    ...Columbus, Ohio, agreed to be acquired by NSB Retail Systems PLC, Basingstoke, England, the top provider of software and support services to British apparel retailers, for $59 million in stock.

  6. Adaptec Inc., NYT, C4.
    ...Milpitas, Calif., a maker of software that connects disk drives and add-ons to computers, acquired the German-based Cequadrat GmbH for $25 million in cash.

  7. Wachovia is buying southeastern insurance broker, Reuters via NYT, C4.
    The Wachovia Corp., a regional bank in the Southeast...in another step to reach wealthy clients..\..said yesterday that it had agreed to buy the life insurance broker Barry, Evans, Josephs & Snipes Inc...a Charlotte, NC-based broker that employs about 30 people [and] specializes in creating insurance products for affluent families to transfer wealth, as well as benefit plans for executives. Terms...were not disclosed....

  8. [Not counted before, so...]
    Wachovia is buying southeastern insurance broker, Reuters via NYT, C4.
    The Wachovia Corp., a regional bank in the Southeast...recently bought Offitbank Holdings Inc., a New York firm that manages money for wealthy clients.

7/08  16 Takeovers Reported -

  1. Cox swaps its AT&T stock for Cable Systems, AP via New York Times, p. C3 (NE).
    Cox Communications Inc. has agreed to swap its AT&T stock valued at $2.8 billion for AT&T-owned cable television systems in seven Southern and Western states. Under the deal, Cox will also receive ["receive" or pay??] $750 million in other consideration, including cash.... Cox will receive AT&T cable systems that serve 316,000 customers in Tulsa, OK and Baton Rouge, La... and Peak Cablevision, which has 117,000 customers in Oklahoma, Arkansas, Utah and Nevada. The transaction is valued at about...$4,230 a subscriber.
    [And how long will it take to make that back?]

  2. Hewlett-Packard to pay $491 million to get rest of unit, Bloomberg via NYT, C3.
    ...said yesterday that it had agreed to...buy [Yokogawa Electric Corp's] 25% stake in Hewlett Packard Japan Ltd. and made the joint venture a wholly owned subsidiary.... HP formed the joint venture in 1963, when Japanese law restricted foreign ownership of businesses to 50% or less. The law changed in 1973.
    [Ahso, another unplugged bunghole below the waterline of Japan's once leakproof Ship of Yen. This sounds like the last 25%. When did HP get the 2nd-last 25%? - that's when we should really have counted this takeover. But better now than never.]

  3. Saturn Electronics to buy Smartflex [Systems] for $67.8 million, Reuters via NYT, C3.

  4. National-Oilwell acquires CE Drilling for $65 million, Bloomberg via NYT, C3.

  5. NN Ball and Roller Inc., NYT, C3.
    ...Tenn., a ball-bearing parts maker, acquired Industrial Molding Corp., a plastic ball-bearings component maker, for about $26 million in cash and stock.

  6. Leggett & Platt in deals to expand furnishing business [eg: by acquiring Met Displays of Chicago], AP via NYT, C3.
    ...a [Mo.-based] company specializing in residential and commercial furnishings said yesterday that it had bought seven companies involved in related businesses with total sales of about $165 million. The companies include those involved in store fixtures, store displays, storage and material handling systems and manufacturing....

  7. Leggett & Platt...to [acquire Toledo Store Fixtures of Ohio], AP via NYT, C3.

  8. Leggett & Platt...to [acquire Beeline Group of Cal.], AP via NYT, C3.

  9. Leggett & Platt...to [acquire Jarke Corp. of Ill.], AP via NYT, C3.

  10. Leggett & Platt...to [acquire Arc Specialties of Cal.], AP via NYT, C3.

  11. Leggett & Platt...to [acquire Yarborough Industrial Fabrics of N.C.], AP via NYT, C3.

  12. Leggett & Platt...to [acquire Wyn Products of Sydney, Australia], AP via NYT, C3.

  13. Johnson & Johnson, NYT, C3.
    ...N.J., the world's biggest maker of medical products, bought Angioguard Inc., a closely held maker of a device intended to reduce the risk of strokes and heart attacks after some cardiac procedures. Terms were not disclosed.

  14. Rushmore to buy two day-trading firms, Bloomberg via NYT, C8.
    Rushmore Financial Group...a financial services company based in Dallas, bought the closely held Millennium Daqcom/Dallas LP and Daqcom International LLC for an undisclosed amount....
    [We're gonna count 'em as one because they sound suspiciously similar. However, the article goes on to mention two other acquisitions that Rushmore did last month and that we didn't count then, so on our principle of 'better now than never,' here they are...]

  15. ...Last month, Rushmore bought a trading software company, Block Trading Inc....

  16. ...Last month, Rushmore bought...a money management firm, the John Vann Company....
    "During the next several months, we expect to become a national and global player" in on-line trading, said Dewey Moore Jr., president and chief executive of Rushmore....
    [And it's so much easier to buy market share than build it, ain't it, Dewey Jr.]

7/7 Back into Meltdown with... 14 Takeovers Reported -

  1. GPU to buy rest of Midlands Electricity, Bloomberg via NYT, C4.
    GPU Inc. said yesterday that it had agreed to buy the half of the British power provider Midlands Electricity PLC that is does not already own from the [Cincinnati-based] Cinergy Corp. for $700 million in cash. It will also take on $1.1 billion in debt....

  2. A media world to conquer - United Pan-Europe Communications, Amsterdam [paid $635 million for] AT Entertainment, Warsaw, by John Tagliabue, NYT, C1.

  3. Northern States Power [of Minneapolis] to buy 8 Connecticut plants, Bloomberg via NYT, C4.
    ...from Northeast Utilities, New England's largest electric utility, for $460 million in cash....

  4. IBM to end chip deal with Toshiba, Bloomberg via NYT, C2.
    The IBM Corp. will sell its half of a computer-chip plant to the joint owner, the Toshiba Corp., as IBM, the No. 1 computer maker, scales back its low-profit memory business.... Japan-based Toshiba will will take over the plant by the end of next year.... Toshiba will pay IBM 20-30 billion yen ($164-246 million [so say $205m]) to buy the rest of the plant....
    [First story we've seen where they say the "financial terms were not disclosed" and then turn around and disclose them in the last paragraph.]

  5. [Dutch publisher] Wolters Kluwer agrees to acquire Bankers Systems [of Minn. for $190m], Bridge News via NYT, C4.

  6. American Tower to acquire Watson Communication [for about $73m], Blooomberg via NYT, C4.

  7. ...American Tower also said it had completed a $38.8 million acquisition of Commsite International Inc., an antenna-site development and management company based in Vienna, Va.

  8. EFTC Corp., NYT, C4.
    ...Denver, an electronics company, plans to...sell its repair and warranty-service business to Jabil Circuit Inc., St. Petersburg, Fla., for $30 million \and\ lay off 150 employees, about 6% of its work force....

  9. Kitty Hawk Inc., NYT, C4.
    ...Dallas, an air-freight charter service, agreed to sell its JT8D engine and Boeing 727 aircraft maintenance operations to Aviation Sales Co., Miami, for $21.5 million in cash and other payments.

  10. A media world to conquer - News Corporation, London [acquired management control of] Stream, Rome, by John Tagliabue, NY Times, C1.
    ...a pay-per-view company fomerly run by the Italian phone company.

  11. Interstate Bakeries to buy Culinar, uniting Hostess, Bridge News via NYT, C4.
    Interstate Bakeries Corp. of Kansas City, Mo., which owns the U.S. rights to Twinkies and other Hostess-brand snack cakes, announced plans yesterday to buy Culinar Inc., a snack-cake maker based in Montreal, for an undisclosed price. Culinar...owns the Canadian trademark for Hostess.

  12. Owens & Minor Inc., NYT, C4.
    ...Glen Allen, Va., agreed to buy the privately held Medix Iinc., Waunakee, Wis., for an undisclosed amount. Both companies distribute medical and surgical supplies.

  13. Standard & Poor's Corp., NYT, C4.
    ...New York, a unit of McGraw-Hill Cos., acquired Rational Investors Inc., a provider of software that helps 401(k) investors manage their retirement accounts. Terms were not disclosed.

  14. Lyons to merge with FRCH Design, NYT, C6.
    Two longtime collaborators...are merging to create Waypoint Group in New York, an integrated marketing and design brand consultancy. Waypoint will have 230 employees working on accounts....
    [And what happens to the employees currently at FRCH Design Worldwide of Wilmington, Del.?]

7/06  Five Takeovers, plus yesterday's one, despite US holiday (you mean them other guys did stuff without us?!?)

  1. GNC, Royal Numico in $1.75b deal - Merger is largest ever in US nutrition industry, by Tim Molloy, AP via Boston Globe, p. E1.
    PITTSBURGH - Royal Numico, Europe's top baby-food maker, is acquiring General Nutrition Cos...to become the world's biggest nutrition company.... The two companies will retain their own names, and no job losses are expected as a result of the deal....

  2. Gas supplier broadens reach, by Alan Cowell, New York Times, p. C4 (NE).
    Britain's dominant natural gas supplier, Centrica PLC, said it would buy the Automobile Assoc. [oh THERES a logical business mix - not!], the country's leading provider of roadside assistance , for $1.74 billion....

  3. Motorola to sell 2 plants, Agence France-Presse via NY Times, C4.
    Taiwan's Advanced Semiconductor Engineering Group said it would acquire two semiconductor assembly plants (in Taiwan and South Korea) from Motorola Inc. for a combined $367 million....

  4. Illinois utility deal, NYT, C7.
    The Illinova Corp's Illinois Power Company unit said today that it had agreed to sell its Clinton, Ill., nuclear power station to the Amergen Energy Co. for $20 million....
    [Now there's a white elephant - noxious nuclear at the dawn of the Third Millennium. Feeling a little nauseous nostalgia?]

  5. British Internet provider sold, by Alan Cowell, NYT, C4.
    Cable and Wireless PLC said it had bought Internet Network Services Group, Britain's largest independent Internet service provider [ISP], but did not state the price....
    [Well they ain't independent no more, no more!]

7/03  Ten Takeovers -

  1. Ace completes deal for Cigna unit and plans cutbacks, Reuters via NYT, B3 (NE).
    ...completed its $3.45 billion acquisition of the Cigna Corp's property-casualty insurance business and that it would cut about 15% of the newly acquired business's work force. Ace [or "ACE" in 12/14/00 NYT C4], based in Hamilton, Bermuda...expected to cut about 1,500 jobs and close about 40 offices....
    [The more mergers, the more concentration, the less circulation, the less diversity, the less survivability.]

  2. Glynwed to buy Canada's leading pipe manufacturer, Dow Jones via NY Times, B3.
    [More of spider Kozlowski's work - see below 6/30 "The quiet giant" dba tarantula.]
    IPEX Inc., Canada's largest maker of plastic pipe and fittings, is to be sold to Glynwed International PLC for $352.9 million [from] Ivaco Inc. [and] Scepter Holdings....
    [You know, this binge of buyouts will probably put the axe to the root of the whole stock market system. The very idea that "ownership" is compatible with absentee speculators and numbers players rather than onsite stakeholding stewards and employees!]

  3. Benchmark to buy Avex Electronics for $289 million, Dow Jones via NYT, B3.
    ...from the privately held J M Huber Corp....

  4. Genesys S.A., NYT, B3.
    ...Montpellier, France, a provider of teleconferencing services, agreed to buy Denver-based Williams Companies' conferencing unit for $39 million.

  5. CP Clare to sell [electro-magnetic] parts unit, by Ross Kerber, Boston Globe, F1.
    ...to a Tokyo components maker [Sumida Electric Co. Ltd.] for about $36 million....

  6. Firm buys Pittsfield [Mass.] station, AP via Bos Globe, F1.
    ...Radio station WBEC, with its AM and FM sides, is being sold to Tele-Media Broadcasting for more than $4.6 million....

  7. Belo to acquire $315 million in assets from MAC, Reuters via NYT, B3.
    [We're not counting this one because our evolving standards require takeover of a majority interest, not just "assets". But buried in this story is the one we are counting - ]
    ...Belo also announced that it had acquired the Denton Publishing Co, publisher of The Denton Record-Chronicle in Texas, but did not disclose the terms.

  8. Brazilian supermarket deal, by Simon Rivero, NYT, B2.
    Carrefour SA of France continued a buying spree of Brazilian supermarkets with the acquisition of Roncetti, a regional chain. In its third acquisition in a month, Carrefour will take control of a chain of 13 supermarkets and one hypermarket....

  9. Shrewsbury [Mass.] newspaper sold, AP via Bos Globe, F1.
    Community Newspaper Co. [of Needham] is buying the Shrewsbury Chronicle, a 2-year-old local weekly newspaper.... The terms of the purchase weren't disclosed.... CNC, which is owned by Fidelity Capital of Boston, publishes 89 weekly [local] newspapers and one daily paper....
    [Another blow at "freedom of the press."]

  10. Kollmorgen [of Mass.] acquires Calzoni [of Italy], Dow Jones via Bos Globe, F1.
    ...its naval systems partner.... Financial terms weren't disclosed....

7/02  Nine Takeovers -

  1. Equity Residential in $203[+$530] million deal for Lexford [Residential Trust], Bloomberg via NY Times, C4 (NE).
    ...making its first move into the lower-income housing market...people with annual incomes of $25-35K..\.. Equity Residential, a real estate investment trust based in Chicago and controlled by the billionaire Sam Zell...will also assume $530 million of debt....

  2. British software deal , by Alan Cowell, NY Times, C4.
    Britain's biggest phone company, British Telecommunications PLC, said it would acquire Control Data Systems Inc, a closely held software company based in Minnesota, for $340 million....

  3. Go2Net is buying processor of on-line transactions, Bloomberg via NYT, C4.
    ...Authorize.net Corp...for $90.5 million in cash and stock to diversify its revenue sources.... Authorize.net's executives and 22 employees are to remain based in Provo, Utah. The purchase price could increase based on its performance in the next two years. Stock in Go2Net...fell....

  4. Freedom Securities agrees to buy Gibraltar Securities, Reuters via NYT, C4.
    ...for $40 million in cash and stock, increasing its client base by 40,000, or about 15%.... Shares in Freedom fell....

  5. National Oilwell Inc., NYT, C4.
    ...Houston...said it would buy Dupré Supply Co. and Dupré International Inc., Lafayette, La., suppliers of pipe, fittings and valves, for $37 million in stock and assumed debt.

  6. John Wood Group P.L.C., NYT, C4.
    ...Aberdeen, Scotland, an energy-services company, agreed to buy Kreisler Mfg Corp, St. Petersburg, Fla., a maker of metal parts for aircraft engines, for $25.5 million.

  7. Firm buys Laura Ashley's North American chain for $1 - Will pay UK retailer royalties on sales, licensing, by Chris Reidy, Bos Globe,C3.
    ...Partly with the backing of affiliates of the MUI Group, a large Malaysian conglomerate, [Paul] Ng helped form his private company, which bought the North American stores from Laura Ashley Holdings, the British company founded by designer Ashley..\.. Ng and a company that employs 50 people in Boston think they have a strategy for a turnaround....
    [Now we've seen everything. Chris Reidy takes us through 17¼ column inches without telling us the name of Ng's company!]

  8. Tosco buys 67 gas stations and 20 sites in Southeast, Reuters via NYT, C4.
    ...from the closely held Boardman Petroleum Inc. for an undisclosed price....

  9. Lucent gets CCOM Information for undisclosed terms, Bloomberg via NYT, C4.
    ...Lucent stock rose....

7/01/99 15 Takeovers -

  1. $15b Italian banking: Italian banks in merger, but French banks fail to end fight, by John Tagliabue, NYT, C4.
    ...In Milan, the boards of Banca Intesa, the 2d-largest bank in Italy, and Banca Commerciale Italiana, the No. 4, approved a $15 billion share swap creating what will be Italy's largest banking group, with assets of roughly $290 billion. San Paolo-IMI is currently the largest bank....
    [On 8/18/99 in "Progress on bank deal," Dow Jones via NYT, C4, Intesa's shareholders approved its acquisition of Commerciale Italiana.]

  2. $3.1b cable TV: Charter to acquire Bresnan [Communications], Bloomberg via NYT, C4.

  3. $575m telecomm equipment: Tellabs to buy Netcore Systems..., Dow Jones via NYT, C4.

  4. $345m phone switching eqpmt: Daewoo sells switching-equipment division [to Callif.-based Laves Investment Inc.], Bloomberg via NYT, C2.

  5. $250m healthcare/medical news: Healtheon and WebMD plan to buy news service [Greenberg News Networks], by Saul Hansell, NYT, C8.

  6. $220m banking: Webster Financial to buy New England Community [Bancorp of Windsor, Conn.], Reuters via NYT, C4.

  7. $107m British textiles: Purchase by Coates Viyella, Bloomberg via NYT, C4.
    Britain's largest textile company [arranged] to acquire Hicking Pentecost PLC....

  8. $83m how-to publishing: Pearson sells Macmillan reference unit [Macmillan General Reference], NYT, C6.

  9. $59m Euro language software: Lernout & Hospie buys Belgian firm [Brussels Translation Group], Bloomberg via Boston Globe, C7.

  10. $? autos/tanks: General Motors to acquire Hummer brand name, Reuters via NYT, C4.
    ...The aluminum-body Hummer is the civilian version of the Humvee all-terrain military vehicle, which gained fame during the Persian Gulf war of 1991.

  11. $? advertising: 2 Boston agencies agree to combine, NYT, C6.
    ...The smaller one, Holland Mark Martin Edmond, buys the bigger one, Ingalls, which had been the largest remaining independent agency in New England.
    [We're telling ya, these big boys are just getting bored with managing.]
    Holland Mark has about 80 employees...while Ingalls has about 100....
    [This deal was clinched on 9/03; see "Ad agencies complete merger", Bos Globe, 9/04/99, p. F1.]

  12. $? computer chips: National Semiconductor to sell Cyrix unit [to Taiwan's Via Technologies], Bloomberg via NYT, C11.

  13. $? investment banking: U.S. Bancorp, NYT, C4.
    ...Minneapolis, will acquire the investment banking unit of John Nuveen Co., a financial services firm, and make it part of its Piper Jaffray brokerage subsidiary.

  14. $? asset management: Bank of New York Co., NYT, C4.
    ...the world's largest custodian of investor assets, agreed to buy the corporate trust business of IBJ Whitehall Bank and Trust Co., New York....

  15. $? US/Euro baking: Earthgrains Co., NYT, C4.
    ...St. Louis, a bread maker, acquired Patrick Raulet SA, Dole, France...becoming the largest refrigerated dough supplier in France.

For earlier Mergers&Acquisitions, click on the desired date -

  • Jun.16-30/99
  • Jun.1-15/99
  • Apr-May/99
  • Mar/99
  • Feb/99 and before

    For more details, our laypersons' guide to our great economic future Timesizing, Not Downsizing is available at bookstores in Harvard Square, Cambridge, Mass. or from *Amazon.com online.

    Questions, comments, feedback? Phone 617-623-8080 (Boston) or email us.


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