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   Strategies & Market TrendsSpeculating in Takeover Targets


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To: richardred who wrote (2694)10/14/2011 12:33:54 AM
From: richardred
   of 6517
 
CORRECTED - ITT says emerging markets, M&A to aid growth after spin-offs

Oct 13 (Reuters) - ITT Corp on Thursday said growth in emerging markets and acquisitions would fuel sales and profits after it splits into three companies.

The company, which is spinning off its water and defense segments later this month, also said product orders are holding up despite global economic jitters.

"We're not seeing challenges in our orders at this point," Chief Financial Officer Denise Ramos, said during an investor presentation on Thursday. She will become chief executive of the new ITT after the spin-offs.

The new ITT Corp will provide components for aerospace, rail, energy and other markets with estimated 2011 revenue of $2.1 billion. Its products include shock absorbers used on railroad cars and buses, aircraft parts and industrial pumps used to refine oil and gas. ITT had revenue of about $11 billion in 2010.

Ramos said expansion in places such as China, India and Brazil would bolster growth from emerging markets.

She also said acquisitions that fill gaps in technology or complement its core businesses would aid results.

"Our sweet spot for acquisitions is companies with annual revenues between $15 million and $50 million," Ramos said.

ITT said on Thursday that it will buy Blakers Pump Engineers, an Australia company that is a distributor for its Goulds Pumps industrial business.

The addition of Blakers, which had annual revenue for the latest year of about $27 million, will help ITT expand in energy and mining industries in Australia. Terms weren't disclosed.

Based in White Plains, New York, ITT is spinning off its water and defense units to take advantage of recovering commercial and industrial markets as global military spending comes under pressure.

The new water company will be called Xylem and the defense spinoff will be called ITT Exelis.

ITT shares closed down 2.3 percent to $44.88 on the New York Stock Exchange on Thursday.
reuters.com

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To: richardred who wrote (2605)10/16/2011 8:49:20 PM
From: richardred
1 Recommendation   of 6517
 
Kinder Morgan to buy El Paso Corp. for $20.7BKinder Morgan to buy El Paso Corp. for $20.7B, creating largest US natural gas pipeline.


FILE - In this Nov. 16 2006 file photo, Kinder Morgan, Inc. Chairman and CEO Richard D. Kinder attends a Houston Rockets NBA basketball game in Houston. Kinder Morgan Inc., a Houston pipeline company, on Sunday, Oct. 16, 2011 said it will buy El Paso Corp. in a cash and stock deal worth about $20.7 billion. (AP Photo/David J. Phillip, File)




Chris Kahn, AP Energy Writer, On Sunday October 16, 2011, 8:23 pm
NEW YORK (AP) -- Kinder Morgan plans to buy El Paso Corp. in a $20.7 billion deal that's expected to create America's largest natural gas pipeline operator.

Kinder Morgan Inc. is expanding its reach as the U.S. becomes increasingly reliant on natural gas. Drillers are pumping ever-increasing amounts from underground shale deposits across the U.S. Natural gas prices have dropped to less than half their level of three years ago, and power companies are using more of the fuel because it emits fewer greenhouse gases than coal.

The deal also adds to founder and CEO Richard Kinder's energy empire. Kinder, 66, started the company with friend William Morgan after leaving his post as president of the now-defunct Enron Corp. Forbes lists his net worth at $6.4 billion.

Kinder Morgan will more than double the size of its pipeline network by purchasing El Paso. The new pipeline system would stretch 80,000 miles -- long enough to wind around the globe three times. Kinder Morgan's pipelines in the Rocky Mountains, the Midwest and Texas will be woven together with El Paso's expansive network that spreads east from the Gulf Coast to New England, and to the west through New Mexico, Arizona, Nevada and California.

"We believe that natural gas is going to play an increasingly integral role in North America," Kinder, who is also the company's chairman, said on Sunday when the deal was announced.

Robert McFadden, a Houston-based natural gas pipeline consultant, said the expanded network will make it easier to move natural gas from new shale fields that have mushroomed across the U.S. in the past few years.

"Think of it like federal highways and toll roads," McFadden said. "The more options you have to get from point A to B, the shorter your trip."

Pipeline companies, which get paid for moving natural gas from the field to the market, have been in big demand recently as drillers tap rich new deposits in Pennsylvania, Montana, Utah and other states. The pipeline companies been able to keep transport fees roughly constant during the past several years, even though natural gas prices have dropped from more than $13 per 1,000 cubic feet in 2008 to less than $4, pipeline this year.

The acquisition comes on the heels of other consolidation in the industry. Energy Transfer Equity is planning to buy Southern Union Co. for $5.7 billion after a tug of war with Williams Cos.

With more pipelines under its control, Kinder Morgan could charge suppliers higher transport fees, and that may affect the price that utilities and other major natural gas buyers pay for natural gas. But home owners and other retail natural gas customers won't notice much of a change on their monthly bills, if any. Retail gas bills are largely influenced by local distribution costs and other items that won't change with this deal, McFadden said.

Once approved, Kinder Morgan said it will also become the largest independent transporter of gasoline, diesel and other petroleum products. It will also be the largest independent owner and operator of petroleum storage terminals. It will be the largest transporter of carbon dioxide in the U.S., moving about 1.3 billion cubic feet per day.

Kinder Morgan and El Paso are both based in Houston. Kinder will remain chairman and CEO of the combined company.

The combined company will surpass other pipeline companies like Enterprise Products Partners LP, also based in Houston. Enterprise operates about 50,200 miles of pipelines.

The companies valued the deal at $26.87 per El Paso share, which includes $14.65 in cash, 0.4187 in Kinder Morgan shares and 0.640 in Kinder Morgan warrants.

Based on El Paso's about 770.25 million outstanding shares, the deal is worth about $20.7 billion.

Kinder Morgan is also assuming $13 billion, net of cash, of El Paso debt as part of the deal. It intends to fund the purchase with a combination of equity and more debt. But once the deal closes, the company said it plans to sell off El Paso's exploration and production assets and the cash raised will help reduce that debt.

Kinder Morgan said the deal is expected to boost Kinder Morgan's shareholder value through increased cash flow and future growth opportunities. It's also expected to boost Kinder Morgan's dividends and result in about $350 million a year in cost savings.

El Paso had announced plans to spin off its exploration and production unit in May.

The acquisition, which has been approved by the board of both companies, is expected to close in the second quarter of next year and needs regulatory approval.

finance.yahoo.com

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To: richardred who wrote (2924)10/16/2011 9:08:38 PM
From: richardred
   of 6517
 
I would say this El Paso deal ups the speculative appeal of NFG. IMO Dominion Resource a likely interested party. I'll say speculative appeal in NFG goes from a 5 to a 7.
Message 27600495
Message 27609500

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From: richardred10/17/2011 10:20:43 AM
   of 6517
 
Wow, one of the biggest takeover premiums (over 250%) I can remember.

Roche Agrees to Buy Anadys Pharmaceuticals for About $230 Million in Cash
By Phil Serafino and Naomi Kresge -

Roche Holding AG (ROG) agreed to buy Anadys Pharmaceuticals Inc. (ANDS) for about $230 million to build its portfolio of experimental drugs for hepatitis C, a market that may be worth as much as $15 billion annually by 2019.

Anadys holders will receive $3.70 a share in cash, Basel, Switzerland-based Roche said in a statement today. That’s more than triple San Diego-based Anadys’s closing price on Oct. 14 of $1.04 in Nasdaq Stock Market composite trading. Anadys more than doubled to $2.62 at 9:52 a.m.

Anadys’s most advanced drug candidate, setrobuvir, is being studied in combination with the generic antiviral pill ribavirin and interferon, an injection sold by Roche as Pegasys. The U.S. company’s compounds could help Roche develop a therapy that doesn’t require the use of interferon, Jean-Jacques Garaud, Roche’s head of pharmaceutical research and early development, said in the statement.

“We see a potential upside for Roche’s hepatitis C franchise,” Andrew Weiss, a Zurich-based analyst for Bank Vontobel AG, wrote in a note to investors today. Weiss, who recommends buying Roche’s shares, estimated the drugmaker’s annual hepatitis C-therapy sales will peak at 1.7 billion Swiss francs ($1.91 billion).

Partnerships Today’s deal follows an agreement between Roche and Merck & Co. in May to work together to market hepatitis C treatments in the U.S. The Whitehouse Station, New Jersey-based drugmaker won U.S. approval for Victrelis, the first new hepatitis C treatment in a decade, in May. Roche will include the drug, also known as boceprevir, in its marketing for Pegasys.

Victrelis competes with Incivek, or telaprevir, a second new hepatitis C treatment from Vertex Pharmaceuticals Inc. (VRTX) also approved this year. Roche is selling more Pegasys in combination with the Vertex drug than with its partner Merck’s medicine, Pascal Soriot, head of the Swiss company’s pharmaceutical unit, said in an Oct. 13 conference call.

Jefferies International Ltd. estimates the market for hepatitis C drugs may total $15 billion a year by 2019.

Anadys is also conducting early clinical trials on ANA773, a potential treatment for hepatitis C, other chronic infections and cancer.

The Swiss company said it aims to begin a tender offer “promptly” for Anadys’s shares, and expects the bid to be completed this year. Citigroup Inc. bankers are advising Roche, and Davis Polk & Wardwell LLP is providing legal advice. Anadys is using Lazard Ltd. (LAZ) as bankers and Cooley LLP for legal advice.

Roche fell 0.5 percent to 142 Swiss francs at 3:50 p.m. in Zurich. The stock has risen 3.7 percent this year.

To contact the reporters on this story: Phil Serafino in Paris at pserafino@bloomberg.net; Naomi Kresge in Berlin at nkresge@bloomberg.net

To contact the editor responsible for this story: Phil Serafino at pserafino@bloomberg.net

bloomberg.com

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To: richardred who wrote (2924)10/17/2011 10:31:07 AM
From: richardred
   of 6517
 
Most definitly a merger monday., and it's been awhile.

Statoil buys Brigham Exploration Co.in $4.4 billion deal
Stories You Might Like

By Katarina Gustafsson

-- Statoil to buy US company Brigham Exploration Co. in $4.4 billion deal

-- Deal gives Statoil acreage in the tight oil plays Bakken and Three Forks, the largest oil accumulations in the U.S.

-- Deal strengthens Statoil's position in unconventional resources

(Rewrites throughout, adding detail, comment, and updating share price)

Statoil ASA /quotes/zigman/285454/quotes/nls/sto STO -2.45% Monday announced the acquisition of Texas-based oil firm Brigham Exploration Co. /quotes/zigman/62908/quotes/nls/bexp BEXP +19.83% in a deal that will strengthen the Norwegian oil and gas major's position in the U.S. oil and gas industry and bring a stronger foothold in unconventional resources.

The Norwegian company will buy Brigham for $36.50 a share in an all-cash tender offer, a 36% premium over the average trading price for the last 30 days. The total equity value of the deal is approximately $4.4 billion, with an enterprise value of about $4.7 billion.

Brigham has over 100 employees and the deal will give Statoil more than 375,000 net acres in the Williston Basin, which has the potential for oil production from the Bakken and Three Forks formations -- the largest oil accumulations in the U.S. Brigham also holds interests in 40,000 net acres in other areas.

"Entering the Bakken and Three Forks tight oil plays and taking on operatorship represents a new significant step for Statoil. We are positioning ourselves as a leading player in the fast growing U.S. onshore oil and gas industry, in line with the strategic direction we have set out," said Statoil Chief Executive Helge Lund.

Commercial tight oil extraction is a relatively new activity and has increased significantly in the last couple of years, Statoil said. Tight oil reservoirs are developed using methods similar to shale gas--another unconventional source in which Statoil is already present in the U.S. at the Marcellus and Eagle Ford fields.

"We believe that unconventional resources will play an increasingly important role in global energy supply. And we want to be an early entrant into these new areas," Lund said.

"These are resources where you can add value through technology--and through the deep understanding of reservoirs and the subsurface which we have."

The Brigham deal also gives Statoil about 690 kilometers of oil, natural gas and water transportation systems in the Williston Basin.

Brigham's board of directors unanimously recommended shareholders accept the offer. Tudor, Pickering, Holt & Co. Securities, Inc. and Goldman, Sachs & Co. are acting as financial advisors to Statoil and Vinson & Elkins LLP is acting as legal advisor to Statoil on this transaction.

At 1109 GMT, Statoil's shares were 0.7% lower at NOK136.90.

marketwatch.com

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To: richardred who wrote (2927)10/17/2011 10:36:11 AM
From: richardred
   of 6517
 
AmeriGas Agrees to Purchase Energy Transfer Propane Unit for $2.8 Billion


AmeriGas Partners LP (APU), the largest retail propane distributor, will buy the propane operations of Energy Transfer Partners LP (ETP) for $2.8 billion, the companies said today.

AmeriGas will pay $1.5 billion in cash, $1.3 billion in common stock and assume $71 million in debt in Energy Transfer’s two propane units, Heritage Operating LP and Titan Energy Partners LP, Energy Transfer said in a statement today.

The transaction is expected to close by early 2012. Energy Transfer will own about 34 percent of AmeriGas common stock, which it has agreed to hold until at least 2013, according to the statement.

The acquisition will add more than 1 million retail propane customers and more than 500 million gallons to AmeriGas’s propane operations, according to an AmeriGas statement.

(The companies have scheduled a conference call for 3:30 p.m. New York time. A live webcast will be available at www.amerigas.com.)

http://www.bloomberg.com/news/2011-10-17/amerigas-agrees-to-purchase-energy-transfer-propane-unit-for-2-8-billion.html?cmpid=yhoo

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To: richardred who wrote (2928)10/17/2011 11:24:49 AM
From: richardred
   of 6517
 
I suspect Energy Transfer Partners LP will be putting some of their proceeds back into their purchase of Southern Union Company. Both NFG and Williams Companies are up in sympathy today.

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To: richardred who wrote (2691)10/17/2011 1:25:16 PM
From: richardred
   of 6517
 
Archived news: Credo small fly interest , but imo notable due to todays Brigham Exploration Co takeover .

Credo Petroleum announces highest initial test rate in company history.



Credo Petroleum Corp., an oil and gas exploration and production company with significant operations in the Williston Basin, Central Kansas and Oklahoma, today provided an update on its North Dakota Bakken horizontal drilling program.

Weisz 11-14#1-H ("Weisz") well successfully completed
Credo's second Bakken well has been successfully completed and production tested at high rates. During testing, the Weisz 11-14#1-H ("Weisz") flowed over 2,000 barrels of oil equivalent from 37 fracture-stimulated stages of Middle Bakken perforations during an early 24-hour period. Brigham Exploration is the operator and Credo owns a 6% working interest. In coming weeks, Brigham will announce the well's exact initial flow rate, but Credo has confirmed through internal calculations that the official initial rate will in fact exceed 2,000 barrels of oil equivalent, marking the highest initial test rate of any well in which Credo has participated in the company's 32 year history.

The Weisz well is located on a 1,280 acre spacing unit about one mile east of Brigham's Olson 10-15-H well which has produced 126,000 barrels of oil equivalent in 18 months. Based on Brigham's exploration plan for the area, up to three Bakken wells are expected to be drilled on the spacing unit and potentially three additional wells to develop the deeper Sanish/Three Forks formation.

Management Comment
Marlis E. Smith, Jr., Chief Executive Officer, said, "I am extremely pleased with the test results of the Weisz, and the initial flow rate record it has set for Credo. Since joining the Board in April of 2009, I have been a staunch advocate of the Bakken, and targeted acquisition of this specific Bakken acreage with our technical team soon after becoming CEO earlier this year. This particular spacing unit could one day see up to six horizontal wells, two additional Bakken wells, and three Sanish/Three Forks wells. Along with the Bakken, the Sanish/Three Forks is highly prospective in the area.

Smith continued, "We look forward to releasing future Bakken well results, including our previously reported Petro-Hunt 1-H well, which is currently in the final stages of completion, and a well in which Credo owns an 18.75% working interest."
epmag.com


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To: richardred who wrote (2921)10/18/2011 1:59:38 AM
From: richardred
   of 6517
 
It must have been to good a deal because Topp's rasied their price to match Walmarts .60 a can. BTW Campbells CPB has just been Cramerized last night.

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To: richardred who wrote (2931)10/18/2011 3:45:22 AM
From: richardred
   of 6517
 
My list of corporate iconic brand names that have yet to be acquired. On the list because they are of scale they still can be acquired. I'm sure I missed some.

Alcoa Inc
AVON
Briggs & Stratton Corp
Campbell's
Colgate-Palmolive Co (Very Big, but never say never)
Church & Dwight Co- Ok Ill give leverage because of the Arm & Hammer brand
Chiquita Brands International Carl Linder Jr just passed away at 92.
Coach
Corning -Corelle, CorningWare, Pyrex sold along with Steuben®, but most everybody knows Corning Glass
Deere
DOLE
General Mills
Goodyear
Clorox
Energizer Holdings Inc
Hasbro Inc
H J Heinz Co
Harley Davidson Inc
H and R Block Inc
Hormel Foods Corp - They get leverage also SPAM
HESS
Hershey
J C Penney
Kellogg's
Kodak Who wants it now, but the brand name has intrinsic value.
Kimberly Clark Corp Gets a pass -Kleenex
Lennox
Macy's Inc
Mattel Inc
McCormick & Co Inc
NCR Corp
Norfolk Southern Corp
Owens Corning
Ryder System Inc Ryder rents trucks
Ralcorp Holdings Inc- Came close- Ralston Purina
Revlon Inc Ok some leverage Ron Perlman damaged it then brought it back
RadioShack Corp
Reynolds American Inc Reynolds wrap
Smith & Wesson Holding
Tiffany and Co
Tyson Foods Inc
Toro Co
US Steel- X marks the spot
Wd-40 Co
Xerox Corp

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