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   Strategies & Market TrendsSpeculating in Takeover Targets

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To: richardred who wrote (3793)5/12/2015 9:54:39 AM
From: richardred
   of 7058
In Big Media Push, Verizon Buys AOL For $4.4B [Memo From AOL CEO Tim Armstrong]

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To: richardred who wrote (3928)5/13/2015 9:31:21 AM
From: richardred
   of 7058
Analysts speculate on higher bid for Syngenta

Swiss farm chemical giant Syngenta saw higher share prices May 11 on speculation of a more lucrative takeover bid from U.S.-based Monsanto.

Swiss English news service The Local reported European analysts thought another bid from Monsanto may be imminent.

On May 8, Syngenta’s website reported that the company received an unsolicited proposal from Monsanto to acquire the company at a price of $486 per Syngenta share with approximately 45% in cash. Syngenta’s board of directors rejected the Monsanto bid, saying in a statement that the offer “fundamentally undervalues Syngenta’s prospects and underestimates the significant execution risks.”

“Syngenta is the world leader in Crop Protection, the number three in Seeds and the first company to introduce integrated solutions for growers,” Michel Demaré, Syngenta Chairman said in the statement. “Monsanto’s proposal does not reflect the outstanding growth prospects of Syngenta’s integrated strategy and the significant future value potential of the company’s crop-focused innovation and market leading positions.”

Monsanto acknowledged its interest in Syngenta on May 8 but said on its website it would have no further comment on its offer.

Syngenta’s shares on the Swiss stock exchange rose 19.3% on May 8 and were up less than 2% in trading on May 11.

Syngenta was formed in 2000 from the merger of Novartis and Zeneca Ag Products and offers an extensive line of vegetable seeds to U.S. growers.

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To: richardred who wrote (3930)5/13/2015 10:07:47 AM
From: richardred
1 Recommendation   of 7058
It's official, Danaher to buy Pall. IMO the only thing that's keeping this market from being totally boring is the acquisitions that are happening. At the end of the day. I think corporations have decided it's time to spend some of that cash and leverage at today low rates. In a couple of years there will be new leadership and they will have time to eliminate the overlap and integrate.

PORT WASHINGTON, N.Y. (AP) -- Danaher will spend approximately $13.56 billion to acquire Pall Corp., a company that makes water filtration systems for airplane manufacturers, public works companies and notably, biopharmaceuticals.

Danaher also announced Wednesday that it will split into two publicly traded companies.

Pall's life sciences segment had $1.5 billion in revenue in 2014, comprising more than half of the company's total revenue for the year. The life sciences unit serves customers in the biopharmaceutical market, food and beverage and medical end markets.

Danaher, which produces goods for the medical and industrial sectors, will pay $127.20 for each share of Pall Corp. share, a 7 percent premium to its Tuesday closing price of $118.62.

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To: richardred who wrote (3893)5/13/2015 11:20:19 AM
From: richardred
   of 7058
Added to MNTX today on the bad news and new low. Very untimely, but I think it has good recovery on infrastructure spending. An area long overdue IMO. Especially lacking in roads and bridges. This picture by my house echoes the theme.

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From: Cautious_Optimist5/13/2015 12:00:15 PM
   of 7058
FWIW, my list of M&A (prey) candidates I am following:

Two chicken enterprises; a lot of value:
SAFM (check the balance sheet and fundamental ratios.)
PPC (Prey or predator potential.)

F Still has colossal value in its inertia- GOOG and AAPL etc. to get strategic entry into transportation sector- sell off the truck division for cash.

TWTR Out on a limb here but TWTR and "tweeting" is becoming a meme, like GOOG was to search. Under the right management and vision, a synergistic social net guerrilla for a legacy global IT, telecom or news conglomerate. I think better future value than Netflix, undervalued and absolutely hated when it was $50/share a couple years ago. I realize I am frighteningly shunned in public on this TWTR bet - I like that as an indicator.

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To: Cautious_Optimist who wrote (3935)5/13/2015 1:13:01 PM
From: richardred
   of 7058
I am familiar with Sanderson and Pilgrim. I have to agree with your potential targets based on reasonable valuations. I also liked Hormel at one time and still follow it. Smithfield Foods (Pork) acquisition by a Chinese comes to mind. The justice dept set a present by allowing that acquisition to happen. So I wouldn't rule out a potential future bid by a Chinese company also.

Message 29694449
Message 28727339

Related food deal
Hormel Foods nears deal for Applegate Farms-sources

<span class="articleLocation">Feb 12 Hormel Foods Corp is in late-stage talks to acquire Applegate Farms LLC, a privately held producer of organic hot dogs, bacon and sausages, to enhance its branded protein offerings, according to people familiar with the matter.

A deal for Applegate Farms could be announced as early as next week and value the Bridgewater, New Jersey-based company at between $600 million and $1 billion, the people said, asking not to be named because the matter is confidential.

A representative for Applegate Farms could not be reached for comment. Hormel declined to comment.

Private equity firm Swander Pace invested an undisclosed amount in Applegate Farms in 2009. The company was founded in 1987 by current CEO Stephen McDonnell.

A sale of Applegate Farms would come amid a slew of merger activity for meat companies.

Recent high-profile deals in the sector have included Hershey Co's acquisition of jerky company Krave, Post Holdings Inc's $2.5 billion acquisition of food processing company Michael Foods, and Tyson Foods Inc's $8.6 billion acquisition of packaged meats producer Hillshire Brands.

The private equity owners of protein and sandwich supplier AdvancePierre Foods are also interviewing banks for a near-term sale of the company, sources told Reuters last week.

Hormel in August acquired Muscle Milk maker CytoSport Holdings Inc, a sports nutrition drink. (Reporting by Olivia Oran in New York; Editing by Christian Plumb)

P.S. I totally agree on TWTR. I joined you in owning some Twitter. Interesting that you mentioned Netflix. Carl Icahn loves big valuations. Twitter needs a push, and Carl love to push. Just maybe he'll bite if his target research team says yes. Carl has a Twitter account and there's been controversy with his personal tweets being used in his trading. These days I think he's still remembering the profit & successes he's already booked on Netflix, Apple, and E-Bay. Also remember, last I heard the Cramer charitable trust owns some twitter. That's a megaphone calling out for our TWTR stakes.

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To: richardred who wrote (3892)5/13/2015 6:44:37 PM
From: The Ox
1 Recommendation   of 7058
Integrated Silicon Solution, Inc. (NASDAQ: ISSI) 6.7% HIGHER; Cypress Semiconductor (NYSE: CY) issued a proposal to acquire 100% of the outstanding shares of common stock of Integrated Silicon Solution, Inc. for $19.75 per share in cash. The board of directors of Cypress has approved this proposal. The proposal is superior to the $19.25 per share sale price ISSI agreed to in the Agreement and Plan of Merger entered into with the "Consortium" on March 12, 2015.

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To: The Ox who wrote (3937)5/14/2015 12:05:19 AM
From: richardred
   of 7058
RE: ISSI sorry to say I sold it, and all my CY to. . It will be interesting to see if there will be a higher offer. 50 cents seems hardly a takeout blow. I do love takeouts because there is an end game.

Message 29034503

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To: richardred who wrote (3936)5/14/2015 5:31:04 PM
From: Paul Senior
   of 7058
TWTR. I have come to the same opinion about TWTR as you two. Joined you today with a small tracking position. Intending to add more if/as stock falls with no adverse news.

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To: richardred who wrote (3936)5/16/2015 8:53:57 AM
From: richardred
   of 7058
RE-TWTR/ICAHN update Take note of his original statement.
>snip “Twitter is great,” Mr. Icahn announced in his first message on Twitter. “I like it almost as much as I like Dell.”

Carl Icahn Invests $100 Million in Lyft


A Lyft car in San Francisco last year. Credit Justin Sullivan/Getty Images

For years, Travis Kalanick, chief executive of Uber, has been the loudest public voice on how ride-hailing start-ups will upend the transportation industry.

Now comes Carl C. Icahn.

Mr. Icahn, one of Wall Street’s most outspoken activist investors and aggressive Twitter users, announced on Friday that he had invested $100 million in Lyft, the fast-growing ride-booking start-up and single largest competitor to Uber in the United States.

Along with an additional $50 million from other investors that Lyft did not disclose, the new investment is an extension of a $530 million round that the start-up raised in March, which values the company at $2.5 billion.

“There’s room for two in this area,” Mr. Icahn said in a phone interview on Friday. “What I’m saying is there is a secular change going on with the way people are getting around, and with urbanization, it means more people living in urban areas.”

John Zimmer, Lyft’s president and co-founder, said the company planned to use the capital to continue growing in the United States, while honing the company’s smartphone app. The company, which is based in San Francisco, has previously hinted at international expansion, though Lyft has not announced any plans to move abroad.


“They reached out to us and I found the opportunity very compelling,” the investor Carl Icahn said of Lyft’s pitch to him. Credit Chad Batka for The New York Times Lyft and Uber have been raising money at a breakneck pace. To date, Uber has raised more than $5 billion, and is currently in discussions to raise another $1.5 billion, a person with knowledge of the talks has said, potentially valuing the company at $50 billion — 20 times that of Lyft’s current valuation.

More surprising is Mr. Icahn’s involvement, which underscores how institutional investors like hedge funds and mutual funds are all looking to invest in privately held tech companies. Mr. Icahn rarely invests in closely held start-ups and will be a strange bedfellow to some of his Lyft co-investors, particularly Marc Andreessen, the co-founder of the venture capital firm Andreessen Horowitz. Mr. Andreessen once called Mr. Icahn an “evil Captain Kirk,” a reference to the “Star Trek” character.

The two seem to have set aside their differences. Speaking about his spat with Mr. Andreessen, Mr. Icahn said, “I never said he wasn’t a smart guy.”

“To hold a grudge on Wall Street you have to be a fool,” he added.

With the Lyft investment, Mr. Icahn has negotiated a board seat for Jonathan Christodoro, a managing director of Mr. Icahn’s hedge fund, Icahn Enterprises. Mr. Christodoro will join Scott Weiss, a partner at Andreessen Horowitz, who also sits on Lyft’s board.

The $100 million investment came about through a connection between Mr. Christodoro and Mr. Zimmer of Lyft, who both did their undergraduate studies at Cornell University. Lyft then called to pitch Mr. Icahn.

“They reached out to us and I found the opportunity very compelling,” Mr. Icahn said in the interview.

Mr. Icahn has long invested in public tech companies, often having contentious relationships with his portfolio companies. Once labeled a corporate raider for his abrasive style, Mr. Icahn typically buys up stakes in public companies and then rattles the board for change, pushing for bigger windfalls for investors and often getting his way. He has hounded Apple to buy back more shares and make use of its cash hoard. In April, after Apple agreed to buy back $30 billion of stock under pressure from Mr. Icahn, his response was that the company could do “a lot more, sooner.”

Last year, Mr. Icahn pushed for a partial spinoff of the electronic payments business PayPal from its parent, eBay, spurring a vitriolic war of words with the company. EBay later decided to split PayPal and its marketplace unit into two different companies. In 2012 and 2013, Mr. Icahn called Netflix shares undervalued and pushed for a sale.

He has also faced off against Edward J. Zander, the former chief executive of Motorola, pushing him to find ways to give more back to shareholders. And Mr. Icahn engaged in a grueling battle with Michael S. Dell to prevent Mr. Dell from taking his computer company private at what was deemed too low a price.

As much an entertainer as a serious investor, Mr. Icahn is well versed in using the media — and more recently, social media — to help prevail in his battles. He was among the first hedge fund managers to use Twitter to make his voice heard.

“Twitter is great,” Mr. Icahn announced in his first message on Twitter. “I like it almost as much as I like Dell.”

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