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   Strategies & Market TrendsSpeculating in Takeover Targets

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To: richardred who wrote (3938)6/22/2015 9:45:15 AM
From: richardred
   of 6850
RE-ISSI The takeover battle for Integrated Silicon Solution started at 19.25. Each competing bid IMO is going up in non takeout blow bids. The risk arbs must be liking this one. Up some 20% from the initial bid and it's not over yet.

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To: richardred who wrote (3949)6/22/2015 9:58:57 AM
From: richardred
   of 6850
A merger Monday. 95 billion of deals on the table this morning. Cigna & Williams Partners both rejecting offers.

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To: richardred who wrote (3972)6/26/2015 8:46:31 AM
From: richardred
   of 6850
A good time to put the company on the block?

Tredegar Corporation Announces Change in Leadership

Tredegar Corporation 10 minutes ago


Today the board of directors of Tredegar Corporation ( TG) announced that effective immediately, Nancy M. Taylor, president and CEO, and Kevin A. O’Leary, vice president, CFO and treasurer, have stepped down from their respective positions. Taylor also resigned her position on the board of directors.

“For the past 23 years, Nancy has provided invaluable leadership in a wide variety of positions at Tredegar,” said William M. Gottwald, chairman of the board, Tredegar Corporation. “We are extremely grateful for her tireless efforts, especially the dedication she has shown which has enabled us to grow the company and build on our strengths.”

The board also expressed its gratitude to O’Leary. “Today Tredegar continues to be in a strong financial position due in no small part to Kevin’s leadership,” said Gottwald. “We want to express our sincere gratitude for his service to this company and we wish him well in the future.”

The company announced that board member John D. Gottwald, who served for seventeen years as Tredegar’s president and CEO, will assume the duties of president and CEO on an interim basis until the Board completes a search for a new leader. D. Andrew Edwards, formerly vice president, CFO and treasurer of Tredegar Corporation from 2003 to 2009, will return to the company to serve as vice president, CFO and treasurer, effective the end of July.

“John was a natural choice by the board to serve as interim president and CEO given his long history with the company and his understanding of the needs of our customers,” said Gottwald. “We also are grateful that Drew has agreed to return to Tredegar and appreciate the proven track record of success he brings to our executive team. The focus of the leadership team will be to execute on the global investments we’ve made over the past several years to drive customer and shareholder value.”

Tredegar Corp.
NYSEThu, Jun 25, 2015 4:02 PM EDT

About Tredegar Corporation

Tredegar Corporation is a manufacturer of plastic films and aluminum extrusions. A global company headquartered in Richmond, Virginia, Tredegar had 2014 sales of $952 million. With approximately 2,700 employees, the company operates manufacturing facilities in North America, South America, Europe, and Asia.

Safe Harbor Statement

Some of the statements made in this press release are forward-looking statements that involve a number of risks and uncertainties and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based upon Tredegar’s current expectations and projections about future events and generally relate to Tredegar’s plans, objectives and expectations for the development of its business. Although management believes that the plans and objectives reflected in or suggested by these forward-looking statements are reasonable, all forward-looking statements involve risks and uncertainties and actual future results may be materially different from the plans, objectives and expectations expressed in this press release. For a discussion of the risks and uncertainties, and other important factors, any of which could cause Tredegar’s actual results to differ from those contained in the forward-looking statements, see the section entitled “Risk Factors” in Tredegar’s Annual Report on Form 10-K for the year ended December 31, 2014, as well as discussions of potential risks, uncertainties, and other important factors in Tredegar’s subsequent filings with the Securities and Exchange Commission. All information in this press release is as of the date of the release, and Tredegar undertakes no duty to update this information unless required by law.

View source version on

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From: richardred7/1/2015 8:28:55 AM
1 Recommendation   of 6850
The urge to merge continues.

Insurer ACE buys Chubb for $28.3 billion to diversify portfolio

<span class="articleLocation">Property and casualty insurer ACE Ltd ( ACE.N) said it would buy smaller rival Chubb Corp ( CB.N) for $28.3 billion to diversify its portfolio and reduce exposure to rock-bottom catastrophe insurance rates

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To: richardred who wrote (3970)7/9/2015 11:56:42 PM
From: richardred
   of 6850
Back from Hershey Park vacation.

First Eagle Investment Ups Stake in Teradata Corp

By 3 hours ago

First Eagle Investment ( Trades, Portfolio) increased its stake in Teradata Corp (TDC) by more than 17% on June 30, according to data reported by GuruFocus Real Time Picks.

The fund purchased 2,290,232 shares for $37.00 per share, bringing to the total holding to 15,294,583 shares. The graph below First Eagle's holding history.

Teradata provides analytic data platforms, marketing and analytic applications, and consulting services. The stock price declined 13% over the past year, closing at $35.41 on July 8. The current P/E ratio is 16.9 and the P/S ratio is 2.06.

The company's business predictability is rated 4.5 out of 5 stars based on consistent growth. Indeed, over the past five years, revenue grew by 12.2%, and EBTIDA grew 13.4%. In 2014, EBITDA per share was $4.26, up from $4.08 the year before.

In Q1 2015, Teradata reported net income of $22 million, which was down from $59 million in the year-ago quarter. According to the earnings press release, the company lost $22 million due to stock-based compensation expenses and other special items. Teradata also expects that EPS for the full year will be toward the low end of the $1.97 - $2.17 guidance range.

Free cash flow has been improving steadily, increasing by about 10% over the past five years. In 2014, free cash flow was $551 million, up from $372 million the year before.

The DCF calculator estimates a fair value of $35.39, indicating Teradata is fairly valued at the current price.

Joel Greenblatt (Trades, Portfolio), Caxton Associates (Trades, Portfolio), and Robert Olstein (Trades, Portfolio) also added to their positions in Teradata during the first quarter.

Noted value investor Jean-Marie Eveillard is the former portfolio manager for the First Eagle Global Fund, which is now led by Matthew McLennan and Kimball Brooker Jr. Over the past 10 years, the fund had an annualized return of 9.2%, compared to 6.87% for the MSCI World Index.

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From: richardred7/10/2015 8:25:09 AM
   of 6850
Walgreens CEO Pessina Signals He’s Looking for Merger Targets

by Ryan Sachetta

July 9, 2015 — 5:45 PM EDT

Stefano Pessina, named permanent chief executive officer of Walgreens Boots Alliance Inc. on Thursday, wasted no time in signaling that he wants the largest U.S. drugstore chain to grow through acquisitions.

“I believe that the American market will go through a substantial wave of consolidation, horizontally and vertically,” Pessina said on a conference call to discuss the company’s latest quarterly earnings. While he wouldn’t identify potential targets, he said Walgreens wants “to be part of this at the right time with the right partner.”

The Deerfield, Illinois-based company could choose from U.S. and international options, including the acquisition of a pharmacy benefits manager, a drug distributor or pharmacies that operate within grocery chains, analysts said.

If Walgreens were to target a pharmacy benefits manager, Express Scripts Holding Co. or UnitedHealth Group’s OptumRx would be the “obvious choices,” according to Jon Wolfenbarger at Allianz Global Investors US. “The biggest idea seems like a PBM like Express Scripts, but it’s unlikely happening any time soon,” he said.

Walgreens also might consider buying pharmacies at regional grocery chains, Wolfenbarger said. These include Albertsons Cos., which operates Albertsons, Safeway, Vons, Jewel-Osco and other stores in 33 states and is preparing for an initial public offering. Other possible targets are Publix Super Markets Inc. and HEB Grocery Co., he said.

While Pessina told investors on a previous call that he was interested in acquisitions to deliver medicine more efficiently to patients, his comments Thursday on “horizontal” mergers implied he’d also be interested in other drugstore chains.

Drug DistributionWalgreens already has a foothold in the drug-distribution business after it signed a 10-year agreement with Amerisource Bergen Corp. in 2013 and became the company’s third-largest shareholder. When Pessina was asked on Thursday’s conference call if Walgreens wanted to increase its stake in Amerisource, he said “we did the deal of course to improve our profit but also for a strategical reason.”

The U.S. drugstore market is already in the midst of major consolidation. Last month, CVS Health Corp. agreed to pay $1.9 billion for Target Corp.’s in-store pharmacies and clinics with more than 1,660 locations. In February, Rite Aid Corp. struck a deal to buy Envision Pharmaceutical Services Inc. for about $2 billion, giving it a pharmacy benefits manager, a business where Walgreens is absent.

Today’s Walgreens is itself the product of an acquisition. Pessina built Bern, Switzerland-based Alliance Boots GmbH through more than three decades of mergers before selling it to Walgreen Co. last year. He’s now the company’s largest shareholder with a 13 percent stake.

Cosmetics DealOn the same day Walgreens reported third-quarter earnings that topped analysts’ estimates, the company also announced its own vertical acquisition, the $215 million purchase of Avon Products Inc.’s Liz Earle line of U.K. skin-care products. The botanic brand will be marketed alongside other Walgreens beauty products, including the in-house Boots No7 brand. It’s unlikely to be Pessina’s last deal.

“What we know about them is that they are very shrewd business operators and negotiators, and their acquisitions have shown to be accretive in the past,” said Tony Scherrer, director of research at Seattle-based Smead Capital Management, which oversees $1.5 billion including Walgreens stock

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To: richardred who wrote (3980)7/13/2015 10:02:10 AM
From: richardred
   of 6850

Short Sellers Not Buying Into eBay & TwitterShort interest in this micro-blogging service provider retreated more than 9 percent during the period. The around 20.80 million shares short at month's end, the smallest number of shares short so far this year, was more than 4 percent of the float. It would take about a day to cover all short positions. Speculation about a potential buyout of Twitter continued during the period. The company has a market cap of around $23 billion. Note that the return on equity and the operating margin both remain in negative territory, but the long-term EPS growth forecast is about 69 percent.

Of the 39 analysts polled, 15 recommend buying Twitter shares, while only one rates the stock at Underperform. The analysts' mean price target is about 24 percent higher than the current share price. Note though that shares traded higher than that target before the sell-off in April.

Twitter's share price ended the two-week period more than 4 percent higher, though it has pulled back since. It is now down more than 2 percent year-to-date. Over the past six months, the stock has underperformed the likes of Facebook, Google and LinkedIn, as well as the broader markets.

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From: The Ox7/13/2015 4:54:20 PM
1 Recommendation   of 6850
<span class="articleLocation">Auto parts maker BorgWarner Inc BWA.N agreed to buy Remy International Inc REMY.O, a maker of electric and hybrid motors, for about $950 million to better compete in the fast-growing market for electric and hybrid vehicles.

BorgWarner's offer of $29.50 per share represents a premium of 44 percent to Remy's closing price of $20.53 on Friday. Remy's shares were trading at $29.15 before the opening bell.

BorgWarner's shares were up 0.7 percent at $54.01.

BorgWarner is one of the biggest suppliers of turbocharging technology, increasingly used by automakers to boost fuel economy and meet stricter gas mileage and emission requirements.

"The hybrid motor portfolio (Remy has the largest hybrid motor production and testing facility in North America) should help BorgWarner benefit from the progression of hybrid technology," RBC Capital Markets LLC analyst Joseph Spak wrote in a client note on Monday.

The deal, which is expected to close in the fourth quarter, has an enterprise value of $1.2 billion, BorgWarner said.

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To: richardred who wrote (3676)7/14/2015 8:57:11 AM
From: richardred
   of 6850
China's Tsinghua Unigroup plans $23B bid for Micron Technology

China's state-owned Tsinghua Unigroup plans to submit an offer to buy U.S. chipmaker Micron Technology for $21 a share or $23 billion, according to Dow Jones.

If the deal goes through, it would be the biggest Chinese takeover of a U.S. company, dwarfing the $7 billion takeover of Smithfield Foods by Shuanghui International in May 2013.

Dow Jones, which initially said on Tuesday that the bid had been made, later reported Tsinghua had prepared an offer that, at $21 per share, represented a 19.3 percent premium to the Micron's close on Monday.

A Micron spokesman told Reuters that the Idaho-based firm had not received a takeover offer from Tsinghua. Meanwhile, Bloomberg reported an interview with Tsinghua chairman Zhao Weiguo, in which he said the Chinese company was "very interested in cooperation" with Micron.

Micron shares have performed poorly this year, down almost 50 percent since January 1, on concerns around demand for dynamic random access memory (DRAM) chips amid a slowdown in the PC market. The Idaho-based firm is the last remaining U.S. producer of DRAMs, Dow Jones said.

Beijing-based Tsinghua, the country's largest government-owned chip design company, has been on the hunt for opportunities in the U.S. technology sector. In May, the company purchased a $2.3 billion majority stake in Hewlett Packard's Chinese server, storage and technology unit.

Tsinghua's potential purchase of Micron is regarded as a strategic move to help the advancement of China's own chip sector. The country currently has no major home-grown memory makers, according to Reuters.

Song Myung-sup, an analyst at HI Investment and Securities, told the newswire: "China's aggressive investment can expand the rival company Micro's capex, if the deal is reached."

The prospect of a resurgent Micron caused shares in South Korean chipmaker SK Hynix to fall by almost 6 percent in response.

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To: richardred who wrote (3982)7/16/2015 4:04:55 AM
From: The Ox
1 Recommendation   of 6850

Health Care Law Spurs Merger Talks for Insurers
JUNE 22, 2015

President Obama signed the Affordable Care Act more than five years ago. At the time, members of the health care industry — hospitals, doctors and insurers — were anxious about what it would do to the business. Everyone had an opinion, but nobody knew for sure.

We’re now beginning to see the answer: consolidation on a huge scale.

Just in the last couple of weeks, the nation’s five largest health insurers began a round robin of merger talks — some still semiprivate, others now out in the open — that could whittle their number to three. Anthem made a bid for Cigna; Aetna approached Humana; and the UnitedHealth Group made overtures to Aetna.

Those potential deals come on the heels of a spate of hospital mergers over the last couple of years — and speculation about another round of such deals.

All of this deal-making is largely the result of the Affordable Care Act, which in effect constrains the amount of profit hospitals and insurers can generate, leading both to seek additional scale in hopes of generating higher margins by squeezing additional savings out of a broader customer base.

To some degree, consolidation among hospitals and insurers was part of the design of the law, which sought to provide health care for the uninsured and help push down health care costs. That led health care companies to find efficiencies. That, in turn, meant deals.

In 2011, the Aetna chief executive, Mark T. Bertolini, responded matter-of-factly to an analyst’s question about possible mergers: “I expect and we expect that consolidation will continue going forward here as health reform shakes out winners and losers in the process.”

The question, of course, remains whether the savings that might come from consolidation will trickle down to the consumer or will simply wind up in the pocket of shareholders.

The prevailing view is not promising.

“Seldom does consolidation result in reduced costs for consumers. Bigger insurance companies mean increased leverage and unfair power over negotiating rates with hospitals and physicians,” the American Academy of Family Physicians wrote in a letter earlier this month to the Federal Trade Commission, urging that it block the latest series of deals. “More often than not, consolidation increases costs and reduces options for consumers, and we believe this would hold true in the health insurance market.”

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