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   Strategies & Market TrendsSpeculating in Takeover Targets


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To: w0z who wrote (3996)9/30/2015 1:23:53 PM
From: richardred
   of 7120
 
Not to much of a premium on this SEMI deal. Montage Technology most recently outbid Diodes for Pericom Semiconductor. Maybe a chance for a higher bid on a rather stingy bid IMO. This based on what EZCH stock traded on in the recent past..

P.S. I haven't looked yet to see if there was a shop around clause in the agreement. Welcome to the SITT board.

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From: richardred10/5/2015 10:26:29 AM
1 Recommendation   of 7120
 
New buy and add today

VECO - CTG

It"s been 2008 since I was last in VECO. Doubled down on CTG

Message 24349219

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From: richardred10/13/2015 9:40:24 AM
   of 7120
 
Worth mentioning two humongous mergers this year, if there both completed. It should help spike the takeover charts this year.

Dell/EMC 67 Billion deal
Ab Inbev/Sab/Miller 104 Billion deal

P.S. Altria will have quite a bit of cash to buy back shares or buy something big.

For some reason thinking they might want to add to their wine business and get back into the beer business. It's a small but a fast growing part of the company. Keeping my eyes on Constellation Brands

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To: richardred who wrote (3999)10/13/2015 7:14:07 PM
From: Ahda
   of 7120
 
There are numerous winery's so beer could be a much better investment.

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To: Ahda who wrote (4000)10/14/2015 9:33:01 AM
From: richardred
   of 7120
 
Constellation Brands-STZ has the best of both worlds.

Message 29722418

RE-Beer consolidation
siliconinvestor.com

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To: richardred who wrote (4001)10/15/2015 9:29:53 AM
From: Ahda
   of 7120
 
There will no stock dilution in this.

Bloomberg OCT 15
Anheuser-Busch InBev NV is planning to sell bonds worth as much as $55 billion to finance its $106 billion takeover of SABMiller Plc, setting a record for debt issuance to fund a corporate acquisition, according to people familiar with the matter.

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To: Ahda who wrote (4002)10/15/2015 11:48:28 AM
From: richardred
   of 7120
 
With such a large amount to finance. It will be interesting to see the interest rate they will be paying and bond rating they receive. This to attract corporate bond buyers.

Related
FWIW-I recently bought back into OLN. Cramer had very negative comments about their bond offering financing the deal. I'm currently not to worried. Just for the fact I'm in it more long term and I know when the housing market recovers so will OLIN. Hedge funds have been increasing their stakes in OLIN. Being I have known the company fairly well since the early 80's. I know the profits CA can bring in. Merger completion snip> Olin now is the largest integrated chlor-alkali producer with top-tier low-cost facilities and has significantly diversified its product and geographic base. IMO the hedge funds meanwhile will push for a Winchester spin-off to make the company a pure play commodity chemicals business.

RE:Cramer can see the other side of the risk coin when he looked at Olin, which is buying Dow Chemical's commodity chemical business. It had to borrow at a rate of 9.75 percent last Friday in order to obtain the money to finance the deal. This interest rate was insanely high, in Cramer's opinion. In fact, it is unrealistic for most companies to pay without risking default. So, in this case, the decline in serial acquirer stocks does make sense to Cramer. "I think if a company's future growth is going to rely on acquisitions and those acquisitions need debt, you have to accept that the window for cheap debt for these kinds of roll-ups is closing," Cramer said.
cnbc.com

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To: richardred who wrote (4003)10/15/2015 11:55:52 AM
From: Ahda
   of 7120
 
I can't comment on OLIN until I look at it thoroughly

Dow could have numerous law suits in their chemical division which could be another reason for the high interest rate.

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To: Ahda who wrote (4004)10/15/2015 12:10:51 PM
From: richardred
   of 7120
 
You could very well be right. I haven't looked into that deeply, but most chemical companies have had past lawsuits on chemical contamination. You might also want to add pension liability in. Olin I know in the past had to set aside reserves for remediation and pension liability. I'm fairly sure Dow has to.

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To: richardred who wrote (4005)10/15/2015 12:51:55 PM
From: Ahda
   of 7120
 
I think after reading about OLN and Dow that I shan't have coffee but beer for breakfast.

I know when the housing market recovers so will OLIN.

Ca water problem we have a huge shortage so desalinization plants we need, Housing we have a shortage of here area that creates overpriced property so here market has recovered but too much so . Perhaps that means interest rates go up and calif could be looking at dry and dead .

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