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   Strategies & Market TrendsSpeculating in Takeover Targets


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From: richardred10/21/2015 8:18:43 AM
   of 6515
 
Two big mega mergers in high tech. SanDisk & KLA
M&A in semiconductors last year: $38b M&A in semiconductors this year: $130b
Carl Quintanilla Verified account ?@carlquintanilla 28m28 minutes ago

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To: richardred who wrote (4012)10/21/2015 9:18:01 AM
From: richardred
1 Recommendation   of 6515
 
The Applied Materials merger with Tokyo Electron was called off.{Regulatory Concerns) I think Applied will be prime to be the next hunter. To avoid regulatory concerns. They just might be looking for smaller sized niche player to fill a gap or extend a product line. This industry has stagnated, but has many industry wide clean balance sheets. IMO the domino effect in the semi & suppliers to the high tech industry will continue. One also has to wonder if the Department of Justice wouldn't allow the AMAT merger to go through. Will they allow the Lam/KLA? IMO If they don't, expect more hunters of smaller players

P.S. Still holding BRKS & VECO

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To: richardred who wrote (3992)10/22/2015 10:15:53 AM
From: richardred
   of 6515
 
Sold position in OLN- OLIN today. Quick ST gain on a weighted position. I'll look for a re-entry at a possible opportune time.

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To: richardred who wrote (3763)10/22/2015 1:47:28 PM
From: richardred
1 Recommendation   of 6515
 
sold my Alliance Data stock today. Acquired by way of stock in exchange for Conversant/Value Click shares.

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To: richardred who wrote (3865)10/23/2015 10:00:01 AM
From: richardred
   of 6515
 
Diamond Foods (DMND) Stock Soaring on Kellogg Merger Speculationhttp://www.thestreet.com/story/13336140/1/diamond-foods-dmnd-stock-soaring-on-kellogg-merger-speculation.html?puc=yahoo&cm_ven=YAHOO
Possible bringing Pringles and Kettle chips together. LNCE's Cape Cod Has a great Kettle chip brand. Lance's Cape Cod also sells pop corn.

More speculative appeal on my thread tracking SITT pick LNCE IMO
If K bites than GIS or HSY should be ready to follow.

Message 29839778
Message 27983037
Message 29439856

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From: The Ox10/23/2015 11:40:03 AM
   of 6515
 
Pretty amazing movement in the memory/storage area with SNDK, STX, WDC and Samsung synchronizing!

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To: The Ox who wrote (4017)10/23/2015 12:09:31 PM
From: richardred
   of 6515
 
$30 Billion in Tech Mergers Reflect Industry Pressures.Irvine-based Western Digital has acquired SanDisk in a move toward developing flash memory and taking the focus off personal computers. by Pete Carey, San Jose Mercury News / October 22, 2015 0
Silicon Valley Flickr/Nouhailler

(TNS) -- Two Silicon Valley semiconductor companies agreed to be acquired Wednesday in mergers that totaled nearly $30 billion.

SanDisk, a Milpitas flash memory maker, said it is selling itself to Irvine-based Western Digital for $19 billion.

And Milpitas-based KLA-Tencor, which makes semiconductor process equipment, said it is being acquired by Lam Research of Fremont, another semiconductor equipment maker, for $10.6 billion.



The deals reflect pressures in the industry from various trends, ranging from the demands Moore's Law is placing on chipmakers to slowing sales of personal computers and a shift away from traditional storage devices to flash memory.

Western Digital makes hard drives and is facing a shift to flash memory in smartphones and data center storage, which SanDisk makes.

"The combined company will be ideally positioned to capture the growth opportunities created by the rapidly evolving storage industry," Steve Milligan, chief executive of Western Digital, said in a prepared release.

SanDisk, which employs 8,700 people, has also been wooing large corporations -- the customers that Western Digital already sells to, said Tim Arcuri, semiconductor analyst with Cowen & Co.

Another trend was apparent in the deal for SanDisk -- China's drive to build a domestic chip industry. The deal gives Western Digital access to SanDisk's technology for making flash memory chips, something one of Western Digital's newest major shareholders could use.

Unisplendour, a subsidiary of China's Tsinghua University, which is at the forefront of China's drive to develop a domestic chip industry, in September bought 15 percent of Western Digital's shares at a 30 percent premium for $3.8 billion and took a seat on its board.

"What China desperately wants is memory technology. They can't close this massive trade imbalance they have in semiconductors without memory," Arcuri said.

Unisplendour acquired a 51 percent stake in Hewlett-Packard's Chinese server unit for $2.3 billion in May.

Wednesday, SanDisk reported financial results that topped Wall Street's expectations.

The offer from Western Digital values SanDisk at $86.50 a share. That's 15 percent higher than the Tuesday closing price for SanDisk of $75.19.

Lam Research's acquisition of KLA-Tencor is a consolidation of two companies that make equipment manufacturers use to make semiconductors.

Customers of KLA, with about 6,000 employees, and Lam, which employs 7,300, have been urging the two companies to get together, Acuri said.

"A good merger is one that solves problems for the customers, and that's what this does," he said.

Although both companies sell chipmaking equipment to the same customers in the semiconductor industry, there is not a lot over overlap in what they make, said Mahesh Sanganeria, an analyst with RBC Captial Markets.

Lam makes equipment that imprints semiconductors onto silicon, while KLA designs and sells equipment that looks for defects in finished wafers.

"It's a pretty good fit," Sanganeria said.

In a nod to the difficulties of keeping up with Moore's Law as dimensions of the elements on chips grow ever tinier, Lam Research's president and CEO, Martin Anstice, said the combined companies will be better positioned "to meet the market demands of lower power, higher performance, and smaller form factors."

Rick Wallace, president and CEO of KLA-Tencor, said the deal "represents a great outcome for all of KLA-Tencor's key stakeholders." He added that shareholders "will receive compelling upfront value, in addition to the opportunity to own a meaningful stake in an industry leader and participate in the upside potential created by the combination."

The deal is expected to produce about $250 million annual savings over the next two years, increasing to $600 million by 2020.

KLA-Tencor's shareholders will receive $5 billion in cash and $5.6 billion in shares of Lam Research, and are expected to own about 32 percent of the combined company. The deal is expected to close in 2016.

govtech.com

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To: richardred who wrote (4018)10/23/2015 12:11:43 PM
From: The Ox
   of 6515
 
Seagate Announces Decision From MOFCOM Allowing Integration of Samsung HDD Business to Proceed Without Restrictions
finance.yahoo.com

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To: The Ox who wrote (4019)10/23/2015 12:15:29 PM
From: richardred
   of 6515
 
RE- Micron Technology
I 'm wondering if this will come back to the limelight.
Message 30147523

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To: richardred who wrote (4020)10/23/2015 12:41:54 PM
From: The Ox
1 Recommendation   of 6515
 
I've been wondering the same but I get the feeling that US regulators will frown on a Chinese company buying MU, in the same fashion they nixed the AMAT/Tokyo Electron merger.

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