M&A Boosts RIG, GSF and GLYT to New 52-Week Highs

November 26, 2007 12:30 PM EST

A merger between Transocean Inc. (NYSE: RIG) and GlobalSantaFe Corp. (NYSE: GSF) that was first discussed on July 23 of this year, may finally be approved for completion this week.

The United Kingdom's Office of Fair Trading (UK OFT) today announced it would clear the merger between the two oil drillers if both companies provided satisfactory undertakings that addressed customer concerns about combining the two fleets of drilling rigs.

Apparently, customers are concerned that Transocean's share of the UK continental shelf, which is presently about 45% of all rigs, will grow to a monopolistic level if the merger goes through.

Shares of Transocean and GlobalSanteFe have jumped today, both rising more than 3% on the news. Transocean and GlobalSanteFe stock have also both reached new 52-week highs at $131.51 and $89.30, respectively.

Also on the M&A front, Genlyte Group (Nasdaq: GLYT) today announced it has entered into a definitive agreement to be acquired by Royal Philips Electronics (NYSE: PHG) for $2.7 billion.

Philips, the worlds largest manufacturer of light bulbs, said it would pay $95.50 per share in cash, a 52% preminum from Genlyte's closing price of $62.67 on last Friday. Shares of Genlyte have surged today, moving up 50% to nearly match the buyout offer and marking a new 52-week high at $94.64.

If the acquisition receives regulatory approval, it will make Philips the largest lighting company in North America.

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