Notable Merger and Acquisition of the Day 02/27: [(EP) (MSI) (TBET)]

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Dividend Yield: 0.1%

El Paso Corporation (NYSE: EP) announced that it has entered into a definitive agreement to sell its exploration and production business, EP Energy Corporation, for approximately $7.15 billion to affiliates of Apollo Global Management, LLC and Riverstone Holdings, LLC, who are joined by Access Industries, Inc. and other parties. El Paso’s entering into a definitive agreement for the sale of its exploration and production business was contemplated in Kinder Morgan, Inc.’s (NYSE: KMI) previously announced agreement to acquire El Paso Corporation. The sale of EP Energy is dependent upon completion of the Kinder Morgan-El Paso transaction, which is expected to close in the second quarter of 2012, subject to customary regulatory approvals. The sale of EP Energy is also expected to close about the same time as that transaction.

As announced in October of 2011, El Paso’s net operating loss carryforwards will largely offset taxes associated with the sale of the exploration and production assets, and thus almost the entirety of the proceeds from this sale will be used to substantially reduce the debt borrowed by KMI to fund the cash portion of its purchase of El Paso.
Motorola Solutions, Inc. (NYSE: MSI) announced today that it entered into a Stock Purchase Agreement with Carl Icahn and certain of his affiliates pursuant to which, among other things, the Company has purchased 23,739,362 shares of its common stock at a price of $49.15 per share, for aggregate cash consideration of $1,166,789,642. The Company’s purchase of the Shares was made pursuant to existing authorization under its $3.0 billion stock repurchase program.

As part of the transaction, Vincent J. Intrieri, a director of Icahn Enterprises G.P. Inc. and the general partner of Icahn Enterprises L.P., has agreed to resign from the Company’s board of directors effective as of the settlement of the Company’s purchase of the Shares.
Tibet Pharmaceuticals, Inc. (NASDAQ: TBET), today announced that,

"In recent days, we noticed that a website mentioned about auctioning our operating entity's assets. These were untrue and incorrect announcements. Our company is in normal business operation. We're conducting our investigation on this mistaken report, and will keep our investors informed on the investigation result," said Mr. Hong Yu, CEO and Chairman of Tibet Pharmaceuticals. "The Company will take all necessary legal measures to defend itself against any untrue reports and to protect the interests of shareholders."

The Company also announced its intent to accept a "going private" proposal by Mr. Hong Yu, and cease its public company status. "In view of market bias towards Chinese companies listed in U.S. stock exchange and our past stock performance, I hereby make an offer to purchase TBET stocks not owned by me for $3.00 per share in cash,"said Mr. Hong Yu, "delisting details will be announced shortly".