Notable Mergers and Acquisitions of the Day 08/30: SNY/GENZ, COGT/MMM, INTC/IFNNY
- Sanofi-aventis (NYSE: SNY) went public with its $18.5 billion cash takeover offer for Genzyme (Nasdaq: GENZ) on Sunday, valuing shares at $69 each.
Shares of Genzyme closed at $67.62 on Friday as Sanofi's takeover approach was widely known by the market since reports first surfaced on July 23, 2010.
While Genzyme will unlikely agree to the offer, Sanofi notes that it represents a 31% over the one-month historical average share price through July 22, 2010, the day prior to reports of the takeover offer. In addition the offer represents a multiple of 36 times Genzyme's 2010 consensus EPS and 20 times the 2011 consensus EPS.
Sanofi-aventis made the non-binding offer on July 29, 2010 and reiterated the offer Sunday, after several unsuccessful attempts to engage Genzyme's management in talks.
A copy of Sanofi's letter can be found here.
Additionally, GENZ thinks that the offer 'dramatically undervalues' the company.
- Cogent Inc. (Nasdaq: COGT) said Monday that it has agreed to be acquired by diversified manufacturer 3M Co. (NYSE: MMM) in a deal worth more than $900 million.
According to the terms of the deal, 3M will pay $10.50 per share for Cogent, representing an 18 percent premium over the stock's closing price of $8.915 on Friday.
3M said that it expects the deal to be dilutive to earnings by 9 cents to 10 cents per share during the first year following the acquisition, while excluding purchase accounting adjustments the deal should add 1 cent to 2 cents per share.
"Cogent Systems has done a tremendous job establishing a strong presence in the biometric industry," said Mike Delkoski, vice president and general manager, 3M Security Systems Division. "Adding Cogent Systems’ products to our business strengthens our product portfolio and services in high security credential issuance and authentication systems and positions 3M’s business in law enforcement applications."
3M said that the deal will expand its reach into access control and other authentication applications. Cogent makes automated fingerprint and palmprint ID systems.
“3M can accelerate our growth and extend our reach in global border control markets, law enforcement and commercial applications,” said Ming Hsieh, Cogent Systems’ founder and CEO. “Together, we’ll deliver a broader range of identification and authentication solutions to the security industry and to our customers."
3M has said that it could spend about $2 billion on acquisitions in 2010, doubling its previous estimate for the year.
Shares of 3M are down 20 cents to $80.80 in premarket trade Monday, while shares of Cogent are up 20.70 percent to $10.76.
- Intel Corp. (Nasdaq: INTC) said Monday that it has agreed to acquire the wireless business of Infineon Technologies AG (OTCBB: IFNNY) for $1.4 billion in cash, as Intel looks to strengthen its position in the wireless connectivity market and Infineon turns its focus to its core business.
The acquisition from Intel comes just after its sales warning on Friday. Intel said it now sees revenues of $11 billion, plus or minus about $200 million. Previous expectations called for revs between $11.2 - $12.0 billion. The company notes that revenue is being affected by weaker than expected demand for consumer PCs in mature markets.
German chipmaker Infineon's wireless solutions, or WLS, will operate under Intel as a standalone business, while the technology will be used in laptops that utilized the Intel Core processor as well as other devices including smartphones, netbooks and tablet computers.
The deal is expected to close in the first quarter of 2011 and the announcement followed an August 2 statement by Infineon that it was negotiating with interested parties about the business.
"The global demand for wireless solutions continues to grow at an extraordinary rate," said Paul Otellini, Intel president and CEO. "As more devices compute and connect to the Internet, we are committed to positioning Intel to take advantage of the growth potential in every computing segment, from laptops to handhelds and beyond."
The WLS unit of Infineon saw revenue of euro917 million in the last financial year ended last September, accounting for roughly 30 percent of the company's total revenue.
"This creates a great perspective for all Infineon customers, employees and shareholders," said Peter Bauer, CEO of Infineon. "We all stand to benefit enormously from this deal. Thanks to the outstanding effort of the employees and the management during the last years, WLS is excellently positioned to grow further with the new owner who is ideally suited for this business."
Shares of Intel are trading flat in premarket movement Monday at $18.37.
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