Notable Mergers and Acquisitions of the Day 10/01: PAG, CSCO, CMCSA

October 1, 2009 11:00 AM EDT

• Penske Automotive Group, Inc. (NYSE: PAG) terminated its discussions with General Motors Company to acquire the Saturn brand.
  
  Related to this news, GM said it would wind down the Saturn brand and dealerships.
  
  Penske cited concerns directly related to the future supply of vehicles beyond the supply period it had negotiated with GM.
  
  Penske said the negotiated terms and conditions with the other manufacturer was rejected by that manufacturer's board of directors. Without that agreement, Penske has determined that the risks and uncertainties related to the availability of future products prohibit the company from moving forward with this transaction.
  
  
• Cisco (NASDAQ: CSCO) announced a definitive agreement for Cisco to launch a recommended voluntary cash offer of approximately $3.0 billion to acquire TANDBERG of Oslo, Norway.
  
  TANDBERG is a global leader in video communications, including a broad range of world-class video endpoint and network infrastructure solutions with intercompany and multi-vendor interoperability. With this proposed acquisition, Cisco will expand its collaboration portfolio to offer more solutions to a greater number of customers, further accelerating market adoption globally.
  
  Under the terms of the agreement, Cisco will commence a cash tender offer to purchase all the outstanding shares of TANDBERG for 153.5 Norwegian Kroner per share for an aggregate purchase price of approximately $3.0 billion. This represents an 11.0% premium to the previous day closing price of TANDBERG's stock, and a 25.2% premium to the 3-month volume weighted average closing price for TANDBERG's stock. The proposal was recommended unanimously by TANDBERG's board of directors.
  
  Cisco expects the acquisition to be accretive to Cisco's non-GAAP earnings in fiscal year 2011.
  
  The acquisition is expected to close during the first half of calendar year 2010; however, the close date is subject to customary closing conditions, including regulatory review in the United States and elsewhere.
  
  
• Comcast (Nasdaq: CMCSA) denied a web report of a $35 billion deal to acquire NBC Universal, a joint venture of General Electric (NYSE: GE) and Vivendi SA.
  
  Late Wednesday, TheWrap.com reported that sources said a deal between the parties had been completed at a price of $35 billion.
  
  While Comcast denied that a deal had been struck, they declined to comment if in fact the company was looking at NBC Universal.
  
  A separate report from Bloomberg said Comcast is in talks with GE to buy a 50% stake in NBC Universal. That deal would be dependent on Vivendi SA making a decision to sell its 20% holding in NBC Universal.
  
  So while a merger of the whole company looks out, something may in fact be up here. Where there's smoke there is often fire.

To see all the Mergers & Acquisitions for today in real-time go to http://www.streetinsider.com/Mergers+and+Acquisitions

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