Notable Mergers and Acquisitions of the Day 11/07: MSFT/YHOO, FNF/LFG, DMC

November 7, 2008 9:55 AM EST

• Microsoft's (Nasdaq: MSFT) CEO Steve Ballmer said his company may partner with Yahoo! (Nasdaq: YHOO) in the future but isn't planing to make another takeover bid.
  
  Speaking at a conference in Sydney, Ballmer said, "We've moved on."
  
  In February, Yahoo rejected Microsoft's $31 per share bid, which was then pulled by Microsoft. Shares of Yahoo! have since crashed, currently trading at $14, which has some speculating Microsoft can swoop in and get Yahoo 'on the cheap'. This week, Google ended their advertising agreement with Yahoo due to pressure from government regulators and some advertisers. This has re-ignited the MSFT/YHOO speculation.
  
  
• Fidelity National Financial (NYSE: FNF) and LandAmerica Financial Group (NYSE: LFG) announced the signing of a definitive merger agreement under which FNF will acquire LFG. Under the terms of the merger agreement, LFG shareholders will receive 0.993 shares of FNF common stock for each share of LFG common stock.
  
  The transaction has been structured to reduce the combined debt of LFG and FNF by approximately $250 million prior to the closing of the merger agreement. This will be accomplished by FNF's title insurance subsidiaries providing liquidity equal to the statutory book value of LFG's two primary title insurance subsidiaries, Commonwealth Land Title Insurance Company and Lawyers Title Insurance Corporation, immediately prior to the closing of the merger agreement. These proceeds will be used to repay outstanding indebtedness under LFG's revolving credit facility and private placement senior notes and, potentially, existing FNF debt. As a result, FNF anticipates no material change from its current debt to total capitalization ratio of approximately 30%.
  
  
• Document Security Systems, Inc., (NYSE: DMC) has entered into a definitive agreement to acquire substantially all of the assets of DPI of Rochester, LLC subject to court approval in DPI's pending Chapter 11 bankruptcy case. DPI is a full service digital and commercial offset printer located in Rochester, NY with approximately $7.6 million in annual sales in 2007.

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