Notable Mergers and Acquisitions of the Day 11/21: C, IWA, DISK

November 21, 2008 9:35 AM EST

• According to reports from the Wall Street Journal, Citigroup (NYSE: C) is weighing the sale of pieces of the organization or the company as a whole as it deals with a plunging stock price.
  
  Thursday's 26% drop in the stock was the worse ever one-day percentage decline, and now executives believe they need to review a range of possible scenarios. Citigroup's board of directors is scheduled to have a formal meeting Friday to discuss the options.
  
  Citi continues to insist that they have a strong capital and liquidity position, but even insider buying from the CEO Pandit, and yesterday's news that Prince Alwaleed will raise is Citi stake back above 5%, can't stop the stock slide - which is at 50% this week alone.
  
  
• Iowa Telecommunications Services, Inc. (NYSE: IWA) announced today that it has reached an agreement to acquire substantially all of the assets of Sherburne Tele Systems, Inc. for $80.6 million, subject to certain balance sheet and tax adjustments. Sherburne Tele Systems is a closely held telecommunications company serving nine communities adjacent to the Minneapolis/St. Paul Metropolitan Area. Sherburne's operations include its ILEC services, marketed as Connections, Etc., and CLEC services provided through its wholly-owned subsidiary, Northstar Access.
  
  To fund the purchase, the Company has engaged the Rural Telephone Finance Cooperative as the arranger for $75.0 million in Incremental Loans under terms outlined in the existing Credit Agreement. The Rural Telephone Finance Cooperative has provided a commitment to fully fund the Incremental Loans if necessary. The remainder of the purchase price and any adjustments will be funded through the Company's existing $100.0 million Revolving Credit Facility. The sale is expected to close in the first half of 2009.
  
  
• Image Entertainment (NASDAQ: DISK) announced that it has entered into a definitive merger agreement with Nyx Acquisitions, Inc. to sell Image in a transaction valued at approximately $100 million, including the assumption of the company's outstanding debt under its credit facility, replication advance obligation and convertible note.
  
  Under the terms of the merger agreement, Image stockholders will receive $2.75 per share in cash. The agreed-upon acquisition price represents a 299% premium to Image's closing share price of $0.69 on November 20, 2008, and a 267% premium to the 30-day average closing price of $0.75 ended November 20, 2008.

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

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• Citi
• Prince Alwaleed bin Talal
• Notable Mergers and Acquisitions

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