Notable Mergers and Acquisitions of the Day 12/04: PRU/WFC, COF, ITWO/JDAS
- Prudential Financial (NYSE: PRU) to sell Wachovia (NYSE: WB) securities stake to Wells Fargo (NYSE: WFC)
- Capital One Financial Corporation (NYSE: COF) and Chevy Chase Bank today announced a definitive agreement under which Capital One will acquire Chevy Chase in a cash and stock transaction valued at approximately $520 million.
The purchase will add $11 billion in deposits to Capital One.
Under the agreement, Capital One will purchase Chevy Chase for $445 million in cash and 2.56 million Capital One shares, valued at $75 million, based on the closing price of Capital One stock as of December 2, 2008.
Capital One expects this transaction will be accretive to operating EPS in 2009 and accretive to GAAP EPS in 2010. Capital One will take a net credit mark of $1.75 billion for potential losses in Chevy Chase's loan portfolio.
- i2 Technologies, Inc. (NASDAQ: ITWO) has terminated its Agreement and Plan of Merger with JDA Software Group, Inc. (NASDAQ: JDAS).
i2 expects to receive the non-refundable termination fee of $20 million from JDA within three business days.
- A group consisting of portfolio managers, the management team and senior professionals agreed to acquire a majority interest in Neuberger Berman, the investment management unit of now bankruptcy Lehman Brothers.
As part of the transaction, a new, independent investment management company to be called Neuberger Investment Management will be created comprising businesses that managed approximately $160 billion of assets as of November 30, 2008. Management will control 51% of the new company with Lehman Brothers Holdings Inc. retaining a 49% stake.
The Management bid was selected as the winner in a Bankruptcy Court auction held today, topping a previous bid from the private equity firms of Bain Capital and Hellman & Friedman that was announced in September and was used to start the auction process.
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