Notable Mergers and Acquisitions of the Day 9/2: TER/EGLT, SCRX, CHK/BP

September 2, 2008 9:56 AM EDT

StreetInsider.com Notable Mergers and Acquisitions of the Day:

• Teradyne, Inc. (NYSE: TER) signed a definitive agreement to acquire Eagle Test Systems, Inc. (NASDAQ: EGLT) for $15.65 per share in cash.
  
  Shares of Eagle Test Systems closed at $14.18/share on Friday.
  
  Under the terms of the agreement, Eagle Test shareholders will receive $15.65 per share in cash. The aggregate purchase price is expected to be approximately $250 million, net of cash acquired, and includes the fair value of fully vested employee equity instruments. Teradyne has secured a bridge financing commitment in connection with the transaction.
  
  
• Sciele Pharma, Inc. (NASDAQ: SCRX) entered into a definitive agreement to be acquied by Shionogi & Co., Ltd. at a price of $31 per share, for a total equity purchase price of approximately $1.1 billion.
  
  Upon completion of the acquisition, Sciele will become a wholly-owned subsidiary of Shionogi and will continue operations in Atlanta, GA, USA as a standalone business unit. The Board of Directors of Shionogi and Sciele have approved this transaction. This acquisition is subject to clearance under the Hart-Scott-Rodino Antitrust Improvement Act and other customary conditions.
  
  
• Chesapeake Energy (NYSE: CHK) and BP America (NYSE: BP) announced the execution of a Letter of Intent for a joint venture whereby BP will acquire a 25% interest in Chesapeake’s Fayetteville Shale assets in Arkansas for $1.9 billion. The assets have current daily net production of approximately 180 million cubic feet of natural gas equivalent and include approximately 540,000 net acres of leasehold which the companies believe could support the drilling of up to 6,700 future horizontal wells. As a result of the transaction, BP will own approximately 135,000 net acres of this leasehold and Chesapeake will own approximately 405,000 net acres.
  
  BP will pay $1.1 billion in cash at closing and will pay a further $800 million during the remainder of 2008 and in 2009 by funding 100% of Chesapeake’s 75% share of drilling and completion expenditures until the $800 million obligation has been funded. Chesapeake plans to continue acquiring leasehold in the Fayetteville Shale play and BP will have the right to a 25% participation in any such additional leasehold. The transaction is subject to the execution of mutually acceptable definitive documentation that the companies anticipate executing within the next week and closing is anticipated to occur later this month.

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

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