Notable Mergers and Acquisitions of the Day 9/30: AMP/BAC, KFT/CBY, ORCL

September 30, 2009 10:46 AM EDT

• Ameriprise Financial, Inc. (NYSE: AMP) announced a definitive agreement to acquire the long-term asset management business of Columbia Management from Bank of America (NYSE: BAC) for approximately $1 billion in cash. The transaction is expected to be accretive to Ameriprise Financial earnings and return on equity within one year, excluding one-time integration costs.
  
  As of June 30, 2009, Boston-based Columbia managed approximately $93 billion in equity assets and $72 billion in fixed income assets. The cash business managed by Columbia is not included in the transaction.
  
  "We were able to pursue this compelling opportunity in large part because of the strength of the company and our capital position, which we maintained through the very challenging market conditions of 2008 and early 2009, and which we supplemented in June. Importantly, after the transaction closes, our capital position will remain strong, with continued substantial flexibility.
  
  
• Britain's Takeover Panel said U.S.-based Kraft Foods (NYSE: KFT) has until November 9th to say whether it will make an offer Cadbury (NYSE: CBY) or it must walk away for six months.
  
  Cadbury had previously rejected Kraft's original offer of 300 pence in cash and 0.2589 new Kraft Foods shares per Cadbury share.
  
  Cadbury reiterated its rejection of Kraft's approach following the Takeover Panel's announcement.
  
  
• Oracle (Nasdaq: ORCL) has agreed to acquire certain assets of HyperRoll, a leading provider of financial reporting acceleration solutions. The combined solution is expected to further strengthen Oracle Enterprise Performance Management solutions with additional reporting acceleration technology and continues to emphasize Oracle's product strategy to provide best-in-class solutions that help ensure a rapid, reliable and compliant financial close process for customers.
  
  The addition of HyperRoll's assets is expected to improve the ability of customers to rapidly report results with higher confidence and lower compliance costs. Customers across multiple industries including; retail, consumer goods and financial services, currently use HyperRoll's products.
  
  The transaction is subject to customary closing conditions and regulatory approvals and is expected to close later this year.
  
  Financial details of the transaction were not disclosed.

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