Notable Mergers and Acquisitions of the Day 11/2: CF/TRA, DNR/EAC, AMZN, CMCSA/GE, USB, LPS

November 2, 2009 10:13 AM EST
  • Late Sunday, CF Industries Holdings, Inc. (NYSE: CF) offered to acquire Terra Industries Inc. (NYSE: TRA) for $32.00 in cash and 0.1034 of a share of CF Industries common stock for each Terra share.

    The offer has a value of $40.61 per share, based on Friday's closing price for CF Industries common stock. The offer, which is equivalent to a multiple of 7.1 times trailing 12-months EBITDA, represents a premium of 28% to Terra's closing price on Friday.

    CF said Morgan Stanley has committed $2.5 billion to provide the funds required for the transaction.

    Terra said they would review the new offer.

  • On Sunday, Denbury Resources Inc. (NYSE: DNR) announced plans to acquire Encore Acquisition Company (NYSE: EAC) in a transaction valued at approximately $4.5 billion, including the assumption of debt and the value of the minority interest in Encore Energy Partners LP (NYSE: ENP).

    Encore stockholders will receive $50.00 per share for each share of Encore common stock, comprised of $15.00 in cash and $35.00 in Denbury common stock subject to both an election feature and a collar mechanism on the stock portion of the consideration.

    Shares of Encore Acquisition Company closed at $37.07 on Friday.

    The transaction positions the Company as one of the largest crude oil-focused, independent North American exploration and production companies. The acquisition will also create one of the largest CO2 enhanced oil recovery platforms diversified across the Gulf Coast and Rocky Mountain regions, complemented by ownership and control of the Jackson Dome CO2 source in Mississippi and CO2 sequestration contracts secured with anthropogenic sources in the Gulf Coast, Midwest and Rockies.

  • Amazon.com, Inc. (NASDAQ: AMZN) today announced the completion of its acquisition of Zappos.com. Zappos.com, Inc. is a leader in online apparel and footwear sales that strives to provide shoppers with the best possible service and selection. The acquisition brings together two companies who share a passion for serving customers and whose customers benefit from cultures of innovation and long term thinking. Amazon.com previously announced that it had reached an agreement to acquire Zappos.com on July 22, 2009.

    The Zappos management team will remain intact, and Zappos will operate its successful brand and unique culture of service independently with headquarters in Las Vegas, NV.

    Financial terms of the deal were not disclosed

  • According to reports from the New York Times, Comcast (Nasdaq: CMCSA) is near a deal to gain control of NBC Universal from General Electric (NYSE: GE) and a formal announcement could be made this week.

    According to the paper, after a series of meetings last week, the two companies reached a tentative agreement on Friday over the main points of a deal. In the deal, Comcast would own about 51 percent of NBC Universal. GE, which owns 80 percent of NBC Universal, would retain 49 percent. Talks with Vivendi, which owns the other 20 percent of NBC Universal, are continuing.

  • U.S. Bancorp (NYSE: USB) announced today that, effective immediately, its lead bank, U.S. Bank National Association, has acquired the banking subsidiaries of FBOP Corporation of Oak Park, Illinois, from the Federal Deposit Insurance Corporation. This transaction includes nine different banks with more than $18 billion in total assets and 150 branches in California, Illinois, Arizona and Texas. The nine banks that are part of this acquisition are: BankUSA, N.A.; California National Bank; Citizens National Bank; Madisonville State Bank; North Houston Bank; Pacific National Bank; Park National Bank; San Diego National Bank; and Community Bank of Lemont.

    Under the terms of these transactions, U.S. Bank will receive approximately $18.4 billion of assets and assume approximately $18.3 billion of liabilities, including $15.4 billion of both insured and uninsured deposits, of the nine different banks that are part of FBOP.

    In addition, substantially all loans are subject to a loss sharing agreement with the FDIC. U.S. Bank will not acquire any additional assets or liabilities of the banks' parent holding company, FBOP Corporation.

    As part of these transactions, U.S. Bank will implement either the FDIC's or other approved mortgage loan modification programs on certain residential mortgages assumed under the loss share agreement.

  • Lender Processing Services, Inc. (NYSE: LPS) today announced its acquisition of Rising Tide Auctions, which is known for its market-leading property auction expertise and innovative property auction strategy. The acquisition will expand the asset management offerings of LPS and allow the company to provide comprehensive property auction solutions to help servicers minimize REO timelines and reduce costs. Furthermore, real estate buyers and investors will be provided with the ability to purchase individual or multiple bank-owned properties directly from the nation's leading REO disposition service provider.

    Mortgage servicers have long relied on a wide range of default-related solutions from LPS, including national field services, full-service asset management, title and closing services, as well as bankruptcy and foreclosure management. With the addition of property auction services through LPS, servicers now have more REO management options from a single provider.

    Additionally, servicers working with LPS Auction Solutions will benefit from the company's ability to manage all aspects of the auction process from beginning to end, including data collection, property due diligence, open house showings and the auction event. To help ensure timely REO dispositions, the company also utilizes a comprehensive broker outreach program to encourage broker participation in the auction events.

    LPS Auction Solutions' technology and reporting capabilities play a critical role in driving efficiency throughout the auction process and in keeping participants well informed. Web-based technology is used to communicate property details to potential buyers, enable the initiation of pre-emptive sales and allow simultaneous online bidding. Reporting functionality keeps servicers informed by providing access to sales metrics, auction day selling data and post-auction escrow information.

    "Rising Tide Auctions brings significant assets to LPS, including an impressive team of executives with more than 30 years of successful property auction marketing experience," said Chad Neel, president of LPS Asset Management and Field Services. "By integrating property auction services with LPS' other leading default solutions, we can offer our clients an unparalleled toolset for managing and disposing of REO assets that delivers the best overall results. This acquisition solidifies LPS' position as the leading provider of asset management solutions."

    LPS Auction Solutions takes a creative and comprehensive approach to auction property marketing, including the development of compelling property sales materials, as well as extensive outreach involving radio, television and print advertising, direct mail and e-mail campaigns, public relations initiatives and social media engagement.
To see all the Mergers & Acquisitions for today in real-time go to http://www.streetinsider.com/Mergers+and+Acquisitions

You May Also Be Interested In





Related Categories

Special Reports

Related Entities

UBS, Citi, Morgan Stanley, Crude Oil, Bankruptcy, FDIC