Dell and 13 Stocks Making Deal Buzz This Week

Here’s your Cheat Sheet to this week’s top mergers and acquisition news:

Dell Inc. (NASDAQ:DELL): Current price $13.85

The dreaded Hedge fund titan Carl Icahn officially abandoned his struggle for control of Dell on Monday, said a letter he filed with the Securities and Exchange Commission. Dell shareholders are set (so far) to vote on the deal on Thursday and because of an alteration as to how shareholder votes will be counted, Icahn admitted that it is now “almost impossible to win the battle.”

However, he tossed a few more zingers at Michael Dell and the Dell board as he made his adieu, writing that, “We therefore congratulate Michael Dell and I intend to call him to wish him good luck (he may need it).” His final shot was at for Dell’s board. “Like so many boards in this country, reminds me of Clark Gable’s last words in Gone with the Wind, they simply ‘don’t give a damn.’”

A knowledgeable source said Tuesday that Michael Dell and Silver Lake Management LLC now have the votes they need for approval of their proposed $24.9 billion leveraged. The person also reported that holders of two-thirds of the voting shares have indicated their approval for the proposed deal.

It appears that finally Michael Dell is poised to see his buyout secured after a seven-month saga that had the fate of the number-three computer maker on the planet in doubt for most of 2013. On Monday, the billionaire financier Carl Icahn abandoned his opposition to the transaction, removing what was one of the biggest road blocks to getting the buyout approved.

On Thursday it was announced that, calculated on a preliminary vote tally from the special meeting of stockholders, Dell stockholders have approved the proposal in which founder, Chairman and Chief Executive Michael Dell, will acquire Dell in partnership with the investment firm Silver Lake Partners. The preliminary vote tally indicates that the transaction was supported by the holders of a majority of Dell’s outstanding shares, which was required by Delaware law.

What is more, the tally shows that the deal was approved by the holders of a majority of Dell’s shares voting for or against the matter, not counting shares held by Michael Dell, certain of his related family trusts, Dell’s board, and certain members of its management as separately mandated under the merger agreement.


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Apollo Global Management LLC (NYSE:APO): Current price $28.37

Apollo Global will acquire Evo Banco, a division of the nationalized Spanish lender NCG Banco SA, in the first foreign private-equity purchase since the 2012 bank bailout in that country. The New York-based buyout company run by Leon Black will pay 60 million euro or $79 million, representing 55 percent of net book value, for Evo Banco, according to a Monday emailed statement from NCG.

The unit has 702 million euro of loans and 1.6 billion euro of deposits. The transaction marks the first foreign private-equity purchase of a Spanish bank since it agreed to a 100 billion euro European bailout for its financial system and created a vehicle to remove toxic real estate assets from lenders’ books.


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DIRECTV (NASDAQ:DTV): Current price $61.72

On Monday, Communications Equity Associates said that it advised Old UGC, Inc. in conjunction with the divestiture of its subsidiaries TV Show Brasil S.A. and Rapix Tecnologia e Internet Ltda. to Sky Brasil Serviços Ltda., which itself is a subsidiary of DIRECTV. TV Show supplies pay-TV and broadband connectivity services in the City of Fortaleza, Ceará State, via a MMDS and other licenses. Fortaleza is Brazil’s fifth biggest city with a population of roughly 2.5 million. DIRECTV operations in Brazil are managed under the Sky brand.

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Jacobs Engineering Group Inc. (NYSE:JEC): Current price $57.90

The construction consulting firm Jacobs Engineering Group announced Sunday that it would purchase the Australian employee-owned consultancy Sinclair Knight Merz for some $1.2 billion in cash. Jacobs has been searching out new projects in the oil and gas and chemicals sector and has historically used acquisitions to grow its market presence, having bought six other firms in the last three years.

Are these stocks a buy or sell? Let us help you decide. Check out our Stock Picker Newsletter now.


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Walgreen Co. (NASDAQ: WAG): Current price $53.43

On Tuesday, Walgreen Co. and the privately-held regional pharmacy chain in North Carolina, Kerr Drug, reported that they have reached a definitive agreement through which Walgreen will purchase certain assets of Kerr Drugs’ retail drugstores and specialty pharmacy division. In its fiscal year 2012, Kerr Drugs retail drugstores and specialty pharmacy business posted total sales amounting to $381 million. Financials of the transaction were not divulged.

The acquisition will be structured as an asset transaction and includes Kerr’s 76 retail drugstores and its specialty pharmacy arm. The deal also includes a distribution center. Kerr Drug will keep the ownership of its long-term care pharmacy division.


Lloyds Banking Group (NYSE:LYG): Current price $4.88

Shares touched a 3-year high in London on Tuesday from speculation the United Kingdom government might begin selling down its 39 percent interest in the banking group in September. Inside sources said that the government is mulling over the sale of about 25 percent of its shares, worth roughly 5 billion euro, if it can sell at above the average buy-in price of 73.6 pence. Shares have more than doubled in value during the last 12 months and were trading at 78.4 pence at 2:40 Eastern Time, up by 2.2 percent. The stock is up about 1.33 percent in New York on Tuesday afternoon.


3D Systems Corp. (NYSE:DDD): Current price $50.58

3D Systems said Tuesday that it has bought The Sugar Lab, which is a start-up micro-design company based in Los Angeles, centered upon 3D printing customized, multi-dimensional, and edible confections in real sugar. The Sugar Lab adopted 3D Systems’ Color Jet Printing technology with which to print on a sugar bed employing different flavored edible binders that meet all food safety requirements.

The buyer will immediately integrate The Sugar Lab 3D printing technique into its professional and consumer content-to-print platforms with a variety of production-quality applications, along with the ability to 3D print indulgences at home. Terms of the acquisition were not reported.


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Lockheed Martin Corp. (NYSE:LMT): Current price $127.17

Lockheed wants to make additional tech purchases in the United Kingdom and Australia after acquiring the UK technology firm Amor Group. Lockheed’s information technology division, which is one of the top players in the domestic cyber market in which it supplies services to the military and intelligence services, reported the Amor transaction late on Wednesday, saying that there would be more in the future. Executive Vice President, Lockheed’s Information Systems & Global Solutions, Sondra Barbour, remarked that, “It’s global, people are seeing their intellectual property going out the door and they’re looking for ways to prevent it.”


Linn Energy, LLC (NASDAQ:LINE): Current price $28.14

Linn Energy and LinnCo, LLC announced Thursday that the former will acquire oil and natural gas properties in the Permian Basin at a contract price of $525 million, subject to closing conditions. Linn expects the acquisition to close during the fourth quarter and will be financed mainly with proceeds from a committed term loan to be entered into at the close.


America Movil SAB de CV (NYSE:AMX) Current price $20.21

The Dutch telecoms firm KPN reported on Thursday that it is in discussions with its major shareholder America Movil concerning the latter’s proposed full takeover offer. Through a statement, KPN said that its management and supervisory boards were in continued, constructive negotiations with America Movil, which has offered $9.58 billion to purchase the shares that it does not already own. However, KPN indicated in a statement that, ”The outcome of these talks is not clear.”


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Intel Corp. (NASDAQ:INTC): Current price $23.45

According to TechCrunch, Intel has discretely made another international purchase in its venture into artificial intelligence tech, acquiring the Spanish startup Indisys, centered upon naturual language recognition. The financials of the transaction were not divulged, but the amount is said to be more than 20 million euros or $26 million. The purchase is only two months after word that Intel acquired Omek, the Israeli maker of gesture-based interfaces, supposedly for around $40 million.


AT&T Inc. (NYSE:T): Current price $34.31

As they face the probability of AT&T moving into their $313 billion market, the largest phone companies in Europe are slowing down a series of asset sales. Deutsche Telekom AG and Orange SA of France are delaying an effort to divest their 50-50 United Kingdom wireless venture known as EE, according to knowledgeable sourcs. These sources added that Telefonica SA is using a planned exit by its partners in Telecom Italia SpA to search for greater influence in the former monopoly with businesses in Brazil and Argentina.


Fresenius Medical Care AG & Co. (NYSE:FMS): Current price $32.36

Fresenius Medical Care’s Fresenius Helios will acquire the majority of Rhön-Klinikum AG’s hospitals, including 43 hospitals with roughly 11,800 beds, as well as 15 outpatient facilities. Calculated from pro forma financials, the deal should add sales of about 2 billion euros and an EBITDA of roughly 250 million euros. The University Hospital Giessen and Marburg, the hospitals in Bad Neustadt (including the Rhön-Klinikum AG headquarters), Bad Berka, and Frankfurt/Oder will stay with Rhön-Klinikum AG.


Bruker Corp. (NASDAQ:BRKR) Current price $20.73

Bruker has purchased Prairie Technologies, Inc., which provides life science fluorescence microscopy products. The deal boosts Bruker’s  position in life science markets, complementing the Bruker Nano Surfaces Divisions ongoing life science atomic force microscopy (Bio-AFM) systems. The buyer intends to operate Prairie Technologies as a business division in the Madison, Wisconsin area, and plans to leverage the global marketing, distribution, and service capabilities of the Bruker Nano Surfaces unit.


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