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dealReporter Risk Arbitrage Weekly Overview 01 July 2010 - 08 July 2010

Deal Reporter
08/07/2010

  • This Morning Chloride announced that the recommended cash offer by Emerson would be implemented. On Friday Chloride had announced it would recommend Emerson Electric’s GBP 3.75 takeover offer. Emerson later revealed it had acquired 19% stake in Chloride on the market. The previous day Chloride had announced that ABB was withdrawing from the bidding process after the Swiss Group decided not to match Emerson Electric’s offer. Chloride subsequently announced it would enter into discussions with Emerson. Chloride’s Board had announced the previous Tuesday that it considered the proposal offered by Emerson Electric to be superior.
     

  • On Tuesday the Board of Spice announced that it had received an increased conditional proposal from Cinven valuing the Spice share in the range of 62 to 65 pence per share. Spice chose to reject this revised proposal stating that it still significantly undervalued the company.
     

  • On Monday evening Abertis shares were suspended after shareholders ACS and Criteria confirmed media reports they were in deal talks with CVC. One option is for with ACS, Criteria and CVC to launch a full takeover bid for listed Spanish concessions group. Monday’s share suspension on Albertis was lifted the following day.
     

  • Monday morning saw Travis Perkins and BSS reach an agreement on an offer for BSS at a value of approx 435.8 pence per share. The deal values the company at around GBP 557.6m. The consideration for each BSS share will be 232.91 pence in cash, 0.2608 New Travis Perkins Shares, as well as a BSS final dividend of GBP 6.009 pence per share. A mix and match facility will also be available for the target’s shareholders to choose. The offer represents a premium of 34.1% over the closing price previous to the announcement that BSS and Travis Perkins were in discussions. It values the company at a multiple of 10.7x its EBITDA of GBP 61.9m
     

  • Also on Monday VT and Babcock announced the court had sanctioned the scheme of arrangement for the combination of the two companies.
     

  • KNOC confirmed its interest in Dana Petroleum on Friday after the UK oil and Gas Company was forced to announce, in response to a movement in its share price, that it had received a takeover approach.
     

  • Also on Friday URS confirmed that it had acquired a 13.1% stake in Scott Wilson after CH2M Hill had walked away from the bidding process earlier in the week. On Thursday URS had revised its offer for Scott Wilson Group Plc upwards to 290 pence per share this morning. This compared to its previous offer of 2.10 pence per share and competing offer of 245 pence per share by rival bidder, CH2M. The revised offer represented a 18% premium to the CH2M offer and a 233% premium to the GBP 0.87 closing price per Scott Wilson share on 4 June, the last day before the target officially entered into offer period. The latest URS offer had been recommended to the shareholders of Scott Wilson by the board of directors of the company. In response CH2M has withdrawn its offer.
     

    • application/pdf iconPress Release 8 July 2010.pdf
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