U.S. stocks shed some gains after an industry group reported home
sales rebounded 8.2 percent in May from the month before. As the U.S.
markets held on to its morning gains, several M&A activities took
place around the world. Some notable M&A activities are discussed
here.
Leonard Greed to Acquire BJ’s Wholesale Club for $2.8 Billion
Leonard
Green & Partners LP and CVC Capital Partners have agreed to acquire
BJ’s Wholesale Club Inc. (NYSE: BJ) for $2.8 billion in an all-cash
transaction, wrapping up a months-long sale process, BJ’s said in a
press release. Under the terms of the agreement, BJ’s shareholders will
receive $51.25 per share in cash for each share of BJ’s common stock
they hold, representing an approximately 38 percent premium to the
closing price of BJ’s shares on June 30, 2010, the day before LGP
announced its 9.5 percent ownership stake in the company, and an
approximately 7 percent premium to the closing price of BJ’s shares on
June 28, 2011. BJ’s board of directors approved the merger agreement and
recommends that all BJ’s shareholders vote in favor of the transaction.
The merger is subject to the approval of BJ’s shareholders, customary
closing conditions and regulatory approvals. The transaction is expected
to close during the fourth quarter of 2011. Shares of BJ’s rose 4.72
percent to $50.35 on Wednesday.
Oracle Acquires Pillar Data Systems in a “100 Percent Earn-Out Deal”
Oracle
Corp. (Nasdaq: ORCL) said Wednesday that it has entered into an
agreement to acquire Pillar Data Systems, a privately-held storage
technology company in a transaction that does not involve any upfront
payment. Pillar Data is a leading provider of innovative and highly
scalable SAN Block I/O storage systems. The acquisition is expected to
help Oracle deliver a complete line of storage products that run Oracle
software faster and more efficiently. Pillar Data Systems is majority
owned by Oracle CEO Larry Ellison. The evaluation and negotiation of the
transaction was led by an independent committee of Oracle's board of
directors. The transaction is structured as a 100 percent earn-out with
no up-front payment. Shares of Oracle were trading higher by 0.06
percent to $32.36 on Wednesday.
Holly, Frontier Merger Approved by Shareholders
Shareholders
of Holly Corp. (NYSE: HOC) and Frontier Oil Corporation (NYSE: FTO)
approved the merger of the two companies in a $3 billion deal expected
to close on Friday. The issuance of Holly common stock was approved by
more than 99 percent of the total votes cast at the meeting by Holly
shareholders. As per the terms of the agreement, the companies will
combine in an all-stock merger of equals. Frontier shareholders will
receive 0.4811 Holly shares for each share of Frontier common stock they
own at closing. The new entity will trade under the symbol HFC on the
New York Stock Exchange after the completion of the transaction. Shares
of Holly corp. were trading lower by 0.54 percent to $65.90, and
Frontier’s stock was trading lower by 0.69 percent to $31.65 on
Wednesday.
