M&A; Activity Around The Globe: Berkshire Hathaway, Tesco PLC, LUFK, Datac Instrumentation, RealFlex Technologies, BKU
Thursday, January 19, 2022 9:19 AM

As the US stock futures rose Thursday, after Bank of America and Morgan Stanley reported earnings and as strong demand at European bond auctions reflected improved risk appetite, several M&A activities took place around the world. Some notable M&A activities are discussed here.

Warren Buffet Raises Stake in Tesco to 5.08 Percent

America’s billionaire investor Warren Buffet is said to have raised its stake in Britain’s Tesco in a move likely to be seen as a vote of confidence in Chief Executive Phil Clarke after a profit warning from the world's No.3 retailer last week. Warren buffet has raised its stake to 5.08 percent in Tesco from its earlier share of 3.21 percent, according to a regulatory filing showed on Thursday. After the news the company’s stock rose about 0.48 percent to 322.55 pence on Thursday. The stock has declined 16 percent on January 12, the most since at least 1988, after the company reported Christmas sales that missed estimates and reined back profit expectations. The stock has fallen 20 percent since the start of the year, cutting the company’s market value to 25.9 billion pounds. BRK-B is trading higher  by 0.10 percent to $79 in the pre-market trading today.

Lufkin Industries Acquires Datac Instrumentation and RealFlex Technologies

In a press release on Thursday, Lufkin Industries Inc. (Nasdaq: LUFK), a global provider of artificial lift products, services and automation solutions for the oil and gas industry, said that it has completed the acquisition of Datac Instrumentation Limited and RealFlex Technologies Limited pursuant to an agreement of December 6, 2011.  Datac, based in Dublin, Ireland, is a solutions company serving the oil and gas, power, water and waste water, and transportation and marine industries that provides systems integration for supervisory control and data acquisition ("SCADA").  RealFlex, also based in Dublin, provides real-time server software packages for SCADA and process control applications. The two acquisitions are expected to be accretive to Lufkin's earnings in 2012. Both the acquisitions are also expected to accelerate Lufkin’s strategy of expanding our technical capabilities within our Automation portfolio.  They also provide a state-of-the-art solution to Lufkin's Automation SCADA needs and add very strong R&D personnel and process assets to the Automation portfolio. LUFK last closed at $73.74 a share on Wednesday.

BankUnited Responds to Takeover Rumours; Will Stay Independent

BankUnited Inc. (NYSE: BKU) on Thursday put rest to the recent articles and publicity about the company, it has confirmed that a preliminary process did occur whereby the company considered its strategic alternatives. The bank’s private equity owners have pulled the lender off the market on Wednesday after a brief sale process drew offers below expectations. The bank will now focus on its original plan to build the premier bank throughout Florida as an independent institution. A report published on Reuters said, that the bank’s private equity partners Wilbur Ross's WL Ross & Co, Blackstone Group LP (NYSE: BX) and Carlyle Group - wanted an offer in the high $30 per share range, citing source familiar with the situation. The bank has a market value of $2.5 billion. However, after taking the sale off from the market, the bank will now report its fourth quarter FY 2011 prior to the market opening on Wednesday, January 25, 2012. BKU is trading lower by 11.06 percent to $22.19 in the pre-market trading on Thursday.