M&A; Activity around the Globe: CV, Fortis Inc. Gaz Metro, NCR, RADS, Greencore, Uniq
Tuesday, July 12, 2011 11:30 AM

As the US stocks waver around the flat line amid spreading European debt crisis, several M&A activities took place around the world. Some notable M&A activities are discussed here.

CVPS to be acquired by Gaz Metro for $700 Million

Central Vermont Public Service Corp. (NYSE: CV) said Tuesday that it has agreed to be acquired by Gaz Metro Limited Partnership. CVPS said that it has entered into a definitive agreement for its sale Gaz Metro. This clears the path for the combination of CVPS and Green Mountain Power Corporation (GMP), a subsidiary of Gaz Metro, into one stronger utility for Vermonters. The all-cash transaction will provide CVPS shareholders $35.25 per common share, for an aggregate purchase price of US$700 million, a 45 percent premium over the closing price of $24.32 immediately prior to the announcement of the previous agreement CVPS had reached with Fortis Inc. (Fortis). The CVPS Board has terminated the agreement with Fortis after deeming "superior" the offer from Gaz Metro. CV is trading lower by 2.53 percent to $35.09.

NCR to Acquire Radiant Systems for $1.2 Billion

NCR Corp. (NYSE: NCR) said Tuesday that it has entered into a definitive agreement to acquire Radiant Systems Inc. (Nasdaq: RADS), a leading provider of multichannel point-of-sale and managed hosted service solutions to the hospitality and specialty retail markets, through a cash tender offer of $28.00 per Radiant Systems share. The equity purchase price of $1.2 billion has been approved by the boards of directors of each company. The deal is expected to accelerate NCR’s strategy of expanding into core industry adjacencies, increasing revenue growth rates and expanding margins by enhancing its mix of software and services. With Radiant’s acquisition, NCR will create a third core industry vertical, after its Financial and Retail lines of business, and establish category leadership in the hospitality and specialty retail markets. The tender offer is expected to commence on or before July 25, 2011. NCR was down 1.94 percent to $18.72, while RADS surged 30.63 percent to $28.02 on Tuesday.

Greencore Bids $181 Million to Acquire Uniq

Irish food company, Greecore Group Plc said Tuesday that it had made a $181 million (113 million pounds) offer to acquire its british rival Uniq, the maker of Marks & Spencer sandwiches that was put up for sale by its pension fund. Greencore, one of the biggest sandwich and ready meal suppliers to the British market, said the 96 pence per share offer would be partially funded by a fully underwritten rights issue, through which it hoped to raise around $111 million (70 million pounds). The deal values Uniq at a 62.7 percent premium to its share on 1 April 2011, the day on which Uniq's value realization process was announced. Greencore said that it had received acceptances to approve the deal from 37.4 percent Uniq shareholders.