Market Overview

Merger Monday Mania Roundup

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Investors and traders were treated to a plethora of merger and acquisition activity Monday morning. Here is a round-up of notable moves.

Publicis has agreed to acquire Sapient Corporation (NASDAQ: SAPE) for $3.7 billion in cash, or $25 per share. The offer represents an approximate 44 percent premium to Sapient's closing price of $17.32 on Friday.

Publicis expects the acquisition to increase its digital revenue to more than 50 percent of total sales by 2015.

Laboratory Corporation of America Holdings (NYSE: LH) has agreed to acquire Covance Inc. (NYSE: CVD) for $5.6 billion in cash and stock. Covance investors will receive $75.76 in cash and 0.2686 LabCopr shares for each Covance share they own.

LabCorp expects the acquisition will create the world's leading healthcare diagnostics company and the transaction to be accretive to earnings in 2015.

RCS Capital Corp (NYSE: RCAP) announced that it will no longer pursue a previously announced move to acquire Cole Capital Advisors from American Realty Capital Properties Inc (NASDAQ: ARCP) for $700 million.

RCS Capital's move to cancel the deal follows American Realty Capital's disclosure last week of accounting irregularities that may have been intentionally covered up.

Diageo plc (NYSE: DEO) confirmed earlier reports that it has agreed to assume full control of Tequila Don Julio by acquiring the other 50 percent stake from Jose Cuervo it did not already own. In exchange, Jose Cuervo will receive Diageo's Bushmills whiskey brand and will also pay Diageo $408 million.

Diageo expects the transaction to be economic profit break-even in three years. The company plans to use the cash payment to lower its debt load.

Posted-In: American Realty Capital Properties Bushmills Cole Capital Advisors covance Diageo Jose CuervoNews M&A


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