A Look At One Crazy M&A Weekend

Monday's trading session is most certainly one of the busiest in recent memory following a plethora of large M&A deals.

AT&T–Time Warner

AT&T Inc. T announced over the weekend it plans on acquiring Time Warner Inc TWX for $107 per share in a deal valued at around $85 billion.

Time Warner's stock is actually trading lower on the day amid regulatory concerns — not just in the United States, as the deal would give AT&T control over media content and the delivery system.

As noted by Rich Tullo of Albert Fried, the deal would face a more stringent review process in the European Union and China as international regulators are "capricious and political."

Rockwell Collins–B/E Aerospace


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Rockwell Collins, Inc. COL has agreed to acquire B/E Aerospace Inc BEAV for $62 per share, of which $34.10 will be paid in cash and the remaining in shares of Rockwell Collins' common stock.

Related Link: The Dinner Party That Led To The Merger Of AT&T And Time Warner

Rockwell Collins justified the transaction by noting that the transaction will accelerate its growth and strengthen its position as a supplier of cockpit and cabin solutions.

The company also expects the deal to generate a run-rate pre-tax cost synergy of around $160 million and also be accretive to its earnings per share at a double-digit rate.

Since the deal involves a combination of cash and equity, B/E Aerospace shareholders will own approximately 20 percent of the combined company.

China-based HNA Group announced that it bought a 25 percent equity stake in Hilton Worldwide Holdings Inc HLT from Blackstone Group for $26.26 per share.

HNA Group will appoint two directors to Hilton's board of directors, and Blackstone will continue its representation on the board — even though its stake in the hotel empire has been reduced to approximately 21 percent.

Hilton's president and CEO Christopher Nassetta stated that HNA Group has a proven track record of creating value in the hotel industry and creates new business opportunities. Of particular note, the deal better positions Hilton to target the fast-growing Chinese market, which also happens to be largest outbound travel and tourism market in the world.

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Posted In: albert friedBlackstone GroupChristopher NassettaHNA GroupRich TulloNewsM&ATrading IdeasGeneral