Skip to main content

Market Overview

A Look At One Crazy M&A Weekend

Share:
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. (NYSE: T) announced over the weekend it plans on acquiring Time Warner Inc (NYSE: 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

Rockwell Collins, Inc. (NYSE: COL) has agreed to acquire B/E Aerospace Inc (NASDAQ: 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.

HNA–Hilton

China-based HNA Group announced that it bought a 25 percent equity stake in Hilton Worldwide Holdings Inc (NYSE: 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.

Full ratings data available on Benzinga Pro.

Do you have ideas for articles/interviews you'd like to see more of on Benzinga? Please email feedback@benzinga.com with your best article ideas. One person will be randomly selected to win a $20 Amazon gift card!

 

Related Articles (BEAV + COL)

View Comments and Join the Discussion!

Posted-In: albert fried Blackstone Group Christopher Nassetta HNA GroupM&A News Trading Ideas General Best of Benzinga

Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
SPAC
Everything you need to know about the latest SPAC news.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com