Market Overview

Wall Street's M&A Chatter From October 24: Pure Storage, Delphi-nuTonomy, Stryker-Vexim, International Paper-Graphic Packaging


The following are the M&A deals, rumors and chatter circulating on Wall Street for Tuesday, October 24, 2017.

International Paper, Graphic Packaging to Combine N American Businesses in $1.8B Transaction

The Deal:

International Paper Co (NYSE: IP) signed a definitive agreement to transfer its North America Consumer Packaging business to Graphic Packaging Holding Company (NYSE: GPK) in a deal worth $1.8 billion. IP will receive a 20.5 percent ownership interest valued at $1.14 billion in a subsidiary of Graphic Packaging that will hold the assets for the combined business.

The transaction is expected to close in early 2018, subject to regulatory approval.

International Paper closed Tuesday at $58.67, up 42 cents. Graphic Packaging closed at $15.20, up 93 cents.

Susquehanna Believes Micron Could Buy Pure Storage at Significant Premium

The Analyst Comments:

Shares of Pure Storage Inc (NASDAQ: PSTG) rose as Susquehanna said in a note that Micron Technology (NASDAQ: MU) could consider an acquisition of PSTG, reiterating comments they made this past May. The comments are in response to an article in The Register, which mention issues involving Micron AFA software partner Excelero.

Pure Storage closed at $16.21, up $0.38.

Delphi to Acquire nuTonomy for Upfront Price Of $400M, Earn-Outs Totaling ~$50M

The Deal:

Delphi Automotive PLC (NYSE: DLPH) agreed to acquire nuTonomy for $400 million upfront and earn-outs totaling approximately $50 million. nuTonomy makes software to build self-driving cars and autonomous mobile robots.

The transaction is expected to close prior to the end of 2017.

Delphi closed at $98.27, up 50 cents.

Stryker to Acquire VEXIM for €20/Share

The Deal:

Stryker Corporation (NYSE: SYK) acquired control of French medical device company VEXIM for €20 per share. The transaction is expected to close in Q4 of 2017.

Stryker closed at $149.69, down 21 cents.

Posted-In: M&A News Rumors Pre-Market Outlook


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