Merger Monday; DuPont Acquires Danisco for $6.3 Billion

Arthi Gupta
10 Jan, 2011
New York City

DuPont agreed to acquire Denmark-based Danisco for $6.3 billion. Sanofi began valuation of Genzyme drug Lemtrada. iGATE acquired stake in India-based Patni for $1.22 billion.

[R]7:50 AM New York – DuPont agreed to acquire Denmark-based Danisco for $6.3 billion. Sanofi began valuation of Genzyme drug Lemtrada. iGATE acquired stake in India-based Patni for $1.22 billion.[/R]

Asian and European markets declined after U.S. non-farm payrolls rose less than anticipated last week.

The economic reports to be released during the week include the retail sales report, the industrial production report, and the weekly jobless claims report.

Alcoa, JP Morgan and Intel are some of the 90 companies that are expected to release earnings this week.

China''s balance of trade surplus eased sharply in December as growth of imports outpaced exports, official figures showed on Monday. The trade surplus declined to $13.1 billion in December, following the $22.9 billion surplus recorded in November, the General Administration of Customs said.

U.S. Consumer Credit Improves

Consumer credit in the U.S. showed a modest increase in the month of November, according to a report released by the Federal Reserve on Friday, with a continued increase in non-revolving credit more than offsetting a drop in revolving credit.

The report showed that consumer credit increased by $1.35 billion in November following an upwardly revised $7.0 billion increase in October.

DuPont Acquires Danisco

DuPont entered into an agreement for the acquisition of Danisco, a global enzyme and specialty food ingredients company, for $5.8 billion in cash and assumption of $500 million of Danisco net debt.

Duke Energy Proposes to Buy Progress Energy

Duke Energy Corp., the electric utility is in advanced discussions to buy Progress Energy Inc. in an all-stock deal worth over $13 billion, according to a report first published by the Wall Street Journal.

The total value of the deal ranges between $24 billion and $26 billion when Progress''s long-term net debt of $11.4 billion is included. This excludes Progress'' cash of $691 million as of September 30, 2010.

iGate Acquires Stake in Patni

iGATE Corporation, the information technology company said today its subsidiaries have signed agreements to acquire a majority stake in India-based IT services and BPO company Patni Computer Systems Limited.

iGate, backed by private equity firm Apax Partners, agreed to acquire a 63% stake in the company at Rs 503.50 a share, valuing the transaction at approximately $1.22 billion, including the mandatory 20% open offer to be made to minority shareholders.

Sanofi Starts Valuation of Genzyme Drug

Sanofi-Aventis SA, the French drug giant announced that it is in talks with U.S. biopharmaceutical firm Genzyme Corp. on a potential Contingent Value Right, deal structure in order to raise the value of the merger offer. Genzyme has been rejecting the offers made by Sanofi-Aventis saying it is failing to recognize the value of its products and pipelines.

The companies are trying to build in the value of Genzyme''s multiple sclerosis drug Campath, known generically as alemtuzumab and to be branded as Lemtrada. Sanofi-Aventis reportedly projects the drug to generate peak annual sales of about $700 million, while Genzyme projects the revenues to reach $3.5 billion in 2017.

Curtiss-Wright Purchases Predator Systems

Curtiss-Wright Corporation acquired Predator Systems Incorporated for $13.25 million. PSI designs and manufactures motion control components and subsystems for ground defense, ordnance guidance and aerospace applications. PSI will operate within the Flight Systems division of Curtiss-Wright''s Motion Control segment.

Campbell Soup Company Ties Up with UK-based Symington

Campbell Soup Company entered into an agreement with Leeds-based dry food manufacturer, Symington''s, to launch a range of ""Campbell''s""-branded dry soups and pasta and rice meals in the United Kingdom.

Under the terms of the agreement, Symington''s is responsible for product development, production and distribution of the products, while Campbell will retain control of its brand and oversight of all marketing activity. Financial terms were not disclosed.

Parker Hannifin Buys Brazil-based HAD

Parker Hannifin Corporation, the global leader in motion and control technologies acquired HDA Acessorios e Equipamentos Ltd. of Sao Paulo, Brazil.

HDA is a manufacturer of hydraulic filters and accessories typically used in the mobile equipment, industrial and agriculture markets with offices and a manufacturing location in Sao Paulo.

Ricardo Machado, President of Parker''s Latin America Group, said that the acquisition will allow the company to establish a presence in the local hydraulic filter market and offer a new distribution channel complementing Parker''s existing distributor network throughout the region.

Air Products Extends Offer to Acquire Airgas

Air Products extended the expiration date of its tender offer for all outstanding common shares of Airgas, Inc. for $70.00 per share in cash. The offer and withdrawal rights are now scheduled to expire at midnight New York City time on February 4, 2011, unless further extended. The tender offer was previously scheduled to expire on January 14, 2011.

Investor Group Contemplates Buying Sara Lee

An investor group led by private-equity firm Apollo Global Management LLC and investor C. Dean Metropoulos is exploring possibilities to acquire packaged food company Sara Lee Corp., which recently rejected a takeover offer from Brazilian beef producer JBS SA, reports said.

The group reportedly includes Bain Capital LLC and TPG Capital LP.

Disney and Yahoo in Discussions over Internet TV

Walt Disney Co is in discussions with Yahoo Inc. for making videos from some of its television networks available through the Internet search engine''s Internet-TV software, reported the Wall Street Journal on Monday, citing people familiar with the matter.

Yahoo Connected TV software allows media companies to create applications called widgets, which enables TV content to be viewed via Internet.

Earnings Review

AU Optronics Corp. ((AUO)), a Taiwanese manufacturer of thin film transistor liquid crystal display panels reported in the month of December, the consolidated revenue was NT$30.62 billion, compared to NT$36.84 billion last year. Revenues were down 17% from the previous month''s revenues of NT$36.87 billion.

Intuit Inc. ((INTU)), the business software and services company reiterated its fiscal 2011 outlook. The company estimated operating income of $980 million to $1.015 billion, or $1.88 to $1.95 per share, and adjusted operating income of $1.215 billion to $1.25 billion, or $2.36 to $2.43 per share. Revenues are still estimated in the range of $3.74 billion to $3.84 billion.

LDK Solar Co., Ltd. ((LDK)), a manufacturer of photovoltaic products estimates revenues in the range of $870 million to $910 million, wafer shipments of 615 megawatts to 620 megawatts and module shipments of 160 megawatts to 165 megawatts for the fourth quarter of 2010.

For fiscal 2011, LDK currently estimates revenue of $3.5 billion to $3.7 billion, wafer shipments of 2.7 gigawatts to 2.9 gigawatts and module shipments of 800 megawatts to 900 megawatts.

PriceSmart, Inc. ((PSMT)), the operator of membership warehouse shopping clubs said first quarter total revenues increased 22.3% to $386.07 million from $315.42 million last year. Net income in the quarter rose 43% to $14.85 million or 50 cents per diluted share, compared to net income of $10.38 million or 35 cents per share a year ago.

Robbins & Myers, Inc. ((RBN)), the diversified machinery company reported first quarter sales surged 27% to $164 million from $129.4 million last year. Net income in the quarter surged 144% to $14.7 million or 44 cents per diluted share, compared to net income of $6.03 million or 18 cents per share a year earlier.