Intel in $16.7 B Deal with Altera, GE Seeks Buyers for Lending Unit

Mukesh Buch
01 Jun, 2015
New York City

GE initiated bidding process for its US-based commercial lending unit valued at $40 billion. Intel agreed to acquire smaller chip maker Altera Corporation for $16.7 billion. Dollar Tree will sell 330 Family Dollar stores to Sycamore Partners. XPO Logistics to raise $3.3 billion in an offering.

[R]12:30 PM New York – GE initiated a bidding process for its US-based commercial lending unit valued at $40 billion. Intel agreed to acquire smaller chip maker Altera Corporation for $16.7 billion. Dollar Tree will sell 330 Family Dollar stores to Sycamore Partners. XPO Logistics will raise $3.3 billion through new equity and debt.[/R]

Tollbooth Index increased 0.3% or 28.48 to 10,724.70.

Earnings Review

Apollo Global Management LLC ((APO)) slid 9 cents to $22.11 after the investment manager agreed to acquire industrial magnet and battery maker OM Group Inc for $34 per share in cash, a premium of about 28% over closing share price of OM Group to $26.54 on Friday or $1.03 billion in cash.

The transaction is expected to be close by the end of the year.

Dollar Tree, Inc ((DLTR)) jumped 1.6% or $1.23 to $76.22 after the fixed price stores operator announced that it will sell 330 Family Dollar stores, Inc to the private equity firm Sycamore Partners, to get antitrust approval for its $8.5 billion takeover of Family Dollar.

The transaction is anticipated to be finalized in July.

Ferrellgas Partners LP rose 22 cents to $24.93 after the propane gas retailer agreement to acquire Dallas-based Bridger Logistics, LLC, a provider of integrated crude oil mid-stream services, for about $837.5 million cash and stock to expand its midstream services business.

The consideration consists of $562.5 million of cash and 11.2 million Ferrellgas shares.

The transaction is expected to close by July 1.

General Electric Company ((GE)) fell 12 cents to $27.15 and the Wall Street Journal said diversified conglomerate has initiated bidding process for its US-based commercial lending unit valued at $40 billion.

GE said it will sell GE Capital Fleet Services business valued at $9 billion and both transactions are expected to close by the end of this month.

Intel Corporation ((INTC)) slumped 1.4% or 48 cents to $33.99 after the semiconductor processors and chips maker agreed to acquire smaller chip maker Altera Corporation for $54 per share in an all-cash transaction valued of about $16.7 billion.

Shares of Altera Corporation climbed 6% to $51.80.

Kratos Defense & Security Solutions, Inc decreased 7 cents to $5.92 after the defense and security products provider agreed to sell its U.S. and U.K. operations of Electronic Products Divisions to U.K.-based Ultra Electronics Holdings plc for about $265 million in cash.

Molina Healthcare, Inc ((MOH)) slipped 52 cents to $72.22 after the health care provider forecasted total revenue for the year of about $14.3 billion and diluted earnings per share of about $2.35.

O'Reilly Automotive Inc ((ORLY)) gained $1.18 to $220.79 after the specialty retailer said its board of directors approved a resolution to increase the share repurchase program by an additional $500 million, rising of under the program to $5.5 billion.

The additional $500 million authorization is effective for a three-year period that begins from May 29, 2015.

XPO Logistics Inc XPO)) dropped 3.8% or $1.36 to $47.80 after the company will raise $3.26 billion through new equity and debt, partly to fund acquisitions that will be issued in up to four tranches.

The offer is just one month after $3.53 billion agreement to acquire France-based Norbert Dentressangle SA.