Merger Monday: $50 Billion in Deals Announced in 24 Hour Period

July 29, 2013 17:17 by Clayton Reeves in Capital Markets, Financing, M&A  //  Tags: , , ,   //   Comments (0)

For those who slept through the last 24 day, boy has it been a busy time! As reported by USA Today, there were nearly ~$50 billion in deals announced over the past 24 hours

- The fashion chain Saks was acquired by Canadian retail giant Hudson's Bay in a deal valued at $2.9 billion
- U.S. drug maker Perrigo bought the biotech firm Elan in an $8.6 billion deal.
- Allbritton TV stations were purchased by broadcaster Sinclair in deal valued at almost $1 billion.
- Michael Baker has decided to sell itself for $392 million, $40.50 a share, to IMS, a privately held provider of professional, engineering and other services. This represents a 37% premium on Friday's closing price.
- In a deal that would create the world's largest ad agency, firms Omnicom and Publicis plan to merge. This deal would be valued at $35 billion.
- Republic Airways may also have found a buyer for Frontier Airlines (still in a preliminary, non-binding state)

What does this mean for deal making in general? Many are pointing to these deals as a sign that equity values are not all that overpriced after all. As Richard Peterson of S&P Capital IQ states in the article, deal proceeds are up from last year. However, the proceeds figures had been skewed by some large transactions, while number of deals was down. If these large deals continue to happen, it may give confidence to the middle market to pursue more deals.

Click here to read the entire article.

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