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Business Cloud with M&A

Mutual Fund Investors Reap M&A Rewards

Jun 25, 2014

Thanks to the recent spate of takeover deals, mutual fund investors have seen a new catalyst to higher stock prices and bigger portfolio gains. Judging from the building momentum, we may still be in the early innings as far as M&A is concerned.

M&A Activity since 2007

The Hillshire Brands Bidding War

Other mutual funds owning a decent chunk of Hillshire Shares and celebrating the bidding war that produced a $63 per share cash offer are below:

Other M&A Action

As we get deeper into the M&A cycle, Mondays should become even more entertaining. We had three deals announced this past Monday, with Wisconsin Energy’s (WEC) $9.1B bid for Integrys Energy (TEG) grabbing the biggest headlines.

Just to give everyone a sense of deal-related news we have seen push shares up, here’s a small sampling of what been driving shares and mutual fund performance.

  • Reynolds American (RAI) in potential talks to acquire Lorillard (LO)
  • Abbvie (ABBV) has made several offers to acquire Shire PLC (SHPG)
  • Carl Icahn taking a stake in shares of Family Dollar Stores (FDO) – private equity is another factor when it comes to deal-making!
  • Monsanto (MON) could be eying shares of Syngenta (SYT) as corporations look for an overseas tax haven acquisition partner
  • Japan’s Dai-ichi Life Insurance company has agreed to buy U.S. peer Protective Life (PL) for $5.7 billion
  • Priceline (PCLN) is buying OpenTable (OPEN) in a deal valued at $2.6 billion to add restaurant bookings to its travel business

Other company takeover rumors include: Clorox (CLX), Smith & Nephew (SNN), T-Mobile (TMUS), Dish Network (DISH), Madison Square Garden (MSG), and Anadarko Petroleum (APC), just to name some of the more recent active names in Wall Street’s garden of rumors.

Staying Bullish

The Bottom Line

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