HOUSTON/NEW YORK May 24 (Reuters) – Chesapeake Energy Corp has put 504,000 acres in the DJ Basin in Wyoming and Colorado up for sale, as the U.S. energy company scrambles to raise cash to close a $9 billion to $10 billion funding shortfall.

Chesapeake, who earlier this month arranged a pricey $4 billion loan from its investment bankers to tide it over, has said it will sell as much as $11 billion in assets this year.

The DJ Basin deal includes oil and gas production from 29 wells that the company operates and Chesapeake’s interest in 24 non-operated wells, according to a prospectus on the assets.

Part of the acreage is in the Niobrara shale, an area the company’s Chief Executive Officer Aubrey McClendon characterized as disappointing in February.

Mark Hanson, an oil and gas analyst with Morningstar, said it makes sense for the company to sell acreage that wasn’t working for it, but it also underscores Chesapeake’s need for cash.

Chesapeake, the nation’s second-largest gas producer behind Exxon Mobil Corp and for years one the most active gas drillers, sold off a third of its 800,000 acres to China’s CNOOC Ltd for nearly $1.3 billion in 2011.

Chesapeake did not immediately respond to an email seeking comment on the deal.

By Nick Zieminski and Michael Erman

(Reuters) – Diversified industrial manufacturer Eaton Corp (ETN.N: Quote, Profile, Research, Stock Buzz) agreed to buy electrical equipment maker Cooper Industries Plc (CBE.N: Quote, Profile, Research, Stock Buzz) for $11.8 billion in cash and stock, its biggest-ever acquisition, a move that will lower Eton’s taxes by shifting its incorporation to Ireland.

Cleveland, Ohio-based Eaton will pay $72 per share for Cooper: $39.15 in cash and the rest in stock. Eaton shareholders will control almost three-quarters of the new Eaton Global Corp Plc.

Cooper shares were up 27 percent at $70.89 in morning trading, the day’s biggest gainer on the New York Stock Exchange, while Eaton stock was up 1.1 percent at $42.88.

The Eton-Cooper agreement would be the biggest deal of several mergers announced on Monday. Analysts said this was one way for companies to grow in a sluggish global economy.

“It drives the point home that acquisitions are an increasingly important growth avenue in a slow-growth world,” said analyst Matt Collins of Edward Jones.

“Record low interest rates and solid balance sheets make it that much easier to get deals done. Overall I wouldn’t say that it necessarily means anything strategically for other companies in the space, other than more of the same consolidation is likely,” Collins said.

By Anna Driver and Michael Erman

(Reuters) – Chesapeake Energy Corp’s largest shareholder urged the natural gas company to remain open to acquisition, despite the weakness of its share price

Chesapeake and Chief Executive Aubrey McClendon have been under pressure in recent from investors who are advocating for change in the company’s leadership and now its business model.

Following a Reuters investigation into $1.1 billion in loans taken out against his share of company wells, McClendon has been stripped of his role of chairman of the company by the board of directors and the corporate perk granting him interest in company wells will be terminated early.

Now, the company’s largest shareholder is seeking more change, urging the board and its CEO to consider the sale of the company, more asset sales and a change in strategy.

In a letter to McClendon, Southeastern Asset Management, holder of a 13.6 percent stake in Chesapeake, acknowledged the “dangers of opening such conversations” as the company struggles with concerns about McClendon’s business dealings, on top of the low natural gas prices.

“However, we also don’t want to use this large price-to-value gap as an excuse to refuse discussions with any potential acquirers who would be willing to pay a price today that recognizes the longer term value of the company,” said the letter, filed with U.S. securities regulators on Monday and signed by Southeastern CEO Mason Hawkins.

By Martinne Geller and Michael Erman

(Reuters) – Coca-Cola Co took the unusual step of shooting down a report on Monday that said it was in talks to buy energy drink maker Monster Beverage Corp, valued at more than $11 billion (6.7 billion pounds).

The statement from the world’s largest soft drink maker came in response to a story in the Wall Street Journal that said Coke was in discussions to buy the fast growing energy drink maker, whose brands include Monster Energy and Java Monster.

Coke and Monster had discussed a possible deal as recently as last year, according to two sources familiar with the matter. However, it is unclear whether the two have been in talks since then.

The Journal’s report that the two companies were in current talks, posted on its website Monday, sent Monster’s stock up 28 percent to $83.96, an all-time high. Coke later issued a statement disputing the report, and Monster stock fell, closing down 1 percent.

“At this time, we are not in discussions to acquire the Monster Beverage Corp,” Coke said in its statement. “We continue to review the best ways to maximize the value of our relationship.”

Should it happen, an acquisition would give Coke a bigger footprint in the energy drink market, which is growing faster than traditional soft drinks. Coke’s own energy drink, Full Throttle, is small compared with Monster and rivals Red Bull and Rockstar.

April 30 (Reuters) – Pipeline operator Energy Transfer Partners LP said it would buy Sunoco Inc for $5.35 billion in stock and cash to get into the more lucrative crude oil transportation business as natural gas prices stay weak.

The deal is the latest in a flurry of pipeline mergers spurred by d evelopment of shale oil and gas fields and master limited partnership (MLP) structures that have provided the pipeline industry with rich tax breaks.

The acquisition will give Energy Transfer control of Sunoco’s general partner stake of its MLP, Sunoco Logistics Partners and 32.4 percent of the partnerships units.

Sunoco Logistics owns about 5,400 miles of crude oil pipelines, 2,500 miles of refined products pipelines and 42 million barrels of refined product and crude oil storage capacity at its terminals.

Development of shale oil fields in North Dakota and elsewhere in the United States has triggered a massive upheaval in the oil pipeline business, which has traditionally focused on moving crude north from the Gulf Coast. As a result, nimble pipeline companies have been able to secure lucrative shipping commitments from producers anxious to escape inland gluts and access premium coastal markets.

At the same time, plunging natural gas prices and new sources of production close to major markets in the U.S. northeast are threatening to undermine the profitability of some long-haul natural gas pipelines. This is prompting a number of gas-focused pipeline companies to step up efforts to build a presence in the oil sector.

“Our goal is to derive more of our distributable cash flow from the transportation of heavier hydrocarbons like crude oil, NGLs (natural-gas liquids), and refined products,” Energy Transfer Chief Executive Kelcy Warren said in a statement.

NEW YORK, April 23 (Reuters) – Corporate executives are hesitant to pull the trigger on new acquisitions despite in dicating they believe the gl obal economy is improving somewhat, according to a survey of more than 1,500 executives polled by Ernst & Young.

Only 31 percent of the executives polled for Ernst & Young’s sixth “Global Confidence Barometer” survey said they expected to pursue an acquisition over the next 12 months — the lowest level since the firm started the survey in 2009.

That is down from 41 percent of the respondents in the previous survey, which was released in October 2011.

“There’s a view after two and a half years of sustained volatility that this is not your typical recession, therefore, where possible (executives) will opt for safer, more conservative routes to create value,” Pip McCrostie, global vice-chair of transaction advisory services at Ernst & Young, said in an interview.

The survey, while forward looking, reflects an already weak market for mergers and acquisitions activity. The first quarter of 2012 had the least amount of M&A activity of any quarter in seven years, and year-to-date worldwide M&A activity is down roughly 32 percent.

More than half of the executives, who came from 57 countries and 40 sectors, feel the global economy is moderately improving.

“It’s a modest increase in confidence,” McCrostie said, noting that improved employment and access to credit were two important factors in boosting the executives’ perception of the economy as a whole.

NEW YORK, April 17 (Reuters) – UBS AG’s head of investment banking for the Americas, Aryeh Bourkoff, resigned to pursue other opportunities only 13 months after taking on the position, according to three sources familiar with the matter.

Stephen Cummings, currently chairman of Americas investment banking, will become head of the business on an interim basis, one of the sources said.

Bourkoff, who joined UBS in December 1999, had been asked to reverse a flow of U.S.-based investment bankers out the door of the Swiss bank. He was made head of the Americas investment banking division last March, replacing Kevin Cox, who left the firm for Citigroup Inc shortly after.

UBS was not immediately available for comment.

The Swiss bank saw scores of M&A bankers leave after the financial crisis, which hit the Swiss bank hard and forced it to put unpopular curbs on compensation.

But the bank has in recent months managed to recruit several high profile investment bankers. Andrea Orcel, Bank of America Merrill Lynch’s top European dealmaker, joined as co-head of UBS’ investment bank in March, bringing a number of other bankers with him.

Earlier this month, UBS’ head of the Americas, Robert McCann, formed a committee of banking veterans to rebuild the company’s U.S. investment bank after the defections, as well as a trading scandal, hobbled the bank.

NEW YORK/LONDON, March 21 (Reuters) – Several Asian trading firms, including Mitsui & Co, Marubeni Corp and Noble Group, are in the running for U.S. grain and energy trader Gavilon, which could be valued at about $5 billion, according to sources familiar with the matter.

A deal for the commodities trader, which began exploring a sale in January, would give the Asian companies a sizable presence in key U.S. agriculture markets, including the third largest U.S. grains marketing network behind Archer Daniels Midland and Cargill.

Gavilon also has a large footprint in the U.S. fertilizer market, an energy operation that includes 7 million barrels of crude oil storage, plus a large oil, grains and ethanol trading desk.

All three Asian companies declined to comment.

For Singapore-based Noble, an acquisition would expand the footprint of its grains and oilseeds operations, which currently focus on South America, Europe and Asia.

But a bid by Noble would need to be backed by heavy financing that could undermine its rating, analysts said.

“The $5 billion number does seem rather aggressive relative to Noble’s market capitalisation,” said Lee Wen Ching, analyst, CIMB Research Pte Ltd.

NEW YORK/LONDON (Reuters) – Several Asian trading firms, including Mitsui & Co (8031.T: Quote, Profile, Research, Stock Buzz), Marubeni Corp (8002.T: Quote, Profile, Research, Stock Buzz) and Noble Group (NOBG.SI: Quote, Profile, Research, Stock Buzz), are in the running for U.S. grain and energy trader Gavilon, which could be valued at about $5 billion, according to sources familiar with the matter. First round bids for the company, which is owned by hedge fund manager Dwight Anderson and investors such as billionaire George Soros, were due earlier in March, the sources said. Sources have previously said that Swiss trader Glencore (GLEN.L: Quote, Profile, Research, Stock Buzz) and U.S. based Bunge Ltd (BG.N: Quote, Profile, Research, Stock Buzz) had expressed interest in the company before that deadline.

But Glencore’s interest in Gavilon has cooled after it agreed to buy Viterra Inc (VT.TO: Quote, Profile, Research, Stock Buzz), Canada’s largest grain handler, in a $6.2 billion deal on Tuesday, according to one of the sources.

Glencore will acquire Viterra and then sell off some parts to Canada’s Richardson International and Agrium Inc (AGU.TO: Quote, Profile, Research, Stock Buzz). Several industry sources said Gavilon’s two larger U.S. rivals, Archer Daniels Midland (ADM.N: Quote, Profile, Research, Stock Buzz) and Cargill, are also unlikely buyers because they would encounter antitrust problems if they were to bid for all of the company. That could give an advantage to some of the large Asian trading firms vying for the company, especially the Japanese backed by a strong yen. All the Asian trading firms could not be immediately reached for comment. Glencore and Gavilon declined to comment.

Gavilon is the third-largest grains marketing network in the United States behind ADM and Cargill. The company has a leading fertilizer distribution system, a network of grain storage bins and oil storage facilities in Oklahoma. A deal for Gavilon would give the Asian trading companies a sizable presence in key U.S. agriculture markets. Aside from its grains marketing network, Gavilon has a large footprint in the U.S. fertilizer market and an energy operation that includes storage tanks in the Cushing, Oklahoma, hub. Noble’s grains and oilseeds operation would benefit from the acquisition because its operations currently focus on South America, Europe and Asia. Marubeni is pursuing global grain sales operations. Mitsui has pledged to “strengthen the grain business as one of its core business areas.” It already owns United Grain Corp, an exporter of corn, soybeans and wheat based in the United States. Gavilon began exploring a sale and other fund-raising options in January. The company is expected to have around $650 million of earnings before interest, taxes, depreciation and amortization (EBITDA) in 2012, the sources said. The company is hoping to reach a multiple of 8 times EBITDA in a sale, they said, which would translate to a value of more than $5 billion. Gavilon has hired Morgan Stanley (MS.N: Quote, Profile, Research, Stock Buzz) to advise on the process. The bank declined to comment.

The company, which buys crops from farmers and offers storage and transportation services, suffered alongside many of its peers last year as volatile grain markets sapped trading profits, although it fared better than some. Gavilon was created just four years ago when hedge fund manager Anderson’s Ospraie fund led a $2.8 billion deal to buy the former commodity trading and merchandising operations of ConAgra Foods Inc. But its roots go back 135 years to the Peavey Co, one of the early traders of U.S. grains. It now boasts over 320 million bushels of licensed storage capacity, one of the biggest fertilizer distribution systems in the world and 7 million barrels of crude oil storage — plus a large oil, grains and ethanol trading desk. It has 2,000 employees and had $15.6 billion of revenue in the fiscal year ended September 2011, according to Moody’s.

(Reporting By Michael Erman and Soyoung Kim in New York, Victoria Howley in London, additional reporting by Thomas Polansek in Chicago and Clara Ferreira-Marques in London; Editing by Phil Berlowitz and Tim Dobbyn)

WINNIPEG, Manitoba/NEW YORK (Reuters) – Commodities giant Glencore (GLEN.L: Quote, Profile, Research, Stock Buzz), partnered with Canada’s Richardson International Ltd and Agrium Inc (AGU.TO: Quote, Profile, Research, Stock Buzz), is close to a deal to buy Viterra Inc (VT.TO: Quote, Profile, Research, Stock Buzz), Canada’s biggest grain handler, a source familiar with the matter told Reuters.

Viterra and Swiss-based commodities trader Glencore are still in talks on price, but a deal could be reached within the next 24 hours at a price above C$16 per share, said the source, who could not speak publicly because discussions are ongoing.

At C$16 a share, Viterra’s market value would be about C$5.9 billion ($5.95 billion).

Viterra (VT.TO: Quote, Profile, Research, Stock Buzz) said on Monday it was in exclusive talks with one prospective buyer, but it did not identify the suitor.

“I guess they’ve picked a winner from the bid process and now they’re hammering out the details of the bid,” said Jason Zandberg, an analyst at PI Financial Corp, who follows Viterra.

In Viterra, Glencore and its partners would acquire the leading Canadian handler of spring wheat, canola, barley and oats, just as the Canadian Wheat Board’s monopoly on Western Canadian wheat and barley is slated to end later this year. Viterra also holds a dominant grain-handling position in South Australia.

A rapidly growing global population and rising middle class in some developing countries are expected to drive demand for grains higher over the long term, making major grain handlers and food processors such as Viterra more important.