DealZone

Daily Briefing: Krafty Deal for Breakfast Club

November 15, 2007

breakfast.jpgKraft says its all-stock $2.6 billion deal to take a majority stake in Ralcorp Holdings — which takes over Kraft’s Post cereals as part of the deal — is cheaper in tax terms and less damaging to earnings than selling the unit outright. Oracle Corp Chief Executive Larry Ellison says that if his company were to make another offer for BEA Systems, it would be below its original $17-per-share offer. Shares in Tele Atlas fell sharply on market talk that Garmin would not up its bid for the digital map maker. 

British brewer Scottish and Newcastle rejected an improved 7.3-billion-pound ($14.9 billion) bid proposal from Denmark’s Carlsberg and Dutch group Heineken, while mail room equipment maker Pitney Bowes said it would explore strategic options for its U.S. management services business. 3M said it would acquire Aearo Technologies, a maker of personal protection like hearing and eye protectors, from British buyout firm Permira for $1.2 billion in cash. 

The New York Times looks at yesterday’s rumored — and denied — tie-up between UAL and Delta Airlines in the stew of long-simmering talk of an inevitable round of airline industry mergers. The WSJ’s DealJournal asks whether the National Hot Rod Association‘s IPO next month will spark a return to market for other sports leagues. The M&A Law Prof Blog digs into the collapse of Cerberus‘s United Rentals deal, noting that unlike other recent break-ups, Cerberus is not claiming a material adverse change. “Cerberus has decided that the reputational impact of their actions is overcome in this instance by the economics.”   

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