Deals du Jour
After weeks of speculation, miner Rio Tinto finally walked away from its $19.5 billion Chinaclo tie-up, paying a $195 million break-up fee. Shareholders are supportive — the Australia part of the rights issue, which accounted for about 22 percent of the deal, was fully sold to sub-underwriters shortly after the launch of the deal on Friday, sources told Reuters.
And in the newspapers:
* The Federal Deposit Insurance Corp has reached out to former U.S. Bancorp Chief Executive Jerry Grundhofer to see if he is interested in the top position at Citigroup, replacing Chief Executive Vikram Pandit, the Wall Street Journal reported.
* German software maker SAP will continue to make acquisitions to grow and could spend 5 billion euros ($7.1 billion) on deals, its chief executive Leo Apotheker told French daily Le Figaro. Rumours have surfaced that either IBM or Microsoft might acquire SAP, which sells business management applications to large companies.
* Level 3 Communications, tw telecom and XO Communications have expressed interest in bidding for Qwest Communications International Inc’s long-distance network, which has extended the bidding process. But valuations are much below the $2 billion to $3 billion Qwest sought, the Wall Street Journal reported.