DealZone

Deals wrap: Getting hostile

A sign points the way to the headquarters of Genzyme in Cambridge, Massachusetts August 3, 2010.  REUTERS/Brian Snyder   Sanofi is getting hostile in its bid for Genzyme, after Genzyme management refused to negotiate. The $69-per-share offer will be taken directly to shareholders but will they be looking for more? *View article *View graphic on hostile deals  *View WSJ article on pharma M&A

Growth in emerging markets is aiding a global M&A boom and with large cash piles in hand, companies are finding it hard to resist the urge to acquire. *View article

Coca-Cola has completed its deal to take over North American operation of its top bottler, Coca-Cola Enterprises. Reuters interviewed Coke Chief Executive Muhtar Kent about what the deal will mean for the remaining independent bottlers. *View article

Business Insider makes the case for Yahoo and AOL merging, immediately. *View Business Insider article

Bottlers: the choice of a new generation?

Over the last few months, as Pepsi worked out its deal to buy its main bottlers, Coca-Cola said it wasn’t interested in such a deal. Well you can’t keep a good idea down and today Coke, which once liked to be known as “the real thing,” unveiled plans to buy the bottler’s North American business.

The deal includes about $3.2 billion in Coke’s equity in CCE and the assumption of nearly $9 billion in debt. PepsiCo is due to close the $7.8 billion purchase of its largest bottlers, Pepsi Bottling Group and PepsiAmericas, perhaps within the next 24 hours. Coke expects the transactions to add to earnings by 2012. It also expects cost savings of $350 million over four years, with 70 percent of the savings realized by the end of 2012. It expects to take a related one-time charge of $425 million over three years, but will not need to use any additional borrowings.

“Coke couldn’t sit back while Pepsi delivered $600 million (or more) in synergies for reinvestment and then transformed its U.S. business model,” said ConsumerEdge Research analyst Bill Pecoriello, who suggested Coke may not be interested in holding onto the asset for the long haul.