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Oligopolies (largest corporations by industry)

Wood & paper industry mergers

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Corporate Mergers & Acquisitions

compiled by George Draffan

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Corporations Involved

Year

$ billion

Notes

Blackstone

Hilton Hotels

2006

26

 

Basell
(division of Access Industries)

Huntsman

2007

5.6

 

URS Corp

Washington Group International (formerly Morrison Knudsen)

2007

2.6

Will be one of the largest nuclear services companies, and one of the largest tech services contractors to the US Dept of Defense.

J.C. Flowers, Friedman Fleischer & Lowe, Bank of America, JPMorgan Chase

SLM Corp (Sallie Mae)

2007

25

"A group of investors announced plans Monday to buy Sallie Mae, taking the nation's largest student lender private in a $25 billion deal that comes as some regulators call for tougher standards and lower federal subsidies for the $85 billion college loan industry...
J.C. Flowers and private-equity firm Friedman Fleischer & Lowe will invest $4.4 billion and own 50.2 percent of the company. Bank of America and JPMorgan Chase each will invest $2.2 billion and each will own 24.9 percent. The buyers will also provide Sallie Mae with $200 billion in backup financing. (April 16, 2007)

Oracle

Hyperion Solutions

2007

3.3

 

Blackstone Group LP

Equity Office Properties Trust

2007

39

 

Statoil ASA

Norsk Hydro oil and gas business

2006

30

 

Bank of New York

Mellon Financial

2006

16

Bank of New York Co. has agreed to take over Mellon Financial Corp. in a $16.5 billion all-stock deal that will create the world's largest securities servicing company and one of the biggest asset managers.
The new company, which will be called Bank of New York Mellon Corp., will be the world's leading asset servicer with $16.6 trillion in assets under custody. It also will rank among the top 10 global asset managers with more than $1.1 trillion in assets under management.
But the companies also said in announcing the deal on Monday that they expect it will result in the elimination of about 3,900 jobs, or nearly 10 percent of their combined work force...
The companies expect to cut costs by about $700 million a year and said the deal will result in restructuring charges of about $1.3 billion. (AP, Dec 4, 2006)

CB Richard Ellis Group

Trammell Crow

2006

1.8

The acquisition would give CB Richard Ellis Group about $4.4 billion in annual revenue and more than ten percent of the commercial real-estate market.

CVS

Caremark

2006

21

 

Oshkosh Truck

JLG Industries

2006

3

 

Blackstone-led alliance that includes Carlyle Group, Permira and Texas Pacific Group

Freescale Semiconductor

2006

17.6

 

Blackstone Group LP

Equity Office Properties Trust

2006

32

 

group led by Richard Kinder, American International Group, Goldman Sachs Group, Carlyle Group and Riverstone Holdings LLC

Kinder Morgan

2006

15 + 7

"There have been $407 billion in energy acquisitions announced this year, 55 percent ahead of 2005's pace." (Bloomberg, Aug 29, 2006)

Hewlett-Packard

Mercury Interactive

2006

4.5

 

group including Bain Capital, Kohlberg Kravis Roberts, and Merrill Lynch Global Private Equity

HCA

2006

33

"HCA Inc., the nation’s largest for-profit hospital operator, has agreed to be purchased by a group of investors for about $21.3 billion plus the assumption of $11.7 billion in debt. Shareholders of the Nashville-based company, which was founded by the family of Senate Majority Leader Bill Frist, will receive $51 in cash for each share of common stock under the deal announced Monday... HCA’s board has approved the deal and recommended it to HCA’s shareholders.
The buyer is an investor group comprised of Bain Capital, Kohlberg Kravis Roberts & Co., and Merrill Lynch Global Private Equity... HCA said it will solicit better proposals during the next 50 days. Barring any new offers, the company expects the deal to be completed in the fourth quarter. Last year, federal prosecutors and the Securities and Exchange Commission launched an investigation of the senator’s sale of HCA stock from his blind trusts. The sale occurred in June 2005 near the 52-week peak of HCA share’s price and shortly before the stock fell 9 percent. Bill Frist, who is considering a 2008 run for president, said he sold the stock to avoid the appearance of a conflict of interest. HCA owns or operates 176 hospitals, 92 freestanding surgery centers and facilities for outpatient and ancillary services in 21 states, England and Switzerland. (AP/MSNBC.com, July 24, 2006).

CMP Investments LP and CMP Holdings LLC, affiliate of Apollo Management LP

International Paper

2006

1.4

International Paper Company agreement to sell its coated and supercalendered papers business to an affiliate of Apollo Management L.P. The Business includes four paper mills located in Jay, Maine; Bucksport, Maine; Quinnesec, Michigan; and Sartell, Minnesota. The Agreement is among the Company, CMP Investments LP and CMP Holdings LLC, an indirect, wholly-owned subsidiary of Buyer. The purchase price consists of approximately $1.37 billion in cash plus a $29 million, ten percent limited partnership interest in Parent.

Phelps Dodge

Inco and Falconbridge

2006

40

"The deal comes a day after steel giant Arcelor agreed to merge with Mittal Steel in a $33.5 billion deal... The transaction will end a yearlong battle over Inco and Falconbridge, which had agreed to merge last October, by a cadre of rivals that had made hostile offers for both. Phelps Dodge, based in Phoenix, is swooping in as the white-knight to keep Inco and Falconbridge from its other suitors and to satisfy a growing chorus of investors that have contended the Inco-Falconbridge deal shortchanged its shareholders.
Under the terms of the deal, Phelps Dodge would acquire Inco, which would in turn sweeten its offer for Falconbridge and complete that merger." (New York Times, June 26, 2006)

Mittal Steel

Arcelor

2006

33

"The merger is a milestone in the consolidation of the steel industry, creating a behemoth with three times the capacity of its nearest rival, Nippon Steel, and 10 percent of global market share. With 320,000 employees and an estimated $70 billion in revenue, the company would be the first steel maker with more than 100 million tons of annual capacity -- enough for twice as many automobiles as the world makes every year." (New York Times, June 26, 2006)

Johnson & Johnson

consumer unit of Pfizer

2006

16

Pfizer brands include Listerine mouthwash, Sudafed cold and allergy medicine, Rolaids antacid, Benadryl allergy medicine, Rogaine baldness treatment, Zantac antacid, Bengay analgesic, Lubriderm skin lotion. (New York Times, June 26, 2006)

Tenaris

Maverick Tube

2006

2.4

 

Thermo Electron

Fisher Scientific International

2006

10.6

 

Wachovia

Golden West Bank

2006

26

 

Boeing

Aviall

2006

2

 

McClatchy

MediaNews Group

2006

1

McClatchy is selling four papers (San Jose Mercury News, Contra Costa Times, Monterey County Herald, and St. Paul Pioneer Press) in a complex deal involving financing by Hearst Corp.

Alinta Ltd

Australian Gas Light

2006

4.8

 

Danaher

Sybron Dental Specialties

2006

2

 

JP Morgan Chase corporate-trust division

Bank of New York consumer and small business banking unit

2006

3.1

"J.P. Morgan Chase, New York's biggest lender, said that it had agreed to swap its corporate-trust division for the Bank of New York's consumer and small-business banking unit in a deal valued at about $3.1 billion.
J.P. Morgan Chase will get 338 branches, mostly in the New York area, and $8 billion in business loans, the banks said in separate statements. In return, the Bank of New York will take control of a business that handles debt issues for companies and investors in 40 countries...
The Bank of New York said the transaction would more than double the size of its trust business, which services $3 trillion in debt and employs 1,300 people in 25 countries. J.P. Morgan Chase's unit services $5 trillion of debt and employs 2,400..." (New York Times, April 8, 2006).

investor group including Cerberus Capital Management LP and the private equity unit of Citigroup

Acceptance Corp (GMAC)

2006

14

For a 51% interest in General Motor's auto financing arm.

 

General Motors' 17% interest in Suzuki Motor

2006

2

GM sold its 17% interest in Suzuki Motor Corp.

Alcatel

Lucent Technologies

2006

13.4

"Alcatel SA and Lucent Technologies Inc. announced Sunday that the French telecommunications equipment maker had agreed to buy its U.S. rival in order to form a major new global player in the industry. About 8,800 jobs will be cut. The combined company, to be based in Paris, will have annual sales of 21 billion euros ($25 billion) -- close to the 2005 revenue posted by world No. 1 Cisco Systems Inc. -- and generate 1.4 billion euros ($1.7 billion) of savings within three years... The companies said the cost savings would come from several areas, including consolidating support functions, leveraging research and development and services across a larger base and cutting about 10 percent of their combined worldwide work force. As of Dec. 31 the companies had about 88,000 total employees." (New York Times, April 2, 2006).

Kohlberg Kravis Roberts, Five Mile Capital Partners, Goldman Sachs Capital Partners

GMAC Commercial Holding

2006

8.9

"General Motors sold a 78 percent stake in its commercial mortgage business, one part of its vast financing division, to an investor group... The deal includes $1.5 billion in cash and the repayment of about $7.3 billion in intercompany loans... The stake in the mortgage business, GMAC Commercial Holding, was sold to a group of investors that includes Kohlberg Kravis Roberts & Company, Five Mile Capital Partners and Goldman Sachs Capital Partners. The mortgage company repaid $7.3 billion in loans to G.M.'s financing division, the General Motors Acceptance Corporation." (New York Times, March 24, 2006).

L'Oreal

Body Shop

2006

1.1

 

Softbank

Japanese cellphone unit of Vodafone

2006

15.4

 

McClatchy

Knight Ridder

2006

4.5

McClatchy publishes The Sacramento Bee and The Star Tribune in Minneapolis... Knight Ridder publishes of 32 newspapers, including the Miami Herald, Philadelphia Inquirer and San Jose Mercury News... The combined company plans to sell 12 Knight Ridder papers, including both its papers in Philadelphia, The Inquirer and The Daily News, along with The San Jose Mercury News... [and] would hang on to some of the other Knight Ridder papers... including The Miami Herald, The Fort Worth Star-Telegram and The Charlotte Observer.. [T]he expanded company would have 32 daily papers with a combined daily circulation of 3.2 million. (New York Times, March 13, 2006).

Capital One Financial

North Fork Bancorporation

2006

14.6

 

Education Management Corporation

Providence Equity Partners & Goldman Sachs

2006

3.4

The Education Management Corporation, the nation's second-largest commercial school and education company, is planning to announce today that it has agreed to be sold to Providence Equity Partners and the private equity arm of Goldman Sachs for $3.4 billion in cash (New York Times, March 6, 2006).

AT&T

BellSouth

2006

67

"The AT&T Corporation, in announcing plans yesterday to buy BellSouth Corporation for $67 billion after months of speculation, took the offensive against low-cost rivals in the free-for-all for phone, wireless and television customers...
The new company, with $120 billion in sales, about 317,000 workers and 71 million local phone customers in 22 states, would recreate a big chunk of the former AT&T monopoly that was broken up a generation ago. With the deal, only three Baby Bells would remain: AT&T, the former SBC Communications that provided service in the Southwest and elsewhere; Qwest and Verizon, the $90 billion company which is AT&T's chief rival. The latter two might now face renewed pressure to build themselves up...
In 2004, Cingular bought AT&T Wireless for $41 billion, and last year, SBC bought AT&T for $16.8 billion and adopted its name..." (New York Times, March 6, 2006).
AT&T Inc. plans to cut up to 10,000 jobs, mostly through attrition, if its $67 billion purchase of BellSouth Corp. goes through...
The work force reduction would take place over three years, AT&T's Rick Lindner said on a conference call. The acquisition is expected to close next year, pending approval from shareholders and regulators.
Before the cuts, the combined company would have around 317,000 employees, including Cingular Wireless LLC, which is now an AT&T-BellSouth joint venture.
The 10,000 planned cuts are in addition to the 26,000 job cuts AT&T has already announced -- 13,000 due to SBC's acquisition of AT&T Corp., which closed in November, and 13,000 due to ''operational initiatives.'' The combined SBC-AT&T took the name AT&T Inc.
San Antonio-based AT&T expects the acquisition announced Sunday to save it $2 billion annually at first, increasing to $3 billion a year by 2010..." (New York Times, March 6, 2006).

consortium led by Cerberus Capital Management

Albertson's

2006

$17.4

Albertson's sold to a consortium of investors for $17.4 billion in cash, stock and assumed debt. Cerberus Capital Management will acquire 655 Albertson's, Super Saver, Osco and Sav-on stores. SuperValu will acquire 1,124 Albertson's, Acme Markets, Bristol Farms, Jewel-Osco, Shaw's, and Star Markets to become the second-largest supermarket in America with 2,656 stores in 48 states and $44 billion in revenues. CVS will acquire Albertson's 700 stand-alone drugstores. (Albertson's news release, Jan 23, 2006).

Disney

Pixar

2006

7.4

 

Bain Capital

sensors and controls unit of Texas Instruments

2006

3

 

 

General Motors' 20% interest in Fuji Heavy Industries

2005

 

GM sold its 20% equity holding in Fuji Heavy Industries.

Hilton Hotels

Hilton Group PLC

2005

5.7

Hilton Hotels will buy the hotel assets of Britain's Hilton Group PLC to create the world's biggest hotel company, which includes Hilton, Conrad, Doubletree, Embassy Suites, Hampton Inn, Hilton Garden Inn, Homewood Suites, Scandic, and Hilton Grand Vacations Club.

Seven & I Holdings

Millennium Retailing

2005

1.1

Seven & I Holdings Co., owner of 7-Eleven convenience stores in Japan and the United States... will pay 131.1 billion yen ($1.13 billion) to buy department store operator Millennium Retailing Inc. in a deal creating Japan's biggest retailer. Tokyo-based Seven & I will complete the transaction in two steps, first buying a 65 percent stake in Millennium from Nomura Principal Finance for 131.1 billion yen in cash by the end of March... It will buy the remaining 35 percent directly from Millennium in a stock swap by June. Millennium is an unlisted company. Aside from 7-Eleven, Seven & I also owns the Ito-Yokado supermarket chain. Millennium owns Japanese retailers Sogo Co. and Seibu Department Stores Ltd. Their combined revenue would come to around 4.5 trillion yen ($38.8 billion) for the year ended Feb. 28, making Seven & I the biggest in Japan's retail industry followed by Aeon Co... (abcnews.com, Dec 26, 2005).

Sprint-Nextel

Nextel Partners

2005

6.5

Nextel Partners shareholders had approved a provision in October that required Sprint Nextel to buy two-thirds of the company it doesn't already own. That came after Sprint Corp. acquired Nextel in August for $35 billion. Nextel Partners and other affiliates provide wireless service to rural areas and smaller cities that were not served by Sprint or Nextel. (Seattle Times, Dec 20, 2005)

FPL Group

Constellation Energy Group

2005

11

 

Google

5% interest in America Online

2005

1

Google Inc. is buying a 5 percent stake in Dulles-based America Online for $1 billion as part of a far-reaching business and advertising partnership that will link the two companies in many ways and will greatly enhance AOL's financial prospects, according to people familiar with the agreement.
The deal between Google and AOL is a setback for Microsoft Corp., which had sought to replace Google as the search engine on the AOL service and had been in talks with AOL's parent, Time Warner Corp, since January. Google is the leader in search, followed by Yahoo Inc. and Microsoft's MSN Search, which is a distant third.
America Online Inc. is trying to find ways to keep customers coming back to its Internet community while parent company Time Warner Inc. seeks ways to expand its Internet empire.
Under the agreement, Google will remain the search engine on the AOL service with a revenue sharing from text-based ads provided by Google of about 80 percent to AOL and 20 percent to Google. In addition, AOL will get the exclusive right to sell other types of advertising, including banner ads, for the Google network. AOL will keep 20 percent of the proceeds from those ad sales, while Google will get about 80 percent. (Washington Post, Dec 16, 2005).

Bank of America

MBNA

2005

35

The acquisition is expected to result in the loss of 6,000 jobs nationwide (MBNA has 10,500 employees at time of announcement).

ConocoPhillips

Burlington Resources

2005

35.6

 

Valor Communications

spinoff of Alltel land-line unit

2005

9.1

 

Alltel

Western Wireless

2005

1

 

Scotia Capital

GMAC auto loans

2005

up to 20

General Motors Acceptance Corp. said Monday it agreed to sell up to $20 billion in U.S. retail automotive assets to Scotia Capital, the investment banking unit of Bank of Nova Scotia. GMAC, the financial services unit of troubled General Motors Corp, said the agreement calls for purchases by Scotiabank under a $6 billion revolving facility. This facility represents funding for up to $20 billion of GMAC U.S. retail automotive contracts during a five-year period from Nov. 2005 to Oct. 2010. Scotiabank will make an initial purchase of $3 billion in Dec. 2005. Under the agreement, Scotiabank will purchase a full spectrum of GMAC's active U.S. retail auto finance contracts. GMAC will continue to service the auto finance contracts. "GMAC is continuing to transform the automotive whole loan market with diverse types of auto whole loans," said Sanjiv Khattri, GMAC's chief financial officer. "We are pleased to extend our long relationship with our global partner Scotia Capital through this important transaction." Khattri said GMAC expects to sell $15 billion of auto whole loans in 2005. (Reuters / CNNMoney, Dec 5, 2005)

American Pharmaceutical Partners

American BioScience

2005

4.1

"American Pharmaceutical Partners Inc. said Monday it is buying its largest shareholder, privately held American BioScience Inc., for stock worth about $4.1 billion, creating a biopharmaceutical company with annual revenue of more than $500 million. The new company will be named Abraxis BioScience and will have worldwide rights to cancer treatment Abraxane, which is marketed in the United States for metastatic breast cancer and is being developed for other breast, lung, ovarian, prostate, melanoma and head and neck cancers in more than 74 clinical trials, including seven Phase III studies. (AP, Nov 28, 2005).

Sprint Nextel

Alamosa Holdings

2005

4.3

 

Swiss Re

GE Insurance Solutions

2005

6.8

 

Koch Industries

Georgia-Pacific

2005

13.2

In May 2004 Koch bought G-P pulp mills in Brunswick Georgia, and New Augusta Mississippi for $610 million. G-P spun off its timberland in 2001 and sold the lumber distribution unit in 2004. G-P is the #1 US biggest plywood maker and #3 boxes manufacturer; recently half its profits came from tissue. (Bloomberg, Nov 14, 2005).

Blackstone Group

La Quinta

2005

2.3

"La Quinta owns and manages several franchise brands, including La Quinta, Baymont, Woodfield Suites and Budgetel hotels... Blackstone has already bought four hotel companies in the last two years. In August, Blackstone bought Wyndham International for $1.44 billion, taking the Dallas-based Wyndham private and retaining the assets. Cendant later acquired the Wyndham brand. In 2004, it bought Prime Hospitality for $560 million and Boca Resorts for $1 billion. In May 2004, it bought Extended Stay America for $1.99 billion...." (USA Today, Nov 9, 2005).

Liberty Global

Cablecom Holdings

2005

2.2

 

Lincoln National

Jefferson-Pilot

2005

7.5

 

Inco

Falconbridge

2005

10.2

In August 2005 Xstrata "agreed to pay Canadian investment company Brascan for a 19.9 percent holding in nickel producer Falconbridge, just under the Canadian legal threshold requiring a bid for all outstanding shares... Last year Brascan put its main mining subsidiary Noranda up for sale." (New York Times, Aug 15, 2005).
The Inco transaction in October 2005 "apparently thwarts the Swiss company Xstrata's designs... to increase its holdings..." (New York Times, Oct 13, 2005).

E*Trade

BrownCo unit of JP Morgan Chase

2005

1.6

 

WellPoint

WellChoice

2005

6.5

 

Oracle

Siebel Systems

2005

5.85

 

Julius Baer

UBS units

2005

4.6

UBS sold its three private banks (Banco di Lugano, Ehinger & Armand Von Ernst and Ferrier Lullin) and asset management company GAM.

Chevron

Unocal

2005

18

 

Adidas

Reebok

2005

3.8

New company would have 20 percent of the U.S. market. Nike global sales are $14 billion; Adidas $8 billion; Reebok $4 billion. (Chicago Tribune, Aug 2, 2005).
"Even after the merger, Nike, which has sales of $12.2 billion, will have the largest market share in the United States, at 36.3 percent. But Adidas's share will jump to 21.1 percent, from 8.9 percent. And in global market share, the gap between the two will narrow: 32.9 percent for Nike versus 26.3 percent for Adidas-Reebok..." (New York Times, Aug 2, 2005).

Kinder Morgan

Terasen

2005

3.1

The new company would have 40,000 miles of natural gas and petroleum pipelines and more than a million customers.

Teva Pharmaceutical Industries Ltd

Ivax Corp

2005

7.4

Would create world's largest generic drug company.

Toronto-Dominion Bank

Hudson United Bancorp

2005

1.9

 

Pogo Producing

Northrock Resources Ltd (Unocal subsidiary)

2005

1.8

 

VNU

IMS Health

2005

7

 

Mohawk Industries

Unilin Holding of Belgium

2005

2.65

 

Zions Bancorp

Amegy Bancorp

2005

1.7

 

UnitedHealth Group

PacifiCare Health Systems

2005

8.1

 

 Omnicare

NeighborCare

2005

1.55

 

Thomas H. Lee Partners and William Foley II

Callaway Golf

2005

1.2

Takeover bid that would take the nation's largest manufacturer of golf clubs private.

Pfizer

Vicuron Pharmaceuticals

2005

1.9

 

Integrated Device Technology

Integrated Circuit Systems

2005

1.7

ICS makes chips known as clocks, which control the pace of personal computers and other electronic systems. ICS, based in Norristown, Pa., said it has roughly 70 percent of the PC clock market.
IDT is a 25-year-old chip company that makes communications chips for telephone and wireless networks... Combined revenue of the two companies for the year ended March 31, 2005, would be $645 million. IDT shareholders will have 54 percent of stock, while ICS shareholders will have 46 percent. The deal is subject to regulatory approvals and is expected to close in the fall...
Last week, David Wah, managing director at Credit Suisse First Boston, said at a gathering of chip executives that mergers would pick up. So far this year, about 13 deals valued at $2 billion have been completed. That compares with 23 deals valued at $7.9 billion last year, and a record 99 deals valued at $66.1 billion in 2000.
Wah said that about 36 percent of the assets held by chip companies were in cash, meaning they likely would soon start committing idle money to acquisitions and other deals... (MercuryNews, June 16, 2005).

Bank of America

China Construction Bank

2005

3

Bank of America... will invest $2.5 billion for a 9 percent stake in the Chinese lender and buy $500 million of shares later this year in the Beijing- based bank's initial public offering... The U.S bank's investment surpasses China purchases by HSBC Holdings Plc, Europe's biggest bank by market value, and by Citigroup Inc., the world's largest financial-services company. They are buying stakes in lenders and setting up credit-card ventures in China... HSBC, Europe's biggest bank by market value, is the biggest investor in Chinese financial institutions. It bought 20 percent of Bank of Communications, China's fifth-biggest lender, for $1.75 billion last year. Citigroup, the world's biggest financial services company, has a 4.6 percent stake in Shanghai Pudong Development Bank Co... (Bloomberg, June 16, 2005).

PetroChina

oil fields held by China National Petroleum

2005

2.5

PetroChina Co will pay $2.5 billion for a 50 percent stake in oil fields held by its parent China National Petroleum Corp in Algeria, Kazakhstan and Venezuela, Indonesia, Oman, Azerbaijan, Ecuador, Peru and Canada.
"China, the world's second-largest energy user, is encouraging local companies to secure oil and gas supplies abroad as prices rose to records this year. China National Petroleum is injecting overseas assets into PetroChina to boost production and counter declines at the nation's biggest field, Daqing..." (Bloomberg, June 9, 2005).

ING Clarion

Gables Residential Trust

2005

1.6

 

ProLogis

Catellus

2005

3.6

 

Weatherford International Ltd.

Precision Drilling

2005

2.3

 

Washington Mutual

Providian Financial

2005

6.4

 

Sun Microsystems

Storage Technology

2005

4.1

 

L-3 Communications

Titan

2005

2.6

"[C]ombine[s]s L-3's surveillance and reconnaissance systems with Titan, which has more than $2 billion in annual sales, mainly from military, intelligence and homeland security contracts with the government... It has a backlog of more than $6.6 billion in contracts...." (New York Times, June 4, 2005).

Brascan

Weyerhaeuser's British Columbia coastal operations

2005

1.2

Brascan's new Island Timberlands unit will hold the private timberlands; the new Cascadia Forest Products unit will own the mills and cutting rights on public land.

Unicredito

HVB

2005

20

"Unicredito Italiano SpA of Italy is in advanced talks to buy Germany's HVB Group AG for about 16 billion euros ($20 billion) in what would be Europe's largest-ever cross-border banking deal... Unicredito is Italy's largest bank by market value, and HVB is Germany's second-largest by market value after Deutsche Bank AG..." (MarketWatch, May 27, 2005).

MidAmerican Energy Holdings

PacifiCorp

2005

9.4

MidAmerican Energy Holdings (owned by Warren Buffet's Berkshire Hathaway) to acquire PacifiCorp (owned by Scottish Power plc) for $5.1 billion in cash and $4.3 billion in debt and preferred stock.

UPS

Overnite

2005

1.25

 

Sabre

Lastminute.com

2005

1.1

"Sabre said its Travelocity Europe subsidiary is offering 165 pence a share for Lastminute.com... one of the largest in online travel services in Europe, in league with AC/InterActiveCorp's Expedia..." (Marketwatch.com, May 12, 2005).

3M

CUNO

2005

1.3

3M Co. Thursday said it has agreed to acquire filtration products maker CUNO Inc. for about $1.35 billion in a move aimed at tapping the growing water purification market... Water purification is being targeted as high-growth market by other companies, including General Electric Co., due to a scarcity of fresh water in the future. 3M said the global liquid and air filtration market is larger than $30 billion and growing at more than 8 percent a year..." (CNN Money, May 12, 2005).

Duke Energy

Cinergy

2005

9

"Duke Energy, one of the nation's largest utilities, said yesterday that it had agreed to buy Cinergy in an all-stock deal valued at $9 billion to expand its businesses in power and gas into the Midwest. The acquisition would create a company with 5.4 million customers, 54,000 megawatts of electricity generation and operations in two-thirds of the United States, as well as Canada and most of South America..." (New York Times, May 10, 2005).

Valero Energy

Premcor

2005

6.9

Would create the largest refiner of crude oil in North America.

Nasdaq Stock Market

Instinet Group

2005

1.9

 

New York Stock Exchange

Archipelago

2005

 

 

Time Warner and Comcast

Adelphia Communications

2005

17.6

"..Time Warner and Comcast will pay $12.7 billion in cash and will give Adelphia 16 percent of the stock of a newly created Time Warner Cable unit that will trade publicly when the deal closes in about nine months. Time Warner said the new company could have about $13.8 billion in annual revenue. The transaction will also unravel an unwieldy relationship in which Comcast owns 21 percent of Time Warner Cable. The result will be that Comcast is putting up $1.5 billion and Time Warner is putting up $11 billion, and after purchases and swaps, Time Warner will have 14.4 million subscribers, up from 10.9 million. Comcast will add 1.8 million subscribers, bringing its total to 23.3 million..." (New York Times, April 22, 2005).

Shire Pharmaceuticals Group

Transkaryotic Therapies

2005

1.6

 

ChevronTexaco

Unocal

2005

16.4

"The deal ranks as the sixth biggest oil and gas merger and/or acquisition in the U.S. and the largest U.S. oil and gas deal since Phillips Petroleum Co.'s acquisition of Conoco Inc. in November 2001 for $24.8 billion...
ChevronTexaco expects their combined oil-equivalent production next year to average 3 million barrels per day and Unocal's 1.7 billion barrels of oil-equivalent proved reserves to boost ChevronTexaco's reserve base by 15% to 13 billion barrels and its natural gas weighting by 5% to 34% of its oil equivalent total...
ChevronTexaco said the Unocal assets would expand its presence in several of the company's core areas, including the Asia Pacific, where it would become a top natural gas producer and marketer and the top oil and gas producer in Thailand; the Gulf of Mexico, where it is already a leading participant on the shelf and in the deepwater; and the Caspian Region, where it would have the second-largest interest in the Azerbaijan International Operating Co. and a share in the Baku-Tbilsi-Ceyhan export pipeline.
"Fifty percent of Unocal's production and reserves are in Asia, the world's fastest growing area economically," O'Reilly said. "Unocal's significant and growing gas business is one of the prime reasons for the transaction."
O'Reilly said the $325 million in annual cost savings in the first year would come from eliminating duplication of effort in operations and at the corporate level (two-thirds of the total) and highgrading investment programs (one-third)..." (citation missing).
"Chinese state-run oil firm CNOOC (NYSE:CEO) on Wednesday offered to buy U.S. producer Unocal, for $18.5 billion in cash, setting the stage for a takeover battle with Chevron Corp. (Reuters, June 22, 2005).

Time Warner and Comcast

Adelphia Communications

2005

17.7

"The joint bid by Time Warner Inc. and Comcast Corp. was presented Thursday to a U.S. Bankruptcy Court judge in New York... Adelphia, whose stock plummeted after a financial scandal involving its now-convicted founder and one of his sons, filed for Chapter 11 bankruptcy protection in June 2002..." (Los Angeles Times, April 8, 2005).

Verizon

MCI

2005

8.5

"Verizon, the nation's largest regional phone company, announced this morning that it had agreed to acquire MCI for about $6.6 billion in cash and stock, the latest merger in the rapidly consolidating telecommunications industry. Verizon's acquisition ends the independence of MCI, the nation's second-largest long-distance company, with 14 million residential customers and about a million corporate customers... Verizon's executive vice president and chief financial officer, said that there will be job cuts. 'In total we are targeting about a 7,000 head count reduction'... Last year MCI emerged from bankruptcy protection and changed its name from WorldCom after nearly collapsing when an $11 billion accounting fraud was unearthed. MCI is a shadow of its former self, but its high-margin corporate customers and worldwide telephone and data network make it quite valuable..." (New York Times, Feb 14, 2005).

"MCI said it accepted a revised takeover bid from Verizon worth about $7.6 billion, rejecting a $8.45 billion offer from Qwest Communications International." (USAToday, March 29, 2005).

"Qwest Communications International Inc. boosted its bid for MCI Inc. again... offering $8.94 billion just two days after the long-distance phone company accepted a sweetened $7.51 billion proposal from Verizon Communications Inc..." (Associated Press/MSNBC.com, March 31, 2005).

"Verizon Communications Inc. said Saturday it is paying $1.1 billion to acquire a 13.4 percent stake in MCI Inc. directly from its largest single stockholder [Mexican billionaire Carlos Slim Helu]. The transaction removes a major wild card in Verizon’s bid to fend off a higher-priced offer to acquire MCI by Qwest Communications International Inc. of Denver..." (MSNBC.com, April 11, 2005).

"Qwest Communications International angrily withdrew its takeover offer for MCI this afternoon after MCI's board accepted Verizon Communications' latest competing bid, even though it was lower. Qwest said in a statement that MCI's board was "more interested in bending to Verizon's will than serving its shareholders." Qwest's withdrawal appears to end a contentious three-month battle with Verizon for MCI. Earlier today, Verizon raised its takeover offer to $8.5 billion, and MCI's board unanimously declared it superior to Qwest's $9.8 billion bid.." (New York Times, May 2, 2005).

Silver Lake, Bain Capital, Blackstone Group, Goldman Sachs Capital Partners, Kohlberg Kravis Roberts, Providence Equity Partners, Texas Pacific Group

SunGard Data Systems

2005

10.8

" SunGard creates a variety of financial software, including products that manage complex stock trades, insurance holdings, mutual funds and corporate finances. The company claims that its software manages 70 percent of the transactions made on the Nasdaq Stock Market. It also produces software for corporate information management... Other Silver Lake investments [have included Seagate, UGS,] Ameritrade, Business Objects, Flextronics, Gartner Group and MCI." (San Jose Mercury News, March 28, 2005).

Monsanto

Seminis

2005

1.4

"Seminis is the global leader in the vegetable and fruit seed industry, supplying more than 3,500 seed varieties to commercial fruit and vegetable growers, dealers, distributors and wholesalers in more than 150 countries..." (company news release, Mar 23, 2005).

Medicis

Inamed

2005

2.8

"Medicis and Inamed Corporation today jointly announced that they have entered into a definitive merger agreement to create a global leader in breast and facial aesthetics products and therapeutic dermatological medicine. The combined company will have annual revenue in excess of $700 million, operations in more than 12 countries, businesses in over 60 countries, and approximately 1,500 employees. The combined entity will have a broad, well-established, portfolio of complementary products in the facial aesthetics, breast aesthetics and therapeutic dermatological markets, and innovative surgical devices for the treatment of morbid obesity." (company news release, March 21, 2005).

AC/InterActive

Ask Jeeves Inc

2005

1.9

AC/InterActiveCorp, the Internet company headed by Barry Diller, is close to an agreement to acquire Ask Jeeves Inc., the nation's fourth-largest search engine company, for about $1.9 billion, according to an executive involved in the negotiations... IAC/InterActive owns a variety of Internet businesses. Its principle holdings are Expedia, Ticketmaster, Home Shopping Network, Match.com and CitySearch. Advertising spending on search sites is rapidly growing and Mr. Diller's company appears to be trying to tap into a market dominated by Google and Yahoo. (New York Times, March 21, 2005).

Bain Capital Partners, Vornado Realty Trust and affiliates of Kohlberg Kravis Roberts (KKR)

Toys R Us

2005

6.6

 Toys R Us Inc. shareholders approved buyout in June 2005.

IBM

Ascential Software

2005

1.1

"IBM on Monday said it had agreed to buy Ascential Software Corp. (ASCL.O) for $1.1 billion, seeking to narrow the gap with rival Oracle Corp. (ORCL.O) in the database business. International Business Machines Corp. said the acquisition would complement its information integration business, a unit that produced triple-digit growth in 2004, and vault it into the No. 1 position in this software niche... Ascential, based in Westboro, Massachusetts, provides software that helps companies pull together data from different computer systems and analyze them. Retailers are snapping up its software so they can quickly analyze trends seen from different store systems... Armonk, New York-based IBM has been on a buying spree of information management software in recent years, making eight small or medium-sized deals since 2001 in content management, information integration and business intelligence. Ascential is the 40th acquisition in the past 10 years by the IBM software group. IBM is selling its personal computer business to China's Lenovo Group Ltd. but still sells the computers, software and technical services used by big organizations to run their operations. The Ascential deal is expected to put pressure on IBM rivals such as Oracle, the No. 1 provider of database software, and SAP AG, the leading maker of software used by companies to stitch together business operations like payroll, manufacturing and human resources systems..." (New York Times, March 14, 2005).

Crompton

Great Lakes Chemical

2005

1.5

"Chemicals maker Crompton Corp. is buying rival Great Lakes Chemical Corp. for about $1.55 billion in stock in a deal that would create a leader in plastics and petroleum additives, flame retardants and pool chemicals." (AP, March 9, 2005).

BHP Billiton

WMC Resources

2005

offer

7.3

"Anglo-Australian miner BHP Billiton Ltd. has offered $7.3 billion in cash for Australian metals miner WMC Resources Ltd. on Tuesday, topping a spurned $6.5 billion bid from Swiss-based Xstrata PLC. The WMC board said in a joint statement with BHP that it had unanimously recommended the offer in the absence of a higher bid. If successful, the takeover bid will give BHP Billiton control of two of the world's four largest copper deposits and establish the company -- already the world's largest miner -- as a major producer of uranium. But BHP's offer could entice offers from rivals such as Rio Tinto PLC, which had been expected to make a counteroffer after the federal government last month gave permission under its foreign ownership regulations for Xstrata to buy WMC. WMC is a metals miner that holds significant copper and nickel deposits, and almost 40 percent of the world's known uranium resources at its Olympic Dam mine in South Australia state..." (AP/New York Times, March 8, 2005).

Medco Health Solutions

Accredo Health

2005

2.2

"Medco Health Solutions Inc., one of the nation's biggest pharmacy benefits managers, said Wednesday it has agreed to buy Accredo Health Inc., a distributor of specialty drugs and services, for about $2.2 billion in cash and stock... Combined with its own operations, Medco said the deal would create the nation's largest specialty pharmacy business, generating more than $4 billion in annual net revenue from that business alone... Accredo distributes drugs to treat hemophilia, immunodeficiency disorders, multiple sclerosis and other diseases through 36 branch locations or ships them from four centralized dispensing facilities to patient's homes, doctors' offices and hospitals..." (AP / New York Times, Feb 23, 2005).

SBC Communications

AT&T

2005

16

"The deal also ends more than 100 years of independence for AT&T, also known as Ma Bell, which was forced by federal antitrust regulators to break up its operations in 1984... The deal, he said, will combine AT&T's national and global networks and expertise with SBC's strong platforms and skills in local exchange service, wireless and broadband. The acquisition is a sign of ongoing consolidation among both traditional landline providers like SBC/AT&T and cell phone operators. Cingular Wireless, the cell phone operator partly owned by SBC, catapulted to the top of the U.S. cell phone market in late 2004 by purchasing AT&T Wireless, and Sprint is buying Nextel Communications, the cell phone operator catering mainly to businesses. With fewer choices, consumer advocates say prices of phone service will likely creep up after many years in decline. Telephone providers have been engaged in a turf war with cable companies and Net phone carriers, which have encroached on the Bells' role as the primary source for delivering phone calls. By the same token, telephone carriers have been looking at ways to expand their markets, by delving into wireless and offering high-speed Internet connections." (CNET News.com, Jan 31, 2005).
"SBC Communications... said it expects to cut around 12,800 jobs as a result of its $16 billion acquisition of AT&T. The company said in a slide presentation prepared for an analyst meeting on Tuesday that 5,125 jobs will be cut as a result of network efficiencies. Another 1,700 will be trimmed from the combined sales department, 3,400 will be cut from business operations and 2,600 will be cut in divisions such as legal, advertising and public relations. It expects 60 percent of the cost savings from the deal to come from job cuts. SBC currently employs 163,000 people, while AT&T employs 47,000 people, but each company is planning its own job cuts prior to closing the deal. The company's remarks come a day after SBC said it would buy AT&T, creating the largest telephone company in the United States." (Reuters, Feb 2, 2005).

Procter & Gamble

Gillette

2005

55

"Procter & Gamble Co., the nation's largest consumer products company, reached a deal today to acquire Gillette Co. for about $55 billion in stock... The deal would create the world's largest consumer products business, overtaking Unilver..." (New York Times, Jan 27, 2005).

Monsanto

Seminis

2005

1

"... Monsanto, the agribusiness company, agreed yesterday to pay about $1 billion to acquire Seminis, the world's largest producer of fruit and vegetable seeds. Until now, Monsanto has focused on corn, soybeans and cotton seeds, and on using genetic engineering to produce crops that are resistant to herbicides and insects. But executives said yesterday that Monsanto would develop new vegetable varieties using conventional breeding. They said the fruit and vegetable seed business could grow without biotechnology, based on a consumer movement toward healthier diets..." (New York Times, Jan 25, 2005).

Cerebus Capital Management

MeadWestvaco's paper business

2005

2.3

The papers business and related assets will be a private business named NewPage Corporation. NewPage will includes mill in Ohio, Micgigan, Maryland, Maine, and Kentucky as well as 900,000 acres of timberland in Ohio, Illinois, Kentucky, Michigan, Missouri and Tennesee. MeadWestvaco will focus on its packaging, consumer and office products, specialty chemicals and specialty papers. (MeadWestvaco news release, Jan 18, 2005).

Exelon

Public Service Enterprise Group

2004

13

 

Silver Lake

UGS

2004

2

 

Johnson & Johnson

Guidant

2004

25.4

"Johnson & Johnson said on Wednesday that it will acquire device manufacturer Guidant Corp. for $25.4 billion... Indianapolis-based Guidant makes pacemakers and cardiac defibrillators that will complement J&J's products and services in cardiology and medical devices. Guidant shareholders still must approve the acquisition, the largest business deal in Johnson & Johnson's 118-year history. Guidant, which was spun off by Eli Lilly and Co. in 1994, capitalized on breakthroughs in heart stents and pacemaker-defibrillator technology to become one of the world's top medical device makers." (source...)

"Johnson & Johnson, the medical products giant, has indicated to the Guidant Corporation that it wants to renegotiate a lower price than the $25.4 billion it agreed to pay in December... Guidant, a maker of medical devices, has insisted that the deal be completed as agreed, said the two people. Any disputes between the companies, if not resolved, could erupt into a court battle. In December, Johnson & Johnson agreed to buy Guidant in a deal that valued the company's stock at $76 a share. But in recent months, Guidant has recalled tens of thousands of implantable heart devices like defibrillators and pacemakers. The Food and Drug Administration is investigating the company's handling of product-related safety issues..." (New York Times, oct 19, 2005).

United Technologies

Kidde PLC

2004

2.8

"Kidde PLC, the British fire and safety company, said... it had agreed to a 1.4 billion pound ($2.8 billion) takeover by United Technologies Corp... Kidde PLC became an independent company four years ago. The group originated in 1988 when Williams Holdings acquired Graviner Ltd. and its subsidiaries Deugra in Germany and Detector Electronics in the United States. The Walter Kidde Group, which included the Kidde and Fenwal companies the United States and Britain, was also part of the acquisition. United Technologies last year acquired Chubb PLC, also formerly part of Williams Holdings. United Technologies also owns Pratt & Whitney, an aircraft engine maker and Sikorsky, a maker of helicopters, as well as Otis elevators and Carrier air conditioners." (AP / MSNBC, Dec 16, 2004).

Symantec

Veritas

2004

13.5

Symantec Corporation, the leading maker of computer security software, will buy the Veritas Software Corporation for about $13.5 billion in stock... The agreement... creates the world's fourth-largest software company... It is expected to have revenue of $5 billion for the fiscal year ending in March 2006... "The new Symantec will help customers balance the need to both secure their information and make it available, thus ensuring its integrity," Mr. Thompson said in a statement. Symantec, which has 6,000 employees, is best known for its Norton antivirus software. The new company is expected to have a workforce of about 13,000, and Mr. Thompson told Reuters that no job cuts were expected..." (New York times, Dec 16, 2004).

Sprint

Nextel

2004

35

"Telecommunications giant Sprint Corp. is acquiring Nextel Communications Inc. in a $35 billion deal that would create the nation's third largest wireless telephone service provider. The widely rumored transaction, announced Wednesday, would create a company called Sprint Nextel with about $40 billion in combined yearly revenue and more than 35 million wireless subscribers, trailing only Cingular Wireless and Verizon Wireless. Sprint would get access to Nextel's 15.3 million subscribers, many of whom are business customers, and Nextel would avoid a costly upgrade of its own network. The companies estimated the merger would save them $12 billion in operating costs and network upgrades... The company expects the local business to have roughly 22,000 employees and the combined wireless company to have about 55,000 employees. While these numbers match existing employee totals for both companies, executives said Wednesday jobs would be cut. "At the end of the day, it will be about rationalizing and downsizing," said Gary D. Forsee, Sprint's chairman and chief executive... Sprint currently ranks as the nation's third biggest wireless company as well as the third largest in long-distance service. Nextel ranks fifth in U.S. wireless service. Roughly three-quarters of Sprint's customers are consumers, while roughly three-quarters of Nextel's clients are businesses... After the takeover, the three largest wireless companies will carry about 75 percent of traffic... At the top is Cingular Wireless, a joint venture between BellSouth Corp. and SBC Communications Inc. that recently completed the $41 billion acquisition of AT&T Wireless. No. 2 Verizon Wireless is a joint venture owned by Verizon Communications Inc. and Vodafone, the world's largest mobile-phone operator..." (AP / ABCNews.com, Dec 15, 2004).

The Sprint Corporation's $35 billion acquisition of Nextel Communications was approved Wednesday by shareholders of both companies, advancing a deal that would create the nation's No. 3 wireless company, behind Cingular and Verizon. The new company will have more than 40 million wireless customers and $40 billion in annual revenue. For the deal to be completed, the two companies must now receive regulatory approvals from the Federal Communications Commission and from the Justice Department, as well as from the 18 states where Sprint's local phone division operates..." (AP/New York Times, July 13, 2005).

"Federal regulators signed off yesterday on the Sprint Corporation's acquisition of Nextel Communications, paving the way for an expansion of the nation's third-largest mobile phone company behind Cingular Wireless and Verizon Wireless.
The approvals from the Justice Department and the Federal Communications Commission come eight months after the companies agreed to merge in a deal worth $35 billion. The Sprint-Nextel union also comes less than a year after Cingular merged with AT&T Wireless to create the country's largest carrier, and Alltel bought Western Wireless.
Antitrust regulators at the Justice Department said the combined company would not diminish competition and, unlike the Cingular and Alltel deals, the parties would not have to sell any assets." (New York Times, Aug 2, 2005).

Oracle

PeopleSoft

2004

10.3

"Business software maker PeopleSoft today agreed to a sweetened $10.3 billion takeover offer from rival Oracle, ending one of the longest and most bitter corporate feuds on record... The combination will most likely result in heavy job losses. Oracle has said that it plans to eliminate as many as 6,000 jobs, more than half of those now on PeopleSoft's payroll..." (Los Angeles Times, Dec 13, 2004).

Lenovo Group

IBM personal computer business

2004

1.25

"China's biggest computer maker, Lenovo Group, said Wednesday it has acquired a majority stake in International Business Machines' personal computer business for $1.25 billion, one of the biggest Chinese overseas acquisitions ever. Under the terms of the deal, which ends IBM's long transition from PC pioneer to peripheral player, IBM will keep an 18.5% stake in the company... Lenovo is taking over IBM's desktop PC business, including research and development and manufacturing... The acquisition would make Lenovo the third-largest PC company in the world..." (USAToday, Dec 7, 2004).

Anthem

WellPoint Health Networks

2004

16.5

Anthem Inc. and WellPoint Health Networks Inc. completed their $16.5 billion merger Tuesday, overcoming insurance regulators' misgivings to create the nation's largest health insurance company. The new company, calling itself Wellpoint Inc. and based in Anthem's hometown of Indianapolis, will cover approximately 28 million people in 13 states, about a quarter of whom live in California... Georgia's insurance commissioner withheld his approval until the companies pledged $126.5 million to improve rural health care in that state. WellPoint Health Networks Inc. owned Blue Cross Blue Shield of Georgia. California's insurance commissioner also had rejected the agreement until the companies in early November raised to a total of $265 million their pledge to boost health care in that state... Jerry Flanagan of the Foundation for Taxpayer and Consumer Rights in Los Angeles said the millions of dollars to improve health care in two states was "chump change" compared with executive payouts that were part of the deal and the premium increases customers could face to cover the merger's financing costs..." (AP / ABCNews.com, Nov 30, 2004).

Kmart

Sears, Roebuck

2004

12.3

Would be the 3rd largest US retailer (after Wal-Mart and Home Depot), with 3,450 stores and annual revenues of $55 billion. Kmart emerged from bankruptcy reorganization in May 2003. Edward S. Lampert's ESL Partners owned 53 percent of Kmart and 14.6 percent of Sears when the acquisition was announced in November 2004. Vornado Realty Trust had acquired 4.3 percent of Sears earlier in the month. (New York Times, Nov 16, 2004). Merger completed in March 2005.

LNM

International Steel Group

2004

4.5

"A privately-owned Dutch steelmaker headed by billionaire Lakshmi Mittal is buying U.S.-based International Steel Group Inc. for about $4.5 billion in cash and stock in a deal that would make it one of the largest steel companies in the world. The combined company under the deal announced Monday would have operations in 14 countries on four continents, generate revenue of more than $30 billion this year and employ 165,000 people. The combination comes amid widespread expectations for industry consolidation as worldwide production has outstripped demand. As part of the transaction, privately-owned steelmaker LNM Group would merge its two main divisions, Ispat International NV and LNM Holdings NV, and then take over ISG, which has grown in three years under former investment banker Wilbur Ross into one of the biggest U.S. steel producers by acquiring money-losing mills out of bankruptcy and making them more efficient... Rotterdam-based Ispat will first buy the Antilles-based LNM Holdings NV for $13.3 billion in stock. It then will buy Richfield, Ohio-based ISG, which has scooped up the steel-making assets of fallen giants like LTV, Acme Steel, Bethlehem Steel and Weirton Steel... The combined group will be based in Rotterdam under the name Mittal Steel Company NV, and seek a dual listing on the New York Stock Exchange and Euronext. LNM Group will retain control of Mittal Steel after the deal..." (AP/ABCNews.com, Oct 25, 2004).

Harmony Gold

Gold Fields Ltd

2004

bid

8.2

"Harmony Offers to Buy Gold Fields for $8.2 Billion. Oct. 18 (Bloomberg) -- Harmony Gold Mining Co., the biggest miner of South African gold, made a hostile offer to buy Gold Fields Ltd. for 52.9 billion rand ($8.2 billion) in stock to create the world's largest producer of the precious metal. Gold Fields said the bid will probably fail. A takeover would thwart Gold Fields' plan to buy Canada's Iamgold Corp. in a $2.1 billion stock swap. That deal, announced in August..."

Cendant

Orbitz

2004

1.25

"Travel and real estate heavyweight Cendant Corp... said it will buy travel Web site Orbitz Inc. for about $1.25 billion, making it the No. 2 online travel agency. Cendant, whose wide range of brands includes Avis Rent A Car, Days Inn and Century 21 Real Estate, will pay $27.50 a share for the travel service controlled by the top five U.S. airlines... Cendant said it plans to maintain both the Orbitz and its own CheapTickets leisure travel brands." (MSNBC, Sept 29, 2004).

ConocoPhillips

Lukoil

2004

2

"U.S. oil giant ConocoPhillips... won an auction with a bid of nearly $2 billion for the Russian government's 7.6 percent stake in Russia's Lukoil -- the world's No. 2 oil company by reserves. In the biggest privatization in Russia's history..." (AP/New York Times, Sept 29, 2004).

Sony

Metro-Goldwyn-Mayer

2004

3

Buyers are consortium led by Sony, along with private equity companies Providence Equity Partners Inc., Texas Pacific Group and DLJ Merchant Banking Partners. "The sale would mark the third time billionaire investor Kirk Kerkorian has sold the film studio, once best known for its musical hits like "Singing in the Rain" and "Meet Me in St. Louis." Kerkorian, through his Tracinda Group, owns 74 percent of MGM's outstanding shares. The sale to Sony would net him about $2.1 billion." (ABCNews.com, Sept 13, 2004).

Cerberus Capital Management

LNR Property Corp

2004

1.92

"Private investor Cerberus Capital Management L.P. has agreed to buy real estate investment and management company LNR Property Corp. for $1.92 billion in cash... The Miami Beach, Florida company, which was spun off from home builder Lennar Corp. in 1997, said the new company will be partly owned by LNR's current management, including controlling shareholder, Chairman Stuart Miller." (MSNBC.com, Aug 30, 2004).

LifePoint Hospitals

Province Healthcare

2004

1.1

The new company would have 50 hospitals with 5,285 beds in 19 states and revenue of $1.7 billion.

Mitsubishi Tokyo Financial Group

UFJ Holdings

2004

~ 6

"[A]greed to a merger that would form the world's biggest bank... Financial terms were not disclosed, although Mitsubishi Tokyo previously had offered UFJ as much as 700 billion yen ($6.3 billion)... With combined total assets of about 190 trillion yen ($1.7 trillion), the combination of UFJ and Mitsubishi Tokyo would create the world's largest bank in terms of assets, surpassing U.S.-based Citigroup Inc.'s $1.19 trillion..." (New York Times, Aug 12, 2004).

Gold Fields Ltd

Iamgold

2004

agreement

2.1

Gold Fields Ltd., the world's fourth- biggest gold producer, agreed to buy Iamgold Corp. of Canada in a stock swap valued at about $2.1 billion, fending off a competing bid from Golden Star Resources Ltd... Iamgold and Gold Fields' assets outside southern Africa will be put into a new company, Gold Fields International Ltd. It will produce about 2 million ounces of gold next year, rising to 2.4 million in 2007, and have proven and probable reserves of 14.6 million ounces... Iamgold owns 18.9 percent stakes in the Tarkwa and Damang mines in Ghana, both operated by Gold Fields, and the companies have an exploration venture in Ecuador. Projects excluded from the new company are in areas stretching from South Africa to the Democratic Republic of Congo. Gold Fields' mines in Ghana and Australia account for a third of its annual production of about 4 million ounces, and it plans to develop a gold mine in Peru and a platinum mine in Finland. Iamgold gets most of its production from Mali, where it holds 38 percent of the Sadiola mine and 40 percent of Yatela. Both are operated by AngloGold Ashanti Ltd., based in Johannesburg.... This is the second time Gold Fields has tried to acquire a Canadian company to expand. The South African government in 2000 blocked the proposed purchase of Franco-Nevada Mining Corp., now part of Newmont, the world's biggest gold producer. In South Africa, Gold Fields is compelled by law to sell 26 percent of local assets to black investors by 2014, and the government has proposed charging a royalty on mining revenue starting in 2009..." (Bloomberg.com, Aug 11, 2004).

General Electric

InVision

2004

900 million

Manufacturer of scanning machines for detecting bombs.

Sun Capital Partners

Target's Mervyn's department stores

2004

1.65

The buyers, led by Sun Capital Partners, include Cerberus Capital Management and Lubert-Adler Management. Mervyn's $475 million credit card receivables wold be sold to GE Consumer Finance. Target's Marshall Field's department store group is also for sale. (MSNBC, July 30, 2004).

Santander Central Hispano

Abbey National Plc

2004

15.2

"Banco Santander of Spain agreed today to buy the British mortgage bank Abbey National for £8.5 billion, the largest cross-border banking deal ever in Europe. The $15.6 billion deal would create the world's eighth-largest bank with a market capitalization of about $62 billion and a major presence in Latin America, Spain, England and Northern Ireland. Abbey makes home loans through branches in England and Northern Ireland and is the second-largest mortgage lender in Britain. Santander... is already the largest bank in Spain and Latin America..." (New York times, July 26, 2004).

J.P. Morgan Chase

AMC Entertainment

2004

2

JPMorgan Partners through its Marquee Holdings Inc. subsidiary agreed to acquire a majority stake in AMC Entertainment Inc. for $2 billion and plans to take the movie chain private. AMC has more than 3,500 movie screens in the US, Europe and Asia. JPMorgan Partners also has stakes in Cine-UK, Imax Corp, and Grupo Cinemex SA

Molson

Coors

2004

3.4

"Molson Inc., Canada's biggest beermaker, and No. 3 U.S. brewer Adolph Coors Co. agreed to merge in a $3.4 billion share swap, seeking to end a loss in market share against larger rival Interbrew SA. Molson Chairman Eric H. Molson will serve as board chairman of the combined company and Coors Chief Executive Officer W. Leo Kiely III will be CEO, the companies said in a joint release. Molson shareholders will own 55 percent of the new stock and Coors 45 percent... Molson Coors Brewing.. will have revenue of about $5.9 billion. It would be the world's fifth-largest brewer... Anheuser-Busch has an 8.9 percent share of beer sales worldwide by volume, followed by South Africa's SABMiller Plc at 8.8 percent... Coors is tied for sixth with 2.8 percent." (Bloomberg, July 22, 2004).

Interbrew

AmBev

2004

4.4

Makes Interbrew the world's No. 2 brewer after Anheuser-Busch, which has 8.9 percent of beer sales worldwide and 53 percent in the USA.

Sony Music

Bertelsmann's BMG unit

 

 

In July 2004 the European Union approved the merger of Sony Music and Bertelsmann AG's BMG unit in a deal that would give Sony-BMG, Vivendi Universal, EMI and Warner Music control of about 80 percent of the world music market. The 50-50 joint venture is still undergoing antitrust review in the United States. (AP/CBSNews.com, July 19, 2004).

Bayer

Roche

2004

2.9

Bayer AG will buy Roche's over-the-counter drugs unit for 2.38 billion euros ($2.94 billion)... The deal comes shortly after Bayer's decision to spin off to shareholders its Lanxess chemicals unit, representing a fifth of sales... [The Roche] deal... would create a global consumer healthcare company with sales of 2.4 billion euros, ranking among the world's top three along with Johnson & Johnson and GlaxoSmithKline..." (Reuters/MSNBC.com, July 19, 2004).

Harrah's Entertainment

Caesars Entertainment

2004

5.2

Creates the world's largest casino company, with $8.8 billion in annual revenue, 54 casinos, and 102,000 employees. Caesars (formerly Park Place Entertainment) was spun off from Hilton Hotels in 1998.

Mitsubishi Tokyo Financial Group

UFJ Holdings

 

 

Proposed merger between UFJ Holdings and Mitsubishi Tokyo Financial Group would create a bank with 188.7 trillion yen ($1.7 trillion) of assets, larger than Citigroup.(Bloomberg, July 14, 2004).

Charles River Laboratories International

Inveresk Research Group

2004

1.5

 

R.J. Reynolds Tobacco Holdings

Brown & Williamson Tobacco

 

2.6

US FTC approved June 26; the SEC and Reynolds shareholders must still approve. The merger of Reynolds (No. 2 US tobacco company) and Brown & Williamson (No. 3) would create Reynolds American Inc, which would produce 1 of 3 cigarettes -- still behind No 1 (Philip Morris).

Wachovia

SouthTrust 

2004

14.3

"Wachovia currently has $411 billion in assets, with banking operations in 11 Eastern states and Washington, D.C. SouthTrust has $52.7 billion in assets and does business in nine Southern states. The enlarged Wachovia will have $464 billion in assets and market capitalization of $76 billion, maintaining its position as the nation's fourth largest bank in terms of assets." (Chicago Tribune, June 21, 2004).

Simon Property

 Chelsea Property

2004

3.5

Simon Property Group Inc., the world's largest manager of shopping malls, agreed to buy Chelsea Property Group Inc., the owner of 35 factory-outlet shopping centers in the U.S. and Japan, for about $3.5 billion in cash and stock (Bloomberg, June 21, 2004).

Atmos Energy

TXU Gas

2004

1.9

TXU predecessor Texas Utilities merged with natural gas utility ENSERCH in 1997. ENSERCH's Lone Star Gas was renamed TXU Gas.

MGM Mirage

Mandalay Resort Group

2004

4.8

"The deal would create a company with more than $6 billion a year in revenues and 28 casinos in Nevada, Mississippi, Michigan and Illinois." (AP, Chicago Tribune, June 16, 2004).

Tellabs Inc

AFC Inc

2004

1.9

 

Sanofi-Synthélabo

Aventis

2004

65

 

Marathon Oil

Ashland

2004

2.9

Marathon Oil agreed to acquire Ashland Inc.'s 38-percent stake in their refining and marketing joint venture, Marathon Ashland Petroleum LLC. Marathon, which owns the other 62 percent of the venture, would pay about $315 million in common stock and about $794 million in cash and accounts receivables from the venture and would assume $1.9 billion in debts and environmental liabilities with a present value of $15 million. (CNNMoney.com. March 19, 2004).

Fisher Scientific International

Apogent Technologies

2004

2.7

"Fisher has announced $5 billion in acquisitions in six months as the company adds products that biotechnology and pharmaceutical companies use to make medicines based on human proteins. Fisher last month agreed to buy Oxoid Group Holdings Ltd. and Dharmacon Inc., both makers of products used in microbiology research." (Bloomberg, March 17, 2004).

Cingular Wireless

AT&T Wireless

2004

41

"The fanfare surrounding [the October 2004] final government approval of Cingular Wireless L.L.C.'s $41 billion acquisition of AT&T Wireless Services Inc. proved to be short-lived, with Moody's Investors Service downgrading long-term debt ratings of the new No. 1 mobile-phone carrier and its two Bell telephone parent companies. Moody's-pointing to wireline competitive pressures, network upgrade costs and potential wireless merger snags-said the ratings outlook is negative for SBC Communications Inc., 60 percent owner of Cingular, and BellSouth Corp., which holds a 40-percent stake in the Atlanta-based mobile-phone operator. Moody's said the ratings outlook for Cingular and AT&T Wireless is stable. The "integration of AT&T Wireless into Cingular may prove more difficult, expensive and time consuming than expected, and when coupled with the service requirements associated with Cingular's assumption of AT&T Wireless' debt, will lead to lower earnings and distributions to SBC and BellSouth than currently anticipated by the companies," Moody's stated." (Merger fanfare short-lived with downgrades. RCRNews.com, Oct 27, 2004).

Juniper Networks

NetScreen

2004

4

 

JP Morgan

Banc One

2004

58

"Together, J.P. Morgan Chase and Bank One employ about 175,000 workers. The companies say they think they can eliminate 10,000 positions by merging." (Chicago Tribune, Jan 16, 2004).

Completed July 1, 2004, forming the #2 US bank with $1 trillion assets.

"J.P. Morgan Chase & Co. expects to save $3 billion in its merger with Bank One Corp., up from the earlier estimate of $2.2 billion. But chief financial officer Dina Dublon told a news conference that some 12,000 jobs were expected to be eliminated, up from the original projection of 10,000." (Chicago Tribune, July 21, 2004).

St Paul

Travelers Property Casualty

2004

17

 

Bain Capital, Carlyle Group and Spectrum Equity Investors

Loews Cineplex

2004

1.5

Acquired from Onex and Oaktree Capital Management (AP / Seattle Times, June 22, 2005).

Koch Industries

Invista

2004

4.2

Acquired fromDuPont.

Bank of Amercia

FleetBoston

2003

48

"Bank of America Corp. plans to cut as many as 13,000 jobs as it completes its $47 billion acquisition of FleetBoston Financial... The cuts would come through layoffs and attrition from the operations of both banks and amount to about 7 percent of their combined work force of 181,000... [CEO] Ken Lewis... expects to achieve about $1.6 billion in cost savings by the end of 2005..." (MSNBC, March 17, 2004).

AIG

GE Edison Life Insurance

2003

2

 

Fed Ex

Kinko's

2003

2

 

IDEC Pharmaceuticals

Biogen

2003

6

 

Oracle

PeopleSoft

2003

6

 

PMI Group

Financial Guaranty Insurance Co

2003

2

 

Citigroup

Golden State Bancorp

2002

4.9

In 2004, U.S regulators accused four people of insider trading violations in connection with the 2002 purchase (Los Angeles Times, Sept 29, 2004).

Coors

Interbrew's Bass Brewers

2002

1.7

 

L-3 Communications

military unit of Raytheon

2002

1.3

 

Comcast

AT&T cable division

2002

29

Makes Comcast the nation's largest cable operator with about 22 million subscribers, nearly twice as many as second-place AOL Time Warner Inc. In Feb. 2004 Comcast proposed to buy Walt Disney Co., owner of ABC & ESPN, for $66 billion.

Blackstone Group

ONDEO Nalco

2002

4

 

Caremark Rx

AdvancePCS

2002

5

 

General Electric

commercial finance business of Aegon NV

2002

5.4

 

Liberty Media

QVC Inc

2002

8

 

Manulife

John Hancock Financial Services

2002

11

 

American International Group

American General Corp

2001

23

 

First Union Corp

Wachovia

2001

13

 

Citigroup

Grupo Financiero Banamex Accival SA de CV (Banamex)

2001

13

 

Tyco International

CIT Group

2001

10

 

Johnson & Johnson

ALZA Corp

2001

12

 

Silver Lake

Seagate

2000

2

 

Kirk Kerkorian

Mirage Resorts

2000

4.4

 

Chase Manhattan

J.P. Morgan

2000

33

 

General Electric

Honeywell

2000

44

 

Pfizer

Warner-Lambert

2000

117

 

Vodafone

Mannesmann

2000

180

 

Clear Channel

Jacor

1999

6

 

Exxon

Mobil

1999

165

 Estimated 9,000 jobs lost.

Ford

Volvo

1999

6

 

SBC

Ameritech

1999

70

Two regional Bell merged to form the largest local phone company, controlling 57 million (one-third) of the local phone lines in the U.S., in 13 states.

Viacom

CBS

1999

35

 

Vodafone

Airtouch

1999

63

 

MCI WorldCom

Sprint

1999

116

 

Qwest

US West

1999

35

 

American Home Products

Monsanto

1998

 

 

AOL America Online

Time Warner

1998

180

Time bought Warner in 1989 ($15 billion) and Turner Broadcasting in 1996 ($9 billion).

AT&T

TCI Tele-Communications

1998

53

 

BankAmerica

NationsBank

1998

57

 Estimated 8,000 lost.

Bay Networks

Nortel

1998

9

 

Bell Atlantic

GTE

1998

 

 

British Petroleum

Amoco

1998

 

 Estimated 6,000 jobs lost.

Citicorp

Travelers Insurance

1998

73

 10,400 jobs cut end of 1998

Norwest

Wells Fargo

1998

 

 

WorldCom

MCI

1998

37

 

Walt Disney

Capital Cities/ABC

1996

18

 

Viacom

Paramount

1994

9

 

Viacom

Blockbuster

1994

8

 

Matsushita Electric

MCA

1991

8

 

BP Amoco

ARCO

 

 

 

Cap Gemini

Ernst & Young's Global IT Consulting Businesses of

 

11

 

Cisco Systems

ArrowPoint Communications'

 

5

 

Cisco Systems

Pirelli's optical systems

 

2

 

Computer Associates International

Sterling Software

 

4

 

Corning

Pirelli's optical components and devices business

 

4

 

Daimler Benz

Chrysler

 

40

 

E-TEK Dynamics

JDS Uniphase

 

15

 

Exodus Communications

Global Crossing 's Global Center division

 

6

 

i2 Technologies

Aspect Development

 

9

 

Kana Communications

Silknet Software

 

4

 

Marvell Technology Group

Galileo Technology

 

3

 

Redback Networks

Siara Systems

 

4

 

SBC Communications

Sterling Commerce

 

4

 

Sema Group

LHS Group

 

5

 

Veritas

Seagate Technology

 

20

 

Vodafone

British Telecom's Japanese and Spanish assets

 

7

 

Wells Fargo

First Interstate

 

 

 

 

Primer on Corporate Power

Endgame

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