bloggingbuyouts

BCE Inc. (NYSE: BCE), Canada's largest telecommunications company, announced on June 30, 2007, that it agreed to be acquired by an investment arm of Ontario Teachers' Pension Plan, Providence Equity Partners and Madison Dearborn Partners for an announced deal price of $42.75 per share. The Federal Communications Commissions cleared the deal on Dec. 20.

RBC Capital says, "Financial results were in-line with expectations . . . there was nothing in the release that should worry investors in the context of the pending privatization." BCE June option implied volatility of 53 is above its 26-week average of 34 according to Track Data, suggesting larger movement.

M&A Update is provided by Stock Specialist Paul Foster of theflyonthewall.com.

ING Group (NYSE: ING) Chief Executive Michel Tilmant said at an investor day presentation Wednesday that the company has considered large acquisition opportunities recently but didn't pursue them because they didn't match its financial objective.

ING, a provider of insurance, banking and asset management services, closed at $39.36. ING over all option implied volatility of 29 is below its 26-week average of 34 according to Track Data, suggesting decreasing risk.

Option Update is provided by Stock Specialist Paul Foster of theflyonthewall.com.

Trane (NYSE: TT) is recently trading down to $45 range. Ingersoll-Rand (NYSE: IR) announced the purchase of Trane for $36.50 per share in cash and 0.23 shares of IR per share of TT on Dec. 17, 2007. The deal is expected to close in the second quarter.

The premium spread stays tight at approximately 2%. TT call option volume of 94 contracts compares to put volume of 2,225 contracts. TT April and May option implied volatility of 37 is above its 26-week average of 17 according to Track Data, suggesting large price movement.

M&A Update is provided by Stock Specialist Paul Foster of theflyonthewall.com.

Alliance Data Systems (NYSE: ADS) is recently at $39.00 in pre-open trading, below its close of $65.60. ADS says affiliates of The Blackstone Group (NYSE: BX) have informed ADS that they do not anticipate closing the merger due to problems obtaining approvals from the Office of the Comptroller of the Currency (OCC).

ADS announced on May 17, 2007 it would be acquired for $81.75 in cash ($7.8 billion) by BX. ADS is expected to announce Q4 EPS on January 30. ADS February option implied volatility of 105 is above its 26-week average of 41 according to Track Data, suggesting larger risk.

M&A Update is provided by Stock Specialist Paul Foster of theflyonthewall.com

Dillards(NYSE:DDS) is recently up $1.40 to $22.60 on renewed & unconfirmed asset sale chatter. William Dillard is Chairman of the Board owns approximately 24.4% of the outstanding voting shares of DDS. William Dillard the 2nd is the CEO. Alex Dillard is President. Mike Dillard is executive Vice President. DDS call option volume of 9,976 contracts compares to put volume of 1,482 contracts. DDS November option implied volatility of 64 is above its 26-week average of 49 according to Track Data, indicating larger risks.

Daily M&A Update is provided by Stock Specialist Paul Foster of theflyonthewall.com.

Eastman Kodak (NYSE: EK) is recently up $1.30 to $28.34 after the Financial Times reported Hewlett Packard (NYSE: HPQ) may take another look at EK as an acquisition target. EK has been frequently mentioned as a takeover target over the last four years. EK is expected to report EPS on 11/1. EK call option volume of 22,749 contracts compares to put volume of 11,136 contracts. EK October 30 straddle is at $2.15. EK November call option implied volatility is at 43, puts are at 49, above its 26-week average of 35 according to Track Data, suggesting larger risk.

Dow Chemical (NYSE: DOW), a diversified chemical company, is recently up $0.67 to $45.46 on unconfirmed reports DOW canceled an analyst meeting, renewing buyout chatter. DOW is expected to report EPS on 10/25. DOW call option volume of 16,275 contracts compares to put volume of 3,026 contracts. DOW November option implied volatility of 28 is above its 26-week average of 25 according to Track Data, suggesting larger price risk.

Daily M&A Update is provided by Stock Specialist Paul Foster of theflyonthewall.com.

MGM Mirage(NYSE:MGM) is recently up $1.78 to $87.38. Dubai World, a holding company for the Persian Gulf state, announced on 8/22/07 it will pay $2.7 billion to acquire a stake in MGM City Center, a 76-acre Las Vegas development. Dubai World will also buy 14 million shares from MGM for $84 a share and 14 million from investors. Unconfirmed chatter is circulating Dubai World will raise its tender bid.

Penn National Gaming(NYSEPENN), a diversified, multi-jurisdictional owner and operator of gaming properties, agreed to be acquired on 6/15/07 by certain funds managed by affiliates of Fortress Investment(NYSE:FIG) and Centerbridge Partners for $67 dollars a share. The deal is expected to close in mid-2008. PENN is recently trading at $58.26.

Daily M&A Update is provided by Stock Specialist Paul Foster of theflyonthewall.com