Category: Mergers & Acquisitions

United Technologies [UTX] Considers Buying Rockwell Automation [ROK]

If United Technologies were to make an offer for Rockwell Automation it should be in the range of $165 to $170 / share or around 1.4 shares of United Technologies for every share of Rockwell Automation. It will be interesting to see if the offer is close to these values. An offer higher than the range proposed would represent an offer that is too expensive.

Merger Consideration Brief (3rd Quarter 2017)

The MAB Factor is based on a simple premise; if companies have extremely high market relative valuation scores respective to their sector counterparts, they have a higher probability to be seeking acquisitions (Hunters). They will take advantage of the premium within their stock price and acquire other less relatively valued companies. Companies with valuations that are lower relative to their sector counterparts have a higher probability of being acquired (Hunted).

Amazon to Acquire Whole Foods – Why?

Amazon is acquiring Whole Foods for $42/share, a price that reflects 132.6% Fair Value (Fv). Whole Foods is currently trading at 104.4% Fv. Acquisition of a grocery makes sense, but not Whole Foods.

Coach to Acquire Kate Spade – Good for Coach

Coach [COH] is acquiring Kate Spade [KATE] at a price that reflects 96.3% Fair Value (Fv). KATE is currently trading at 88.3% Fv.

Merger Consideration Brief (2nd Quarter 2017)

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