THESE 4 Stocks Have Received Premium Price Takeover Bids Amid Global M&A Slowdown April 12, 2022 - Baystreet.ca Under the current state of geopolitical uncertainty has dropped Global M&A markets to pre-pandemic levels. Despite this slowdown’s biting into the profits of large global banks, there are still some significant takeover bids on the table which involve premium prices. Here now are FOUR companies who have recently received premium takeover bids despite the slodown: CDK Global, Inc. (NASDAQ:CDK), Telecom Italia S.p.A. (OTC:TIAAY), Tufin Software Technologies Ltd. (NYSE:TUFN), and Spirit Airlines, Inc. (NYSE:SAVE). CDK Global, Inc. (NASDAQ:CDK) Shares of CDK Global, Inc. (NASDAQ:CDK) jumped more than 10% after the software developer and technology provider for auto dealers agreed to be acquired for $54.87 per share in a transaction valued at approximately $8.3 billion by Brookfield Asset Management Inc. (NYSE:BAM) and its institutional partners. With annual revenue of $1.7 billion, CDK Global is a leading provider of technology services and software solutions that help automotive dealers and manufacturers run their businesses more efficiently. The deal came with a 12% premium over the previous day’s closing price, and also a 30% premium over CDK’s closing price on February 18, 2022 when it was first reported the company was exploring a sale. “CDK Global is a high-quality and highly cash generative technology services and software business with a leading market position and strong fundamentals,” said Doug Bayerd, Managing Director, Brookfield Business Partners. “We are excited to grow our technology footprint with the acquisition of CDK Global, and we look forward to leveraging our operating capabilities to build on the Company’s track record of providing best-in-class customer service and innovation.” Telecom Italia S.p.A. (OTC:TIAAY) Italy’s national phone company, Telecom Italia S.p.A. (OTC:TIAAY) recently turned down a $36-billion takeover offer valued at a near 50% premium from bidders KKR & Co. “Given that KKR did not confirm its Expression of Interest, including the price therein previously indicated, the Board unanimously decided that it would not be appropriate at this time to grant KKR access to due diligence,” said Telecom Italia. “Should KKR submit a deliverable, complete and attractive offer (including, amongst other things, a price per TIM ordinary / saving share), TIM Board of Directors would be open to reconsidering its decision in the interest of all shareholders.” The non-binding November proposal could’ve been seen as a slam dunk with its premium price and low acceptance threshold. However, Telecom Italia sprang into action, by replacing its CEO and embarking on a new strategy to split in two—which apparently was what KKR had in mind in the first place. During the saga, the average analyst price target for Telecom Italia has fallen 14%. Earlier in March 2022, Telecom Italia’s Board of Directors said it remains committed to its own reorganization plan, which hinges on an eventual merger with smaller state-backed rival Open Fiber SpA. Tufin Software Technologies Ltd. (NYSE:TUFN) Shares of Tufin Software Technologies Ltd. (NYSE:TUFN) soared after it agreed to a takeover offer from Turn/River Capital, in an all-cash transaction that came with a 44% premium. Shareholders of Tufin are set to receive $13 per share, which values the company at approximately $570 million. Upon completion of the transaction, Tufin will become a private company partnered with Turn/River Capital. "This deal represents an important milestone for Tufin, and as a private company, we will have the opportunity to accelerate our growth through investments in our technology, people, and go-to-market," said Ruvi Kitov, Chairman, CEO, and Co-Founder of Tufin. "The team at Turn/River specializes in helping software companies like Tufin, and with their partnership and expertise I am confident that we will be able to achieve our long-term goals faster." Spirit Airlines, Inc. (NYSE:SAVE) After a $3.6 billion all-cash offer came in from another carrier, JetBlue caused shares of Spirit to surge more than 22% soon after the offer broke. What happens next hinges on how Spirit handles the situation. While the bid from JetBlue was deemed unsolicited, Spirit has committed to meet with its potential buyers and to weigh its options regarding Frontier—as Frontier was in line for a potential merger with Spirit Airlines as recently as February 2022. “Spirit intends to engage in discussions with JetBlue with respect to JetBlue’s proposal, in accordance with the terms of the company’s merger agreement with Frontier,” said Spirit in a statement. “Spirit remains bound by the terms of the merger agreement with Frontier, and Spirit's Board has not determined that JetBlue's proposal in fact constitutes a Superior Proposal as defined in the merger agreement with Frontier.” The value of Frontier’s offer has fluctuated with its stock price, but it was worth about a third less than the JetBlue bid using April 4, 2022 share prices. Combining Spirit and Frontier would be worth an estimated $6.6 billion, while JetBlue's potential merge would be worth $7.3 billion.
THESE 4 Stocks Have Received Premium Price Takeover Bids Amid Global M&A Slowdown April 12, 2022 - Baystreet.ca Under the current state of geopolitical uncertainty has dropped Global M&A markets to pre-pandemic levels. Despite this slowdown’s biting into the profits of large global banks, there are still some significant takeover bids on the table which involve premium prices. Here now are FOUR companies who have recently received premium takeover bids despite the slodown: CDK Global, Inc. (NASDAQ:CDK), Telecom Italia S.p.A. (OTC:TIAAY), Tufin Software Technologies Ltd. (NYSE:TUFN), and Spirit Airlines, Inc. (NYSE:SAVE). CDK Global, Inc. (NASDAQ:CDK) Shares of CDK Global, Inc. (NASDAQ:CDK) jumped more than 10% after the software developer and technology provider for auto dealers agreed to be acquired for $54.87 per share in a transaction valued at approximately $8.3 billion by Brookfield Asset Management Inc. (NYSE:BAM) and its institutional partners. With annual revenue of $1.7 billion, CDK Global is a leading provider of technology services and software solutions that help automotive dealers and manufacturers run their businesses more efficiently. The deal came with a 12% premium over the previous day’s closing price, and also a 30% premium over CDK’s closing price on February 18, 2022 when it was first reported the company was exploring a sale. “CDK Global is a high-quality and highly cash generative technology services and software business with a leading market position and strong fundamentals,” said Doug Bayerd, Managing Director, Brookfield Business Partners. “We are excited to grow our technology footprint with the acquisition of CDK Global, and we look forward to leveraging our operating capabilities to build on the Company’s track record of providing best-in-class customer service and innovation.” Telecom Italia S.p.A. (OTC:TIAAY) Italy’s national phone company, Telecom Italia S.p.A. (OTC:TIAAY) recently turned down a $36-billion takeover offer valued at a near 50% premium from bidders KKR & Co. “Given that KKR did not confirm its Expression of Interest, including the price therein previously indicated, the Board unanimously decided that it would not be appropriate at this time to grant KKR access to due diligence,” said Telecom Italia. “Should KKR submit a deliverable, complete and attractive offer (including, amongst other things, a price per TIM ordinary / saving share), TIM Board of Directors would be open to reconsidering its decision in the interest of all shareholders.” The non-binding November proposal could’ve been seen as a slam dunk with its premium price and low acceptance threshold. However, Telecom Italia sprang into action, by replacing its CEO and embarking on a new strategy to split in two—which apparently was what KKR had in mind in the first place. During the saga, the average analyst price target for Telecom Italia has fallen 14%. Earlier in March 2022, Telecom Italia’s Board of Directors said it remains committed to its own reorganization plan, which hinges on an eventual merger with smaller state-backed rival Open Fiber SpA. Tufin Software Technologies Ltd. (NYSE:TUFN) Shares of Tufin Software Technologies Ltd. (NYSE:TUFN) soared after it agreed to a takeover offer from Turn/River Capital, in an all-cash transaction that came with a 44% premium. Shareholders of Tufin are set to receive $13 per share, which values the company at approximately $570 million. Upon completion of the transaction, Tufin will become a private company partnered with Turn/River Capital. "This deal represents an important milestone for Tufin, and as a private company, we will have the opportunity to accelerate our growth through investments in our technology, people, and go-to-market," said Ruvi Kitov, Chairman, CEO, and Co-Founder of Tufin. "The team at Turn/River specializes in helping software companies like Tufin, and with their partnership and expertise I am confident that we will be able to achieve our long-term goals faster." Spirit Airlines, Inc. (NYSE:SAVE) After a $3.6 billion all-cash offer came in from another carrier, JetBlue caused shares of Spirit to surge more than 22% soon after the offer broke. What happens next hinges on how Spirit handles the situation. While the bid from JetBlue was deemed unsolicited, Spirit has committed to meet with its potential buyers and to weigh its options regarding Frontier—as Frontier was in line for a potential merger with Spirit Airlines as recently as February 2022. “Spirit intends to engage in discussions with JetBlue with respect to JetBlue’s proposal, in accordance with the terms of the company’s merger agreement with Frontier,” said Spirit in a statement. “Spirit remains bound by the terms of the merger agreement with Frontier, and Spirit's Board has not determined that JetBlue's proposal in fact constitutes a Superior Proposal as defined in the merger agreement with Frontier.” The value of Frontier’s offer has fluctuated with its stock price, but it was worth about a third less than the JetBlue bid using April 4, 2022 share prices. Combining Spirit and Frontier would be worth an estimated $6.6 billion, while JetBlue's potential merge would be worth $7.3 billion.