By Julie Johnsson | Two
years ago, Continental Airlines’ board ended merger talks with United
Airlines after the Chicago-based carrier reported unexpectedly poor
quarterly results. But United’s financial strength is no longer an issue as the carriers
redouble their efforts to complete a deal to form the world’s largest
airline.
A source close to the talks told the Tribune that the carriers remain
on track to wrap up a deal during the next few days and that price is the
only major issue yet to be resolved.
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United, Continental on track for a deal this week
Push on to keep Continental HQ in Texas
From the Houston-Chronicle | U.S. Congresswoman Sheila Jackson Lee (D.-Houston) called on Texas to develop incentives that would keep Continental from merging with United Airlines or encourage a merged United-Continental to be headquartered there, at a press conference this morning outside Continental’s downtown Houston headquarters.
Get the full story: chron.com
Sun-Times Media sells North Shore magazine
By Phil Rosenthal | Sun-Times Media Group’s North Shore magazine has been acquired by Make It Better, a Web site and magazine founded by Susan B. Noyes, a former labor lawyer with Sidley & Austin, New Trier Township High School board member and North Shore columnist.
Read the full story: Tower Ticker
GTCR to buy Protection One in $828M deal
The members of private equity firm GTCR, from left to right: Collin Roche, Philip Canfield and David Donnini, on December 15, 2009. (Terrence Antonio James/Chicago Tribune.)
By Becky Yerak | GTCR,
one of Chicago’s biggest private equity firms, plans to buy publicly
traded Protection One for $828 million in another sign that the credit
markets for buyout firms continue to thaw.
It also means that GTCR, which as of late 2009 had only about 60
percent of its $2.75 billion ninth fund committed, will have to hit the
fundraising market soon. The firm also recently announced two smaller
deals.
Price snags United, Continental talks
Tribune staff report | Fast-moving merger talks between United and Continental Airlines hit a snag over the weekend as the two companies disagreed how to value the deal, according to a report in the New York Times.
Talks hit an impasse over the stock price used to compute the
exchange ratio for the all-stock transaction, the New York Times
reported. Continental wants United shares to be valued prior to April
7, when United’s stock soared 18 percent on reports that it was in
talks with US Airways.
Shares up as Sauer-Danfoss turns thumbs down on bid
Tribune staff | Shares of Sauer-Danfoss Inc. were up nearly 14
percent, to $17.74, in late afternoon trading Friday after its board
rejected a sweetened offer of $14 a share from Danfoss Acquistion Inc.
It also rescinded a recommendation that shareholders accept an earlier
offer of $13.25 a share from the subsidiary of the company’s majority
stockholder, Danfoss A/S.
The board of the Ames, Iowa-based hydraulic equipment maker cited
improved projections for the rest of this year, 2011 and 2012 in making
its latest recommendation.
United-Continental would make Chicago home
A United Airlines check-in area and a Continental Airlines kiosk at O’Hare International Airport. (AP Photo/Nam Y. Huh)
By Julie Johnsson | United Airlines’ merger talks with Continental Airlines are progressing
rapidly, and many of the key issues involved with melding the carriers have been resolved, said a person close to the talks.
Telephone calls are flying between carriers’ management teams and their directors, and a deal could be completed as soon as next week.
US Airways ends merger talks with United
By Julie Johnsson
| US Airways is no longer interested in merging with United Airlines, and
it wants the world to know.
In a highly unusual move, US Airways announced Thursday that its board
had decided to end talks with the Chicago-based carrier. The statement
by Doug Parker, US Airways’ chairman and CEO, signaled the anger and
frustration that executives of the Phoenix-based carrier felt when
United put their discussions on hold last week, days ahead of a planned
merger announcement, to focus on a potential deal with Continental
Airlines, say people close to the carrier.
United, Continental swapping financial details
Associated Press | United Airlines and Continental Airlines are
in the early stages of exchanging financial information that could lead
to a deal to combine and create the world’s biggest airline, people
briefed on the talks said Tuesday. United had been talking with US
Airways about a combination, but speculation has increased that United
is more interested in the larger Continental.
The exchange of information between United and Continental was
confirmed Tuesday by two people who were briefed on the talks. They
spoke on condition of anonymity because they were not authorized to
publicly discuss the negotiations.
Brookfield won’t raise General Growth offer
Dow Jones Newswire-Wall Street Journal | Canadian property
investor Brookfield Asset Management Inc. has informed General Growth
Properties Inc. that it won’t modify its offer to provide $2.6 billion
of capital to the bankrupt mall owner in light of a competing proposal
from Simon Property Group Inc.
In a letter sent Monday to top General Growth executives, Brookfield
Chief Executive J. Bruce Flatt took issue with several aspects of
Simon’s proposal to take an ownership stake in General Growth, noting
that such an arrangement “will inevitably create uncertainty as to
whether GGP will remain an independent company.” He dismissed Simon’s
proposal as “a material ongoing impediment to the prosperity of the
company.”
UAL puts Continental talks on front burner
From Bloomberg | United Airlines parents UAL Corp. says it has tabled merger talks with US Airways to pursue its bid for Continental. “Given the right terms, United would probably prefer to partner with Continental,” said Matthew Jacob, a New York-based analyst at Majestic Research LLC who doesn’t rate either airline. “Having it be made public that US Airways and United were in talks probably spurred Continental into action.”
Read the full story: bloomberg.com.
Hospira to buy Javelin Pharmaceuticals for $145M
From Reuters | Hospira Inc. said Monday that it will buy specialty drugmaker Javelin Pharmaceuticals Inc. for $145 million in cash. The deal will expand the medical suppliers’ pain management offerings.
Read the full story: Reuters.com
Diamond Bank acquisition deal falls through
By Becky Yerak | A deal by Chicago-based Diamond Bank to acquire $252.6 million-asset Downers Grove National Bank has fallen through.
Diamond, which has $305.9 million in assets, has withdrawn its application with banking regulators to acquire Downers Grove, which has branches in Downers Grove, Westmont and Woodridge.
Some expect Radio Shack to be sold
From the New York Post | Signs are emerging that RadioShack may be preparing to sell itself, with several private equity firms and retailer Best Buy among those interested. A RadioShack spokesman didn’t respond to a request for comment. But sources said JPMorgan Chase is leading the sale process.
Get the full story: nypost.com
Cadbury deal will help Kraft expand in India
From the Wall Street Journal | In an interview, Kraft Foods CEO Irene Rosenberg said Kraft’s acquisition of Cadbury will help the company expand U.S. distribution channels in convenience stores and help it expand overseas, particularly in India and Mexico.
Get the full story: wsj.com (subscription required)
