M&A Action Heats Up as Christmas Nears

December 20, 2016

Icahn Enterprises has decided to sell its indirectly wholly-owned subsidiary American Railcar Leasing to SMBC Rail Services, which is owned by Sumitomo Mitsui Banking Corporation, for $2.778 billion. Join the Sentifi financial crowd to discuss how the deal will impact both parties.

sentifi top attentions december 20

American Railcar: Sold to SMBC

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If certain conditions are satisfied, SMBC Rail will have an option to buy about 4,800 additional railcars for $586 million, which would bring the total sale price to $3.364 billion. Carl C. Icahn, Chairman of Icahn Enterprises, said: “I have been in the railcar business for over 30 years. During that time we have built one of the leading railcar fleets in the world. …  I am very proud of the business we have built at ARL and am pleased that SMBC Rail Services also sees the tremendous value in this business.”

Fairfax Financial: To buy Allied World

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The insurance company continues to expand its reach with the latest $4.9 billion acquisition of Allied World Assurance Co. This is by far the largest acquisition the company has seen under the reign of CEO Prem Watsa. The acquisition is a bet on economic growth under U.S. President-elect Donald Trump. The combined companies are expected to have an asset portfolio of $39 billion.

Clovis Oncology: Shares jump 8.82 percent thanks to FDA approval

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The financial crowd celebrated when the company’s advanced ovarian cancer drug Rubraca got the early approval from the U.S. Food and Drug Administration. The company was also exploring the possibility of using the drug to fight other diseases, including prostate, breast and gastroesophageal cancers.

IMF: Chief Christine Lagarge is convicted over payout

A French court has ruled that the IMF Chief Christine Lagarde is guilty of negligence for awarding $429 million to businessman Bernard Tapie for the disputed sale of a firm during her term as the French finance minister in 2008. Upon the ruling, the IMF board said it retained “full confidence” in her leadership. The aforementioned French court has yet to hand down any punishment.

Loxo Oncology Inc.: Receives clearance from the FDA for a plan for cancer pill

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The company saw its shares jump 25.83 percent following the clearance from the U.S. Food and Drug Administration for a plan that could lead to the accelerated approval of its precision cancer pill. According to its plan, if its phase II “basket” study of larotrectinib is successful, the company plans to file for approval at the end of 2017 or early 2018.

Vislink: To be acquired by xG Technology

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Vislink shares traded up 4.95 percent after xG Technology announced it has signed the final definitive business purchase agreement to acquire the company. The acquisition will give xG Technology a market-leading position in delivering end-to-end video capture/transmit/receive solutions to broadcast, sports and entertainment, among others.

Thunder Software Technology: Acquires Finnish automotive software comoany for $67 million

Chinese mobile operating systems company Thunder Software Technology has agreed to acquire Rightware, whose “Kanzi” software is used by more than 20 global automotive brands for user interfaces such as digital dashboards and entertainment systems. This is the very first overseas acquisition for Thunder. Rightware will remain as an independent company.

Zee Learn & Tree House Educaiton: Zee Learn plans to take legal recourse for failed deal with Tree House Education

Zee Learn’s decision to call off the merger with Tree House due to bad press has not only pushed Tree House shares down 20 percent but also serves as the start of something much worse. Zee Learn announced it would look into legal action to seek damages from the failed deal.

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