Tag: acquisition

Goldcorp (NYSE:GG) Growing Organically and by Acquisition

Goldcorp (NYSE:GG) has lagged the surge in gold prices in 2010, up only about 7 percent, while gold prices have soared by 17 percent so far.A couple of concerns are missing their numbers last quarter, falling 2 cents a share below earnings expectations of 29 cents a share. The other is the acquisition of Andean Resources for $3.4 billion, which came with a 35 percent premium.In an interview with

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Stillwater Acquires Marathon PGM for $118 Million

Filed in copper, Gold, GOld juniors, lead, platinum, Rio Tinto, shares, ubs, upgrade by on September 20, 2010 0 Comments
Stillwater Acquires Marathon PGM for $118 Million

Shares of Canadian platinum and palladium exploration company Marathon PGM (TSX: MAR ) nearly doubled after an acquisition offer. Stillwater Mining (NYSE: SWC ) will acquire all of Marathon’s outstanding shares in a cash and stock deal worth $118 million as the company seeks to increase its platinum and palladium resources. Stillwater, one of only two major North American platinum and palladium producers, will pay $1.78 plus 0.112 shares of Stillwater’s common stock for each outstanding share of Marathon. The deal values Marathon at $3.55 per share. Shares of Marathon gained 92% to $3.62 following the announcement of the acquisition, suggesting some investors feel the offer is too low and could attract a rival bid. The deal has been unanimously approved by the boards of directors of both companies and is expected to be completed by the end of November 2010. Stillwater will gain control of all of Marathon’s properties, including a nickel-copper-platinum-palladium project near Thunder Bay, Ontario, which is expected to begin production within three years. The company aims to increase its platinum and palladium production by 40% as a result of the acquisition. Under the deal, Marathon PGM will also spinoff shares its subsidiary, Marathon Gold Corp., to Marathon PGM shareholders before the exchange with Stillwater. Commenting on the acquisition, Stillwater’s Chairman and Chief Executive Officer, Frank McAllister, noted: This transaction offers significant value and upside potential to Stillwater shareholders, and as the Marathon PGM/Copper project is one of the few near-term PGM development opportunities on this continent, it solidifies our position as North America’s leading PGM producer. We have long recognized that geographic and commodity diversification is an important engine of growth for our company, and we are delighted to have reached an agreement on a transformative transaction that fits perfectly into our long-term strategy to create value for shareholders. Our post-acquisition PGM reserve base and production scale should increase significantly across mines in the US and Canada and will position the Company to capitalize on robust PGM fundamentals and the favorable pricing outlook. Modern mineral exploration in the Thunder Bay region has led to the discovery several new high-grade precious and base metal deposits in the past few years. Today, the area is home to resources of over: 16 billion pounds of nickel , 501 billion pounds of copper , 33 million ounces of platinum , and 37 million ounces of palladium . In total, these resources would be worth nearl y $1.9 trillion out of the ground. The entire Thunder Bay region now has significant potential to become a major North American nickel-copper-platinum-palladium camp. Other major players that have projects in the region other than Marathon PGM include Rio Tinto (NYSE: RTP ) and North …

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Eldorado (NYSE:EGO) Closes Acquisition of Xiaoshiren Central License

Filed in eldorado-gold, Gold, Gold Prices, White Mountain by on September 16, 2010 0 Comments

Eldorado Gold Corporation (NYSE:EGO) announced they have closed the acquisition of the Xiaoshiren Central exploration license, located about 20 kilometers southeast of their White Mountain gold mine in Jilin Province, China. The Xiaoshiren Central EL was acquired from Fushun Hanking Mining Ltd, and is now 100 percent owned by the White Mountain Joint Venture, of which Eldorado holds a 95 percent

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Goldcorp (NYSE:GG) Agrees to Terrane Metals (CDNX:TRX.V) Deal

Goldcorp (NYSE:GG) (TSE:G) said Thursday that it wouldn’t oppose the acquisition of all outstanding common and preferred shares of Terrane Metals Corp. (NYSE:TC) by Thompson Creek Metals (NYSE:TC). The stake held by Goldcorp in Terrane outstanding shares is 58 percent; owning 240 million preferred shares and 27.3 million common shares in the company. Once the deal is completed, Goldcorp will

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Ingram Micro Acquires Asiasoft – Analyst Blog

Filed in Gold Investing, lead, silver by on July 8, 2010 0 Comments

Ingram Micro. (IM), the leading distributor of Information Technology (IT) products and supply chain solutions recently completed the acquisition of Asiasoft Hong Kong Limited, one of the value-added software distributors with a major presence in Hon…

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Azteca Gold (VAN:AZG) Acquiring Remaining Stake in Two Mile Property Venture

Filed in Azteca Gold, Gold, shares, silver, Silver Royal Apex, Two Mile by on July 2, 2010 0 Comments

Azteca Gold (VAN:AZG) (PK:AZGFF) said it has agreed to acquire the rest of the 50 percent stake in the Two Mile Property joint venture it has with Silver Royal Apex.Terms of the deal will be for $6.1 million in stock.To pay for the acquisition Azteca said they’re going to issue 128 million in restricted common shares to Silver Royal Apex. Those shares won’t be allowed to be traded until four

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ConAgra Acquires American Pie – Analyst Blog

Filed in Gold Investing, shares, silver by on June 15, 2010 0 Comments

Recently, ConAgra Foods, Inc . ( CAG ) decided to acquire the assets of American Pie, LLC. However the financial terms were not disclosed. American Pie manufactures frozen fruit pies, thaw and serve pies, fruit cobblers and pie crusts under the licensed Marie Callender’s and Claim Jumper trade names, as well as frozen dinners, pot pies and appetizers under the Claim Jumper trade name.   The transaction is expected to close within a month. The acquired company will be part of the Consumer Foods segment. During the third quarter of fiscal 2010, the segment reported a 2.2% yearly increase in revenue based on continuous innovation, marketing and customer service initiatives taken by the company. We believe that the acquisition will further enhance revenue in the segment.   ConAgra has grown primarily through acquisitions and divestitures, which would continue in the future. ConAgra has divested several businesses in fiscal 2008 and 2009, including trading and merchandising operations, Pemmican beef jerky business and Knott’s Berry Farm jelly and jam business.   Recently, ConAgra approved a $500 million share repurchase authorization. This reflects the company’s strong cash position and positive cash flow outlook. ConAgra plans to repurchase its shares periodically, depending on market conditions and other factors, and may do so in the open market or through privately negotiated transactions. The company expects this to be a multi-year program.   The company has significant potential based on the improvements in its supply chain, sales execution, marketing, and innovation capabilities.   Lastly, ConAgra’s cost reduction initiatives will bear fruit going forward. It continues to focus on controlling general and administrative costs across the organization. We anticipate this initiative will generate benefits in fiscal 2010 and beyond.   ConAgra expects fiscal 2010 EPS at $1.73, compared with $1.42 in fiscal 2009. Annual sales growth is expected in the range of 3% to 4% over the long term and annual EPS growth is expected in the range of 8% to 10%. Return on invested capital is expected between 13% and 14% over the long term.   Read the full analyst report on “CAG” Zacks Investment Research

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Oplink to Repurchase Shares – Analyst Blog

Filed in Gold Investing, Gold Prices, lead, shares, ubs by on June 2, 2010 0 Comments

Oplink Communications, Inc. ( OPLK ) recently announced that its Board has approved a new share repurchase program authorizing the repurchase of up to $40 million of common stock. Oplink has almost completed its previously announced stock repurchase program of $20 million. In 2009, Oplink repurchased 488,263 shares at an average price of $7.09. The share repurchase will be funded from available working capital. As of March 31, 2010, Oplink had cash and equivalents of $169.8 million. The repurchase program may be suspended from time to time or discontinued. There is no fixed termination date for the repurchase program. The company continues to make good use of its strong cash balance. During the fiscal third quarter, which ended March 31, 2010, Oplink closed the acquisition of Emit Technology Co., Ltd. for $6.2 million. Based in Taiwan, Emit is a fiber optic components manufacturer. The primary business for the company includes connectivity solutions, optical connectors, jumper cables, integrators, manufacturers and carriers. Emit primarily sells to the enterprise and access market. Meanwhile, Oplink reported better-than-expected results for the fiscal third quarter. Net income was $4.8 million or 22 cents per share compared with a net income of $5.7 million or 26 cents in the second quarter of fiscal 2010. Including stock-based compensation expense, net income was 16 cents, beating the Zacks Consensus Estimate of 14 cents. Management stated that the company continues to invest in expanding capacity and improving lead times to meet a stronger demand environment. However, production ramp-up remains challenging due to labor and materials shortage. The company expects to see improvement in the coming quarters. California-based Oplink provides design, integration and optical manufacturing solutions for optical networking components and subsystems. Read the full analyst report on “OPLK” Zacks Investment Research

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Covidien to Buy Vascular Device Maker ev3 for $2.6 Billion (COV)

Filed in ceo, dividend, earnings, euro, Gold, lead, shares by on June 1, 2010 0 Comments
Covidien to Buy Vascular Device Maker ev3 for $2.6 Billion (COV)

Healthcare products maker Covidien plc ( COV ) said Tuesday that it will buy stents and other vascular devices maker ev3 Inc ( EVVV ) for $2.6 billion. Covidien will may $22.50 per share for ev3, which represents an almost 19% premium over ev3’s Friday closing price of $18.92. CEO Richard Meelia said in a press release that the acquisition is “in line with our strategy of becoming a leading partner with vascular surgeons, neurosurgeons, interventional cardiologists and interventional radiologists.” Covidien said the deal would likely close by the end of July. It will negatively impact 2010 and 2011 earnings by 5 to 8 cents per share and 10 to 15 cents per share, respectively. Covidien shares were mostly flat in premarket trading Tuesday. The Bottom Line We had removed shares of COV from our recommended list back on October 6, 2008, when the stock was trading at $52.19. The company has a 1.70% dividend yield, based on Friday’s closing stock price of $42.39. The stock has technical support in the $38-$40 price area. If the shares can firm up, we see overhead resistance around the $44-$46 price levels. We would remain on the sidelines for now, Covidien plc ( COV ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars. Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .

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Diamond Foods Beats the Street – Analyst Blog

Filed in Debt, earnings, Guidance, inflation, silver by on May 28, 2010 0 Comments

Diamond Foods Inc.’s ( DMND ) fiscal 2010 third-quarter adjusted earnings almost doubled to 30 cents per share from 16 cents in the year-ago quarter. The quarterly result also came in well ahead of the Zacks Consensus Estimate of 20 cents per share. During the quarter, Diamond Foods recorded a solid 25.0% growth in sales to $138.7 million from $111.0 million in the year-ago period. The growth was primarily driven by higher snack and culinary sales, aided by the inclusion of sales from Kettle Foods Inc., which Diamond Foods acquired in March of this year. Diamond Foods acquired Kettle through an all-cash deal for $616.2 million. Gross profit during the quarter rose by 12.5% year-over-year to $31.1 million, while gross margin dipped by 250 basis points (bps) to 22.4%. The lower margin was primarily caused by increased promotional spending on Emerald and Pop Secret products, coupled with commodity inflation. Total operating expenses surged 52.8% year-over-year to $33.0 million, primarily due to $10.2 million incurred on the acquisition of Kettle Foods, partially offset by lower advertising expenses. Accordingly, Diamond Foods posted an operating loss of $1.9 million, compared to an operating profit of $6.1 million in the year-ago quarter. However, excluding acquisition expenses, operating income grew 37.5% year-over-year to $8.3 million. Diamond Foods ended the quarter with cash and cash equivalents of $5.4 million, compared to $1.5 million in the year-ago period. The long-term-debt-to-capitalization at the end of the third quarter was 60.0%, compared to 41.0% in prior-year quarter. During the first nine months of the current fiscal year, the company issued $400 million of long-term debt and raised $176 million from revolving credit facilities primarily to fund the acquisition. The company also deployed $6.9 million towards capital expenditure over the same period. Bolstered by strong quarterly performance, Diamond Foods raised its fiscal 2010 earnings guidance to a range of $2.35 to $2.45 per share, an increase of 10 cents from its earlier prediction. The revised guidance is in line with the Zacks Consensus Estimate of $2.40 per share, which moved up 3 cents in just the past week. For the fourth quarter of fiscal 2010, Diamond Foods expects earnings of 25 cents to 27 cents per share. This guidance is lower than the Zacks Consensus Estimate of 30 cents per share, which increased by 3 cents over the past 2 months. Read the full analyst report on “DMND” Zacks Investment Research

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AAVG, – AvStar Aviation Group Announces Amended LOI for Acquisition of Twin Air Calypso -DrStockPick.com Stock Report!

Filed in Gold Investing, silver by on May 26, 2010 0 Comments

__ AvStar Aviation Group Announces Amended LOI for Acquisition of Twin Air Calypso HOUSTON, TX–(CRWENEWSWIRE – 05/26/10) – AvStar Aviation Group, Inc. (Pinksheets:AAVG) proudly announces an amended Letter of Intent (LOI) for the purchase of Twin Town Leasing Co., d/b/a Twin Air Calypso in Fort Lauderdale, Florida. Twin Town Leasing Co. had signed an original LOI to

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AT&T’s Time Square Hotzone – Analyst Blog

Filed in Gold Investing, Gold Prices, lead by on May 26, 2010 0 Comments

AT&T ( T ) has reportedly launched a pilot Wi-Fi (wireless broadband) project in Times Square, New York City, which will enable the residents and vistors to stay connected in one of the busiest places on the planet. Ma Bell has installed a massive Wi-Fi hotspot (“hotzone”) in the north-central part of Times Square to reduce the mobile data traffic congestion. The carrier continues to be challenged by serious traffic congestion as a result of high-bandwidth demand on its network due to excessive data usage by the iPhone customers. AT&T is making significant investments on 3G network infrastructure improvements across highly congested areas to offload traffic from its overcrowded network. The new hotzone will enable 32 million eligible AT&T customers Wi-Fi access using any compatible smartphone, 3G LaptopConnect card or high-speed Internet plan. The carrier plans to expand hotzones in other parts of the country that are affected by network congestion. AT&T boosted its Wi-Fi coverage with the acquisition of Texas-based Wayport Inc., a leading Wi-Fi service provider, in December 2008 for $275 million. Besides providing support for the carrier’s Wi-Fi enabled handsets (such as iPhone and BlackBerry), the acquisition increased its Wi-Fi hotspot counts in the U.S. AT&T is the undisputed leader in Wi-Fi in the US with more than 20,000 hotspots. The carrier currently has 125,000 hotspots globally. AT&T remains focused on expanding the number of Wi-Fi hotspots available to its customers and enhancing connectivity for its high-end smartphone users. AT&T is expanding its nationwide Wi-Fi coverage across venues such as hospitals, retail locations, restaurants, coffee shops, sport arenas and airports. Wi-Fi represents an important strategic opportunity for the operator, as the number of Wi-Fi enabled wireless handsets is expected to increase by 175% through 2011. Wi-Fi access for AT&T’s smartphone and integrated devices customers has dramatically increased in recent times. The carrier had 53 million Wi-Fi connections on its US network in the first-quarter 2010, representing a five-fold increase compared to 10.7 million a year ago. Roughly 69% of these connections were made from smartphone and integrated devices, up from 35% a year ago. AT&T’s aggressive Wi-Fi expansion strategy will further solidify its competitive position against its archrival Verizon ( VZ ) which has so far demonstrated a blasé attitude in this area.  Read the full analyst report on “T” Read the full analyst report on “VZ” Zacks Investment Research

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