Stories related to: mergers and acquisitions

Sprint is considering selling or spinning off its Nextel division, signaling the end of a troubled, disappointing merger, the Wall Street Journal reports. Talks are already under way with Nextel founder Morgan O'Brien, who would integrate the unit into his new wireless public-safety network, and other prospective buyers, including private-equity firms. More »

Though Microsoft's courtship of Yahoo came to an unhappy end, Yahoo is still open to suitors, even Microsoft—at the right price, insists CEO Jerry Yang. Yahoo is in talks with other companies about ways to boost its value, and while Yahoo isn't in a rush to sell, executives are willing to listen to any would-be buyer, Yang tells Bloomberg as he faces mounting shareholder criticism for letting the deal get away. More »

The Microsoft/Yahoo deal looks dead, and at least one company is celebrating: Google. Both companies are exploring other deals, but none will be as potent as MicroHoo might have been, BusinessWeek reports. That’s good news for a certain search giant. “Its two main competitors are separate and floundering,” said one analyst. “We think Google's the winner.” More »

T-Mobile parent Deutsche Telekom may bid for troubled Sprint-Nextel, a deal that would move the German telecom to the top of the US mobile communications heap, ahead of AT&T and Verizon, reports the Wall Street Journal. DT increasingly has looked to global options to help fuel earnings hurt by competition and sagging landline revenue at home. More »

Microsoft and Yahoo are holding active merger talks, with Microsoft willing to increase its offer “by several dollars,” sources tell the New York Times . The negotiations come as a major breakthrough after months of stalemate; Yahoo shareholders have been fielding calls from both sides seeking to arrive at an acceptable price. Shareholders had sought  $35-$37 a share; Microsoft is said to be willing to go as high as $33. More »

After years of haggling, Arby’s owner Nelson Peltz reached a deal to acquire Wendy’s yesterday, ending the involvement of the Thomas family that founded it. Wendy Thomas herself called the sale a “huge, huge disappointment,” the Columbus Dispatch reports. The family had hoped local franchisee J. David Karam would acquire the company. “It’s a sad day for Columbus,” said Karam. More »

Air France-KLM has withdrawn its offer to buy Alitalia, leaving the cash-poor Italian carrier with few options. In a tersely worded statement, the world's largest airline said its Alitalia overture—which had been opposed by Alitalia's unions—was "no longer valid." With no suitors forthcoming and cash reserves dwindling—the airline loses $1.6 million a day—Alitalia may be forced to declare bankruptcy, writes the Wall Street Journal . More »

Cisco, once famous for swallowing small companies whole and digesting them without leaving a trace of their former brand names (or management), is forging a new acquisition strategy. As it targets new, Internet-based technologies that it’s less familiar with, the company has developed a lighter touch, as evidenced by several recently acquired businesses that operate with much greater independence, reports the Wall Street Journal . More »

Winds of a Yahoo-Microsoft merger have sparked a “nuclear war” in the online-advertising world—and the Google-dominated market could soon see major changes, the Wall Street Journal reports. “Nothing short of a new world order in this space is up for grabs,” says an expert. As Yahoo and Microsoft mull joining forces with each other (or perhaps other partners), consolidation could create healthy competition. More »

Yahoo's board meets today to examine the options for avoiding a hostile takeover by Microsoft, the Wall Street Journal reports. Experts think a Microsoft grab is still the most likely scenario, but the situation has grown increasingly complicated in the midst of discussions of an AOL-Yahoo merger, Yahoo's proposed trial of Google ads, and rumors of News Corp. joining Microsoft's side. More »

Discover Financial Services is moving into the global credit card market with its acquisition of Diners Club International from Citigroup, Bloomberg reports. The $165 million deal gives Discover a foothold in the 185 countries outside North America where Diners has a presence, which will add revenue at a time when Americans are struggling to pay their credit card bills.  More »

Yahoo has 3 weeks to accept Microsoft’s takeover before things get hostile, Microsoft warned in a letter to Yahoo execs today. “The substantial premium reflected in our initial proposal anticipated a friendly transaction,” wrote Microsoft CEO Steve Ballmer, who promised a proxy director battle and implied a lower sale price. “If we are forced to take an offer directly to your shareholders," Microsoft's $40 billion offer would tumble. More »

Microsoft and Yahoo execs met again this week, but the software maker refused to raise its takeover offer and the two sides failed to make progress toward an agreement. Yahoo won’t enter formal negotiations unless Microsoft increases its Jan. 31 cash-and-stock bid, then worth $44.6 billion and now about $42 billion, sources told the Wall Street Journal . More »

Venture capitalists are watching economic indicators carefully, trying to find safer places to put their mountains of money, CNET reports. The stats on first-quarter VC activity will land soon, and though experts don't expect dollar totals to have waned, players are “under pressure to invest in quality companies that have a clear business model,” one watcher said. More »

Microsoft is standing pat on its $44.6 billion offer for Yahoo, with no intention of upping its ante, reports the Wall Street Journal. The software maker’s Jan. 31 bid—worth $31 per share—was rejected by Yahoo as undervalued. Since then, pundits have waited for Microsoft to raise its bid, possibly as high as $40. More »

A new anti-monopoly law in China could interfere with Microsoft’s bid for Yahoo, the New York Times reports. Because Yahoo owns 40% of Alibaba, China’s biggest e-commerce business, Beijing could demand approval of the deal along with the US and the EU. “I don’t think anyone has worked through the issue of where an Internet merger should be reviewed,” said a law professor. More »

The two private-equity firms set to buy Clear Channel sued the group of banks they had engaged to fund the deal, the Wall Street Journal reports. Joined by Clear Channel, Bain Capital and Thomas H. Lee Partners accused the consortium—including Citigroup, Deutsche Bank, and Wachovia—of breaching contract by attempting to back out of the deal amid the tanking credit market. More »

A Citigroup analyst upgraded Yahoo stock to a buy today, predicting that Microsoft will raise its buyout bid from $31 per share to $34, MarketWatch reports. Acquiring Yahoo is the only way for Microsoft to successfully compete with Google for online advertising, said analyst Mark Mahaney, and so “the likelihood of Microsoft walking away from the deal is small." More »

The Justice Department today approved the proposed merger between satellite radio firms Sirius and XM, the Wall Street Journal r eports. The FCC must still sign off, but the pair appears to have allayed antitrust concerns about the merger of the industry's two largest companies by arguing that they face competition from all music providers, including conventional radio. More »

Bookseller Borders is considering selling itself or some of its divisions, the Detroit Free Press reports today. The company, based in Ann Arbor, Mich., is in the midst of a turnaround, but is desperately short on cash, today borrowing $42.5 million from its biggest shareholder, Perishing Square Capital Management. Perishing also offered to buy parts of the company’s international business. More »