Cisco Systems (NDAQ:CSCO) said it will buy online videoconferencing company WebEx Communications for $2.9 billion as part of a strategy to sell comprehensive packages of communication products. The deal, worth $3.2 billion including WebEx's existing cash, would be Cisco's biggest acquisition since the network equipment maker bought cable set-top box maker Scientific-Atlanta for $7 billion last year. Cisco said on Thursday it will launch a cash tender offer for all outstanding WebEx shares at $57 each, a premium of 23% over their Nasdaq close of $46.20 on Wednesday.
A
General Electric (NYSE:GE) unit and private equity firm Blackstone Group will jointly acquire mortgage and vehicle fleet management company PHH for $1.8 billion in cash, the companies announced Thursday. The $31.50-per-share purchase price is about a 13% premium to PHH's closing stock price of $27.81 on Wednesday. PHH shares jumped in trading on the NYSE. GE is paying sixteen times expected 2007 earnings of $1.95 per share, according to Reuters Estimates, which is based on one analyst's estimate.
Ameriprise Financial (NYSE:AMP) said on it plans to buy back as much as $1 billion in stock and increased its quarterly dividend to $0.15 to $0.11 per share.
The 159-year-old
Chicago Board of Trade (NYSE:CBOT) found itself the target of a possible bidding war Thursday when electronic futures market IntercontinentalExchange Inc. made a surprise $9.9 billion all-stock bid, threatening its deal to merge with the crosstown Merc.Shares of CBOT jumped $28.86, or 17.4%, to close at $194.95 on the NYSE. ICE fell $3.83, or 2.9%, to $128.10, while CME shed $31.09, or 5.5%, to $532.88.
Bear Stearns Cos. (NYSE:BSC), Wall Street's largest underwriter of mortgage securities, reported Q1 rose 8%, despite turmoil in the subprime lending sector. Its profit after paying preferred dividends rose to $548.5 million, or $3.82 per share, for the three months ended Feb. 28 from $508.7 million, or $3.54 per share, a year earlier. Revenue rose to $2.48 billion from $2.19 billion last year.