(By Balaseshan) Some of the notable merger and acquisition (M&A) news on Monday:
Amazon.com (NASDAQ:AMZN) is in "advanced talks" to acquire the mobile chip business of Texas Instruments Inc. (NASDAQ:TXN), according to Israel's Calcalist newspaper. No financial terms were reported. AMZN is trading down 0.60% at $240.90, while TXN is trading up 3.76% at $28.31.
Japanese mobile carrier Softbank has agreed to buy a 70% stake in telecom services provider Sprint Nextel Corp. (NYSE:S) for about $20.1 billion. Softbank's investment consists of about $12.1 billion to be paid to Sprint shareholders and $8.0 billion of new capital to be used to strengthen Sprint's balance sheet.
The transaction, which is approved by the boards of directors of Softbank and Sprint, is expected to close in mid-2013. Shares of Sprint is trading up 0.17% at $5.74.
Charles Schwab Corp. (NYSE:SCHW) said it has agreed to buy dividend income-focused asset management firm ThomasPartners Inc., which includes an upfront payment of $85 million in cash and the opportunity for additional payments contingent on future growth in assets under management.
At current AUM levels, Schwab anticipates the acquisition will be neutral to EPS for the first 12 months post-closing, and become modestly accretive within the next 12 months. The deal is expected to close during the fourth quarter. SCHW is trading down 1.47% at $12.76.
ITT Corp. (NYSE:ITT) said it has agreed to buy Joh. Heinr. Bornemann GmbH, a provider of highly engineered pumps and systems for the oil and gas industry. The transaction, valued at 206 million euros, would be funded from the company's cash and is expected to close in the fourth quarter of 2012. ITT is trading up 0.63% at $20.68.
Argonaut Gold Ltd. (TSE:AR) has agreed to buy all issued and outstanding common shares of Prodigy Gold Inc. (CVE:PDG) by way of a Plan of Arrangement. Prodigy shareholders would receive 0.1042 of an Argonaut Gold share and C$0.00001 in cash per Prodigy share.
The transaction values Prodigy's equity at around C$341 million on a fully diluted in-the-money basis and implies an enterprise value of some C$277 million. PDG is trading up 44.93% at C$1, while AR trades down 6.01% at C$9.85.