Thursday’s M&A Roundup: Eni, Alaska Air, Novatel & WiPro

Wednesday’s M&A Recap

Thursday’s M&A Roundup: Eni, Alaska Air, Novatel & WiPro

Published on 20/10/2016 – – Follow us on Twitter: @SMDailyCo and Facebook: @StockMarketDaily

Here is a roundup of various merger and acquisition-related stories that occurred on Thursday, some of which are flying under the radar.

Eni Is Looking For Buyers

Eni, (NYSE: E) the Italy-based oil and gas giant, was confirmed to be in talks with an unidentified buyer concerning its Area 4 gas field in Mozambique, according to a Reuters report.

Talks are ongoing but a deal hasn’t been finalized.  However, earlier reports this year suggested that Eni reached a deal with Exxon (NYSE: XOM) to sell its stake in the oil field in a multi-billion dollar deal.

Eni has been looking to sell up to 25 percent of the oil field which would see its ownership stake cut in half from one-half to one-quarter.

Alaska Air Provides Update On Virgin Acquisition

Alaska Air Group (NYSE: ALK)’s pending acquisition of Virgin America (NASDAQ: VA) was a topic of conversation during the company’s third quarter conference call.

According to the Seattle Times, Alaska Air’s CEO Brad Tilden said that he is “very confident” that the pending $2.6 billion merger will pass the scrutiny of regulators despite a last-minute extension of the review.

Specifically, the executive said, “We were hoping to get this done a couple of weeks ago.  We’re not there quite yet.”  He also added, “Our hope is we’ll have antitrust clearance soon.”

Maguire Capital Thinks Novatel Will Be Bought

Maguire Capital, a notable investment firm with a stake in Novatel Wireless (NASDAQ: MIFI) said in a regulatory filing that it supports the company selling its mobile broadband business, including its MiFi branded hotspots and USB modem products.

The activist investor noted that a sale would “significantly” improve the company’s balance sheet, especially since recent M&A activity in the sector suggests Novatel could be valued at five to seven times sales if it finds a buyer to divest its assets.

Maguire Capital further added that it is its belief that “Novatel will eventually be acquired by a major telecommunications carrier.”

Wipro Buys A Cloud Company For Half A Billion Dollars

Wipro (NYSE: WIT), an information technology, consulting and businesses process services company, said on Thursday it has agreed to acquire Appirio, a global cloud services company that creates next generation worker and customer experiences for $500 million.

Wipro said that once the acquisition is finalizes, it will become the world’s largest cloud transformation practices.