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