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Diversified Gas & Oil announces $400M Appalachia acquisition

London listed, Diversified Gas & Oil (OTC:DGAOF) proposes $400M acquisition in the Appalachian Basin from privately held HG Energy.

The assets being acquired include 107 producing gas wells with a combined net daily production of over 20,000 boe, resulting in pro forma net production to over 90,000 boepd

The acquisition will increase PDP Reserves to 566 mmboe, and will be immediately accretive to per share cashflow and earnings.

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To skepticism, Sprint argues it’s too weak without T-Mobile

Sprint’s (S -2.3%) case to regulators for a $26B merger with T-Mobile (TMUS -2.9%) leans on the assertion that it won’t be an effective competitor without the deal — but some officials are skeptical of that, Bloomberg reports.

The No. 4 U.S. wireless carrier has said it might run out of cash if the merger fails, according to the report.

Those arguments, part of a so-called failing firm approach that suggests competition will be lessened with the failure of a player, are “relatively weak,” according to a former FCC wireless bureau chief.

Sprint and T-Mobile are also arguing that the combined company will help the U.S. win the race to 5G commercialization, though the Justice Dept. doesn’t consider industrial policy, focusing instead on harm to competition.

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Nielsen -9.5% amid weaker case for sale

Nielsen Holdings (NYSE:NLSN) is 9.5% lower in the regular session in the aftermath of a report suggesting support for a sale of the company is crumbling.

The New York Post said Blackstone would drop out of the running, and that rival bidder Apollo Global Management was also losing interest.

That sale is no longer a foregone conclusion, says Credit Suisse analyst Kevin McVeigh, cutting his price target to a Street-low $23 from $27 (and seeing shares down to $19 in a scenario with no deal, even for Nielsen’s Watch unit).

That $23 target implies another 5% downside beyond the 9.5% drop today.

Nielsen had explored unloading its “Watch” segment last year before looking at selling the whole company, but a more competitive environment for Watch could crimp prices for it or Nielsen as a whole, McVeigh says.

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Church & Dwight to add women’s electric hair removal products for $900M including earn-out

Church & Dwight (CHD +1.3%) agrees to acquire FLAWLESS and FINISHING TOUCH brands of hair removal products from Ideavillage Products, for ~$475M in cash plus an additional earn-out payment of up to $425M

The transaction is expected to close in Q2 2019.

The acquired brands have TTM sales of ~$180M with EBITDA of ~$55M, around 30% margin; around 10% of net sales come from international markets.

In 2019, the company expects ~7-9% adjusted EPS growth driven by ~ 7-9% EPS growth of existing business, plus 1% accretion from FLAWLESS acquisition. The acquisition is expected to increase 2019 cash earnings by 4%.

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Resideo Acquires Buoy Labs

Resideo Technologies (REZI +1.2%) acquires Buoy Labs that provides Wi-Fi enabled solution to track the amount of water used in a home, integrate smart software and hardware to identify potential leaks and intervene to prevent them through its subscription-based app services.

Buoy product and app complements Resideo’s Honeywell Home Water Leak and Freeze Detector that can provide early warning of a leak or drop in temperature.

Deal terms were not disclosed

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WABCO bought out by ZF Friedrichshafen

WABCO Holdings (NYSE:WBC) strikes a deal to be acquired by ZF Friedrichshafen for $136.50 per share.

The all-cash transaction gives WABCO an equity value of over $7B.

The company says the transaction will bring together two global technology leaders serving OEMs and fleets in the automotive and commercial vehicle industry, combining WABCO’s capabilities in commercial vehicle safety and efficiency, including technologies involved in vehicle dynamics control, active air suspension systems, and fleet management systems with ZF’s leading position in driveline and chassis technologies for cars and commercial vehicles.

Shares of Wabco are up 37% over the last 90 days with the ZF deal well-telegraphed.

Source: Press Release

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Newmont-Goldcorp merger wins support from Glass Lewis, ISS

The proposed merger between Newmont Mining (NYSE:NEM) and Goldcorp (NYSE:GG) is endorsed by Glass Lewis, which becomes the second proxy advisory firm to recommend shareholders approve the deal after ISS came out in support earlier this week.

“We see no reason to doubt the strategic rationale for the proposed transaction, which would create a leading gold company with greater asset diversification and opportunities to achieve meaningful synergies,” Glass Lewis says.

Earlier this week, ISS cited “the solid strategic rationale and expected financial benefits, which are bolstered by the recent addition of a special dividend to NEM shareholders,” for its recommendation.

Separately, NEM announced its leadership team for the combined company, with CEO Gary Goldberg remaining at the helm until Q4 when he will retire, to be succeeded by Tom Palmer, who will stay in the role of President.

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Deutsche Bank -3.8% amid talks of capital raise for Commerzbank deal

Deutsche Bank (NYSE:DBfalls 3.8% in premarket trading after the Financial Times reports that the bank is considering raising as much as €10B in new equity as part of a potential merger with Commerzbank (OTCPK:CRZBF), a move that’s intended to ensure that Germany’s largest lender has sufficient capital.

Management has been looking at a plan to raise from  €3B to €10B ,  with the government wanting to raise as much as possible so the combined bank wouldn’t have to return to the market again and managers angling for the lower end of the range to appease shareholders.

A capital raise at the upper end of the range would equal about 40% of the two German banks’ combined market cap.

Related ticker: OTCPK:CRZBY

Previously: Deutsche staff barred from selling stock during merger (March 25)

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