Comments on: Valassis in Talks to Buy Advo

By: Statoil and Norsk Hydro Form the 3rd Intra-Watch List Merger - Stock Market Beat - Our beat is the stock market. Our job is to beat it.

Tue, 19 Dec 2006 19:06:11 +0000

[…] Statoil and Norsk Hydro Form the 3rd Intra-Watch List Merger Oops - we did it again! For the third time in less than six months two companies on our Watch List announced a merger. UPDATE 6-Statoil to buy Norsk Hydro’s oil, gas business | Reuters.com Norway’s Statoil (STO) has agreed to buy the oil and gas activities of Norsk Hydro (NHY) for about $30 billion to form a national champion with its sights set beyond the dwindling oilfields of the North Sea.The all-stock deal will create the world’s largest offshore operator, the companies said. “The recommended merger is driven by an ambition to grow in Norway and internationally,” Norway’s two biggest companies said in a joint statement, adding that the new group’s output would be 1.9 million barrels per day in 2007, with proven oil and gas reserves of 6.3 billion barrels of oil equivalents. […]

By: Stock Market Beat » Blog Archive » Another Intra-Watch List Merger (Goldcorp/Glamis)

Tue, 05 Sep 2006 13:52:32 +0000

[…] Can we pick em or what? Hot on the heels of the Valassis/Advo merger of two companies that were both on our Watch List, we get another intra-list merger, this one in the basic materials sector. […]

By: Advo

Advo — Thu, 06 Jul 2006 19:34:34 +0000

I think this is a good opportunity to buy Valassis. The company probably overpaid a lot for Advo considering Advo didn’t really have any other significant buyers in competition for the buyout(at least not that I heard of). If estimates that the buyout will save $40 million a year are true, my math tells me it was a break even deal. The buyout of the competitor will then be the benefit left over. VCI’s devaluation brought it’s p/e down to 11.3, which is a good deal if they can just break even on the acquisition.