Continuing their leveraged buyout partnership, private equity firms Leonard Green & Partners and TPG Capital recently announced an agreement to buy gym operator Life Time Fitness for about $4 billion. The two firms previously worked together to acquire retailer J.Crew in 2010 and Petco in 2006.
A New Leader in Combatting C.N.S. Disorders
On Monday, March 30, Teva Pharmaceutical Industries Ltd. announced that it would be acquiring Auspex Pharmaceuticals for $3.2 billion. As a result of the acquisition, shares of Auspex climbed from $29.60 (41.7 percent) to $100.51 while Teva shares increased by $1.67 (2.7 percent) to $63.65. This major increase in the value of the shares for both companies will boost their presence in treatments for central nervous system disorders, which may save many lives.
Potential CIT and OneWest Bank Merger Faces Public Hearing
Lunch with Professor Michael Katz: The Future of Payment Platforms and the Legal Frontier of Digital Currency
On March 5, 2015, Professor Michael Katz, Sarin Chair in Strategy and Leadership, Director of the Center for Telecommunications and Digital Convergence, and professor of business at the UC Berkeley Haas School of Business, gave the lunchtime keynote address for the Berkeley Business Law Journal’s “Bits Bites Plastic: The New World of Electronic Payments and e-Currency” symposium at the UC Berkeley School of Law.
Professor Katz began by revealing his insights on the integration of mobile technology into our everyday lives. The first personal computer was commercially marketed in 1975. By 1983, there were nearly 2 million computers in the United States. In 2014, the Cisco Visual Networking Index estimated 7.4 billion computing devices worldwide with an estimate that in 2015 the number of mobile-connected devices would exceed the number of humans on Earth. A great deal of this technology is used to conduct business and commercial transactions. Paypal, Google Checkout, Apple Pay, and Venmo are quickly gaining traction in a global marketplace that is increasingly reliant on digital commerce and e-currency. Professor Katz explains that digital cash is the natural evolution of currency and that vendors and banking companies are well-advised to develop models of payment facilitation incorporated digital cash to keep up with the digital currency revolution.
Victories Over Amgen Bring Sandoz Closer to Launching First U.S. Biosimilar
On March 6, 2015, the FDA approved Zarxio, a biologic pharmaceutical produced by Novartis’ generic drug unit—Sandoz—that is biosimilar to Amgen’s Neupogen. Now, after overcoming two important challenges, Sandoz is poised to bring the first biosimilar approved under the Affordable Care Act to the U.S. market.
A Giant Merger in the Generic Drug Industry
In accordance with its 8-K filing of Auspex Pharmaceuticals, Inc. (“Auspex”) with the U.S. Securities and Exchange Commission on March 30, 2015, Teva Pharmaceuticals Industries Ltd. (“Teva”), entered into a merger agreement with Auspex at a purchase price of $101 per share. The total amount of purchase will be about $3.2 billion.
Kraft and Heinz Deal Backed by 3G and Berkshire Hathaway
Kraft Foods and H.J. Heinz, two processed foods giants, recently welcomed a merger backed by 3G, a Brazilian private equity firm, and Warren Buffet’s Berkshire Hathaway, in the largest deal of 2015 thus far. By acquiring Kraft, worth $36 billion before the deal, 3G Capital adds yet another company to a recent line of acquisitions of North American food companies including Heinz, Budweiser, Burger King and Tim Hortons.
Commerzbank of Germany to Pay $1.5 Billion to Settle U.S. Case
Commerzbank has agreed to pay $1.45 billion to settle several U.S. investigations that tracked a trail of illicit money to the German bank. The settlement was reached on March 12.
The first aspect of the case concerned the bank’s dealings with Iranian and Sudanese companies blacklisted in the United States. Authorities determined that the bank transferred at least $263 million through the U.S. financial system on behalf of these companies between 2002 and 2008. In addition, the bank attempted to disguise the source of the funds by deleting data from wire transfers. The Frankfurt branch had been hiding information relating to these practices from its New York branch which, according to investigators, was possible due to “ineffective” internal controls in New York.
Refresco Gerber Makes a Splash With Amsterdam IPO
Simon Property’s Renewed Takeover Bid for Macerich
On Friday, March 22, 2015, Simon Property Group made its “best and final bid” for its rival competitor, Macerich Compay, raising its former unsolicited bid to $23.2 billion. This announcement came a few days following Macerich’s rejection of its rival’s prior unsolicited offer. Simon’s successful acquisition of Maerich would ensure its position as the nation’s largest mall owner and ensure it a significant interest in high-end retail properties.
On March 9, 2015, Simon publicly announced its bid for Macerich, an offer valued at $22.4 billion. After a week of consideration by Macerich’s board, the company rejected Simon’s offer and adopted a “poison pill” defense to defend against a takeover.