2023-08-14 03:19:46
© Archyde.com. U.S. stock M&A activity is expected to pick up Horizon (HZNP.US) and Activision Blizzard (ATVI.US). US), Microsoft’s (MSFT.US) $69 billion acquisition of video game giant Activision Blizzard (ATVI.US), are among the favorites to close deals this year. Amgen will face the U.S. Federal Trade Commission (FTC) in court next month as the regulator seeks to obtain a preliminary injunction blocking Amgen’s acquisition of Horizon. Microsoft is waiting for British antitrust regulators to approve a deal to buy Activision Blizzard. “We think Amgen is in a much better position,” said Roy Behren, co-president and co-chief investment officer at Westchester Capital. “We think the FTC’s effort to file for an injunction will likely fail and Amgen will be able to close the deal.” Some have speculated that the two sides might reach a settlement before trial, though Behren puts the chance of a settlement at regarding 10%. Behren believes the Activision-Blizzard deal is a good investment. Activision Blizzard’s current stock price is regarding $91 per share, while Microsoft’s proposed acquisition price is $95 per share. “If you can make 4% off the deal in the short term, it’s a good investment, and there’s a good chance the deal will close,” Behren explained. The acquisition of cancer drug maker Seagen (SGEN.US ) is another deal that may have crossed the finish line. The deal, which received another FTC request for more information last month, has a 90 percent chance of closing, Behren said. “This deal is less likely to close than the Activision Blizzard deal, but we think Pfizer is a good buy. The Seagen line is a great fit for Pfizer, and we think it’s mispriced in the market,” Behren said. , he is sidestepping Kroger’s (KR.US) plan to buy Albertsons (ACI.US) for $25 billion while the two companies await a decision from the FTC. The deal has regarding a 40% chance of going through. “In the market, I wouldn’t invest in a trade that has a lower probability than a coin flip,” Behren said. Behren believes Broadcom’s (AVGO.US) planned acquisition of VMware (VMW.US) will close. The deal is awaiting approval from China’s antitrust authorities as well as from the U.S. FTC. “The deal might close by the end of the year with strong annualized returns,” Behren explained. “However, the deal might face a 20% downside.” Emerson Electric (EMR.US ) ) plan to buy National Instruments (NATI.US) is likely to be completed, although the current price is “perfect”. “If you’re wrong and the deal doesn’t close, you have a 25 percent downside,” Behren said. Overall deal activity has slowed this year, at least in part because of higher interest rates, but Behren expects more deals this fall. Activity will pick up. “I think deal activity is on the rise and will continue into the end of the year,” Behren said.
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