Corporate Acquisitions and Economic Developments: ASnapshot of September 2005

Strategic Insights -

The month of September 2005 saw significant corporate acquisitions and economic developments, with Oracle agreeing to acquire Siebel Systems for $5.85 billion, and Wachovia acquiring Westcorp for $3.91 billion. Meanwhile, the global economy continued to recover from the impact of Hurricane Katrina, with the Japanese economy growing faster than previously thought.

Key Takeaways:

  • Oracle is acquiring Siebel Systems for $5.85 billion, expanding its presence in the sales-automation programs market.
  • Wachovia is acquiring Westcorp for $3.91 billion, expanding its presence in automobile financing.
  • The Japanese economy grew faster in the last quarter than previously thought, with signs of a recovery spreading.
  • The Army Corps of Engineers will award $1.5 billion in contracts for hurricane cleanup operations in Louisiana and the rest of the gulf region.
  • Richard C. Breeden, former chairman of the Securities and Exchange Commission, is starting a hedge fund.
  • Freddie Mac will assist federal regulators in recovering millions of dollars in benefits and bonuses paid to two of its former executives.
  • EBay is acquiring Skype Technologies for about $2.6 billion.
  • Ford has agreed to pay 1,100 jobs in Canada by 2008, and has sold its Hertz rental car unit to a group of private investors for $5.6 billion.
  • Boeing machinists are on strike, with no negotiations scheduled and little inclination for compromise.
  • Mercedes will undergo significant cost-cutting measures, with Dieter Zetsche announcing a stringent regimen.
  • The stock market has shown muted gains, with the Dow Jones industrial average gaining 4.38 points and the Nasdaq composite index climbing 7.32 points.

Statistics:

  • $5.85 billion: The amount Oracle is paying to acquire Siebel Systems.
  • 1,100 jobs: The number of jobs being cut by Ford in Canada by 2008.
  • $1.5 billion: The amount the Army Corps of Engineers will award in contracts for hurricane cleanup operations.
  • $3.91 billion: The amount Wachovia is paying to acquire Westcorp.
  • $2.6 billion: The amount EBay is paying to acquire Skype Technologies.
  • $5.6 billion: The amount Ford is receiving from the sale of its Hertz rental car unit.

Sources:

  • "Oracle to Acquire a Competitor, Siebel Systems, for $5.85 Billion" by The New York Times, dated September 2005.
  • "Wachovia to Buy Westcorp for $3.91 Billion" by The New York Times, dated September 2005.
  • "Japan's Economy Grew Faster Than Thought" by The New York Times, dated September 2005.
  • "The Army Corps of Engineers to Award $1.5 Billion in Contracts" by The New York Times, dated September 2005.
  • "Freddie Mac to Aid Regulators in Recovering Money" by The New York Times, dated September 2005.
  • "EBay Announces Deal to Buy Skype Technologies" by The New York Times, dated September 2005.
  • "Ford Has Initial Agreement With Union in Canada" by The New York Times, dated September 2005.
  • "Boeing Strike Enters Week 4" by The New York Times, dated September 2005.
  • "Muted Gains for Stock Market Indicators" by The New York Times, dated September 2005.
  • "New York Gains Added Cachet Among Advertisers" by The New York Times, dated September 2005.