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Commercial banks

Corporate Mergers and Acquisitions: Key Trends and Statistics

Strategic Insights

— 2 min read

Motorola Inc. is partnering with Symbol Technologies Inc., Connect Things Inc., and AirClic Inc. to develop bar-coding technology for online sales via wireless phones and cable TV. Sallie Mae is acquiring USA Group for $770 million, and Duke Energy Corp. is planning a second Florida plant. Wachovia Corp. has issued an earnings warning, while Target Corp. plans a stock split. Additionally, First Union Securities Inc. has settled a complaint for $350,000 and $125,000, respectively.

Key Takeaways:

  • Motorola Inc. is investing in a new company with partners to develop bar-coding technology for wireless and cable TV sales, starting with a $500-million investment.
  • Sallie Mae is acquiring USA Group for $770 million in cash and stock, employing around 3,000 people nationwide.
  • Duke Energy Corp. is planning a 620-megawatt natural gas plant in St. Lucie County, hoping to have it operational by summer 2003 at a cost of over $210 million.
  • Wachovia Corp. has announced lower second-quarter earnings expectations, attributing the slowdown to economic conditions and a decrease in revenue growth and increased provisions for bad loans.
  • Target Corp. is planning a 2-for-1 stock split and a 10% increase in quarterly dividends, with the new shares to be issued on July 19, 2001.
  • First Union Securities Inc. has settled a complaint with NASD Regulation, agreeing to pay $350,000 and involving three former senior executives in a $125,000 settlement.

Statistics:

  • $500 million: Initial investment by Motorola Inc. in the new company.
  • $770 million: Purchase price for USA Group by Sallie Mae.
  • 3,000 people: Employees of USA Group.
  • Over $210 million: Expected cost of Duke Energy's natural gas plant.
  • $1.32: Projected earnings per share for Wachovia Corp. in the second quarter.
  • $1.34: Expected earnings per share by analysts in the First Call/Thomson Financial survey.
  • $13.13: Drop in Wachovia shares.
  • $57.06: New closing price of Wachovia shares.
  • $1.81: Rise in Target Corp. shares after announcement.
  • $59.81: Closing price of Target Corp. shares after stock split announcement.
  • 19%: Decline in Target Corp. shares year-to-date.
  • $350,000: Fined by First Union Securities Inc. to settle NASD complaint.
  • $125,000: Settlement amount for three former senior executives of Wheat First Securities Inc.

Sources:

  • "Motorola Joins in Bar Code Venture" (date not specified).
  • "Sallie Mae to Buy Lending Services Company" (date not specified).
  • "Duke Sets Sights on Second Florida Plant" (date not specified).
  • "Wachovia Issues Earnings Warning" (date not specified).
  • "Target Plans Stock Split" (date not specified).
  • "First Union Securities Settles Complaint" (date not specified).

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