Major Business Deals Announced: Deutsche Bank, EDS, MCI WorldCom, UTD Tech, and Liberty Media

Strategic Insights -

Deutsche Bank's acquisition of Chase Manhattan Bank's Dutch Auction business marks a significant expansion in its corporate trust and agency services. Meanwhile, Electronic Data Systems Corp. and MCI WorldCom Inc. have finalized two 10-year outsourcing agreements worth $12.4 billion, implementing key aspects of their strategic business relationship. United Technologies Corp. is acquiring Dallas Aerospace's assets and operations for approximately $57 million, and Liberty Media Group is buying a 14 percent stake in Emmis Communications Corp. for about $150 million.

Key Takeaways:

  • Deutsche Bank's acquisition of Chase Manhattan Bank's Dutch Auction business will expand its current Dutch Auction business by more than 150 new clients.
  • The transaction is expected to close by year-end, with terms not disclosed.
  • MCI WorldCom and EDS have finalized two 10-year outsourcing agreements worth a combined $12.4 billion, with approximately 2,300 employees transferring between the companies.
  • The first contract is worth $6.4 billion, with EDS assuming responsibility for information technology system operations at MCI WorldCom processing centers worldwide.
  • The second contract is worth approximately $6 billion, with MCI WorldCom assuming select functions of EDS's global network operations.
  • United Technologies Corp. is acquiring Dallas Aerospace's assets and operations for approximately $57 million, with the deal expected to close before December 31.
  • Liberty Media Group is buying a 14 percent stake in Emmis Communications Corp. for approximately $150 million, becoming the second-largest shareholder behind Chairman and CEO Jeffrey Smulyan.

Statistics:

  • Deutsche Bank's Dutch Auction business will expand by more than 150 new clients.
  • MCI WorldCom and EDS have finalized two 10-year outsourcing agreements worth a combined $12.4 billion.
  • Approximately $6.4 billion will be allocated to the first contract between MCI WorldCom and EDS.
  • Approximately $6 billion will be allocated to the second contract between MCI WorldCom and EDS.
  • The first contract will have a one-year startup period, followed by a 10-year contract period.
  • Approximately 1,300 MCI WorldCom employees will transfer to EDS as part of the first contract.
  • Approximately 1,000 EDS employees will transfer to MCI WorldCom as part of the second contract.
  • United Technologies Corp. is acquiring Dallas Aerospace's assets and operations for approximately $57 million.
  • Liberty Media Group is buying a 14 percent stake in Emmis Communications Corp. for approximately $150 million.

Sources:

  • Deutsche Bank
  • Chase Manhattan Bank
  • Electronic Data Systems Corp. (EDS)
  • MCI WorldCom Inc.
  • United Technologies Corp. (UTC)
  • Liberty Media Group
  • UPI New York
  • COMTEX (http://www.comtexnews.com)