Some questions regarding headlines associated with MIL/TMO

Discussion in 'Stocks' started by ImJWish622, Feb 24, 2010.

  1. So on 2/22/2010, TMO announces that it is buying MIL.

    Here were the headlines:

    -Thermo Fisher bid for Millipore is said to be unsolicited, Bloomberg
    -Thermo Fisher said to offer $6B for Millipore, Bloomberg reports - Thermo
    Fisher Scientific (TMO) made an unsolicited takeover offer of about $6B for
    Millipore (MIL), Bloomberg reports, citing a person close to the situation.
    Millipore hired Goldman Sachs as financial adviser after receiving the bid
    and a deal could be agreed as early as next week, Bloomberg said.
    -Thermo Fisher $6B bid for Millipore includes debt, reports CNBC. (This means that they are paying less a premium for MIL. Originally, thge 6b bid could have meant that they were paying 6b for the company, not taking account the debt. So they could have been paying like 7b for the company (the debt was 1b). Once the headline says that the 6b includes debt, it means that TMO is only paying a 5b premium for MIL and so isn't spending as much money. D. Feinstein bought TMO as a result.)

    1. So I was wondering why other related stocks to MIL went up. PLL, LIFE, WAT go up on this news and I aws wondering what the reason was. Is it because if MIL is bought at a heavy premium that other sector related stocks are probably worth more in the event of another buyout? Does TMO's purchase of MIL suggest that the sector is more valuable than previously thought? Is the company's valuation of MIL more important than the market's previous valuation?

    Basically, I'm wondering why other stocks in the sector went up. It is probably a very basic answer.

    -Thermo Fisher $6B bid for Millipore includes debt, reports CNBC.

    Is this a good headline for TMO? Does this mean that they are actually paying less of a premium for MIL? That's how I understood it.... Is that correct?

    3. So TMO made a 6b bid for MIL, what do I compare that 6b to to get an idea of how important it is for the acquirer? I know to compare the 6B to MIL's market cap to get an idea of how important it is for MIL, but what do I compare it to for TMO? What statistic is relevant to get an idea of how important that 6B is to TMO?