Top 3 M&A Deals Of The Day (TUDO, YOKO, PCBC, ZOLL)
Tudou Hldg Ltd (ADR)(NASDAQ:TUDO) was agreed to be bought by Youku Inc (ADR)(NYSE:YOKU) in all stock deal worth $1.10 billion. The deal would help Youku to increase its market share in the fragmented Chinese online video market, where TUDo owns 21.80% and YOKU captures 13.70%.
Once the deal is completed, the combined entity will be named Youku Tudou Inc, and headed by Youku chairman and CEO Victor Koo. Tudou’s CEO Gary Wang will join the new entity’s board of directors.
As per analysts, merging both these companies would a great deal for Youku Inc, since it already hold a one third share of a market, which has been facing severe competition for over more than 450 million Internet users.
Shares of YOKU skyrocketed 150% to $38.47 after reaching life time high of $42.81 and shares of YOKU also climbed 14.07% to $28.53, off session high of $31.35.
The next notable deal is between Pacific Capital Bancorp (NASDAQ:PCBC) and UnionBanCal, where the later has agreed to buy Pacific Capital for $1.51 billion or $46 a share, representing a healthy premium of about 60% to the company’s Friday close.
Once the deal activated, UnionBanCal would be able to increase its ealth management and banking presence in Santa Barbara and the central coast. UnionBanCal will add Pacific Capital’s 47 branches to its 400-plus branches spread across California, Washington, Oregon, Texas and New York.
Shares of PCBC soared 57.23% to $45.11 after hitting new 52-week high of $45.45 earlier in the session.
Lastly, ZOLL Medical Corporation (NASDAQ:ZOLL) was agreed to be acquired by Japanese chemical manufacturer Asahi Kasei Corp. in exchange of $2.2 billion.
As per deal announced Monday, Asahi is offering $93 a share for each Zoll share, a 23.8% premium over Zoll’s closing price of $75.10 on Friday.
The deal would help Zoll tp expand its health care business, an area that Asahi has identified as a key sector of growth. Zoll’s leading position in resuscitation technologies was particularly attractive.