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Friday, November 20, 2009
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BUSINESS TODAY
Business Today for November 16, 2009
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Wall Street rewards IberiaBank for Florida deal
Lafayette-based IberiaBank Corp.'s stock rocketed to $53.55 in early trading Monday, up $9.15 per share or 20.6 percent, after the firm acquired the assets of two failed Florida financial institutions late Friday. IberiaBank acquired $2.4 billion in assets and $2.1 billion in deposits of Orion Bank of Naples and Century Bank of Sarasota, a savings and loan with assets of $728 million in assets and deposits of $631 million. Orion had 23 branches, Sarasota 11. The deal also gives IberiaBank loss-share protection from the Federal Deposit Insurance Corp. on $2.6 billion in covered assets. Under these agreements, the FDIC will cover 80 percent of the losses on the disposition of loans and other real estate owned up to $550 million for Orion and up to $285 million for Century. The FDIC will also cover 95 percent of losses over those amounts. Only an hour after the market opened, IberiaBank's trading volume had already tripled its average daily volume of 162,471 shares. IberiaBank said the acquisitions are expected to boost net income and earnings per share over the next several years. The deals make IberiaBank Florida's 20th-largest financial institution by deposits.
CF, Terra battle over proposed merger
CF Industries and Terra Industries Inc. continue to battle over CF’s attempts to merge through a hostile takeover after Terra has repeatedly rebuffed its agribusiness rival’s offers. Both companies are based in the Midwest and operate ammonia production facilities near Donaldsonville for the fertilizer industry. CF is urging Terra shareholders to vote for its three nominees to the Terra board — John Lilly, David Wilson and Irving Yoskowitz — prior to Terra’s annual meeting Friday. CF claims its offer of $32 a share plus 0.1034 of a CF share for each Terra share equates to a 40 percent premium on the value of Terra stock. CF said it has arranged $2.5 billion in Morgan Stanley financing to conclude the deal. Terra claims CF’s math is flawed and that the deal wouldn’t benefit the companies. “CF has failed over 10 months to make a compelling offer to Terra,” Terra officials said in a statement. “Instead, CF has employed gimmicky structures with collars, claw-backs and preferred stock … rather than make an offer that appropriately values Terra’s robust near- and long-term prospects and the significant upside value in Terra’s strategy.” CF touts a RiskMetrics Group recommendation for its three nominees to the Terra board, but Terra pointed out that even RiskMetrics finds the CF financial offer to be inadequate.
Shaw wins Western U.S. defense contract
The Shaw Group Inc. received a five-year construction contract for work at Naval Facilities Engineering Command installations in Western states, the company reported today. No dollar value was released for the indefinite delivery/indefinite quantity contract. The work covers Naval Facilities Engineering Command installations in California, Arizona, Nevada, New Mexico, Utah and Colorado. Shaw will be one of eight contractors to compete on task orders for design construction, supervision, equipment, materials, labor and delivery of facilities, including outdoor shooting and combat training ranges. Included in the contract are work for canals and channels, dams and embankments, landfill and erosion control, irrigation and landscaping, and recreational fields and parks. The work will be at U.S. Navy and Marine Corps sites.
Blackwater New Orleans signs petroleum storage contract
Blackwater New Orleans LLC has signed a deal with an undisclosed customer for the lease of four additional base oil storage tanks, totaling 20,000 barrels, at Blackwater’s system in Westwego. The additional capacity came as part of Blackwater’s acquisition of NuStar Energy's storage terminal on the West Bank in December.
NATIONAL/INTERNATIONAL NEWS
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