Motorola Fathoms Splitting 3-ways

In the past Motorola has acknowledged a desire to split into two separate companies, is currently exploring the possibility of dividing into three. By dividing into three different companies Motorola hopes to be able to raise cash and pay down debt. Motorola is said to have hired JPMorgan Chase, Centerview Partners and Goldman Sachs to seek possible buyers for its cable television and radio companies. The businesses up for sale could be worth upwards of $5 billion.

HP to Acquire 3Com

Hewlett-Packard has announced that it will be acquiring networking equipment company 3Com for approximately $2.7 billion or $7.90 in cash per each share of 3Com. The deal is expected to improve HP's business in China as well as its network gear business.

EC Objects to Sun-Oracle Deal

The European Commission has officially shown its objection to Oracle Corp's proposed acquisition of Sun Microsystems. The EC believes that a merger of the two companies would hurt competition in the database market. The Commission has to either approve or reject the deal by January 19th and despite the opposition there is no telling as to whether or not the deal is done just yet.

Opel Not Too Far Gone

G.M's decision not to sell Opel apparently has a lot to do with the fact that Opel's finances are not as far down the hole as previously believed. It was previously forecasted that Opel needed $3.3 billion in order for the company to function until 2011, however, it is now believed that it will only cost $2 billion for Opel to survive until that time. This will obviously still require a lot of government lending from both the United States and Europe, but we'll have to see how willing Germany is to giving aid to Opel, as they are particularly upset with the scrapping of the Opel - Magna deal.

CF Rejects Agrium, Again

CF Industries has announced that it has rejected Agrium's latest and supposedly "final" takeover bid. Agrium's latest offer for CF totaled $4.5 billion. The bid was increased to $92.99 per share in both cash and stock. CF still believes that Agrium is undervaluing their company and therefore unwilling to accept these offers.

Statoil Sells Interest to Chinese Company

Statoil has sold partial interest in some of its American based energy development leases to the China National Offshore Oil Corporation (Cnooc). Statoil is a major player in the Gulf of Mexico where it has won a number of leases from the U.S. government to develop the region. Cnooc apparently outbid several large companies so as to gain the deal and is now the first ever Chinese company to gain energy rights in the United States. Cnooc still needs to create an American subsidiary and the deal must be approved by the Minerals Management Service before the interest transfer goes through.

Its About Time for Stanley and Black & Decker

For 28 years Stanley Works and Black & Decker have discussed a possible merger. On Monday that nearly 3-decade long courtship came to a close as Stanley agreed to buy Black & Decker for $3.5 billion. The two tool makers will now be worth about $8.4 billion combined. The deal is expected to close in the first half of next year.

Germany Not So Happy with G.M.

After 6 months of negotiations and a decision to sell its majority stock to Magna, G.M. has decided that it doesn't want to give Opel up just yet. G.M.'s new board has decided that they want to keep Opel because it is a major part of G.M.'s global development strategy and have stated that they expect to spend $4.4 billion in order to downsize operations. Obviously, the German government is not taking this all too well. Last spring the government had provided $6.6 billion to help finance and bridge loans when G.M. had filed for bankruptcy in the U.S., a move that preserved nearly 25,000 jobs in the company. The Germans are now intent on getting that money bank, after having been so jilted by G.M. as they had worked to get the deal moving.

Germany to Stop Foreign Aid to China

In his first controversial move as German development minister Dirk Niebel has decided that Germany will not longer be giving foreign aid to China and India. Niebel has stated that the purpose of foreign aid was to help battle poverty and he has noted that neither of the economic juggernauts need the aid that they have been receiving. In 2007 Germany gave China 67.5 million Euros and in 2008 gave India 84 million Euros. Although this move will free up monetary aid for other developing nations this move could prove disastrous as it is very possible that China and/or India will take offense to these actions and retaliate against Germany. We will have to wait and see how China and India will react to Niebel's new policy.

Britian Poised to Sell Nationalized Banks

Northern Rock, the Royal Bank of Scotland and Lloyds Bank are set to be sold into the private sector by the British government. These three banks were are bailed out and nationalized by Britain during the financial meltdown. Britain has announced that no currently existing British financial institutions will be allowed to buy these banks.