Australia’s I-MED Radiology pulls $350 mln IPO due to volatility, says source: Reuters

(Reuters) Australia’s largest X-ray provider I-MED Radiology Network cancelled a A$500 million ($350.45 million) initial public offering because of volatility in global markets, a person with direct knowledge of the situation told Reuters on Thursday. I-MED’s owner, Swedish private equity firm EQT Holdings AB, pulled the sale of a 50 percent stake in the company after company representatives finished a roadshow in Asia, added the source, who asked not to be identified because he was not authorised to comment publicly. The decision to pull the sale came a day after smaller rival Integral Diagnostics priced its IPO at the bottom of a target range of A$133 million to A$157 million, but the catalyst behind EQT’s decision was overall market volatility, said the source. Australian shares have experienced substantial gyrations in 2015 as concerns about a slowdown in top trading partner China hit commodities prices. Stocks are down 6 percent so far in 2015 and the three months to end-September were their worst quarter in four years. An I-MED spokeswoman and the bank appointed to advise on the IPO, Rothschild, were not immediately available for comment. Private equity-backed IPOs have slumped accordingly, to about a quarter of 2014’s record level, as buyout firms consider holding on to their investments or trade sales to sidestep a skittish market. In June, South African insurer Hollard Group pulled a listing of its Australian unit that sought to raise nearly A$1 billion while New Zealand wood products firm Carter Holt Harvey delayed a dual Australian-New Zealand IPO worth about the same amount because of investor uncertainty. The biggest Australian listing of the year so far, software maker MYOB Ltd, is trading below its issue price, while fruit and vegetable producer Costa Group Holdings is trading at a 1 percent premium to its issue price.

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Australia’s I-MED Radiology pulls $350 mln IPO due to volatility, says source: Reuters

Payment processor First Data to raise up to $3.2 billion in IPO: Reuters

(Reuters) — Credit card processor First Data Corp said it plans to raise up to $3.2 billion from its initial public offering and will use the proceeds to cut down debt. The company was taken private in 2007 by KKR & Co LP for about $29 billion in one of the biggest leveraged buyouts before the financial crisis. Atlanta-based First Data expects its IPO to price between $18 and $20 per class A share, valuing the company at about $17.58 billion at the upper end of the range. The company plans to use proceeds from the IPO to reduce its $21.03 billion debt pile. Citigroup, Morgan Stanley, BofA Merrill Lynch and KKR are the offering’s joint bookrunning managers.

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Payment processor First Data to raise up to $3.2 billion in IPO: Reuters

Yahoo to spin off Alibaba stake despite no U.S. tax ruling: Reuters

(Reuters) — Yahoo Inc (YHOO.O) said on Monday it would proceed with the planned spinoff of its stake in Alibaba Group Holding Ltd (BABA.N) even though the IRS has declined to rule on whether the transaction would be tax free. Yahoo’s shares rose 4 percent to $28.71 in extended trading. The Web search company said earlier this month the IRS had denied its request for a private letter ruling on whether the spinoff of its stake in the Chinese e-commerce giant would be considered tax free. The spin-off will remain subject to certain other conditions including the receipt of a legal opinion on the tax-free treatment of the deal under U.S. federal tax laws, Yahoo said in a regulatory filing. (1.usa.gov/1FxLxDD) Based on Alibaba’s Monday close of $59.24, Yahoo’s 384 million shares of Alibaba are worth $22.75 billion. The value of the stake is slightly less than Yahoo’s market capitalization of about $25.98 billion based on 941 million shares outstanding on July 31 and Monday’s close. Many analysts say Yahoo’s core business is worth close to nothing without its Asian assets. As of Monday’s close, Yahoo’s shares have declined a little more than 45 percent this year. Alibaba’s shares have fallen nearly 45 percent over the same period. Investors have closely followed plans for the spinoff, seeing it as a way to unlock value from the company. Yahoo paid $1 billion in 2005 for a 40 percent stake in Alibaba, in a deal credited to the U.S. company’s co-founder Jerry Yang. Yahoo, which expects to complete the deal in the forth quarter ending Dec. 31, has been trying to revive its core online advertising business by spending more to get users on its websites. Analysts and shareholders believe the company and its stake in Alibaba would be worth more separately, as long as the spinoff is not subject to tax incurred from selling the shares.

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Yahoo to spin off Alibaba stake despite no U.S. tax ruling: Reuters

Energy Transfer to buy rival pipeline company Williams Cos: Reuters

(Reuters) — Pipeline company Energy Transfer Equity LP (ETE.N) said it would buy Williams Cos Inc (WMB.N) in a cash-and-stock deal valued at about $37.7 billion, including debt. Energy Transfer’s offer of $43.50 per share represents a premium of 4.6 percent to Williams’ close on Friday. Williams stockholders electing to receive stock will get 1.8716 Energy Transfer shares for each Williams share held.

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Energy Transfer to buy rival pipeline company Williams Cos: Reuters

Meggitt agrees to buy U.S. aerospace unit for $340 mln: Reuters

(Reuters) British engineering firm Meggitt said it agreed to buy a division of U.S.-based aerospace components company EDAC for $340 million, building on another acquisition it made last month to create a scale player in the sector. Meggitt, which will suspend an ongoing buyback programme for the rest of this year to maintain financial flexibility, is to acquire the composites unit of EDAC in a cash deal, from a group of sellers led by Greenbriar Equity Group. The deal helps cement Meggitt’s position supplying advanced composites for jet engines and airframes, following its acquisition of Cobham’s unit in August in a $200 million deal. “This decisively moves our composites strategy forward, and positions us strongly in this key growth area,” Meggitt’s Chief Executive Stephen Young said in a statement. Meggitt said it would also finance the deal through increasing previously announced debt facilities.

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Meggitt agrees to buy U.S. aerospace unit for $340 mln: Reuters