Nokia’s cellphone business sold to Microsoft for $7.2 billion, which is part of Microsoft’s efforts to be a competitor to Apple, Google and Samsung. As important as the deal itself, Microsoft will also get Nokia CEO Stephen Elop. Elop will become the pick to succeed Steven Ballmer, who announced last week that within the next year he will retire from his position at Microsoft CEO.
All three of the major averages fell at least one percent last week. NASDAQ dropped 1.9 percent. The Dow has experienced losses for four consecutive weeks. During the month of August the Dow dropped 4.5 percent, the worst results it has seen in 15 months.
Verizon Communications made the third largest acquisition in corporate history. As many had anticipated, it bought the 45 percent stake in Verizon Wireless that Vodaphone, the British telecom company. The price tag hit $130 billion, but Verizon now has full control of the company and its 100 million subscribers.
Four banks, JPMorgan Chase, Morgan Stanley, Bank of America and Barclays served as advisers to Verizon for the deal. Reports indicate the four will split advisory fees totaling about $250 million.
The third big deal is Jarden, the consumer products company, making a $1.8 billion deal to purchase Yankee Candle. Jarden is known for multiple products, including the Mr. Coffee brand. Other Jarden products include Crock-Pot slow cookers and Sunbeam electric blankets. The company has said the purchase will be funded by cash, common equity, bank debt and bonds.
Private equity owner Madison Dearborn Partners LLC failed to sell for more earlier in the year, opening up the sale. Yankee Candle is the biggest scented candle company in the U.S. is expected to improve Jarden’s division for branded consumables. Adjusted cash flow on a pro-forma basis would have been expected to have been 25 percent higher for the 12-month period that ended in June, according to information from Jarden.
Yankee Candle was purchased by Madison Dearborn of Chicago, Ill., for $1.6 billion back in 2006. The company was put up for sale earlier this year. This cash deal is the second such acquisition for Jarden since April 2010. It is expected to close in the fourth quarter of this year. Barclays Capital and Bank of America Merrill Lynch advised Madison Dearborn during the deal.