By Davit Kirakosyan
Investing.com -- Here is your Pro Recap of the biggest head-turning deal dispatches you may have missed this week: a shocking block for the Microsoft-Activision buyout in the U.K.; a scramble to save the failing First Republic Bank; a multibillion-dollar deal for Carrier Global; and Getty Images' response to an unsolicited bid from an activist investor.
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Activision Blizzard plunges on U.K.’s CMA blocking order on Microsoft’s acquisition
Shares of Activision Blizzard (NASDAQ:ATVI) plummeted more than 11% on Wednesday after the United Kingdom's Competition and Markets Authority (CMA) issued an order blocking Microsoft's (NASDAQ:MSFT) $68.7 billion pending acquisition of the company.
The CMA's final ruling cited concerns that the deal would harm competition in the fast-growing cloud gaming market, potentially leading to reduced innovation and choice for U.K. gamers in the years to come.
The agency also noted that Microsoft's prior proposed solutions failed to address these concerns, with significant shortcomings requiring regulatory oversight. Panel Chair Martin Coleman emphasized that cloud gaming requires a free, competitive market to drive innovation and choice.
The proposed merger has faced roadblocks in the U.K. since its announcement in January 2022, with an in-depth review launched in September of the same year.
According to BMO Capital, this is a shocking development as the CMA had previously concluded that the deal would not hurt competition in the console market, which seemed the more significant concern. The CMA was always clear that it was skeptical about the cloud gaming market. Activision Blizzard has announced that it intends to collaborate with Microsoft to appeal the decision.
As always, InvestingPro users got the eye-popping news on the deal, and analyst reactions, in real-time. Never miss another market-moving opportunity.
First Republic Bank may secure a rescue deal
After a shattering week for First Republic Bank (NYSE:FRC) investors, U.S. regulators were attempting over the weekend to secure a sale of the failing bank.
According to Reuters, sources say about a half-dozen banks are bidding for First Republic, among them Citizens Financial (NYSE:CFG), PNC Financial (NYSE:PNC), and JPMorgan Chase (NYSE:JPM). The bidding process is being run by the Federal Deposit Insurance Company, sources told Reuters, and a deal should be announced by Sunday night.
This week saw steep declines in the shares that began when the bank disclosed $100B in customer withdrawals the previous month.
In an effort to stabilize the bank's finances, First Republic's advisors had attempted to persuade larger U.S. banks to acquire bonds from them at above-market prices, as reported by CNBC.
Shares closed the week with a massive 75% loss.
InvestingPro subscribers got a jump on this news in real-time.
Carrier Global to acquire Viessmann Climate Solutions, analysts react
Carrier Global (NYSE:CARR) has confirmed its acquisition of Viessmann Climate Solutions for €12B in cash (80%) and stock (20%), with the stock issued directly to Viessmann Group under a long-term ownership commitment.
The acquisition reinforces Carrier's position as a leading player in the European climate and energy transition market, positioning the company for sustainable growth.
Following the announcement, several Wall Street firms lowered their price targets on the stock, including Barclays with a new target of $48.00 (from $50.00), Citi with a new target of $45.00 (from $48.00), RBC Capital with a new target of $48.00 (from $54.00), and Morgan Stanley with a new target of $49.00 (from $50.00).
Shares fell more than 7% this week.
Getty Images questions the $4B acquisition offer from Trillium Capital
Getty Images (NYSE:GETY) shares jumped 31% on Monday after activist investor Trillium Capital announced that it has made a bid to acquire the company for $10 per share in cash.
However, the next day shares fell more than 4% as Getty Images said the offer is not sufficiently credible to warrant engagement by its Board.
Shares closed the week with a 27% gain.
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