5 M&A Deal Stocks You Can Buy at a Bargain
The $6.8 billion cash and stock deal significantly diversifies ETP's balance sheet, giving it dramatically more exposure to crude oil, and not just natgas prices that have skimmed along multiyear lows for most of 2012. Because Sunoco's retail business can easily be split off, a large chunk of ETP's investment can be recouped after the acquisition closes. The firm is likely much more interested in Sunoco's logistics and pipeline operations anyway.
And since the deal should be immediately accretive to earnings, ETP should have even more fuel for its absolutely massive 7.8% dividend yield, even if payouts struggle in the near-term. Ultimately, Energy Transfer Partners is getting the opportunity to add a valuable business to its balance sheet at a big discount to last year's valuations, and investors can buy the ETP today for an 8% price discount from when the acquisition was announced.
To see these M&A plays in action, check out the M&A 2012 portfolio on Stockpickr.
-- Written by Jonas Elmerraji in Baltimore.