Monday M&A Activity

For those of you looking for M&A activity, Paramount Pictures has agreed to purchase Dreamworks SKG for $1.6B.  (AP report can be found here).  According to the terms of the deal, Paramount Pictures, a division of Viacom Inc., will purchase Dreamworks SKG for $775M in cash and assume $825M in debt.  Additionally, Paramount Pictures will have the distribution rights to the lucrative Dreamworks Animation SKG Inc., which includes the rights to distribute the "Shrek" franchise.

There are also a couple of rumors hitting the street this morning.

Reuters is reporting that a group of three private equity firms (Bain Capital, The Carlyle Group, and Thomas H. Lee Partners) will announce a deal to purchase Dunkin' Brands for about $2.4B.  (Reuters article can be found here).  Dunkin' Brands, which includes Dunkin' Donuts, Togo's sandwich stores, and Baskin Robbins ice cream, is being sold by French beverage company Pernod Ricard.  Earlier this year, Pernod Ricard along with Fortune Brands purchased British rival Allied Domecq for $14.2B, which previously owned Dunkin' Brands.

The Wall Street Journal online edition reported Sunday that ConocoPhillips (NYSE: COP) is in advanced talks to purchase Burlington Resources (NYSE: BR) for more than $30B.  (Reuters report can be found here).  With the price of natural gas rising, Burlington Resources' natural gas assets are seen to be the major reason for this potential deal.