why STOCKS NEWS US-Pulte Homes to buy Centex for 1 3 billion?
Pulte to Buy Centex in Housing Bet By MICHAEL CORKERY Pulte Homes Inc. said it plans to acquire Centex Corp. for $1.3 billion in stock in a deal that would create the nation’s largest home builder and amount to a big bet that the housing market is nearing bottom. The surprise deal is the largest merger in the home-building industry since the housing downturn began about three years ago and comes amid mixed signals about whether the worst is over. The merged company would control nearly 190,000 housing lots in 29 states, one of the largest land supplies in the industry and be a major builder of homes for first-time home buyers and retirees. Through the transaction, which must be approved by shareholders of both companies, Pulte would be able to tap Centex’s $1.7 billion in cash. That would give the combined company $3.4 billion in cash, the most in the industry and a critical factor in paying down debt and maintaining operations while home sales are slow. The merger also would give Pult
Pulte Homes Inc. said it plans to acquire Centex Corp. for $1.3 billion in stock in a deal that would create the nation’s largest home builder and amount to a big bet that the housing market is nearing bottom. The surprise deal is the largest merger in the home-building industry since the housing downturn began about three years ago and comes amid mixed signals about whether the worst is over. Sources: http://online.wsj.com/article/SB123918568152500763.
