MarketWatch reports on the Centex-Pulte buyout:
Pulte Homes (PHM) said it’s buying Centex (CTX) in an all-stock deal that will create the country’s largest home builder. Pulte is offering 0.975 of its shares for each share in Centex in a deal that values Centex at $10.50 a share at Tuesday’s closing prices. Pulte said the price is a 32.6% premium to the average price over 20 days. The firms said the deal is worth $3.1 billion when including $1.8 billion in assumed debt.
The New York Times adds:
The deal comes during a severe housing crunch that has put both companies in the red. Pulte has reported net losses for each of the last nine quarters, while Centex has posted losses for the last seven quarters, Bloomberg News reported.
Both Centex and Pulte are sinking ships, but this merger may just get the new entity through until things turn around.