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Merger Mania Strikes On Monday Big Day Of Deals Covers Products From Paper To Cookies

From Wire Reports

First Bank System of Minneapolis made the biggest splash in the merger pool Monday when it agreed to buy First Interstate Bancorp. But before the day was over, the banks had plenty of company.

In a year that’s already set a record for corporate mergers, many of them announced on Mondays, this was a big Monday. Deals besides the First Bank-First Interstate merger that were announced Monday include:

PAPER: International Paper Co., the leading maker of paper products, sought to strengthen its dominance with a $3.5 billion takeover of Federal Paper Board Co. That merger is expected to be completed next year.

International Paper said the deal would make it more efficient, give it world-class mills in Riegelwood, N.C., and Augusta, Ga. and a facility in Scotland that is an important supplier to the United Kingdom.

Federal Paper said the deal enables International Paper to serve a broader range of customers and will be an excellent value for its stockholders.

MEDICAL GEAR: Cardiovascular products maker Cordis Corp. capitulated to suitor Johnson & Johnson, agreeing to a $1.8 billion takeover by the health-care goliath.

COOKIES: United Biscuits Holdings PLC of Britain said it was selling the Keebler cookie and cracker business for $500 million to an investment group led by Georgia-based Flower Industries, a baked-foods business.

COMPUTERS: Compaq Computer Corp., the leading maker of personal computers, said it was buying Networth Inc., a developer of computer networking products, for about $372 million.

The approximate dollar value of announced U.S. mergers this year totals an unprecedented $363 billion, said Richard J. Peterson, a spokesman for Securities Data Co., a research firm that tracks corporate takeovers. The previous record was $347.1 billion set in 1994.

“Mergers get driven by equity valuations and the stock market is at a record high,” said Gerard Smith, a managing director at UBS Securities Inc. “As long as stock prices remain high, you’ll see very high levels of M&A.”