M&A Monday: Some Companies Shake Off Last Week's Volatility

Large swings in global markets last week had some investors fleeing for cover, but it appears that other investors are undeterred by the volatility. Two notably large corporations are expected to kick off this week with $1 billion+ deals. A source familiar with the matter told Reuters Sunday that cable operator Time Warner Cable TWC will purchase Insight Communications for around $3 billion in cash. Insight is owned by the Carlyle Group. The acquisition will considerably expand Time Warner's geographic reach across the midwest. Insight's 750,000 customers in Illinois, Indiana, Kentucky and Ohio would contribute to Time Warner's established customer base in New York, the Carolinas, Ohio, Southern California and Texas. According to the Reuters source, "Insight representatives approached Time Warner in recent weeks to discuss a deal after failing to reach agreement with other strategic and private equity bidders." Elsewhere Monday, offshore drilling company Transocean RIG is expected to pay more than $1.4 billion for Aker Drilling, a Scandanavian-based driller. Located in Norway, Aker Drilling specializes in ultra-deepwater semi-submersible rigs and other deep-water operations. Shares of Transocean have suffered considerably this year, as slowing markets and falling energy prices weighed on the stock. Trading above $80 in April, shares now sit below $56. "The transaction is also expected to be immediately accretive to Transocean's earnings," Transocean said in a statement.