Video Analysis From Hoover's Editors
Metal Ore Mining
BHP Billiton
There are acquisitions, and then there are acquisitions. BHP Billiton is trying to pull off one of the latter with its $150 billion offer for archrival Rio Tinto, another huge Australian miner with operations around the world. Rio Tinto, which itself landed at #16 on this month's Hoover's Index, has so far rebuffed the offer. If BHP Billiton can somehow complete the deal, it will be one of the few largest corporate mergers in history, and would make the combined outfit the world's #1 minerals company. BHP Billiton is no stranger to mergers: it took its present form in 2001, when Australian minerals and oil company BHP Limited acquired UK miner Billiton plc. The company is a top miner of iron ore and coal as well as a major producer of crude oil and natural gas; its operations -- which span six continents -- also include aluminum, base metals, diamonds, manganese, and stainless steel.
Department Stores & Discount Stores
Bloomingdale's
It's the most wonderful time of the year for the famous department-store chain. While its parent company Macy's has faced a stretch of tepid sales, Bloomingdale's has been aggressive in opening new locations, including an attention-getting store in New York's SoHo district, and in marketing to 35- to 45-year-old "yummy mommies" who have money to spend for stylish clothes and accessories. The company and its parent (which was called Federated Department Stores until 2005) are hoping for a strong finish to a 2007 that has been mostly lackluster for big US retailers.
Dollar Tree
Dollar Tree operates nearly 3,300 stores throughout the US, specializing in small stores in strip malls. It made headlines in November when it rolled out an e-commerce site -- unusual for discount retailers -- that allows customers to order bulk quantities of its goods, which always sell for $1 or less in its stores. Dollar Tree has grown rapidly, both through organic expansion and by acquiring smaller discount chains such as Deal$. Despite serving many of the same customers as the supposedly unbeatable Wal-Mart, chains like Dollar Tree and Dollar General have continued to grow by finding niche locations right in their customers' neighborhoods.
Computer Software Development
Cognos
Cognos has been an independent software maker since 1969, but it's funny how $5 billion can change that. In November Cognos agreed to be acquired by IBM for that princely sum. Cognos makes various kinds of Corporate Performance Management (CPM) software, including applications for business intelligence, corporate planning, executive scorecards, and performance metrics. These apps help users extract better information about their businesses and therefore make decisions that are better informed. Cognos is attractive to IBM both because its application suite fits nicely with IBM's current software offerings, and because Cognos has grown steadily (it took in nearly $1 billion in revenues for its last fiscal year) and racked up consistent profits.