Solvay-Abbott, Xerox-ACS Show No Discount: Today's Outrage

NEW YORK (TheStreet) -- Solvay Pharmaceuticals may look cheap at 4.5 billion euros, but with Abbott Labs(ABT Quote) paying in U.S. dollars against a relatively strong euro, the takeover balloons into a $6.6 billion deal.

The total price tag may reach $7.6 billion including debt that Abbot assumes and performance-based additional payments.

While no bargain, Solvay's pharma division makes more sense within Abbott's more-focused drug business than as part of a Belgian conglomerate. So this may very well be a good deal for Abbott.

I'm just noting that Belgium's Solvay is getting a good price, showing limited discounting in the mergers and acquisitions market. Maybe the global financial system is more stable than we thought.

As if to prove the point, Xerox(XRX Quote) also announced a big takeover today, agreeing to pay $6.4 billion for Affiliated Computer Services(ACS Quote). The offer values ACS at $63.11 a share, well above the 52-week high of $52 for ACS.

I'm not sure whether the price reflects ACS' value or Xerox's desperation.

Still, this looks like an interesting deal for Xerox, shares of which are only worth about $9 and have been languishing in the $4-$12 range for a year.

This is a stock that had pretty much been left for dead but is getting its Lazarus moment now thanks to this bold push into the services industry by Xerox CEO Ursula Burns.

It's good to see deals getting done, but it's a little surprising to see companies willing to pay up in this environment.

Apparently the bargain corporate shopping season is over already.

--Written by Glenn Hall in New York.