Zynga, Kodak, Peabody: 3 Deals to Watch

NEW YORK ( TheStreet) - Like Groupon, Zynga ( ZNGA) is looking at an early November IPO, according to reports from the Wall Street Journal citing people familiar with the matter.

Last week, Groupon re-filed its IPO papers and targeted November 4th as the date it will sell shares to the public. At $1 billion, Zynga's IPO's will be the one of the ten largest public offerings of the year, according to data compiled by Bloomberg.

In a Mid-October filing with the Securities and Exchanges Commission, Zynga stated it would push ahead with its $1 billion listing, this time on the Nasdaq. The announcement came on the heels of Ubiquiti Networks' ( UBNT) Oct. 13 initial public offering, which was the first IPO of the fall and signaled a thaw in the market for selling shares to the public. Zynga's decision also was a reversal of a previous August delay of an offering.

Like Groupon, in its most recent filing, Zynga's financial picture and growth looks to have improved since it pulled IPO plans this summer. The online gaming and virtual goods seller, most popular for its Zynga Poker, FarmVille, Mafia Wars and CityVille games reported it nearly doubled the number of patents it holds. According to the filing, the company's revenue has also nearly doubled in the first six months of the year to $522 million, but its loss has expanded to $31.4 million.

>>14 Stocks That Could Get a Boost From a Zynga IPO

A day after accepting a $4.9 billion joint bid with Peabody Energy ( BTU) for Macarthur Coal of Australia, ArcelorMittal ( MT) has now walked away from the deal, according to a press release. As a result, Peabody Energy will take full control of the takeover venture.

Peabody shares fell more than 6.7% to below $38.21 in early trading. Its shares have fallen over 40% year to date.

It's a change in course from last week when the Indian-steelmaker ArcelorMittal and U.S. coal giant Peabody announced they'd received approval from Macarthur's largest shareholder China's CITIC to take a majority stake in the world's largest miner of the coal used to make steel. After the approval, on Friday the partnership reported it had taken a near 60% stake in Macarthurs shares. After the share purchase, Peabody's chief executive said, "We are pleased to obtain a controlling interest in Macarthur Coal and look forward to advancing the company's operating performance and growth initiatives."

In a Tuesday announcement of a termination to the deal, ArcelorMittal said it would remain a shareholder in the venture for 90 days before it walks away, under its rights in the partnership. "ArcelorMittal believes that it is more appropriate to focus its capital elsewhere in its business," the company said in a statement. "ArcelorMittal considers that the capital commitment that would be required to retain its Macarthur interest and grow it materially further, exceeds what is appropriate to allocate to a business that ArcelorMittal does not fully control and consolidate."

The walk-away by ArcelorMittal, the worlds largest steelmaker, signals that U.S. coal makers will continue to double down on the coal business in spite of falling commodity prices and increased environmental concerns. In June, Alpha Natural Resources ( ANR) bought Massey Energy for $7.1 billion.

Eastman Kodak ( EK) has held talks with hedge funds about raising roughly $900 million in rescue financing as it tries to sell its patents, people familiar with the matter told The Wall Street Journal.

Kodak has held discussions since about mid-September with hedge funds Cerberus Capital, Silver Point Capital, Centerbridge Partners and Highbridge Capital, according to sources - though the Journal cautions that discussions are preliminary and might not lead to a deal.

Kodak wouldn't comment on specifics of any new financing, but a spokesman told the Journal, "As a matter of course, we are always assessing the financing strategies available to us."

Reports surfaced in August that Kodak, the struggling imaging company, was working to sell off its potentially lucrative patents to raise capital. Digital-imaging patents owned by Kodak could fetch as much as $3 billion, according to analysts.

After companies like Google began pursuing patent acquisitions, Kodak Chief Executive Antonio Perez said in his second quarter earnings call that the company could sell 10% of its 1,000 patents plus portfolio to raise capital. On the call Perez said that for the remainder of 2011, the company expected to raise between $250-to-$350 million from the sale of intellectual property.

Currently, Kodak is also litigating some of its digital patents, which Perez said, "we remain confident that the patents being litigated will be found to be valid and infringed." It also hired investment bank Lazard Frères to advise it on patent sales.

On Perez's call with analysts, he said the company expected to end the year with $1.6 billion in cash and said Kodak would raise the $600 million needed to hit the projection through sales of assets and successful patent infringement litigation. Perez said, "We continue to move projects through the divestiture process and seek resolutions with companies who are using our patented technology in their products."

The company has reported quarterly losses of over $100 million since this point last year, according to quarterly filings. Kodak also has been bleeding cash. It lost $847 million in cash from operating activities in the most recent quarter, a loss that's accelerated over the year.

The Rochester, New York -based company's shares are down to $1.28, a fall of more than 75% year to date

On Sept. 23, the 131-year-old company said it drew $160 million of its credit line, causing shares to fall sharply. That week, Fitch cut the Rochester, N.Y.- based company's ratings to CC from CCC and said, "a 'CC' rating signifies that default of some kind appears probable."

According to the Kodak Web site, 80 Academy Awards "Best Pictures" have been shot on Kodak film. Recently, it switched from selling individual cameras and film businesses to more digital based scanning and printing products. According to company filings, nearly 90% of operating income came from consumer digital products.

-- Written by Antoine Gara in New York