Monday Merger Mania

'Merger Monday' has come out of hibernation with the market's downturn apparently encouraging some deal makers to return to the table and take advantage of the drop in share prices.

Yet investors seem more cautious, and were busily driving down stock in many of the deals announced Monday and over the weekend.

In the largest deal to surface, McKesson (MCK) finally struck an agreement late Sunday with healthcare software maker HBO & Co. (HBOC) in a $14.1 billion stock deal to create the country's largest health care services company.

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McKesson (MCK)
Also on the plate: grocery store chain Kroger & Co. (KR) confirmed Monday that it's buying Fred Meyer Inc. (FMY) in a stock and debt deal valued at about $8 billion.

Once the deal's completed, Kroger will see annual sales of some $43 billion and control 2,200 supermarkets. The terms call for Fred Meyer shareholders to receive one newly issued share of Kroger. Kroger will assume $4.8 billion of Fred Meyer's debt as well.

Clorox said it's purchasing consumer products maker First Brands for about $2 billion in stock and debt, launching First Brands' shares up 53 percent Monday.

The merger will create one of the largest consumer brands companies. Danbury, Conn.-based First Brands (FBR) is the parent of such products as Glad plastic wraps and Johnny Cat cat litter. Clorox (CLX) is a $2.7 billion Oakland, Calif., company making laundry and home products as well as insecticides.

Greyhound's (BUS) on Monday announced it has accepted a buyout offer from Laidlaw (LDW), the Canadian owner of Greyhound Lines of Canada in a deal valued at $650 million.

Under the terms, Greyhound shareholders will receive $6.50 per common share with up to $4 of each share converted into Laidlaw stock, the company said.

Intel (INTC) on Monday announced it's buying Shiva Corp., (SHVA) a remote access provider, in a bid to expand its networking product line.

Under the agreement, Shiva shareholders will convert each of their shares for $6 in cash.

The deal comes on the heels of Intel's announcement Friday that it will take a 6 percent sake in semiconductor part maker Micron Technology (MU) in a deal worth $500 million.

Written by Emily Church