Antitrust

Holding: Cross-shareholding theories are overdone

18 Apr 2017

The latest antitrust fad says even the smallish stakes BlackRock and others own in multiple rivals can reduce competition. Studies arguing such holdings led to higher airfares sparked a U.S. investigation, but the evidence is weak. It looks like an answer in search of a question.

Second Sky bid leaves Murdochs with too much power

10 Apr 2017

Regulators are reviewing Fox's $14.5 bln offer for the pay-TV firm. In 2011 they said a bid by Murdoch-controlled News Corp risked leaving control of UK media in too few hands. Though the clan's influence has waned since then, concessions should still be on the table.

LSE-Deutsche Boerse failure merits only fake tears

29 Mar 2017

Brussels has blocked the European exchanges’ $30 bln merger. The LSE’s reluctance to sell a trading platform looks like a fig leaf. A cautiously positive market reaction flags that both groups have dodged the trials of steering the deal through Brexit.

Colao trades one Vodafone risk for another

20 Mar 2017

The telco chief’s joint ventures in India and the Netherlands are a clever way to get scale and efficiency, and may help Vodafone’s valuation. The catch: investors depend on Vittorio Colao keeping his JV partners sweet. Too much success or too little could jeopardise the balance.

Even flawed UPS trustbusters beat none at all

7 Mar 2017

Brussels has egg on its face after a court overturned its 2013 decision to block the U.S. parcel delivery outfit's merger with TNT. Europe rarely nixes deals, and occasional errors are inevitable. A bigger threat to M&A is protectionism, which requires far less serious analysis.

LSE and Deutsche Boerse get a gift neither wants

27 Feb 2017

The exchange merger looks sunk after European regulators demanded a sale of an LSE trading platform. That’s not so bad - especially for LSE, which might find suitors elsewhere once Britain’s future is clearer. Besides, investors had only priced in a sliver of the deal’s benefits.

LSE-Deutsche Boerse faces Hessian headache

14 Dec 2016

While Brussels' antitrust watchdogs are narrowing their probe into the exchanges' merger, some German policymakers are increasingly uneasy over the plan to locate the holding company in London. A fuzzy mandate could make politicians in the state of Hesse hard to please.

Murdoch’s Sky sequel shorter on political thrills

12 Dec 2016

Twenty-First Century Fox's 11 bln pound bid for the remaining 61 pct of Sky looks easier than its failed 2010 attempt. Media plurality is still an issue, but can be remedied. The deal will face political opposition, but the prospect of more post-Brexit investment should help.

Trustbusters barely dent air oligopoly with Alaska

6 Dec 2016

The U.S. Department of Justice forced Alaska Air to cut code-sharing with American Airlines before approving its $2.6 bln bid for Virgin America. That'll improve competition a tad. But with the top four carriers piloting 80 pct of all domestic flights, it's just tinkering.

Paris emerges as enemy of M&A mediocrity

5 Oct 2016

France's market watchdog has blocked an all-share buyout offer for French telecom group SFR by majority shareholder Altice. Why is a mystery. But the low-ball offer was cheeky. It was not a must-have for either side.

EU offers vitamin pill to dying media patient

26 Aug 2016

Brussels wants to give media the right to seek compensation from search engines like Google that use online content.  The intention is laudable - some publishers may be losing out. But the proposal has similarities with schemes in Germany and Spain - which haven’t worked.

ChemChina’s Syngenta joy has a downside

22 Aug 2016

U.S. regulators okayed the Chinese chemical group’s $43 bln bid for its Swiss peer, and only limited spin-offs may be required. With no synergies, ChemChina needs the skills it acquires to be compelling. The fact it was waved through raises the risk they may not be.