Construction

Hochtief scores own goal with Qatar white knight

6 Dec 2010

The German construction group is selling a 9 pct stake to Qatar Holding, making it harder for Spanish predator ACS to gain control. By inflicting dilution, Hochtief may only alienate existing shareholders whose support it needs to remain independent.

Caterpillar mines synergy gold in Bucyrus deal

15 Nov 2010

The earthmoving giant agreed to buy the mining equipment manufacturer for $7.6 bln or five times its 2004 IPO price. While hefty, the cost savings that Caterpillar is promising to harvest are worth at least 25 percent more than the $1.8 billion premium it s paying.

Germany’s meddling in Hochtief war would backfire

3 Nov 2010

Berlin says it does not want to interfere in ACS's hostile bid for Hochtief. But even offering discreet support for a white knight, including Qatar, would be a slippery slope. Furthermore, a reckless defence could backfire on the German construction group.

New Jersey becomes unlikely blueprint to governors

28 Oct 2010

Against many odds and strong opposition Chris Christie balanced this year s budget. He even killed an overpriced, if worthy, tunnel project. But pension cuts and budget obstacles still loom. His budgetary governance model shows promise, but needs further testing.

ACS bid unlikely to fall flat down under

27 Oct 2010

Aussie builder Leighton is lobbying a local regulator to preserve its independence in the event the Spanish construction group succeeds in its bid to acquire its German parent, Hochtief. Even if Leighton gets it way, it wouldn't be much of a poison pill.

Another red flag raised over UK corporation tax

27 Sep 2010

Wolseley is redomiciling to Zurich for tax reasons. The bluechip UK building supplies group will escape harsh taxes on income from its sprawling global empire. Capitalised, the savings could be worth 400 mln stg. This may add oomph to the coalition's review of the status quo.

Hochtief’s defences look thin

20 Sep 2010

The German construction group is mulling its options in the face of an unsolicited bid from Spain's ACS, which already owns 30 pct. Hochtief would struggle to dilute ACS with a big rights issue. A white knight also looks tough. That basically leaves talking up the share price.

ACS’s cheeky Hochtief offer looks tactical

16 Sep 2010

The Spanish construction group's paper bid for the 70 pct of Hochtief it doesn't own contains no premium. Hochtief investors may laugh. But the approach enables ACS to buy more shares in the market and perhaps, secure control. It will be up to the market to make ACS pay up.

M&A toolkit can, sometimes, benefit shareholders

21 Jul 2010

Research supports the idea that shareholders of acquisitive companies usually get the short end of the stick. But that s not always the case. Stanley Black & Decker, the big U.S. tool combo that merged earlier this year, is shaping up to be a notable exception.

Lowe’s still waiting for its housing bump

22 Feb 2010

Delayed gratification isn t cutting it for Lowe s shareholders. The American home improvement retailer is asking investors to trust that a sales recovery is coming, eventually. Investors are right to be cautious given the still murky outlook for housing.

Cosy Cimpor deal deprives minorities of auction

4 Feb 2010

Two of the Portuguese cement group's leading shareholders have sold their holdings to Brazilian conglomerate Votorantim. The move stymies an attempted bid for all of Cimpor by Votorantim's rival, CSN. The deal suits many constituencies except Cimpor's minorities.

China needs fertilizer more than steel

27 Jan 2010

If the Middle Kingdom's industrialization follows the course of other nations, per capita demand for infrastructure like concrete and steel will peak long before meat consumption. This may explain why M&A in agriculture, not steel, is so hot. Case in point: Vale's $3.8 bln deal.

CSN’s aggression could backfire in cement battle

14 Jan 2010

The Brazilian steel company's hostile bid for Cimpor has flushed out a rival Brazilian suitor. Camargo Correa has put forward a vague plan to acquire a minority stake in Portugal's largest cement company. But a friendly plan with possible synergies could force CSN to offer more.

Hostile bid may have its day in Portugal

11 Jan 2010

CSN's unsolicited offer for Cimpor, Portugal's number one cement group, comes after several failed hostile bids in the country. But the typical obstacles politics or quirks surrounding voting rights will be less decisive this time. The big question is whether CSN can pay up.

Rewarding bosses for going shopping is daft

4 Nov 2009

Pfizer awarded CFO Frank D Amelio a $1.2m bonus for his role in buying rival Wyeth. Executives may need incentives to sell it often means they ll lose their job. Paying for purchases, on the other hand, encourages empire building.

Tool industry engineers near-perfect deal

2 Nov 2009

Stanley Works is buying Black & Decker for $3.5bn in a deal that leaves almost nothing for investors in the two companies to fret over. If only dealmaking was always this simple.

Heidelberg strikes once-unthinkable E9bn debt deal

18 Jun 2009

The German cement maker s refinancing with 50 lenders shows how far the global banking system has come in six months. The deal isn t cheap, but the alternative would have hurt lenders more. At least now, HeidelbergCement can focus on the equally daunting task of cutting its debt.

US earnings highlight breadth of downturn

21 Apr 2009

Caterpillar is a heartland manufacturer. BlackRock is a New York money manager. Both saw quarterly revenues and adjusted profits slump to a similar extent. That underlines the scarcity of shelter from global economic trouble and raises questions for policymakers, too.

Schaeffler restructuring tests Germany’s nerve

9 Apr 2009

The government has dangled the idea of helping the struggling familyowned manufacturer. But the problem is simple: Schaeffler has too much debt following its E12bn takeover of Continental. That's an issue for Schaeffler and its banks. The state should let them take the pain.

Merckles will take pain of HeidelbergCement’s mistake

6 Apr 2009

The German cement group overpaid for UK rival Hanson at the top of the cycle. Now Heidelberg is straining under E12bn of debt. The controlling shareholder, the Merckle family, has its own debt woes. Banks may be lenient, but the family look set to lose control.