Mergers & Acquisitions

Dell shareholders get time to come to their senses

18 Jul 2013

With the vote on a $24 bln buyout too close to call, the PC maker put off the decision for a week. The hope of a sweetened bid from Michael Dell and Carl Icahn’s eleventh-hour lobbying proved too alluring. Sleeping on it a bit more, though, should make Dell’s hard reality clear.

Vietnam is back in the game for buyout firms

18 Jul 2013

Warburg Pincus is investing $200 million in the country’s largest mall owner at a time when retail sales growth is at a 10-year low. The U.S. private equity firm’s punt might be premature, but it isn’t wrong. Vietnam is outgrowing its bad reputation with foreign capitalists.

Baidu deal shows pain of being China tech upstart

18 Jul 2013

After the search engine said it would buy app store 91 Wireless, the seller’s shares fell almost a quarter. As China’s tech giants fight for mobile market share, small players face pressure to compete or get out of the way. Both options can leave investors disappointed.

Defence fees at Severn Trent are hard to defend

17 Jul 2013

The British water utility paid its advisers 19 mln pounds for help thwarting a takeover. Severn’s board got what it wanted. But the payout looks generous. How much work does a four-week tussle in a regulated sector, with no formal bid, really require?

Roche doesn’t need to risk prudent M&A reputation

15 Jul 2013

The pharma giant is eyeing a $20 billion plus bid for Alexion, Reuters says. The U.S. biotech group’s lucrative line in rare “orphan” drugs could help Roche diversify after recent setbacks. But the mooted price isn’t cheap, and orphan drugs’ blessed protected status may not last.

Canada’s Weston family bags decent drug deal

15 Jul 2013

Their grocery chain, Loblaw, is buying Shoppers Drug Mart for C$12.4 bln in cash and stock. It’s a smart defense against big-box retailers like Wal-Mart and Target. And though the premium is rich relative to synergies, the deal overall promises to deliver an acceptable return.

Fruity American M&A saga may be about to ripen

12 Jul 2013

Nearly 25 years after it was carved up, Del Monte could be put back together. Along the way, the food giant became part of dealmaking lore, linked to RJR Nabisco, Polly Peck and a landmark conflicts ruling. Del Monte is almost a textbook unto itself for barbarians and bankers.

Grohe should help rid Germany of locust curse

12 Jul 2013

The private equity-owned bathroom fixtures maker is mulling an IPO. Possible buyers are circling. Grohe was declared a victim of “locust investors” by a German politician a decade ago. Today it is stronger than ever, even though its mooted valuation looks a bit optimistic.

Schneider has powerful chance of winning Invensys

12 Jul 2013

The French group has tentatively offered 3.3 bln stg for Invensys, the UK engineer chaired by veteran dealmaker Nigel Rudd. A counter-bid is possible: ABB, Emerson and GE could have a look. But the “for sale” sign has hung over Invensys for months and this is a pretty full price.

New Bumi plan makes bad jam even worse

11 Jul 2013

Fresh proposals could see the Bakrie family bought out of the London-listed Indonesian coal miner by its chairman, Samin Tan. It’s far inferior to an earlier plan to cancel the shareholding. It would help investors, including Nat Rothschild, if Tan commits to sell down his stake.

Italy: fertile ground for bold foreign buyers

10 Jul 2013

Recession, paralysis, corruption, credit squeeze: no wonder Italian M&A is slow. But local firms excel in everything from fashion to engineering. Foreigners could invest in some great businesses - if only they found ways to coax Italy’s ageing entrepreneur-owners to the table.

Even mediocre M&A deals are getting a thumbs-up

9 Jul 2013

Kroger’s $2.4 bln purchase of rival Harris Teeter looks mildly value-destructive. Savings from combining the grocers equal about half the premium. Yet investors sent Kroger’s stock up. The more puzzling riddle is why so few deals are being done given the market’s hunger for them.

"Made in Italy, Owned Elsewhere" will have to do

9 Jul 2013

Loro Piana’s sale to LVMH is a cashmere bombshell. With Italy in dire economic shape, its industrialists face existential questions like whether to move HQ or sell out. Italian capitalism needs to be liberalised. The danger is that only the healthy few will have a choice.

Japan’s dealmakers deflated by Abe’s arrows

9 Jul 2013

A volley of overseas mergers has come to a near halt since Japan’s new prime minister took over last year. Volatile markets and a weak yen are to blame. Still, financial groups with cheap funding seem undeterred, and the strong case for going abroad means others will follow suit.

Buyout of teachers’ weeklies looks tricky. Discuss

9 Jul 2013

Is TSL a professional social network built on user-generated content? Or is the publisher of the Times Higher Education magazine a cyclical, ad-driven business that will struggle to grow overseas? Only the first answer will give new owner TPG top marks for its $600 mln investment.

Key proxy adviser accepts Dell bid reality

8 Jul 2013

ISS could have backed Carl Icahn’s opaque alternative rather than support the $24.4 bln bid from Michael Dell and Silver Lake. But given negative news since the deal surfaced in February, the founder’s bid – despite potential conflicts – is the percentage choice for shareholders.

Japan’s Thai bank swoop rests on special treatment

3 Jul 2013

MUFG’s $5.7 billion offer for 75 percent of Bank of Ayudhya depends on Thailand waiving its ownership cap. The Japanese group’s long presence in the country and close governmental links may be enough to prize open the door. Other bidders can’t count on the same reception.

Tribune’s TV deal should spawn repeats

1 Jul 2013

The $2.7 bln acquisition of 19 U.S. stations comes fast on the heels of Gannett’s plan to buy Belo. Such combinations offer healthy revenue synergies and often, as for Tribune, tax benefits, too. The industry’s programming thrives on copycats. It’ll be the same for TV M&A.

Hostile $10 bln biotech bid set to go far higher

1 Jul 2013

Partners Pfizer and Bayer are natural buyers of Onyx. But Amgen has jumped in first, sending the cancer drug specialist’s shares up more than 50 pct. Onyx’s position in the hot field, rights over multiple potential blockbusters and a wide field of bidders suggest a rowdy auction.

Nokia gets options with cheap NSN buyout

1 Jul 2013

The Finnish mobile-phone maker is buying Siemens out of their equipment joint venture for a bargain 1.7 bln euros. Nokia could later float or sell NSN at a better price. Meanwhile, owning all of this restructured, profitable unit shores up Nokia as it struggles in smartphones.