Mergers & Acquisitions

RTL is a gamble on the future of old-fashioned TV

17 Apr 2013

Bertelsmann is reducing its exposure to TV by selling a chunk of RTL. The German broadcaster seems well-placed to deal with the status quo, but the longer term prospects are less clear. Internet distribution channels present free-to-air terrestrial TV huge headaches.

Wall Street crime fighters need trustbuster tips

16 Apr 2013

New Department of Justice antitrust chief William Baer is near a deal with AB InBev and backing off defense lawyers in some cases. He’s also putting corporate wrongdoers in jail. Prosecutors still chasing bankers should follow his lead and get wiser about picking their battles.

End of an era for the Xstrata gravy train

16 Apr 2013

The miner’s outgoing CEO will get 14 mln stg for yielding the top job at the combined Glencore Xstrata, instead of serving out a six-month transition. Mick Davis is taking what’s contractually his. But pay for no work rankles. Investors and compliant boards share the blame.

Weaker yen won’t halt Japan Inc’s overseas spree

16 Apr 2013

A strong currency and stagnant home market spurred companies to a record number of foreign purchases last year. Domestic stimulus and the yen’s slide have prompted dealmakers to pause. But Japan’s ageing, shrinking population means corporations must still hunt abroad for growth.

Thermo Fisher gives corporate bidders Life

15 Apr 2013

The healthcare equipment maker is paying $13.6 bln for Life Technologies, edging out private equity bidders by about the value of the expected synergies. The buyer’s shares also rose, suggesting a rational price. After Dell and Heinz, the M&A playing field now looks flatter.

Dish $25.5 bln Sprint bid mixes hype with reality

15 Apr 2013

Buying the U.S. cellphone carrier would help Charlie Ergen’s smaller pay TV firm put its assets to work. But beating the offer from another enigmatic entrepreneur, Softbank’s Masayoshi Son, needed a stretch. Ergen’s is to claim he can find $24 bln-worth of new revenue.

CVC takes opportunistic tilt at Betfair

15 Apr 2013

The buyout giant is eyeing the high-tech bookmaker. A 35 pct premium would imply a 1 bln stg bid. Betfair has had a terrible run since floating. But its luck may be about to change. A turnaround strategy is in place. Persuading key investors to fold now might be tricky.

Bart Becht’s $10 bln coffee run has dash of Buffett

12 Apr 2013

The former Reckitt chief is leading a buyout of D.E Master Blenders 1753, the Douwe Egberts coffee house. The hot drinks world should get a jolt. Like Warren Buffett’s recent mega-bid for Heinz, this deal mixes consumer goods, cheap debt and billionaire backers.

Giant electric utility could net Uncle Sam $20 bln

11 Apr 2013

That’s what the Tennessee Valley Authority might be worth if Washington decides to sell it off. There are lots of caveats, financial and political. But it’s hard to see why the New Deal-era TVA needs to be publicly owned now. And every few billion helps balance the federal books.

Li Ka-shing offers rays of hope to Telecom Italia

10 Apr 2013

The Italian mobile business of Li’s Hutchison Whampoa could merge with the local former monopoly. The Asian tycoon may also buy out some major shareholders. This messy-sounding idea could be vetoed. But Telecom Italia lacks options and needs to end the awful status quo.

Greek banks look bail-in proof – for now

9 Apr 2013

The stalled merger of NBG and Eurobank will leave bailed-in Cypriot depositors wondering why Greek lenders are left whole. Athens’ pre-agreed bailout terms and a fear of peripheral bank runs are the reasons. That could change if Greek banks need more money.

GE shareholders close gusher on bolt-on oil deals

8 Apr 2013

Their reaction to its $3 bln Lufkin swoop is more realistic than the wowed reception an earlier acquisition got. Lufkin’s a strong player in a growing sector. But previous deals did little for margins and the latest carries a 38 pct premium. Tempering the optimism looks fair.

Merging NY banks offer rate-risk lesson for rivals

4 Apr 2013

America’s legions of small lenders have been piling into longer-dated loans, leaving them vulnerable to a spike in interest rates. New York banks Provident and Sterling were already exceptions. Combining should shield them further. Without action, their peers will be exposed.

Tele2’s Russia retreat may spur mobile competition

3 Apr 2013

The Swedish telco was hobbled in Russia by a lack of spectrum for data. Now VTB bank is buying Tele2 out for a decent $3.5 bln. Attempts to gatecrash the Kremlin-blessed deal look forlorn. And a stronger Moscow-backed player could make life harder for bigger mobile operators.

Nasdaq paying price of dealmaking gone wrong

2 Apr 2013

Nearly two years after it failed to supersize by acquiring the NYSE, the bourse is aiming smaller with a $750 mln plan to buy eSpeed. Investors erased 90 pct of the price tag from Nasdaq’s market value. That ignores the target’s income and the buyer’s cost discipline.

More hat, less cattle in M&A and patent fight site

2 Apr 2013

Texas’ renown for favoring plaintiffs in merger and intellectual property lawsuits looks overblown. Judges recently tossed several such claims that seemed headed for big verdicts and legal fees. Dealmakers and targets of patent owners need not cower before the Lone Star State.

Altimo’s $3.7 bln bid undervalues Orascom Telecom

2 Apr 2013

The Russian firm is making an opportunistic bid for the Cairo-listed telco, in which it already has a large indirect stake through subsidiary Vimpelcom. If a dispute between Orascom and the Algerian government is resolved soon, the 10 pct premium will look measly.

MetroPCS owners can forget a standalone option

1 Apr 2013

Dissident investors John Paulson and Peter Schoenfeld persuaded two proxy services that T-Mobile USA is buying its rival on the cheap and that independence is a better option. The agitating may bring a sweeter bid. But MetroPCS is unlikely to prosper or exist for long on its own.

Malone swoop frees Barclays but traps Ziggo

28 Mar 2013

Liberty Global has a paper profit of over 40 mln euros after buying 13 pct of Dutch cable company Ziggo from Barclays. It’s typically shrewd of Liberty owner John Malone - Barclays was desperate following a botched share sale. But Ziggo shareholders should have mixed feelings.

Potemkin Dell fight would have optical merits

27 Mar 2013

Even if Blackstone doesn’t buy the PC maker, bidding against Silver Lake at least looks like rivalry in LBO-land, undermining allegations of collusion. Dell’s board also comes off as rejecting the bad J Crew precedent. A phony battle just won’t help shareholders much.