Mergers & Acquisitions

China’s insider culture stains CNOOC foreign bid

30 Jul 2012

The Chinese oil producer’s $15 bln bid for the Canadian Nexen isn’t directly threatened by the U.S. SEC insider trading complaint against a billionaire close to CNOOC. But the case will fortify critics who say that China has a long way to go before it can play by global rules.

Apple puts its finger on a security gap

27 Jul 2012

The iPhone maker is buying AuthenTec, a fingerprint technology maker. The $356 mln price is only a long weekend’s cash flow for the gadget giant, but the deal is still among its biggest. It suggests Apple sees the need to fortify device defenses for growth areas like payments.

Asian conglomerate owners owe Heineken a toast

25 Jul 2012

The Dutch brewer’s $6bn bid for its beer venture with Fraser and Neave should prompt the Singapore drinks and property group’s independent directors to consider a full-blown breakup. Even after the recent rally in its shares, the pieces are worth some 20 pct more than the whole.

CNOOC’s state control is a paper tiger

24 Jul 2012

The bidder for Canada’s Nexen is the smallest and most Western looking of China’s three oil majors. Moreover, lines of power between China’s oil producers and politicians run both ways. CNOOC may have a gusher of governance anomalies, but foreign regulators have little to fear.

China Inc not letting politics get in way of M&A

24 Jul 2012

A once-a-decade changing of the Communist Party’s top guard was supposed to hold back the ambitions of state enterprises, at least temporarily. But CNOOC has now kicked off a hefty $15 bln outbound takeover. Maybe, seen from Beijing, there’s no such thing as a bad energy deal.

CNOOC has work cut out to justify Nexen premium

23 Jul 2012

At $17.9 bln, the Chinese oil giant is valuing its Canadian rival’s enterprise at almost 4.5 times estimated 2012 EBITDA. That’s on par with Nexen’s peers even though it has been trading at a big discount. For CNOOC to get its money’s worth will require a major turnaround.

CNOOC pulls out stops to make Nexen bid palatable

23 Jul 2012

The Chinese oil giant is paying $15.1 bln for the Canadian producer, a whopping 61 pct premium. The deal also comes with sweeteners to placate protectionists, including CNOOC promises of a secondary HQ in Calgary and a listing in Toronto. It will be hard for Ottawa to say no.

Can Citic avoid the investment bank buyer’s curse?

23 Jul 2012

The Chinese securities firm is paying $1.3 bln for Credit Agricole’s CLSA. Avoiding another Dresdner/Wasserstein, Nomura/Lehman or Credit Suisse/DLJ would be hard for any bank - much less one controlled by Beijing. Arm’s length management alone is unlikely to make this deal different.

Don’t rule out a future SGX bid for LSE

23 Jul 2012

Singapore’s bourse denies holding deal talks with the London Stock Exchange. That’s no surprise: most recent stock-exchange M&A has failed, and the LSE is mid-way through an important move into clearing. Still, an eventual $5.7 bln offer could make financial and strategic sense.

Heineken tries to take the Asian Tiger by the toe

20 Jul 2012

The Dutch brewer launched a $6 bln bid to take control of Asia Pacific Breweries, its longtime Asian partner and Tiger brand owner, pitting it against a thirsty Thai beer mogul and Kirin. It’s a bold move for conservative Heineken that will test Singapore’s corporate governance.

Lloyds settles for cut-price branches sale

19 Jul 2012

The UK lender will sell 632 branches to Britain’s biggest mutual for about 750 mln stg. That’s about half the original asking price, and less than half the sum comes upfront. But the tag reflects depressed values for listed banks. And at least this is off Lloyds’ to-do list.

Chinese MBO boomlet may take necessary breather

19 Jul 2012

Depressed shares of U.S.-listed Chinese firms had attracted management buyouts from founders - a rare bright spot for bankers. But the troubles of New Oriental Education - an SEC probe, short-seller allegations and 60 percent stock slide - are likely to halt this trend for now. 

How can India’s Liquor Baron keep his Kingdom?

19 Jul 2012

Vijay Mallya’s woes at Kingfisher Airlines are infecting the rest of his empire. The airline’s debt is backed by guarantees from his holding company. Unless he saves Kingfisher, he risks losing another jewel in his crown. And Diageo and Heineken are waiting in the wings.

Thai Bev dons beer goggles for taste of Tiger

19 Jul 2012

Thai Beverage has spooked Heineken by paying $3 bln for a piece of the Dutch brewer’s Singaporean partner. It is paying a hefty premium and racking up big debts for less than a fifth of the target. It needs more to make the finances stack up. That will be a tall order.

Vivendi will struggle to get clean Activision exit

18 Jul 2012

Shareholders in the French conglomerate will be glad it’s mulling options for its $8 bln controlling stake in the U.S. software developer. The snag is the sheer size of the desired deal. Vivendi may have to sell the holding in pieces - or simply wait for a stronger M&A market.

Heineken can’t let Asia Pacific Breweries get away

18 Jul 2012

A Bangkok beer mogul has upset the equilibrium in a JV that’s been key to the Dutch brewer’s Asian footprint since 1931. Thai Bev is jockeying to take control of Fraser and Neave from Singaporean bank OCBC. Heineken may need to dig deep to ensure its position in the region.

Whitehaven should give Tinkler cautious welcome

17 Jul 2012

Nathan Tinkler sold assets to the Australian coal producer months ago. Now he’s turning the tables, offering a 50 pct premium for Whitehaven itself. There is some logic to the move. But Whitehaven needs to be sure he can deliver before giving its approval.

Cove game could end with a knockout

16 Jul 2012

The five-month battle for Mozambique gas explorer Cove Energy is coming to a head. Big new finds have increased the stakes in the bidding war between Shell and Thailand’s PTT. PTT’s May offer of $1.9 billion is the highest on the table. But the UK major can almost certainly top it.

Dentsu bet on UK ad men is mad dash for survival

13 Jul 2012

That explains why investors only lightly punished Japan’s ad giant for overpaying to buy Aegis. With Dentsu’s home market shrinking and a chance to earn 5 pct on its cash abroad the deal may not look so terrible - but only if Dentsu can keep its new Don Drapers from jumping ship.

Valentino makes Permira look not shabby nor chic

12 Jul 2012

Permira’s top-of-the-market acquisition of Hugo Boss and Valentino in 2007 looked like extravagant folly. Five years on, the buyout firm has sold Valentino to the Qatar royal family for a punchy price. That leaves its fashion binge looking respectable, if not glamorous.