Maytag-Whirlpool trade looks treacherous 8 Feb 2006 Markets are already discounting the likelihood Whirlpool s $2.7bn offer will fail but not by nearly enough. If regulators scuttle the deal Maytag may sell for a lot less than the market seems to assume. Investors could be taken to the cleaners.
Akzo Nobel split will eliminate conglomerate discount 7 Feb 2006 It is no wonder the market is pleased with the E11bn Dutch conglomerate s plans to float its pharma division. The plan will more than reduce Akzo s persistent conglomerate discount the pharma unit is likely to attract a takeover premium.
Hopes of Boots counterbid fade on OFT report 7 Feb 2006 The UK regulator has decided not to refer the chemist s merger with Alliance Unichem for a lengthy competition enquiry. That raises the bar for private equity groups plotting a counterbid. They will have to offer a big premium to stop the deal going ahead.
Don’t be fooled by Merkel’s popularity 7 Feb 2006 Angela Merkel has been named Germany s most popular leader ever. One might have hoped she d use that to reform the country. But so far her reforms have been lame.
Permira shoots for global mega-league 7 Feb 2006 The UK group is the first European private equity fund to go for a near E10bn fund. It is also branching out into the US. Permira s main European rivals won t be able to follow immediately. This could be an advantage.
GM trades Merrill’s O’Neal for York 7 Feb 2006 This is a healthy exchange. GM needs an experienced car boss with some skin in the game to light a fire under the board. Merrill CEO Stan O Neal, who started out at GM, may have offered free advice. But for both companies his presence was becoming a liability.
GM takes some of York’s medicine 7 Feb 2006 The carmaker is adopting several of the Kerkorian ally s proposals like halving the dividend and cutting executive pay and benefits. But they are not sufficient to avert bankruptcy. Until union healthcare and pension benefits are reduced, they re no more than gestures.
German shareholders deserve vote in takeovers 6 Feb 2006 Take Linde. The German conglomerate s E12bn bid for BOC would more than double Linde s size and leave it highlygeared. Yet Linde doesn t have to offer shareholders a vote. Only the supervisory board votes and may not represent the will of minority holders.
Rise in protectionist rhetoric deceptive 6 Feb 2006 From the angst in France, Italy and the US over crossborder takeovers, it might seem like the barriers are going up. In fact, these are desperate rearguard actions which will thankfully not stop the trend towards closer integration of global economies.
Arcelor boss should stop speaking with forked tongue 6 Feb 2006 Guy Dolle is telling investors he wants to beat Mittal s hostile bid by winning the value argument. But he hasn t been giving politicians the same message. He should tell them to mind their own business and let the market decide.
Pendragon shows one can be too clever in M&A 6 Feb 2006 The UK car dealer thought it had a devious wheeze to buy rival Vardy on the cheap, offering less than a second bidder. But there was a flaw in the scheme. As a result, Pendragon lost its nerve and raised its bid a much more straightforward way of behaving.
Italian bank sellout rich in irony 5 Feb 2006 The clique that fought tooth and nail to stop BNL from falling into Spanish hands has given it to the French on a plate. Not that patriotism was ever the real motive for blocking BBVA. Power and money were always more important.
EMI/Warner merger music shifts to allegro from andante 5 Feb 2006 Warner Music and EMI have been hitting the high notes recently in part because of continuing merger music in the bass line. The industrial logic to a deal is strong, the costsavings potentially huge. But who should buy whom? EMI is the likely bidder.
BNPP’s E9bn BNL bid is not compelling 5 Feb 2006 The financial merits of buying the Italian lender at this price are weak. The immediate strategic benefits are questionable too. The best that can be said is that the French banking giant has given itself some new longterm options in a market with growth potential.
SkyePharma hurries to ignore shareholders 3 Feb 2006 The UK drug group has decided to break itself up and appoint a new chairman, despite the vocal objections of 37% of shareholders. The dissidents are merely demanding a pause and a vote. The board s haste is odd and wrong.
Have German dealmakers learned their lesson? 3 Feb 2006 The last wave of German crossborder takeovers was marked by reckless empire building and value destruction on a huge scale. But today s bidders are displaying greater discipline. That may be because they now have hedge funds to keep them honest.
Sovereign slams shareholders in political smack-down 3 Feb 2006 The Pennsylvania bank s boss has taken his fight with shareholders to his friends in the state's political arena. It looks like he ll win. Governor Rendell should veto the bill that undermines shareholders rights. It s bad news for shareholders in all the state s companies.
Massive US corporate cash pile won’t fund capex splurge 3 Feb 2006 It is often stated that corporate America's vast $2.5 trillion cash pile will finance a capital investment boom. However, when offbalance sheet liabilities like pensions and health care are taken into account, this cash mountain becomes a molehill.
Meyer achieves record $5bn hedge fund launch 3 Feb 2006 Harvard s former investment whiz made his name by delivering high returns over many years. But his new fund offers bondsized returns with low volatility and low fees. Given Meyer's profile, this could start a trend.
Gazprom’s mooted Centrica bid is all hot air 3 Feb 2006 The Russian gas giant s comment that it might bid for British energy supplier Centrica has been completely misinterpreted. It is also out of character with Gazprom s other foreign deals, which involve minority stakes with local owners providing political cover.
Nasdaq and NYSE display European affections 3 Feb 2006 The two US stock exchanges have made crystal clear their interest in playing a role in the consolidation of European stock markets. Both have their hands full right now. But neither wants to lose out on a European deal. This is just the start of the dance.
American IPO market froths up 3 Feb 2006 A handful of debuts have produced stunning firstday pops and nabbed lofty valuations amid record issuance so far this year. As a result, companies and private equity firms are frantically examining their portfolios for possible IPO spinoff candidates.
King of Beers faces shrinking realm 3 Feb 2006 AnheuserBusch, the world s biggest brewer, is in a pickle. Having sat on the sidelines of global consolidation, it s now paying a price. Its overdependence on the US hurts, as consumption and prices tank and costs rise. If M&A is the answer, a deal with InBev looks plausible.
Breton starts to talk sense on Arcelor 2 Feb 2006 The French finance minister has backtracked on his previous blind opposition to Mittal s bid. Now he says it s up to the consciences of shareholders. That's where it belongs.
Will Nippon come to Arcelor’s rescue? 2 Feb 2006 A white knight bid by the Japanese group would be great for shareholders as it could set off a bidding war with Mittal. Sadly, it looks unlikely. There s also a risk Nippon might be brought into a shareholderunfriendly deal that stops short of a takeover.
Deutsche ends good year on sourish note 2 Feb 2006 Trading hiccups and a charge for its German property debacle meant returns in Q4 dipped. But Deutsche still beat its stiff fullyear target. Ackermann has reaffirmed those targets going forwards. But that's of limited reassurance, as Deutsche's boss may not be around for long.
UAL’s return to the market could hit turbulence 2 Feb 2006 UAL s shares have recently traded at almost three times its bankruptcy valuation. But at this price, the airline is valued at a premium to its peers. It will have a hard time justifying it.
Citigroup plays it safe with GMAC bid 2 Feb 2006 By bidding through its private equity arm Citi may hope to avoid the reputational risks that are making others baulk at GM s finance unit. But Citi s bid for GMAC might not be all it s cracked up to be if it doesn t answer GM s need for a higher GMAC credit rating.
Hilton right to reject £3.7bn Ladbrokes offer 2 Feb 2006 True, CVC s offer would have valued the gaming group on a similar juicy ebitda multiple to the buyout of Coral. But the board hasn't yet had a chance to put its case for Ladbrokes going it alone. That will come with the results at the end of the month.
Unipol should return E2.6bn cash pile 2 Feb 2006 The Italian insurer should abandon hopes of buying BNL and hand back the cash it raised to fund this misguided bid. That could have a dramatic effect on the shares, which are currently betting that management will squander E1bn of it.