International Paper in largest-ever timber land sale 4 Apr 2006 The $6bn of proceeds looks like a good price for International Paper s 5m acres. IP wants to retire debt and invest some of the proceeds. It would create more value by returning cash to shareholders.
Breuer’s departure strengthens Ackermann 3 Apr 2006 Deutsche Bank is replacing an old school German chairman with a moderniser in Clemens Boersig. That should mean more unity on strategy. That said, there may be a fly in the ointment. Breuer is leaving because of a legal dispute with Leo Kirch. A big bill could be on the way.
Wacker’s IPO looks reasonably priced 3 Apr 2006 At the top of its E70E80 range, the German chemicals group would trade at a small discount to its European peers. That looks fair. Wacker is growing faster than most of its peers and is exposed to booming Asian markets.
Global markets may be approaching a big turn 3 Apr 2006 So far, just a few fringe markets are shaky. But higher US bond yields could presage the end of a golden period. The big risk has not changed that foreigners might stop financing US deficits. It could be starting.
Novartis had to raise Chiron bid 3 Apr 2006 The Swiss drug maker had its hands tied behind its back in negotiations with rebel shareholders in the US biotech. It agreed to make the deal contingent on approval by the 56% of shares Novartis didn t control.
Texas Pacific shows investors still keen on private equity 3 Apr 2006 The largest buyout fund of all time exceeded expectations by raising $14bn, showing that investors are still bullish on private equity. It is better to be a buyout seller than a buyer in today s market. But TPG has time to start investing. And, it specializes in turnarounds.
GMAC auction ends reasonably for GM 3 Apr 2006 The outcome is not what GM and its advisers led investors to expect. They saw a strategic buyer with a sterling credit rating sweeping in. Instead GM got Cerberus in a very hairy deal that does not yet assure an investment grade rating. But GM does get its $10bn in cash.
Chirac shows weakness of French politicians 3 Apr 2006 The French president wants to soften the controversial CPE employment law. The decision undercuts de Villepin, his Prime Minister. It s close to a total surrender to the mob. After this, it's even less likely that de Villepin's government will attempt any major reforms.
Will Lucent deal open French M&A window? 3 Apr 2006 In exchange for Lucent, the wishful thinking on Wall Street is that France might soften resistance to US takeovers of local companies. Some bankers are even drawing up lists of potential sacrifices. But don t expect the window to open more than a crack.
Alcatel and Lucent merger a good idea – on paper 2 Apr 2006 The agreed merger between the French and US telecom promises an extraordinary amount of synergies. But leaving neither management in full charge looks like a fudge that could doom the group to transAtlantic squabbles.
Can private equity ever win unsolicited UK bids? 2 Apr 2006 Financial buyers are increasingly going unsolicited . But they aren t getting anywhere. Look at ITV, HMV, Kesa and LSE. Why? Private equity can t go fully hostile, it doesn t want to pay up and public companies are being more confident about saying no.