KKR enlists Bond as agent in Asia 21 Nov 2006 John Bond, that is. The Former HSBC chairman will open up his rolodex in the Far East to help KKR keep up with Carlyle and Blackstone. That s probably a relief to executives at Ford and Vodafone. Bond s board seats may make them handsoff to a KKR buyout.
Lazard pounces on red-hot M&A market 21 Nov 2006 After a bumper day of mergers and as rivals shares also hit new highs the investment bank filed to sell $550m of new stock. Half of that will go to executives. But Lazard would be wise to use the rest to reduce its hefty debt load ahead of the next downturn. After a bumper day of mergers and as rivals shares also hit new highs the investment bank filed to sell $550m of stock.
Oger Telecom pulls overcooked $1.2bn IPO 21 Nov 2006 The Middle Eastbased group came unstuck trying to sell shares in London and Dubai at a lofty 15% premium to comparable assets. The price went down fine in Dubai but not in London. Oger pulled the float because it needed the liquidity that London would provide.
Nasdaq’s final offer tactic smart but risky 21 Nov 2006 Nasdaq will only raise its bid if a rival bid emerges or LSE's board recommends it. This shifts the pressure onto LSE boss Clara Furse. If she argues the bid undervalues LSE, Nasdaq s riposte will be: "talk to us and we can raise it". But Nasdaq's ploy has one potential flaw.
Can India catch up with China? 20 Nov 2006 Chinese President Hu is heading to India to talk about trade. He has every reason to like the trends. China leads in almost everything. India trades raw materials for manufactured goods. It s going to stay that way unless India makes some big economic changes.
Branson goes to war with Murdoch 20 Nov 2006 The Virgin boss may be fuming over Sky s swoop on ITV. He is pinning all his hopes on getting the OFT to shoot the deal down. It won t be easy. The OFT would have to show Sky has a material influence over the UK broadcaster, leaving Sky plenty of wriggle room.
Will Sam Zell dance on Blackstone’s grave? 20 Nov 2006 The Chicago property mogul selling Equity Office for $36bn has been dubbed the gravedancer for buying assets on the cheap. Now he s the one selling his company to Blackstone for an alltime high at the height of the office property boom.
When will the US fiscal crunch hit? 20 Nov 2006 The cash flow from Social Security, currently positive, is set to fall sharply after the end of the decade. Electoral politics suggest that a major fiscal reform will come early in the next presidential term.
BofA reaches out to the rich with $3.3bn US Trust deal 20 Nov 2006 Bank of America is leaping to the head of the private banking world with its purchase of US Trust from Charles Schwab. With a combined $261bn in client assets, the deal would give BofA the heft it needs to challenge the likes of JPMorgan and Citi.
Russian oligarchs flirt with US confrontation 20 Nov 2006 Evraz s $2.3bn purchase of Oregon Steel seems small fry in US politics. But the US trade deficit ensures more and larger sales to come. Globalisation isn t just putting Coke in Russian stomachs it is also creating Russian companies that dominate a range of basic industries.
Yahoo forecasts change Hollywood-style 20 Nov 2006 The leaking of the socalled peanut butter memo calling for a massive revamp has the hallmarks of an orchestrated PR campaign. It s good that Yahoo recognises it s in trouble. But CEO Semel will need to employ more than special effects to achieve a turnaround.
Nasdaq’s £2.7bn bid for LSE will be hard to resist 20 Nov 2006 Nasdaq has chosen a cunning moment to pounce on the LSE. Last week s news of fresh threats to European exchanges dented LSE's share price. But shareholders shouldn t bank on much improvement in the £12.43ashare bid. With Nasdaq now owning 29%, the LSE s options are narrowing.
Goldman’s London executive office response to conflict issues 20 Nov 2006 Sending Van Praag to London and the earlier appointment of Gnodde as cohead of Europe follow a series of controversial attempted deals. Goldman has realised that to avoid brand damage, it doesn't just need smart dealmakers; it needs a 360 degree perspective.
Freeport’s $26bn Phelps deal looks destructive 20 Nov 2006 There may be strategic rationale in combining the mining companies and diversifying their thirdworld risks. But there are no cost synergies to justify a $6.4bn premium. Even if it lowers Freeport s cost of capital, investors should be sceptical.
Breton speaks with forked tongue on Suez/GdF 20 Nov 2006 France's finance minister insists he won't give in to "greedy" Suez investors, but says any change in the terms is up to GdF boss Cirelli. Breton is clearly a man with one eye on his next job. He's determined not to carry the blame if this deal falls through.
ITV sale warms up with reported RTL bid interest 17 Nov 2006 Sure, investors can't count on an auction developing. The European broadcaster has looked at ITV before and done nothing. But NTL's approach may mean this is its last chance to buy ITV. The fact RTL has assembled private equity backing suggests it's serious.
Stork tries to frustrate hedge funds 17 Nov 2006 The Dutch conglomerate wants a court to investigate whether Centaurus and Paulson were acting in concert before they told the market. This looks like a device to frustrate the hedge funds' own attack on Stork's strategy. It deserves to backfire.
Russian economic power marred by social decay 17 Nov 2006 Entry into the WTO is now almost certain, the EU is anxious to improve trade relations, and Gazprom is riding high. High energy prices and clever leadership are responsible. But Russia could still be tripped up by cronyism, corruption and murders.
Woodside plays hardball and loses 17 Nov 2006 The Australian energy company s hostile bid for Energy Partners expires today. Shareholders are likely to reject it on price. But repelling Woodside only increases the pressure on management to find a bidder who doesn t undervalue its assets.
Italian IPO window creaks open 17 Nov 2006 Banca Generali and Poltrona Frau have both had good debuts, partly eradicating bad memories from the likes of Saras earlier in the year. Both this week s IPOs have good track records and growth potential. The window probably won t shut until poor quality stocks start IPOing.
Making Murdoch rich doesn’t make him loyal 17 Nov 2006 Ross Levinsohn made News a digital denizen and Murdoch a Web supremo by acquiring MySpace. Now Murdoch is tossing him overboard. Is this the mercurial act of a cranky old coot or the master stroke of a visionary? Ross Levinsohn made News Corp. a digital denizen and Murdoch a Web supremo by acquiring MySpace.
Private equity enters cloud cuckoo land 17 Nov 2006 Investment manias are characterized by the appearance of patently absurd valuation measures. Now private equity firms peddle the concept of implied equity when loading debt onto companies. Sucker s equity would be a better name.
CSN comes in with late £4.3bn ($8.1bn) Corus offer 17 Nov 2006 The Brazilian steelmaker is cautious. There's hardly any daylight between its approach and Tata's recommended bid. It's just 4% higher. That s not likely to be enough. Corus s two suitors may both be reluctant, but they will still have to fight for the company.
Buyout deals are laden with management conflicts 17 Nov 2006 Shareholders and independent directors rely on the advice of managers when evaluating proposed buyout offers. But with executives often promised pots of gold for staying put, it s worth asking how objective this advice can be.
Sky makes bold spoiler swoop on ITV 17 Nov 2006 By buying a 18% stake for £940m, the Murdochcontrolled broadcaster has messed up plans by NTL and even RTL to acquire ITV. An NTL/ITV combination could have been a threat to Sky s increased dominance of UK TV. Now Sky can probably keep its main rivals divided.
High yield frenzy fuelled by index-trackers 17 Nov 2006 Strong demand for the mega junk issues of HCA and Freescale Semiconductor is largely explained by low risk aversion. These bonds will soon have a heavy weighting in the high yield index. That s reason enough for many to buy.
French socialists choose style over substance 17 Nov 2006 Segolene Royal will carry the socialists torch in the presidential election next May. So far she has said little on the main issues. France is so fed up with its elites that it now wishes change for the sake of change. A serious reality check may be needed by next May.
Macquarie lightens the leverage in Techem bid 16 Nov 2006 That s counterintuitive. Don t financial investors usually gear targets up to the hilt to boost returns? True. But there can be legal problems doing this with German companies. So it may be smarter to inject more equity upfront.
At last, a boring LBO 16 Nov 2006 Reader s Digest may be the most boring company on the planet with revenues as flat and steady as the Great Plains. But that's a classic LBO profile. What's amazing is that this was overlooked while far riskier assets were gobbled up. Reader s Digest may be the most unexciting company on the planet with revenues as flat and steady as the Great Plains. But that's a classic LBO profile. What's amazing is that this was overlooked while far riskier assets have been gobbled up.
Skype/3 in first big mobile Voip deal 16 Nov 2006 The promise of free phone calls from mobiles may seem an alluring prospect for consumers and a threat to established mobile operators. But there are still problems. While Voip will be an irritant to mobile operators, it won't be much as it has been it the fixed world.