Deals

TPG’s Asia fundraising is a sign of buyout times

14 February 2019

The U.S. private equity firm has earned poor returns in the region but it managed to exceed a $4.5 bln target for its new fund. New leadership in Australia and China provides some reassurance. Still, outsize success after relative failure is a telltale mark of a frothy market.

Evergrande’s desperation to drive could find road

24 January 2019

The Chinese conglomerate’s health unit is making another quirky bet on electric vehicles as the property market at its core stalls. Yet a $900 mln move for NEVS might make more sense than earlier purchases if Evergrande can use it to help startups overcome production problems.

Toyota JV recharges Panasonic’s battery business

23 January 2019

The two Japanese companies are uniting to power electric vehicles. It should provide a technological step forward for the $200 bln automaker, but also reduce Panasonic’s dependence on Elon Musk’s Tesla. Toyota’s control, though, may yet limit plans to sell to other manufacturers.

Disruption will be the mother of M&A in 2019

26 December 2018

Technological change will bring creative dealmaking – think Altria’s $13 bln investment in vaping outfit Juul. U.S. companies have cash, and buying into the new economy may beat building. The risk is the advertising problem: at least half the money may be wasted.

Mike Bloomberg can learn from Thomson Reuters

6 December 2018

The former New York mayor says he’ll try to sell his financial-data empire if he wins the 2020 presidential race. Lucky for him, money is plentiful for a buyout that could be valued at $40 bln. And there’s a blueprint he can use: Thomson Reuters’ sale of Refinitiv to Blackstone.

AT&T fails to grasp the true value of “Friends”

5 December 2018

It may let Netflix keep the TV show for around $100 mln, more than triple the price last time round. Given AT&T plans to launch its own video service, depriving a rival of a blockbuster could have been smarter. Maybe Time Warner’s new owner isn’t cut out for the media shark-tank

Blackstone’s Baltic push can defy sketchy optics

13 September 2018

A consortium led by the buyout group is buying 60 pct of Baltic bank Luminor for 1 bln euros. It’s oddly timed, given high-profile money-laundering cases have tainted the local market. But Luminor looks cleaner than most and offers some cost-cutting opportunities.

Vodafone’s new CEO has sticks to repel activists

5 September 2018

The $57 bln telecom group’s sagging shares may have attracted Elliott’s attention. Newly-promoted Nick Read needs to show he can afford the pricey Liberty Global deal and still pay a fat dividend. Cost cuts and mobile-towers sales would soothe investors’ worries.

Revamped U.S. deal reviews are skid risk for Tesla

16 August 2018

Saudi help in a buyout could spur national-security scrutiny under new powers. Tesla’s tech might be deemed critical, while D.C. also worries about China's ambitions. Rules and pilot programs are works in progress, but it's another uncertainty for CEO Elon Musk’s convoluted plans.

KKR’s Taipei deal hints at Asian daring

23 July 2018

The buyout firm led by Henry Kravis is leading a $1.6 bln takeover of chemicals maker LCY. Taiwan has been a tough market for private equity, including KKR. Slow growth and tensions with China add concerns. As dry powder in the region grows, the risk calculus may be changing.

Vedanta digs just deep enough to leave London

2 July 2018

Chairman Anil Agarwal’s offer of a 28 pct premium for the mining group’s 2.3 bln pound UK unit is probably enough for investors spooked by deadly protests. They can invest directly in the Indian operations anyway. And a simpler structure paves the way for more dealmaking.

AT&T and Comcast alike in debt, not in risk

18 June 2018

Big acquisitions will leave the telco and cable firm with more than $170 billion of debt each. At first, Comcast’s bid for bits of Fox would create the heavier relative leverage load. But it’s AT&T’s recently closed merger with Time Warner that looks more vulnerable.

Smurfit Kappa loses a suitor, may gain an activist

6 June 2018

The Irish paper group irritated shareholders by stonewalling a 9 billion euro offer from International Paper. And it trades at a discount to rivals. Hitting ambitious targets would help close the gap, but an impatient investor could push for a breakup.

CBS, Shari Redstone litigate selves off M&A rails

17 May 2018

A judge denied the $20 bln media firm’s restraining-order request against its controlling shareholder. But CBS may be able to argue Redstone is breaching her fiduciary duty. It almost ensures a long legal drama that’ll shunt deals with Viacom or other companies onto the sidings.

Vodafone’s $22 bln deal is worth financial strain

9 May 2018

The UK mobile group is buying Liberty Global’s German and eastern European assets. Boss Vittorio Colao is funding the deal with debt and funky convertible bonds. He can point to juicy cost savings to quell any concerns about Vodafone’s creaky balance sheet.

WPP’s post-Sorrell era starts with glimmer of hope

30 April 2018

The UK ad group’s sales were broadly stable in the first quarter, allaying fears that the exit of long-time CEO Martin Sorrell would prompt clients to flee. And buyout group CVC may be eyeing WPP’s market-research arm. Together that warrants a smaller valuation discount to peers.

Once-bitten merger arbitrageurs are twice Shire

27 April 2018

The $62 bln Takeda bid should in theory be an attractive hedge-fund plaything. A yawning gap between the offer value and the target's share price suggests otherwise. Multiple currencies and time zones act as deterrents. So too do the scars from Shire's deal with AbbVie.

Sky upside depends on Disney-Fox irrationality

25 April 2018

Brian Roberts’ Comcast formalised a $31 bln bid for the UK group. Rival suitors Bob Iger and Rupert Murdoch, of Disney and Fox, will struggle to match the U.S. cable giant’s synergies. Sky investors betting on a counteroffer must hope the media moguls ditch financial logic.

Poker group bets $5 bln on Sky-high sports growth

23 April 2018

Canada’s Stars Group is buying UK online sports-gambling specialist Sky Bet. The price is more than current owners CVC and Sky would have got in a mooted IPO. For Stars, the debt-heavy punt only works if Sky Bet’s rapid growth continues - or the U.S. relaxes sports-gambling laws.

Shire makes needy suitors work for risky bet

19 April 2018

The London-listed pharma group has rejected a 42 bln pound offer from Osaka-based Takeda, and may now face a bid from Botox-maker Allergan. Shire’s business has its challenges, but its would-be acquirers have strategic issues and need a deal. The risk of overpaying is going up.