Twitter can afford to refuse Musk’s $41 bln bid 14 Apr 2022 The world’s richest man says he’ll pay $54.20 a share for the social network, but may sell his 9% stake if the “best and final” but non-binding offer is rejected. It’s less than a week since Musk walked from a deal to join the board. Twitter has multiple reasons to demand more.
Blackstone’s Italian gambit can stay on the road 14 Apr 2022 Looking to deter a rival bid, the buyout group has teamed up with the Benettons to take infrastructure group Atlantia private. The 19 bln euro equity value looks steep. Yet inflation protection from concession assets and cash from an upcoming sale justifies the swoop.
Capital Calls: Thoma Bravo plays favorite PE tune 13 Apr 2022 Concise views on global finance: The private equity firm sells cybersecurity company Barracuda Networks to KKR.
EU bank dumpster divers still have rich pickings 12 Apr 2022 A big investor, probably Capital Group, sold 1.8 bln euros of Deutsche Bank and Commerzbank shares. Betting on the basket cases has worked well since 2020. France’s SocGen and Italy’s UniCredit may offer similar rewards now, though shareholders may have to work a little harder.
Nickel deal upheaval is unfair but reasonable 11 Apr 2022 IGO’s $820 mln bid for miner Western Areas was derailed by KPMG, prompting the buyer to increase its offer by 15%. It’s unclear whether war in Ukraine will alter the nickel market longer-term. Even so, it’s refreshing to see an adviser ditch the usual rubber stamp.
Ex-Goldman conviction is partial justice for 1MDB 8 Apr 2022 A U.S. jury found Roger Ng guilty of corruption linked to the Malaysian fund. His ex-boss who helped organize the scheme may get a lesser penalty for cooperating with prosecutors; the Wall Street firm got off with a $5 bln fine. It’s an imperfect deterrent for future miscreants.
How private LBO lenders can compete with banks 8 Apr 2022 From Thoma Bravo to Apollo, non-bank providers of credit are getting busy. No wonder, since they have some $1.2 trln to invest. They charge more than traditional lenders, but for buyout equity investors that's offset by higher risk tolerance and leverage than banks can offer.
Be ready for a wave of embarrassing DMs 8 Apr 2022 Citigroup is pausing work on blank-check vehicles. The SEC is investigating block trades. And Elon Musk’s Twitter stake and appointment to the board are raising eyebrows. As in past moments of market turmoil, sloppy communications behind the scenes may later lead to red faces.
KKR red card is a Telecom Italia own goal 8 Apr 2022 After months of fumbling, the Italian operator hung up on the U.S. fund’s 10.8 bln euro takeover approach. Stiff opposition in Italy had dampened KKR’s interest. For CEO Pietro Labriola, revamping the hard-pressed group under intense market scrutiny will be twice as hard.
Capital Calls: Credit Agricole’s Italian job 8 Apr 2022 Concise views on global finance: The French lender buys a 9% stake in Italy’s Banco BPM, making it harder for local rivals to launch a bid.
Pérez vs. Benettons will be an uphill struggle 7 Apr 2022 ACS, run by Spanish magnate Florentino Pérez, has sided with Brookfield and GIP to buy road group Atlantia, 33%-owned by the Italian tycoons. A takeover could cost 20 bln euros net of debt, but a looming 8 bln euro asset sale would help. Winning over the Benettons will be harder.
Capital Calls: Buffett’s HP bet, Gambling M&A 7 Apr 2022 Concise views on global finance: Berkshire Hathaway takes a hefty stake in the computer and printer maker; Betting group 888 negotiates a better price for buying UK bookie William Hill.
Antitrust worries can ground JetBlue’s Spirit bid 6 Apr 2022 The U.S. airline’s shock $3.6 bln bid for its ultra-budget rival offers few cost savings and could lead to higher fares. That increases the risk that competition regulators – or Spirit’s board – stop it getting off the ground. For skeptical shareholders, that would be a relief.
Money-manager deal gets asset allocation all wrong 6 Apr 2022 Perpetual’s $1.8 bln bid for J.O. Hambro owner Pendal would create an Australian giant with $180 bln under management. A 39% premium on a depressed valuation paid for using 75% in stock is hardly compelling, though. It’s a wise investment that can be structured better.
Bank bidders solve tricky German M&A puzzle 5 Apr 2022 Advent and Centerbridge revived their $2 bln Aareal deal by offering a 12% bump and letting rebel shareholders stay invested. It should work, defying the trend of failed German takeovers. The lesson is that debt-free deals with a flexible buyer stand the best chance of success.
India’s $168 bln bank merger bets the house 4 Apr 2022 HDFC Bank’s plan to buy its mortgage-lender parent at a tiny discount sparked a 10% rally in shares of both. New capital rules enable the long-speculated union. Benefits range from lower funding costs to resolving CEO succession. Preparing for a home-loan boom is the main goal.
Capital Calls: U.S. truck drivers go missing 4 Apr 2022 Concise views on global finance: Bonuses and concessions from Washington aren't enough to fill the industry's empty cabs.
Capital Calls: Microsoft’s Activision deal 31 Mar 2022 Concise views on global finance: The software giant’s $69 bln acquisition of the “Call of Duty” publisher comes with a ton of baggage. That could be why Activision shares are trading at a wide discount to the deal price.
Private equity can pull away from Wall Street 1 Apr 2022 Sponsors like Thoma Bravo are perfecting a playbook that demotes banks by tapping direct lenders for financing and sourcing transactions directly, bypassing auctions. Banks make a chunk of their annual fees from the buyout business. This threatens that pot.
Atypical bear hug should kickstart Toshiba bids 1 Apr 2022 The hostile tactic usually involves pressuring a target with a generous offer. In this case, activist investor Effissimo and buyout shop Bain are squeezing the Japanese conglomerate with an artful display of their desire for a deal. It’s getting harder to avoid running an auction.