Lactalis braves political risk with Parmalat bid 26 Apr 2011 The French dairy giant has rushed out a 3.4 bln euro offer for the 71 pct of its Italian rival it doesn't already own. The bid is designed to beat an Italian government attempt to thwart the takeover by changing the law. But the lowball offer is a strange way to lure investors.
P&G goes off chips without salting shareholders 5 Apr 2011 The consumer giant is shedding its last food brand, Pringles, through a $2.4 bln splitoff and merger that avoids having to pay capital gains taxes to Uncle Sam. P&G can focus on its core portfolio of brands and Diamond Foods gets to be the largest pureplay U.S. snack company.
King of Beers dilutes itself for premium’s sake 29 Mar 2011 For $91 bln AnheuserBusch InBev, spending $39 mln on craft brewer Goose Island is a drop in the barrel. But the move highlights a trend toward premium beers as massmarket sales slump. Though valuations of brewers like Samuel Adams' Boston Beer are high, more M&A seems likely.
Europe must stiffen spine against protectionism 23 Mar 2011 More than 50 years after Europe became a free trade zone, Italy is seeking to block foreign takeovers in retaliation for French protectionism. The episode highlights longstanding weaknesses: free crossborder M&A needs faster, more agile policing by Brussels.
Parmalat assault could turn sour for Lactalis 22 Mar 2011 Activist investors in the Italian dairy group have sold their shares to French rival Lactalis for a premium, lifting its stake to 29 pct. It's easy to see why Lactalis thinks it's buying influence. But with Rome opposed, the benefits of this costly investment may prove elusive.
Italy’s anti-French bugbear suckles on dairy deal 18 Mar 2011 French camembert powerhouse Lactalis has bought an 11 percent stake in Parmalat, Italy's largest food group. Recent protests against French takeovers of Italian companies are likely to flare up. But the dispute is unlikely to degenerate into allout protectionist war.
Starbucks non-merger still gives shares a jolt 10 Mar 2011 An agreement by the Seattle coffee giant to license its brand for Green Mountain's singlecup brews generated M&Alike moves in shares of the two companies. The venture carries less risk than a takeover would. Marriage may come, but in this case living together first makes sense.
Bright Food risks its credibility in Yoplait bid 8 Mar 2011 The Chinese group has offered $2.5 bln for half of the French yoghurt maker, having failed to buy three other foreign brands in the last year. It's a brave move. There are multiple obstacles to a deal. The risk is that Bright Food's reputation as a flakey buyer is reinforced.
DuPont closing in on $6 bln Danisco deal 24 Feb 2011 Disgruntled investors say DuPont's offer for the Danish ingredients group is too low. The dissenters could be numerous enough to sink a deal. But there's no reason to think the market hasn't done its work here in finding the right takeout price for the company.
Diageo keeps M&A options with Turkish foray 21 Feb 2011 The UK drinks giant has ended a quiet patch for dealmaking with a 1.3 bln stg offer for Turkey's Mey Icki. It's a pricey transaction. But Turkey's macro story is attractive. And the deal doesn't stop Diageo taking on bigger targets like Fortune Brands' drinks business.
Bob Diamond’s M&A drive hits a nasty road bump 16 Feb 2011 The Barclays boss put his firm in the advisory game with impressive speed postLehman. Now his bankers have been spanked by a U.S. judge for secretly and selfishly manipulating the LBO of Del Monte. The episode suggests processes and controls took a back seat to league tables.
Coke loses the Pepsi value challenge 10 Feb 2011 CocaCola reported bubblier Q4 results than its smaller archrival. And it can claim broader international reach and a bigger market share. But Pepsi is better diversified and has the more realistic outlook on commodity prices, which should in turn give its shares more fizz.
Ocado’s rich share price leaves no room for error 1 Feb 2011 The online grocer's equity has risen 30 pct since IPO last July, buoyed by good results, improbable bid talk and a tech sector rally. With new investors showing interest, betting on price falls is rash. To grow into its rich valuation, however, Ocado still has a lot to deliver.
Bid rejections give reason not to like Sara Lee 28 Jan 2011 The U.S. food giant spurned takeover offers of at least $12 bln to instead spin off its meat business. The decision, along with a $1.9 bln special dividend, may just be a negotiating ploy. But there isn't compelling evidence that a split will deliver more value than a sale.
DuPont’s $6 bln Danisco bid looks safe 10 Jan 2011 Shares in the Danish enzymes group briefly rose above the value of its U.S. suitor's offer. But with an auction having already taken place, and the exit multiple looking stretched, hopes of a counterbid are optimistic. Still, it's a reminder that corporates have appetite for M&A.
Stars look aligned for uppity investors 20 Dec 2010 William Ackman and Carl Icahn have kept busy this year agitating the likes of JCPenney and Lions Gate. More companies around the world should brace for the activist treatment. A $4.3 trillion cash hoard and cheap and plentiful debt will make it easy to stir things up.
Sara Lee may be too big a bite for Brazil’s JBS 20 Dec 2010 The acquisitive South American meat giant is hungry and buying the Jimmy Dean sausage maker offers a chance to move further up the value chain to higher margins. Yet its existing debt load and Sara Lee's large coffee business makes this a tough stretch for JBS alone.
Fortune Brands split is poison pill antidote 8 Dec 2010 The combination of liquor, golf clubs and faucets never made sense but it took an activist investor to catalyze a corporate carveup. Each piece will be more attractive on its own or to suitors. The spirits business, in particular, should now lure in a Diageo bid.
Bright Food tries for third time lucky with GNC 7 Dec 2010 After two unsuccessful overseas forays in 2010, the Chinese company is near a deal to buy the U.S. vitamin retailer for up to $3 billion. Bright Food's willingness to pay up should help it win over GNC's private equity owners. But generating a healthy return may be tough.
Pepsi gets the cream with $5.4 bln Russian deal 2 Dec 2010 The U.S. drinks and snacks company's deal to buy dairy group WimmBillDann is among the largest foreign investments in Russia. The country's nascent consumer market is still a draw. The acquisition isn't cheap, but Pepsi's experience in the region should help make it work.