Mergers & Acquisitions

Analyst tie-up merely defers research bloodbath

20 November 2018

AllianceBernstein is set to buy Autonomous Research. The deal, for an undisclosed sum, endorses the value of independent insight in the wake of new European rules. But it also acknowledges that asset managers will continue to cut budgets, hitting less-celebrated rivals.

Colfax trades aging industry for aging Americans

19 November 2018

The industrial outfit is pivoting to healthcare by acquiring orthopedic-device maker DJO from Blackstone for $3.2 bln. Baby boomers’ growing need for knee braces and implants ensures a healthy market. But loading up on debt makes this a stressful way to chase perpetual youth.

Anta deal would be a marathon not a sprint

19 November 2018

Tencent may join the Chinese sportswear company and others in their $5.3 bln approach for Salomon owner Amer. The price, plus initial hits to the margin and dividend, worry shareholders. And yet if Anta could replicate what it did with Fila, the acquisition might pay off in time.

GE may be canary in credit market’s coal mine

15 November 2018

The firm’s bonds tanked this week even as an asset sale briefly lifted its shares. That’s a warning shot for all credit investors. U.S. companies carry more debt than ever, and quality has deteriorated. Rising interest rates and slowing growth could make this a big problem.

Dell puts $2 bln price tag on VMware resistance

15 November 2018

The PC maker’s second attempt to go public by buying out its subsidiary’s tracking stock should work. A higher valuation, extra cash and a board seat address skeptics’ main concerns, and have won over Elliott and others. The rewards of acceptance outweigh the risks of voting no.

Johnson Controls shows value of recharging early

13 November 2018

The conglomerate is selling its car-battery unit to a Brookfield-led investor group for $13 billion. The business has been humming but its lead-acid technology risks being overtaken by lithium-ion powered electric cars. That makes private equity a better ownership vehicle.

GE eases blow with Baker Hughes share sale

13 November 2018

The $70 billion industrial company is selling a chunk of its 62 percent stake in the oil-services firm a day after it said it urgently needed cash. The timing isn’t optimal. But it is better to do something than nothing, and GE can test the waters while saving dignity.

Elliott’s Athenahealth deal leaves sickly odor

12 November 2018

The activist is helping take private the healthcare firm it started agitating against 18 months ago. But at $5.7 bln the deal is some 16 pct below its May offer – and Elliott is relying on a partner to buy the lion’s share. Such tactics may not play well against future targets.

SAP-Qualtrics deal may be mutually good experience

12 November 2018

Rather than go public the U.S. customer and employee feedback outfit is selling to the German giant for $8 bln, over $3 bln more than IPO expectations. Though it casts aside the Qualtrics founders’ desire for control, it could still be a smart long-term choice for both companies.

Globalization gives new lease on life to Fortune

9 November 2018

Meredith is selling the business magazine to a Thai executive for $150 mln. Chatchaval Jiaravanon reckons its rankings, CEO profiles and mover-and-shaker events will play well in Asia. It’s an ironic twist for the U.S. publication with Beijing and Washington fighting a trade war.

Carlyle dials up a smart way to double dip

8 November 2018

The private-equity shop made a killing on its CommScope LBO. Now it’s helping the embattled telecom-gear maker finance its $7.4 bln offer for Arris. The deal is highly leveraged and at the top of the cycle. Buying converts, though, gives Carlyle both protection and upside.

Casino M&A regulatory pushback worth the gamble

8 November 2018

More trouble at Wynn could make it a takeover target. MGM may place its chips on Caesars. Watchdogs take a hard line on casino deals. But with legalized sports betting and a drop in table gambling challenging the Las Vegas Strip, bulking up may be the safest way to beat the odds.

Australia’s CKI veto scrambles the China message

8 November 2018

Canberra is set to block the $9.4 bln takeover of its biggest gas pipeline company by an arm of Hong Kong's CK Hutchison. APA shares have lagged, hinting at some risk. Timing the news to coincide with a much-vaunted trip to repair ties with Beijing, though, looks careless.

High-frequency trader finds Virtu-ous M&A circle

7 November 2018

Doug Cifu’s outfit is embracing diversity by acquiring agency-brokerage and analytics shop ITG. The deal is also practically free insurance against a market downturn as cost cuts should pay for most of the $1 bln price tag. That should make Virtu Financial a fitter player.

Symantec LBO offers more potential than threat

6 November 2018

A possible buyout of the troubled $14 bln software firm by private-equity shop Thoma Bravo checks many boxes. The valuation isn’t stretched, cost cuts are possible, and cybersecurity is booming. Symantec’s history of internal troubles and rising competition could be potholes.

Private equity could scratch Nestlé skin-care itch

6 November 2018

The KitKat maker is selling a unit specialising in psoriasis and acne treatments. Rival consumer groups may be put off by the business’s tricky mix of products and low margins. Private equity firms, already piling into the dermatology sector, would make a more logical owner.

Holding: M&A’s big MAC attack headed for retreat

5 November 2018

If Boston Scientific manages to nix its $275 mln deal with Channel Medsystems, it’ll be only the second Delaware case of a buyer able to walk after a material adverse change. More likely the courts will toss both cases at trial or on appeal. The upside should be clearer rules.

Naspers’ Vision Fund-lite carries less baggage

5 November 2018

The South African internet giant’s $8 bln answer to SoftBank’s mega-fund is quietly taking shape. Besides shunning the limelight, the Cape Town-based firm also lacks Masayoshi Son’s Saudi connection. Some of its early punts haven’t done too badly either.

Chinese M&A lessons could go to waste

2 November 2018

Buyers, in general, underperformed the market from 2013 to 2017, a new report suggests. But the country’s most acquisitive companies, such as Tencent and Ping An, delivered better returns for shareholders. Showing off those new skills will be harder in the current environment.

Wagamama may give Frankie & Benny’s indigestion

30 October 2018

Restaurant Group is splashing out 559 mln pounds – near its market value – on the noodle chain. With its Frankie & Benny’s chain struggling, it could use Wagamama’s growth. But even if the UK doesn’t capsize post-Brexit, it looks hard for the buyer to make a tasty return.