Thoma Bravo UK cyber deal looks a little too good 26 Apr 2024 The buyout firm finally agreed a takeover of long-term target Darktrace, an IT security specialist. Despite the generous-looking 44% premium on offer, the buyer’s returns seem juicy given a nascent US push. That may raise the chance of shareholders asking for more money.
BHP investors throw CEO too short an M&A leash 26 Apr 2024 The miner’s stock fell 4.6% after the company proposed to buy Anglo American at a $39 bln valuation. It suggests shareholders fear boss Mike Henry will end up overpaying. But with his low-ball opener leaving plenty of wriggle room to justify upping the bid, that looks premature.
Anglo American has grounds to play hard to get 25 Apr 2024 The London-listed miner has received an all-share $39 bln bid from BHP. Anglo’s recent woes explain why, but its jumble of assets could be worth more. If boss Duncan Wanblad can show as much by outlining a plan B, he may yet see its $149 bln rival off – or extract a higher offer.
Vote no to bashing proxy advisers 25 Apr 2024 Corporate leaders at JPMorgan and AstraZeneca bridle when ISS and Glass Lewis criticize their governance. No wonder: Some high-stakes shareholder votes this year will be uncomfortable for feather-bedded bosses. Proxy firms are problematic, but they do more good than harm.
How one firm made child’s play of tricky M&A games 24 Apr 2024 Imagine buying a company without tedious negotiations, rival bids or pricey premiums. A Saudi investor pulled it off by snapping up enough shares to gain control of US retailer The Children’s Place. The feat will be hard to replicate, but there’s now a model for deal masterminds.
Kate Spade deal veto is lucky dip for trustbusters 23 Apr 2024 US competition cops want to stop Tapestry, owner of the handbag brand, from buying rival Capri. The $8.5 bln merger is a tempting target: well-known products, few political issues, and none of Big Tech’s mighty resources. That offers a chance to road-test novel legal theories.
Paramount’s sale cries out for intervention 19 Apr 2024 Shari Redstone is mulling a deal for control of the $8 bln media company with unclear upside for other shareholders. The math can just work, but a bid from Apollo would offer a safer payday. The choice is clear, even if independent investors can do nothing but press their case.
Winner’s curse unfairly haunts $7 bln paper deal 19 Apr 2024 UK-based Mondi dropped its pursuit of DS Smith, handing victory to rival US bidder International Paper. The victor’s shares have lagged the sector, suggesting its investors see little value in the deal. If the promised cost savings appear, that view may be too pessimistic.
UK music fund may walk off stage without encore 18 Apr 2024 Hipgnosis Songs Fund accepted $1.4 bln in cash from US rival Concord Chorus. The 32% premium pitches songs by Neil Young and Shakira at the lower end of their shrunken fair value. With higher-for-longer rates, it’s far from clear that its Blackstone-owned manager will pay more.
Spain’s utility saga calls for tough balancing act 18 Apr 2024 The UAE wants to buy 40% of 22 bln euro Naturgy from its private equity owners. That would usually require a full takeover, but Madrid has form on protecting key infrastructure. Spain will have to balance its desire to retain control with the need not to scare its bidder away.
Czech Sphinx may need to pay up for UK mail morsel 17 Apr 2024 Daniel Kretinsky has been rebuffed in a bid to buy the 72% of 3 bln pound International Distributions Services he doesn’t already own. The Czech billionaire has deep enough pockets to pay more for the owner of Royal Mail. But his target’s board has grounds to dig its heels in.
Berlusconis have narrow window for German TV bid 16 Apr 2024 The Italian clan’s broadcasting group MFE had banks lined up for a potential $4 bln offer for ProSiebenSat.1, Reuters reported. If they could replicate the savings from a past Spanish merger, the numbers work. The risk is the target’s shares keep rising, undermining the logic.
Goldman’s plan B unexpectedly upgraded to a B-plus 15 Apr 2024 A bond-trading surge helped lift quarterly earnings at David Solomon’s firm to $4.1 bln. Investors prefer stabler revenue sources, and Goldman’s pitch that markets activity is less volatile is born of necessity. Still, it helps that traditional banking has lost some shine.
Prysmian finds sparky US fix for dim cable outlook 15 Apr 2024 The world’s biggest maker of telco and power lines is buying a cash-rich US rival. At $4 bln, the deal is not cheap, and heavy investment in grids has slowed. Still, adding heft to the more attractive North America market should improve the $15 bln Italian company’s prospects.
Gulf bank’s M&A hunt risks shareholder injury 15 Apr 2024 First Abu Dhabi, worth $40 bln, may be eyeing Turkish lenders following a short-lived pursuit of Standard Chartered. An overseas deal would help to diversify away from corporate and investment banking, but the cost savings look slim. Better to focus on growing at home.
BP takeover is both appealing and daunting 12 Apr 2024 Abu Dhabi National Oil Company recently considered buying its $110 bln British peer. It’s unlikely to be the only suitor. BP trades at a discount to other oil giants and recently installed a new CEO. But UK security concerns and EU antitrust rules present formidable hurdles.
Société Générale CEO is pruning a decaying tree 11 Apr 2024 Slawomir Krupa agreed to sell an equipment-financing unit to local French rival BPCE for 1.1 bln euros. It’s a good price, and Krupa is right to clear out peripheral assets that languished under his predecessor. The problem is that the bank’s core isn’t alluring either.
Motor-racing deal faces quick antitrust pitstop 11 Apr 2024 F1 owner Liberty Media is doubling down on sports broadcasting rights with its $4.5 bln buy of MotoGP’s parent. CVC’s 2006 attempt to own both racing series got an EU antitrust black flag. The rise of streaming channels means mogul John Malone will have an easier ride this time.
Vivendi gives Canal+ a South African dowry 8 Apr 2024 The French pay-TV operator has offered $1.9 bln to buy out South African broadcaster MultiChoice. Despite a significant increase on an earlier bid, the price looks reasonable. Consolidating its presence in a fast-growing market may boost Canal+’s appeal in an upcoming IPO.
US bid has paper-thin lead in packaging M&A race 5 Apr 2024 Tennessee-based International Paper pegged the savings from a proposed all-share deal with DS Smith at $500 mln. If they’re viable, they help keep the US group’s investors on side. The onus is now on rival bidder Mondi to offer more, or show its own cost cuts would be higher.