Mergers & Acquisitions

Extra! Newspaper bidder flubs credit test

25 March 2019

MNG, owner of the Denver Post, is waving a “highly confident” financing letter from Oaktree to advance its hostile bid for publisher Gannett. Yet MNG isn’t clear if the debt specialist will even bother to lend it $1.7 bln. The tactic is as unconvincing as it is unconventional.

Peugeot needs FCA more than the other way around

25 March 2019

Carlo Tavares is reading from Sergio Marchionne’s script. A $45 bln merger would, in theory, deliver massive cost savings which could be invested in new technology. But politics makes that hard. And while PSA would gain a U.S. foothold the Agnellis would be pulled back to Europe.

BlackRock sees tech as an antidote to fee pressure

22 March 2019

The world’s largest investment shop is paying $1.3 bln for an alternative-asset management software firm. Boss Larry Fink gains heft in a booming private-equity market and bolsters a growing technology business. It’s a smart attempt to counteract price wars in stocks and bonds.

John Paulson gives Newmont late but valid advice

22 March 2019

The gold miner’s $10 billion Goldcorp offer terms aren’t good enough for the hedge fund manager, who owns a 2.7 percent stake. He has a point – recent gold deals haven’t featured premiums. But his campaign might have gained more traction had he started earlier.

Viewsroom: German bank M&A’s questionable logic

21 March 2019

Putting Deutsche and Commerz together might create a national banking champion. A more likely outcome, though, would be a poorly performing behemoth. Meanwhile, Volkswagen boss Herbert Diess commits the mother of all CEO gaffes. Plus: sizing up a Chinese housing unicorn.

Kuala Lumpur can give up Malaysia Airlines

21 March 2019

The flag carrier has been losing cash for years. Now Premier Mahathir Mohamad is asking if it should fly at all. State-meddling has hampered a turnaround and there’s too much local capacity. Folding the airline would show that his government is ready to rein in the state.

Chrysler Building can ape its Midtown rival

20 March 2019

New York City’s art deco tower is being sold for $150 mln, a fraction of what it fetched a decade ago. An onerous ground lease, renovation needs and drift away from Midtown explain much of the discount. But the Empire State Building shows how to restore luster to fading icons.

UK $3 bln satellite deal hits escape velocity

20 March 2019

A private-equity consortium is preparing to launch an offer for Inmarsat months after the company aborted a bid from U.S. peer EchoStar. Handling maritime communications is shakier than a year ago while services like in-flight Wi-Fi remain risky. The deal deserves to go into orbit.

New Fox bears hallmarks of the old fox

19 March 2019

Rupert Murdoch’s outfit is now trading as a news and sports company. With a fresh poison pill and former House Speaker Paul Ryan on the board, he’s entrenched himself and his political ties. A Disney stake gives him an additional media option. He’s still playing by his own rules.

Starboard’s Bristol-Myers pitch needs an activist

19 March 2019

Pushy investors should keep their arguments tight. Starboard’s beef with the drug company’s $74 bln deal for Celgene does highlight overpayment and patent risks. But its 197-page presentation is as bloated as its target, containing contradictions and micromanagement.

Sainsbury’s antitrust riposte barks up wrong tree

19 March 2019

The supermarket chain promised to deliver 1 bln pounds of price cuts to ease fears about a tie-up with Asda. That might help its image with customers, but probably not change the regulator’s mind. Arguing that the grocery market is rapidly changing would be a smarter move.

Cox: Really, no one else will bid for Commerzbank?

19 March 2019

Berlin’s blessing of M&A talks with Deutsche may scare off interlopers. But Germany’s number two offers ING, UniCredit, Santander and others a unique chance to expand in the largest euro zone economy – and perhaps eventually move their HQs to Frankfurt to gain other goodies.

Etihad is strapped in too tightly at Jet Airways

19 March 2019

The ailing $400 mln Indian carrier has stopped flights to Abu Dhabi, the hub of its 24 pct shareholder. Even with some planes grounded, Jet may be trying to strong-arm support for a restructuring. It’s a harsh reminder that Etihad has more to lose than just its equity investment.

Blackstone belatedly buys into Abenomics

19 March 2019

The U.S. private equity firm is making its Japan LBO debut by acquiring drugmaker Ayumi for $1 bln. It is a retread already owned by two local buyout shops. The government’s newly introduced price controls could squeeze smaller peers, however, and give a rollup strategy a shot.

German bank champion will be made on Wall Street

18 March 2019

Commerzbank counts Goldman Sachs as an adviser. Paul Achleitner, chairman of partner Deutsche Bank, worked at the U.S. firm, as did Germany’s deputy finance minister. Cerberus President Matt Zames, formerly of JPMorgan, is advising Deutsche. The deal owes much to American nous.

Traders impede Deutsche-Commerz road to revival

18 March 2019

If merger talks lead to a deal, Deutsche could cut costs at its German rival by 40 percent. That would boost returns on equity in the retail unit to an acceptable 8 percent. But a union does little to address Deutsche Bank’s main problem: how to revive its ailing investment bank.

Payments hype reaches new peak with $43 bln deal

18 March 2019

U.S. fintech group FIS is buying processor Worldpay for 20 times forward EBITDA. While there’s logic to rolling up companies with fixed costs and sticky clients, the price is punchy even for the fast-growing payments sector. The buyer’s own numbers imply disappointing returns.

Hostile Japanese deal propels Abe’s third arrow

18 March 2019

In a rare act of corporate aggression, trading house Itochu snatched a degree of control over $1.8 bln sportswear maker Descente. Toshiba faces an investor revolt, while Alps Alpine has been sued over governance. Japan’s structural reforms are faster finding their targets.

RWE’s German carve-up looks better than E.ON’s

14 March 2019

A year after a 17 bln euro asset swap, the German utilities’ deal is in Brussels’ antitrust sights. It’s more an issue for E.ON, which may lose out if forced disposals erode hoped-for cost savings. RWE, meanwhile, seems to have chosen the right time to bulk up in renewables.

Oaktree investors get sharp end of the stick

13 March 2019

Brookfield is paying $4.8 bln for Howard Marks' and Bruce Karsh’s credit specialist, a 12 pct premium for a company that has underperformed for years. The Oaktree founders get to stay around with unlisted equity. It’s a lopsided deal, and a lesson in how asset management works.