Elliott’s Athenahealth deal leaves sickly odor 12 Nov 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 Nov 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 Nov 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 Nov 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 Nov 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 Nov 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 Nov 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 Nov 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 Nov 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 Nov 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 Nov 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 Nov 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 Oct 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.
IBM overpays for relevance with $34 bln cloud deal 29 Oct 2018 Big Blue’s grab bag of businesses has mostly shrunk for years, and returning cash to investors reached its limit. IBM hopes paying 10 times sales for Red Hat can make it the Switzerland of cloud neutrality. But it will be hard to cut costs and grow sales enough for a good return.
Car parts M&A starts looking more compelling 26 Oct 2018 France’s Valeo is the latest in the auto sector to issue a profit warning, sending its shares down by a fifth. Crashing valuations might help deals make more financial sense. Rival Faurecia’s purchase of Japanese peer Clarion shows how the fleetest can exploit the opportunity.
WPP’s broken financial model is hard to fix 25 Oct 2018 The ad group’s old strategy of modest growth supplemented by M&A and share buybacks no longer works. New CEO Mark Read faces shrinking sales and a big debt pile. Given how long it will take to streamline the business and invest in new technologies, investors will be unforgiving.
Altaba offers half a map to Naspers’ future 22 Oct 2018 The former Yahoo’s $55 bln holding in Alibaba eclipsed its other businesses, finally leaving only a planned unwind to do. Naspers’ $110 bln Tencent stake likewise far outweighs the South African group’s operations. Investors like the huge gains, but want to minimize the tax, too.
KKR throws autos shareholders into a spin 22 Oct 2018 The buyout group is paying $7.1 billion for a Fiat Chrysler-owned supplier. The double-digit earnings multiple is a coup for new FCA CEO Mike Manley. The big premium to where the industry trades needs some justifying. But regular investors may also be too gloomy about the sector.
ABB belatedly succumbs to industrial revolution 19 Oct 2018 While European heavyweights like Thyssenkrupp and Siemens restructure, the $45 bln Swiss-Swedish group still sits on a largely unrelated power business. Now CEO Ulrich Spiesshofer is finally mulling action, he should opt for a full spinoff rather than a half-hearted partial sale.
There’s method in Saudi’s Man Utd soccer madness 15 Oct 2018 The kingdom’s crown prince may back a tilt at the UK soccer club, reports the Sun. It sounds barmy, and a convenient distraction from the international storm over a journalist’s disappearance. Yet Saudi backing for a new elite club tournament means it could make financial sense.