Buyout pass-the-parcel hands BC Partners a present 28 Sep 2018 The investment group is buying a stake in a $3 bln European cable company from KKR. It’s a good deal, thanks to the seller’s desire to cash out. Private equity funds’ limited investment terms mean managers can’t always choose when to sell. Longer-life funds are one solution.
M&A cash shells need more than star power 27 Sep 2018 Media mogul Haim Saban’s blank-check company found something to buy just a week before it would have had to hand back its cash to investors. The deal looks quite creative. The bigger test for so-called SPACs is how they perform long term. Their track record is spotty.
Hulu is next front in Disney-Comcast battle 27 Sep 2018 Disney made the best call of the Fox-Comcast-Sky saga by consenting to Fox selling its Sky stake at Comcast’s eye-popping price. It plans to invest some of the $15 bln proceeds in Hulu. Comcast, which owns 30 pct of the online-video JV, would be wise to follow suit and let it go.
Chinese investment bank sells itself poorly in IPO 27 Sep 2018 China Renaissance fell 20 pct on its Hong Kong trading debut, valuing the tech advisor at less than half its original $5 bln target. A shaky outlook is partly to blame, but Renaissance also overpriced itself. For an investment bank, such a fumble is hard to explain to clients.
Wembley bid is open goal for Britain’s soccer body 27 Sep 2018 Jacksonville Jaguars owner Shahid Khan has offered a staggering 600 mln pounds for the UK’s national stadium. Given that the Pakistani-American is leaving behind the lucrative hospitality arm and naming rights, the Football Association should put the deal in the back of the net.
Comcast $40 bln lunacy gives Disney shot at sanity 24 Sep 2018 The cable firm paid a crazy price for Sky. The Mouse House is piling on debt to buy Fox assets, including part of the UK pay-TV group. Selling it would allow CEO Bob Iger to reduce Disney’s leverage or add firepower to battle streaming rivals like Netflix. Either is a smart move.
Another big deal is last thing Invesco needs 24 Sep 2018 The Atlanta-based investment manager may buy the Oppenheimer mutual fund house for $5 billion. Yet Invesco’s revenue and operating profit have stalled despite several acquisitions, including Guggenheim’s ETF business. More scale won’t alleviate the downward pressure on fees.
Versace gives Blackstone a suitably flash exit 24 Sep 2018 Fashion group Michael Kors may pay 2 billion euros for the Italian label. The deal adds a high-profile name to CEO John Idol’s growing stable of luxury brands, but may take years to pay off. Minority investor Blackstone has stitched together a clean sale, and respectable return.
Malone gambles on value-destroying radio roll-up 24 Sep 2018 Sirius XM’s $2.7 billion all-stock offer for internet streaming rival Pandora doesn’t appear to create immediate value for shareholders. The two companies may even overlap too much. Scale does, though, give controlling shareholder John Malone a hope of squeezing record labels.
Casino is loser in slanging match with Carrefour 24 Sep 2018 The troubled French grocer says it talked with its larger rival about a potential tie-up. The latter denies anything of the sort. An informal chat may have occurred but the Rallye-owned supermarket has scuppered a potential fix for its problems by revealing too much too early.
Barrick’s growth bet looks like a reverse takeover 24 Sep 2018 The Canadian miner led by former Goldman banker John Thornton has agreed a $18 bln tie-up with Randgold. But the smaller London rival seems to be in the driving seat, injecting its pugnacious boss and entrepreneurial spirit. The welcome reboot could prove a boardroom strain.
Sky windfall leaves little for Europe’s TV stocks 24 Sep 2018 Comcast’s $40 billion bid is a bonanza for the UK broadcaster’s shareholders. That trade may have run its course, though. Europe’s remaining media companies are subscale, slower-growing and more likely to lose customers to Sky than attract another deep-pocketed U.S. buyer.
Barrick and Randgold wisely explore M&A riches 24 Sep 2018 The $12 bln Canadian miner led by former Goldman banker John Thornton is set to unite with its African-focused rival. A deal this big would shake up a sector long cowed by past mistakes. Given weaker prices, falling output and a geographic fit between the two, the idea has logic.
Comcast overreaches for Sky with $40 bln knockout 22 Sep 2018 The U.S. cable group beat Disney’s Fox in an auction for the UK broadcaster with a bid worth 17.28 pounds per share. CEO Brian Roberts will struggle to justify the offer on any conventional metric. It’s a huge bet on overseas growth for a group that can’t get much larger at home.
Uber’s profitability recipe starts with Deliveroo 21 Sep 2018 The taxi app may buy the $2 bln European food-delivery group, says Bloomberg. It’s a hefty mouthful for a company that’s steered clear of large dealmaking. As long as Uber Eats and Deliveroo are tearing chunks off each other, though, investors have little chance of a full belly.
Emirate airline M&A makes sense, if not quite yet 20 Sep 2018 Dubai’s Emirates and Abu Dhabi’s Etihad denied merger talks. But higher fuel costs, overlapping networks and Etihad’s woes make it an idea worth considering. A single UAE player might better address the threat from long-haul routes that will inevitably bypass the Middle East.
Sky battle may end in awkward media giant impasse 19 Sep 2018 A sealed-bid auction could decide whether Comcast or Disney takes control of the UK broadcaster. The winner will almost certainly overpay. If the cable giant triumphs, the Magic Kingdom might keep its 39 pct stake. That would make the fierce rivals uneasy joint venture partners.
Dell deal falls short on three fronts out of three 19 Sep 2018 The PC maker is trying to persuade owners of VMware tracking stock to accept a big discount to the tracked shares, a whopping valuation for its own equity, and third-class voting status. The simplification ought to appeal, but Dell’s $22 bln offer includes too much to dislike.
Aussie office bid war offers easy investor exit 19 Sep 2018 U.S. private equity giant Blackstone is fighting with a Canadian pension fund over $3 bln of Australian commercial property. The market has boomed but Investa, the target, has underperformed of late. The ensuing rally gives shareholders a chance to relocate at a nice premium.
Saudi-Clariant chemical deal is murky concoction 18 Sep 2018 The Swiss group is setting up a joint venture with 25 pct shareholder Saudi Basic Industries. At the same time SABIC will contribute a new Clariant CEO and four board directors. Though the venture should make sense, the company’s governance becomes more complicated.