CVC’s Italian pharma foray could prompt a headache 28 Jun 2018 The buyout firm is in talks to acquire rare diseases player Recordati, worth 7 bln euro on the market. The group’s profit margins and international presence are appealing. But CVC may need to load on too much debt to secure decent returns.
Conagra boss finally gets his Hungry-Man and more 27 Jun 2018 With an agreed $10.9 bln purchase of Pinnacle, Sean Connolly seals the deal on a takeover of the motley crew of slow-growth grocery goods he has pursued since 2014, when he ran Hillshire. But it’s a high price and ambitious cost cuts don’t cover the premium he’s paying.
Disney-Fox-Sky puts UK M&A regulators in a bind 27 Jun 2018 After the Mickey Mouse owner boosted its offer for Rupert Murdoch’s group, Sky investors reckon they’re due a bump. UK regulators’ keenness to protect minority investors implies it should agree. But doing so will also put it in the odd position of adding fuel to an already red hot bidding war.
Endemol’s $4 bln sale needs “Love Island” glitter 27 Jun 2018 Rampant media M&A makes it a good time for the production company’s owners, Fox and Apollo, to sell. Potential buyers may balk at loss-making Endemol Shine’s debt and reliance on tired reality TV formats. That’s unless ITV’s matchmaking hit shows the off-trend genre has legs.
Chairman exit lays bare Carige’s governance knot 27 Jun 2018 Giuseppe Tesauro left the wobbly Italian lender after clashing with management. The departure highlights a squabble between top investor the Malacalza family, and financier Raffaele Mincione, who wants a merger. A boardroom feud risks delaying Carige’s much-needed turnaround.
GE breakup ushers in brave new era 26 Jun 2018 CEO John Flannery is spinning off the ailing $111 bln conglomerate’s healthcare unit and selling Baker Hughes, ending more than a century of growth. Focusing on aviation and power has risks, but the plan slashes debt and makes GE manageable. It was Flannery’s only logical choice.
China’s $2 bln electric car rescue is an odd turn 26 Jun 2018 A subsidiary of property giant Evergrande has agreed to bail out a troubled U.S.-based Tesla challenger. Faraday Future’s Chinese founder Jia Yueting gets breathing space, but why Chinese or U.S. regulators would clear this deal is a puzzle. Investors may be celebrating too soon.
Diageo could use a chaser as it runs up China tab 26 Jun 2018 The British booze giant wants to spend some $900 mln to own a majority of Sichuan Swellfun. A rally in baijiu stocks means Diageo is buying high again. Absolute control offers defensive value, but a broader strategy will be equally important against $150 bln Kweichow Moutai.
College dorms play host to financial keg party 25 Jun 2018 Greystar is paying a reasonable-sounding $3.1 bln for Education Realty’s student-bunking business. The astronomical cost of college is prompting changes to the market, though, such as kids telecommuting to class. It could deprive university real estate of its youthful glow.
Local TV deals face national-sized nemesis 25 Jun 2018 Gray Television’s purchase of peer Raycom Media for $3.6 bln will create the third-largest broadcaster in the U.S. Gray has similar problems to AT&T, Disney and Comcast, all doing debt-funded deals to catch more nimble rivals. But the TV minnows are starting from way behind.
GE’s small ball merely delays tough decisions 25 Jun 2018 The conglomerate is selling its distributed-power unit to buyout shop Advent for $3.25 bln. It brings CEO John Flannery closer to his divestment target but doesn’t really cut debt or bolster earnings. That will require bigger sales or spinoffs, and probably another dividend cut.
China’s gentle German auto bid may work too well 25 Jun 2018 The Wang family, owners of a Chinese car parts supplier, made an $882 mln offer for headrest maker Grammer. A pledge to save jobs and the buyer’s size make a full takeover tricky. Yet shareholders wary of the increasingly messy governance probably won’t want to stick around.
Conagra food deal could leave heartburn 22 Jun 2018 The $15 bln owner of Hebrew National and Reddi-wip could tie up with smaller rival Pinnacle after hedge fund Jana has come calling. Bulking up is one way to fight slow growth as consumers shift from processed fare. But justifying a deal requires cost cuts which may be a stretch.
Fox’s final stop could be $76 billion 22 Jun 2018 Back out the bits that Disney and Comcast don’t want, adjust for the time vale of money, and it looks like investors think Rupert Murdoch’s media empire will squeeze $5 billion more from its two suitors. Though the numbers could still shift, it suggests the fight isn’t over.
Viewsroom: Disney, Comcast go from zero to berserk 21 Jun 2018 The Magic Kingdom and the cable company are driving up the price for parts of Twenty-First Century Fox in a global M&A battle that throws financial logic out the window. But does it make sense strategically? Plus: India’s cricket league takes a few pages from the NFL playbook.
Disney hurls magic and moolah to woo Murdoch 20 Jun 2018 Boss Bob Iger leapfrogged Comcast by raising his offer for parts of Fox to $71 bln, including a generous dollop of cash. He retains Rupert Murdoch’s support, and has room to go higher still. The cable firm may yet go hostile, but would be better off focusing its efforts on Sky.
Apple supplier’s M&A bite looks too much to chew 20 Jun 2018 British chipmaker Dialog is eyeing U.S. touchscreen group Synaptics. That would help it diversify away from main client Apple, which recently cut orders, and the returns look good. Yet funding a winning bid may mean taking on a slug of costly debt or raising equity.
DSM extracts vigorous returns from healthy planet 20 Jun 2018 The Dutch company which once mined coal now makes food supplements and fibres. New targets suggest sustainable businesses can deliver high single-digit EBITDA growth. Though investors’ expectations are already high, up to 3 bln euros for acquisitions promises a further boost.
Roche throws $2.4 bln at its growth problem 19 Jun 2018 The drugmaker is paying a 29 pct premium to buy out shareholders in a gene-profiling group it already controls. The deal fits its strategy, but will take years to pay off. With Roche’s cancer business challenged, fuzzy M&A is another reason for investors to steer clear.
China Biologic may be too rich for CITIC’s blood 19 Jun 2018 The plasma products maker received a $3.7 bln takeover bid from the Beijing-based bank’s buyout arm. CITIC offered a healthy 34 pct premium. It could capitalize on a market shakeout, but it’s hard to be sanguine about infusing a company with debt amid risky regulatory upheaval.