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.
AT&T and Comcast alike in debt, not in risk 18 Jun 2018 Big acquisitions will leave the telco and cable firm with more than $170 billion of debt each. At first, Comcast’s bid for bits of Fox would create the heavier relative leverage load. But it’s AT&T’s recently closed merger with Time Warner that looks more vulnerable.
South32 finds acceptable way to splash the cash 18 Jun 2018 The BHP spinoff is paying $1.3 bln for the rest of Canadian miner Arizona Mining. The 50 percent premium sounds reminiscent of past mining M&A excess. Yet the deal makes strategic sense, and isn’t too pricey. Besides, South32 needs to deploy its mountain of net cash.
Virgin Money is cheap bride in UK bank wedding 18 Jun 2018 The UK upstart lender is selling out to rival CYBG in an all-share deal worth 1.7 billion pounds. The premium on offer is little more than half the value of expected cost savings. Despite a UK slowdown and higher consumer credit risks, Virgin shareholders will feel short-changed.
Viewsroom: AT&T win is unlikely to muzzle watchdogs 14 Jun 2018 The telco firm prevailed against the DOJ and can now legally buy Time Warner for $85 bln. The green light doesn’t mean that regulators will roll over for other deals however. T-Mobile US and Sprint may still be in the crosshairs. Plus: An Australian bank cartel runs into trouble.
Fox M&A battle could favour Sky investors 14 Jun 2018 Comcast’s $65 bln offer for Rupert Murdoch’s group raises the stakes in the battle for the UK broadcaster. Even if the U.S. cable giant snags Fox, rival Walt Disney might pursue Sky to avoid coming away empty-handed. The risk for shareholders is that the bidders strike a truce.
ThyssenKrupp can forge better steel deal with Tata 14 Jun 2018 The German group has outperformed its Indian rival since they agreed a European steel joint venture last year, and now produces more than twice as much EBITDA. Tata could pay cash or give up dividends to close the gap. Walking away from the hefty synergies would be too painful.
Comcast throws $65 bln of caution to the wind 13 Jun 2018 The cable firm is offering 19 pct more than Disney to buy bits of Rupert Murdoch’s Fox – potentially leaving it slathered in $170 bln of debt. Boss Brian Roberts is normally a careful dealmaker. Embarking on this expensive, hostile pursuit suggests a serious fear of missing out.
Holding: As AT&T case ends, trustbuster woes begin 13 Jun 2018 Donald Trump’s Justice Department lost its bid to stop the telco’s $85 bln Time Warner merger, battering DOJ’s Obama-era image as tough but savvy. Weak legal claims baffled experts and stalled other deals. The watchdog can expect fresh charges of putting politics over the law.
Beware the rough end of the SPAC 13 Jun 2018 Blank-check companies are back in fashion, helped by a $550 million vehicle backed by Dan Loeb. These listings have changed since they first became popular a decade ago. Though the structures sound better, bad incentives can still leave long-term investors exposed.
Look who’s sitting out the media M&A game 13 Jun 2018 AT&T will soon close its $85 bln deal for Time Warner. Comcast and Disney may fight over Fox. And yet among the big deals at least for now, Netflix, Amazon and Facebook are nowhere to be found. Their absence from the feeding frenzy may hint at the prospects for these mergers.
AT&T deal approval doesn’t mean anything goes 13 Jun 2018 The U.S. Justice Dept gambled when it sued to block the $85 bln Time Warner sale. Its failure means business as usual for vertical mergers, like Comcast’s likely bid for Fox. Big firms that directly compete will still face tough scrutiny – and prosecutors eager for a clear win.
Toyota plots yet another jittery ride-hail route 13 Jun 2018 The Japanese carmaker is investing $1 bln into Asian startup Grab. It’s the latest in a slew of deals that mostly reflect manufacturer fears about where things are headed in autonomous driving and beyond. As GM’s fading Lyft alliance shows, though, the path is far from clear.
CKI’s $10 bln bid can snare Australian prey 13 Jun 2018 The Hong Kong giant is circling Australia's top gas pipeline firm. A 33 pct premium ought to satisfy APA’s board, especially as tougher rules bite. The odds are good for Victor Li’s first big deal since he took over from father Li Ka-shing at parent company CK Hutchison.
AT&T gets law right this time, but could regret it 12 Jun 2018 A judge cleared the telco’s $85 bln Time Warner purchase in a clean ruling against U.S. regulators who tried to block it. That’s a victory for CEO Randall Stephenson, but it could come with a winner’s curse. AT&T is new to the media business and has barely any room to cut costs.
Chinese deal offers DRC miners a rare sign of hope 12 Jun 2018 State-backed CITIC has poured $560 mln into Robert Friedland’s Ivanhoe Mines. That is an unusual endorsement of the Democratic Republic of Congo, following a punitive new mining code. The move suggests a compromise is still likely, which would benefit Glencore and Randgold too.
Medical device megadeals risk antitrust backlash 11 Jun 2018 Stryker is circling Boston Scientific for what could be a $58 bln takeover bid. Such a price tag wouldn’t be excessive by recent standards. But as more medical suppliers look for mergers to cut costs and gain leverage over hospitals, regulators will be tempted to step in.
Apax can find a bargain in UK used-car dealer 11 Jun 2018 Auction group BCA Marketplace has rejected a 1.6 bln pound bid from the private equity manager. It’s a bold move when sales are slowing, and UK consumers weak. Yet BCA is growing market share, and its margins look low. Apax could pay a 30 pct premium and still make a good return.
KKR gives Envision a $6 bln general anesthetic 11 Jun 2018 Going private will make life less painful for the U.S. medical services group, which has labored amidst reports of patients stung by surprise charges for emergency treatment. KKR should make out fine, too, if healthcare practitioners’ ability to charge high prices endures.