Wall Street vets give small banks M&A wake-up call 14 May 2018 Cadence, set up in 2010 by Bob Steel, Bill Harrison and others to snap up failed lenders, is buying State Bank Financial for $1.4 bln. It’s a small deal in isolation. But there’s an expanding group of acquisitive upstart banks that may force stodgier rivals to do deals.
Xerox has one more chance for positive innovation 14 May 2018 The creator of laser printing and the GUI has been mired in a badly inked $6.1 bln sale to Fujifilm and far from user-friendly board governance. Carl Icahn and Darwin Deason have put an end to both. Xerox is in decline, but there’s still room for a clean, intuitive exit.
IWG suitors could use some WeWork magic 14 May 2018 The original shared-office provider has been approached by three private equity bidders. Though the shares are up 30 pct, its $3.8 bln market value is just over its 2017 revenue. Trendy upstart WeWork is valued at 20 times. Buyers will be hoping some of the sparkle will rub off.
Chinese utility misfires with bid for Portugal’s EDP 14 May 2018 China Three Gorges is offering investors a tiny premium to take control of EDP. This may be a way to avoid paying the near-$11 bln that would be needed for full ownership. But the move could fail entirely without an increase. And being so stingy invites political blowback.
Portuguese power bid tests EU’s open door to China 11 May 2018 China Three Gorges is set to bid for the 77 pct of EDP it doesn’t own. The group has been an investor since 2011, but success would place the 11 bln euro utility under Chinese state control. That will add a spark to European Commission plans to better screen foreign investment.
Zoopla lures new twist on classic UK property punt 11 May 2018 Silver Lake has offered $3 bln for ZPG, owner of housing search firm Zoopla. The U.S. buyout group’s punt mirrors that of the property speculators that use the website. Leverage makes it look a better deal, but increases the risk if the market tanks.
Saint-Gobain and Sika build happy truce 11 May 2018 A takeover battle dating back to 2014 is resolved. The French company ends up more than 600 mln euros better off after buying a stake of Sika and then selling a chunk back. Its former Swiss target pays a relatively low premium for freedom. Shame peace took so long to break out.
Murdoch will be the winner once Fox movie is made 10 May 2018 The media mogul may soon have Comcast competing for parts of his empire. Disney would probably have to hike its $52 bln offer for Fox assets. His partial exit suggests he sees a dimmer future for cable TV. Even as the target, he’s one step ahead in the M&A game.
Walmart wages dangerously big online war in India 9 May 2018 Even as an e-commerce push at home stumbles, the mega-retailer is plowing $16 bln into Flipkart. It pits Walmart against Amazon in a huge unprofitable market, and also challenges Alibaba, which backs Paytm Mall. After missteps in China, this will be a make-or-break overseas deal.
Vodafone’s $22 bln deal is worth financial strain 9 May 2018 The UK mobile group is buying Liberty Global’s German and eastern European assets. Boss Vittorio Colao is funding the deal with debt and funky convertible bonds. He can point to juicy cost savings to quell any concerns about Vodafone’s creaky balance sheet.
Tokyo jobs giant makes pricey hire with Glassdoor 9 May 2018 Japan’s Recruit has bought the U.S. job-reviews site for $1.2 bln, or about seven times trailing sales. That is a big sum for a startup that is still unprofitable. Even so, Glassdoor’s insights and data could be useful as technology brings radical change to the HR department.
Indian hospital penta-scrum poses board quandary 9 May 2018 Five bidders want to invest in ailing Fortis, valuing it at up to $1.4 bln. Offers range from small stakes to a full takeover. Lenders and hedgies may want a quick exit, but in a critical care business, directors would do well to consider a treatment that works for the long term.
Hong Kong mall deal feeds economic-hub dreams 9 May 2018 New World Development will invest $2.5 bln to build a sprawling retail centre by the city's remote airport. The pricey project goes beyond wooing flyers, though. It's a bold bet that troubled infrastructure initiatives to link mainland China, Hong Kong and Macau will pay off.
A Fujifilm cash bid for Xerox would work on paper 8 May 2018 Carl Icahn is fighting the Japanese company's complex plan to take control of its U.S. partner, but he's open to a cleaner $11 bln deal. That just about stacks up for Fujifilm in terms of debt needed and an investment return. It'd be far harder to justify strategically, though.
Takeda swallows big dose of risk to buy Shire 8 May 2018 The Japanese drugmaker finally reached a deal to buy its Irish peer, for $62 bln. Takeda can just about make the deal math work with $1.4 bln of annual cost savings. It requires big cuts to R&D, however, and operating with excessive debt for a while. That's a dangerous mix.
UK bank wedding can justify more generous dowry 8 May 2018 Mid-sized CYBG has approached rival Virgin Money about a 1.6 bln pound all-share deal. The tie-up would enable the pair to more effectively challenge bigger banks. Even assuming modest cost savings, major shareholder Richard Branson can afford to hold out for a higher price.
Elliott weaves snare around subpar Athenahealth 7 May 2018 The healthcare-software firm is long on vision under founder Jonathan Bush, but it has been patchy on performance despite the activist’s presence. Elliott’s $6.9 bln bid, including debt, raises the pressure on the board to do more and may force other bidders out of the woodwork.
Blackstone stores up value in warehouse deal 7 May 2018 The buyout firm is paying $7.6 bln to buy Gramercy Properties. The dearth of other industrial real-estate companies and rising demand for space, fueled by the likes of Amazon, make it tempting to overpay. Blackstone is keeping a lid on overexuberance, even considering the risks.
Scent makers’ $7 bln M&A splash-on has funny smell 7 May 2018 IFF is touting cost cuts worth almost double the premium it’s paying for Frutarom. The deal also sprays the buyer with a healthy dose of products made with natural ingredients. But IFF’s investment return looks low. That may be why investors are turning their noses up at it.
Liberty Global is a $25 bln bet on EU telecoms M&A 7 May 2018 The group chaired by “cable cowboy” John Malone may sell its German and eastern European businesses to Vodafone. If regulators give the thumbs up, Liberty’s remaining assets would be prime targets in a wave of telecom dealmaking. Its valuation does not reflect that possibility.