Pandora search for richer station may yield static 21 Jul 2016 The streaming-music service may have rejected a $3.4 bln offer from Liberty Media, satellite radio Sirius XM's owner, saying it's worth a third more. The financial logic of Liberty's purported bid looks shaky. A higher price for Pandora would probably destroy value for any buyer.
U.S. health insurer M&A has only death-row chances 21 Jul 2016 The Department of Justice has filed to stop Anthem's $44 bln purchase of Cigna and Aetna's $33 bln deal for Humana. They may try to fight, but the odds aren't with them. The government's arguments look strong, and President Obama's antitrust prosecutors are on a winning streak.
Mega beer merger develops case of the shakes 21 Jul 2016 An offer of 71 billion pounds that SABMiller accepted from AB InBev in November no longer looks generous - and not just because sterling has plunged. SAB’s board still has time to push for a better deal, or at least get a second opinion.
Coal dirties Komatsu’s bold bet on Joy Global 21 Jul 2016 The Japanese machinery-maker has agreed to buy the U.S. mining equipment firm for $3.7 bln including debt. Komatsu is brave in calling the bottom of the cycle. It is paying a rich price, may struggle to cut costs, and is adding a lot of exposure to the troubled coal sector.
China’s M&A juggernaut runs into new traffic light 21 Jul 2016 Conglomerate HNA Group has delayed a shareholder vote on its $6 bln bid for U.S. electronics distributor Ingram Micro after the Shanghai Stock Exchange belatedly raised questions about the deal. It's another unforeseen headache for foreign groups dealing with Chinese buyers.
Singapore metro buyout not as stingy as it looks 21 Jul 2016 State investor Temasek is offering $870 mln for the remaining 46 pct of local rail operator SMRT. The 9 pct premium looks low for a deal that needs high levels of minority shareholder approval. Factor in the recent overhaul of SMRT's business, though, and it seems much better.
Elon Musk’s new plan will test investor faithful 20 Jul 2016 The Tesla boss has a compelling vision for building more vehicles with more autonomy for a sharing economy. But Musk's missive fails to address shareholder concerns about the electric carmaker's planned merger with SolarCity. It's also unclear how he will finance his ambitions.
Unilever’s razor-club buy is a sharp move 20 Jul 2016 The consumer-goods giant may be paying $1 bln for Dollar Shave Club. At five times sales, that's a fair price if Unilever grows the business well. Owning a scrappy startup that has already blunted the market for pricey razors at rival Procter & Gamble's expense doubles the edge.
EMC owners shift concerns from Dell to VMware 19 Jul 2016 The storage maker's shareholders overwhelmingly backed a sale to the PC producer, cementing a deal once valued at $67 bln. Now they have to get comfortable with the untested VMware tracking stock they'll receive. For now, the implied discount of nearly 50 pct makes sense.
Monsanto may be overestimating independence 19 Jul 2016 The U.S. crop giant rejected Bayer's latest $64 bln takeover offer, calling it "financially inadequate." To achieve the $125 a share on offer on its own over three years would be tough, however, even with aggressive assumptions. Monsanto boss Hugh Grant is protesting too much.
SoftBank’s Son tests limits of investor patience 19 Jul 2016 SoftBank shares tanked after its no-synergy, $32 bln bet on UK chip designer ARM. Having just lost his heir apparent, founder Son talks about the company as if it is private and says the highly leveraged entity is "net debt zero". It takes the shine off his striking track record.
Exxon’s New Guinea sojourn stirs oil M&A waters 19 Jul 2016 The U.S. oil giant's $2.3 bln offer for Papua-focused gas explorer InterOil topped an earlier approach from rival energy group Oil Search. Though it's Exxon's biggest swoop since crude prices crashed, it looks more like opportunism than a catalyst for an impending deal wave.
Yahoo’s goodwill flashes warning sign for bidders 18 Jul 2016 The once-mighty internet firm took a near $500 million impairment charge on its $1 bln acquisition of Tumblr. Boss Marissa Mayer's likely last earnings call serves as a red flag for potential buyers: a similarly dismal writedown awaits you, too.
SoftBank’s new ARM may tie Sprint’s behind back 18 Jul 2016 The Japanese tech and telecom titan spent $32 bln on the UK chipmaker because it's feeling good about its U.S. wireless carrier. SoftBank's confidence confounds. Sprint is fourth of four in a maturing market locked in a price war. It's a bad time to have a distracted parent.
Hawaiian deal wipes out on isolationist wave 18 Jul 2016 Aloha State regulators blocked NextEra's $4.3 bln acquisition of Hawaiian Electric. A sale to the Florida operator was a neat way to end the utility's odd ownership of a bank and spur investment in solar. Britain isn't the only isle whose protectionist tendencies will be painful.
Failed Chinese web deal is a $1.2 bln mystery 18 Jul 2016 Norway's Opera Software is selling parts of its business to a Chinese consortium for $600 mln after a full takeover did not get regulatory approval in time. Yet investors are still in the dark about why the deal did not proceed. The proposed partial sale is little consolation.
Returns on Midea’s robot deal are far from bionic 18 Jul 2016 The Chinese appliance maker has spent about 3.3 bln euros on a majority stake in Kuka, while promising not to touch workers and management. The financial rewards look slim. Even if the German robot maker meets its targets, Midea's return on investment by 2020 will be just 5 pct.
SoftBank’s $32 bln ARM bet gives investors a shock 18 Jul 2016 The Japanese tech group has reportedly agreed to buy the UK chip designer. It's a pricey punt on connected devices, and an unwelcome surprise for those who thought SoftBank was focused on reducing debt. Shareholders remain at the mercy of Chairman Masayoshi Son's "crazy ideas".
Yahoo’s failure clarifies future for U.S. spinoffs 15 Jul 2016 The Treasury modified regulations on when splits can qualify for tax-free treatment. The move comes after the IRS declined to bless Yahoo's carve-out of its Alibaba stake. Similar deals have been on hold since. This reasonable government approach provides much-needed clarity.
Tencent’s Chinese Spotify tribute misses key note 15 Jul 2016 The web giant is merging its music-streaming service with a local rival to create a market leader worth $6 bln. It's part of a costly and aggressive push into online content. But unlike its Western role model, Tencent lacks paying listeners. Profits look out of tune for now.