Xerox-Donnelley deal would be epic paper shuffle 12 Jul 2016 Binding together the iconic photocopier maker and the printing group would create a $14 bln giant – which Xerox would then break up. That would increase integration risk and wouldn't necessarily solve each company's dilemma of being print-heavy in an ever-more digital world.
Deal implosion better for UniCredit than Santander 12 Jul 2016 A planned merger of the Italian bank’s asset manager Pioneer with the Spanish bank’s fund arm may be scrapped. A separate sale would help new UniCredit CEO Jean-Pierre Mustier’s capital build. For Santander, which wanted to list the enlarged entity, it would be more annoying.
AMC-Odeon deal is both trailer and closing credits 12 Jul 2016 The U.S. cinema chain is buying its European peer for $1.2 bln. The deal ends Odeon's epic stint in private equity hands. It's a further sign of the global ambitions of Wanda, AMC's Chinese backer. And it could be the first of many post-Brexit deals by dollar-based buyers.
Boeing and Airbus could use Obama’s help on Iran 11 Jul 2016 The U.S. Congress wants to block the sale of about 200 planes to Iran Air. Easing sanctions on Tehran after the nuclear deal made transactions like this doable. Firms have been encouraged to open their doors. But they aren't getting enough cover from the White House once they do.
UFC’s $4 bln sale falls short of a sports knockout 11 Jul 2016 The mixed martial arts group is being bought by the talent agency behind Matt Damon and Gisele. Though finances are hard to come by, WME-IMG appears to be paying a higher valuation than WWE or Manchester United fetch. The NFL and owners of the New York Knicks are still champs.
Cash could trump complexity in Corriere bid 11 Jul 2016 The two camps bidding for Italian media group RCS have both upped their offers. Cairo is offering a bit more for the owner of Corriere della Sera, but mostly in highly-valued stock. In volatile markets, investors may choose a less complex bid headed by Andrea Bonomi over value.
U.S. healthcare mega-deals get grim diagnoses 8 Jul 2016 Aetna's $34 bln acquisition of Humana and Anthem's $44 bln plan to buy Cigna are risky propositions to shrink the industry from five big insurers to three. Investors now expect both mergers to die. If right, the companies also would return to independence worse than they began.
Stars align for a new Sky takeover attempt 7 Jul 2016 The drop in the pound could tempt Rupert Murdoch’s Fox to bid for the 61 pct it doesn’t own of the UK pay-TV operator, after failing to do so in 2011. It would leave Fox investors more exposed to Europe. Still, if the Murdoch clan is bullish, there’s no time like the present.
Vanke battle is test of China’s shareholder rules 7 Jul 2016 The country's top property developer is fighting with major holder Baoneng. The spat has produced a $7 bln deal, a motion to dismiss the board, and suggestions big stakeholders are colluding. The outcome will show whether China's public markets are up to protecting investors.
Kit Kat could give finger to most Hershey suitors 6 Jul 2016 The $23 bln U.S. candy company licenses the British snack from Nestlé, which could take the American rights back if Hershey is sold. That would melt value for suitor Mondelez or any rivals – except for Nestlé itself. It gives the Swiss group leverage to play kingmaker.
Take Sanofi’s bid sweetener with pinch of salt 6 Jul 2016 The French pharmaceuticals group is dangling a so-called contingent value right in its richer $11 bln offer for Medivation. A similar special payout predicated on a drug's success helped Sanofi seal a deal for Genzyme in 2011. The result there should give the latest target pause.
Tesla pressure clouds Elon Musk’s solar gambit 5 Jul 2016 The electric-car maker missed its delivery target again. That's bad news for a company aiming to quintuple production by 2018. A fatal crash also has invited scrutiny of Tesla's Autopilot feature. These concerns further undermine an already questionable effort to buy SolarCity.
Twinkie the Kid rides again, on risky debt saddle 5 Jul 2016 Hostess, indebted maker of the iconic snack cake, is going public in a deal with a SPAC run by Gores Group alongside investors Apollo and Metropoulos. At 10.4 times EBITDA, it's a high price for a spiffed-up baker that went bankrupt twice due to changing consumer tastes.
China’s M&A spree will face growing backlash 5 Jul 2016 German politicians are the latest to get jittery about a Chinese takeover bid. In the absence of global foreign investment rules, countries can block deals they don't like. China's reluctance to open its markets means surging cross-border acquisitions will spark more resistance.
Abu Dhabi $29 bln banking merger looks after No.1 4 Jul 2016 National Bank of Abu Dhabi - and the emirate's government - get a slight advantage in a merger with First Gulf Bank. Yet synergies leave both better off. The all-share deal will create the largest lender in the UAE and an institution capable of competing with foreign rivals.
Apple skips a few beats in streaming battle 1 Jul 2016 The $535 bln iPhone maker may be mulling a purchase of Tidal, rapper Jay Z's online music service, to bolster its own. Meanwhile Spotify says Apple is harming it by rejecting an app upgrade. Apple has the clout to fend off rivals, but adding Tidal won't help get its rhythm back.
Accountability flows from failed pipeline merger 1 Jul 2016 Nearly half of the Williams board – including the chair and two activists – quit after they failed to oust CEO Alan Armstrong. The departing directors supported the pipeline group's collapsed sale to ETE, which Armstrong had opposed. It's an uncommon win for oil-patch governance.
Skullcandy frenzy only mild music to investor ears 1 Jul 2016 The headphone maker's IPO in 2011 attracted considerable hype, fetching a valuation of over two times revenue. Since then, sales have stalled and profit margins shrunk. Despite at least three potential suitors now, long-term Skullcandy shareholders will be singing the blues.
Mondelez can stomach a richer bid for Hershey 30 Jun 2016 The confectioner rejected a lowball offer from Cadbury's parent. Mondelez could pay $26 bln without hurting its shareholders or incurring excessive debt. The jubilant reaction from investors to the initial bid may tempt CEO Irene Rosenfeld to sweeten the terms of her offer.
Hershey makes tempting but sticky takeover target 30 Jun 2016 The $25 bln confectioner belongs with Mondelez's Cadbury. CEO Irene Rosenfeld may sniff sweet opportunity as the charitable trust that blocked past Hershey bids is roiled by scandal, and rival Kraft Heinz is still digesting its mega-deal. But it won't come cheaply.