Gannett’s higher bid lays waste to Tribune defense 16 May 2016 The owner of USA Today has upped to $490 mln its offer for the L.A. Times publisher. It’s a 99 pct premium and a better multiple than virtually all but the most outlandish recent newspaper deals have commanded. Stalling Tribune Chair Michael Ferro has little choice but to engage.
Bayer would risk choking on Monsanto 12 May 2016 The $94 bln German chemical giant may be mulling a bid for the U.S. seed maker. Monsanto, worth $39 bln, would need convincing. A deal pitched at a 30 pct premium is financially feasible, but Bayer would need to raise a lot of cash – and deal with clashing cultures.
Nissan can help drive Mitsubishi Motors’ recovery 12 May 2016 The Japanese carmaker is paying its smaller peer $2.2 bln for a 34 pct stake. That sounds like a smart investment. Scandal-hit Mitsubishi is one of the weakest players in Japan’s overly fragmented auto industry. Like Renault, it could benefit from pooling resources with Nissan.
Brussels O2 veto cements BT’s home advantage 11 May 2016 The EU’s antitrust tsar has rejected CK Hutchison’s 10.3 billion pound takeover of O2, because it says it would raise mobile prices. That leaves several UK players figuring out next steps. In an industry moving towards packages of mobile, landline, broadband and TV, the winner is the beefed-up BT.
Ultimate Fighting punches up value of live sports 11 May 2016 The U.S. promotion firm is reportedly seeking up to $4 bln for its mixed martial arts contests, with China’s Dalian Wanda viewed as a likely buyer. That seems high for a relative upstart in the world of pro athletics. But huge audiences for real-time events may justify the price.
Staples-Office Depot flop leaves behind paper cuts 11 May 2016 The office supply chains have shredded a $6.3 bln merger after a judge called a halt amid worries about the impact on big customers. Squelched tie-ups like Sysco’s bid for US Foods portended the result. It’s a blow to the credibility of both sides.
Altice’s wily Cablevision math adds up to trouble 10 May 2016 Patrick Drahi’s telecom group told investors it can cut $900 mln in costs to justify the $18 bln U.S. cable acquisition. To appease New York officials worried about service, Altice is using a shorter timeframe to tout a $450 mln sum. Both constituencies will end up disappointed.
China could pick up more bargains in commodities 10 May 2016 The People’s Republic is warming up to the sector as global miners race to cut debt. The latest deal sees China Molybdenum snap up Freeport’s Congo copper project for $2.7 bln. At the current pace, China’s hunger for overseas mining assets could return close to peak levels.
Digesting Krispy Kreme may require more sweetener 9 May 2016 JAB has baked a 25 pct premium into its $1.4 bln offer to take the donut maker private. The billionaire-backed owner of coffee sellers Keurig and Peet’s should be able to boost sales and margins. But Krispy Kreme may prove too appetizing for others to pass up without a fight.
China’s backdoor listings problem is self-made 9 May 2016 The securities regulator is studying the impact of overseas Chinese companies relisting at home via shell companies. Yet it is a self-inflicted problem. Dizzying stock market valuations and delays in reforming the IPO process are to blame. The regulator has had a hand in both.
Air Products and Evonik neutralize deal imbalance 6 May 2016 The U.S. industrial-gas producer is selling specialty chemicals to its German peer for $3.8 bln. A lofty valuation of 16 times last year’s EBITDA helps Air Products cover a tax hit triggered by the sale. To justify the price, Evonik is rustling up meaningful savings of its own.
Farcical oil deal prompts George Costanza defense 5 May 2016 Like the character in sitcom “Seinfeld,” Energy Transfer hopes to shake up a sour relationship: the $21 bln takeover of pipeline rival Williams. ETE aims to pay less cash, seeming to force the issue by making itself as unattractive as possible. The stakes are no laughing matter.
Pfizer mulls actually having an M&A strategy 5 May 2016 The $205 bln drug giant’s last two huge acquisition attempts failed. Pfizer could yet try another merger to cut its tax rate, it could enter a potentially heated auction for $10 bln biotech Medivation, or it could split up. Dealmaking success depends on having clearer goals.
Sard Verbinnen sale burnishes its deal credentials 5 May 2016 The crisis and merger PR firm is unloading 40 pct of itself to a buyout shop. Word leaking out with ugly details about unhappy partners hardly showcases its spin services. A valuation of nearly eight times what the founders paid a decade ago, however, suggests a certain M&A nous.
LSE investors look even more bearish on merger 4 May 2016 The UK exchange’s shares dived after U.S. rival ICE said it wouldn’t submit a bid. Investors weren’t giving an LSE-Deutsche merger much credit for potential revenue synergies as it was. Now, fear a deal could get blocked may be prevailing over value creation from cost savings.
UK deal veto would be big setback for Li Ka-shing 4 May 2016 A $15 bln takeover of Telefonica’s O2 unit was key to making the Hong Kong tycoon’s costly bet on European telecoms pay off. If CK Hutchison cannot overturn a likely EU veto, his UK telco will either have to carry on as a disruptive fourth player, or find a fallback deal.
Medical firms’ $18 bln merger lacks clear logic 3 May 2016 Healthcare data miner IMS is uniting with Quintiles, a manager of drug trials. Each will own about half the combined company, and other than some cost savings, the reasons for combining are a bit nebulous. The presence of buyout firm TPG on both sides may offer some clues.
Apollo Education owners risk flunking buyout 101 2 May 2016 Bidders for the University of Phoenix parent bumped their offer 5 pct to $1.14 bln. That’s generous, considering the for-profit college faces regulatory crackdowns and dimming financial prospects. With a vote on the deal imminent, investors grubbing for more may look like dunces.
Halliburton-Baker blowup reverberates beyond oil 2 May 2016 The $35 bln oil-services deal is the latest to buckle under regulatory pressure this year, after Pfizer’s bid for Allergan. Baker Hughes pockets a $3.5 bln break fee at Halliburton owners’ expense. Punishing the boss and board would yield a more enduring lesson in M&A hubris.
Tribune’s foot dragging on bid is bad stewardship 2 May 2016 Gannett is asking Tribune shareholders to withhold votes for directors after going public with an $813 mln offer for the L.A. Times publisher. Trib Chair Michael Ferro looks like he’s stalling. Small wonder: He and his management team will struggle to beat Gannett’s 63 pct premium.