Apollo Education buyout barely makes the grade 27 Apr 2016 The $1.1 bln offer is a big comedown for a company worth $14 bln in 2009. A White House crackdown on for-profit colleges has left Apollo wayward, however. Let investors backed by President Obama’s allies struggle to help the University of Phoenix owner rise from the ashes.
Losing bidder is indirect winner in Darty bid 27 Apr 2016 Furniture retailer Conforama has pulled out of a frenzied bidding war for the European electrical store. Their prudent approach that doesn’t count synergies made the price too high. Rival Fnac’s final bid is 70 pct above its original offer - but still looks like a good deal.
Citi shareholders slow bank breakup momentum 26 Apr 2016 A proposal simply to study a split of the mega-bank led by Mike Corbat won just 3.5 pct support. That’s a broad rejection of rhetoric from the U.S. presidential race and elsewhere. Bigger is better probably will prevail until Wall Street and Main Street can agree otherwise.
Perella Weinberg scratching M&A itch in oil patch 26 Apr 2016 Joining forces with Tudor Pickering, as is being discussed, would combine energy expertise with restructuring know-how and global reach in one shot. A Goldman Sachs imprimatur also could help unite the boutique cultures. The logic suggests there’s more to it than just doing a deal.
Charter deal OK puts John Malone in game of thrones 25 Apr 2016 U.S. trustbusters are allowing the $90 bln three-way tie-up with Time Warner Cable and Bright House. Lynchpin shareholder Malone has achieved what Comcast’s Brian Roberts couldn’t. HBO, among others, objected but will now have to live under two dominant broadband powers.
Newspaper deal would solve Tribune’s woes 25 Apr 2016 USA Today owner Gannett’s $815 mln unsolicited offer to buy the publisher of the LA Times doesn’t just make financial sense for the buyer. It would also allow Tribune shareholders to escape flatlining revenue at a headline-grabbing 63 percent premium to its current market value.
Telefonica faces arduous Plan B 22 Apr 2016 If Brussels nixes the sale of its UK unit O2, the Spanish telco must find ways to cut its 50 bln euro debt pile. Options include finding buyers for O2 or assets like Mexico. Execution risk is high - but low rates and an improving Spanish market work in Telefonica’s favour.
Darty’s spiraling price tag can still go higher 21 Apr 2016 Fnac has upped its offer for the electrical goods retailer to 779 mln pounds, and added cash. Its bid is now higher than rival Conforama’s latest one, although the South Africans can probably offer more. But, after finding additional synergies, so now can Fnac.
Investors need help to stop cheap Chinese buyouts 21 Apr 2016 Minority shareholders are upset about a wave of stingy take-private offers from Chinese groups with U.S. listings. But they can’t do much because the firms are domiciled in offshore centres with fewer protections. Investors could find a sympathetic ear in a China-weary Congress.
Lexmark sale to China copies the Lenovo blueprint 20 Apr 2016 Apex Technology and partners are buying the U.S. printer-maker for $3.6 bln including debt. Unlike some of China’s splashy overseas deals, financing and regulators are not big risks, and the price seems fairly sober. Lenovo’s past forays into unloved tech niches offer a guide.
Japan Inc would gain by fixing M&A sights on home 20 Apr 2016 Bosses have been busy buying abroad. But often it makes more sense to consolidate fragmented domestic industries. With Japanese firms under pressure to become better-run and more profitable, a recent string of tie-ups could signal the start of a more investor-friendly deal spree.
EMC deal math has snowball’s chance for Dell 19 Apr 2016 The PC maker is targeting up to $2 bln in annual savings and three times more revenue uplift from its $60 bln purchase of the data-storage company. The cost cuts alone can’t justify the price. Cross-selling is the great hope, but Dell has been too optimistic about that before.
JD Power’s new finding: Asia is flush with capital 19 Apr 2016 McGraw Hill is selling its car-rating unit to a little-known private equity firm for $1.1 bln. XIO barely registers on Western financial radars and yet has quietly raised $5 bln, largely from Asian backers. When liquidity is this abundant, disciplined deal-making rarely follows.
Lisbon supplies key to unlock Caixa’s BPI riddle 18 Apr 2016 The Spanish bank has launched a second offer for its Portuguese peer at a lower price. Angolan investor Isabel dos Santos used a voting cap to block the last one, but the state may now scrap this. Despite a hit to capital, Caixa now has a light at the end of the tunnel.
China buyout boom fuels $3.5 bln car website race 18 Apr 2016 Autohome’s CEO is leading a bid to take over the Chinese auto listings site, hours after major shareholder Telstra sold 48 pct of the U.S.-listed group to insurer Ping An. Despite a cooling economy and slumping stocks, China’s take-private trend shows no sign of slowing down.
Cox: Who’s the Chinese buyer we’ve never heard of? 14 Apr 2016 That’s the question every investment banker now asks when selling a company or asset anywhere in the world. M&A advisers are even flying China specialists across oceans for pitches. Anbang-like hiccups won’t stop the trend. But extra due diligence and vigilance is required.
Deals can help Japan’s banks offset dollar drought 13 Apr 2016 Mega-banks MUFG, SMFG and Mizuho are making new loans abroad faster than they can amass matching deposits. This headache has boosted the cost of swapping funds from yen to dollars, and made regulators in Tokyo wary. Buying smaller U.S. lenders would help reduce the mismatch.
Obama the deal slayer is also a mass mergerer 12 Apr 2016 In one week, the administration killed Pfizer’s mega-merger, wounded Halliburton’s and knee-capped CP’s. At least $600 bln of M&A has been buried during this presidency. In some ways, though, Bush wielded a sharper axe and Obama helped bring acquisitions back to life.
Bollore stake boosts Fnac’s Darty bid in two ways 12 Apr 2016 The Vivendi chief is buying a 15 pct stake in struggling French CD and book seller Fnac. That gives the retailer more cash to up its 660 mln pound bid for Darty. Speculation about what the billionaire has in mind should boost the value of the shares Fnac is offering Darty too.
Alibaba’s $1 bln Southeast Asia buy tests limits 12 Apr 2016 The Chinese e-commerce giant is taking control of upstart Lazada in its largest overseas deal to date. Countries like Indonesia and Malaysia offer new growth. But widening losses and fierce competition mean expansion is not cheap. It also dilutes Alibaba’s asset-light model.