Nasdaq’s $1.1 bln ISE buy comes with hidden gem 14 Mar 2016 CEO Bob Greifeld struck a fair price for Deutsche Boerse’s options unit. The deal also doubles Nasdaq’s holding in Options Clearing Corp to 40 pct. OCC is a utility that’s deep in a restructuring. Once revitalized, though, Nasdaq’s stake could make the ISE deal look a bargain.
Hotel spree sates China’s taste for overseas glitz 14 Mar 2016 Foreign hotels are becoming corporate China’s trophy assets of choice. Buyers want to reduce their exposure to a slowing domestic market and capture the growing flow of overseas tourist dollars. Anbang Insurance’s mooted $6.5 bln takeover of Strategic Hotels won’t be the last.
Vanke’s white knight is a grey outline 14 Mar 2016 The Chinese developer could sell a stake to Shenzhen’s metro operator in return for assets worth as much as $9 bln. There may be commercial logic to a union that would help Vanke see off a possible hostile suitor. But details are scarce. Shareholder celebrations look premature.
ETE funding for Williams deal widens differences 11 Mar 2016 Stuck with its badly timed $14 bln purchase of rival pipeline group Williams, Energy Transfer has issued convertible stock to shore up its balance sheet. Instead of being reassuring, though, the move exposed divisions between the companies – and left investors more skeptical.
Mooted $11 bln gas deal signals energy M&A thaw 10 Mar 2016 TransCanada’s interest in Columbia may end a dearth in industry tie-ups. Both are among the better-positioned players in a sector where falling oil and gas prices sparked fears about a wave of bankruptcies. Perkier crude may lubricate similar mergers between industry survivors.
Best U.S. health-insurance merger may be none 10 Mar 2016 UnitedHealth’s four main rivals are fighting to push their deals past state and federal regulators. The $115 bln UnitedHealth will look smart if the mergers, each worth about $70 bln in current combined market value, are blocked. It might even win out if the deals pass muster.
LSE merger must please three tough crowds 9 Mar 2016 A tie-up with rival exchange Deutsche Boerse should please customers by cutting their collateral needs. But it could unsettle regulators if it sees too many derivatives being booked in one place. Squaring that circle might leave less for a third key constituency: shareholders.
Wanda’s U.S. cinema rollup unlikely to get rewrite 9 Mar 2016 An unhappy investor thinks Chinese-controlled AMC Entertainment is underpaying for rival American theater chain Carmike. The 20 pct premium is no blockbuster, but it’s no flop either. And after a year of hawking itself, the $1.1 bln deal may be the best the company could get.
Amex boss needs better credit with shareholders 8 Mar 2016 Ken Chenault this week faces investors tired of missed targets, slow growth and an underperforming stock. A mega-merger fix isn’t possible, and some issues are industry-wide. But he has to sell owners on his plan for boosting results – or risk having them find him in default.
Dow-DuPont deal would be tough nut for interlopers 7 Mar 2016 German chemical giant BASF may be considering a counterbid for U.S. rival DuPont. The price would have to include a whopping premium – and cover a $1.9 bln break fee. The tax benefits alone could make the agreed-upon $130 bln union and spinoff with Dow Chemical close to ironclad.
Microsoft boss shows refreshing M&A restraint 4 Mar 2016 Satya Nadella reportedly declined to buy corporate messaging service Slack for an eye-popping $8 bln. The trendy startup may currently be valued at up to $4 bln. Nadella’s caution is an improvement on former CEO Steve Ballmer’s lavish spending on aQuantive, Nokia and the like.
Chinese tycoon’s U.S. movie merger has rare logic 4 Mar 2016 Wang Jianlin’s AMC cinema group will buy American rival Carmike for $1.1 bln. It looks like a rational deal at a sensible price – something lacking from the property magnate’s recent splurge on movie studios, theme parks and soccer clubs. Perhaps financial reality is kicking in.
Wall Street sees ray of hope in SunEdison woes 3 Mar 2016 The likes of Citi and Goldman have soured on backing the troubled energy company’s purchase of Vivint, and they may have found a way out: the buyer’s failure to deliver current financials. It’s a breach of contract and a chance for the banks to avoid losses and maybe boost fees.
Darty bids will leave investors well upholstered 2 Mar 2016 The electrical retailer’s 662 mln pound merger with French bookstore Fnac has been gazumped by furniture retailer Conforama. Fnac could pay a lot more, and add cash. But Conforama’s parent seems intent on diversifying away from South Africa. Darty can sit tight for a better deal.
Caixabank’s BPI ambitions require African solution 2 Mar 2016 The Spanish lender is reportedly in talks to acquire Angolan investor Isabel dos Santos’ stake in the Portuguese bank. But first it needs BPI to find a way to cut exposure to Angola. Otherwise Caixa’s efforts to control BPI will be no more successful than previous attempts.
AB InBev opts for speed in discount Chinese sale 2 Mar 2016 The brewer is selling SABMiller’s share of a joint venture that makes China’s top beer brand for just 5.2 times EBITDA. The $1.6 bln deal makes it easier for Beijing to approve AB InBev’s takeover of SAB. Besides, the Belgian group had little prospect of ever controlling Snow.
Deutsche Boerse’s LSE bid could slip up on ICE 1 Mar 2016 The U.S. exchange may crash a merger between Germany’s exchange and its UK peer. Cash and a higher premium would be enough to turn LSE investors’ heads. The German group can counter with big synergies or hike its own bid - but that might annoy customers and its own shareholders.
Honeywell and UTC give tour of M&A sausage factory 29 Feb 2016 The potential $160 bln merger is worth $108 a share to United Technologies owners, maybe as much as $134. No, wait, it’s $101. Synergies add $40 bln of value. Or is it $23 bln? Maybe zero. Antitrust aside, the back-and-forth offers a glimpse into the messy process of dealmaking.
Amazon pantry raid should worry UK grocers 29 Feb 2016 The Seattle giant’s move into British fridges, via a deal with Wm Morrison, is starting modestly. Just 5 pct of UK grocery sales happen online, and profit is scarce. But Amazon has three things in its favour: size, a tolerance for low margins, and no pesky real-world stores.
Genel shock shows price not oil’s only risk 29 Feb 2016 The Kurdistan oil explorer downgraded one of its largest fields in Northern Iraq, simply because its wells will run dry faster than thought. While today’s oil price matters, so does having enough reserves to still be pumping when prices eventually recover.