Yahoo keeping all of its bad options open 3 Feb 2016 The internet firm topped a $4.5 bln Q4 writedown with plans to pursue “strategic proposals” for its search and ad operations. CEO Marissa Mayer also mentioned cutting staff, closing offices and jettisoning products. Selling the core business is still the best of lousy choices.
ChemChina’s Syngenta bid is prickly for Monsanto 2 Feb 2016 The state-owned group is nearing a $42 bln deal for the Swiss seeds and pesticides group. The cash and friendly nature make it better than a similarly valued offer from Monsanto. The U.S. company could improve its bid or turn its attention to BASF. Neither M&A option looks easy.
Sainsbury’s Argos deal checks out 2 Feb 2016 The UK supermarket has bagged Argos owner Home Retail Group for 1.1 billion pounds, a price that leaves it ample room for error. Even if it does no more than cut back obvious overlap, the deal should create value. Both businesses were in a strategic pickle; Home Retail’s was worse.
Express Scripts left vulnerable by contract spat 1 Feb 2016 Shares of the $48 bln drugs middleman were dealt a blow when heavyweight insurer Anthem went public with ambitions to get a better deal. Express will want a quick resolution before serial dealmaker Stefano Pessina at Walgreens Boots opportunistically lobs in a lowball bid.
Online poker CEO gives shareholders an out 1 Feb 2016 The boss of Amaya, owner of PokerStars and other gambling sites, is offering to take the company private for up to C$4.4 bln. Though the shares have fallen by half over the past year, there’s a 40 pct premium in the woolly bid. It could pay to cash out now in case it’s a bluff.
European mobile mergers won’t kill competition 1 Feb 2016 The European Union is reviewing a UK merger between O2 and Three. Other deals are in the works. More concentration raises the spectre of higher bills for consumers. But past tie-ups suggest that’s not inevitable at all.
Alere board’s diligence brings 51 pct premium 1 Feb 2016 A $5.8 bln sale to $56 bln healthcare group Abbott caps a series of good decisions. Appointing a separate chairman, jettisoning Alere’s deal-hungry founder, rejecting his low-ball bid and focusing the business all helped. It shows what engaged investors and directors can achieve.
Aussie port and rail battle defies market gravity 28 Jan 2016 Takeover interest has kept Asciano’s stock afloat in falling markets. Now that local rival Qube has formalised its $6.3 bln breakup bid, original suitor Brookfield is under pressure to respond or lose the backing of Asciano’s board. The recent selloff raises the stakes further.
Zoomlion’s U.S. tilt shows power of state support 28 Jan 2016 The Chinese machinery maker’s $3.3 bln approach to rival Terex defies financial logic, but could make political sense. Beijing makes no secret of its desire to build global brands. Giving Zoomlion the green light suggests it has official backing to be one of China’s flagbearers.
Shell/BG vote is a bet on oil prices bouncing back 27 Jan 2016 More than 80 percent of Shell shareholders approved the tie-up with gas group BG on Jan. 27. That implies they think oil will recover to $60 a barrel, twice its current level. Cost savings help support the deal, but it still requires an optimistic frame of mind.
Twice-jilted Meredith may yet find merger love 27 Jan 2016 The U.S. magazine and TV group lost its $2.4 bln deal with Media General, which has run off with Nexstar. A marriage to Time Inc, planned before Time Warner spun it off, collapsed earlier. It has been solo for nearly two years, so there’s a chance to rekindle the relationship.
Phibro deal resurrects Wall Street’s worst ways 27 Jan 2016 Morgan Stanley’s ex-commodities boss is acquiring assets of the oil-trading shop that once bought Salomon Bros. Breathing life into this old brand is misplaced sentimentality. Phibro’s history is stuffed with coups, excess pay, trading hubris and the buy-high, sell-low mentality.
Dell-EMC deal stuck between two zero options 26 Jan 2016 The computer-storage maker’s market cap has fallen below $50 bln, against an original headline buyout value of $67 bln. And equity prices suggest either the deal is in jeopardy or the VMware tracking stock EMC holders will receive is worthless. Merger overreach may be to blame.
AIG makes late push toward mediocrity 26 Jan 2016 The mega-insurer unveiled plans to sell businesses, slash costs and return $25 bln to shareholders. That’d be a lot for most companies under siege from an activist like Carl Icahn. It’ll only get AIG to a subpar return on equity of 9 pct. This breakup story has further to go.
Banks give U.S. regulators a deal to cherish 26 Jan 2016 Buying cross-state rival FirstMerit for $3.4 bln should make Huntington Bancshares big enough to compete without being too big to fail. With some $100 bln in assets, it’ll be a stronger rival in important Midwestern cities. Even if shareholders have worries, watchdogs shouldn’t.
Sprint staggers into a merger showdown 26 Jan 2016 The smallest of four big U.S. wireless carriers surprised investors with a cheerier outlook. Even so, it’s weighed down by debt and engaged in a price war set off by U.S. authorities blocking consolidation. Eventually, Masayoshi Son’s Sprint will need more cash – or a deal.
Japan’s shareholder-friendly era faces Sharp test 26 Jan 2016 The ailing display-maker is likely to opt for a state-backed rescue over a higher-looking offer from Foxconn of Taiwan. Investors deserve a full explanation. If Japan puts industrial policy first, that would directly contradict its big push to treat investors better.
Johnson-Tyco inversion is insured against politics 25 Jan 2016 U.S. building-controls maker Johnson Controls’ $16 bln purchase of Ireland-domiciled Tyco risks becoming a target for critics of tax-reducing deals. But with an expected $500 mln of yearly savings and a low 11 pct premium for Tyco’s owners, tax savings are gravy, not meat.
Siemens digital deal sets tone for M&A 2.0 25 Jan 2016 The German engineering giant has a history of value-destroying acquisitions. Yet buying U.S. engineering software maker CD-adapco may buck that unhappy trend. The capital goods market faces a digital revolution. More importantly, it looks like Siemens isn’t massively overpaying.
How Symantec let bad math lead to a shaky deal 21 Jan 2016 Carlyle’s buyout of the software company’s Veritas unit was never actually worth the $8 bln headline figure. Excessive leverage was dressed up to make it look workable. Even the new 8 pct price cut is misleading. Boards and investors can help themselves by getting M&A sums right.