Carlyle gives LBO targets cause to flap 20 Jan 2016 The yellow-bellied deal squawker is back. Symantec now will sell Veritas for $7.4 bln, 8 pct less than originally agreed. The separation hurt the data-storage firm’s sales and debt markets didn’t help. Hen-pecked investors should beware dangerous games of buyout chicken.
Shell/BG investors can ignore pre-match nerves 20 Jan 2016 The Anglo-Dutch oil major’s Q4 earnings will fall at least 42 percent - weaker than expected. BG had some bright spots, bolstering Shell’s case to buy its smaller rival. Low oil prices give the $47 bln tie-up an inauspicious start, but the deal probably will still go through.
China’s foreign M&A can keep defying gravity 20 Jan 2016 A $10 bln splurge this year on outbound deals, stretching from ovens to gay-dating apps, contrasts sharply with the global shortfall of confidence in China. Local firms remain well-funded and keen to diversify. Absent a real financial crisis, or a state veto, deals will continue.
NAB sets suitably low bar for Clydesdale float 18 Jan 2016 The Australian lender will IPO its UK arm for as little as 0.6 times tangible book value, a discount to rivals even after recent price falls. Clydesdale’s restructuring means it may eventually deserve better; its current numbers and buy-to-let exposures suggest it doesn’t yet.
Ron Perelman puts Revlon to its own landmark test 15 Jan 2016 Thirty years after buying the cosmetics maker in a controversial court fight, the billionaire investor may sell it. His legacy is a bedrock M&A rule: Boards must get the best deal for shareholders. It’s a contribution to the law that may even surpass his financial deeds.
Shell/BG optimism outweighs oil pessimism 15 Jan 2016 If oil languishes at $30, then Shell’s bid for BG probably destroys value. But if investors were that pessimistic, they wouldn’t be holding Shell shares. With the long-term strategic merits of the deal intact, it should still gain shareholder approval.
GE sells Haier a pricey entrée into U.S. kitchens 15 Jan 2016 The industrial giant is offloading one of the top makers of American cookers, dishwashers and fridges to the Chinese white-goods group. Snatching these appliances is a seminal moment for Haier - akin to Lenovo buying IBM’s PC unit. Shame the $5.4 bln price looks so overheated.
Energy partnerships lack immunity to oil price flu 14 Jan 2016 Many so-called MLPs were supposed to be relatively safe from crude swings, notably U.S. pipeline firms with revenue largely based on throughput rather than price. Energy Transfer Equity’s once-$33 bln deal to buy Williams is Exhibit A for the unraveling of that conceit.
AB InBev mega-bond calls last orders on debt binge 13 Jan 2016 The Belgian brewer received $70 billion of orders for a $25 billion bond, the world’s second largest. It comes as the U.S. credit cycle turns, with corporate balance sheets bloated by buybacks, mega-deals and a lazy Federal Reserve. Vibrant dealmaking may beget a nasty hangover.
Grolsch could leave bitter taste at Asahi 13 Jan 2016 Japan’s top brewer is eyeing beers left over from ABI’s takeover of SABMiller. A mooted $3.4 bln tab for Peroni and Grolsch sounds frothy, especially with limited potential to cut costs. Asahi looks desperate for overseas growth, even at the expense of shareholder value.
Kuoni post-holiday glow explains would-be suitors 12 Jan 2016 Bid interest suggests the $1.1 bln Swiss holiday group was right to get out of traditional tour operating. Its visa processing business looks promising. A buyer wouldn’t get much of a return at current prices, though Kuoni’s potential may not yet be fully visible.
Self-driving car may resurrect Marchionne M&A plea 11 Jan 2016 Fiat Chrysler’s boss is making less noise about consolidation just as the industry revs up duplicative R&D on self-driving vehicles. It’s an expensive shift enticing new, deeper-pocketed competitors that could also slash demand.
Shire’s merger with Baxalta looks a little peaky 11 Jan 2016 The drugmaker’s Chief Executive Flemming Ornskov has clinched his deal to buy haematology specialist Baxalta for $35 billion. The deal brings Shire scale in rare diseases, but offers few cost synergies, plenty of risk and relies on revenue growth that may be optimistic.
Biotech begins its annual bash with a hangover 11 Jan 2016 After a year of astonishing drug approvals, IPOs and M&A, the healthcare industry’s mood is noticeably less revelatory heading into this week’s JPMorgan San Francisco gathering. Inflated valuations could make it harder to persuade investors in attendance to hand over their cash.
South Korean deal offers hint at Facebook’s future 11 Jan 2016 Kakao, owner of the country’s main chat app, is buying top music streamer Loen for $1.6 bln. Asia’s big messaging outfits are all moving into content and e-commerce to cut their reliance on ads and games. The same logic could hold for Facebook’s Messenger and WhatsApp services.
Wanda’s Hollywood ambitions show legendary savvy 5 Jan 2016 The Chinese entertainment group is adding the U.S. studio behind “Jurassic World” to a portfolio that includes a Spanish soccer team and Ironman races. Buying Legendary Entertainment should help fill seats in its cinemas globally – and perhaps even bolster China’s soft power.
French telcos’ next call: sweet-talking consumers 5 Jan 2016 Orange and Bouygues are eyeing a tie-up that would give the French telecoms operators half the market. The state’s 23 pct stake in Orange makes the deal more likely to succeed, unless the EU intervenes. The key may be convincing customers of the long-term benefits.
Healthcare M&A will wear down in 2016 4 Jan 2016 Obamacare and tax avoidance spurred over $550 bln of U.S. deals in 2015. That’s three times more than the previous record. With the obvious combinations already struck, acquisitive companies hurting and trustbusters sharpening their pencils, a repeat will be challenging.
Viacom, Time Warner among 2016 merger wannabes 31 Dec 2015 U.S. media distributors such as cable outfit Comcast have bulked up, and Apple, Amazon and the like have built new streaming models. The giants have 12-digit valuations. With the exception of Disney, traditional content makers are looking puny. They’ll feel the urge to merge.
Fund glut will send Asia’s buyout barons off-piste 30 Dec 2015 Local private equity firms are flush with unspent capital. Though that’s a global issue, it’s more acute in Asia due to a dearth of sizeable takeover targets. Firms will be tempted to overpay for assets, buy businesses from rivals, or drift into unfamiliar kinds of dealmaking.