Airgas schools market on long-term greedy 17 Nov 2015 Shareholders will receive $10.3 bln in cash selling to Air Liquide. That’s a 51 pct premium, which also means Airgas has outperformed rivals and the S&P 500 since early 2010 despite being the target of an unsuccessful hostile bid. Successive CEOs played their hand well.
Wall Street gets early warning from Veritas LBO 17 Nov 2015 Banks are on the hook for $5.6 bln of debt after pulling the refinancing for Carlyle’s buyout of the data-storage unit. It may be a blip, but raises fears of a high-yield market stall. It’s also a reminder of the risk lenders take helping pile leverage on low-rated companies.
Media General ups M&A game with Goldman on side 17 Nov 2015 The U.S. local TV broadcaster rejected Nexstar’s $4 bln bid but said it would negotiate. That’s an improvement on sticking blindly to its own deal to buy Meredith, which looks worse for shareholders and strategically odd. New advisers may be helping – and Nexstar could pay more.
Deal cracks open fizzy finance of craft brewing 16 Nov 2015 Constellation Brands is buying San Diego’s Ballast Point, maker of Grapefruit Sculpin IPA, for $1 bln. Though small beer next to AB InBev’s M&A, it offers one of the first glimpses into exactly what established brewers will pay to acquire coolness. The figures are sobering.
Financial vacancy at new Marriott-Starwood inn 16 Nov 2015 The $12 bln merger would create the world’s biggest hotelier. Marriott boss Arne Sorenson touts value creation, but the stated $200 mln in cost savings won’t cover the premium his company is paying. Starwood owners also initially reacted unhappily. The deal is looking defensive.
New Chicago Skyway owners need long investing view 16 Nov 2015 Ferrovial and Macquarie paid $1.8 bln in 2005, $1 bln more than the next bid. Now three Canadian pension funds are buying the Windy City turnpike for $2.8 bln. Thanks to extra debt, the sellers won’t see much profit on their equity. At least the buyers can afford to be patient.
Heads won’t roll at Mylan despite blunders 13 Nov 2015 Rather than take a $40 bln-plus offer from Teva, the drug firm pursued Perrigo, whose owners rejected the bid on Friday. The vote was partly against Mylan’s poor governance – which also makes it unusually hard for its own shareholders to turf out inept executives and directors.
Hulu deal would broadcast mixed signal 13 Nov 2015 Time Warner may buy into the U.S. video-streaming service already backed by Comcast, Disney and Fox. Though the implied value is bound to be far less, Hulu could be worth some $17 bln, according to Breakingviews calculations. The ownership structure warrants a big discount.
China catalyst could spark Syngenta chain reaction 13 Nov 2015 The Swiss pesticides group has rejected a $42 bln bid approach from China National Chemical Corp, reports say. Interest from rival Monsanto was rebuffed earlier this year, and last month the Syngenta CEO stepped down. It looks vulnerable to a round of chemical re-engineering.
AB InBev turns bulge-bracket loan arranger 11 Nov 2015 The beer giant unusually organized its own record $75 bln loan package to help buy SABMiller. In 2014, that would have earned a top 20 slot in global lending league tables. More practically, it burnishes AB InBev’s cost-cutting credentials by saving up to $300 mln in fees.
AB InBev too coy over SAB mega-deal’s benefits 11 Nov 2015 The Budweiser brewer reckons its tie-up with SABMiller will generate cost savings worth around $10 bln. Investors have added roughly $50 bln to the combined companies’ value since the deal was mooted. The gap suggests the market likes the deal more than AB InBev dares to say.
Molson gets tasty chaser in giant beer deal 11 Nov 2015 The Coors owner is paying SABMiller $12 bln for its 58 pct stake in their U.S. venture. By helping ease antitrust pressure on the UK-listed brewer’s $105 bln sale to AB InBev, Molson avoids a premium. Some $200 mln of annual cost savings, plus a sizeable tax perk, are pure gold.
AB InBev’s deal skills turn into an embarrassment 10 Nov 2015 The 11 pct increase in the brewer’s shares since it agreed in principle to buy rival SABMiller for $105 bln has made its cash offer less attractive. Announcing big cost savings, AB InBev’s forte, would make the problem worse. AB has good reason to subtly play down its prospects.
Savings may get $50 bln rail deal across the line 10 Nov 2015 The $22 bln Canadian Pacific could try to buy slightly larger Norfolk Southern. If CP can boost its U.S. rival’s efficiency to match its own, the result would be some $7 bln worth of cuts. That’s enough to cover a premium and compensate for the risk of an antitrust derailment.
China insurer adds U.S. to overseas M&A splurge 10 Nov 2015 Anbang has popped $1.6 bln Fidelity & Guaranty Life into its basket. In 12 months it has spent $4.4 bln on financial groups in South Korea, the Benelux and now America. The strategy is vague and funding opaque. For sellers, though, the Waldorf Astoria owner livens up any auction.
Aussie target Asciano could push for higher bid 10 Nov 2015 The ports and rail group is now fielding competing, $6 bln-plus takeover proposals from Canada’s Brookfield and a break-up consortium led by local interloper Qube. The target’s board may want to see a clearer gulf in value before hitching itself to Qube’s wagon.
New $23 bln woodland monster looks good on paper 9 Nov 2015 Forestry giant Weyerhaeuser is paying a 14 pct premium for Plum Creek, a $7 bln timberland REIT. That’s modest but fair, given $100 mln of expected cost savings and a planned $2.5 bln stock buyback for both sets of owners. Weyerhaeuser’s long transformation looks near complete.
UK brokers take opposing bets on future of trading 6 Nov 2015 ICAP may sell its voice-trading business and related bits to Tullett Prebon for stock, some of which would go to the seller’s shareholders. The mooted deal is messy. But it allows Tullett to double down on its core competence while ICAP can bet on an electronic future.
Darty-Fnac deal carries digital danger discount 6 Nov 2015 Books and music retailer Fnac has sweetened the terms of its bid for homewares rival Darty. Its 615 mln stg offer has board agreement too. The premium is still skinny when set against synergy estimates. That probably reflects the big threat from online rivals.
No knockout in Australia’s $6 bln waterfront brawl 6 Nov 2015 Canada’s Brookfield moved to salvage its takeover of Asciano, buying a 19 pct stake to match last week’s lightning raid by rival Qube. The Aussie challenger could hit back by making a full bid for the ports and rail group. Or antitrust referees could haul Brookfield away.