KKR and Marshall Wace marry need with ambition 9 Sep 2015 The buyout shop’s purchase of 25 pct of Marshall Wace creates an odd beast: KKR doesn’t get control, and the precedents are mixed. Still, asset managers want scale and diversity, and the buyout business is challenged. If the tensions can be managed, it looks a logical trade.
Heineken crafts telling move away from global beer 9 Sep 2015 The Dutch beer giant has bought into a Californian brewer of pale ale. The undisclosed financials will be small in the context of this 40 bln euro company. But strategically it is a big deal. Heineken is accepting it needs more than fizzy beer in green bottles.
Blackstone hotel deal may include early checkout 8 Sep 2015 The buyout firm is paying $6 bln for Strategic Hotels, owner of Four Seasons and Ritz-Carlton properties. The 13 pct premium seems measly given the appetite of foreign buyers for luxury lodging. Maybe Blackstone’s rewarding commercial real estate breakup of 2007 would work again.
Li Ka-shing’s power deal is a tidy-up too far 8 Sep 2015 The Hong Kong tycoon wants his CKI unit to buy the rest of $18 bln affiliate Power Assets. Li’s latest restructuring would create a simpler, cash-rich firm with lots of M&A opportunities. But the all-share, no premium tie-up doesn’t look great for Power investors.
Mylan $28 bln offer not good enough for Perrigo 8 Sep 2015 The generic drugmaker’s hostile bid comes with a skimpy premium, and is mostly in its own paper. Perrigo investors shouldn’t want stock in a shareholder-unfriendly company with bad governance and financial risk. An auction could generate a better outcome than selling to Mylan.
Media General’s TV roll-up suffers print noise 8 Sep 2015 The owner of some 71 local U.S. stations is buying Meredith for $3.1 bln. Media General will get 17 more TV properties. But it will also be stuck with a raft of magazines. The modest 12 pct premium and decent synergies provide some buffer against the challenge of selling them.
Woodside’s $8 bln LNG bid needs more gas 8 Sep 2015 The Australian energy group has pitched an all-share takeover to rival Oil Search. Woodside’s strong balance sheet would provide cheaper funds to develop Oil Search’s Papua New Guinea assets. But a 14 pct premium for a target that isn’t in financial distress looks under-powered.
Tesco sells Seoul for a decent price 7 Sep 2015 The UK grocer is offloading its South Korean unit for $6 bln-plus in Asia’s largest-ever buyout. That’s a solid result given wider market wobbles and falling margins at Homeplus. South Korea’s burgeoning private equity market and a paucity of big deals in the region helped.
Tesco’s global hopes can survive Korea sale 4 Sep 2015 Britain’s biggest grocer is close to selling its supermarkets in South Korea, reports say. The mooted 4.3 bln stg proceeds would cut net debt in half and relieve operational headaches. Yet an exit need not be the end of Tesco’s international ambitions.
Chinese plane-hire deal survives market turbulence 4 Sep 2015 Bohai Leasing’s $2.6 bln bid for Dublin-based Avolon confirms China’s desire to grow in aircraft rental. The $31-a-share offer is slightly below Bohai’s indicative bid a month ago. But rising interest rates and the falling yuan could have been reasons to drive a harder bargain.
Yoox glee at Net-a-Porter exit may wear thin 3 Sep 2015 Shares in the upmarket online retailer popped 5 pct as Net’s founder cashed out of the merger agreed in March. Terms of the severance deal with Natalie Massenet confirm that Yoox bought its rival at a bargain price. But it is losing know-how at an important time.
Fosun global ambition clashes with market reality 3 Sep 2015 The Chinese conglomerate’s bid for private bank BHF Kleinwort Benson comes with alluring logic and a reasonable premium. That might not be enough. Weak markets in China, and an apparent belief that Fosun will offer more, are pulling in opposite and unhelpful directions.
Novo Banco has issues – Chinese owner or not 2 Sep 2015 Insurer Anbang is no longer in line to acquire the bailed-out Portuguese bank. Yet given rival Chinese group Fosun remains in the race, Chineseness is unlikely to be the problem. Any buyer for Novo Banco needs to get comfortable with its uncertain capital and litigation bills.
Electra’s 1 bln stg caravan deal gives it a break 1 Sep 2015 The UK private equity fund is merging its Park Resorts caravan business with Parkdean, a rival. The terms suggest it has more than doubled its money in around three years. That will help Electra if Sherborne, its uppity 29 percent shareholder, raises new complaints.
Focus Media relisting defies China’s market rout 1 Sep 2015 The advertising group is trying to list again in Shenzhen after a previous attempt in June fell through. But despite the stock market slump, Focus Media’s $7.2 bln valuation is unchanged. Other U.S.-listed companies eyeing a return to the mainland may need to be more realistic.
El Corte Ingles deal marred by dynastic feud 31 Aug 2015 The Spanish department store has ousted a dissident family shareholder after it objected to the 1 bln euro stake sale to a Qatari Sheikh. That seems draconian, even if the terms of the deal lately look better for the Sheikh. It reflects the big challenges facing the company.
Lower oil will unclog more pipeline deals 28 Aug 2015 For oil majors desperate to protect their dividend, selling non-core infrastructure not linked to oil prices is a no-brainer. There is plenty of interest from investors, as Total’s pipeline sale in the North Sea shows. That should help overcome thorny deal issues.
With strong new backer, Olam gets what Noble needs 28 Aug 2015 Mitsubishi is backing a Singapore-listed trader bashed by short-sellers, paying $1.1 bln at a big premium. Noble needs such a vote of confidence. But the Japanese group is actually endorsing Olam – a firm supported by Temasek that has been spared the worst of the commodity rout.
China bad bank pays high price for respectability 28 Aug 2015 Cinda Asset Management started as a dump for dodgy bank loans but expanded into funds, insurance and brokerage. Now it’s looking to swallow Hong Kong lender Nanyang for around $8.8 bln. At more than twice its own book value, Cinda needs many benefits to make the deal stack up.
Dole boss is bad apple for buyout barrel 27 Aug 2015 A judge says David Murdock duped shareholders, independent directors, lawyers and bankers when he took the produce vendor private two years ago for $1.6 bln. The deceit will cost him $150 mln. It’s also a sad reminder that even carefully vetted deals can be rotten at the core.