Alibaba spots pricey treasure in Weibo’s network 30 Apr 2013 The e-commerce giant has paid a punchy price for an 18 pct stake in the Chinese microblogging phenomenon. A $3 bln valuation is a lot for a business without much in the way of revenue. Alibaba may lure some Weibo users to its stores, but its thinking looks mainly defensive.
Chrysler value spat may offer Fiat silver lining 29 Apr 2013 The Italian automaker and a union trust are $3 bln apart on the value of the 41.5 pct of the Motown manufacturer Fiat doesn’t already own. Yet the outcome – full integration – isn’t in doubt. In the end, an urgent need to raise equity may hasten Fiat’s move from Italy to America.
Pressure builds on Vodafone to make U.S. exit 25 Apr 2013 Verizon has hired advisers to help it buy Vodafone out of the duo’s mobile JV, Reuters says. Vodafone shares rose, although the mooted $100 bln price looks low. Vodafone is staying silent, but with the markets lapping up a string of stories, momentum is building for a deal.
Etihad bets on India in pricey Jet Airways deal 24 Apr 2013 The Abu Dhabi carrier is throwing indebted Jet Airways a $600 mln lifeline for a 24 pct stake and control of its loyalty programme. But the generous 32 pct premium suggests Etihad will expect more than a minority role at the Indian airline.
Thai tycoon rediscovers joy of debt in $6.6 bln bid 23 Apr 2013 Fresh from the leveraged purchase of a stake in insurer Ping An, Dhanin Chearavanont is borrowing $6 billion to buy cash-and-carry group Siam Makro. For Thailand’s richest man, a combination with his convenience stores makes sense – as long as Asia’s boom keeps the cash flowing.
ABB takes a shine to solar 22 Apr 2013 The Swiss engineer is buying Nasdaq-listed Power-One for $1 bln. The solar glut has spelt financial misery for many, although ABB says its target is in a sweet spot. ABB is being unusually acquisitive for a European blue-chip. It needs to show investors its M&A strategy makes sense.
This time the ENRC board has to show real mettle 19 Apr 2013 A possible bid led by one or more of the troubled Kazakh miner’s dominant shareholders could offer minorities a welcome exit. But there’s a serious information gap to cross. The cleanest way for the board to secure a robust asset valuation is to get an auction going.
Hostile drug deal gets too clever for its own good 18 Apr 2013 Finance firm Royalty Pharma tried to use Elan’s $1 bln stock buyback to swoop up the entire company. But it devised a puzzlingly complex tender offer that ended up replacing a solid long-term shareholder with investors much more likely to demand a chunkier premium.
Crackdowns only make M&A leaks more tempting 17 Apr 2013 Dealmakers say tougher rules and enforcement are behind new data showing news is trickling out less often about companies for sale. Loose lips come with less chance of deals closing, but they also coincide with higher premiums. Some bankers will always fancy that risk-reward mix.
Gunsmith finds cold shoulders on Wall Street 17 Apr 2013 Financiers typically turn away fees as willingly as dogs give up steaks. But major banks are leery of financing bids for Freedom Group for fear of damaging their reputations. Making assault rifles has joined pornography on the list of activities with risks that money can’t hide.
RTL is a gamble on the future of old-fashioned TV 17 Apr 2013 Bertelsmann is reducing its exposure to TV by selling a chunk of RTL. The German broadcaster seems well-placed to deal with the status quo, but the longer term prospects are less clear. Internet distribution channels present free-to-air terrestrial TV huge headaches.
Wall Street crime fighters need trustbuster tips 16 Apr 2013 New Department of Justice antitrust chief William Baer is near a deal with AB InBev and backing off defense lawyers in some cases. He’s also putting corporate wrongdoers in jail. Prosecutors still chasing bankers should follow his lead and get wiser about picking their battles.
End of an era for the Xstrata gravy train 16 Apr 2013 The miner’s outgoing CEO will get 14 mln stg for yielding the top job at the combined Glencore Xstrata, instead of serving out a six-month transition. Mick Davis is taking what’s contractually his. But pay for no work rankles. Investors and compliant boards share the blame.
Weaker yen won’t halt Japan Inc’s overseas spree 16 Apr 2013 A strong currency and stagnant home market spurred companies to a record number of foreign purchases last year. Domestic stimulus and the yen’s slide have prompted dealmakers to pause. But Japan’s ageing, shrinking population means corporations must still hunt abroad for growth.
Thermo Fisher gives corporate bidders Life 15 Apr 2013 The healthcare equipment maker is paying $13.6 bln for Life Technologies, edging out private equity bidders by about the value of the expected synergies. The buyer’s shares also rose, suggesting a rational price. After Dell and Heinz, the M&A playing field now looks flatter.
Dish $25.5 bln Sprint bid mixes hype with reality 15 Apr 2013 Buying the U.S. cellphone carrier would help Charlie Ergen’s smaller pay TV firm put its assets to work. But beating the offer from another enigmatic entrepreneur, Softbank’s Masayoshi Son, needed a stretch. Ergen’s is to claim he can find $24 bln-worth of new revenue.
CVC takes opportunistic tilt at Betfair 15 Apr 2013 The buyout giant is eyeing the high-tech bookmaker. A 35 pct premium would imply a 1 bln stg bid. Betfair has had a terrible run since floating. But its luck may be about to change. A turnaround strategy is in place. Persuading key investors to fold now might be tricky.
Bart Becht’s $10 bln coffee run has dash of Buffett 12 Apr 2013 The former Reckitt chief is leading a buyout of D.E Master Blenders 1753, the Douwe Egberts coffee house. The hot drinks world should get a jolt. Like Warren Buffett’s recent mega-bid for Heinz, this deal mixes consumer goods, cheap debt and billionaire backers.
Giant electric utility could net Uncle Sam $20 bln 11 Apr 2013 That’s what the Tennessee Valley Authority might be worth if Washington decides to sell it off. There are lots of caveats, financial and political. But it’s hard to see why the New Deal-era TVA needs to be publicly owned now. And every few billion helps balance the federal books.
Li Ka-shing offers rays of hope to Telecom Italia 10 Apr 2013 The Italian mobile business of Li’s Hutchison Whampoa could merge with the local former monopoly. The Asian tycoon may also buy out some major shareholders. This messy-sounding idea could be vetoed. But Telecom Italia lacks options and needs to end the awful status quo.