T-Mobile US returns to Sprint deal with whip hand 11 Feb 2020 After a judge approved a merger of the telecoms firms, they now need to re-hash the terms. The best-case scenario is that Sprint still gets one-third of the merged company, worth $41 bln. But that looks ridiculous after its poor performance. It probably deserves $6 bln less.
Insurance tie-up leaves Scor out in the cold 11 Feb 2020 The $7.5 bln French insurer fought off an unwanted offer from Covea. Now its erstwhile suitor may team up with rival PartnerRe. That leaves CEO Denis Kessler short of options. If Covea sells its 8% stake in Scor, shares which have trailed the industry will face further pressure.
U.S. mall royalty deal ends with a thud 10 Feb 2020 The real estate company run by the Taubman family is selling to rival Simon Property for $3.6 bln. A 51% premium is hard to pass up. But the deal between mall magnates has been years in the works. One finally selling to the other doesn’t lend much confidence to the sector.
Higher Xerox bid sharpens contrast for HP board 10 Feb 2020 Pushing up the offer to $35 billion removes a big excuse for its larger rival refusing to negotiate. Xerox is even closer to the debt-fueled limit of what it can afford. But the 9% bump makes the price more interesting for HP’s owners. The company's directors need to open up.
KKR can profit from Gulf hospital emergency case 10 Feb 2020 Buyout funds including the U.S. group are eyeing the $1.9 bln NMC Health. Its value has sunk amid attacks by short-seller Muddy Waters, poor disclosure and forced sales by large shareholders. It’s a risky move, but the depressed share price offers any buyer a healthy cushion.
UniCredit’s Mustier rubs salt into SocGen’s wounds 6 Feb 2020 The French boss of Italy’s biggest bank by assets is cranking up returns, cutting costs and boosting capital. Société Générale, where Mustier once worked, is seeing shrinking profit, and abandoning its 2020 targets. CEO Frédéric Oudéa can learn from his friend’s decisiveness.
Thai tycoons set for uphill battle over Tesco Asia 6 Feb 2020 The UK grocer could sell its Asian assets for $9 bln. As the Thai economy slows, foreign buyers are steering clear, leaving the country’s most powerful families to duke it out. With antitrust watchdogs alerted, and financing issues aplenty, a smooth checkout looks unlikely.
ICE-eBay deal would signal return of merger mania 4 Feb 2020 The $52 bln NYSE owner may want to buy the $30 bln online-commerce firm. There’s little benefit to the combo. But it is the kind of tie-up that frothy markets and a lack of savvy alternatives throw up. Investors’ withering reaction should warn ICE boss Jeffrey Sprecher off a bid.
U.S. regulator deal policy is death by 1,000 cuts 3 Feb 2020 The FTC wants to stop the maker of Schick razors from buying Harry’s because it could stanch competition. That foretells trouble for deals like Google’s bid for Fitbit. Yet, T-Mobile US-Sprint was approved. Disruptors are complicated, but unpredictable policy isn’t an answer.
Worldline’s latest deal stretches payments fervour 3 Feb 2020 Less than two years after his last purchase, CEO Gilles Grapinet is offering $8.6 bln in cash and shares for French rival Ingenico. It creates the world’s fourth-biggest payments processor by revenue. Still, the rapid pursuit of scale risks leaving investors with dour returns.
Volkswagen can bump up its low-gear U.S. truck bid 31 Jan 2020 The German automaker’s truck unit has offered $2.9 bln in cash for the 83% of Navistar it doesn’t already own. The premium looks underpowered compared with the benefits of an alliance. But falling volumes leave the U.S. company and shareholder Carl Icahn with few alternatives.
Altria mess runs much deeper than Juul 30 Jan 2020 The Marlboro maker is taking another $4 bln charge on its investment in the vaping company. Its stock price compared to Philip Morris International suggests its e-cigs hedge was misdirected. A merger could be one way out for the ailing business. That may be harder now.
Thyssenkrupp’s ailments give edge to buyout barons 29 Jan 2020 Finnish lift maker Kone is offering 17 bln euros for the German steel giant’s elevator unit. That’s 6% more than the closest private equity bid. But competition regulators could hold up the juicier deal. Given its dismal profitability, Thyssenkrupp may prefer the cleaner option.
Car-parts makers seek solace in climate-driven M&A 28 Jan 2020 BorgWarner’s $1.5 bln swoop for Delphi will help boost its green-engine offerings, the same rationale behind the Peugeot-Fiat Chrysler deal. BorgWarner easily covers the 77% premium with cost cuts. But a struggling Delphi brings with it debt and slower margins.
Capgemini victory over Elliott comes with baggage 27 Jan 2020 The French IT group won a $4.1 bln bid to take control of Altran, which the New York activist tried to veto. The victory is a coup for CEO Paul Hermelin, who steps down in May. But Elliott can block a full takeover. That presents an integration headache for successor Aiman Ezzat.
China puts Washington into awkward M&A role 24 Jan 2020 The government faces the temptation to broker new tie-ups to mitigate the blacklisting of telco Huawei, and unwinding of China-related mergers. True, Beijing-bashing could inspire other deals: think Cisco buying Nokia. But Washington is better as an onlooker than a matchmaker.
UK belatedly bares antitrust teeth over tech M&A 24 Jan 2020 Competition authorities may probe Takeaway.com’s Just Eat deal, even though the buyer doesn’t operate in Britain. As with its Amazon-Deliveroo inquiry, the regulator’s logic borders on paranoia. That’s better than the naivety it showed with Facebook’s 2012 Instagram purchase.
SoftBank’s next problem: Sprint M&A interference 23 Jan 2020 CEO Masayoshi Son values his group’s stake in the U.S. carrier at $29 billion, a reflection of its original deal with T-Mobile US. Investors rightly take a dimmer view. Courts may block the deal. But even if they don’t, T-Mobile has a strong case to lower its price.
Podcast deals put new spin on sorry old tale 23 Jan 2020 Spotify is collecting podcast content in addition to distributing it. The New York Times may be after hit series “Serial.” Splashy deals validate both talented productions and wannabe radio show hosts. But like blogs, low barriers to entry threaten valuations across the board.
Xerox’s HP bid walks, quacks like Carl Icahn 22 Jan 2020 The printer maker may try to oust most of HP’s directors to win support for its $33 bln merger proposal. HP’s intransigence isn’t constructive, but its board is stronger. A proxy fight could leave Xerox activist Icahn in control, with only a small share of the company.