Wal-Mart admits defeat in German trolley wars 28 Jul 2006 The retail giant failed to make the grade in Germany, thanks in part to savage competition and an inability to exploit its buying power. But the real killer? Its lowprice strategy wasn't a differentiating factor in a country already stuffed with lowcost stores.
Tronchetti holds banks to Pirelli Tyre IPO price 27 Jul 2006 In selling 39% of the tyre subsidiary for E1.9bn, Pirelli s boss has negotiated a price at the bottom of the range of its pulled flotation. The banks look generous, given falls in other tyre companies. Investors may question what the banks are getting in return.
Credit Agricole made to pay up for Emporiki 27 Jul 2006 The French bank s raised bid has earned it the backing of the Greek government, putting it in on course to scoop the E3bn deal. But the sweetened terms leave Credit Agricole looking generous. That may haunt the bank next time it opens its cheque book.
Phelps’ Inco bid looks worse without Falconbridge 26 Jul 2006 The US copper firm's double whammy bid for the nickel miners needed the synergies between the two Canadians to make the numbers work. But Xstrata now looks set to win Falconbridge. That leaves Phelps' Incoonly offer underwater.
E.on to get a rough ride in Spain 25 Jul 2006 The speculation in Madrid is deafening. It seems the German power group is going to have tough time getting its bid for Endesa through. It's hard to see how the regulator could justify imposing tough conditions. But it leaves E.on with a difficult dilemma.
The biggest risk in HCA deal is political 25 Jul 2006 Government intervention in healthcare could play havoc with the fine financial calculations underlying the hospital group's buyout. HCA's close to ties to the Senate's majority leader Bill Frist have helped in the past. But they could turn counterproductive.
Amvescap gambles on Wilbur Ross 24 Jul 2006 The fund manager s $375m purchase of WL Ross brings together the separate worlds of traditional asset management and private equity. Buying talent in the financial services world rarely works out as well as planned. But this deal could be an exception.
Will HCA’s $33bn LBO best RJR’s return? 24 Jul 2006 The takeover of the hospital chain by Bain, KKR and Merrill establishes a new private equity record, trumping the RJR deal. But unlike the lacklustre performance of its predecessor, it is easy to see how HCA s new owners can make this one work out financially.
Debt markets open for HCA deal 24 Jul 2006 The biggest buyout of all time won t have any problem attracting investors. But that doesn t mean they ll support a slew of megadeals. Because of its low leverage, growing ebitda and a nearly recessionproof business, HCA may have an easier time raising funds.
M&B pays top whack for Whitbread pubs 21 Jul 2006 This was a deal the UK pub operator was determined to do, and there was always a danger the price could have been higher still. In fact, the price looks reasonable providing M&B s highlyrated management team can turn around Whitbread s failing estate.
Xstrata goes all out in pursuit of Falconbridge 19 Jul 2006 The UKlisted miner has added another 7% to last week s already enhanced bid. It s also willing to take under 50% of the shares. It's making full use of loyal backers. The new bid could be enough to stymie rival PhelpsInco, if their shareholders don t give up first.
Gloom overwhelms fickle fund managers 19 Jul 2006 In two months, they ve dropped from mild economic doubt to the worst pessimism in a decade, according to a Merrill Lynch survey. Sentiment has deteriorated much faster than reality. With cash balances high, there could be room for a relief rally.
Break-fees can damage an auction 18 Jul 2006 Take McCarthy & Stone, which has agreed to pay a breakfee only to one bidder. This may choke off rival bids for the UK housebuilder. UK listing regulations are partly to blame. But boards should be wary of being sucked into restrictive fee arrangements.
Why is Vivendi looking at Pages Jaunes? 17 Jul 2006 It s not obvious why the media and telecoms group should own the yellow pages company, even if the numbers might stack up. That might make it a pretty lowrisk acquisition. But the worry is that Vivendi s conglomerate discount will widen further.
Verizon raises firepower with directories spin 17 Jul 2006 Carving out its yellowpages business to shareholders would reduce the telecoms company s net debt by a fifth. That would give it more ammunition to go after Vodafone s 44% stake in Verizon Wireless. But Verizon shouldn t rush a deal.
General Motors and Ford should merge 14 Jul 2006 That may sound wacky. But the Big One s bargaining power with unions, suppliers, dealers and governments would bring giant synergies. It s also not hard to justify on antitrust grounds, especially as market share declines continue.
Valassis highlights weakness with $1.3bn deal 14 Jul 2006 Its $1.3bn cash offer for bigger rival Advo smacks of desperation about declines in Valassis' core business. The offer came just days after a profit warning and the planned synergies barely cover half of the premium paid.
Aviva sweetens the pill on $2.9bn AmerUs deal 13 Jul 2006 A betterthanexpected trading update and lowerthanexpected price may ease some worries about the UK insurer s US buy. But it s still hard to get very bullish about a deal that gives Aviva no more than a toehold in a huge, highly competitive market.
Shock EU ruling on Sony/BMG threatens EMI deal 13 Jul 2006 An EU court has annulled the Commission s 2004 clearance of the music deal. Sony and BMG may have to renegotiate the whole thing. That's not just a bore for them. It potentially puts the EMI/Warner deal in jeopardy.
Matalan MBO puts minorities on the defensive 11 Jul 2006 The chairman and 53% shareholder is planning a bid for the UK retailer. But in doing so, he has already angered other investors. In this unusual situation, there s only so much the board can do. But they can at least hold out for a fair price or just say no.