Matalan LBO would be hard to swing 20 Jun 2006 A private equity bid for the UK value retailer would be difficult to square. Trading is dire, and there s little room for gearing. The best chance is for chairman John Hargreaves to launch a solo bid. But he might find it tough to offer a decent premium.
NYSE makes an odd case for buying Euronext 20 Jun 2006 The US exchanges's top brass are supposed to be selling the deal. But recent comments suggest they aren't sure what the benefits really are. Maybe there's some Machiavellian scheme behind it. But the message for NYSE shareholders seems to be lots of risk with little compensation.
Clayton Dubilier’s beauty deal uglier than it looks 20 Jun 2006 The LBO firm s purchase of US retailer Sally Beauty at first blush looks out of character for the turnaround specialist. It s taking a minority of a public firm and keeping management. Nothing novel about that. But to make money, Sally needs a makeover.
Nokia takes gamble with Siemens combination 19 Jun 2006 Injecting Siemens s telecom equipment group into Nokia s is a lowrisk strategy for the Germans and a highrisk one for the Finns. Siemens rids itself of a managerial headache. Nokia gets to run a much larger venture but with problems to match.
Veolia’s Vinci approach misconceived from start to finish 19 Jun 2006 An "acquisition risk" discount may now be baked into the price. As for Vinci, the construction and tollroad operator looks more vulnerable. Investors are left wondering whether the French water utility needs to do a deal and if the next one will be as unappealing as the last.
Imperial deal for Altadis would stub out value 18 Jun 2006 A tieup between the two tobacco giants might make strategic sense. But it would be hard to justify financially. The trouble is that Altadis s shares are very highly priced. While that s the case, Imperial should bide its time.
Dawn raids are back 18 Jun 2006 As the recent bids for BAA and AB Ports show, it s no longer enough to get a target s agreement to a deal. You need a wodge of shares too. Why? It s because financial investors are competing fiercely for assets.
Vinci should be wary of Veolia bear hug 16 Jun 2006 The French water company has come out with a headline synergy number that suggests a deal might create some value. But there's no details about where these benefits would come from. Veolia needs to spell them out if it wants to be taken seriously.
Suez/GdF merger heading for the long grass 16 Jun 2006 With the French government in disarray, the chances of a deal going ahead this side of the 2007 French presidential election look remote. For Suez shareholders, that will come as a relief. They now have a chance to unlock the true value of the French utility.
Tele2 plays hardball with Versatel hold-outs 16 Jun 2006 The telecoms operator has had enough of hedge funds holding up its Dutch takeover. It may complete the deal without squeezing them out. This reflects growing irritation with hedge funds holding out in bids. But Tele2 is also under pressure from investors can't be seen to pay.
Sale of Berliner Sparkasse won’t prompt privatisation wave 15 Jun 2006 Germany may allow the sale of Berliner Sparkasse with its exclusive brand name to Citigroup or another big bank. But sadly it won t herald a mass privatisation of the country s 460odd stateowned savings banks. The fear about job losses is too great.
Vinci right to reject Veolia approach 15 Jun 2006 The deal to merge the French water utility with the construction company lacks industrial logic. But it may make some political sense. What s in it for Vinci? There is nothing Veolia could do that it couldn't copy itself.
Jana launches largest hedge fund hostile bid 14 Jun 2006 But this is a capitalintensive business. It s questionable whether a hedge fund can take a sufficiently longterm view to maximise value. Jana Partners got impatient with slowmoving shareholder activism. So it s gone hostile on Houston Exploration, a $1.7bn oil company.
Bayer wins E17bn bloody battle over Schering 14 Jun 2006 It has agreed to buy a 22% stake in Schering from Merck for E3.7bn. This means the potentially value creating deal can go ahead. But Bayer has said it may enter cooperative agreements with Merck. Investors should ensure any deal is done at arm's length.
Credit Suisse exits Winterthur cleanly for E7.9bn 14 Jun 2006 With the sale of its insurance arm to Axa, the Swiss bank has drawn a line under the disastrous dealmaking of former boss Lukas Muehlemann. But it can t claim revenge on Axa for selling it DLJ in 2000. The deal looks sound if strategically unexciting for the French.
Misys shareholders over a barrel 14 Jun 2006 The UK software group has little option but to talk to the management buyout group, given Misys' poor share price performance. But Misys would not be in this weak position if the board had turfed out CEO Lomax last year before things got so bad.
Arcelor is giving Mordashov near-control without a premium 14 Jun 2006 The Russian steel billionaire will have a veto on key strategic matters if the proposed merger of his Severstal and Arcelor goes ahead. All the more reason why Arcelor shareholders should try to block this deal and instead back Mittal's bid, which does involve a premium.
ABP agrees to £2.5bn offer from Goldman group 14 Jun 2006 The investment bank s consortium is set to pick up the UK ports operator at a nonbargain valuation of 15 times ebitda. It may not be over yet. The stock is trading above the agreed 820p price. But any counterbidder would face big obstacles.
Veolia’s mooted bid for Vinci lacks logic 13 Jun 2006 Both the French water and construction firms used to be a part of Generale des Eaux, now Vivendi. It s hard to see why, or how, Veolia would want to resurrect the old order. There is precious little overlap, and financing might be tricky.
Sarkozy pulls rug from under Suez/GdF deal 13 Jun 2006 The French interior minister has spoken out against the merger of Suez and Gaz de France, making it that much harder for it to go ahead. But his proposed alternative that the two groups should buy stakes in each other is crackers and will destroy massive shareholder value.