Engelhard finally caves in to $5bn BASF bid 30 May 2006 The US materials group didn t have much choice. Its plan to buy back its own shares at $45 each won little support from shareholders. BASF has answered critics who feared the German chemical giant would overpay. At $39 a share, the deal should deliver value.
Kinder Morgan founder’s $22bn MBO offer looks cheap 30 May 2006 Richard Kinder is offering an 18% premium to take private the energy company he founded a decade ago. That looks low. The stock is already above the offer price. Kinder s 18% stake might discourage other bids, but the board should push for a better deal.
Arcelor shareholders should fight for rights 30 May 2006 The steel group is effectively disenfranchising them by offering them only a bogus vote on its planned merger with Severstal. Shareholders should call an EGM to insist that the Severstal deal is put to a proper vote. They must act swiftly.
Arcelor tries to ram through E10bn Severstal deal 26 May 2006 Whether the deal is any good is another matter. The terms aren't transparent and the idea the deal values Arcelor at E44/share is fanciful. Shareholders aren't being given a fair chance to assess this deal compared to Mittal's hostile offer. This is democracy Russianstyle.
Fortress locks up Marconi pension plan 26 May 2006 The hedge fund is paying £346m for Telent, the overcapitalised rump company formed after Marconi sold most of its assets. Nobody has figured how to separate Telent from its overfunded pension plan. Fortress is essentially buying an option.
Telefonica’s Alierta turns back on big acquisitions 26 May 2006 The Spanish telecoms operator s boss has capped his takeover budget. That looks likely to put some tempting deals out of reach That may limit his ambitions to build a global telecoms empire. But that is the price investors sought in return for their confidence.
Frere splits difference with Mohns in Bertelsmann exit 25 May 2006 By buying Frere s stake for E4.5bn the media firm avoids listing itself but at the price of selling its music assets to raise cash. Meanwhile the Belgian financier finally secures an exit but at a price that makes his return on this investment look mediocre.
Nil-premium US bank mergers reappear 25 May 2006 AmSouth s $10bn merger with Regions illustrates how consolidation in US banking sector can continue given the environment. With synergies worth $2.5bn, a deal made sense. But AmSouth s valuation at three times book meant Regions couldn t justify paying a premium.
OFT throws spanner in BAA bid battle 25 May 2006 The UK competition watchdog's review of the airport market could conceivably lead to a breakup of BAA's monopoly. It may undermine BAA's value. But it could also deter Ferrovial from sweetening its hostile bid.
NYSE has ample firepower for Euronext battle 24 May 2006 The Big Board s debtfree balance sheet leaves it plenty of room to gear up if it needs to increase its offer for the FrancoDutch exchange. Doing so would hit returns from the deal. But offering more cash might soothe Euronext investors worried that NYSE s shares are overpriced.
China joins emerging-market mobile rush 24 May 2006 China Mobile s reported $5.5bn offer for Millicom is a rich price and an effective premium of nearly 100%. China s deep pockets mean it can afford to pay. That means trouble for mature operators struggling to buy emergingmarket assets.
OMV scraps ridiculous merger with Verbund 24 May 2006 The Austrian oil group s planned takeover of its compatriot utility was a clumsy attempt to create a national champion. Combining the two made little industrial or financial sense. The resulting fall in OMV s share price destroyed the political logic too.
Private equity pays full price for Eircom 23 May 2006 Australia s Babcock & Brown Capital is paying a richer multiple for the Irish telecoms operator than Denmark s TDC went for. It has also given favourable terms to its buyout partner, Eircom s pension fund. No wonder B&BC trades at a discount to its net asset value. It has also given good terms to its buyout partner, Eircom s employee trust. No wonder B&BC trades at a discount to its net asset value.
Goldman group pries open ABP’s books 23 May 2006 The UK ports operator warmed to a £2.5bn pricetag an 11% improvement on the offer rejected in March. Goldman Sachs will be relieved. ABP is the only one of its four controversial, unsolicited UK LBO approaches that appears to be working.
Euronext deal would allow NYSE to skirt Sarb-Ox 23 May 2006 The Big Board s share of international listings has plummeted since SarbanesOxley passed into law in 2002. European exchanges have been the beneficiaries. Buying Euronext could give the NYSE a way back into the game.
Euronext vote gives Theodore another chance 23 May 2006 The exchange s CEO did well to drum up two suitors despite being under pressure to sell to Deutsche Boerse. But both bids were unattractive. Unfortunately, the Germans were so far off the pace that Theodore may face an uphill struggle to get NYSE s price up.
Arcelor seeks rival deal to thwart Mittal 22 May 2006 There s nothing wrong with exploring alternatives like buying Russia s Severstal. But shareholders must be given a say. What s more, the scheme being considered with the Russian group isn t likely to create as many synergies and raises thorny questions.
A&L looks pricey target for Credit Agricole 22 May 2006 Buying the UK mortgage bank would appear to offer few synergies. Without them, Credit Agricole would struggle to make the deal stack up. The French bank may be best awaiting better targets. Just because it has a takeover war chest does not mean it has to spend it all at once.
BASF is closing in on Engelhard 22 May 2006 It upped its bid for the US catalyst maker to $39 a share and made it final. An extra $1 may not sound like much, but it may do the trick. Investors don t seem convinced by Engelhard s defence plan a $1.2bn share buyback. And there is no white knight to trump BASF s offer.
NYSE bid puts pressure on Deutsche to do better 22 May 2006 The US exchange may not be paying a premium, but its bid looks superior to Deutsche Boerse s merger of partners . But it won t be easy for Deutsche to improve its proposal. It has, after all, eschewed paying premiums for rivals.