NYSE may be nil-premium white knight 21 May 2006 The US exchange has positioned itself smartly for exchange consolidation. While its rival, Nasdaq, is paying out heaps of cash for LSE, it may get Euronext without paying a premium.
Deutsche Boerse needs more to win Euronext 19 May 2006 The German exchange wants to run the shop after a merger with its Parisbased rival. But it isn t prepared to pay up for the privilege. That may not be sufficient now that Nasdaq has given NYSE an extra incentive to snatch Euronext from under its nose.
Ahold looks ripe for a break-up 19 May 2006 The scandalhit Dutch retailer s recovery has proved patchy, and the synergies between its retail divisions elusive. A full breakup would potentially unlock 30% of value and give investors the choice of what to do with the pieces.
Holders push Euronext against a wall 19 May 2006 The exchange is trying to drum up a bid from NYSE. But investors will force it into a Deutsche Boerse deal unless NYSE bids by next week. That's clearly in the interest of those that have shares in both Euronext and Deutsche Boerse. But not in the broader shareholder interest.
Mittal raises Arcelor offer by a third 18 May 2006 The new mixandmatch offer is not only more generous. Mittal has scrapped its twotier share structure. Arcelor will need some really strong reasons such as an attractive white knight to say no.
Xstrata’s $15bn Falconbridge bid looks canny 17 May 2006 The Canadian target is tied up in a three way battle with Inco and Teck Cominco. Shareholders might jump at the allcash bid from Xstrata. Whether victory will prove sweet for Xstrata s own shareholders is another question. It could work out, if prices don t fall too fast.
Univision highlights difficulty of being Goldman 17 May 2006 The broadcaster s $12bn auction is one of Wall Street s hottest deals, attracting all the top LBO firms and advisors, plus Bill Gates. This puts Goldman in a pickle. It runs the risk of angering private equity and corporate clients by competing against them as a principal.
Vivendi rejects E40bn phantom bid 17 May 2006 It s hard to tell just how serious Sebastian Holdings is about buying the French media and telecoms group. But it may put pressure on JeanBernard Levy to boost the share price. That s no bad thing.
Investor holds cards in Gambro battle 16 May 2006 The Swedish conglomerate s revised E4bn bid for the dialysis group hasn t quieted criticism this is an opportunistic bid because it is. But the 3.6% increase appears enough to swing sufficient votes behind Investor.
NYSE rightly scraps anti-shareholder takeover loophole 16 May 2006 The Big Board wants to stop companies using treasury shares to cede control without a shareholder vote. That s good news for investors. But it comes too late for Sovereign Bancorp shareholders. They argued against its use of the exemption last year with Santander, and lost.
Univision buyout could set new leverage record 15 May 2006 Mexico s Televisa needs US privateequity firms for its expected $12bn bid for the US Spanishlanguage broadcaster to succeed. It s the only way around US regulations. But it may need to lever up to 11 times ebitda or more to pay for it. That d be a record.
AstraZeneca pays for delaying CAT purchase 15 May 2006 The UK drug maker is paying a fat 70% premium for Cambridge Antibody, partly because it was still bound by an existing standstill agreement. Biotech groups are in essence an option. The agreement effectively extended CAT's maturity, which jacked up the price.
KKR fund opens door to hostile LBOs 12 May 2006 But having a licence isn t the same as using it. Although KKR's $5bn listed fund doesn t prohibit hostile bids, KKR won't change its policy. That's understandable while other KKR funds can't go hostile. But if the industry moves to greater reliance on public cash, that may evolve.
Will someone put Repsol out of its misery? 11 May 2006 The Spanish oil and gas company has had a rough few months with a 25% cut in reserves and nationalisation in Latin America. Bidders may be holding off until all the bad news is out. But a deal would make sense.
Buffett ignites M&A guessing game 10 May 2006 The billionaire told Berkshire shareholders he s close to making a $15bn acquisition. Now everyone's drawing up shortlists. Suitable targets fit, like Heinz, Campbell s, Hershey, Masco, Aon and Harley. But it s the stretch ideas Ford and GM that titillate
Austria creates E29bn energy giant 10 May 2006 The marriage of oil and gas company OMV with utility Verbund looks to be one of convenience. The industrial logic isn t really there. It s hard to avoid concluding the Austrian government, which would own about 40% of the beast, has pushed its two champions together.
Mittal increases pressure on Arcelor 9 May 2006 By offering better terms and improved governance in exchange for a recommendation, Mittal has gone some way towards answerings its critics. In setting still more preconditions before agreeing to meet, Arcelor is looking obstinate.
UBS makes Pactual’s bankers earn their premium 9 May 2006 The Swiss bank looks, at $3.1bn, to be paying a premium to beef up Brazil. Goldman Sachs reportedly valued the business at half the price. But at least UBS is getting full control. And, in delaying most of the payment for five years, it has hedged itself against a blow up.
Fisher sells to Thermo for $11bn and low premium 8 May 2006 Given that Fisher is nearly 50% bigger than its buyer, and Thermo s management gets to take over, the 7% premium on offer seems cheap. Moreover, Fisher s managers had their own incentives to sell. Despite these issues it looks the deal will pay off for Fisher shareholders.
Wachovia plays with fire in $26bn Golden West deal 8 May 2006 The takeover of the Mom and Pop thrift would fill out Wachovia s glaring gap in the fastergrowth Californian market. But it comes with housing and credit bubble risk at a hefty price of nearly three times book value. This dream could become a nightmare.