Resolution chases another audacious deal 3 May 2006 The insurance group only recently failed to buy Standard Life. Now it is trying to buy another larger entity Abbey s life business. Why is it being so aggressive? Simple. Its mission is to roll up unwanted UK life businesses. To do that it needs to stay ahead of rivals.
Nasdaq inches ahead in race for LSE 3 May 2006 The US exchange has increased its stake in the LSE to almost 19%, while Euronext says it s no longer discussing an offer for the UK group. But Nasdaq isn't yet home and dry. And it somehow needs to persuade the LSE to come to the negotiating table.
Microsoft should merge MSN with Yahoo 3 May 2006 A better solution would be to put all of Microsoft s internet operation into Yahoo. The software giant mulled taking a stake in the internet group. Shareholders are worried that Microsoft will blow a fortune fighting Google.
Warner rejects £2.3bn EMI bid 3 May 2006 The problem for the UK music group is that it doesn t have much room for manoeuvre. If EMI sweetens the terms much further, it runs the risk of paying away all the value to Warner shareholders.
Aramark MBO fraught with potential conflicts 2 May 2006 The CEO and his mates control almost half the votes. while the caterer s 2001 underwriters Goldman and Morgan are financing the $5.8bn deal. These are manageable conflicts, but only if the special committee of directors does a good job. This isn't always the case.
EMI shouldn’t pay much more for Warner 2 May 2006 The US music group s shares are up 38% over three months in anticipation of a takeover from its UK rival. While there is commercial logic in a deal, tilting the terms further in Warner s favour would stop EMI keeping any of the value.
Microsoft better off without MSN 28 Apr 2006 Stuffed inside the conglomerate, MSN has made little headway against more focused rivals like Google despite massive investment. Until MSN is set free or sold to Yahoo it will divert cashflows to investors and never live up to its potential.
Yell goes for growth with E3.3bn TPI acquisition 28 Apr 2006 The Spanish directories business adds an extra leg to Yell s US and UK operations. But Yell is paying a rich price for that Spanish and Latin American growth.
VNU bid looks hopeless 28 Apr 2006 Private equity s bid for the Dutch media group doesn t have a hope in hell of reaching the allimportant 95% acceptance level. That will leave VNU without management and board. But that doesn't seem to worry dissident investors, who are confident in their own plan B.
Bouygues’ E2bn Alstom purchase looks smart 27 Apr 2006 One might ask why a 21% stake in the engineering firm is needed in order to build global power plants. But there's a bigger potential prize. By helping the French state sell out of Alstom to satisfy EU rules Bouygues' reward could be Framatome, the stateowned nuclear supplier.
Engelhard gears up to fend off BASF 26 Apr 2006 The US catalyst's planned $1.2bn buyback may not preserve its independence but it may persude the German group to sweeten its hostile offer. Engelhard would ideally have found a white knight to get a real auction going. But that doesn't look likely now.
Are Arcelor top managers blindly loyal? 25 Apr 2006 All 350 of them have signed up to the antiMittal crusade. That s a show of unity from the bureaucrats that would make any dictator proud. If the managers were really so ready to rush to judgement, they would need a real shakeup. But some may secretly harbour other ideas.
Rome boos Autostrade’s Spanish tie-up 25 Apr 2006 Given Enel s failure to get into Spain or France and a backlash against crossborder deals it isn t hard to see why Prodi is upset. But the Benettons aren't selling out yet. And even if Italian politicians dislike the deal, it isn t clear there is a lot they can do.
Full steam ahead for healthcare buyouts with £2.2bn deal 25 Apr 2006 Netcare s purchase of GHG as the largest healthcare buyout in Europe shows that enthusiasm for the sector is still strong. Aside from an ageing population, a key driver for these transactions is demand for the properties these companies hold.
Reynolds in $3.5bn chewing tobacco bite 25 Apr 2006 The tobacco group 42% owned by BAT is paying through the cheek to buy the secondbiggest maker of chewing tobacco and snuff. Strategically this makes sense as a hedge against the decline in smokers. But even with 10% growth, the deal looks mildly destructive.
Italian and Spanish E22bn merger driven by tax advantage 24 Apr 2006 Sure, merging Autostrade and Abertis might give it the scale to compete for global infrastructure projects. But the juice is in the special Spanish tax break. To get it, the Italians have had to give up its headquarters and management control.
New York Times buyout not as likely as it looks 21 Apr 2006 A buyout by the Sulzbergers is superficially attractive as the stock tumbles and outside shareholders become increasingly pesky. But the family might conclude it s better to put up with sniping from powerless shareholders than paying heed to banks or private equity.
Thomson investors will be wary of management buyout 21 Apr 2006 Investors naturally distrust MBOs because insiders could underbid. And this one would carry several potential yellow flags. The French group is run by a politicallyconnected, exinvestment banker. And a private equity fund already has a say in the boardroom.
Arcelor shareholders should reject board 20 Apr 2006 The steelmaker isn t letting its owners vote directly on its defence plan. The best they can do is not to reelect the directors. It s ironic that Arcelor has thrown away its best competitive advantage in the fight with Mittal its corporate governance.
Bayer should break itself up 19 Apr 2006 The German conglomerate should use its E16.5bn Schering bid as an opportunity to sell off its chemicals business, among other units. This would erase a 20% conglomerate discount and reduce the need for a big dilutive capital hike to fund Schering.