Minority buyouts attract hedge fund swarm 7 Apr 2006 That s because squeezeouts, like NovartisChiron this week, follow relatively consistent patterns that savvy investors can exploit. Many variables that determine premiums can be assessed easily. One big one, though the strength of independent directors cannot.
Ferrovial’s low-ball bid makes tactical sense 7 Apr 2006 By putting a formal, if stingy, offer on the table, the Spanish construction group buys time to negotiate with the UK airport operator. BAA will now have to defend itself. But Ferrovial will still have to be more generous if it plans to win.
BAE puts Airbus stake back to EADS 7 Apr 2006 The UK defence group is the latest strategic investor looking to reduce its stake in the European aviation group. It looks a sensible move, given EADS s risky expansion of Airbus and the strong civil aviation market.
Cerberus dishes out GMAC equity like candy 6 Apr 2006 Up to 50 coinvestors are clamouring for a nibble of the biggest equity investment ever by a leveraged buyout firm. That s because the recordbreaking deal for a stake in the General Motors finance unit is so sweet. Cerberus is paying less than book value.
Computer Sciences LBO looks iffy 6 Apr 2006 And CSC offers less opportunity now that it is already cutting the fat. A big recapitalisation and buyback seems a plausible outcome. CSC has bloated costs and a pristine balance sheet things attractive to private equity. But two buyout attempts have already floundered.
Tchenguiz struggling to put together M&B bid 6 Apr 2006 The property tycoon will have to fork out more than he bargained to get control of the UK pub chain. If he can t persuade shareholders to lower their demands, he could offer stub equity. Or he could walk away.
Fastweb’s E300m payout could breach bank covenants 5 Apr 2006 The Italian cable group promised the payout when it abandoned the sale of the business in February. But it s not obvious that it can pay it. Maybe Fastweb plans to renegotiate the covenants. But if so, it should tell the market rather than leaving it guessing.
Alcatel agrees to satellite tie-up with Thales 5 Apr 2006 The injection of the telecom equipment maker s assets into the French defence group was a necessary step for its merger with Lucent. It paves the way for more European defence consolidation, including a possible tieup between Thales and Italy s Finmeccanica.
Investor AB’s $4.9bn Gambro buyout looks clever 4 Apr 2006 The Swedish investment company is participating in the buyout of the healthcare company in which it already owns a 20% stake. The deal almost triples its stake. Assuming normal levels of leverage, Investor will also take out E90m in cash.
Hedge funds could upset NTL’s bid for Virgin Mobile 4 Apr 2006 The UK cable company has launched its formal £1bn bid for the UK mobile operator. But it isn t done and dusted yet. Virgin minorities must vote to licence the Virgin brand to NTL. That gives them a chance to press for better terms from Sir Richard Branson.
Arcelor turns back on own shareholders 4 Apr 2006 The European steelmaker has ripped up its promise to mount a valuebased defence in favour of blatant obstructionism. It s putting Dofasco, the recently acquired Canadian steelmaker, in trust. That s a blow to Mittal s hostile bid.
International Paper in largest-ever timber land sale 4 Apr 2006 The $6bn of proceeds looks like a good price for International Paper s 5m acres. IP wants to retire debt and invest some of the proceeds. It would create more value by returning cash to shareholders.
TPI at risk of a take-under 4 Apr 2006 Minority investors appear to have gambled that private equity would pay silly prices to buy Telefonica s directories unit. But it looks like they won t. Telefonica may have to sell for less or not at all.
GMAC auction ends reasonably for GM 3 Apr 2006 The outcome is not what GM and its advisers led investors to expect. They saw a strategic buyer with a sterling credit rating sweeping in. Instead GM got Cerberus in a very hairy deal that does not yet assure an investment grade rating. But GM does get its $10bn in cash.
Wacker’s IPO looks reasonably priced 3 Apr 2006 At the top of its E70E80 range, the German chemicals group would trade at a small discount to its European peers. That looks fair. Wacker is growing faster than most of its peers and is exposed to booming Asian markets.
Can private equity ever win unsolicited UK bids? 2 Apr 2006 Financial buyers are increasingly going unsolicited . But they aren t getting anywhere. Look at ITV, HMV, Kesa and LSE. Why? Private equity can t go fully hostile, it doesn t want to pay up and public companies are being more confident about saying no.
Goldman’s ITV bid rightly dies 31 Mar 2006 Although the structure of its consortium bid for the UK TV group was interesting, it was just too greedy and it made tactical errors. Goldman s stingy cash alternative was unrecommendable. But Allen, ITV s boss, shouldn t be complacent. He s had a lucky escape.
Nasdaq hit by curse of LSE 30 Mar 2006 Like the other bidders for the London Stock Exchange, Nasdaq is having to withdraw after seeing the share price run away from its offer. The LSE won t be too upset by the 7% drop in its shares. It s still worth more than it was three weeks ago before it disclosed Nasdaq s bid.
Has US anti-trust policy been relaxed? 30 Mar 2006 Given the Whirlpool/Maytag merger will have over 70% of the US washerdryer market its approval suggests a rethinking of antitrust policy. If regulators are making decisions by divining the future of a market, it opens many possibilities. Hey, why not a FordGM merger?
Hedge funds upset with Moviles buyout 30 Mar 2006 Telefonica has won a recommendation from Moviles for a sweetened E3.4bn offer to buy out minority investors. Hedge funds expected sweeter terms, given Telefonica s history of coughing up in deals. But their scope to create trouble now looks limited.