ITV approach too greedy 23 Mar 2006 Goldman will need to inject more capital or leave existing shareholders with more of the equity if its scheme is to fly. Particularly as ITV could gear itself up, find a new boss and even look for a white knight.
Bayer’s E16bn bid for Schering looks like a winner 23 Mar 2006 The German conglomerate is acting as Schering's white knight. Its bid of E86 per share trounces Merck's hostile offer of E77. Merck will be hard pressed to beat this offer. Bayer has greater synergies with Schering than Merck does.
ITV would have ceded control for sellable deal – exclusive 23 Mar 2006 The UK broadcaster s board might have accepted a deal that locked in the consortium for longer and offered a cash alternative. These demands don't look wildly onerous. Charles Allen is pretty lucky to survive.
GM closes commercial mortgage sale to KKR 23 Mar 2006 By selling a 78% stake, GM s finance unit captures $1.7bn of cash. That s helpful, but it s just a fraction of GMAC s book value. This piece of GMAC was always going to be the easy sell. The GMAC auction is still troubled. Death by 1000 cuts is still not averted.
Arcelor shouldn’t sell minority stake to Russian oligarch 22 Mar 2006 Reports that Russia s third richest man, Vladimir Lisin, wants a 15% stake in the Luxembourg steel company are faintly worrying. If he buys in the market, fine. But if Arcelor sells him shares, that could block Mittal s hostile bid, hurting other shareholders.
Endesa shouldn’t take Gas Natural to court 22 Mar 2006 There's no point. Gas Natural's bid has been trumped by E.on's far higher bid. Indeed, the lawsuit may actually put that bid in jeopardy. The Endesa board may conclude it s not worth the risk.
Goldman, Blackstone and Apax try to nab ITV on the cheap 22 Mar 2006 By taking a £1.5bn stake in the UK broadcaster and gearing up, private equity would effectively control ITV without paying a premium. Sure, investors would get to ride on the coattails of private equity. But the alternative is to do it themselves.
Enel bid may flounder through lack of political support at home 22 Mar 2006 The Italian centre left, which is likely to take power next month, now seems at best lukewarm about Enel making a hostile bid for Suez. If Enel's board postpones a decision on whether to bid until after the April elections, that may be the end of its ambitions.
Vivendi agitators have the right idea 22 Mar 2006 A US private equity group has taken a small stake in the French media group with the aim of breaking it up. Great idea. But France's establishment is unlikely to let its champion go to pieces, especially at the hands of a group with questionable credentials.
Sanpaolo shouldn’t be tempted by ho-hum merger 22 Mar 2006 The E29bn Italian bank should be engaging in a vigorous costcutting takeover of one of its smaller rivals. But that's not its style. The worry is that, out of a desire to avoid being bought by big shareholder Santander, it might instead go for a lowimpact merger with MPS.
Schering makes awkward bite for any white knight 21 Mar 2006 The German drug group s stock may be trading above Merck s E14bn hostile offer. But Schering s awkward collection of businesses means there is no natural white knight. A breakup might be key to unlocking value.
Luxembourg should resist temptation to block Mittal 21 Mar 2006 Throwing obstacles in the way of Mittal's takeover of Arcelor would amount to cutting off its nose to spite its face. The tiny country thrives because it is viewed as an open financial centre. Meddling in the free market would put that reputation at risk.
Mood music may point to Enel compromise 21 Mar 2006 There is so much love pouring out of France in the direction of the Italian utility that you can almost touch it. That s not surprising. A deal would be in everybody s interest except perhaps the Suez shareholders.
Aviva in play as much as Pru 20 Mar 2006 The UK insurer faces competition from European peers in its attempt to buy its domestic rival. The stakes are high. Aviva could be gobbled by Axa if its suit fails. By refusing to go hostile, it has left itself exposed.
Schering must fight value-based defence 20 Mar 2006 The German drugs company claims to have turned its back on poison pill defences. That s good news. But it will struggle to come up with a convincing case to stave off Merck.
NYSE tries to make LSE numbers work 20 Mar 2006 Big Board chief John Thain is expected to engage Nasdaq in a battle for the London market. But like Nasdaq, he risks destroying value. The LSE s share price is too high for either to make a return above their cost of capital. They need other reasons to pull the trigger.
Investors shouldn’t dismiss Aviva’s Pru bid 19 Mar 2006 It may seem pretty mean. The UK insurer is only offering a 10% premium to its rival's share price. But the real scope for value creation in this deal comes from a stock market revaluation of the combined business.
Idea of transatlantic bid for ZFS is ridiculous 17 Mar 2006 The market has lapped up suggestions that St Paul Travelers of the US might buy the Swiss insurer. But the financial and strategic merits of the idea are dubious to say the least. ZFS is more likely to buy than be bought.
Vodafone snaps off Softbank’s hand to quit Japan 17 Mar 2006 That has denied Vodafone the chance of a better offer. But it ensures that its beleaguered CEO gets the deal he needs to save his bacon. The mobile operator has rushed to accept a £8.9bn bid for its Japanese unit, giving private equity suitors the cold shoulder.
Body Shop takes the cash from big slap 17 Mar 2006 L'Oreal's £652m bid is a good deal for the UK beauty retailer, which is less differentiated now most cosmetics groups claim to be ethical. The French group gets to diversify its brand portfolio. But it's less clear why it wants the dubious benefit of a high street presence.