Acquisitions Monthly articles from August 2002

Acquisitions Monthly archives from August 2002

Messier: counting the cost: plight of Vivendi stands as a warning to the industry. (Insight).(Jean-Marie Messier)(Statistical Data Included)
August 1, 2002... Grandiose strategic vision was hat Jean-Marie Messier boasted about during his tenure as president and chief executive of Vivendi, and he delivered it--along with a little matter of 19bn [euro] of debt. This small detail haunted Messier during...

Consolidation in pharma on the cards: the biggest deal of the year so far took markets very much by surprise. (US deal of the month).(Brief Article)(Statistical Data Included)
August 1, 2002... In a climate of falling stock markets Pfizer's announced takeover of Pharmacia Corp, the largest corporate merger this year, took the markets by surprise. The implications are still to be digested but some market analysts believe it could...

Corus takes transatlantic tonic: HSBC's idea of a Brazilian tie-up for Corus has been well received by analysts. (European deal of the month).(Brief Article)(Statistical Data Included)
August 1, 2002... HSBC's investment banking hierarchy has had to endure a savaging from the press in recent months but it has not got everything wrong. While other banks have abandoned metals and mining coverage in an effort to pursue easier deals, HSBC has...

Synopses of the largest deals in July 2002. (Market intelligence).(Brief Article)(Statistical Data Included)
August 1, 2002... US -- Pfizer Inc (PD definitively agreed to acquire Pharmacia Inc (PH), a manufacturer of pharmaceutical products, in a stock-swap transaction valued at US$59.515bn. PF offered 1.4 common shares per PH share. Based on PF's closing stock price...

The M&A beat goes on: this article is one in a series examining how best to integrate organisational structures to ensure the success of mergers and acquisitions. (Post-merger integration).(Statistical Data Included)
August 1, 2002... In a 1995 review of 30 years of activity, Business Week came to the conclusion that most of the time acquirers actually lose money on acquisitions. Fortune also published similar findings. In The Art of M&A Integration (Lajoux, 1998) 15 studies...

Viewpoints on merger control: "should the European Commission bring its standards for judging mergers in line with the US? And is it doing so?" (Legal and regulatory).
August 1, 2002... "Companies involved in M&A could be helped by moves to bring EC merger control in line with the US approach. Two reforms in particular would be welcome. "Firstly, the criterion for assessing a merger needs reviewing. The US `substantial...

First half 2002 legal adviser league tables: the UK consolidated its position as Europe's hotbed for M&A announced second quarter activity after recording 516 deals with a total value of US$60.9bn. (Legal and regulatory).(mergers and acquisitions)(Statistical Data Included)
August 1, 2002... Linklaters & Alliance came top of the announced rankings for legal advisers at the half-year stage of 2002. This represented a jump of 14 places from the same period of 2001. Linklaters advised on 140 completed transactions with a total value...

Premia much as expected in second quarter: the volume of eligible offers in the quarterly survey remained fairly static during the second quarter of 2002. Only 14 eligible deals were completed between April and June this year. (Market intelligence).(acquisitions)(Brief Article)(Statistical Data Included)
August 1, 2002... The average premia to the target share price one day and one month before the offer or bid talks were announced during the second quarter were 31% and 25% respectively. Although the volume of deals in the first and second quarters were...

Andersen man opts for Robson Rhodes: Andersen fall-out begins and Robson Rhodes advocates robust approach to auditor independence. (Institutions).(Christopher Clayton)(Brief Article)(Statistical Data Included)
August 1, 2002... Christopher Clayton, a former director at Andersen corporate finance in London, has joined RSM Robson Rhodes following the transfer of parts of the Andersen business to Deloitte & Touche. He is one of the first Andersen corporate financiers to...

Hawkpoint plucks out second Morgan Grenfell banker. (Institutions).(Simon Eccles-Williams)(Brief Article)
August 1, 2002... Simon Eccles-Williams is the second former Morgan Grenfell banker to leave Deutsche Bank to join Hawkpoint this year. His departure leaves Deutsche with perhaps only one senior corporate financier--Stephen Lovegrove, the European head of media...

Arc expands again in response to market: Arc Associates, the London-based TMT boutique, is expanding again in response to a modest recovery in the sector. The firm has hired three new bankers. (Institutions).(technology, media, telecommunications)(Brief Article)(Statistical Data Included)
August 1, 2002... John Allen, executive chairman, says of the moves: "We're seeing something of a revival. Smart buyers with cash, including private equity houses, are back in the market, realising that there are some favourable valuations, We expect a good last...

BofA Securities appoints European healthcare chief. (Institutions).(Wilder Fulford)(Brief Article)
August 1, 2002... Banc of America Securities (BofA) has appointed Wilder Fulford as head of healthcare corporate and investment banking for Europe. He formerly was head of European mergers & acquisitions for healthcare, chemicals and basic industries for Merrill...

PricewaterhouseCoopers expands business recovery: PricewaterhouseCoopers has expanded its Business Recovery Services senior management by admitting three new partners and bringing across a partner specialising in capital restructuring and M&A from the firm's Corporate Finance team. (Institutions).(Ian Green, Zuibin Randeria, Heather Swanston)(Brief Article)
August 1, 2002... The appointments strengthen the firm's position as the world's largest practice advising on business restructuring and recovery, and anticipates increasing demand for such services from under-performing companies and their creditors. New...

Restructurings offer hope for TMT M&A: another month, another series of apocalyptic events in the TMT sector. Even by recent standards, July was a shocker. (TMT sector report).(technology, media, telecommunications mergers and acquisitions)(Statistical Data Included)
August 1, 2002... Perhaps the worst news (it had some tough competition) came late on Sunday night, July 21, when WorldCom, the American long-distance telephone company, made the biggest bankruptcy filing in corporate history. WorldCom, which recently...

Rewards tomorrow for B&B: the Building Society dominated the market at the end of July with the news that high street bank Barclays was in talks with a view to a friendly takeover. (FIG sector report).(Barclays Bank PLC's bid for Bradford and Bingley Building Society)(Statistical Data Included)
August 1, 2002... As is traditional over the summer months, the market rumour mill has gone into overdrive in the absence of much concrete activity. The Barclays/Bradford & Bingley merger talk was just the fillip that the morose FIG sector--buffeted by the...

Waiting for BNL, while UCI moves on ONBanca: the message from the bank of Italy is clear. The country's biggest banks must focus on exploiting synergies and their shareholder structures must become more stable. (FIG sector report).(Unicredito Itaqliano S.p.A., Banca Nazionale del Lavoro)(Brief Article)
August 1, 2002... Future mergers and acquisitions will involve medium-sized banks. With one exception, mega-marriages will not be approved while Antonio Fazio, the central bank's governor, continues to hold that job. "We consider that the process of...

Glitches in pipeline for National Grid: the proposed 14bn [pounds sterling] (US$22bn) merger between National Grid and Lattice, the UK's gas and electricity transmission companies, ran into controversy at the end of July. (Utilities sector report).(Statistical Data Included)
August 1, 2002... Allegations against one of the chief executives involved and then the possibility of serious regulatory action against one of the parties have raised questions over the future of the National Grid/Lattice merger. The allegation that Roger...

Chain reaction: Dick Munton and Yagnish Chotai talk about the background to the deal which created one of the UK's largest tenanted pub chains. (Sponsored Article).(Statistical Data Included)
August 1, 2002... The local pub, on the street corner or village green, epitomises the small, independent business. It may only be able to access a limited, local, customer base, but the chances are the clientele will be loyal. Its product range may be...

Monthly sector analysis.(Statistical Data Included)
August 1, 2002... THIS SECTOR ANALYSIS INCLUDES ACQUISITIONS AND BUYOUTS ANNOUNCED BETWEEN 1 JULY AND 23 JULY. UK PUBLIC OFFERS COMPLETED BETWEEN THESE DATES ARE INCLUDED, WHEREAS NEW AND PENDING OFFERS ARE EXCLUDED, THE TRANSACTIONS ARE CLASSIFIED ACCORDING TO...

Moving in the mid-markets (US$500m-US$30m): overview.(acquisitions and mergers)(Brief Article)
August 1, 2002... Overview This month Acquisitions Monthly talks to Ian Jamieson, global head of corporate advisory, on the integration of the hundreds of ex-Andersen corporate financiers and transaction support staff into the Deloitte & Touche fold. ...

Deloitte confident after tough decisions: Deloitte & Touche has taken several hundred ex-Andersen corporate financiers and transaction support staff under its wing. But the move was only taken after a thorough round of job cuts. Ian Jamieson of Deloitte speaks to Neil Sen. (Moving in the mid-markets).(Statistical Data Included)(Interview)
August 1, 2002... Deloitte & Touche Corporate Finance has been transformed by the group's acquisition of parts of Andersen and lan Jamieson, global head of corporate finance advisory, is buoyant. His business has nearly doubled in size to 588 professionals,...

Scotland bravely goes counter-cyclical: the Scottish market plays to its mid-market strengths with the buoyant oil & gas sector proving a shining star in the economic downturn. (Moving in the mid-markets).(Statistical Data Included)
August 1, 2002... Scotland has proved a resilient player in the M&A and private equity arena over the past year, principally because of its mid-market character and also the strong, counter-cyclical, oil and gas sector. The market in Scotland can broadly be...

Driving into Europe: transport operator Arriva is fuelling its continental operations with an Italian acquisition. (Moving in the mid-markets).(Brief Article)(Statistical Data Included)
August 1, 2002... Arriva, one of the UK's biggest ames in passenger transport, is to expand into Italy after purchasing the country's largest privately owned bus operator. The group will pay up to 68m [euro] (US$66.74m) for SAB Autoservizi in the latest in...

IFA sector ready for consolidation: Altium capital has advised on three mid-market fig deals this year. Two of these have centred on Independent Financial Adviser (IFA) company Inter-Alliance. According to Altium, the IFA sector is ripe for consolidation. (Moving in the mid-markets).(Brief Article)(Statistical Data Included)
August 1, 2002... At the beginning of the year Altium advised Evolution Group, a UK-based investment banking and financial services company, on its 7m [pounds sterling] (US$11m) investment in Inter-Alliance Group. The transaction involved Evolution providing a...

Australia's Iress absorbs software provider. (Moving in the mid-markets).(IWL)(Brief Article)(Statistical Data Included)
August 1, 2002... Share market information systems provider Iress has agreed to an A$88m (US$23.5m) merger with financial advisory software group IWL, creating Australia's largest financial information technology provider. The combined entity will cover a...

Wolseley beefs up European operations: the leading manufacturer is on a 200m [pounds sterling] a year acquisition spending spree. (Moving in the mid-markets).(Brief Article)(Statistical Data Included)
August 1, 2002... The world's largest specialist trade distributor of heating and plumbing products has further strengthened its pre-eminence in its field. Wolseley, a UK company, has secured a 23.5m [pounds sterling] (US$36.8m) cash deal for four specialist...

Vestar makes second acquisition in two months. (Moving in the mid-markets).(Vestar Capital Partners L.P.)(Brief Article)(Statistical Data Included)
August 1, 2002... Vestar Capital Partners has greed to acquire SAB WABCO, a manufacturer of brake systems for rail vehicles, from publicly listed Swedish company Cardo for about 240m [euro]. SAB WABCO has six primary production units in France, Italy,...

Tuckey eases the way for Bridgewell: Bridgewell agrees to co-operate with Credit Lyonnais division. (Moving in the mid-markets).(Andrew Tuckey)(Brief Article)
August 1, 2002... High-level contacts have enabled Bridgewell, the UK advisory boutique, to come to a co-operation agreement with Clinvest, the corporate finance arm of France's Credit Lyonnais. Andrew Tuckey, a non-executive director at Bridgewell and a...

UK public M&A declines. (Moving in the mid-markets).(megers and acquisitions)(Brief Article)(Statistical Data Included)
August 1, 2002... The volume of mergers and acquisitions involving a UK public target for the first half of 2002 fell back considerably from the same period last year. The total value of completed and withdrawn deals in the first half of 2002 was 11.442bn...

Behind the buyouts: overview.(Brief Article)(Statistical Data Included)
August 1, 2002... Overview In contrast to the more familiar period of sluggishness and decline, this year's summer months have proved to be a hotbed for buyout activity, with a number of deals announced across a multitude of countries. Ireland appeared...

Sponsors still enthuse over property: Merrill and BoS win informal auction to take Irish real estate company private. (Buyout of the month: Green Property).(Merrill Lynch; Bank of Scotland)(Brief Article)(Statistical Data Included)
August 1, 2002... There was no lack of interest in the equity and debt financing of the 1.06bn [euro] public-to-private of Irish company Green Property. "The company has a good and diverse portfolio. Stock market turbulence wasn't really relevant," says Gordon...

LGV buys Jeyes in joint venture. (Behind the buyouts).(Legal and General Ventures; Jeyes Group PLC)(Brief Article)(Statistical Data Included)
August 1, 2002... Legal & General Ventures (LGV) has formed a joint venture to fund the management buyout of cleaning products business Jeyes Group for US$133m. The UK-based private equity firm formed the joint venture with IWP International, which owns...

Public-to-privates fall from grace: despite falling valuations on Europe's stock markets, the number of public-to-private completions has declined markedly. (Private equity column).(Brief Article)(Statistical Data Included)
August 1, 2002... The continuing slide in European stock market valuations, which has been the cause of so much teeth-gnashing in most sectors of the investment community, should be providing private equity players with a rich source of deal-flow at knockdown...

Cabot takes the building block approach: Cabot Square Capital's strategy involves investing in cash-generative businesses, with high growth potential through build-ups. (Private equity profile: Cabot Square Capital).(Brief Article)(Statistical Data Included)
August 1, 2002... James Clark, founder and partner of mid-market private equity player Cabot Square Capital, describes the company's target as being "transactions in cash-generative businesses and asset portfolios in Europe and the UK.". Cabot typically invests...

3i Marconi deal. (Behind the buyouts).(Brief Article)(Statistical Data Included)
August 1, 2002... 3i's acquisition of Marconi's electronics/telecoms division could be the first in a series of deals brought about by distressed sellers this summer. The European private equity firm has acquired Marconi's Applied Technologies division, the...

Energis rescue in place. (Behind the buyouts).(Energis PLC)(Brief Article)(Statistical Data Included)
August 1, 2002... The bank rescue package for troubled UK telecoms operator Energis was unveiled last month with the UK operations being acquired by a new company called Chelys, which is majority owned by a consortium of financial institutions that have also...

The US makes waves in Europe: US/European private equity activity picked up last month, with Texas Pacific leading the way with the acquisition of Burger King from Diageo. (Behind the buyouts).(Brief Article)(Statistical Data Included)
August 1, 2002... The US was back on the scene in last month's European private equity arena with three announced deals dominating the headlines. Texas Pacific Group went all out when it decided to take a tasty bite of Burger King, the second-largest...

Holmes Place may follow Esporta: the UK health club operator Holmes Place is the subject of takeover bid speculation, with reports focusing on two possible leveraged buyout (LBO) buyers. (Behind the buyouts).(Brief Article)(Statistical Data Included)
August 1, 2002... Holmes Place is understood to have received a bid from Bridgepoint Capital, which values the club at 177m [pounds sterling] (US$275m). This latest LBO offer comes amid ongoing talks with the board regarding a management buyout proposal backed...

RBS arranges secondary buyout of Ward Homes. (Behind the buyouts).(Royal Bank of Scotland)(Brief Article)(Statistical Data Included)
August 1, 2002... The Royal Bank of Scotland's Debt Ventures team, a specialised part of the bank's structured finance division, has arranged the 67m [pounds sterling] (US$104m) secondary management buy-out of Ward Homes Group. The deal allows previous majority...

Telediffusion de France sells for 1.6bn [euro]. (Behind the buyouts).(Brief Article)(Statistical Data Included)
August 1, 2002... France Telecom has reached an agreement with private equity sponsors CDC Ixis Equity Capital and Charterhouse Development Capital and financial group CDC (Caisse des Depots) for the leveraged buyout of a 64% stake in its transmission towers...

What now for Kwik-Fit after CVC buys Halfords. (Behind the buyouts).(Boots Company PLC, CVC Capital Partners, Halfords Ltd.)(Brief Article)(Statistical Data Included)
August 1, 2002... Boots has sold its Halfords car parts and bicycle accessories business to private equity firm CVC Capital Partners for up to 427m [pounds sterling] (US$663m). CVC will pay Boots 410m [pounds sterling] in cash on completion and up to a...

Blackstone pleased with PE fund raising: Blackstone's president and CEO Stephen Schwarzman was understandably pleased with the vehicle's performance, he told Acquisitions Monthly. (Behind the buyouts).(Blackstone Group L.P.;s Blackstone Capital Partners IV private equity fund)(Brief Article)(Statistical Data Included)
August 1, 2002... US-based buyout house Blackstone has raised the largest ever private equity vehicle, with the announcement that Blackstone Capital Partners IV has amassed US$6.45bn. Despite the widely acknowledged difficulties in the fundraising market over...

Elis in secondary buyout sale: BC Partners' exit of Elis to Pai is the latest in a string of secondary buyout sales. (Behind the buyouts).(Brief Article)(Statistical Data Included)
August 1, 2002... BC Partners' exit of Elis to Pai is the latest in a string of secondary buyout sales. The private equity house has sold its 1997 investment in the cleaning business to Pai, formerly Paribas Affaires Industrielles, valuing the company at an...

Pai fund ahead of target. (Funds in brief).(Brief Article)(Statistical Data Included)
August 1, 2002... Pai Management provides further evidence of a flourishing fund raising environment with the closing of its new buyout fund. The French private equity house is reported to have closed its third buyout fund 50% higher than the original target...

Advent raises Latam fund. (Funds in brief).(Advent International; Latin America)(Brief Article)(Statistical Data Included)
August 1, 2002... Advent International has raised US$263m for its Latin American Private Equity Fund II (LAPEF II), the largest private equity fund raised for investment in Latin America in the last two years. The new fund will invest between US$10 and...

Carlyle cuts fund. (Funds in brief).(Carlyle Group)(Brief Article)(Statistical Data Included)
August 1, 2002... US private equity firm Carlyle Group has scaled back its European venture capital fund by 11% to 650m [euro] (US$639m) because of dropping company valuations and a slower rate of investment. Carlyle Europe Venture Partners, which launched...

Bridgepoint trebles return. (Exits in brief).(Brief Article)(Statistical Data Included)
August 1, 2002... Private equity firm Bridgepoint is expected to treble its original investment in Longoni Sport, following a trade sale of the company. Longoni Sport, one of Italy's best known specialist sports retailers, has been sold to Giacomelli Sport...

Wimpy sold. (Exits in brief).(Wimpy Restaurants Group)(Brief Article)(Statistical Data Included)
August 1, 2002... Bank of Scotland Corporate Banking has provided Wimpy Restaurants Group with a combined debt and equity package worth 15m [pounds sterling] (US$22m) in a secondary management buyout of the company. The package, supplied by the bank's...

3i exits. (Exits in brief).(3i Group PLC's sells Banner Homes Group PLC to Rodaway Nominees)(Brief Article)(Statistical Data Included)
August 1, 2002... May proved to be a hotbed of exit activity for 3i. The private equity firm sold its majority stake in construction company Banner Homes to Rodaway Nominees in a transaction valuing Banner at 38m [pounds sterling]] (US$59m), excluding bank debt....

C&H sold to Azelis. (Exits in brief).(Chance and Hunt)(Brief Article)
August 1, 2002... Close Brother Private Equity (CBPE) has almost trebled its return with the exit from Chance & Hunt (C&H). The UK chemical distributor has been sold to Azelis, a European chemical distribution group. Terms of the transaction were not...

Bon Marche exit for FI & S. (Exits in brief).(Friends Ivory and Sime PLC)(Brief Article)
August 1, 2002... Friends Ivory & Sime has solds its investment in Bon Marche. The UK value for money retailer has been acquired by Peacock Group for 75m [pounds sterling] (US$115.7m). This comprises 51.3m [pounds sterling] in cash and shares and 23.7m [pounds...

Baring sells Topway. (Exits in brief).(Baring Central European Fund, Topway Foods International)(Brief Article)
August 1, 2002... Baring Central European Fund has realised one-third of its 1999 investment in Topway Foods International. Topway was sold to Orkla Foods, a subsidiary of Norwegian diversified multinational Orkla. Terms were not disclosed, although Baring...

ECI gets off the Highway. (Exits in brief).(Engineering Consultants Inc.)(Brief Article)
August 1, 2002... UK private equity house ECI has realised its 1995 investment in Highway Emergency Services, valuing the company debt-free at 36.7m [pounds sterling] (US$36m). The repair services company has been sold to Home Service, a subsidiary of South...

The year of the Irish LBO: public-to-private deals have proved the cornerstone of Irish M&A activity over the last year. Is this trend set to continue? (Ireland).(Statistical Data Included)
August 1, 2002... Leveraged buyouts are the name of the game on the Irish M&A scene, with the last 12 months throwing up the two largest buyouts ever seen in the Irish market. The US$2.7bn public-to-private of Eircom in June 2001 was followed by the US$3.5bn...

Intra-regional deals dominate: the break-up of former state assets already in private hands is gathering pace in the region, with financial buyers buying now so they can sell to strategic investors later. (Central and Eastern Europe).(Statistical Data Included)
August 1, 2002... The halcyon days of landmark privatisations in emerging Europe are largely over, save perhaps in Serbia--scarcely a market big enough to feed the ravening hordes of bankers, lawyers and advisers scouring the region for work. In their place...

Private equity evolves slowly: performance in the region's private equity has traditionally fallen short of expectations. Ben Harding talks to investors about the changing investment strategy. (Central and Eastern Europe).(Baring Private Equity Partners)
August 1, 2002... The recent travel experiences of Bill Watson, the US director of Baring Private Equity Partners, say something about the changes in the investment climate in Central Europe over the last few years. "The BA flight back from Warsaw was packed...

A buoyant market: despite current levels of M&A activity, Spanish advisers are still bringing in less revenue than their European counterparts. Natasha Berg reports from Madrid. (Iberian focus).(mergers and acquisitions)
August 1, 2002... Observers of the European M&A sphere cannot have failed to notice the number of Spanish companies available on the market in recent months. It seems that barely a week has gone by since file beginning of the year without the announcement of...

Continental European firms eye Iberian utilities. (Iberian focus).(Eleciricite de France)(Brief Article)
August 1, 2002... Eleciricite de France (EdF) is one of a number of firms interested in expanding in Spain and Portugal by acquiring or constructing power plants. EdF chief executive Vincent de Rivaz said at a press conference last month that the group did...

Signs of hope for Spanish buyouts: despite the buyout picture becoming gloomier by the day, Natasha Berg finds seeds of hope for the private equity community in Spain. (Iberian focus).(Statistical Data Included)
August 1, 2002... At first glance, the latest buyout figures from Spain's most prolific private equity players do not make good reading. But looking forward it is clear there are a number of factors that should sustain the optimism of the buyout market in the...

Mixed fortunes for Iberian buyout market in 2001.(Brief Article)(Statistical Data Included)
August 1, 2002... The fortunes of the Spanish and Portuguese markets were mixed in 2001, according to data provided by the Centre for Management Research (CMBOR). The CMBOR figures showed that last year's total, at 1.2bn [euro] (US$1.2bn), was the second...

A domestic affair: a slump in M&A deals in Portugal could see large international banks scaling down their operations on the ground in Lisbon. Natasha Berg investigates the survival of Portugal's home-grown investment banks. (Iberian focus).(Statistical Data Included)
August 1, 2002... As with most of Europe, the M&A market in Portugal slumped in 2001 after a record-breaking year in 2000. According to figures provided by Thomson Financial, 146 transactions were completed in 2001 for a total value of US$2.6bn. This represent a...

M&A deal data.(Illustration)(Statistical Data Included)
August 1, 2002... M&A deal data Benelux Target Bidder Naviga (CMB NV) (BE) - Insurance SMAP (BE) - Insurance company company Sales ($): n/a Net Profits ($):...

Minority stakes.
August 1, 2002... Minority stakes This section lists international acquisistions of minority stakes in companies with value of US$50m or more, possibly with a view to obtaining control. Situations concerned with acquisistion of significant stakes are...

Country codes.(abbreviations)(Brief Article)
August 1, 2002... Country codes AA Albania AB Aruba AD Andorra AF Afghanistan AI Abu Dhabi AJ Ajman AL Algeria AM Armenia AN Angola AQ Antigua AR Argentina AS Austria AU ...

Table criteria--August 2002.(acquisitions)
August 1, 2002... TABLE CRITERIA--AUGUST 2002 PAGE NO TITLE TABLE CRITERIA p24 TECHNOLOGY HIGHTECH DEALS Date Announced: 1/7/02 to 25/7/02; ANNOUNCED JULY 2002, Deal Type: NOT 5, 6, 7, 8, 9;...