Acquisitions Monthly articles from December 2006

Acquisitions Monthly archives from December 2006

Politics pushing GDF, Suez to merger.(EDITORIAL)
December 1, 2006... Gaz de France and Suez are expected to reinforce and accelerate efforts to finalise their planned merger in order to make it harder for left-wing politicians to scrap the project if they win next spring's French elections, which will now occur...

How do deals affect shareholder value?: numerous studies over many decades have shown that the majority of M&A deals do not succeed, whether judged on operational measures or in terms of their impact on shareholder value. But these studies have focused mainly on the US. Do the same factors apply to European deals?(REVIEW OF THE YEAR: M&A ANALYSIS)
December 1, 2006... PricewaterhouseCoopers (PwC) has reviewed 245 public transactions across Europe. In slight contrast to previous US studies giving more negative results, the research found that just over half of European M&A deals do create positive value for...

Prediction for 2007: we asked investment banks to look into their crystal ball and provide a prediction for what the year ahead has in store for M&A.(REVIEW OF THE YEAR: PREDICTIONS)
December 1, 2006... Dag Skattum, the co-head of global M&A at JPMorgan, believes 2007 bodes well for European deal flow. He says: "Europe's share of global M&A volumes has been considerable this year. You will see this trend continue in 2007. "Clearly,...

Focusing on the year ahead: we asked leading law firms to predict the prospects for M&A in the year 2007.(REVIEW OF THE YEAR: PREDICTIONS)
December 1, 2006... "This year has been a busy one for M&A in Europe and Asia. The US domestic market has been less strong than previously, although some larger deals have emerged in the last few months. What does 2007 look like? Currently, significant...

What is the Achilles heel?: globalisation, great returns, bigger deals and massive fundraisings have all characterised the private equity world in 12006. The question as we go into 2007 is does the industry have an Achilles heel and will we see it next year?(REVIEW OF THE YEAR: PRIVATE EQUITY)
December 1, 2006... [ILLUSTRATION OMITTED] It has of course been a very successful year for the private equity industry. But with this success has come increased public scrutiny and criticism And as we look towards the new year, the main question being asked...

Without hedge funds, forget about buyouts: Hedge funds have truly emerged in the last few years as major players supporting the leveraged buyout.(REVIEW OF THE YEAR: HEDGE FUNDS)
December 1, 2006... Every day now, a buyout deal in North America or Europe is announced. A mixture of cheap debt, improved company balance sheets and optimism among the world's top dealmakers is driving both private equity and hedge fund activity. But, as...

US: Blackstone Group LP (BG), through its Blackstone Real Estate Partners LP unit, has agreed to acquire all the outstanding common stock of Equity Office Properties Trust (EO), a real estate investment trust, for US$48.5 in cash per share, or a total value of US$33.958bn, including the assumption of an estimated US$16bn in liabilities, in a leveraged buyout transaction.(November snapshot)
December 1, 2006... US: Blackstone Group LP (BG), through its Blackstone Real Estate Partners LP unit, has agreed to acquire all the outstanding common stock of Equity Office Properties Trust (EO), a real estate investment trust, for US$48.5 in cash per share, or...

Mexico; America Movil SA de CV (AMX) said it planned to merge with America Telecom SA de CV (Amtel), a provider of wireless telecommunications services, in a stock-swap transaction valued at Ps343.289bn (US$31.757bn) including the assumption of Ps13.8bn (US$1.277bn) in liabilities.(November snapshot)
December 1, 2006... MEXICO; America Movil SA de CV (AMX) said it planned to merge with America Telecom SA de CV (Amtel), a provider of wireless telecommunications services, in a stock-swap transaction valued at Ps343.289bn (US$31.757bn) including the assumption of...

US: An investor group comprising Bain Capital Partners and Thomas H Lee Partners has agreed to acquire all the outstanding common stock of Clear Channel Communications Inc (CCC), an owner and operator of radio and television broadcasting stations, for US$37.60 in cash per share, or a total value of US$26.775bn, including the assumption of US$8bn in liabilities, in a leverage buyout going-private transaction.(November snapshot)
December 1, 2006... US: An investor group comprising Bain Capital Partners and Thomas H Lee Partners has agreed to acquire all the outstanding common stock of Clear Channel Communications Inc (CCC), an owner and operator of radio and television broadcasting...

US: Freeport-McMoran Copper & Gold Inc (FM), definitively agreed to acquire all the outstanding common stock of Phelps Dodge Corp (PD), a copper mining company, for US$26.05bn.(November snapshot)
December 1, 2006... US: Freeport-McMoran Copper & Gold Inc (FM), definitively agreed to acquire all the outstanding common stock of Phelps Dodge Corp (PD), a copper mining company, for US$26.05bn. FM offered US$88 cash and 0.67 common shares per PD share. Based on...

US: CVS Corp (CVS) has agreed to merge with Caremark Rx Inc (CMX), a provider of prescription management services, in a stock-swap transaction valued at US$22.709bn.(November snapshot)
December 1, 2006... US: CVS Corp (CVS) has agreed to merge with Caremark Rx Inc (CMX), a provider of prescription management services, in a stock-swap transaction valued at US$22.709bn. CVS offered 1.67 shares per CMX share. Based on CVS's closing stock price of...

UK: Iberdrola SA (IS) of Spain agreed to launch a tender offer to acquire the entire ordinary share capital of Scottish Power PLC (SP), a Glasgow-based electricity, gas and other services utility company, for a total value of 11.464bn [pounds sterling] (16.91bn [euro]/US$22.2l bn) through a scheme of arrangement.(November snapshot)
December 1, 2006... UK: Iberdrola SA (IS) of Spain agreed to launch a tender offer to acquire the entire ordinary share capital of Scottish Power PLC (SP), a Glasgow-based electricity, gas and other services utility company, for a total value of 11.464bn [pounds...

Announce deals worldwide: target region transaction volume year-to-date.(November snapshot)
December 1, 2006... ANNOUNCE DEALS WORLDWIDE: TARGET REGION TRANSACTION VOLUME YEAR-TO-DATE Americas--US$1,568,937.5m 48.5% Europe--US$1,246,136.2m 38.5% Asia-Pacific--US$27,0922m 8.4% Japan--US$95,620.4m ...

US: US Airways Group Inc (UA) planned to acquire bankrupt Delta Air Lines Inc (DA), a passenger airline, for US$15.779bn.(November snapshot)
December 1, 2006... US: US Airways Group Inc (UA) planned to acquire bankrupt Delta Air Lines Inc (DA), a passenger airline, for US$15.779bn. The consideration was to consist of US$4bn in cash, the issuance of 78.5m UA common shares valued at US$3.998bn, and the...

UK: Cia Siderurgica Nacional (CSN) of Brazil said it planned to launch a challenging tender offer to acquire the entire ordinary share capital of Corus Group PLC (CG), a London-based manufacturer of steel products, for 475p (US$8.975) in cash per share, or a total value of 6.021bn [pounds sterling] (US$11.377bn).(November snapshot)
December 1, 2006... UK: Cia Siderurgica Nacional (CSN) of Brazil said it planned to launch a challenging tender offer to acquire the entire ordinary share capital of Corus Group PLC (CG), a London-based manufacturer of steel products, for 475p (US$8.975) in cash...

Italy: Banche Popolari Unite Scrl (BP) said it planned to merge with Banca Lombarda e Piemontese SpA (BL) in a stock-swap transaction valued at 6.087bn [euro] (US$7.797bn).(November snapshot)
December 1, 2006... ITALY: Banche Popolari Unite Scrl (BP) said it planned to merge with Banca Lombarda e Piemontese SpA (BL) in a stock-swap transaction valued at 6.087bn [euro] (US$7.797bn). BP offered 0.83 new ordinary shares per BL share. Based on BP's closing...

UK: NTL said it planned to launch an unsolicited tender offer to acquire the entire ordinary share capital of ITV.(November snapshot)
December 1, 2006... UK: NTL said it planned to launch an unsolicited tender offer to acquire the entire ordinary share capital of ITV, the UK provider of television broadcasting services, for 105p (US$1.992) per share, or a total value of 4.08bn [pounds sterling]...

Taiwan: an investor group led by Carlyle Group said it planned to launch a tender offer to acquire the entire share capital of Advanced Semiconductor Engineering Inc.(November snapshot)
December 1, 2006... TAIWAN: An investor group led by Carlyle Group said it planned to launch a tender offer to acquire the entire share capital of Advanced Semiconductor Engineering Inc, a semiconductors manufacturer, for NT$39 (US$1.192) per share, or a total...

Announced deals worldwide: target industry transaction volume year-to-date.(November snapshot)
December 1, 2006... ANNOUNCED DEALS WORLDWIDE: TARGET INDUSTRY TRANSACTION VOLUME YEAR-TO-DATE Financials--US$502899.9m 15.4% Energy & power--US$497976.9m 15.4% Materials--US$330388m ...

Top 10 global deals announced in November 2006.(November snapshot)
December 1, 2006... TOP 10 GLOBAL DEALS ANNOUNCED IN NOVEMBER 2006 Date ann Target Target advisers 19/11/06 Equity Office Properties Merrill Lynch & Co Inc Trust (US) 07/11/06 America Telecom SA de CV...

Busy year for consumer and retail: House of Fraser, The Body Shop and Carrefour have made it so; next year could be even bigger with Ahold and Unilever.(REVIEW OF THE YEAR: FOCUS ON CONSUMER AND RETAIL)
December 1, 2006... [ILLUSTRATION OMITTED] High street names Body Shop and House of Fraser have been bought, while Comet, Argos, and J Sainsbury are being stalked. With Premier Foods, the maker of Branston pickle, about to do a 2bn [pounds sterling] merger...

Any port in a storm: a wall of money is targeting secure investments in fixed transport infrastructure assets.(REVIEW OF THE YEAR: FOCUS ON TRANSPORT)
December 1, 2006... [ILLUSTRATION OMITTED] On the surface, the US$80bn value of deals announced in the year to date compares favourably but unspectacularly with the US$82bn value of deals announced in 2005, but deals announced in the 12 months to date...

Casinos lead consolidation: overall deal values may be lower than in 2005, but this year has seen a scramble for casinos and the continuing presence of property investors as buyers of asset-rich leisure companies.(REVIEW OF THE YEAR: FOCUS ON LEISURE)
December 1, 2006... [ILLUSTRATION OMITTED] The best chance of malting money at a casino is if you run it. And, during a buoyant year for deals in the leisure sector, casino owners have certainly struck the jackpot. Both of the UK's listed casino...

Perfect balance: media companies are shifting their strategies to keep up with a changing marketplace, and M&A is proving a key tool.(REVIEW OF THE YEAR: FOCUS ON MEDIA)
December 1, 2006... [ILLUSTRATION OMITTED] In 2004, airline pilot Mike Howard walked across a tightrope strung between two hot air balloons flying 4,000 ft off the ground--blindfolded. This year, executives in the global media sector have tried to carry...

Smooth care operators: following increasing activity by private equity in the European healthcare sector over the last two years, will financial buyers continue to find ways to extract value?(REVIEW OF THE YEAR: FOCUS ON HEALTHCARE)
December 1, 2006... [ILLUSTRATION OMITTED] While the European healthcare sector saw a wave of consolidation in 2005, including German hospitals group Fresenius's 1.6bn [euro] acquisition of rival Helios Kliniken and BUPA Care Services' 328m [pounds sterling]...

Increasing focus on pharma: while the majority of interest in the pharmaceutical sector in 2006 came from trade buyers, private equity firms are increasingly taking an interest in Europe's pharmaceutical sector.(REVIEW OF THE YEAR: FOCUS ON PHARMACEUTICALS)
December 1, 2006... [ILLUSTRATION OMITTED] After several years in which the pharmaceutical and life science sector was in the doldrums after technology bubble burst at the beginning of the century and only specialist venture capital firms injected cash into...

Exchanges side off: global stock market consolidation advanced doggedly in 2006, as the rival US exchanges NYSE and Nasdaq launched bids for European partners.(REVIEW OF THE YEAR: FOCUS ON STOCK EXCHANGES)(Industry overview)
December 1, 2006... America's stock exchanges had always been considered threats to their European counterparts, although more as head-on rivals, not as acquirers. All that began to change in 2005, when the New York Stock Exchange conducted a transformational...

National concerns over future energy security: M&A activity in the European gas and power business in 2006 has seen attempts to create national champions for this purpose clash with commercial aspirations and European Union Policy.(REVIEW OF THE YEAR: FOCUS ON UTILITIES)
December 1, 2006... [ILLUSTRATION OMITTED] This year saw a clash in he utilities sector between the creation of national champions and European Union Policy. February brought the conflict to a head in Spain and France. Giant German utility E.ON launched a...

Big oil corporate activity dries up: the disappearance of opportunities for companies in Russia left the multinationals scratching around for asset acquisitions in emerging provinces such as offshore West Africa.(SECTOR REPORTS: FOCUS ON OIL & GAS)
December 1, 2006... The only two "11-figure" changes in corporate ownership involved Russian companies. One was the final bankrupting of Yukos in August, which will transfer between US$17bn and US$30bn of assets (depending on whether you accept the receiver's...

Lower oil price driving deals: crude oil prices have stabilised below US$60 a barrel, fuelling bid talks among smaller oil companies and oil services groups.(SECTOR REPORTS: FOCUS ON OIL & GAS)
December 1, 2006... Prices of crude oil have been below US$60 a barrel since the end of September. That is more than a fifth lower than the year's high of US$78.65 reached in early August. This has prompted OPEC to say it might cut its output to try and prevent...

Industrial sector steams ahead: the industrial sector continues to make up the highest number of M&A transactions in Europe, as China and the Far East support Europe's industrial boom. At the same time heavy capital goods, aerospace and defence are also driven by a positive outlook.(REVIEW OF THE YEAR: FOCUS ON ENGINEERING)
December 1, 2006... [ILLUSTRATION OMITTED] The industrial sector continues to keep M&A professionals busy: 1,587 deals involving European industrial targets have been recorded in the year to November 2006, malting it the largest source of deals in the region....

Driven to deals: (US$500M-US$30M): the pub sector has seen a string of deals during the fourth quarter.(MOVING IN THE MID-MARKETS)
December 1, 2006... When the chief executive of a pub operator starts voicing concerns about the prices paid for sites, it might be time to listen. Ted Tuppen, chief executive of Birmingham-based Enterprise Inns, believes that current prices are fuelled more...

Alternative acquisitions: as well as providing an exit route for private equity and a platform for acquisitive growth companies, AIM also houses purpose-built acquisition vehicles offering an alternative to conventional financial buyers in the mid-market.(MOVING IN THE MID-MARKETS)
December 1, 2006... [ILLUSTRATION OMITTED] This year was meant to herald the demise of shell companies on AIM. New stock exchange rules introduced last year forced the 60 or so existing shells to complete deals by the end of this March. The 30 or so that...

Loch stock: Scotland's corporate community is attracting interest from across the UK and abroad.(MOVING IN THE MID-MARKETS)
December 1, 2006... [ILLUSTRATION OMITTED] To misquote playwright James M there are few more impressive sights in the world than a Scottish company on the make. And thanks to growing interest from private equity houses inside and outside the region--not to...

Still standing: large deals are rare and private equity houses work at arm's length--but the North East is home to some notable transactions.(MOVING IN THE MID-MARKETS)
December 1, 2006... [ILLUSTRATION OMITTED] If an earnest study by the Campaign to Protect Rural England is believed, the North East is the UK's most tranquil area. Thankfully, the laidback ambience hasn't had a detrimental effect on the region's...

Public rejection: (US$500M-US$30M): despite a benign economic environment comprising low interest rates, massive liquidity, cheap debt and low default rates, private equity hasn't had it all its own way in 2006.(BEHIND THE BUYOUTS)
December 1, 2006... [ILLUSTRATION OMITTED] While buyout houses invested a record 26bn [euro] in the first three-quarters of 2006 in the 150m [euro] plus sector--beating full-year totals for the previous 10 years, according to research from Corbett Keeling--a...

Bayer sells HC Starck to Advent and Carlyle.(BEHIND THE BUYOUTS)
December 1, 2006... Germany's Bayer Group has agreed to sell electronics chemicals offshoot HC Starck to a buyout consortium of Advent International and Carlyle Group for about 1.2bn [euro] (US$1.55bn). The financial sponsors plan to prepare HC Starck for an...

Apax buys into Tnuva.(BEHIND THE BUYOUTS)
December 1, 2006... Apax Partners is reported to have bought a stake in Israeli agri-foods business Tnuva. The Israeli firm's CEO, Zehavit Cohen, is quoted in the Haaretz newspaper confirming the acquisition of a substantial stake in the business. A deal is likely...

KKR, Goldman Sachs grab Linde forklift unit.(BEHIND THE BUYOUTS)
December 1, 2006... Kohlberg Kravis Roberts, a US private equity firm, and Goldman Sachs Capital Partners, the private equity arm of investment bank Goldman Sachs, have bought the forklift business of German industrial gases group Linde. The firms paid...

Riverdeep buys Houghton Mifflin.(BEHIND THE BUYOUTS)
December 1, 2006... Irish educational software publisher Riverdeep has announced a US$3.4n deal to buy US rival Houghton Mifflin. The deal will see newly created HM Rivergroup PLC acquire the US company from current owners Thomas H Lee Partners, Bain Capital,...

Derwent Valley to merge with London Merchant Securities.(BEHIND THE BUYOUTS)
December 1, 2006... London-listed property companies Derwent Valley and London Merchant Securities have agreed to join forces. This will create a combined group called Derwent London with a portfolio focused on central London worth 2.25bn [pounds sterling]...

Lagardere beats competition for Sportfive.(BEHIND THE BUYOUTS)
December 1, 2006... Lagardere, the French media group, has agreed to buy sports marketing agency Sportfive, which is owned by Advent International, RTL and Goldman Sachs, for an enterprise value of 865m [euro] (US$1.11bn). Calyon, Goetzpartners, Ernst & Young...

Consortium lands US$1.55bn Czech deal.(BEHIND THE BUYOUTS)
December 1, 2006... Acquisition by Mid Europa Partners, Lehman Brothers and Al-Bateen Investment Company believed to largest leveraged buyout in Central Europe. A consortium comprising Mid Europa Partners, Lehman Brothers Private Equity and Al-Bateen...

Europcar drives off with vanguard brands.(BEHIND THE BUYOUTS)
December 1, 2006... Europcar, a vehicle hire service company owned by French private equity firm Eurazeo, has agreed to acquire the European business of Vanguard Car Rental of the US for 670m [euro] (US$860m). The transaction, which is subject to competition...

CVC sells PLI to Philips.(BEHIND THE BUYOUTS)
December 1, 2006... CVC Capital Partners has agreed to sell Partners in Lighting (PU), a Belgium-based manufacturer of lighting products, to Royal Philips Electronics of the Netherlands. The deal values PLI at an enterprise value of about 590m [euro] to be paid in...

United Biscuits.
December 1, 2006... The 1.45bn [pounds sterling] loan backing Blackstone and PAI's secondary buyout of United Biscuits is getting a strong response from the market and heading for a blow-out. Bookrunners are Barclays, Goldman Sachs and JPMorgan. The deal's...

Nycomed.
December 1, 2006... * Nycomed's 5.7bn [euro] acquisition-related loan has been structurally flexed in an effort to overcome resistance to the previous all-senior structure from sub-underwriters. By introducing a 425m [euro] second-lien tranche, bookrunners...

BSN Medical.
December 1, 2006... * BSN Medical is in the market with a 80m [euro] add-on to its 755m [euro] leveraged financing of earlier this year that backed Montagu Private Equity's buyout of the company, through bookrunner JPMorgan. The add-on, to the deal's B tranche,...

M&A deal data.
December 1, 2006... This country analysis included acquisitions and buyouts announced between 18 October 2006 and 20 November 2006. Benelux Target Bidder Akeler Holdings SA (LX)--Real Macquarie Goodman Group Ltd...