Acquisitions Monthly articles from February 2002

Acquisitions Monthly archives from February 2002

The pragmatic way to police takeovers. (Insight).(Brief Article)
February 1, 2002... The UK's Takeover Panel is once again showing its pragmatism. The City of London regulator has traditionally excluded dual-listed companies from its jurisdiction but the signs are that it has recognised that times have changed and that there is...

Yell acquires McLeod Publishing; directories group yell follows up on buy and build promise with acquisition of McLeodusa Publishing. (Deals of the month).
February 1, 2002... Yell, the directories business sold by BT in June last year, has agreed to buy McLeodUSA Publishing for US$600m from McLeodUSA, a major player in the US fixed-line telecoms market. Yell was originally the subject of 2.14bn [pounds sterling]...

Rodamco, Westfield and two white knights. (Deals of the month).
February 1, 2002... Dutch Real estate investment company Rodamco has clinched the biggest deal of the year so far, agreeing to sell its mall businesses and real estate assets to Westfield America Trust, Simon Property Group and the Rouse Company for US$5.3bn...

BG Group's passage to India: companies such as BG Group are making further moves to tap into Asia's black gold. (Deals of the month).
February 1, 2002... British company BG Group announced in October that it planned to acquire three 30% stakes in Indian gas fields from Enron Corp in the regions of Tapti, Panna and Mukta. The deal was made before the collapse of Enron and a purchase price of...

Synopses of the largest global deals in January. (Market intelligence).
February 1, 2002... CANADA -- PanCanadian Energy Corp (PC) agreed to merge with Alberta Energy Co (MS;), an oil and gas exploration and production company, in a stock-swap transaction valued at C$9.812 bn (US$6.097bn). PC offered 1.472 shares per AE share. Based...

The graduate. (In Securities).
February 1, 2002... "Your name Fraser?" Fraser Stachniewski stiffened. Without looking up from the report he had been studying, he asked "I have the pleasure of whose company?" "I'll take that as a yes. Mine's Brian -- Brian Thompson. Apparently you're...

Deals priced lower to get them away; tension is showing between vendors of businesses expecting top pricing and purchasers asking for price reductions to compensate for perceived risk. (Private Company Price Index).(Brief Article)
February 1, 2002... The Private Company Price Index has continued to fall from its peak in June 2000, in line with the FTSE Non-Financials Index, to a P/E multiple of 12.6 times (a discount of 40% to the FTSE Non-Financials multiple of 21.1). All the signs are...

Few deals wrapped up in fourth quarter; average premia over the target share price one day and one month before the offer or bid talks saw an increase on the third quarter. (Bid Premia).(Brief Article)(Statistical Data Included)
February 1, 2002... As no one could have failed to anticipate, the volume of eligible offers for UK public companies during the fourth quarter of 2001 plummeted. Whilst the third quarter had seen 27 offers completed, the fourth quarter closed with only 14 eligible...

Planning Exits in current climate: "how easy is it to plan for an exit in the current climate? What exit routes do you think private equity players will be opting for this year -- if at all? And, do you think there will be a resurgence in IPO exits?" (Viewpoints).(Column)
February 1, 2002... "We are fortunate at Sand Aire in having a longer investment horizon than many. Our philosophy is to ride the cycles -- to invest strongly when the markets are closed and to work with our co-investors and management to harvest those investments...

Code slows New Zealand deal-making; Groupe Danone has completed the first deal since the introduction of a controversial new takeover code in New Zealand. (Legal and Regulatory).(Brief Article)(Statistical Data Included)
February 1, 2002... French bottled water giant Groupe Danone recently completed the first successful acquisition in New Zealand since the introduction of the new takeover code in June 2002. Danone bought up the entire share capital of New Zealand drinks...

"Enter the European Cartel Office? Would dealmakers be happier with a European Cartel Office (ECO) running the EU merger regime, rather than the European Commission? (Legal and Regulatory).(Brief Article)
February 1, 2002... Last week the influential think-tank the Centre for European Reform, in its report The Future of EU Competition Policy, argued that it was time to establish an ECO. The CER's proposal is backed by a number of Member States, led by Germany. It...

New year hangover for investors: the TMT sector was hit hard by the collapse of Global Crossing and the threat of financial disaster at many of its telecoms rivals. (TMT sector report).(Statistical Data Included)
February 1, 2002... Even when the TMT sector showed signs of producing some blockbuster M&A activity, it seemed to come packaged with bad news. The best example was the proposed break-up on January 22 of Tyco, the high-tech conglomerate that has been dogged by...

The return of the Internet; after many changes and failures, the Internet sector is still alive and growing, with opportunities for further consolidation. (Internet sector focus).(Statistical Data Included)
February 1, 2002... In 2001 there were twice as many dotcom failures worldwide as there were in the previous year, with 537 websites filing for bankruptcy or going out of business, according to Webmergers, the internet research group. However, the pace of failures...

Machiavellian machinations in Italy: a tussle over Fondiaria could create one of Italy's biggest insurers. (FIG sector report).(Brief Article)(Statistical Data Included)
February 1, 2002... Three-way insurance tussle Just over a year ago, on the last day of 2000, investors had their final chance to trade shares in Toro Assicurazioni. Fiat, the Turin-based automobile group that controlled Toro, had launched the delisting...

No Greek merger yet: the collapse of Alpha Bank's deal with NBG leaves plenty of opportunities in Greece. (FIG sector report).(Statistical Data Included)
February 1, 2002... When the 10 billion euro merger between Greece s two largest commercial banks, the state-run National Bank of Greece (NBG) and the country's largest private bank Alpha Bank, was announced in November last year, it failed to convince analysts...

Germany power integration threatened; the competition authority in Germany has crossed swords with giant power utility E.On over the latter's plans to acquire a controlling stake in leading gas company Ruhrgas. (Utility sector report).(Statistical Data Included)
February 1, 2002... The intervention of the Federal Cartel Office (Bundeskartelamt) cast doubt on E.On's plan to become a leading integrated energy group in Europe, with analysts and other industry observers split as to which party in the dispute would ultimately...

Monthly sector analysis: this sector analysis includes acquisitions and buyouts announced between 1 January 2002 and 31 January 2002, UK public offers completed between these dates are included, whereas new and pending offers are excluded, the transactions are classified according to the US sic code identifying the industry sector in which the target company is principally engaged.(Statistical Data Included)
February 1, 2002... Seller - activity Bidder - activity 13: OIL AND GAS; PETROLEUM REFINING 1311: Crude petroleum and natural gas EBRD-Oil Fields(2), Azerbaijan Investor Group (CH) - Investor (30%) (AZ) - Oil...

Moving in the mid-markets (US$500m-US$50m): overview.(Brief Article)(Statistical Data Included)
February 1, 2002... Overview The mid-markets in Continental Europe followed much the same path last year as its UK and US counterparts, with deal volumes decreasing over the year, especially in the last quarter with the knock-on effect of September 11. ...

Value up for Continental Europe: as elsewhere in Europe, France, Italy and Germany have suffered from the international slowdown, with the private markets affected as much as the public. But will these mid-markets prove as resilient as their UK counterpart? (European Mid-Caps).(Statistical Data Included)
February 1, 2002... As the public markets entered slowdown in 2001 it was expected that the maturing Continental European private equity market would come to the fore, driven by cash-rich venture capital houses taking up the slack in deal activity in the...

Cool reaction to sale of M-Cell stake; as the South African government finally privatises its stake in M-Cell, there is some confusion over terms. (Deal of the month).(Brief Article)(Statistical Data Included)
February 1, 2002... The South African government as ended months of speculation by finally announcing the privatisation of its 20% stake in M-Cell, one of Africa's largest telecommunications companies. The stake, which was held through Transnet, the government's...

IMO heads up German activity: IMO Car Wash's acquisition of one of its original divisions shows that German deals are gleaning up. (Moving in the mid-markets).(Brief Article)(Statistical Data Included)
February 1, 2002... Auld acquaintances were certainly not being forgotten by IMO Car Wash this New Year. The group kicked off 2002 by acquiring IMO Germany, which was originally part of IMO but became a separately owned entity in the early 1990s. The...

Apax Partners set to acquire Azimut. (Moving in the mid-markets).(Brief Article)(Statistical Data Included)
February 1, 2002... Apax Partners has exchanged contracts with Italian banking group Bipop-Carire with regard to the backing of a management buyout of its asset management division Azimut. The deal, which has been valued at 418.5m [euro], is structured with a...

Rival bids in French mid-markets; French activity remained tense last month, with competing bids for packaging company La Rochette keeping it in the M&A headlines. (Moving in the mid-markets).(Brief Article)(Statistical Data Included)
February 1, 2002... January may have been a fiendishly cold month for most of us, but for anyone involved with French company La Rochette it was time to get hot under the collar. La Rochette, which makes corrugated cardboard, has been a target for both Mondi...

Interims come to the rescue; interim chief executives, finance directors and other top managers have commonly been used by private equity houses to turn around companies that are heading for the buffers. (Moving in the mid-markets).(Brief Article)
February 1, 2002... In the current economic downturn finding an interim who can squeeze costs can make the difference between success and failure in exiting a company. But private equity houses are also using interims for specific, short-term strategic roles, such...

Givaudan in aromas deal; Geneva-based fragrances and flavours company, Givaudan, has gone one step nearer towards becoming the market leader in its field. (Moving in the mid-markets).(L. Givaudan et Compagnie S.A. acquires Nestle S.A.'s Food Ingredients Specialties S.A.)(Brief Article)(Statistical Data Included)
February 1, 2002... Geneva-based fragrances and flavours company, Givaudan, has gone one step nearer towards becoming the market leader in its field. Givaudan, the number two maker of flavours and fragrances, has agreed to acquire the Food Ingredients...

Jefferson Smurfit to take over Munksjo.(Jefferson Smurfit Group PLC, Munksjo AB)(Brief Article)(Statistical Data Included)
February 1, 2002... Jefferson Smurfit has offered US$210m to take over the remaining 66% of Swedish paper company, Munksjo. The giant Irish paper and packaging group is offering SEK77 (US$7.21) in cash for each Munksjo share. This represents a 20% premium on...

Register.com to acquire UK's Virtual Internet.(Brief Article)(Statistical Data Included)
February 1, 2002... Following discussions at the end of 2001, New York-based domain name registration company Register.com has announced a recommended cash offer of 0.468 [pounds sterling] (US$0.66) in cash per share, or a total of 12m [pounds sterling] (US$17m)...

Dixons' Italian job. (Moving in the mid-markets).(Dixons Group PLC acquired 24.34% of UniEuro)(Brief Article)
February 1, 2002... Dixons Group has acquired a 24.34% stake in Italian Electronics retailer UniEuro for 103m [euro], with an option to buy the remainder of the group for 425m [euro] before July 2003. The deal is consistent with Dixon's aim of expanding its...

Behind the buyouts: overview.(buyout completions in United Kingdom in 2001)(Brief Article)(Statistical Data Included)
February 1, 2002... Overview In overall terms, 2001 was a relatively successful year for buyout completions in the UK, with 571 deals signed off at year-end for a cumulative value of around US$20bn. Research shows that activity held up well until the final...

Private equity completions slump; buyout completions falter as the market enters period of uncertainty. (European private equity review).(analysis of buyouts in Europe, United Kingdom)(Statistical Data Included)
February 1, 2002... After several years of continuous growth, sentiment amongst the European buyout community is beginning to wobble. A distinct air of uncertainty has replaced the confidence that was such a driving force behind the expansion of the asset class....

Apax Partners tops buyout tables; despite the struggles of 2001, there are encouraging signs of achievement in Thomson Acquisitions Monthly's annual European and UK buyout tables. (League tables).
February 1, 2002... Apax Partners took the top slot in the 2001 buyout league table for both European and UK lead equity arrangers, knocking last year's winner, Cinven, off its number one spot. The pan-European buyout house made an impressive ascent to first...

Palmer & Harvey in US$235m MBO: the UK's largest delivery wholesaler, Palmer & Harvey, is being taken over by management in a deal that is likely to transform the debt capability of the MBO market. (Buyout of the month).
February 1, 2002... Palmer & Harvey (P&H), which is also one of the largest privately-owned companies in the UK, is being bought for a total consideration of 165m [pounds sterling] (US$235m) by a team led by the company's chairman, Christopher Adams, managing...

Funds of funds providing security; funds of funds bridge the gap between institutional investors and general partners in an increasingly complicated market. (Private equity column).
February 1, 2002... Despite what those on the fundraising trail at the moment might think, the last five years have seen an unprecedented amount of new capital flow into the European private equity market. Underpinning this dramatic increase in activity is an...

SER and Sefan Nau head up German activity; last month saw two significant buyouts, both in technology related sectors. (Behind the buyouts).
February 1, 2002... The German buyouts market as reasonably busy last month with SER Systems seeing a management-led buyout of its SER Banking-Software Solutions unit in a leveraged transaction. Buyers included four managers as well as Cornerstone Capital and...

Small UK buyouts for January; although buyout deal values remained low in January, the business services and heating and ventilation sectors came out top. (Behind the buyouts).(Brief Article)
February 1, 2002... Northern Ireland-based Galen, agreed to sell its chemical synthesis services business, part of its pharmaceutical services division, for US$36m in cash in a leveraged buyout transaction to a management team led by founder and former president...

Baring launches Russian fund. (Funds).
February 1, 2002... Baring Vostok Capital Partners, a subsidiary of Baring Private Equity Partners, has launched a US$205m fund in Russia, the first such fund to be set up there since the 1998 financial crisis. The Baring Vostok Private Equity Fund, the third...

CSFB private equity fund. (Funds).(Brief Article)
February 1, 2002... Credit Suisse First Boston is said to be considering the launch of a series of European private equity funds over the next three years, according to a US newspaper. Credit Suisse First Boston, whose private equity arm manages more than...

Wilton closes fund at US$240m. (Funds).(Brief Article)
February 1, 2002... Boston-based Wilton Asset Management, a joint venture between State Street Global Advisors (SSgA) and DuPont Capital Management Corporation, has closed its Wilton Private Equity Fund with more than US$240m in commitments. The fund will...

Broadview cuts VC fund. (Funds).(Brief Article)
February 1, 2002... Broadview has cut its funding for the US$250m early-stage venture capital fund, Kennet II, by more than two-thirds, it was reported. The international technology investment bank had originally committed US$50m to the fund. This commitment has...

Umbro's flotation goal. (Exits).(Brief Article)
February 1, 2002... Sportswear manufacturer Umbro is to float on the stock market after the World Cup in June. The Manchester-based firm, renowned for making the boots that Michael Owen wore when he scored against Germany, could come to the market as early as...

Fishy exit for LGV. (Exits).(Brief Article)
February 1, 2002... Legal & General Ventures is expected to fetch around 150m [pounds sterling] (US$212m) from the sale of the UK's oldest seafood brand, Young's Bluecrest. Financial adviser Deutsche Bank has shortlisted two venture capital firms to buy the...

Rank Hovis to float. (Exits).(Brief Article)
February 1, 2002... Food manufacturing firm, Rank Hovis McDougall, has plans for a flotation within 18 months. Rank Hovis, maker of Hovis bread and Paxo stuffing, and Doughty Hanson, its financial backers, are said to be choosing a team for a flotation, which...

HgCapital out of pipeline. (Exits).(Brief Article)
February 1, 2002... HgCapital is to exit PII Group after four years. The private equity firm has agreed to sell the pipeline integrity services company to GE Power Systems of the US. Hg Capital bought PII from British Gas in a management buy-in transaction....

Healthy time for healthcare sector: healthcare has proved a resilient industry, with new technology looking to spur the public sector into private action. Sandrine Bradley talks to Lindsay Dibden, director of HgCapital's healthcare team. (Behind the buyouts).(Brief Article)
February 1, 2002... Are you familiar with reassurance communication systems, telehealth and telemedicine? Probably not. But this could soon be set to change. With the National Health Service in dire need of reform, this technology could well be the revolutionary...

PwC builds European strength in healthcare and technology. (Investment banking/corporate finance).(PricewaterhouseCoopers L.L.P.)(Brief Article)
February 1, 2002... PricewaterhouseCoopers is using the lull in deal-making to reassess its strategic direction, and to strengthen its teams in two important sectors. Marion Sears, the former head of healthcare corporate finance at Robert Fleming, has joined...

Investec hires six for US TMT team. (Investment banking/corporate finance).(Brief Article)
February 1, 2002... South African bank Investec has hired three former UBS Warburg bankers as part of a new technology, media and telecoms team along with three other bankers. These moves follow Investec's acquisition last year of PMG, a middle-market investment...

KKR focuses on Germany. (Buyouts and acquisition finance).(Brief Article)
February 1, 2002... US private equity firm Kohlberg Kravis Roberts & Co is investing in the German market with two senior hires. Dr Axel Echardt is to head KKR's management consultancy firm, Capstone Europe, to give strategic advice on the private equity,...

Mostyn-Williams joins Advante. (Buyouts and acquisition finance).(Stephen Mostyn-Williams)(Brief Article)
February 1, 2002... Stephen Mostyn-Williams, the former head of acquisition finance at Shearman & Sterling who now works in business development for Landwell, is to take on an additional role at a new search firm. He has become a partner at Advante, a firm...

Fortis sets up acquisition finance in France. (Buyouts and acquisition finance).(Brief Article)
February 1, 2002... Benelux financial services group Fortis is setting up a new acquisitions finance team in France. It has hired Pauline Godillot, a former Deutsche Bank professional, to head the operation -- which will concentrate on senior and mezzanine debt...

Allen & Overy poaches four partners. (Law firms).(Brief Article)
February 1, 2002... Allen & Overy has boosted its number of leveraged finance partners in London by a third after hiring four partners from Norton Rose. Andrew Bamber, Tim Polglase, Robin Harvey and Clive Wells all resigned in January. Allen & Overy now has some...

McDermott Will Emery hires new M&A head. (Law firms).(McDermott, Will and Emery)(mergers and acquisitions)(Brief Article)
February 1, 2002... The US law firm McDermott Will & Emery has recruited Spencer Klein from Shearman & Sterling to head the firm's M&A business in New York. The M&A business forms part of McDermott's 200-strong corporate practice, which is led by Grant Bagan.

Old franchises dominate broking; despite an increasingly competitive environment, age and experience still count in corporate broking. (Corporate broking).(Statistical Data Included)
February 1, 2002... Thomson Financial's first annual league tables of brokers in M&A demonstrates that traditional corporate broking is alive and well. Only one independent firm, Cazenove, features among the top 10 but nearly all the other leading players have...

Spain's mid-market shows promise; although 2001 saw a sharp drop in mid-market activity, Spanish players predict plenty of restructuring and buyout activity in 2002.(Statistical Data Included)
February 1, 2002... Spanish mid-market activity, characterised as being between 30m [euro] and 300m [euro], plummeted in 2001, according to figures from Thomson Financial. The total value of deals announced during the year reached US$11bn, compared with US$13.3bn...

Another year of leadership in Spanish M&A.(mergers and acquisitions)(Brief Article)(Statistical Data Included)
February 1, 2002... Tel. 91 514 52 70 Fax. 91 514 52 85 Our objective is to be our client's partner in achieving success, by providing professional services of the utmost quality focused on the creation of value. Our Corporate Finance Group comprises a...

Spain hopes for bigger buyouts; can buyouts ever hope to make an impression on Spain's private equity market? (Iberian Survey).(Brief Article)
February 1, 2002... It is hard to escape the conclusion that one day the Spanish buyout market will explode. Corporate disposals are proving a solid source of activity, generational change is making an increasing impact on the market, and competition has never...

2002 forecasts for private equity. (Iberian Survey).(Brief Article)
February 1, 2002... The general consensus for 2002 is that the year will be a distinct improvement on last year's private equity activity, with some more bullish than others. Acquisitions Monthly talks to the players. At CVC Capital Partners, investment...

Iberian competition law. (Iberian Survey).(Brief Article)
February 1, 2002... European Competition law in Spain is governed by Act 16/1989 on the Defence of Competition (The Act), which introduced the principles governing EU competition law into the Spanish legal system. Competition rules are applied horizontally to any...

Utilities shed light on Spanish M&A; M&A activity in the Spanish power market will be hard put this year to match the drama of 2001, which saw regulatory intervention scupper a proposed mega-merger between the countries' two biggest utilities.(mergers and acquisitions)(Brief Article)(Statistical Data Included)
February 1, 2002... The planned 13.5bn [euro] (US$11.6bn) tie-up between Endesa, the leading utility, and second-ranked Iberdrola, would have been the biggest merger in Spain's industrial history. It was finally aborted in February, after the government insisted...

Will the euro help? (Iberian Survey).(Brief Article)
February 1, 2002... Industry experts are divided on whether the introduction of the euro this year will pave the way for further M&A and buyout activity in Spain. Acquisitions Monthly asked mid-market players for their views. The euro is the new single...

Portuguese banks expand; Spanish banks might be quiescent, but Portugal's banks are still looking for acquisitions despite the downturn. (Iberian Survey).(Brief Article)
February 1, 2002... Despite the recent resignation of several board members, Portugal's biggest private-sector financial group, Banco Comercial Portugues (BCP), is continuing to expand overseas because of growth constraints at home. Among the other leading...

Prospects brighten for Irish M&A; privatisation and legislative changes are set to give fresh impetus to the M&A market in Ireland. (Republic of Ireland).(Brief Article)(Statistical Data Included)
February 1, 2002... Investment bankers say they are quietly confident about the Irish economy and the M&A market. IBI Corporate Finance is one of the main players in Irish M&A. Ted Webb, the director who heads up the technology, and private companies group,...

M&A deal data. (France/Germany/Nordic).(Illustration)(Statistical Data Included)
February 1, 2002... France Target Bidder Alcatel - European operations Platinum Equity Holdings (US) of enterprise distribution - Investment holding company and services business (FR) -...