Acquisitions Monthly articles from July 2008

Acquisitions Monthly archives from July 2008

Price is not enough.(EDITORIAL)
July 1, 2008... The issues at stake in the Expro saga that played out in London courtrooms and city offices over the last fortnight of June look likely to reverberate around corporate financial circles for some time to come. The fight for the FTSE 250 oil...

Worldwide M&A falls 36% YTD to US$1.6 trillion: European M&A volume is at par with 2006 levels, with sovereign wealth fund investment emerging in Europe and a record quarter for Europe-US cross-border activity. Unsolicited bids triple to US$237bn. Estimated financial advisory fees tumble 30%.(M&A REVIEW OF Q2 2008)
July 1, 2008... Facing continued uncertainty in the global credit markets and a steep decline in stock markets around the globe, the volume of worldwide mergers and acquisitions totaled US$1.6 trillion in announced deals during the first half of 2008, a...

Cross-border interference: deal regulators compare notes more frequently than before but advisers expect increased turbulence on contentious proposed transactions over the coming months.(LEAD FEATURE: TAKEOVER REGULATORY STRATEGIES)
July 1, 2008... [ILLUSTRATION OMITTED] Getting large cross-border deals past regulators has never been easy. More than 100 regulatory bodies can look at proposed transactions and the effects they might have on competition in particular markets. And all...

Regulatory takeover tactics: within the borders of the European Union, the tactics that a company must employ to succeed in an acquisition vary from one country to the next. This is not what one would expect, when the European Takeover Directive of 2004, which took 30 years to create, was meant to have harmonised M&A across member states.(LEGAL & REGULATORY: TAKEOVER REGULATIONS)
July 1, 2008... [ILLUSTRATION OMITTED] Jim Slater, the archetypal corporate raider of the 1960s, spawned the early beginnings of Britain's Takeover Code. His tactics, and those of his friends, arguably left shareholders in public companies somewhat...

Case studies: "can you briefly describe how an M&A situation was significantly impacted by a takeover regulatory rule?".(VIEWPOINTS)
July 1, 2008... [ILLUSTRATION OMITTED] "On June 24, the Takeover Panel announced that the competitive offers for Enodis would, if still competitive on June 30, be resolved by way of an auction procedure. Where two or more offers are made in respect of...

Mastering a new environment: companies are finding themselves operating in an increasingly carbon-conscious atmosphere. Legislators are leading the charge to force companies to take account of their environmental impact, pushing environmental due diligence up the agenda on transactions.(FEATURE: ENVIRONMENTAL DUE DILIGENCE)
July 1, 2008... On any deal, the sustainability of current commercial activities and the future growth of those activities has always been a key consideration. In today's carbon-conscious Europe, the interpretation of sustainability has been stretched....

June snapshot: synopses of the largest global M&A deals announced last month.(MARKET INTELLIGENCE)
July 1, 2008... US: InBev NV (IB) said it planned to launch an unsolicited offer to acquire all the outstanding common stock of Anheuser-Busch Cos Inc (AB), a producer and wholesaler of malt beverages, for US$65 in cash per share, or a total value of...

The importance of being diligent: Tommy Helsby, chairman of EMEA for Kroll, asks if there is still room for pre-deal corporate investigatory work in a world where everything is about shareholder value.(MARKET INTELLIGENCE)
July 1, 2008... The late Jimmy Goldsmith once said: "I am always pleased when I hear a company has hired Kroll to investigate me--it means the management has no decent arguments to offer." While not being entirely fair, and who ever expected him to be so,...

Russian dispute could cost BP US$10bn: the escalating row over control of BP's US$40bn joint venture in Russia is sure to result in a change of its ownership sooner rather than later--probably before the end of the year.(SECTOR REPORTS: FOCUS ON OIL)
July 1, 2008... [ILLUSTRATION OMITTED] Insiders fear that the row over the control of the TNK-BP joint venture will cost the UK's largest company up to US$10bn, as it will end up "financing" a solution that satisfies all the Russian interests...

Riding the super-cycle: those actually working in mining and oil and gas believe that commodities are in a super-cycle. Many investors are not so sure. It's a disconnect that nimbler players can exploit to make acquisitions.(SECTOR REPORTS: FOCUS ON NATURAL RESOURCES)
July 1, 2008... [ILLUSTRATION OMITTED] "If you believe in the China and India economic development stories, then you should believe in the commodity super-cycle," says Martin Rosser, chief executive officer of Alexander Mining. Those two countries are...

Bidders fall out of nuclear auction: the auction of nuclear generator British Energy that gave rise to so much excitement three months ago had collapsed in disarray by mid-June, as only the state-owned Electricity de France came up with a firm offer for the company.(SECTOR REPORTS: FOCUS ON UTILITIES)
July 1, 2008... The hopes of British Energy and the UK government--which retains a 35% stake--that at least one competing bid would emerge disappeared when Spain's Iberdrola confirmed on June 12 that it would not take part in any takeover approach. Iberdrola...

Zombie consolidator reappears at B&B: Clive Cowdery's consolidation vehicle Resolution reveals 2bn [pounds sterling] plan to roll up Bradford & Bingley with smaller UK banks over next two years.(SECTOR REPORTS: FOCUS ON FIG)
July 1, 2008... Bradford & Bingley has been through its ups and downs--mostly downs of late. The most catastrophic downer came on May 14, when B&B bit the bullet and, despite repeated reassurances that it did not need to raise fresh capital through any rights...

New M&A powerhouses emerge: according to emerging markets guru Mark Mobius, corporates from developing countries have some innate qualities that are giving them an edge in M&A as the global economy becomes more volatile.(INSTITUTIONS)
July 1, 2008... Emerging market companies appear to be steadily turning the tables on their Western counterparts, according to Mark Mobius, executive chairman of Templeton Asset Management. Indeed, this could be their moment. Large businesses that have...

Sunrise? Japan is a cornucopia of great business names and is full of promise in terms of mergers and acquisitions. Yet, Japan also has a habit of disappointing. Could this be about to change?(REGIONAL REPORT: JAPAN)
July 1, 2008... For armchair thrill-seekers who nonetheless want a "taste" of real risk, Japanese cuisine offers an unusual delicacy called fugu. It involves the lethally poisonous puffer fish. Only specially trained chefs can prepare and make it safe. This is...

Same old story in Italy: Berlusconi is back, Alitalia is still flying, and Italian deals carry on--led by spin-offs from major transactions.(REGIONAL REPORT: ITALY)
July 1, 2008... [ILLUSTRATION OMITTED] Alitalia is losing more than 1m [euro] a day, so they say: some vapour trail. Businessmen flitting in and out of Milan are not buying return tickets for short trips, just in case. Silvio Berlusconi, returned for...

Italians capture a dragon: Finmeccanica's US$5.5bn DRS acquisition is the largest European foray yet into the US defence and aerospace sector.(REGIONAL REPORT: ITALY)
July 1, 2008... [ILLUSTRATION OMITTED] The acquisition by Finmeccanica, the Rome-headquartered Italian helicopters, defence electronics and aeronautical company, of Parsippany, NJ-headquartered defence electronics firm DRS Technologies promises to be the...

BS Private Equity ups the stakes: one of Italy's premier private equity firms has followed the path of Blackstone and Carlyle as the country's approach to alternative assets matures.(BEHIND THE BUYOUTS)
July 1, 2008... The Italian private equity market may not garner much press attention, largely due to the relative paucity of transactions above the 100m [euro] mark, but it is still attracting interest from both pan-European players and, perhaps more...

PAI caps active period for French buyouts.(BEHIND THE BUYOUTS)
July 1, 2008... The French private equity market, which regularly competes with Germany to be the second largest in Europe, was the home of more than 2bn [euro] of transactions during June, just under a year since the global buyout market succumbed to the...

Debt multiples defy credit crunch.(BEHIND THE BUYOUTS)
July 1, 2008... Leverage has not fallen as much as would be expected in a market plagued by lack of liquidity. Average debt-to-EBITDA multiples on transactions for the first quarter of 2008 were 5.8x, compared with 5.9x in 2007, according to new research from...

Private equity investors worry about strategic drift.(BEHIND THE BUYOUTS)
July 1, 2008... Three-quarters of institutional investors in private equity (limited partners or LPs) are worried that private equity fund managers (general partners or GPs) will stray into strategies or geographies where they lack expertise, according to the...

Cinven spends 584m [pounds sterling] on two deals.(BEHIND THE BUYOUTS)
July 1, 2008... Cinven bought German vehicle components manufacturer Jost World GmbH for 550m [euro] (434m [pounds sterling]) from Silverfleet Capital and UK retirement annuity company Partnership Group Holdings for 150m [pounds sterling] from Phoenix Equity...

Babcock on track with Angel Trains buyout.(BEHIND THE BUYOUTS)
July 1, 2008... Babcock & Brown Public Partnerships (BBPP) has paid 25m [pounds sterling] to take a 5% stake in Angel Trains UK as part of a wider 3.6bn [pounds sterling] takeover of the Angel Trains UK roiling stock business. Babcock & Brown, an...

Alliance Boots.(M&A capital markets round-up: Acquisitions monthly reviews the financing of the leading M&A transactions during June providing details and pricing on deals.)
July 1, 2008... * The initial sell-down of around 3bn [pounds sterling] of hung senior and second-lien Alliance Boots debt is in effect complete, though the process has yet to close formally. Bankers said that not only was there sufficient liquidity to move...

Biffa.(M&A capital markets round-up: Acquisitions monthly reviews the financing of the leading M&A transactions during June providing details and pricing on deals.)
July 1, 2008... * Biffa's 1.14bn [pounds sterling] buyout debt package is in documentation and set to allocate after general syndication closed with over-subscriptions across all tranches. Bookrunners Barclays, Credit Suisse, HBOS, HSBC and RBS launched...

CHC.(M&A capital markets round-up: Acquisitions monthly reviews the financing of the leading M&A transactions during June providing details and pricing on deals.)
July 1, 2008... * CHC has its headquarters in Scotland and is the world's largest provider of helicopter services to the global offshore oil and gas industry; some 60% of its revenues come from its European operations. Private equity sponsor First Reserve...

Evonik.(M&A capital markets round-up: Acquisitions monthly reviews the financing of the leading M&A transactions during June providing details and pricing on deals.)
July 1, 2008... * CVC has mandated Bank of Ireland, Calyon, Heleba, LBBW, Lloyds TSB, Mediobanca, RZB and WestLB to underwrite a 1.25bn [euro] debt package backing its purchase of a 25.01% stake in German industrial group Evonik. The debt includes a 1.2bn...

Expro.(M&A capital markets round-up: Acquisitions monthly reviews the financing of the leading M&A transactions during June providing details and pricing on deals.)
July 1, 2008... * RBS, Lloyds TSB, Royal Bank of Canada, HSBC and DnB NOR Bank are understood to be backing the latest increased cash offer for Expro by Umbrellastream, a consortium led by Candover, with Goldman Sachs and Alpinvest. The same banks backed a...

Smaller companies secure equity finance: blue chip banks may be struggling to get their rights issues away but acquisitive small caps have been surprisingly successful in placing new shares.(MID MARKETS VIEW)
July 1, 2008... Equity capital markets across Europe have been dominated this quarter by raising money through rights issues and related methods of issuing new shares. Most notable among these fundraisers has been Royal Bank of Scotland, which only just...

Indian media leader acquires Virgin Radio: Times of India owner buys UK national radio station from SMG for knockdown price.(MOVING IN THE MID-MARKETS)
July 1, 2008... Indian media giant Bennett Coleman, which publishes the world's best-selling English language newspaper, the Times of India, has made its first overseas acquisition with the 53m [pounds sterling] purchase of Virgin Radio, one of the few UK...

Halma remains positive.(MOVING IN THE MID-MARKETS)
July 1, 2008... Halma, the FTSE 250 maker of sensors for use in health and safety applications, has said it is well positioned to make smaller acquisitions of complementary businesses. The group reported an 11% rise in pre-tax profits to 72.8m [pounds...

Capita carries on AIM acquisition spree.(MOVING IN THE MID-MARKETS)
July 1, 2008... UK outsourcing group Capita has deepened its roots in the lucrative public sector with the 78m [pounds sterling] acquisition of IBS OpenSystems, a software provider to local authorities. Capita offered 187.75p per share, a premium of 37% to...

Thomas Cook expands France.(MOVING IN THE MID-MARKETS)
July 1, 2008... Thomas Cook, the Anglo-German leisure travel group created from the merger just over a year ago between Thomas Cook and MyTravel, is making two acquisitions in France and Canada respectively. In France, Thomas Cook has submitted a 70m...

South Koreans buy Belgian chocolate maker: iconic chocolate seashell producer Chocolaterie Guylian snapped up by Lotte Confectionery.(MOVING IN THE MID-MARKETS)
July 1, 2008... Chocolaterie Guylian, founded by Guy and Liliane Foubert in 1960, has been sold by the founding family to South Korean confectioner Lotte for an estimated 105m [euro] (US$164m). This is the first move by the leading Asian company into...

Suez buys Econergy.(MOVING IN THE MID-MARKETS)
July 1, 2008... French energy giant Suez has agreed to acquire AIM-listed, US-headquartered Econergy International, topping a rival bid from environmentally friendly investor Trading Emissions, also listed on AIM. Suez Energy South America Participacoes,...

Spanish buy UK cardboard box maker.(MOVING IN THE MID-MARKETS)
July 1, 2008... Spanish packaging company SAICA has acquired the cardboard box production facilities in the UK and Ireland of Swedish consumer goods group Svenska Cellulosa Aktiebolaget (SCA). Privately owned SAICA will pay 100m [pounds sterling] for the...

Recruitment remains resilient: despite an expected drop of 1.4bn [pounds sterling] in the turnover of the recruitment industry over the next two years, levels of recruitment M&A will be more resilient than in other downturns.(MOVING IN THE MID-MARKETS)
July 1, 2008... Independent corporate finance advisory firm Catalyst Corporate Finance predicts that the recruitment industry will see resilient levels of M&A activity in 2008 and 2009 on the back of significant transaction activity in 2007, during which the...

M&A deal data.
July 1, 2008... This country analysis included acquisitions and buyouts announced between May 23 and June 18 2008. Benelux Target Bidder ASM International NV- Applied Materials Inc (US)--Mnfr circuit Atomic Layer...