Acquisitions Monthly articles from June 2002

Acquisitions Monthly archives from June 2002

Dealing with the merger carnival. (Insight).(merger of cruise lines)(Brief Article)
June 1, 2002... EU intervention in the Carnival/P&O/Royal Caribbean cruise saga illustrates the weakness of the European merger "system". Despite the fact that Carnival and Royal Caribbean are fighting over the same firm, three different European regulators...

Synopses of the largest global deals in May 2002. (Market intelligence).(multiple topics)
June 1, 2002... CHINA--China Mobile (Hong Kong) (CMH), a 75.58%-owned unit of the China Mobile Hong Kong (BVI) (CM) subsidiary of China Mobile Communications Corp's China Mobile (Hong Kong) Group unit, agreed to acquire eight mobile telecoms companies--Anhui...

Lehman joins corporate broking trend; after abandoning corporate broking in the 1980s, Lehman is building its franchise anew. (People moves).(hires Stephen Pull as head of corporate broking)(Brief Article)
June 1, 2002... If further proof were needed that corporate broking is now being taken very seriously by US investment banks, Lehman Brothers has made an important hire to strengthen its small corporate broking team. It has also moved corporate broking out of...

Scottish boutique boosts London office. (Institutions).(Intelli Corporate Finance)(Brief Article)
June 1, 2002... UK boutique Intelli Corporate Finance is seeking to strengthen its M&A advisory business in London with the hiring offinancial institution specialists Malik Karim and Simon Yun-Farmbrough. Intelli was established by chief executive Gordon...

Calvert Percival finds mandates up for grabs. (People moves).(Brief Article)(Company Profile)
June 1, 2002... Calvert Percival, a new investment banking search firm established by Julie Calvert and Yvette Percival, says that some firms are recruiting and that there are mandates to be won. Julie Calvert, managing director of the headhunting business...

SSSB launches restructuring advisory team. (Institutions).(Schroder Salomon Smith Barney)(Brief Article)
June 1, 2002... Schroder Salomon Smith Barney (SSSB) is assembling a restructuring team in Europe after hiring Steve Din, making it one of the few integrated banks with a dedicated effort. Restructuring advisory teams have been a feature of specialist...

Growing market for competition lawyers; competition law affecting mergers has evolved in recent years to become an increasingly high-profile area for law firms globally. (Legal & Regulatory).(Industry Overview)
June 1, 2002... The tougher stance of competition authorities and divergences between how merger control is approached in the two main jurisdictions, the US and EU, means antitrust teams are often being called in at an earlier stage in M&A discussions. ...

Acquisitions Monthly annual award winners 2002. (Awards evening).(Brief Article)(Illustration)
June 1, 2002... BANK OF THE YEAR Goldman Sachs CORPORATE BROKER OF THE YEAR Merrill Lynch Highly commended Cazenove DEBT ARRANGER OF THE YEAR Deutsche Highly commended Royal Bank of Scotland EQUITY ARRANGER OF THE YEAR Apax...

Bigger story behind Energis: while the United States remains in convalescence after a nasty bout of enronitis, Europe looks just about ready to throw a TMT comeback party. (TMT sector report).(bids for Energis PLC)(Industry Overview)(Statistical Data Included)
June 1, 2002... The tussle over control of Energis, the sickly UK telecommunications company, seems to be a sign of things to come for the rest of the year. The bidders for Energis are as blue-chip as they come. The first bidding consortium is made up of...

Blowing bubbles: in this month's AM interview, MMO2's chief executive officer Peter Erskine discusses the firm's strategic options with Keith Boyfield. (The AM Interview).(Interview)(Statistical Data Included)
June 1, 2002... MMO2 was demerged from its parent, BT Group, last November. Once it was floated on the stock market, it proved a strong performer. The share price climbed from under 80p to 93p within two months and the company experienced no problems finding...

Insurers bide their time; large-scale strategic deals are not on the agenda for Europe's biggest insurance groups this year. Corporate financiers will have to be unusually flexible. (Insurance focus).(Industry Overview)(Statistical Data Included)
June 1, 2002... Bankers specialising in M&A in the European insurance sector will be grateful for whatever scraps they pick up this year. Many deals are proving difficult to clinch. Some important transactions will be signed but most large insurance companies...

Nordic firms break the drought; Storebrand and DNB have contrived the kind of large-scale merger that proved impossible last year. (Fig sector report).(Statistical Data Included)
June 1, 2002... Two Nordic financial institutions managed to pull off a multi-billion euro merger in May, something that eluded the region last year. Storebrand, the life insurance and savings group, and its fellow Norwegian institution Den norske Bank (DnB)...

Water deal poses test for UK regulator; regulators have so far stopped water companies in the UK from consolidating in the same way electricity and gas firms have done. No longer. (Utilities sector report).(Statistical Data Included)
June 1, 2002... The revival of M&A interest in the UK water sector received a further boost in May with Vivendi's announcement that it had offered to buy Southern Water--acquired from Scottish Power by the First Aqua takeover vehicle less than two months...

Monthly sector analysis.(Statistical Data Included)
June 1, 2002... THIS SECTOR ANALYSIS INCLUDES ACQUISITIONS AND BUYOUTS ANNOUNCED BETWEEN 24 APRIL AND 27 MAY. 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$50m).(Brief Article)
June 1, 2002... Overview The nature of middle market M&A activity in Europe, as we show, has changed dramatically since September 11. Growth companies are no longer fashionable. Instead businesses with steady cash flows are in demand, for instance those...

Bouncing along the bottom; both the volume and the nature of mid-market M&A activity has changed dramatically since September 11. As the market continues to send out contradictory signs, are we beginning finally to see a return to normality? (Moving in the mid-markets).(Statistical Data Included)
June 1, 2002... European mergers and acquisition activity was already changing before September 11. Mega-deals had fallen off several months before that fateful day, and in the mid-market advisers were positioning themselves for a slowdown. There is caution...

Activity picking up in North West; as a financial centre, Leeds has not come through recent economic conditions completely unscathed. (Moving in the mid-markets).
June 1, 2002... Some firms have closed offices in the city, while other players in the corporate finance market have shed staff. But now commentators are cautiously optimistic--the deal pipeline is not as full as it might be, but activity seems to be picking...

AEA cuts to the core; the sale of its Hyprotech business means a new focus for AEA Technology. (Moving in the mid-markets).(Brief Article)(Statistical Data Included)
June 1, 2002... Hyprotech, an engineering software unit of AEA Technology of the UK, is to be sold to US player Aspen Technology for 67.5m [pounds sterling] in cash. The deal, which was due to complete as Acquisitions Monthly went to press, is the latest...

The Junction acquires four retail parks. (Moving in the mid-markets).(Brief Article)(Statistical Data Included)
June 1, 2002... The Junction Limited Partnership, a joint venture between Capital & Regional and Morley Fund Management, has announced the acquisition of a further four retail parks for 144.6m [pounds sterling] (US$212m). The vehicle initially comprised 11...

Fox Paine expands into Israel. (Moving in the mid-markets).(Brief Article)(Statistical Data Included)
June 1, 2002... The board of Israel's Paradigm Geophysical has agreed the sale of the business to Fox Paine & Company of the US. The deal to buy the oil and gas technical consultancy firm is worth US$100m. Paradigm Geotechnology will offer US$5.15 cash per...

EKHC steps in to buy Egyptian Flat Glass. (Moving in the mid-markets).(Brief Article)(Statistical Data Included)
June 1, 2002... Egyptian-Kuwaiti Holding Company (EKHC) announced that it has offered to buy the entire outstanding ordinary shares of Egyptian Flat Glass Company (EFGC) for US$36.03 per share, or a total value of about US$63.1m. National Bank of Egypt is...

NZ M&A hits recent low. (Moving in the mid-markets).(Brief Article)(Statistical Data Included)
June 1, 2002... The New Zealand M&A market experienced a sharp slump in the first quarter of 2002, with deals involving New Zealand companies falling 93%. The value of deals stood at NZ$220.3m (US$105m) compared with a total of NZ$3.54bn (US$1.7bn) for the...

Drop in activity masks Australian stability. (Moving in the mid-markets).(Brief Article)(Statistical Data Included)
June 1, 2002... Australian M&A figures slumped to their lowest in recent years in the first quarter of 2002, with deals involving Australian targets falling 73% from the corresponding period last year. A total of 243 transactions were announced at a value of...

WH Smith strengthens publishing business with acquisition of John Murray. (Moving in the mid-markets).(Brief Article)
June 1, 2002... Hodder Headline, a subsidiary of WH Smith, has acquired rival publishing house John Murray. The acquisition moves Hodder from second to third place in the UK educational books market. It also adds sheen to Hodder's literary ambitions. ...

Behind the buyouts.(Brief Article)(Statistical Data Included)
June 1, 2002... Overview In what must rank as one of the UK's most competitive and widely reported auctions, Cinven won the battle for National Car Park's beating off competition from rival Apax Partners. The pan-European buyout firm paid 820m [pounds...

Going for Go; 3i has made plenty of money from the sale of Go but the deal raises questions about its strategy. (European deal of the month).(Brief Article)(Statistical Data Included)
June 1, 2002... The sale of Go-Fly to easyJet was a successful deal for 3i. Yet the deal raises some important questions about the private equity firm's zealous pursuit of the deal and its long-term investment strategy. Asked why Go is now valued at 374m...

VCs check into healthcare; Natasha Berg looks at why private equity players are making a beeline for healthcare companies. (Sector watch: healthcare).
June 1, 2002... It is no coincidence that private equity group Doughty Hanson's US$418m acquisition of the Priory, the chain of psychiatric healthcare clinics controlled by Westminster Healthcare, was the third largest buyout to be announced last month. And...

Cinven gets NCP; Cinven triumphed at the eleventh hour in the battle for National Car Parks. (Behind the buyouts).(Brief Article)
June 1, 2002... In what must rank as one of the UK's most competitive and widely reported auctions, a consortium led by Cinven and including Royal Bank of Scotland's private equity arm has won the battle for the UK's National Car Parks (NCP), beating...

Nervously watching the exits; last month was one of mixed blessings for private equity players with potential IPOs in the pipeline. Ben Harding investigates the factors pushing the IPO window ajar. (Private Equity Column).(Brief Article)
June 1, 2002... As recent flotations illustrate, the European IPO window is ajar, but the suspicion remains that it has been forced open by investment banks desperate for fees and private equity houses desperate for portfolio disposals. Corporate M&A...

Viatris buyout from Degussa. (Behind the buyouts).(Advent International purchases Viatris)(Brief Article)
June 1, 2002... When it comes to merger and acquisition deals, the pharmaceutical sector remains healthier than many others. The latest proof comes from Advent International's buyout of Viatris from German chemical company Degussa. On May 23, Advent, the...

Electra helps boost leisure market. (Behind the buyouts).(Brief Article)(Statistical Data Included)
June 1, 2002... European private equity firm, Electra Capital is backing the public-to-private buyout of the UK leisure and gaming group, Kunick, a deal which values the company at 78.2m [pounds sterling] (US$114m). Electra Capital will be the sole equity...

Duke Street launches hostile bid for Esporta. (Behind the buyouts).(Brief Article)
June 1, 2002... A vehicle managed by private equity group, Duke Street Capital has announced the terms of its hostile public-to-private bid for fitness club operator Esporta. The newco, Duke Street Capital Leisure Investments (DSCLI), has offered 80p per...

Mid-market is flavour of the year: a simple coincidence in May has highlighted what is much regarded as flavour of the year by private equity investors, the middle market. (Behind the buyouts).(Brief Article)
June 1, 2002... A simple coincidence in May has highlighted what is much regarded as flavour of the year by private equity investors, the middle market. In what has otherwise been a relative quiet month for fund-raising activity in Europe, some of the largest...

Funds. (Behind the buyouts).(Coller Capital to raise $1 billion in funds)(Brief Article)
June 1, 2002... Coffer raises US$700m Coller Capital is well on the way to achieving its US$1bn target for its fourth fund. The UK private equity secondaries specialist has to date raised US$700m towards Coller International Partners IV LP. The fund...

Saville Gordon Estates to be taken private. (Behind the buyouts).(Chambercroft to purchase industrial real estate group)(Brief Article)
June 1, 2002... Saville Gordon Estates, the London Stock Exchange-listed industrial real estate group, is being taken private in a 498.8m [pounds sterling] (US$727m) management buyout. Chambercroft, the buyout vehicle set up by management and MSREF IV,, a...

Candover exits Diamant. (Exits in brief).(Candover to sell Diamant Boart to Electrolux)(Brief Article)
June 1, 2002... Candover has entered into an agreement to sell Diamant Boart, a global leading manufacturer and supplier of diamond tools and related equipment for the construction and stone market, to Electrolux for a purchase price of 185m [euro] (US$173)....

Cinven sells Duralay. (Exits in brief).
June 1, 2002... Cinven has sold Duralay underlay business to Rutland Fund Management. Rutland has formed a new company, Interfloor Group, to acquire Duralay and Gates and Consumer and Industrial from Tomkins for a combined purchase price of 60m [pounds...

Cinven and CVC set for William Hill exit. (Exits in brief).(firm plans for a flotation)(Brief Article)
June 1, 2002... Betting shop chain, William Hill, which is co-owned by Cinven and CVC Capital Partners, said it was pressing ahead with plans for a 1bn [pounds sterling] (US$1.45bn) flotation in June. William Hill chief executive David Harding said the...

Coral seeks buyer. (Exits in brief).(Coral Eurobet targets trade sale)(Brief Article)
June 1, 2002... Meanwhile, the UK third largest betting shop, Coral Eurobet, surprised the market when it announced its decision to target a trade sale, bucking the trend of private equity backed flotations. Investment bank Lehman Brothers spent over two...

Golden month for Bridgepoint. (Behind the buyouts).(Bridgepoint Capital closes 2 billion Euro fund)(Brief Article)
June 1, 2002... May proved to be a hotbed of exit activity for the private equity firm Bridgepoint Capital. As well as celebrating the closing of its 2bn [euro] fund, Bridgepoint also achieved exits from Corin, Keenpack and Golden Wonder. Bridgepoint has...

Austria goes abroad; there is a real scarcity of deals in Austria. (Austria).(mergers and acquisitions in Austria not very common)
June 1, 2002... Klaus Requat, member of the group management board of CA IB Corporate Finance, says: "of all 14 markets in which CA IB operates, M&A in Austria is the most challenging on account of the fact that most state-owned companies have already been...

Swiss slowly shed conservativism; Switzerland looks set to become a country of active deal-makers--but perhaps not this year. (Switzerland).(Switzerland's merger and acquisition market)(Brief Article)(Statistical Data Included)
June 1, 2002... Switzerland is beginning to shed its image as a conservative M&A market, unwilling to consider changes of ownership unless they become imperative. Although it is certainly not immune from the global downturn, the long-term trends look good for...

M&A deal data.(chart of recent mergers)(Statistical Data Included)(Illustration)
June 1, 2002... M&A deal data Benelux Target Bidder Bernheim-Comofi (BE) - Real Fortis (BE) - Insurance company; estate investment trust investment bank Sales ($): n/a Net Profits Sales ($): ...