Acquisitions Monthly articles from June 2008

Acquisitions Monthly archives from June 2008

Good times for M&A.(EDITORIAL)
June 1, 2008... These may not be the best economic times, but they might be the best times for corporate mergers and acquisitions (M&A), according to a report from Boston Consulting Group (BCG). "Most companies pull away from the M&A deal table during...

Australia: Westpac Banking Corp (WB) agreed to merge with St George Bank Ltd (SG), in a stock swap transaction valued at AS19.088bn (US$17.939bn).(May snapshot: Synopses of the largest global deals announced last month)
June 1, 2008... AUSTRALIA: Westpac Banking Corp (WB) agreed to merge with St George Bank Ltd (SG), in a stock swap transaction valued at AS19.088bn (US$17.939bn). WB offered 1.31 ordinary shares per SG share. Based on WB's closing stock price of A$25.97...

US: an investor group comprised of Abertis Infraestructuras SA, Citi Infrastructure Investors a unit of Citigroup Inc and Criteria Caixa Corp, a unit of Caixa D'Estalvis I Pension De Barcelona, planned to acquire a 75-year concession to own and operate state-owned Pennsylvania Turnpike, a provider of toll collection services, from US state-owned Pennsylvania Turnpike Commission, for US$12.8bn in cash, via an auction.(May snapshot: Synopses of the largest global deals announced last month)
June 1, 2008... US: An investor group comprised of Abertis Infraestructuras SA, Citi Infrastructure Investors a unit of Citigroup Inc and Criteria Caixa Corp, a unit of Caixa D'Estalvis I Pension De Barcelona, planned to acquire a 75-year concession to own and...

US: Hewlett-Packard Co (HP) has agreed to acquire all the outstanding common stock of Electronic Data Systems Corp (ED), a provider of information technology services, for US$25 in cash per share, or a total value of US$12.565bn.(May snapshot: Synopses of the largest global deals announced last month)
June 1, 2008... US: Hewlett-Packard Co (HP) has agreed to acquire all the outstanding common stock of Electronic Data Systems Corp (ED), a provider of information technology services, for US$25 in cash per share, or a total value of US$12.565bn. The...

US: NRG Energy Inc (NR) planned to launch an unsolicited tender offer to acquire all the outstanding common stock of Calpine Corp (CC), a provider of power generation services, in a stock swap transaction valued at US$9.475bn.(May snapshot: Synopses of the largest global deals announced last month)
June 1, 2008... US: NRG Energy Inc (NR) planned to launch an unsolicited tender offer to acquire all the outstanding common stock of Calpine Corp (CC), a provider of power generation services, in a stock swap transaction valued at US$9.475bn. NR offered .534...

US: Clearwire Corp (CC) agreed to merge its wireless broadband business with the wireless broadband business of Sprint Nextel Corp (SN), a provider of telecommunications and Internet services, to form a new company named Clearwire, for US$7.4bn.(May snapshot: Synopses of the largest global deals announced last month)
June 1, 2008... US: Clearwire Corp (CC) agreed to merge its wireless broadband business with the wireless broadband business of Sprint Nextel Corp (SN), a provider of telecommunications and Internet services, to form a new company named Clearwire, for...

Announced deals worldwide: target region transaction volume year-to-date.(May snapshot: Synopses of the largest global deals announced last month)
June 1, 2008... ANNOUNCED DEALS WORLDWIDE: TARGET REGION TRANSACTION VOLUME YEAR-TO-DATE Americas US$505,417.38m 49.9% Europe US$275,339.62m 27.2% Central Asia/Asia-Pacific US$181.071.39m 17.9% Japan...

Announced deals worldwide: target industry transaction volume year-to-date.(May snapshot: Synopses of the largest global deals announced last month)
June 1, 2008... ANNOUNCED DEALS WORLDWIDE: TARGET INDUSTRY TRANSACTION VOLUME YEAR-TO-DATE Financials US$168,039.09m 16.6% Energy & power US$152,189.87m 15.0% Materials US$114,580.02m 11.3% Industrials...

US: Finmeccanica SPA (FS) has agreed to acquire all the outstanding common stock of DRS Technologies Inc (DT), a manufacturer of defense electronic equipment, for US$81 in cash per share, or a total value of US$5.136bn, including the assumption of an estimated US$1.2bn in liabilities.(May snapshot: Synopses of the largest global deals announced last month)
June 1, 2008... US: Finmeccanica SPA (FS) has agreed to acquire all the outstanding common stock of DRS Technologies Inc (DT), a manufacturer of defense electronic equipment, for US$81 in cash per share, or a total value of US$5.136bn, including the assumption...

Belgium: ENI SpA of Italy agreed to acquire a 57.25% interest, or 0.402 mil ordinary shares, in Distrigaz SA (DS), a Brussels-based provider of gas distribution services, from Suez-Tractebel SA (ST), a wholly-owned unit of Suez SA (SS), for 6.810 euros (US$10.566) per share, or a total value of 2.739bn euros (US$4.250bn).(May snapshot: Synopses of the largest global deals announced last month)
June 1, 2008... BELGIUM: ENI SpA of Italy agreed to acquire a 57.25% interest, or 0.402 mil ordinary shares, in Distrigaz SA (DS), a Brussels-based provider of gas distribution services, from Suez-Tractebel SA (ST), a wholly-owned unit of Suez SA (SS), for...

US: ConvaTec Ltd SPV, a special purpose acquisition vehicle formed by Avista Capital Holdings LP and Nordic Capital Fund VII, a unit of Nordic Capital, definitively agreed to acquire ConvaTec Ltd, a manufacturer and wholesaler of skincare products and medical supplies, from Bristol-Myers Squibb Co, for an estimated US$4.1bn in a leveraged buyout transaction.(May snapshot: Synopses of the largest global deals announced last month)
June 1, 2008... US: ConvaTec Ltd SPV, a special purpose acquisition vehicle formed by Avista Capital Holdings LP and Nordic Capital Fund VII, a unit of Nordic Capital, definitively agreed to acquire ConvaTec Ltd, a manufacturer and wholesaler of skincare...

>US: Boston Properties Inc (BP) agreed to acquire General Motors Building, located in New York City, New York, an owner and operator of office building, from Macklowe Properties Inc, for an estimated US$3.949bn.(May snapshot: Synopses of the largest global deals announced last month)
June 1, 2008... US: Boston Properties Inc (BP) agreed to acquire General Motors Building, located in New York City, New York, an owner and operator of office building, from Macklowe Properties Inc, for an estimated US$3.949bn. The consideration was to consist...

US: An investor group, comprised of Intel Capital Corp, a unit of Intel Corp, Google Inc, Comcast Corp, Time Warner Cable Inc, a unit of Time Warner Inc, and Bright House Networks, agreed to acquire a 22% stake, or 36.123m shares, in Clearwire Corp (CC), a provider of wireless internet services, for $3.2bn, in a privately negotiated transaction.(May snapshot: Synopses of the largest global deals announced last month)
June 1, 2008... US: An investor group, comprised of Intel Capital Corp, a unit of Intel Corp, Google Inc, Comcast Corp, Time Warner Cable Inc, a unit of Time Warner Inc, and Bright House Networks, agreed to acquire a 22% stake, or 36.123m shares, in Clearwire...

Top 25 global deals announced in May 2008.(May snapshot: Synopses of the largest global deals announced last month)
June 1, 2008... TOP 25 GLOBAL DEALS ANNOUNCED IN MAY 2008 Date ann Target Target advisers 12/05/08 St George Bank Ltd (AU) UBS Investment Bank 19/05/08 Pennsylvania Turnpike (US) Morgan Stanley 13/05108 ...

European M&A cautious but not bowed: optimism levels have dropped markedly since the last September, with many predicting the credit crunch to have an impact on M&A activity well into next year.(MARKET INTELLIGENCE)
June 1, 2008... Optimism in the European M&A market has fallen since September 2007 as the credit crunch continues to bite, according to the fifth biannual M&A Monitor conducted for IntraLinks, a provider of online workspaces. Positive sentiment has...

Premia increases continue into first quarter: in what were a turbulent three months, the first bid premia survey of 2008 saw a return to higher activity levels.(MARKET INTELLIGENCE)
June 1, 2008... As the effects of the credit crunch continued to hit home, the average premia generated in the first three months of the year continued in the high vein seen at the end of 2007. With a sizeable increase in the number of eligible deals, the...

Spanish slowdown overstated: Spain's construction driven boom has stalled, affecting domestic M&A and buyout activity, but banks and major infrastructure companies remain well capitalised and eager to expand internationally, taking advantage of the weak dollar.(LEAD STORY: FOCUS ON SPAIN)
June 1, 2008... [ILLUSTRATION OMITTED] The global credit crunch has affected Spain in an idiosyncratic fashion. Property prices, which soared spectacularly over the past decade, have been punctured. Construction projects, particularly in the residential...

Turkey's new paradigm stands to be tested: Turkish M&A is likely to be lower in 2008 than in the previous two years, partly because those years were exceptional, but also due to the credit crunch and lingering political uncertainty.(REGIONAL REPORT: TURKEY)
June 1, 2008... [ILLUSTRATION OMITTED] A visit to the outskirts of Istanbul reveals a forest of cranes hovering over a plethora of construction projects ranging from new factories and warehouses to huge new residential estates. This is very much the...

Losing their grip: times are tough for pharmaceutical companies. The industry landscape is changing as new drug development increasingly comes from biotechs and pharmas morph into acquisitive sales and marketing giants.(SECTOR REPORTS: FOCUS ON PHARMACEUTICALS)(Company overview)
June 1, 2008... The traditional model of pharmaceutical companies is broken. It has failed to deliver growth --in 2013, big pharmaceutical companies will lose between 12% and 15% of their sales as some of their lead products come off-patent. From compound...

Less bricks and mortar, more cement and copper: Carlos Keener is a specialist in M&A integration, and the founder of Beyond the Deal. Below he explores integration in the pharmaceutical and healthcare sector.(SECTOR REPORTS: FOCUS ON PHARMACEUTICALS)
June 1, 2008... In any deal, delivering the benefits through integration requires a solid understanding of the value drivers within both firms, and awareness of the outside environment and constraints in which the businesses operate. Healthcare groups...

Credit crunch impacts global healthcare: a tightening of liquidity and more expensive debt have more than halved the value of healthcare deals worldwide, but cheaper valuations are also creating opportunities for serial acquirers and for regional banks to provide funding for their deals.(SECTOR REPORTS: FOCUS ON HEALTHCARE)(Company overview)
June 1, 2008... During the first five months of this year, healthcare M&A has plummeted by a staggering 74% on a year-on-year basis measured by the value of deals. And that can only be put down to the ongoing credit crunch. There have only been around...

Vodafone retires from MTN tussle: UK mobile operator waves goodbye to Arun Sarin and allows Indian rivals to join battle for South African company.(SPECIAL REPORTS: FOCUS ON TMT)
June 1, 2008... When Arun Sarin started his reign as chief executive of Vodafone five years ago, the business was principally based in developed markets. Telecom analysts were still concerned with the mobile operator's financial indigestion following its 126bn...

High inflation could return to haunt M&A: there is a high chance that the world economy is entering a period of high inflation and rising interest rates. The implications of such changes will have a dramatic impact on M&A activity.(SECTOR REPORTS: FOCUS ON FINANCIALS)
June 1, 2008... According to Mervin King, the Bank of England's governor, the "nice" decade--of "non-inflationary consistent expansion"--is, for the time being, behind US. During that decade, funding takeovers was relatively easy, as was formulating...

Banks doing the right thing: chairmen and chief executives have moved from showing white-eyed fear to a more narrow-eyed determination as they work to strengthen their banks' capital ratios.(SECTOR REPORTS: FOCUS ON BANKS)
June 1, 2008... Rights issues to strengthen capital ratios, and redundancies to cut costs, have dominated banking news from late April onwards, just as March was defined by the credit market turbulence that revolved around the final collapse of Bear Stearns....

British Energy sale in some disarray: it appears that only one indicative offer--from state-owned Electricite de France--was forthcoming by the May deadline that the company and its advisers had set for initial expressions of interest.(SECTOR REPORTS: FOCUS ON UTILITIES)
June 1, 2008... With such a modest return from all the excitement that the impending sell-off of British Energy had generated in March, hopes that the auction would achieve a price of 12bn [pounds sterling] (US$24bn) or more for the nuclear generator took a...

Dawnay Day and Noble seize opportunities: with AIM flotations down significantly, many smaller brokers are suffering and considering their own sale options. However, some mid-market advisers are taking advantage of the downturn to make opportunistic acquisitions.(MOVING IN THE MID-MARKETS: (US$500M-US$30M))
June 1, 2008... Smaller companies with illiquid markets in their shares tend to suffer in a downturn. Investors perceive them as unnecessarily risky and so sell them to seek safety in larger, more liquid stocks. Not surprisingly, therefore, the number of...

LMS looks for more deals: the 300m [pounds sterling] listed investment vehicle wants to make fewer but larger investments, giving it full control.(MOVING IN THE MID-MARKETS)
June 1, 2008... [ILLUSTRATION OMITTED] AIM-listed investment company LMS Capital, demerged two years ago from property group London Merchant Securities, has signalled its plan to make more leveraged buyouts following the sale of major investment Energy...

Asterand plans tissue tie-ups: sought after human tissue sample provider aims to consolidate highly fragmented industry.(MOVING IN THE MID-MARKETS)
June 1, 2008... A leading provider of specialised pharmaceutical research services, itself the subject of an unwanted takeover attempt, is planning to grow exponentially by acquisition over the next few years. AIM-listed Asterand believes it is the largest...

Turnberry golf course sold: open venue bought by Dubai state fund Leisurecorp for US$110m.(MOVING IN THE MID-MARKETS)
June 1, 2008... [ILLUSTRATION OMITTED] Turnberry golf resort, which includes the Ailsa course where the Open will be held next year, has been sold by current owner Starwood to Leisurecorp. The buyer is part of Dubai World, a state backed fund from the...

Inspired divestment attracts buyers: the sale of its pubs fruit machine business makes Inspired Gaming an attractive target.(MOVING IN THE MID-MARKETS)
June 1, 2008... Betting terminal and fruit machine operator Inspired Gaming has hired corporate finance boutique Global Leisure Partners to advise it after receiving several tentative takeover approaches. This latest development at the AIM-listed group...

Conran loses his appetite: famous London eateries on the block for reported 200m [pounds sterling] as Sir Terence seeks exit.(MOVING IN THE MID-MARKETS)
June 1, 2008... Habitat founder Sir Terence Conran has decided to sell his 51% stake in his eponymous restaurant chain prompting a possible sale of the entire business, now known as D&D London. Goldman Sachs has been mandated to handle the sale of the...

Tesco buys Hunter stake to win Dobbies.(MOVING IN THE MID-MARKETS)
June 1, 2008... [ILLUSTRATION OMITTED] The stand-up fight between supermarket heavyweight Tesco and Ayrshire-born philanthropic pugilist Sir Tom Hunter over Dobbies Garden Centres appears finally to be over, albeit on points. Hunter's Kilmarnock-based...

Chemring pounces on ejector seat maker.(MOVING IN THE MID-MARKETS)
June 1, 2008... [ILLUSTRATION OMITTED] UK military device maker Chemring has agreed to buy specialised aircraft parts producer Scot from private equity firm SMS Industries for US$40m. Scot produces ejector seats, precision motors and pyrotechnics for...

A special situation: Jean-Louis Grevet, founder of a new French private equity firm looking to exploit increasing opportunities in the distressed buyout space, speaks to Robert Venes.(BEHIND THE BUYOUTS: PRIVATE EQUITY PROFILE)(Company overview)
June 1, 2008... With the credit markets across Europe and the US in general disarray, opportunities for private equity firms focused on turnarounds and distressed debt have prompted a swathe of new funds by the likes of Carlyle Group and Oaktree Capital...

Nordic Capital partners for ConvaTec buy.(BEHIND THE BUYOUTS)
June 1, 2008... Nordic Capital, a private equity firm focused primarily on the Nordic region, has teamed up with Avista Capital, a US investor, to buy ConvaTec, the innovative wound therapeutics and ostomy care products unit of global pharmaceutical company...

Permira dials out on Debitel.(BEHIND THE BUYOUTS)
June 1, 2008... Permira, a now-global private equity firm, has sold its investment in German telecoms group Debitel to Freenet for 1.63bn [euro] (US$2.56bn) including debt. As part of the acquisition, Freenet's supervisory board approved the issue of 32m...

Warburg cleans up with 565m [pounds sterling] secondary.(BEHIND THE BUYOUTS)
June 1, 2008... Warburg Pincus, the global private equity firm, which closed its 10th generation buyout fund with commitments of US$15bn at the end of April, has bought Safetykleen Europe in a secondary buyout from private equity from CCMP Capital Advisors and...

Lion Capital buys Russia's Green Mark vodka.(BEHIND THE BUYOUTS)(Company overview)
June 1, 2008... US private equity group Lion Capital continues to be busy purchasing yet more assets in Russia, agreeing to acquire a majority stake in Green Mark vodka manufacturer Russian Alcohol. Industrial Investors--a Russian investment company...

EQT takes opportunity to invest in France and Germany.(BEHIND THE BUYOUTS)
June 1, 2008... EQT, a Nordic private equity house, has made two investments; buying a stake in a German retail chain and acquiring a unit of France's Valeo. Strauss Innovation, a retail chain with 108 stores in Germany and revenues of about 250m [euro]...

Stirling leads investment in Italian fashion.(BEHIND THE BUYOUTS)
June 1, 2008... Stirling Square Capital Partners, a pan-European mid-market private equity firm, has teamed up with retail and branded luxury goods investment specialist Sirius Equity to purchase Jeckerson, an Italian premium sportswear brand, from Blue...

M&A deal data.
June 1, 2008... M&A DEAL DATA This country analysis included acquisitions and buyouts announced between April 20 2008 and May 21 2008. Benelux Target Bidder Corio NV-Office & Industrial Investor Group...

Return to fundamentals: despite a lack of debt financing and changes to both the structure and pricing of what credit is available, the current climate may provide the best bets for France's private equity players. By Robert Venes recently in Paris.(FRANCE REPORT)
June 1, 2008... At the end of May, AFIC, the French private equity and venture capital association, held its fifth annual conference with the title "LBO: a return to fundamentals". With financial engineering currently residing in the "one to tell the...

Patriotisme economique: France's President Nicolas Sarkozy has every right to defend French interests and companies against unwanted foreign takeovers. But despite his protectionist rhetoric, Brussels has effectively tied his hands. More unpopular than ever at home, he must be seen to be doing something or he risks riots in the streets of Paris.(FRANCE REPORT)
June 1, 2008... [ILLUSTRATION OMITTED] When Dominique de Villepin was France's prime minister just a few years ago, he coined the term "patriotisme economique". It was about the same time that US drinks giant PepsiCo was rumoured to be readying a bid for...

A champion is born: by this summer France will have a new national champion. GDF Suez will be a utilities goliath and a consolidator. However, can a deal that was largely politically motivated work commercially?(FRANCE REPORT)
June 1, 2008... [ILLUSTRATION OMITTED] The merger of Gaz de France (GDF) with Suez is typically French in character and motivation. The deal, heavily orchestrated by the state, will create a world leader in energy with a market capitalisation potentially...

Bonne Sante: with private equity groups in the driving seat, the consolidation of France's private healthcare industry is set to speed up as the profit-driven private sector increasingly outshines its state-owned counterpart.(FRANCE REPORT)(Company overview)
June 1, 2008... [ILLUSTRATION OMITTED] Named in 2000 as the best healthcare service in the world by the World Health Organisation and lauded abroad for the high quality of service it offers to the French people, France's healthcare sector today finds...

Luxury looks East: the major French luxury goods companies are defying gloomy economic forecasts by exploiting fast-growing Eastern markets. Acquisitions are back on the agenda too.(FRANCE REPORT)
June 1, 2008... [ILLUSTRATION OMITTED] In times of economic stress, luxury goods makers should be vulnerable. After all, luxury items would surely be some of the first things straitened consumers would forgo. However, the current credit crunch appears to...

French M&A feels the crunch: global trends have dominated M&A activity in France over the past 12 months.(FRANCE REPORT)
June 1, 2008... The credit crunch has had a significant impact on acquisitions of French domiciled companies, which fell during the year to end-April by about one-third to close to US$100bn, compared with US$150bn in the same period of 2006-07. With...