Acquisitions Monthly articles from June 2009

Acquisitions Monthly archives from June 2009

Centrica's steady strategy.(EDITORIAL)
June 1, 2009... Centrica and EDF are natural bedfellows. Despite lengthy attempts to separate power producers from distributors, the two processes essentially remain interlinked. At EDF, there is no pretence about this. French users have long paid less for...

The paradox of regulation.(EDITORIAL)
June 1, 2009... A survey canvassing the views of financial services professionals, following the G20 meeting in April, on the impact of the latest phase of the global financial crisis on the future for financial institutions shows that some 68% think that...

US: DirecTV Group Inc definitively agreed to merge with Liberty Entertainment, a US provider of cable TV services, and a unit of Liberty Media Corp, for US$15.243bn.(May snapshot: Synopses of the largest deals announced last month)
June 1, 2009... US: DirecTV Group Inc definitively agreed to merge with Liberty Entertainment, a US provider of cable TV services, and a unit of Liberty Media Corp, for US$15.243bn. The consideration was to consist of US$13.273bn in common stock and the...

South Africa: Bharti Airtel Ltd (Bharti) of India planned to acquire a 36% stake, or 585.348m ordinary shares, in MTN Group Ltd (MTN), a Fairlands-based provider of wireless telecommunication services, for ZAR 93.759bn (US$11.388bn), in a privately transaction.(May snapshot: Synopses of the largest deals announced last month)
June 1, 2009... SOUTH AFRICA: Bharti Airtel Ltd (Bharti) of India planned to acquire a 36% stake, or 585.348m ordinary shares, in MTN Group Ltd (MTN), a Fairlands-based provider of wireless telecommunication services, for ZAR 93.759bn (US$11.388bn), in a...

India: MTN Group Ltd (MTN) of South Africa planned to acquire a 25% stake, or 118.64m ordinary shares in Bharti Airtel Ltd, a New Delhi-based provider of mobile telecommunication services, for an estimated INR 454.254bn (US$9.618bn), in a privately negotiated transaction.(May snapshot: Synopses of the largest deals announced last month)
June 1, 2009... INDIA: MTN Group Ltd (MTN) of South Africa planned to acquire a 25% stake, or 118.64m ordinary shares in Bharti Airtel Ltd, a New Delhi-based provider of mobile telecommunication services, for an estimated INR 454.254bn (US$9.618bn), in a...

US: Frontier Communications Corp (Frontier) definitively agreed to acquire the local wireline operations of Verizon Communications Inc (Verizon), a New York-based provider of telecommunications services, for US$8.583bn.(May snapshot: Synopses of the largest deals announced last month)
June 1, 2009... US: Frontier Communications Corp (Frontier) definitively agreed to acquire the local wireline operations of Verizon Communications Inc (Verizon), a New York-based provider of telecommunications services, for US$8.583bn. The consideration was to...

US: US Treasury planned to acquire an undisclosed majority interest in GMAC LLC.(May snapshot: Synopses of the largest deals announced last month)
June 1, 2009... US: US Treasury planned to acquire an undisclosed majority interest in GMAC LLC, a Detroit-based provider of financial services, and a 59. 86% owned-unit of General Motors Corp, for US$7.5bn.

Japan: Sumitomo Mitsui Banking Corp (SMBC), a wholly-owned unit of Sumitomo Mitsui Financial Group Inc (SMFG), has agreed to acquire Nikko Cordial Securities Inc (Nikko Cordial), a Tokyo-based securities brokerage firm, and a wholly-owned unit of Citigroup Inc's (Citigroup) subsidiary, Nikko Citi Holdings Inc.(May snapshot: Synopses of the largest deals announced last month)
June 1, 2009... JAPAN: Sumitomo Mitsui Banking Corp (SMBC), a wholly-owned unit of Sumitomo Mitsui Financial Group Inc (SMFG), has agreed to acquire Nikko Cordial Securities Inc (Nikko Cordial), a Tokyo-based securities brokerage firm, and a wholly-owned unit...

Announced deals worldwide: target region transaction volume year-to-date.(May snapshot: Synopses of the largest deals announced last month)
June 1, 2009... ANNOUNCED DEALS WORLDWIDE: TARGET REGION TRANSACTION VOLUME YEAR-TO-DATE Americas US $314,367.36m 49.5% Europe US $191,927.55m 30.2% Central Asia/Asia-Pacific US$89,570.27m 14.1% Japan...

Announced deals worldwide: target industry transaction volume year-to-date.(May snapshot: Synopses of the largest deals announced last month)
June 1, 2009... ANNOUNCED DEALS WORLDWIDE: TARGET INDUSTRY TRANSACTION VOLUME YEAR-TO-DATE Financials US$170,311.67 26.8% Healthcare US$133,803.55 21.1% Energy and power US$101,417.41 16.0% Materials US$68,678.65 ...

Top 10 global deals announced in May 2009.(May snapshot: Synopses of the largest deals announced last month)
June 1, 2009... TOP 10 GLOBAL DEALS ANNOUNCED IN MAY 2009 Date ann Target Target advisers 04/05/09 Liberty Entertainment (US) Goldman Sachs & Co/JP Morgan 25/05/09 MTN Group...

US: AT&T Inc has agreed to acquire wireless assets of Verizon Wireless Inc, a provider of wireless communications services, and a joint venture between Verizon Communications Inc and Vodafone Group PLC, for US$2.(May snapshot: Synopses of the largest deals announced last month)
June 1, 2009... US: AT&T Inc has agreed to acquire wireless assets of Verizon Wireless Inc, a provider of wireless communications services, and a joint venture between Verizon Communications Inc and Vodafone Group PLC, for US$2. 35bn in cash. Originally, in...

Venezuela: Corporacion Venezolana de Guyana (CVG), a unit of Venezuelan state-owned Fondo de Inversiones de Venezuela, acquired the remaining 59.7% interest.(May snapshot: Synopses of the largest deals announced last month)
June 1, 2009... VENEZUELA: Corporacion Venezolana de Guyana (CVG), a unit of Venezuelan state-owned Fondo de Inversiones de Venezuela, acquired the remaining 59.7% interest, which it did not already own, in rernium Sidor (TS), a Chuao-based manufacturer of...

Belgium: French state-owned Electricite de France SA (EDF) has agreed to acquire a 51% interest in SPE SA, a Brussels-based electric utility company, from Segebel SA, a unit of Centrica PLC's Centrica Overseas Holdings Ltd subsidiary, for EUR 1.355bn (US$1.848bn).(May snapshot: Synopses of the largest deals announced last month)
June 1, 2009... BELGIUM: French state-owned Electricite de France SA (EDF) has agreed to acquire a 51% interest in SPE SA, a Brussels-based electric utility company, from Segebel SA, a unit of Centrica PLC's Centrica Overseas Holdings Ltd subsidiary, for EUR...

Brazil; Perdigao SA (Perdigao) agreed to merge with Sadia SA (Sadia), a Concordia-based producer and wholesaler of meat products, to form Brasil Foods SA (Brasil), in a stock swap transaction valued at BRL 3.718bn (US$1.818bn).(May snapshot: Synopses of the largest deals announced last month)
June 1, 2009... BRAZIL; Perdigao SA (Perdigao) agreed to merge with Sadia SA (Sadia), a Concordia-based producer and wholesaler of meat products, to form Brasil Foods SA (Brasil), in a stock swap transaction valued at BRL 3.718bn (US$1.818bn). Sadia's majority...

South Korea: Kohlberg Kravis Roberts & Co agreed to acquire the entire share capital of Oriental Brewery Co Ltd (Oriental Brewery), a manufacturer of beer and liquor, from InBev NV (InBev), a majority-owned unit of Stichting Interbrew SA, for KRW 2.29tr (US$1.8 bn), in a leveraged buyout transaction.(May snapshot: Synopses of the largest deals announced last month)
June 1, 2009... SOUTH KOREA: Kohlberg Kravis Roberts & Co agreed to acquire the entire share capital of Oriental Brewery Co Ltd (Oriental Brewery), a manufacturer of beer and liquor, from InBev NV (InBev), a majority-owned unit of Stichting Interbrew SA, for...

Netherlands: Fleet Investments BV planned to acquire the 50% interest, which it did not already own, in LeasePlan Corp NV (LeasePlan), a provider of passenger car leasing services and a majority-owned unit of Volkwagen AG (Volkswagen), from United Arab Emirates state-owned Mubadala Development Co (Mubadala) and Olayan Group (Olayan), for 1.3bn [euro] (USD 1.774bn).(May snapshot: Synopses of the largest deals announced last month)
June 1, 2009... NETHERLANDS: Fleet Investments BV planned to acquire the 50% interest, which it did not already own, in LeasePlan Corp NV (LeasePlan), a provider of passenger car leasing services and a majority-owned unit of Volkwagen AG (Volkswagen), from...

US: NetApp Inc (NetApp) definitively agreed to acquire the entire share capital of Data Domain Inc (Data), a Santa Clara-based manufacturer of deduplication storage systems, for US$25 in cash and NetApp common shares per share, or a total value of US$1.735bn.(May snapshot: Synopses of the largest deals announced last month)
June 1, 2009... US: NetApp Inc (NetApp) definitively agreed to acquire the entire share capital of Data Domain Inc (Data), a Santa Clara-based manufacturer of deduplication storage systems, for US$25 in cash and NetApp common shares per share, or a total value...

Desperately seeking Freyja in the Nordics: what Eros was to the Greeks, Freyja was to the Norse. For the year to-date, there seems to be a serious lack of matching up buyers and sellers in the Nordic countries thanks to the financial crisis. Deal flow by value is down 65% year-on-year. But there is hope yet for the M&A community: the break-up of Sweden's US$2.6bn pharmacy market.(LEAD FEATURE: FOCUS ON NORDICS)
June 1, 2009... [ILLUSTRATION OMITTED] Nordic deals plunged by a staggering 65% by value to US$18.8bn in the first few months of this year to May 7, while the number of deals dropped by almost 40% to 605 in the same period, according to Thomson Reuters...

Visibility concerns: as stocks in listed French investors Wendel and Eurazeo drop to prices last seen five years ago, Acquisitions Monthly looks at how the two houses have fared in the public gaze and an economic storm.(SPECIAL REPORT: FRANCE)
June 1, 2009... [ILLUSTRATION OMITTED] In 2002, Wendel Investissement took a bold and transformative decision. The Paris bourse-listed investment house chose Jean-Bernard Lafonta to be its new chief executive, the first from outside the Wendel family in...

EDF takes nuclear dream beyond France: electricite de France, the world's largest nuclear power generator, has done two major deals, one in the UK and one in the US, which it hopes will cement its growth prospects. The focus will now shift to integrating those acquisitions and on making disposals.(SPECIAL REPORT: FRANCE)
June 1, 2009... [ILLUSTRATION OMITTED] There is a certain irony in a French company playing a key role in the revival of nuclear power generation in the UK and to an extent in the US. The nuclear bomb was invented in the US and the world's first-ever...

French fortunes: following the French government's second 10.5bn [euro] phase of support for the financial sector, France's main banks are working to realign themselves to face a brave new world.(SPECIAL REPORT: FRANCE)
June 1, 2009... [ILLUSTRATION OMITTED] The situation in France tells a similar story to many other nations facing the global financial crisis. With M&A volumes down 56% on last year for deals with any French involvement, the rule seems to be to wait...

France appeals to foreign buyers: the level of foreign acquisitions in France has been consistently low over the past 10 years, according to data from Thomson Reuters. Could recent changes in French takeover law and in social and fiscal policies make acquisitions in France more appealing to foreign buyers?(SPECIAL REPORT: FRANCE)
June 1, 2009... [ILLUSTRATION OMITTED] The proportion of M&A activity involving foreign acquirers is much lower in France than somewhere such as the UK, which is seen by many as the epitome of an open market. According to Thomson Reuters the value of...

Sanofi-Aventis in acquisition mode: with mega-mergers avoided so far, the world's fourth largest pharma company, Sanofi-Aventis of France, is looking to emerging markets and generic drugs for expansion as its new chief executive looks set to herald an era of prolific deal-making.(SPECIAL REPORT: FRANCE)
June 1, 2009... [ILLUSTRATION OMITTED] Sanofi-Aventis has been named as a potential acquirer on most, if not all, of the pharma-related deal turnouts since the beginning of the year. After chief executive Chris Viehbacher revealed that the company had...

What will the doctor order? Focus on pharmaceuticals: looming patent expiries are heightening big pharmas' appetite for acquisitions. Alongside mega-mergers and buying-in R&D, deal activity is being shaped by diversification strategies that in future could add new meaning to the concept of the healthcare conglomerate.(SECTOR REPORTS: FOCUS ON PHARMACEUTICALS)(Company overview)
June 1, 2009... [ILLUSTRATION OMITTED] It would not be unreasonable to look at 2009 as the year that saw the mega-merger return to the pharma sector almost a decade after the huge deals that created many of the single, double and triple-barrelled...

Is universal banking dead? Sixty-five million years ago a meteorite struck the earth, changed the climate and brought the reign of dinosaurs, to an abrupt end. Arguably, the credit crunch was a similarly cataclysmic environment-changing event for the universal banks. But are they really heading for mass extinction, as some have suggested?(SECTOR REPORTS: FOCUS ON FIG)
June 1, 2009... Since the credit crunch, numerous commentators and organisations have been lining up to call time on the universal banking model. Many of those banks have anyway only survived thanks to state bail-outs. Critics argue that they are too big, too...

Battle heightened for Barclays investment arm.(SECTOR REPORTS: FOCUS ON FIG)
June 1, 2009... Private equity group CVC faces a nervous month before the deadline expires on Barclays' go-shop agreement to find a potential rival bidder for iShares, the UK bank's exchange-traded fund provider. On April 9, Barclays agreed to sell Shares,...

Tech deal angst: technology deals have been crunched to death for the year to-date.(SECTOR REPORTS: FOCUS ON TMT)
June 1, 2009... Worldwide deals dive-bombed 60% in value to US$25.4bn in the year up to May 13, according to Thomson Reuters data. The number of deals in the same period are down almost 30%. "The first quarter of 2009 has been a torrid time for most asset...

Gulf telecoms US$10bn war chest: having launched aggressive international expansion plans in the past few years, some of the Gulf's largest telecoms companies are now aiming to become world leaders through acquisitions and mergers.(SECTOR REPORTS: FOCUS ON TMT)
June 1, 2009... Big regional players such as Zain in Kuwait, Etisalat in the UAE and STC in Saudi Arabia, along with Egypt's Orascom, Batelco of Bahrain and Qtel of Qatar, are planning to spend more than US$10bn on acquisitions by 2012. "We have earmarked...

Pleasing the pensioners: pension scheme liabilities could prove to be poison pills in the wave of imminent restructuring deals.(LEGAL & REGULATORY)
June 1, 2009... [ILLUSTRATION OMITTED] Executing deals in the current harsh environment is challenging to say the least, particularly where transactions are provoked by financial restructuring. However, in these situations advisers' problems are being...

EU directive 'sub-optimal' outcome for private equity: hopes of private equity being left to self-regulate seem all but over, despite the fact that the UK's Guidelines Monitoring Group is considering lowering the 500m [pounds sterling] transaction size threshold.(LEGAL & REGULATORY)
June 1, 2009... [ILLUSTRATION OMITTED] The long-awaited European Commission's Directive on Alternative Investment Fund Managers was blasted by the European private equity industry upon its publication at the end of April. The industry's main...

Carbon reduction move to hit M&A: the Carbon Reduction Commitment that the UK government will introduce from 2010 will have a significant influence on M&A activity of companies that use more than 500,000 [pounds sterling] worth of electricity a year.(LEGAL & REGULATORY)
June 1, 2009... The introduction by the UK government from next year of the Carbon Reduction Commitment will be an addition to the existing carbon-trading arrangements (such as the EU Emissions Trading Scheme for heavy industrial users) and its full provisions...

Regulatory changes won't hamper M&A: a panel of experts didn't see regulatory change as a major problem for future M&A levels when they discussed the issue at a web-based roundtable in May, but they cautioned that this could change when a new European Commission is appointed later in the year.(LEGAL & REGULATORY)
June 1, 2009... The five experts who gathered to discuss the impact that regulatory changes might have on M&A activity in the coming years were more upbeat than one might have expected them to be. Held on May 7, the day the US government announced the...

Close brothers sells corporate finance arm: Daiwa SMBC becomes latest Japanese acquirer to snap up a UK advisory business.(MOVING IN THE MID-MARKETS)(Company overview)
June 1, 2009... (US$500M-US$30M) Daiwa Securities SMBC Europe has acquired the M&A advisory arm of UK merchant bank Close Brothers Corporate Finance (CBCF). Through the 75m [pounds sterling] deal, the Japanese investment bank adds a European dimension to...

Mid-market reshuffle: the sale of Close Brothers Corporate Finance is just one of several moves that has shaken up the mid-market advisory landscape this year.(MOVING IN THE MID-MARKETS)
June 1, 2009... To many in the mid-market, Close Brothers' advisory business has seemed under siege since Andy Stewart's start-up brokerage Cenkos made an unsolicited offer a year and a half ago. Stewart, who co-founded the eponymous brokerage Collins...

QinetiQ sells underwater defence systems to Germans.(MOVING IN THE MID-MARKETS)
June 1, 2009... UK defence technology research business QinetiQ has agreed to sell its underwater systems business (UWS) for 23.5m [pounds sterling] in cash to Atlas Elektronik, which is jointly owned by EADS and Germany's Thyssen-Krupp. UWS is based in...

Panmure Gordon goes with Middle East.(MOVING IN THE MID-MARKETS)
June 1, 2009... The three-way bid battle to acquire a significant minority stake in Panmure Gordon, the UK mid-cap stockbroker and investment bank established in 1876, has been won by QInvest, Qatar's largest investment bank. Tim Linacre, chief executive...

AIM companies see deal revival: more than 60% of businesses expect to conduct a transaction in the coming year.(MOVING IN THE MID-MARKETS)
June 1, 2009... Nearly two-thirds of companies listed on London's Alternative Investment Market (AIM) are planning to conduct M&A deals over the next 12 months, according to a survey by small cap specialist broker Daniel Stewart. The firm quizzed 98...

Carphone hangs on for Tiscali: the fledgling UK telecom provider's wait was worth it as it paid a reduced price for the Italian company's UK division.(MOVING IN THE MID-MARKETS)
June 1, 2009... It seems that mobile phone retailer Carphone Warehouse struck a good deal when it finally bought the UK business of indebted Italian internet service provider Tiscali for 236m [pounds sterling] last month. The original price tag was 600m...

Eddie Stobart flies into Carlisle.(MOVING IN THE MID-MARKETS)
June 1, 2009... Cumbrian logistics operator Stobart Group is due to cement its presence in the air transport market through the acquisition of Carlisle airport. The E14m purchase builds on the group's acquisition of London Southend Airport last December for a...

Shine picks up Metronome.(MOVING IN THE MID-MARKETS)
June 1, 2009... UK television producer Shine Group, founded by media scion Elisabeth Murdoch in 2001, has acquired Metronome Film & Television, the Nordic region's largest production group, from its parent company Schibsted. The transaction increases...

Shanks sells stake in Scottish venture.(MOVING IN THE MID-MARKETS)
June 1, 2009... UK waste management group Shanks is to sell its 50% stake in Avondale Environmental as well as its interest in a soil treatment facility at Kinneil Kerse to Landmedia, Shanks' partner in the Scottish joint venture, for 27.5m [pounds sterling]....

Good news for advisers: there could be good news in store for advisers that have so far survived on some lean fees from private equity firms.(PRIVATE EQUITY COLUMN)
June 1, 2009... There could be good news in store for advisers that have so far survived on some lean fees from private equity firms. According to a recent report from Freeman & Co, there are about US$949bn worth of PE related vintage loans from 2006 and 2007...

Private equity outbid on Gatwick.(BEHIND THE BUYOUTS)
June 1, 2009... Manchester Airports Group's original bid for Gatwick Airport remains the only one still definitely being considered by Ferrovial, the owner of British Airports Authority (BAA). However, the process has been thrown into some disarray by BAA,...

In sickness and health: the potential sale of care and nursing home operator Four Seasons suggests that here is still plenty of life in the healthcare services sector, with private equity largely in the driving seat at both ends of the pricing scale.(BEHIND THE BUYOUTS)
June 1, 2009... [ILLUSTRATION OMITTED] Few businesses of any scale can lay claim to having been under private equity ownership for the past decade, nor to have passed through three separate financial sponsors during that period. Despite this, Cheshire,...

Infrastructure investors look for higher returns: a global survey of players in the infrastructure market including private equity has underlined the perceived strength of infrastructure as an asset class.(BEHIND THE BUYOUTS)
June 1, 2009... [GRAPHIC OMITTED] [GRAPHIC OMITTED] [GRAPHIC OMITTED] [GRAPHIC OMITTED] The majority of respondents (57%) to a survey are looking for higher investment returns from infrastructure investments this year than those they...

Infrastructure fees much lower.(BEHIND THE BUYOUTS)
June 1, 2009... The infrastructure funds that private equity firms are now setting up to diversify their investment portfolios will clearly have much lower fee structures than their traditional leveraged buyout funds. The US$4bn debut infrastructure fund...

Ten bidders for second Wood Mackenzie round.(BEHIND THE BUYOUTS)
June 1, 2009... There is a significant amount of interest in the auction to acquire oil industry consultancy Wood Mackenzie, with at least 10 parties submitting indicative offers. Wood Mackenzie is majority owned by UK private equity firm Candover, whose...

Terra Firma fuels up for ILFC fight.(BEHIND THE BUYOUTS)
June 1, 2009... One month after founder Guy Hands stepped aside as chief executive to focus on deal-making, Terra Firma Capital Partners is being linked with a bid of just under US$5bn for American International aircraft leasing business, International Lease...

Carlyle looks at BPP.(BEHIND THE BUYOUTS)
June 1, 2009... British education and training company BPP Holdings Plc has received a preliminary approach from Apollo Global at 620 pence per share in cash. The approach was at a 70% premium to BPP's closing price the previous day, valuing BPP at 303.5m...

Anacap buys specialist UK bank.(BEHIND THE BUYOUTS)
June 1, 2009... Financial services-focused private equity investor Anacap has acquired specialist UK lender Ruffler Bank. Anacap secured the takeover of the deposit-taking lender, the first such acquisition by a private equity firm in the UK after receiving...

HgCapital beefs up in renewables.(BEHIND THE BUYOUTS)
June 1, 2009... HgCapital, the European mid-market private equity firm, is continuing its buying spree in the renewable energy sector with yet another Spanish purchase. Along with its local partners, HgCapital is acquiring a Spanish solar energy power...

Almatis.(M&A restructuring round-up)
June 1, 2009... DIC-owned Almatis has hired Close Brothers to advise on managing its US$1bn debt burden, Rothschild is advising a group of senior lenders and KPMG has been brought in to do due diligence on the company. Banks are understood to have been...

IMO Carwash.(M&A restructuring round-up)
June 1, 2009... A sale process to find buyers for IMO Carwash has been extended, and senior lenders are understood to have prepared their own bid vehicle in a demonstration of their willingness to take the keys if no alternative is found and their...

Incisive Media.(M&A restructuring round-up)
June 1, 2009... Lenders to Incisive Media are understood to have rejected a proposed restructuring deal that would see sponsor Apax inject 20m [pounds sterling] into the business in exchange for a 50% write-down of senior debt and the total wipe-out of junior...

Monier.(M&A restructuring round-up)
June 1, 2009... Lenders to German roofing materials maker Monier have yet to see a fully worked out restructuring proposal from a consortium of distressed debt investors Apollo, Towerbrook and York Capital, according to people involved in the deal. A...

Sanitec.(M&A restructuring round-up)
June 1, 2009... EQT will inject 115m [euro] of new equity into Sanitec, a Finnish bathroom supplies maker, under terms agreed with a steering committee of senior lenders. The company has been in talks with banks since December but senior lenders, led by RBS,...