Acquisitions Monthly articles from October 2006

Acquisitions Monthly archives from October 2006

Dealmakers optimistic about M&A.(EDITORIAL)
October 1, 2006... Despite fears of a US economic slowdown, M&A professionals say that cross-border activity in financial services, pharmaceuticals, metals, mining and power utilities will all be major drivers, but that national protectionism and regulation will...

A great market for deals: total European M&A transaction volume has grown from the strong first nine months of 2005 largely on account of big deals.(M&A REVIEW OF YEAR TO DATE)
October 1, 2006... Europe continues to represent a disproportionate share of activity, with participation in roughly half of all transactions worldwide and volumes up substantially more in Europe than in the US, to the point that European activity outpaced deal...

Power play: after eight months, E.ON is determined to win its protracted battle for Endesa.(DEAL FOCUS)
October 1, 2006... Wulf Bernotat has to wait a few more months for his celebratory dry martini, but he will be sipping it early next year if all goes to plan. The CEO of German energy giant E.ON has been battling for control of Spanish energy player Endesa since...

September snapshot: synopses of the largest global deals announced last month.(MARKET INTELLIGENCE)
October 1, 2006... US Firestone Holdings LLC, an investment vehicle formed by Blackstone Group, Carlyle Group, Permira Advisers and Texas Pacific Group for the purpose of making an acquisition, has agreed to acquire all the outstanding common stock of Freescale...

Disappointing average bid premia in second quarter: the second quarter of 2006 saw a quarter-on-quarter trade-off in terms of the number of deals and average premia paid.(MARKET INTELLIGENCE)
October 1, 2006... There was a surge of eligible completed offers between April and June, with 22 offers completed compared with 16 in the first quarter. There was, unfortunately, no such surge in the average premia paid. Average premia to the target share price...

Oil and gas M&A action moves down the chain: there is now a clear distinction between levels of corporate activity in the oil and gas sector. At the top end of the business, national strategic considerations are dominating the direction of mergers and acquisitions--in some cases strangling them. Meanwhile, further down the chain, expectations about the future direction of energy prices are fuelling a surge in deals.(SECTOR REPORTS: FOCUS ON OIL & GAS)
October 1, 2006... Russia is exerting massive influence on the strategies of the Western multinationals and European governments. As the Kremlin has made concerted efforts over the past 12 months to reassert a controlling interest over its domestic oil sector,...

Expect more building society bids: Corporate financiers are expecting further consolidation among building societies following news that Nationwide plans to take over fellow mutual Portman.(SECTOR REPORTS: FOCUS ON FIG)
October 1, 2006... The Nationwide/Portman deal, announced on September 12, will create a combined organisation with assets of more than 150bn [pounds sterling] (US$279bn). Nationwide is the largest building society in the UK by some distance, with Britannia the...

Private equity firms eye Telecom Italia mobile arm: Permira, Carlyle Group and Apax Partners are reportedly mulling separate bids for TIM, the mobile unit of Telecom Italia, in what would be Europe's biggest ever buyout.(SECTOR REPORTS: FOCUS ON TMT)
October 1, 2006... Permira, Carlyle Group and Apax Partners are reportedly mulling separate bids for TIM, the mobile unit of Telecom Italia, in what would be Europe's biggest ever buyout. TIM has attracted the interest of private equity firms following news...

Restructuring looms: debt markets and private equity funds appear oblivious to the existence of a restructuring cycle. But it has just caught up with Schefenacker, a German maker of rear-view mirrors. So when will restructuring reach the rest of corporate Europe?(LEGAL & REGULATORY)(Company overview)
October 1, 2006... Schefenacker, the Schwaikheim-headquartered maker of rear-view mirrors, has become one of the latest bits to fall off the great, shuddering global automotive industry. In September 2006, the family-owned and run business, which employs more...

Restructuring case studies: we asked practitioners to describe the financial restructuring of a company completed in recent years, describing what was innovative about the restructuring; how it was implemented and what tactics were employed; and in what way has it been successfully completed.(LEGAL & REGULATORY)
October 1, 2006... Jarvis "After three liquidity shortfalls in early 2005, the lenders to Jarvis would not provide further funding without a permanent solution to its over-leveraged balance sheet. In early May, with a fourth liquidity crisis looming...

President of CAT joins Linklaters.(INSTITUTIONS)
October 1, 2006... Sir Christopher Bellamy, widely acknowledged as one of Europe's most influential competition lawyers, is to join Linklaters' global competition/antitrust practice as a senior consultant. Sir Christopher is stepping down later this year...

Private equity firms expand in Italy: several private equity groups have boosted their operations in Italy as speculation mounts that the nation's mobile phone company might be put into play by Telecom Italia.(INSTITUTIONS)
October 1, 2006... The mooted sale of Telecom Italia's mobile arm, TIM, to private equity companies has come at the same time as these operators have expanded their Italian interests. Reports have suggested that Texas Pacific, Blackstone, Kohlberg Kravis...

Churchill team links up with Liverpool Victoria: (US$500m-US$30m).(MOVING IN THE MID-MARKETS)
October 1, 2006... The management company of the team that built up Churchill Insurance has been bought by Liverpool Victoria Friendly Society, in a deal worth 450m [pounds sterling] (US$837m). ABC Insurance Solutions was formed only last year by a group of...

Oil and gas dealmakers get ready for action: with the oil price retreating from record highs hopes have been sparked of takeovers amongst mid market oil and gas companies.(MOVING IN THE MID-MARKETS)
October 1, 2006... Tool providers tend to benefit more from commodity booms than the explorers and producers they supply and the surge in the oil price over the year has proved no different. The cost of a barrel of crude oil has remained above US$60 for most...

Khodorkovsky's lawyer offers his own opinion on Russia's investment climate: Robert Amsterdam is a human rights lawyer and founding partner of Amsterdam & Peroff. He represents Mikhail Khodorkovsky, the former owner of the now bankrupt Yukos.(MOVING IN THE MID-MARKETS)
October 1, 2006... Russia offers much to interest the foreign investor with its rich natural resources. However, a climate of risk still holds back foreign investors, who are reluctant to commit capital to an economy in which the Kremlin frequently interferes to...

Addison Lee acquires Redwing coaches: combined turnover of Addison Lee and new acquisition to exceed 66m [pounds sterling] (US$123m).(MOVING IN THE MID-MARKETS)
October 1, 2006... London-based transport/car company Addison Lee has acquired Redwing, private coach hire company, in a deal announced on July 18. The combined turnover will be in excess of 66m [pounds sterling] (US$122.8m), but the actual sum paid for Redwing...

Strategic buyers could make come back.(MOVING IN THE MID-MARKETS)
October 1, 2006... Private equity players have dominated the mid-market merger and acquisitions scene so far this year, but delegates at a conference organised by mid-market specialist boutique Livingstone Guarantee believed that trade buyers could make a...

BOI to sell Ireland's biggest stockbroker.(MOVING IN THE MID-MARKETS)
October 1, 2006... Ireland's second biggest bank group Bank of Ireland (BoI) has confirmed it is in talks with management at its Davy Stockbrokers unit, who have made a conditional proposal to launch a buyout offer for the business. Davy is the largest...

Johnson adds fish and pastries to menu at risk: restaurant king Luke Johnson is back with another acquisition of a favourite London eatery.(AM INTERVIEW)
October 1, 2006... Luke Johnson, a name synonymous with London fine dining and popular high street eateries, has added to his definitive collection of culinary treasures with the acquisition of Patisserie Valerie this month. Johnson, who rather surprisingly...

Hogg Robinson failure deters private equity floats: pipeline for flotations looks thinner after Hogg Robinson deal is pulled by Permira.(BEHIND THE BUYOUTS)
October 1, 2006... The failure of private equity backer Permira to float travel business Hogg Robinson on the London Stock Exchange in September has fuelled doubts that the stock market has yet to revive after May's downturn. David Simpson, corporate finance...

Four Seasons goes to Three Delta.(BEHIND THE BUYOUTS)
October 1, 2006... Healthcare business Four Seasons has been acquired by Paul Taylor, the former head of structured finance at NatWest, from Allianz Capital Partners after a protracted auction that took nearly nine months. The provider of elderly healthcare...

Gondola stays quiet on Cinven.(BEHIND THE BUYOUTS)
October 1, 2006... The group, which owns the Pizza Express and ASK Central chains, reported a 4.1% increase in like-for-like sales to 360.5m [pounds sterling], producing a 5.3% rise in pretax profits to 33.6m [pounds sterling]. Since the year-end, like-for-like...

Apax to buy Incisive Media.(BEHIND THE BUYOUTS)
October 1, 2006... Incisive Media, the Publisher of titles such as Investment Week, Risk and Your Mortgage is to be sold for 199m [pounds sterling] (US$375m). Apax Partners, through its bid company Apax Summer, has agreed a 195p per share offer to acquire...

3i exits SR Technics: UAE-based consortium buys aviation repair services provider for 1bn [euro].(BEHIND THE BUYOUTS)
October 1, 2006... 3i has sold SR Technics for 1bn [euro] to a consortium of investors based in the United Arab Emirates The new owners comprise SR's incumbent management team led by CEO Hans Lerch, Mubadala Development of Abu Dhabi, and Dubai Aerospace...

Linden seeks exit as Mother wins McCarthy & Stone.(BEHIND THE BUYOUTS)
October 1, 2006... The management of house builder Linden Holdings has appointed NM Rothschild to conduct a possible sale of the business. The company said the bank would be looking for both private equity and trade buyers. FTSE 100 house builder Persimmon is...

Permira acquires Principal Hotels.(BEHIND THE BUYOUTS)
October 1, 2006... Permira has acquired the six-strong hotel chain Prinicipal Hotels from RBS in a circa 300m [pounds sterling] (US$561 m) deal. With the lucrative sale of Travelodge to Dubai International earlier this month and its unsuccessful bid for the De...

Turkey--getting the fundamentals right: while the Turkish economy has lurched from crisis to crisis over recent decades, its M&A market has remained a moribund outrider to the mainstream of European deal flow.(TURKEY REPORT)
October 1, 2006... In 2005, Much changed dramatically in Turkish M&A, with a close to 30-fold increase in the value of deals announced. According to data from Thomson Financial, M&A deals worth more than US$30bn were announced in Turkey last year, compared with...

Associated British Ports.(M&A capital markets review)
October 1, 2006... The 2.37bn [pounds sterling] loan backing the acquisition of Associated British Ports has launched, via mandated lead arranger Barclays, Dexia, Goldman Sachs and RBS. A consortium comprising Borealis Infrastructure Management, GIC, Goldman...

All3Media Group.(M&A capital markets review)
October 1, 2006... Bookrunners Bank of Scotland and RBS are preparing for an early September launch of the debt supporting Permira's buyout of All3Media Group. Total senior debt of 173m [pounds sterling] comprises a 34m [pounds sterling] seven-year term loan A...

Azzuri Communications.(M&A capital markets review)
October 1, 2006... Azzuri Communications is in the market with a 120m [pounds sterling] LBO facility, via mandated lead arrangers Bank of Scotland and Barclays. PPM is the sponsor. Debt is split between a 25m [pounds sterling] seven-year term loan A at 225bp over...

Capio.(M&A capital markets review)
October 1, 2006... Bank of Scotland and Barclays have been mandated to arrange the debt backing Apax Partners' and Nordic Capital's unsolicited 1.6bn [euro] bid for Swedish healthcare group Capio. Capio was last in the market in 2005 with a 500m [euro]...

Casema.(M&A capital markets review)
October 1, 2006... The record for a single European mezzanine tranche could be about to shatter as Casema's circa 4bn [euro] debt package is being prepared for launch later this month. Although the structure has not been finalised, mandated lead arrangers ABN...

Groupe Elior.(M&A capital markets review)
October 1, 2006... French catering company Groupe Elior has signed and allocated its 1.97b [euro] take-private loan, via bookrunners Calyon, Merrill Lynch and Morgan Stanley. The deal was flexed down after an oversubscription. Post flex, the deal pays 237.5bp...

House of Fraser.(M&A capital markets review)
October 1, 2006... Bookrunners Bank of Scotland and Glitnir are preparing to launch the debt package backing Icelandic investment group Baugur's acquisition of UK department store House of Fraser. The total 764m [pounds sterling] debt package comprises 584m...

M+W Zander Holding.(M&A capital markets review)
October 1, 2006... M+W Zander Holding has closed the 310m [euro] loan backing its Springwater Capital backed buyout, via mandated lead arranger LBBW. The facility is oversubscribed. Senior debt totals 280m [euro] and includes term loans of seven years paying...

Gartmore.(M&A capital markets review)
October 1, 2006... Goldman Sachs and HSBC as mandated lead arrangers and bookrunners are out with the 310m [pounds sterling] loan backing Hellmann & Friedman's circa 500m [pounds sterling] buyout of fund manager Gartmore, which is being sold by US financial...

Metroweb.(M&A capital markets review)
October 1, 2006... Stirling Capital Partners has mandated ING to arrange the 195m [euro] debt package supporting its majority buyout of Metroweb, the owner and operator of the largest open fibre optics network in Milan. The loan includes a 145m [euro] senior...

Paroc.(M&A capital markets review)
October 1, 2006... Mandated lead arranger ING is out with the circa 545m [euro] loan backing Arcapita's buyout of Paroc, the Finnish manufacturer of stone wool insulation. Drawn facilities are split between a 70m [euro] seven-year term loan A paying 200bp over...

Time Partner.(M&A capital markets review)
October 1, 2006... German temping agency Time Partner has launched a 215m [euro] debt backing its buyout by Investcorp from AUCTUS Management through sole bookrunner HVB. Senior debt comprises a 30m [euro] seven-year term A loan with a margin of 225bp over...

M&A deal data: this country analysis included acquisitions and buyouts announced between 16 August 2006 and1 16 September 2006.
October 1, 2006... M&A DEAL DATA This country analysis included acquisitions and buyouts announced between 16 August 2006 and 16 September 2006. Benelux Target Bidder Cavotec Group Holdings NV (NE) Mooring...

Russian M&A set to increase up to 2008: Russia is seen as an increasingly safe market despite Yukos and state-interference.(OVERVIEW)(Company overview)
October 1, 2006... The political situation Russian M&A activity is set to soar before the Russian presidential elections in 2008 take precedence over everything else in the country. Although President Vladimir Putin is not constitutionally permitted to stand...

Rusal and Sual push on with US$30bn merger: the two companies are set to become the world's largest aluminium enterprise.(RUSAL)
October 1, 2006... Russia's largest aluminium companies, Rusal and Sual, in addition to Glencore, the Swiss commodities supplier, have this September been pushing ahead with their planned US$30bn merger. Once their lawyers and financial advisers have worked...

KPMG Financial Advisory Services, Moscow.(SPONSORED PROFILE: KPMG FINANCIAL ADVISORY SERVICES, MOSCOW)
October 1, 2006... KPMG's Moscow Financial Advisory Services group is part of KPMG's global network of over 7,000 financial advisory professionals in 60 countries, and provides a range of advisory services that help the firm's clients develop and achieve their...

The culture of doing in deals in Russia.(SPONSORED ARTICLE: KPMG IN RUSSIA AND CIS)
October 1, 2006... In less than a century Russia has undergone a full-circle transition from the existence form of private ownership under the Tsar, abolishment of private property by the newly-founded state after the October Revolution, back to the privatization...

Kremlin goes after US$30bn worth of Yukos assets: the residual assets divide--crucially--between those inside Russia and those outside.(YUKOS)
October 1, 2006... The Kremlin might have achieved its aim of killing off Yukos as a corporate entity, but the disposal of the bankrupt company's remaining assets--which are notionally worth more than US$30bn--will command legal and media attention for several...

Putin makes move on EADS: Russians might try and buy a blocking stake in Europe's largest aerospace and defence company.(EADS)
October 1, 2006... The Russians are trying to take over Europe's largest aerospace and defence company, EADS, which owns Airbus. That was the word that certain members of the Russian ex-pat community in London were trying to spread in the UK national press at the...

Minigarchs the new competition in Russia: private equity is still only for Russians, but international players are lining up to enter the fray. Nick P. Davies reports from Moscow.(PRIVATE EQUITY)
October 1, 2006... Despite rising international interest in Russian private equity, the sector remains heavily dominated by local players. Unlike classic private equity in Europe and the US, where specialist firms raise closed-end funds from institutional...

Recovery in investment: long-term growth will depend on a revival of the liberal reform course and privatisation is an important part of the equation.(PRIVATISATION)
October 1, 2006... Real GDP growth in Russia for 2005 was 6.4%, below the levels registered in 2003 and 2004. There was, however, a slight recovery in the last quarter of the year. Growth was driven by household consumption, which increased by about 11%...