Acquisitions Monthly articles from October 2007

Acquisitions Monthly archives from October 2007

Nominate your M&A deals and your firm for awards.(ANNUAL AWARDS PROCESS)
October 1, 2007... Acquisitions Monthly magazine encourages firms to make submissions for the 2008 Acquisition Monthly Awards for M&A and buyout work completed during 2007. The winners will be influenced primarily by the range of submissions, our own research and...

Record-breaking activity--but for how long? Third-quarter M&A figures show that despite the turmoil in the credit markets, records are still being broken, with global M&A activity 50% up on the same time last year and European activity heading towards US$2trn.(M&A REVIEW OF YEAR TO DATE)
October 1, 2007... Third-quarter M&A figures released by Thomson Financial show that despite the hit taken as a result of the credit crunch, global M&A activity during the first nine months of the year rose by 50% compared with the same period last year to...

HSBC Holdings PLC (HH), through its indirect wholly-owned unit, HSBC Asia Pacific Holdings (UK) Ltd, agreed to acquire a 51.02% interest, or 329.043m ordinary shares, in Korea Exchange Bank (KE), from Lone Star Funds (LS), for W18,425 (US$19.696) in cash per share, or a total value ofW6.063trn (US$6.481bn).(SOUTH KOREA)
October 1, 2007... HSBC Holdings PLC (HH), through its indirect wholly-owned unit, HSBC Asia Pacific Holdings (UK) Ltd, agreed to acquire a 51.02% interest, or 329.043m ordinary shares, in Korea Exchange Bank (KE), from Lone Star Funds (LS), for W18,425...

MetroPCS Communications Inc (MC) said it planned to merge with Leap Wireless International Inc (LW), a provider of wireless telecommunication services, in a stock-swap transaction valued at US$5.235bn. MC offered 2.75 common shares per LW share.(US)
October 1, 2007... MetroPCS Communications Inc (MC) said it planned to merge with Leap Wireless International Inc (LW), a provider of wireless telecommunication services, in a stock-swap transaction valued at US$5.235bn. MC offered 2.75 common shares per LW...

Abu Dhabi National Energy Co PJSC, through its wholly owned 1350849 Alberta Ltd and TAQA North Ltd subsidiaries, agreed to acquire all the outstanding units of PrimeWest Energy Trust, an oil and gas exploration and production company, for C$26.75 (Dh97.962/US$26.707) in cash per unit, or a total value of C$3.97bn (Dh14.539bn/US$3.964bn).(CANADA)
October 1, 2007... Abu Dhabi National Energy Co PJSC, through its wholly owned 1350849 Alberta Ltd and TAQA North Ltd subsidiaries, agreed to acquire all the outstanding units of PrimeWest Energy Trust, an oil and gas exploration and production company, for...

E.ON AG.(RUSSIA)
October 1, 2007... E.ON AG of Germany said it planned to acquire a 47.4% stake, or 23.273bn ordinary shares and 6.575bn newly issued ordinary shares, in JSC Generation Co Four of the Wholesale Market of Power and Energy (OGK-4), a Moscow-based electric utility,...

NewPage Holding Corp, a unit of Cerberus Capital Management LP, definitively agreed to acquire Stora Enso North America Inc, a manufacturer of paper, lumber and chemicals, from Stora Enso Oyj (SE), for US$2.52bn.(US)
October 1, 2007... NewPage Holding Corp, a unit of Cerberus Capital Management LP, definitively agreed to acquire Stora Enso North America Inc, a manufacturer of paper, lumber and chemicals, from Stora Enso Oyj (SE), for US$2.52bn. The consideration was to...

T-Mobile USA Inc, a unit of Deutsche Telekom AG, agreed to acquire all the outstanding common stock of SunCom Wireless Holdings Inc (SW), a provider of wireless telecommunications services, for US$27 in cash per share, or a total value of US$2.399bn, including the assumption of US$800m in liabilities.(US)
October 1, 2007... T-Mobile USA Inc, a unit of Deutsche Telekom AG, agreed to acquire all the outstanding common stock of SunCom Wireless Holdings Inc (SW), a provider of wireless telecommunications services, for US$27 in cash per share, or a total value of...

CI Financial Income Fund (CF) said it planned to launch an unsolicited tender offer to acquire all the outstanding common stock of Dundee Wealth Inc (DI), a provider of investment management services, from Dundee Corp, in a stock-swap transaction valued at C$2.361bn (US$2.36bn).(CANADA)
October 1, 2007... CI Financial Income Fund (CF) said it planned to launch an unsolicited tender offer to acquire all the outstanding common stock of Dundee Wealth Inc (DI), a provider of investment management services, from Dundee Corp, in a stock-swap...

An investor group comprising Hochtief Projektentwicklung GmbH, a unit of Hochtief AG, and Redwood Grove International LP, acquired aurelis Real Estate GmbH & Co KG (AU), an Eschborn-based real estate development firm, from German government-owned Deutsche Bahn AG (DB), for 1.64bn [euro] (US$2.231bn).(GERMANY)
October 1, 2007... An investor group comprising Hochtief Projektentwicklung GmbH, a unit of Hochtief AG, and Redwood Grove International LP, acquired aurelis Real Estate GmbH & Co KG (AU), an Eschborn-based real estate development firm, from German...

E.ON AG (EO) of Germany planned to raise its interest to 70.4% from 47.4%, by acquiring a 23% stake, or 14.474bn ordinary shares.(RUSSIA)
October 1, 2007... E.ON AG (EO) of Germany planned to raise its interest to 70.4% from 47.4%, by acquiring a 23% stake, or 14.474bn ordinary shares, in JSC Generation Co Four of the Wholesale Market of Power and Energy (OGK-4), a Moscow-based electric utility, an...

OMX rivalry turns into alliance: in the latest twist to the story of global stock exchange consolidation, rival bidders Borse Dubai and Nasdaq have come to terms over their target--Nordic stock exchange group OMX--agreeing to create a unique US-Europe-Middle East exchange axis.(LEAD FEATURE: FOCUS ON SWEDEN)
October 1, 2007... The rallying cry of "win, win, win" that has heralded previous stock exchange mergers (namely the NYSE tie-up with Euronext) was rung out again by Nasdaq's CEO Bob Greifeld as he joined the executive leaders of OMX and Borse Dubai in Stockholm...

Steady in Sweden: a healthy mid-market, close ties among local banks, and good relationships with unions and politicians have helped Swedish private equity weather the changes.(LEAD FEATURE: FOCUS ON SWEDEN)
October 1, 2007... [ILLUSTRATION OMITTED] Despite being a volatile year for much of Western Europe's private equity managers, Sweden appears to be an oasis of stability. "Of course, interest rates are a bit higher than they were a few years ago, but...

Northern Rock seeks solution; a takeover of the entire bank looks less likely following the Bank of England's interventions.(SECTOR REPORTS: FIG SECTOR REPORTS)
October 1, 2007... [ILLUSTRATION OMITTED] The Bank of England's decision to throw Northern Rock a lifeline to ease its liquidity problems makes it harder for other lenders or financial buyers to step in and save the bank from insolvency, according to people...

Investors hanging up on Alcatel-Lucent: the two telecoms equipment makers were already in a tight spot before getting together. Merging seems to have accentuated their problems, as testified by three profit warnings. Can the two make the connection?(SECTOR REPORTS: FOCUS ON TMT)
October 1, 2007... Technologists are prone of evangelical fervour when it comes to prophesying how their latest killer application will revolutionise such and such a process. They often fall prey to similar sentiments when preaching the benefits of a proposed...

Debt threat in EU energy plan: the European Commission's plan to force energy utilities in member states to separate their gas and electricity transmission from generation and supply operations threatens to hike the future cost of debt for some of the biggest companies in Europe.(SECTOR REPORTS: FOCUS ON UTILITIES)
October 1, 2007... Enforced unbundling was the key element in the package of legislative proposals on "energising Europe" that the European Commission presented on September 19, following a detailed inquiry into why competition in the EU's energy markets had not...

Heads in the clouds: from land contamination to carbon emissions, the number of issues addressed during environmental due diligence is greater than ever--companies ignore them at their peril.(LEGAL & REGULATORY)
October 1, 2007... Pity the director who overlooks environmental issues during deal-making. Whether you're buying or selling a company, failing to appreciate the greener side of governance can prove costly. Industry horror stories include a vendor who didn't...

Microsoft: no small result: investors and dealmakers should understand that despite the hype, dominant firms, particularly in high technology sectors, are likely to have a tougher time in Europe.(LEGAL & REGULATORY: EU ANTITRUST)
October 1, 2007... [ILLUSTRATION OMITTED] Some commentators have taken the view that the Microsoft case is very much limited to its facts and has little consequence for other businesses in the high technology sector or among dominant companies generally. ...

Services sector proves resilient.(MOVING IN THE MID-MARKETS: (US$500M-US$30M))(Company overview)
October 1, 2007... [ILLUSTRATION OMITTED] Over the past few years, providers of services to businesses have been in hot demand. Acquirers have been attracted by their above-average rates of earnings growth and the high visibility of their future revenues,...

Celtic Resources faces dual bidders: Russian steelmaker Severstal may have to battle a mystery suitor if it wants to win the Kazakhstan gold miner.(MOVING IN THE MID-MARKETS)
October 1, 2007... Celtic Resources, a gold mining focused on Kazakhstan, could find itself in the middle of a bidding war after a mystery suitor emerged to challenge Russian steelmaker Severstal. As Acquisitions Monthly went to press, Severstal Resurs,...

BT buys Lynx Technology: mid-market deal takes UK telecoms group further into IT services sector.(MOVING IN THE MID-MARKETS)
October 1, 2007... BT has made a further move into the IT services sector with another small UK deal. The UK telecoms group has acquired Lynx Technology, a Chesterfield-based company specialising in IT consultancy, technology and outsourcing. The target...

Towergate buys Open International: insurance broker buys software provider for US$558m from Montagu.(MOVING IN THE MID-MARKETS)
October 1, 2007... Towergate, the privately owned insurance broker, has agreed its biggest deal since being set up by chairman Peter Cullum 10 years ago, acquiring Open International, a provider of insurance software and services, for 276m [pounds sterling]...

Houlihan Lokey buys Blenheim Advisors.(INSTITUTIONS)
October 1, 2007... Houlihan Lokey, an investment bank, has acquired Blenheim Advisors, a London-based European debt advisory firm, as part of plans to develop its European Investment Banking advisory platform. David Preiser, senior managing director and...

Hawkpoint remains positive: Collins Stewart says corporate finance advisory arm will expand interests to complement parent's business.(INSTITUTIONS)
October 1, 2007... The new owners of corporate finance boutique Hawkpoint remain positive despite the current unsettled market. Collins Stewart said that the division was contributing positively to its traditional stockbroking business, by advising clients there....

Fairfax hires M&A head.
October 1, 2007... Fledgling broker Fairfax IS has hired Omar Bayoumi to head up the fast growing bank's M&A department. Bayoumi worked at Commerzbank, latterly in the US, until leaving in 2004. He will work with Simon Stevens. The two year-old boutique has...

Permira hires former Dutch Finance Minister.
October 1, 2007... Gerrit Zalm, former Deputy Prime Minister and Minister of Finance of the Netherlands, has been hired by European buyout firm Permira as an adviser. Zalm's role will cover advice on business issues, the economy and the socio-political...

Etienne Wong: Mr VAT: law firm Clifford Chance's leading tax expert talks to Keith Boyfield and emphasises the importance of this levy in M&A deals.(INSTITUTIONS: THE AM INTERVIEW)
October 1, 2007... [ILLUSTRATION OMITTED] Mention VAT and the influence it may exert on merger and acquisition activity to London financiers and invariably one hears the name Etienne Wong mentioned. Hong Kong born Wong, aged 43, has spent his whole career at...

Yea broadens 3i for tighter credit market: 3i chief executive Philip Yea's decision to broaden the global private equity firm's asset base could prove highly astute during the current freeze in the buyout markets.(BEHIND THE BUYOUTS: PRIVATE EQUITY COLUMN)
October 1, 2007... Philip Yea isn't the type to say I told you so. Following the departure of chief executive Brian Larcombe in 2004, the former finance director of Diageo and non-exec of HBOS and Manchester United inherited a listed investment group leaking its...

Marwyn retains banks' backing for deals: Marwyn Capital will launch another AIM-listed acquisition vehicle and acquire a further business from one of its existing ones before the year end, as--unlike private-equity rivals--the credit crisis is not impairing its ability to do deals.(BEHIND THE BUYOUTS: PRIVATE EQUITY COLUMN)
October 1, 2007... Marwyn's strategy of using AIM-listed vehicles to effect takeovers in the small to mid-market (5m [pounds]-200m [pounds]) arena is clearly retaining the confidence of banks, which have become much more circumspect in the support they will offer...

Mid-markets buy and build on success.(BEHIND THE BUYOUTS: PRIVATE EQUITY COLUMN)
October 1, 2007... There has been much made of the robustness of the private equity mid-markets at a time when the larger LBO market is effectively closed. Although it is true that we are still seeing smaller deals getting done, according to industry players...

Impact of hedge funds on M&A: with the sub-prime fallout, is this the end of hedge funds as we know them? If hedge funds are no longer buying distressed debt, will more and more turn their attention to distressed companies?(BEHIND THE BUYOUTS)
October 1, 2007... "Far from harkening the demise of hedge funds that invest in distressed debt, the present sub-prime mortgage situation is likely to give rise to a return by these hedge funds to the more typical form of distressed investing that led to their...

Comply or explain.(BEHIND THE BUYOUTS)
October 1, 2007... The onset of the current "credit crunch" does not mean private equity is off the hook when it comes to issues of transparency and disclosure, Sir David Walker warned last week. Speaking at a debate arranged by law firm SJ Berwin and...

BPE makes second fleet management purchase; UK mid-market investor pays 66m [pounds] for Camden Corporate Fleet Service shortly after closing of 2.4bn [euro] third fund.(BEHIND THE BUYOUTS)
October 1, 2007... Barclays Private Equity, a UK-headquartered mid-market private equity house, has backed the 66m [pounds] management buyout of Camden Corporate Fleet Services, its first transaction since closing its latest buyout fund. Camden Corporate...

KKR sells FL Selenia for 1bn [euro]: Italian auto parts manufacturer passes out of private equity hands after seven years.(BEHIND THE BUYOUTS)
October 1, 2007... Kohlberg Kravis Roberts, a US private equity firm, has sold FL Selenia, an auto parts maker it bought less than two years ago. Petronas, a Malaysian oil and gas group acquired the business for 1bn [euro]. The Selenia management team,...

HgCapital makes two buys in Europe: European mid-market investor buys "Masters in Fasteners" Fabory and talc mining group Mondo Minerals.(BEHIND THE BUYOUTS)
October 1, 2007... HgCapital, a European buyout firm, made two mid-market acquisitions in September with the buyouts of Dutch industrial fastener distributor Fabory and Nordic talc mining and processing group Mondo Minerals. AAC Capital Partners, the former...

Candover withdraws Stork bid; private equity group abandons offer for Dutch industrial group as LME consortium refuses to tender shares.(BEHIND THE BUYOUTS)
October 1, 2007... Candover, the London-listed private equity group, has withdrawn its 1.5bn [euro] takeover bid for Dutch industrial group Stork. The move came after the LME consortium, an Icelandic investment group comprising Landsbanki, Eyrir Invest and Marel...

Randstad buys German recruitment firm: UK private equity firm Baird Capital Partners Europe sells Team BS for US$98m.(BEHIND THE BUYOUTS)
October 1, 2007... Baird Capital Partners Europe, a UK mid-market private equity firm, has sold Team BS, a German temporary staffing business, to rival Randstad Holding for 71m [euro] (US$98m). Team BS has 36 outlets and primarily focuses on staffing for the...

M&A capital markets review: Acquisitions Monthly reviews the financing of the leading M&A transactions during September.(ACQUISITION FINANCE)
October 1, 2007... * A 450m [euro] seven year facility backing the buyout of LBC Tank Terminals has closed oversubscribed. The deal backs sponsor Challenger Asset Management's acquisition of the business from One Equity Partners, as well as funding capital...

League tables.
October 1, 2007... ANY EUROPEAN INVOLVEMENT ANNOUNCED FINANCIAL ADVISERS (AD21) 01/01/2007-30/9/2007 Rank value No. of US$m ...

M&A deal data.
October 1, 2007... M&A DEAL DATA This country analysis included acquisitions and buyouts announced between 20 August2007 and 18 September 2007. Benelux Target Bidder Completel Europe NV (NT) 34.0%-- Altice...

Restructuring at the ready: the world has not come to an end, just yet, but restructuring professionals are ready and waiting for when it finally does.(RESTRUCTURING OVERVIEW)(Cover story)
October 1, 2007... [ILLUSTRATION OMITTED] Restructuring has never been a glamorous, primary business--the M&A department sitting upstairs scores that cachet, as well as the backslaps and the higher pay. Even restructuring investors, be they hedge funds or...

Close Brothers European Special Situations Group.(SPONSOR'S PROFILE)
October 1, 2007... The European Special Situations Group is an integral part of Close Brothers Corporate Finance, a leading European, independent corporate finance adviser. The Group advises companies, creditors and other stakeholder groups facing challenging and...

Tackling the next wave of European restructurings: Matthew Prest, Head of the European Special Situations Group at Close Brothers, predicts a busy time ahead for players in the European restructuring sector.(SPONSOR'S ARTICLE: CLOSE BROTHERS EUROPEAN SPECIAL SITUATIONS GROUP)
October 1, 2007... Since 2002 the financial markets and global economy have enjoyed a virtuous cycle of abundant, cheap credit fuelling investment and expenditure, rising asset prices, in turn leading to releveraging and increased demand for credit. There has...

Turnaround specialists stride out: with the credit crisis frustrating financial engineering, acquirers will have to focus on improving the operational aspects of struggling businesses.(OPERATIONAL RESTRUCTURING)
October 1, 2007... [ILLUSTRATION OMITTED] No businesses under pressure are exactly alike, but in the current environment all are having to come to terms with the fact that banks are less willing to lend to riskier companies than they were earlier in the...

White & Case's Financial Restructuring & Insolvency team.(SPONSOR'S PROFILE)
October 1, 2007... [ILLUSTRATION OMITTED] As international business has become more complex and increasingly borderless, so the financing of its activities has followed suit. Consequently, restructurings now require the support of a multi-disciplinary team...

Jurisdiction shopping: companies are keen to exploit the lack of a global restructuring framework to find the best safe harbour to file for bankruptcy protection.(LEGAL RESTRUCTURING)
October 1, 2007... [ILLUSTRATION OMITTED] Only a few months ago, senior bankers at some of the biggest LBO lenders in the world told Acquisitions Monthly that everything in the credit markets was fine and that the US sub-prime mortgage market was nothing to...

Pensions sea change for restructuring: employers contemplating a restructuring need to consider on the one hand the regulator, clearance and the impact of the moral hazard provisions, and on the other the debt on employer legislation.(RESTRUCTURING PENSIONS)
October 1, 2007... [ILLUSTRATION OMITTED] Pensions have not been as high profile on restructurings as on M&A transactions, but they probably will become so. Former Duke Street Capital boss Edmund Truell, who last year set up Pension Corporation with backing...