Acquisitions Monthly articles from October 2008

Acquisitions Monthly archives from October 2008

Going down in history.(EDITORIAL)
October 1, 2008... There was a palpable sense of history in the making over the month of September 2008. These were unprecedented times, when financial news--having already provided a series of shocks earlier in the year--suddenly ran amok and overtook ordinary...

To catch a falling knife.(Restructuring report)
October 1, 2008... [ILLUSTRATION OMITTED] Advisers report a noticeable pick up in restructuring work since summer 2008, aside from the systemic liquidity crisis affecting the banking sector. Already, serious distress is being seen at property-related...

Worldwide M&A declines 25% YTD to US$2.5trn: financial M&A was up 90% over the second quarter of 2008. Estimated financial advisory fees were down 28%.(MARKET INTELLIGENCE: REVIEW OF THE YEAR TO-DATE)(Cover story)
October 1, 2008... As the global financial markets adjusted to a more volatile and uncertain environment, worldwide M&A activity continued to show signs of life as consolidation swept across the financial sector and falling share prices made strategic...

US: Bank of America Corp (BA) agreed to acquire all the outstanding common stock of Merrill Lynch & Co Inc (ML), a provider of investment banking and wealth management advisory services, in a stock-swap transaction valued at US$48.766bn.(September snapshot: Synopses of the largest global M&A deals announced last month)
October 1, 2008... US: Bank of America Corp (BA) agreed to acquire all the outstanding common stock of Merrill Lynch & Co Inc (ML), a provider of investment banking and wealth management advisory services, in a stock-swap transaction valued at US$48.766bn. BA...

UK: Lloyds TSB Group PLC (LT) agreed to merge with HBOS PLC (HB), an Edinburgh-based bank, in a stock-swap transaction valued at a sweetened 12.541bn [pounds sterling] (US$22.99bn) through a scheme of arrangement.(September snapshot: Synopses of the largest global M&A deals announced last month)
October 1, 2008... UK: Lloyds TSB Group PLC (LT) agreed to merge with HBOS PLC (HB), an Edinburgh-based bank, in a stock-swap transaction valued at a sweetened 12.541bn [pounds sterling] (US$22.99bn) through a scheme of arrangement. LT offered 0.833 new ordinary...

UK: Lake Acquisitions Ltd (LA), formed by French-state owned Electricite de FranceSA (EDF), for the purpose of making an acquisition, agreed to launch a tender offer to acquire the 73.47% interest, or 1.179bn ordinary shares.(September snapshot: Synopses of the largest global M&A deals announced last month)
October 1, 2008... UK: Lake Acquisitions Ltd (LA), formed by French-state owned Electricite de FranceSA (EDF), for the purpose of making an acquisition, agreed to launch a tender offer to acquire the 73.47% interest, or 1.179bn ordinary shares, it did not already...

US: Armchair Merger Sub Inc, a special purpose acquisition vehicle and a wholly-owned unit of Altria Group Inc (AG), definitively agreed to acquire all the outstanding common stock of USTInc (UI), a manufacturer and wholesaler of tobacco and wine products, for US$69.5 in cash per share, or a total of US$11.685bn, including the assumption of an estimated US$1.3bn in liabilities.(September snapshot: Synopses of the largest global M&A deals announced last month)
October 1, 2008... US: Armchair Merger Sub Inc, a special purpose acquisition vehicle and a wholly-owned unit of Altria Group Inc (AG), definitively agreed to acquire all the outstanding common stock of USTInc (UI), a manufacturer and wholesaler of tobacco and...

Announced deals worldwide: target region transaction volume year-to-date.(September snapshot: Synopses of the largest global M&A deals announced last month)
October 1, 2008... ANNOUNCED DEALS WORLDWIDE: TARGET REGION TRANSACTION VOLUME YEAR-TO-DATE Americas US$109,9506.39m 50.3% Europe US$677,840.38m 31.1% Central Asia/Asia-Pacific 14.6% US$318,660.95m Japan US$54,004.1m ...

Announced deals worldwide: target industry transaction volume year-to-date.(September snapshot: Synopses of the largest global M&A deals announced last month)
October 1, 2008... ANNOUNCED DEALS WORLDWIDE: TARGET INDUSTRY TRANSACTION VOLUME YEAR-TO-DATE Energy and power US$399,827.16 18.3% Financials US$366,189.94 16.8% Materials US$265,309.83 12.1% Consumer...

US: Mitsubishi UFJ Financial Group Inc has agreed to acquire 117m common shares and convertible preferred shares equivalent to 193.464m common shares, or a 23.84% stake, in Morgan Stanley (MS), a provider of investment banking services, valued at US$9bn, in a privately negotiated transaction.(September snapshot: Synopses of the largest global M&A deals announced last month)
October 1, 2008... US: Mitsubishi UFJ Financial Group Inc has agreed to acquire 117m common shares and convertible preferred shares equivalent to 193.464m common shares, or a 23.84% stake, in Morgan Stanley (MS), a provider of investment banking services, valued...

Australia: ConocoPhillips Co agreed to acquire a 50% interest in the coal seam gas assets (CS) of Origin Energy Ltd (OE), an oil exploration, distribution and power services provider, for A$9.735bn (US$7.938bn).(September snapshot: Synopses of the largest global M&A deals announced last month)
October 1, 2008... AUSTRALIA: ConocoPhillips Co agreed to acquire a 50% interest in the coal seam gas assets (CS) of Origin Energy Ltd (OE), an oil exploration, distribution and power services provider, for A$9.735bn (US$7.938bn). On completion, CS was to be...

Belgium: the Belgian government agreed to acquire a 49% stake, or 1.152bn ordinary shares, in Fortis Bank NV/SA (FB), a Brussels-based bank, insurance company and provider of asset management services, for 4.7bn [euro] (US$6.827bn) in a privately-negotiated transaction.(September snapshot: Synopses of the largest global M&A deals announced last month)
October 1, 2008... BELGIUM: The Belgian government agreed to acquire a 49% stake, or 1.152bn ordinary shares, in Fortis Bank NV/SA (FB), a Brussels-based bank, insurance company and provider of asset management services, for 4.7bn [euro] (US$6.827bn) in a...

UK: Centrica PLC signed a memorandum of understanding to acquire a 25% stake, or 401.317m ordinary shares, in British Energy Group PLC (BE), an East Kilbride-based electric utility company and a unit of French-state owned Electricite de France's Lake Acquisitions Ltd (LA) subsidiary, for 7.74 [pounds sterling] (US$14.327), or a total value of 3.106bn [pounds sterling] ($5.735bn), in a privately negotiated transaction.(September snapshot: Synopses of the largest global M&A deals announced last month)
October 1, 2008... UK: Centrica PLC signed a memorandum of understanding to acquire a 25% stake, or 401.317m ordinary shares, in British Energy Group PLC (BE), an East Kilbride-based electric utility company and a unit of French-state owned Electricite de...

Belgium: the Belgian government (BG) it planned to acquire an undisclosed minority stake in Brussels-based Dexia SA (DS), through a capital increase worth 3bn [euro] (US$4.327bn).(September snapshot: Synopses of the largest global M&A deals announced last month)
October 1, 2008... BELGIUM: The Belgian government (BG) it planned to acquire an undisclosed minority stake in Brussels-based Dexia SA (DS), through a capital increase worth 3bn [euro] (US$4.327bn). BG, the Three Regions (3R) and the three institutional...

Germany: Deutsche Bank AG (DB) agreed to acquire a 29.75% stake, or 48.79m ordinary shares, in Bonn-based Deutsche Postbank AG (DP), from Deutsche Post AG (DT) for 57.25 [euro] (US$81.402) in cash per share, or a total value of 2.793bn [euro] (US$3.972bn).(September snapshot: Synopses of the largest global M&A deals announced last month)
October 1, 2008... GERMANY: Deutsche Bank AG (DB) agreed to acquire a 29.75% stake, or 48.79m ordinary shares, in Bonn-based Deutsche Postbank AG (DP), from Deutsche Post AG (DT) for 57.25 [euro] (US$81.402) in cash per share, or a total value of 2.793bn [euro]...

Luxembourg: the Luxembourg government agreed to acquire a 49% stake in Luxembourg-based Fortis Banque Luxembourg SA from Fortis Bank NV/SA (FB) for 2.5bn [euro] (US$3.632bn) through making a mandatory convertible loan.(September snapshot: Synopses of the largest global M&A deals announced last month)
October 1, 2008... LUXEMBOURG: The Luxembourg government agreed to acquire a 49% stake in Luxembourg-based Fortis Banque Luxembourg SA from Fortis Bank NV/SA (FB) for 2.5bn [euro] (US$3.632bn) through making a mandatory convertible loan. Concurrently, the Belgian...

Switzerland: BASF of Germany agreed to launch a tender offer to acquire the entire ordinary share capital of Ciba Specialty Chemicals Holding Inc, a Basel-based manufacturer, wholesaler and distributor of chemicals, for SFr50 (31.194 [euro], US$44.659) in cash per share, or a total value of SFr3.453bn (2.154bn [euro], US$3.084bn).(September snapshot: Synopses of the largest global M&A deals announced last month)
October 1, 2008... SWITZERLAND: BASF of Germany agreed to launch a tender offer to acquire the entire ordinary share capital of Ciba Specialty Chemicals Holding Inc, a Basel-based manufacturer, wholesaler and distributor of chemicals, for SFr50 (31.194 [euro],...

Top ten european involvement announced deals in 2008 YTD.(September snapshot: Synopses of the largest global M&A deals announced last month)
October 1, 2008... TOP TEN EUROPEAN INVOLVEMENT ANNOUNCED DEALS IN 2008 YTD Rank date Status Target 18/03/2008 Completed Philip Morris Intl Inc (SZ) 11/06/2008 Pending Anheuser-Busch CosInc (US) 21/07/2008 Intended Genentech Inc...

In intensive care: a remarkable facet of this crisis is that huge swathes of the US financial sector have effectively been nationalised. Banking now faces significant consolidation and shrinkage.(SECTOR REPORTS: SPECIAL REPORT ON US FINANCIAL SERVICES)
October 1, 2008... The current model of the free market is broken. Financial markets have decoupled from the moorings of gravity and common sense after years of inadequate regulation, cheap money, poor lending decisions, investor carelessness and sheer hubris....

British banking landscape changes: the forced sale of HBOS to Lloyds TSB and the nationalisation of Bradford & Bingley marks the end of an era for British banks, leaving five major lenders in the FTSE 100 to dominate a playing field predicted to be more highly regulated than recently.(FOCUS ON SECTOR REPORTS: UK BANKING)
October 1, 2008... When Hank Paulson made his momentous decision not to bail out Lehman Brothers, few knew what the exact consequences would be. In the short term it meant that no buyer, such as Bank of America or a rival commercial lender, was willing to come...

German banks pair up: two long-awaited major deals in Germany's banking sector see the private banking sector consolidated. Unlike banking deals elsewhere, these were not forced by the credit crunch.(SECTOR REPORTS: FOCUS ON GERMAN BANKING)
October 1, 2008... September 2008 was a historic month for the German banking sector. While it will most likely be remembered for the demise of the Wall Street investment banks, across the Atlantic in Germany long-awaited consolidation of the banking market...

EDF alone can take long view on BE: there were predictable expressions of satisfaction from all parties involved in the agreement to sell UK nuclear generator British Energy to Electricite de France for 12.5bn [pounds sterling]. A closer look at all the figures, however, reveals why it was only the giant state-owned French utility that was prepared to bid for the company.(SECTOR REPORTS: FOCUS ON UTILITIES BRITISH ENERGY)
October 1, 2008... The British government pocketed 4bn [pounds sterling], the other leading shareholders secured slightly improved terms from EDF's original offer, and the French company cemented a lead role in the 20bn [pounds sterling]-plus nuclear new-build...

Old Mutual's new boss: the South African financial giant has appointed Julian Roberts to succeed Jim Sutcliffe as chief executive. The first foreigner to occupy the position spoke to Christopher Spink about his past two years integrating Skandia into the group and his plans for the future.(INSTITUTIONS)
October 1, 2008... Rarely can a chief executive of a FTSE 100 company have suffered such a baptism of fire as Julian Roberts has endured during his first two weeks as chief executive of Old Mutual. Roberts was shuffled into the top position at the far-flung...

Lower mid-market vendors more realistic: sales of smaller private companies have yet to tail off dramatically as tax changes and the economic outlook force vendors to accept lower valuations for their businesses.(MOVING IN THE MID-MARKETS)
October 1, 2008... (US$500M--US$30M) Vendors of smaller private companies in the UK are taking a more realistic view on how much their businesses might be worth to new owners. This has helped to maintain a steady flow of deals, according to Chris Lowry,...

Leaning on support services: deal volumes in support services have not let up despite the liquidity crisis. These are businesses with resilient characteristics, and diverse end-customers that continue to be bought and sold. Activity in areas such as oil and gas services has even intensified.(MOVING IN THE MID-MARKETS: SUPPORT SERVICES)(Company overview)
October 1, 2008... [ILLUSTRATION OMITTED] The fall in M&A volumes has dented the support services sector, but compared with some other spaces, it still has wind in its sails. According to data from a September 2008 survey on business services activity in...

M&A integration of business support services--the hard or soft option? Deals in different sub-sectors within the business support services space require different integration strategies, writes Carlos Keener, founder of Beyond the Deal.(MOVING IN THE MID-MARKETS: SUPPORT SERVICES)
October 1, 2008... In 'hard asset' service businesses such as facilities management, transportation/logistics services, or business process outsourcing, acquisition benefits are likely to depend on the retention of long-term contracts and the extraction of...

Making money transfers pay: Earthport may seem a dull commodity-type business given its focus on global payment services but the true potential of this AIM-listed UK company suggests it might attract takeover interest from private equity.(MOVING IN THE MID-MARKETS)
October 1, 2008... Moving money around the globe for banks and corporate customers might sound like a monotonous and thin-margin business. However, a small UK payment-infrastructure comany has managed to turn it into an exciting story complete with good profit...

Close Brothers buys Spanish Associate: Close Brothers has taken full control of its successful Spanish Associate Atlas Capital.(MOVING IN THE MID-MARKETS)
October 1, 2008... The UK financial services group, which was the subject of an unwanted approach from Cenkos and Landsbanki at the end of last year, has spent an undisclosed sum on buying the 55% stake it did not already own in Atlas. Atlas worked on five...

Centrica develops gas storage strategy.(MOVING IN THE MID-MARKETS)
October 1, 2008... Centrica has bought a gas storage facility in Yorkshire for 70m [pounds sterling] as part of its efforts to increase investment in such sites, as North Sea production declines and the UK needs to rely more on imports. The British Gas owner...

Holland & Barratt buys key competitor.(MOVING IN THE MID-MARKETS)
October 1, 2008... UK health food retailer Holland & Barratt has snapped up its key competitor in the UK, Julian Graves, from troubled Icelandic investor Baugur in a deal valuing the 350-strong chain at 13.8m [pounds sterling] (US$25m). Baugur may make...

RTL goes Greek.(MOVING IN THE MID-MARKETS)
October 1, 2008... Europe's largest commercial TV broadcaster, RTL, has acquired a foothold in Greece with the acquisition of a 66.6% stake in the country's number three broadcaster, Alpha Media Group. Through Alpha, RTL has gained access to Greece's growing...

Vinci buys Taylor Woodrow.(MOVING IN THE MID-MARKETS)
October 1, 2008... French building group Vinci has scooped up the UK business of Taylor Woodrow Construction from Taylor Wimpey for an agreed 74m [pounds sterling] in cash. Vinci hopes the deal will provide it with additional annual revenues of 1.4bn [pounds...

Moodys buys Fermat.(MOVING IN THE MID-MARKETS)
October 1, 2008... Credit rating agency, Moody's Corporation, has bought for 132.5m [euro] Fermat International, a Brussels-based risk and performance management software provider to the banking sector. Moody's will pay an additional sum of up to 25m [euro]...

RWE Innogy enters unbuilt UK biomass market.(MOVING IN THE MID-MARKETS)
October 1, 2008... The past month has proved active for overseas acquirers wishing to enter the UK renewable energy sector. At the top end the proposed acquisition of British Energy by France's EDF and domestic gas distributor Centrica has dominated the...

Private equity to stay private: European Parliament approval of reports on private equity poses significantly less threat to the industry than they could have done. If it keeps engaging, private equity will likely be allowed to stick to its chosen path of self-regulation.(BEHIND THE BUYOUTS: PRIVATE EQUITY COLUMN)
October 1, 2008... [ILLUSTRATION OMITTED] European MEPs voted in favour of more disclosure from private equity firms and hedge funds today in a sign that the mistrust of the alternative asset class from some politicians refuses to go away. The reports...

Time for tech: now is a good time for technology investing, says Investcorp's Hazem Ben-Gacem. Having launched his team at the start of the dotcom bubble and survived, he should know.(BEHIND THE BUYOUTS)
October 1, 2008... "The investment environment is truly fantastic today." These are not words you expect to hear from a private equity senior executive--certainly not one that deploys capital in the European technology sector. Following ! a boom in technology...

Financial turmoil casts doubt on McCarthy & Stone's debt deal: McCarthy & Stone's attempts to restructure its 800m [pounds sterling] of debt have been complicated by the current market conditions.(BEHIND THE BUYOUTS)
October 1, 2008... McCarthy & Stone, the retirement house developer, taken private for 1.1bn [pounds sterling] two years ago, was expected to reach agreement with its creditors this month but recent events seem to have put paid to that. Shareholders in the...

Two banks become one: mid-market firms circle BOSIF portfolio amid market talk that it will sell assets.(BEHIND THE BUYOUTS)
October 1, 2008... The combination of Lloyds TSB and HBOS will see two of the UK's most prolific private equity firms become part of the same organisation. What does this mean for LDC and Bank of Scotland Integrated Finance (BOSIF), and moreover what does it mean...

Bain and Hellman secure Neuberger: private equity houses Bain Capital and Hellman & Friedman acquire Neuberger Berman from Lehman for US$2.15bn.(BEHIND THE BUYOUTS)
October 1, 2008... Bain Capital and Hellman & Friedman finally agreed to buy Neuberger Berman, the 69-year-old asset management firm, and the fixed income and certain alternative asset management businesses of Lehman Brothers' investment management division for...

European Capital weighs in with Averysale.(BEHIND THE BUYOUTS)
October 1, 2008... [ILLUSTRATION OMITTED] European Capital, a provider of equity and mezzanine financing for European mid-market buyouts, has realised a 53% annual equity rate of return on the sale of its Avery Weigh-Tronix portfolio company to Illinois...

Baird backs Choices bolt-on.(BEHIND THE BUYOUTS)
October 1, 2008... Baird Capital Partners Europe, the UK mid-market buyout arm of Baird, has backed portfolio company Choices Holding in its acquisition of Glasgow-based care group Domiciliary Care. No price was given for the bolt-on acquisition of Choices...

HgCapital defies market gloom.(BEHIND THE BUYOUTS)
October 1, 2008... HgCapital, a pan-European private equity firm, has defied the gloom in the M&A markets and carried out two deals in September: a co-investment in a Swiss fastenings business; and the sale of a German software business. In mid-September,...

CBPE sells BWA.(BEHIND THE BUYOUTS)
October 1, 2008... UK mid-market buyout firm Close Brothers Private Equity (CBPE) has sold its chemicals portfolio company BWA Water Additives (BWA) to United International Bank (UIB), an investment bank based in Bahrain. The value of the deal was not...

Apax/Saban up stakes in Israel's Bezeq.(BEHIND THE BUYOUTS)
October 1, 2008... A private equity consortium led by Apax Partners has increased its stake in Israeli telecom group Bezeq Israel Telecom for about Sh1.08bn shekels (US$312m). Apax Partners, Saban Capital Group, the Los Angeles-based investment vehicle of...

Xella.(M&A capital markets round-up)
October 1, 2008... A bank meeting was held for the 970m [euro] all-senior facilities backing the buyout of Xella, after what bookrunners said was a successful early-bird phase. Debt backing the acquisition of Xella by PAI partners and Goldman Sachs Capital...

Informa PLC.(M&A capital markets round-up)
October 1, 2008... A private equity consortium of Blackstone, Carlyle Group and Providence Equity Partners has withdrawn its bid for UK media company Informa PLC, which earlier this month rejected its takeover offer. A source close to the financing said a...

Foodvest.(M&A capital markets round-up)
October 1, 2008... Foodvest has launched syndication of facilities backing Lion Capital's buyout of its business, through global coordinator JPMorgan and Lloyds TSB, Rabobank, RBS and SG, each joint physical bookrunners across senior and debt, and Nordea as joint...

Advang Holding.(M&A capital markets round-up)
October 1, 2008... Bank of Ireland, Barclays and ING are close to wrapping up syndication of the 190m [euro] debt package backing Lion Capital's buyout of Benelux region frozen snacks business Advang Holding. Debt is split into a 55m [euro] seven-year term...

Bodycote Testing Group.(M&A capital markets round-up)
October 1, 2008... Barclays Capital and RBS have now been joined by BNP Paribas and RBC as bookrunners and mandated lead arranger on the 255m [pounds sterling] of debt facilities backing the buyout of Bodycote Testing Group by Clayton, Dubilier & Rice. Debt...

CEPL.(M&A capital markets round-up)
October 1, 2008... Calyon, ING, RBS and Societe Generale have wrapped up the 200m [euro] senior debt package backing Arcapita's acquisition of French warehousing and logistics business CEPL. The deal closed without a general syndication phase after a small number...

Converteam.(M&A capital markets round-up)
October 1, 2008... General syndication of 900m [euro] of facilities backing the buyout of French engineering group Converteam by LBO France has launched, through HSBC, Lehman Brothers, Natixis, RBS and SG. General syndication follows a senior joint lead arranger...

Craegmoor.(M&A capital markets round-up)
October 1, 2008... Barclays, Calyon and RBC have launched syndication of 222m [pounds sterling] of debt facilities backing Advent's acquisition of care home operator Craegmoor. Debt is split into a 37.75m [pounds sterling] seven-year term loan A paying 275bp...

Domestic & General.(M&A capital markets round-up)
October 1, 2008... Mandated lead arranger Dresdner Kleinwort's general syndication of 334m [pounds sterling] of senior facilities for Domestic & General (D&G) has launched. Subordinated tranches have been pre-placed. Advent International completed the acquisition...

Nord Anglia.(M&A capital markets round-up)
October 1, 2008... Mandated lead arranger Credit Suisse has launched a US$231.3m leveraged buyout of London-listed educational services provider Nord Anglia by Baring Private Equity Partners in what will be the first LBO from the education sector from Asia. ...

Photonis.(M&A capital markets round-up)
October 1, 2008... Physical bookrunner and mandated lead arranger ING has been joined by bookrnnners and mandated lead arrangers IKB, Barclays and GE and joint lead arrangers LCL and SG after a senior phase syndication of debt backing Astorg's buyout of medical...

Reutgers Chemicals.(M&A capital markets round-up)
October 1, 2008... Mediobanca as mandated lead arranger and bookrunner has closed the 295m [euro] all senior debt package supporting Triton's buyout of Reutgers Chemicals from Evonik Industries. Ahead of general syndication Landesbank Baden-Wuerttemberg...

TMF Group.(M&A capital markets round-up)
October 1, 2008... Mandated lead arrangers and bookrunnners ING and UBS have launched syndication of the 445m [euro] debt package supporting Doughty Hanson's secondary buyout of TMF Group. Prior to launch, the Bank of Ireland joined as a mandated lead arranger....

M&A deal data.
October 1, 2008... This country analysis included acquisitions and buyouts announced between 23 August 2008 and 24 September 2008. Benelux Target Bidder DNC De Nederlanden Cie NV Adecco SA Switzerland--Pvd...

To catch a falling knife.(EDITORIAL)
October 1, 2008... The sequence of events in mid-September 2008, when Wall Street appeared to turn the clock back to 1929, went well beyond restructuring. This particular episode was a more widespread problem: one of systemic risk, where the teetering edifice of...

Is this restructuring? Advisers have been dealing with systemic break-down, stress, distress and even some restructuring.(RESTRUCTURING OVERVIEW)
October 1, 2008... [ILLUSTRATION OMITTED] This may seem like a stupid question to ask, but what is restructuring? The first answer is that the melt-down of Street is not restructuring in the typical sense. It is a systemic situation, even though some may...

Restructuring by other means.(RESTRUCTURING BANKS)
October 1, 2008... [ILLUSTRATION OMITTED] September 2008 marked an unprecedented financial crisis that led to an unparalleled US$1trn bail-out of the global financial system and the rescue of AIG, Fannie Mae and Freddie Mac by the US government. Lehman...

The Close Brothers European Special Situation group.(SPONSOR'S PROFILE)
October 1, 2008... 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...

What happened when the tide went out? Matthew Prest, managing director and head of the Close Brothers European Special Situations Group predicts that 2009 will be the year when restructuring activity finally takes off.(SPONSOR'S ARTICLE: CLOSE BROTHERS)
October 1, 2008... The tide went out in summer 2007 and, since then, we have all seen who was not wearing their trunks. Worse still, someone has run off with all the towels. The conditions which encouraged and rewarded high leverage levels and small equity bases...

Property problems prompt restructuring: as property prices have declined and generous loans have dried up, many companies relying on real estate for financing have been looking nervously at covenants that are close to being breached.(RESTRUCTURING PROPERTY)
October 1, 2008... The day after Lehman Brothers filed US Treasury Secretary Hank Paulson said: "The root of the problem lies in this housing correction. And until we have more stability in housing prices, we're going to continue to have turmoil in the financial...

The beginning of interesting times: Stephen Phillips, a partner with White & Case, looks at the restructuring of European LBOs.(SPONSOR'S ARTICLE: WHITE & CASE)
October 1, 2008... The UK's Chancellor of the Exchequer recently stated that we face the most challenging economic conditions for 60 years. Quite why 1948 is the starting point for the comparison is another debate, but we are writing the day after America's...

Restructurers eye retailers: the storm clouds are gathering but they have still not yet broken over retail. A lack of liquidity in the market is likely to lead to more vendor-assisted deals, as in the case of shoe retailer Faith.(RESTRUCTURING RETAIL)
October 1, 2008... The High Street has nowhere to shelter from the declining purchasing power of the consumer. While there remain healthy pockets within retail, the majority of retailers are finding themselves under increasing pressure, but so far there has been...

Crisis-hit airlines face further turbulence: airlines across the world are flying into the worst financial storm in their history, as record fuel prices continue to devastate the economics of the business and they find it increasingly hard to access credit of any kind. A significant re-configuration of the global industry seems inevitable.(RESTRUCTURING AIRLINES)(Industry overview)
October 1, 2008... [ILLUSTRATION OMITTED] The fallout will see more strategic mergers among the leading players, drastic restructurings at individual companies, and a significant number of airlines--possibly as many as 30% of those still in operation --going...

Property crisis boosts Spanish restructurings.(RESTRUCTURING SPAIN)
October 1, 2008... [ILLUSTRATION OMITTED] Corporate restructurings are gathering pace in Spain as a string of troubled property firms refinance their debt or go bankrupt to survive the worse economic downturn in a decade. Spain's property sector has...

Patience in distress: in distressed debt markets, one company's pain is another's gain. But while the financial crisis has continued and distressed investors have amassed a wall of money, there has been very little of the latter. So far.(RESTRUCTURING DISTRESSED DEBT)
October 1, 2008... One year ago, as climate change became a hot topic in the credit markets, distressed investment opportunities in 2008 were being strongly talked up, both in terms of M&A transactions as well as debt-for-control deals, where a position is built...

Expect Q4 2007 to be peak in M&A: 2007 saw a record US$4trn of completed M&A activity, easily surpassing 2006's and 2000's US$3.2trn. Q4 2007 was the biggest ever quarter for M&A (US$1.25trn) and in all, 16,269 deals were completed in 2007. Contrary to expectations, there was a strong finish to the year: 7 out of the 13 deals worth more than US$25bn were completed post-September.(FOREWORD)
October 1, 2008... Against the odds, 2007 proved to be the biggest year ever for global M&A by value, with deals worth US$4,025bn being completed, easily surpassing the 2006 and 2000 records. This new peak was created by a strong finish to the year. At...

Investment banking: a flawed model? The collapse of Lehman Brothers and hurried sale of Merrill Lynch to Bank of America have exposed major flaws in the business models of bulge bracket investment banks.(FOREWORD)
October 1, 2008... September 14 2008 might well turn out to be investment banking's day of reckoning. The end of independence for two so-called "bulge bracket" banks suggests that either the bulge is shrinking or the bracket is not as secure as it was a decade...

Cross-border interference: deal regulators compare notes more frequently than before but advisers expect increased turbulence on contentious proposed transactions over the coming months.(REGULATORY FEATURE)
October 1, 2008... [ILLUSTRATION OMITTED] Getting large cross-border deals past regulators has never been easy. More than 100 regulatory bodies can look at proposed transactions and tile effects they might have on competition in particular markets. And all...

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.(COUNTRY REPORT: FRANCE)
October 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...

Deals will get done: private equity firms are looking at innovative ways of getting round the lack of willingness to lend by the mainstream banks.(LEVERAGED BUYOUTS)
October 1, 2008... If you split the market between deals of up to 200m [pounds sterling] and those beyond, the number of bigger deals has cratered because banks don't want to underwrite debt and mezzanine packages. A year ago, Barclays, RBS or other lenders...

Indians go global: Indian companies are gaining ever-greater confidence to flex their substantial financial muscle on the world stage.(COUNTRY REPORT: INDIA)(Company overview)
October 1, 2008... [ILLUSTRATION OMITTED] The Indian economy has passed a critical stage over the past two years, firmly establishing itself on an equal footing with its former masters in the West. No longer is the sub-continent considered merely a...

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 REPORT: PHARMACEUTICALS)(Company overview)
October 1, 2008... [ILLUSTRATION OMITTED] 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...

International M&A and buyouts directory 2009.(Argentina-France)(Directory)
October 1, 2008... Argentina ADVISER Columbus Merchant Banking AV. Coronel Diaz 2857 C1425DRB, Buenos Aires Argentina Tel: +54 11 4802 4700 Fax: +54 11 4802 0903 Website: www.columbusmb.com Global M&A is a partnership of...

International M&A and buyouts directory 2009.(Peru-Ukraine)(Directory)
October 1, 2008... Peru ADVISER Macroconsult General Borgono 1156 Lima 18 Peru Tel: +511 702 2580 Fax: +511 221 2696 Website: www.macroconsult.com Global M&A is a partnership of many of the world's most successful...

International M&A and buyouts directory 2009.(United Kingdom)(Directory)
October 1, 2008... United Kingdom ADVISER BNP Paribas 10 Harewood Avenue London NW1 6AA United Kingdom Tel: +44 (0) 20 7595 3527 Fax: +44 (0) 20 7595 6767 Website: www.bnpparibas.com Contact: Paul Staples Title: Head...

International M&A and buyouts directory 2009.(USA-Vietnam)(Directory)(Company overview)
October 1, 2008... ADVISER Butler & Company, LLC. 10 South Wacker Drive Suite 2050, Chicago Illinois 60606, USA Tel: +1 312 559 9055 Fax: +1 312 559 9056 Website: www.billowbutler.com Billow Butler & Company aims to provide...

League tables.
October 1, 2008... ANY EUROPEAN INVOLVEMENT ANNOUNCED (AD21) Rank value Mrkt No of Financial adviser (US$m) share deals 1 Goldman Sachs & Co 312,191.1 ...