Any M&A bankers out there who thought the takeover bandwagon might be rolling once more? Go back to bed.
Friday saw two notable deals collapse.
First, Punch Taverns rubbed some salt into the gaping wounds at Mitchells & Butlers, withdrawing the takeover terms put forward in early February. The pub operators has had a rethink, done some due diligence and decided the deal is not in the best interests of its shareholders.
But it also said it has been approached by other, unnamed parties who might be interested in a joint bid for M&B - third parties that are assumed to include one or more of the private equity firms circling M&B over recent months. Apax, Cinven and Terra Firma are all thought to have had a look, but only Blackstone and CVC are reported to have shown any real interest.
Tim Clarke, M&B chief executive, had set Friday as a deadline for those who might want to improve on Punch’s terms, which involved a 50/50 share swap and £175m in cash.
Shares in M&B fell 3 per cent on the news, while Punch soared 10 per cent.
Next up, a terse statement from property outsourcing group Mapeley said offer talks announced a month ago have now ceased. So a plan by US hedge fund Fortress Investments to take Mapeley private has evidently been shelved.
Yet this is probably an amicable development for all concerned. Fortress helped form Mapeley nine years ago and continued to hold 50 per cent of the stock after the firm was floated in 2005. The prospect of a full Fortress takeover came as Mapeley faced funding problems over £257m of debt, due at the end of April.
That facility has now been refinanced, so it’s business as usual. Sort of - shares in Mapeley slumped 13 per cent in early trade.
M&A activity during the first quarter has fallen to a four year low, according to the latest figures from Thomson Financial. There’s no sign yet that Q2 will be any better.
Related links:
In-Depth: M&A - FT.com
