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’Beijing appeals over 3Com deal
Beijing has appealed to Washington for “fair and legal” treatment of a Chinese investment in US communications equipment company 3Com and dismissed complaints by US politicians as groundless after the deal fell foul of national security concerns.
China fear scuppers $2bn 3Com deal
Bain Capital and its minority Chinese partner, Huawei Technologies, have shelved their $2.2bn deal to acquire 3Com, a US computer networking company, saying the CFIUS, a key US committee which vets foreign investments in sensitive sectors,
Setback for monoline rescue
Leading private equity firms are unlikely to participate in any recapitalisation of Ambac and MBIA, increasing the pressure on banks to come up with a rescue package for the troubled US bond insurers. The development comes as groups of banks focus on rescue plans for individual bond insurers,
Clear Channel buy-out doubts grow
The $19.5bn leveraged buy-out of Clear Channel Communications, the US radio and outdoor advertising group, could be the next victim of the storm in the deal world. Scepticism that Thomas H. Lee and Bain Capital will go through with their purchase on the original terms has been fed by the falling share prices of comparable companies.
Buy-out groups line up for Turkish retailer
Migros Turk, Turkey’s biggest supermarket group, is this week set to receive takeover bids worth about $4bn from Carrefour of France, Agrokor of Croatia and four private equity firms. Turkey’s Koc group is selling a 51% stake in Migros in what would be one of the biggest acquisitions of a listed Turkish company.
US extends China-3Com probe
A US probe into a proposed $2.2bn buy-out of 3Com, a network equipment supplier, by a consortium involving a Chinese company is entering a decisive second phase. The Committee on Foreign Investment in the US,
Bain rebuffs security concerns
Bain Capital has hit back at claims that its proposed takeover of 3Com, a US network equipment maker, alongside a Chinese company will endanger national security. The US private equity firm last week announced it had teamed up with Huawei Technologies,
Weekend catch-up: 3Com, Wyser-Pratte, Merrill
In case you missed it:
China faces scrutiny over 3Com deal
The US is expected to scrutinise on national security grounds Friday’s joint acquisition of 3Com, the US networking group, by Huawei Technologies,
Home Depot’s revised deal nets $7.9bn cash
Home Depot, the second largest US retailer, said on Tuesday that it now expects to receive $7.9bn in cash from the renegotiated sale of its HD Supply wholesale unit to private equity investors – a significant come-down from the $10.3bn price tag agreed in June.
Home Depot may accept $1.2bn less in sale
Home Depot is close to accepting about $1.2bn less for the sale of its wholesale distribution business to three private equity firms, reports the Wall Street Journal. But there were still substantial doubts about whether the deal would close before Thursday night’s deadline,
Home Depot supply deal in doubt
Home Depot’s plans to sell its wholesale supply division to a group of private equity buyers hung in the balance on Wednesday night amid doubts over the willingness of three investment banks to fund the deal,
Taiwan’s Cosmos in talks over stake
Struggling Taiwanese banks at first glance may not seem to be Asia’s most attractive buy, but Cosmos Bank, Taiwan’s largest issuer of cash cards in which US conglomerate GE holds a 10 per cent stake, is now in talks with three bidders over the sale of a controlling stake worth about T$22bn,
Carlyle in $6.3bn deal for Manor Care
Carlyle, the US private equity group, on Monday announced a $6.3bn deal to take over Manor Care, one of the largest US nursing home operators. If successful, the acquisition will further extend the reach of private equity into the healthcare industry.
Activist investors strike again at Ceridian
William Ackman of Pershing Square Capital Management, the largest shareholder of Ceridian Corp, is gearing up for another corporate battle, according to the Wall Street Journal. Mr Ackman is expected to say he opposes the $5.3bn sale of the US human-resources and transaction-outsourcing company and that he has hired bankers to find a higher bidder for the company,
Coles shares slide as KKR, CVC quit consortium
KKR and CVC Asia Pacific on Monday withdrew from a private equity consortium set to bid for Coles, Australia’s second largest retailer, as it emerged that Woolworths, the company’s main rival, is in talks over joining a possible A$20bn-plus ($16.4bn) buy-out.
Buy-out groups circle Cadbury drinks arm
Blackstone, KKR and Lion Capital are understood to have formed a consortium and instructed advisers to prepare a fully financed offer ahead of a proposed separation of Cadbury’s drinks and confectionery divisions this year,
Bids for Merck’s generics arm top €4bn
Aggressive competition for the generic drugs arm of Merck of Germany pushed offers beyond €4bn ($5.5bn) at the close of a revised round of bids on Monday. Four rivals – Actavis of Iceland, Teva of Israel,
Clear Channel to sell 56 TV stations
Providence Equity Partners, the US buy-out group, agreed on Friday to buy 56 television stations from Clear Channel Communications for $1.2bn, taking advantage of the radio station group’s efforts to streamline its business ahead of a sale.
Private equity blinks first in Clear Channel bid
Clear Channel Communications, the largest US radio station chain, on Wednesday accepted a higher bid from a consortium of buy-out firms in a move that some say could salvage the largest private equity takeover in the media industry from collapse.
Orica rejects A$9.95bn buyout offer
Orica the world’s largest explosives maker, rejected a A$9.95bn ($8.3bn) takeover bid led by Bain Capital and Blackstone as too low, reports Bloomberg. The US buyout firms offered A$32 cash a share, 15 per cent more than Tuesday’s close,
Is the buyout wagon headed for South Africa?
There was a flurry of excitement last week. Could private equity be poised to launch its most ambitious foray to date into South Africa, dwarfing other deals in the country with a $12.5bn takeover of iconic miner Gold Fields? Alas it was not to be.
Clear Channel saga highlights tension between hedge funds, buy-out firms
Activist hedge fund managers, who like to shake up public companies, and private equity firms, which often relieve the pressure by taking those same businesses private, are increasingly clashing over the issue of valuation of deals.
Clear Channel $26bn bid in doubt
Bain Capital and Thomas H Lee Partners could see their $26bn acquisition of Clear Channel Communications unravel this week, barring last-minute moves to salvage the deal. The two private equity groups agreed to acquire the largest chain of US radio stations last November for $37.60 per share.
Canada’s Cott Corp mulls Cadbury bid
Cott Corp, a Canadian maker of private-label drinks for such retailers as Wal-Mart, is talking with private equity firms about joining its operations with Cadbury Schweppes’ beverage arm, reports the Wall Street Journal.
Saudis line up bid for GE plastics division
In a move that underlines the appetite of Gulf state investment funds for investments outside home markets, Saudi Basic Industries Corporation, the largest public company in the Middle East, is preparing a bid for General Electric’s plastics division in a deal that could be valued at up to $12bn.
Sainsbury trustees warn of £3bn ‘hole’
J Sainsbury’s pension trustees have signalled to the consortium of private equity investors stalking the supermarket that it would have to tackle a hole in the pension scheme of up to £3bn to succeed in an acquisition.
New Look warms to £2bn sale
New Look, the high street retailer, has appointed Merrill Lynch to look at its strategic options as the privately owned retailer gets ready to put itself up for sale – with a price tag of up to £2bn.
KKR and Bain join rush to buy Cadbury arm
Cadbury Schweppes is eyeing a sale of its US beverages arm to private equity firms following strong interest from groups including KKR, Bain Capital and TPG, reports The Times. Cadbury has been flooded with takeover approaches for the business since it said last week that it planned to seek a demerger after Nelson Peltz,
Walker assembles high-flying private equity working group
Sir David Walker has named an 11-member team, including Lady Hogg, 3i chairman, and Lord Hollick, the former United Business Media chief executive, for his working party on the private equity industry.
Sainsbury war looms as suitors test waters
Prospects of a full-scale bidding war for J Sainsbury have grown as the supermarket group attracted fresh predators and the original CVC-led consortium met pension trustees last Friday. Senior members of the CVC-led team,