It may be something in the wind, but is it becoming acceptable for companies to spend again?
Exhibit A: Morgan Stanley politely suggests that, even though companies which actually increase investment in their business with capital expenditure have tended to trail the scrimpers, it might be time to look at the capital intensive types again. Read more
It’s been a while since we used the RAW* tag on Markets Live. But hey! Monday’s session managed to drag the following pre-packed statement out of F&C Asset management…
London, 27 January, 2014: The Board of F&C Asset Management plc (“F&C” or the “Company”) notes the recent press speculation and confirms that it has received an indicative offer from BMO Financial Group (“BMO”) of 120 pence in cash per ordinary share (the “Offer Price”) for the entire issued and to be issued ordinary share capital of F&C (the “Possible Offer”). In addition, F&C shareholders will be entitled to receive and retain an ordinary course dividend of 2 pence per F&C share for the financial year ended 31 December 2013. Read more
Rattled by the equity sell-off?
Here’s an antidote…five pages of potential bid targets, courtesy of Andrew Garthwaite and team at Credit Suisse… Read more
Graham Secker and team at Morgan Stanley seems to think so, citing the corporate earnings recovery, rising business confidence and welcoming capital markets. There’s also an element of M&A having to come back into fashion, given that in Europe at least takeovers are running at a circa 20 year low… Read more
What’s been lighting a fire under Forest Laboratories?
As Liberum Capital see it, everything is in place for private equity to flourish — except for the small matter of deals.
Companies have lots of cash, debt is cheap, the market for secondary deals between private equity groups is healthy, and the number of buyout-backed initial public offerings is well on track to beat last year.
Fundraising also pulled in $204bn globally in the first half of this year, versus $170bn in the same period in both 2011 and 2012.
But there is a note of caution… Read more
Reading that Alcatel-Lucent is to cut 10,000 jobs (with 900 axes to actually fall in France) we found ourselves humming the grand old Duke of York.
We have no comment on the merits of this latest bout of self-help, which actually aims to cut 15,000 jobs and add another 5,000 by 2015. But for context (charts by us, data from Bloomberg): Read more
It’s possible Prem Watsa is a genius. We don’t wish to exclude it. Read more
Blackberry’s logo (below) resembles nothing as much as a hail of seven silver bullets. It appears the gun has been pointing the wrong way.
Societe Generale are trying to tell us something about M&A here. We’re not sure what.
Friday afternoon RAW klaxon. Buyer beware. Usual wealth warnings apply.
For those who
have a life are less interested in messy details, the explanation for the dealmaking optimism of recent months goes something like this:
– Since roughly last summer (OMT), tail risks are perceived to be down. And despite Washington’s reverse midas touch, the private sector has shown signs of staying resilient, including a streak of a spookily consistent employment reports. Read more
Does US-listed Pacific Drilling look like a credible takeover target? We think it probably does, 0n balance, and we’d very much like to find out more. Read more
It’s 2:45am in Vancouver. Do you know where your investor relations department is?
Here’s this morning’s Daily Mail. Read more
You know the script here. X company announces that it is acquiring Y; a few days later news of a class action law suit ticks across the wires, typically alleging the directors have failed in their fiduciary duties in some manner; thereafter, silence…
Research by Robert Daines and Olga Koumrian at Cornerstone suggests that such litigation has become the norm since the onset of the financial crisis. Read more
Big news in RAW sewage this Saturday evening.
PARIS | Sat Oct 20, 2012 8:33pm BST (Reuters) – Veolia Environnement and Suez Environnement said on Saturday they were not working on a merger after Le Monde newspaper reported the two companies had held talks that fell apart over antitrust concerns. Read more
The exact time of death can be recorded as 1:01pm BST. But, really, the pulse was lost long ago.
BAE Systems and EADS announced that they have decided to terminate their discussions. So should we blame another breakdown in eurozone relations? Or maybe, just maybe, BEADS wasn’t a merger worth saving. Read more
Pascal Soriot doesn’t start as AstraZeneca’s new CEO until Monday, yet everyone seems to know what he should do first: go shopping.
The problems soon to be faced by the former Genentech CEO are well known. AstraZeneca is heading towards the steepest of patent cliffs and has so far failed to find anything in the R&D labs that might cushion its fall. Drugs losing US patent protection by 2015 account for a more than a fifth of its sales, rising to nearly a third of sales by 2019. Recent launches of diabetes and heart disease pills have fallen short and what’s in the late-stage pipeline (arthritis, constipation and gout, since you ask) is considered quite likely to fail. Read more
It’s been a lively few weeks for Monster Worldwide, the recruitment website.
For a company that’s been for sale since February, that’s quite a move. BofA Merrill Lynch and Stone Key Partners have been courting buyers for the past six months and final-round bids went in this week, according to Dealreporter (subscription required). Read more
As fantasy banking M&A goes — this isn’t such an outlandish idea, we reckon.
But see what you think: Read more
Peter Eavis over at Dealbook notes an underrated aspect of the big M&T/Hudson City regional banking deal — regulatory capital:
To do well in annual Federal Reserve stress tests, M&T Bank may want to increase its Tier 1 common ratio substantially. Read more
Update (8:20am BST): it seems the usually-reliable sources were mostly reliable in this case, though there remains some uncertainty over whether they can tell one Chinese gold company from another.
Barrick Gold statement: Read more
It’s a big, big China leveraged buyout — the biggest ever, in fact. Advertising company Focus Media, which is listed in the US, said it has received a $3.5bn takeover offer from its chief executive who is backed by a number of private equity groups, including Carlyle.
It’s gained attention in part because the offer (in the form of a non-binding proposal letter) of $27 per share is higher than the level the shares closed on the last day before the short seller Muddy Waters published the first of several reports criticising the company. Read more
Remember Friday afternoon RAW? Well, this is most definitely Friday afternoon RAW. Please read the disclaimer carefully.
Microsoft posted the first quarterly loss, of some $0.06 per share, in the company’s publicly-listed history on Thursday. Its flagged $6.2bn writedown of goodwill on the acquisition of aQuantive got the blame.
(Actual underlying earnings were $0.73 per share, while net cash generation is worth highlighting: $31.6bn) Read more
[Update: the offer has been withdrawn..."recent publicity around the proposal has made it difficult to proceed".]
… and you’re an established but struggling department store operator (think a rubbish John Lewis) and obvious bid target. You’ve never heard of this bidder, but they insist they’re for real. What do you do? Read more