Reuters blog archive
A Facebook IPO is a few years off, Bank of America raises $13.47 billion in a share sale, GM's bankruptcy plan envisages a quick sale to government, and more. Here are the latest deal-related stories:
And in the morning papers:
Global mining company Rio Tinto may replace the $7.2 billion convertible bond that is part of its tie-up with Chinalco with a capital raising underwritten by the Chinese firm, The Australian newspaper said. Reuters story here.
India's Religare Enterprises and Australia's Macquarie Group have jointly bid $500 million to buy AIG Investments, which manages $100 billion in client funds globally, according to The Times of India.
from Summit Notebook:
IBM's Chief Financial Officer Mark Loughridge didn't have much to say about Oracle's planned purchase of Sun Microsystems at the Reuters Global Technology Summit.
I don't see that much has changed in this. They have been partnering for decades. It doesn't fundamentally change the position" in the industry.
And earn-outs are in. So says a new survey looking at almost 500 European deals from 2007-08 (most below $500m). As I wrote:
"The balance of power in European mergers and acquisitions (M&A) has shifted towards buyers, with deals containing more legal safeguards against a purchase turning sour, a survey released on Tuesday showed.
Is now the time to be bulking up in M&A and other kinds of corporate finance advice?
On Monday, Societe Generale trumpeted the hire of a top French dealmaker from JPMorgan -- the auspiciously named Thierry d'Argent -- and reiterated its big plans for European M&A. Daiwa Securities SMBC agreed to buy mid-market corporate finance house Close Brothers Corporate Finance. Meanwhile Barclays Capital is making lots of equity markets hires, and says it aims to be one of the world's top full-service investment banks.
State Street is selling $2 billion of stock, Morgan Stanley expects more listed company share sales and billionaire Kirk Kerkorian strikes his latest deal, and more. Here are the latest deal-related stories:
And in the morning papers:
The drop in U.S. stocks through the first three months of 2009 did little to spur merger activity in the U.S. industrial sector, but a top executive at blue-chip manufacturer United Technologies Corp argued on Thursday that the recent rebound in share prices could spur buying.
"This recovery that we've seen in the market probably helps because it sets a more realistic baseline from which to negotiate," said Greg Hayes, chief financial officer of the world's largest maker of elevators and air conditioners, which has said it plans to be aggressive in seeking acquisitions this year. "Obviously you'd like to buy everything as cheaply as you can, but you have to be realistic. It's probably a better market today than it was even six weeks ago."
The bear market's message to MBA graduates - tough luck.
MBAs who graduate during a bear market may never get the chance to start a Wall Street career, which means they would earn significantly less over their lifetime than those who graduated when things were rosy around them, a Stanford business school study shows.
The proportion of graduating MBAs who manage to get hired into lucrative investment banking positions shrinks or expands depending on how well the stock market is performing in a given year, according to the study by Paul Oyer, an associate professor of economics at the Stanford Graduate School of Business. The study is based on the long-term career choices and salaries of the school's graduates over 35 years.
Remember a couple of years ago, when it was discovered that an executive used his corporate American Express card to pay for $241,000 worth of "services" at a New York-based "gentleman's club" then tried to stiff AmEx on paying the bill?
How might someone explain a $241,000 charge on his or her statement, to his or her boss (or his or her spouse, for that matter)when it gets sent to the home office -- or worse, the home -- at the end of the month?
from India Insight:
Tech Mahindra, part of Indian business group Mahindra & Mahindra, won the race to acquire Satyam Computer Services on Monday, in a deal that'll help the mid-sized outsourcer gain in size and also lift clarity on Satyam's fate.
In a race that saw only a handful of bidders, Tech Mahindra beat rivals such as engineering conglomerate Larsen & Toubro and U.S.-listed Cognizant Technologies. Tech Mahindra agreed to buy a 31 percent stake in Satyam at 58 rupees, a 23 percent premium to Satyam’s last closing price.