Reuters blog archive
Here are some highlights from this week's Thomson Reuters Investment Banking Scorecard.
Medarex boosts biotechnology M&A to $5.3 billion
Bristol-Myers Squibb’s $1.9 billion acquisition of Medarex lifted the volume of biotechnology M&A to $5.3 billion for year-to-date 2009, a 90% decrease from 2008 levels. Last year's total was bolstered by the $46.7 billion acquisition of Genentech by Roche Holding. Excluding the Genentech transaction, biotechnology M&A volume is down 22% over 2008 levels. By number of deals, mergers in the sector are up 15% over last year.
With their advisory roles on the Medarex transaction, JP Morgan and Goldman Sachs top the ranking of biotechnology advisors for year-to-date 2009.
Chinese debt capital markets triple over 2008
Debt offerings from Chinese companies total $84.9 billion for year-to-date 2009, nearly triple the levels reached last year at this time. Issuers from the financial, energy and power, and industrial sectors account for just over 75% of activity. Industrial & Commercial Bank of China's (ICBC) recent $5.8 billion offering ranks as the third largest debt offering from a Chinese issuer this year.
ICBC, CITIC and China International Capital lead the Chinese debt underwriting league tables, with a combined 45.3% of the market.
China's Sinochem approaches Australian farm chemicals group Nufarm about a possible takeover, the second time Nufarm gets interest from a Chinese firm in the past two years. The Australian group has a market value of almost US$1.9 billion, and the news sent its shares soaring.
Other deals reported by Reuters and other media on Friday included:
Spain's Cosmen family and private equity group CVC have made a joint takeover approach for British bus and rail group National Express, the Financial Times reports, citing people close to the situation.
Seen with a post-bubble eye, securitisation is a bit of a looking glass world. Lewis Carroll would probably have appreciated "synthetic" obligations not built on real assets, near-meaningless credit ratings, and legal documents that fail to do what they are designed for.
So spare a thought for holders of asset-backed bonds who have had to take a trip down the rabbit hole.
If it's Friday it must be Thomson Reuters Investment Banking Scorecard day. There's a slogan for you. Anyway, here are the highlights:
"Industrial Sector ECM Shows Increase Over Last Year
Bolstered by this week's follow-on offering from Japanese airline services provider All Nippon Airways for $1.5 billion, total equity capital markets activity across the industrials sector reached $26.5 billion, a 2% increase from the same period last year when volume was $25.9 billion.
From Acquisitions Monthly
Pfizer, the world’s largest pharmaceuticals company, is lining up Turkey’s largest drugs company, Abdi Ibrahim, for a deal, according to an M&A banking source.
There are no talks so far, and what form a potential tie-up would take is not yet known.
A brace of autos deals feature in this edition of Deals du jour. Bankrupt auto parts supplier Delphi Corp (DPHIQ.PK) has had talks with bankruptcy lenders readying a bid for its assets that could challenge a proposed sale to private equity firm Platinum Equity, people familiar with the discussions say. Meanwhile, as Christiaan Hetzner writes, General Motors will have a hard time overcoming Germany's resistance to a financial investor if it wants to sell Opel to RHJ (RHJI.BR) in the hope that it could later buy its European carmaker back.
For these stories and all the rest of the latest deals news from Reuters, click here.
British petrochemicals giant Ineos today announced it has received the overwhelming support of its lenders for proposals to ease the terms on much of its 7.5 billion euro debt load.
The deal leaves the company’s debt burden untouched while lenders will accept a back-dated increase in interest payments as well as a one-off fee.
Barclays mulls a sale of its private-equity arm, AIG says it will pursue a New York public offering for its life-insurance unit, and CIT's assets appear attractive, but only to bargain-hunters. For these stories and all the rest of the latest deals news from Reuters, click here.
And in the newspapers (some external links might require subscriptions):
* Bank of America Corp (BAC.N) is operating under a secret U.S. regulatory sanction that requires it to overhaul its board and address perceived problems with risk and liquidity management, The Wall Street Journal reported, citing people familiar with the situation.
U.S. officials consider giving CIT Group Inc a temporary loan as part of an aid package to help the lender avoid collapse; U.S. asset manager Franklin Resources Inc (BEN.N) drops out of a consortium negotiating to buy American International Group Inc's (AIG.N) asset management unit; and The New York Times Co agrees to sell its New York City classical music radio station for $45 million, to help pay off debt. For these stories and all the other latest deals news from Reuters, click here.
And here's what's in the newspapers and online (some links may require subscriptions):
In China, two regulators are facing off over GM's controversial plan to sell its Hummer unit to a little-known Chinese outfit. In the United States, the sale of a stake in Facebook gives the whole a value of some $6.5 billion. And in Germany, Software AG is buying IDS Scheer in the country's first major corporate takeover of 2009. For more on these stories, and all the other latest deals news from Reuters, click here.
And here's what the papers are saying (some external links may require subscriptions):