Feb 19, 2014 19:26 UTC

Diamond dealers show how to make M&A sparkle

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By Jeffrey Goldfarb
The author is a Reuters Breakingviews columnist. The opinions expressed are his own.

 

Leave it to a couple of diamond dealers to show how to make M&A sparkle. Jewelry retailer Signet’s stock shone brighter after it agreed to buy smaller rival Zale at a 41 percent premium for $1.4 billion. That’s what happens when the cost savings effectively cover the purchase price. It makes the tarnish on shareholder-unfriendly transactions involving Comcast and Jos. A. Bank all the more noticeable.

Feb 18, 2014 20:07 UTC

Actavis makes pharma deals look generic

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By Robert Cyran
The author is a Reuters Breakingviews columnist. The opinions expressed are his own.

 

Actavis makes pharmaceutical deals look generic. Its $25 billion acquisition of Forest Laboratories follows a familiar formula in the sector. Uppity investor? Check. Low-tax jurisdiction? Check. Buyer’s stock rises? Check. And over $8 billion of value created means financiers will keep busy with their own prescriptions for M&A success.

Feb 17, 2014 14:55 UTC

Vivendi’s SFR is top target for French cable king

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By Quentin Webb

The author is a Reuters Breakingviews columnist. The opinions expressed are his own.

France’s cable king promised investors a slew of deals when he floated Altice, his investment vehicle. The biggest and best would be Vivendi’s mobile operator SFR.

Feb 14, 2014 19:39 UTC

Jos. A. Bank’s daft deal knits owners in a bind

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By Robert Cyran
The author is a Reuters Breakingviews columnist. The opinions expressed are his own.

Jos. A. Bank’s daft deal is knitting its shareholders in a bind. To avoid being acquired, or perhaps to fetch a higher price from rival Men’s Wearhouse, the suits retailer is issuing stock to buy Eddie Bauer at $56 a share, only to buy more back at $65. If the $875 million transaction isn’t unraveled, investors will find themselves painfully stitched up.

Feb 13, 2014 20:17 UTC

Comcast deal machine spits out a value destroyer

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By Rob Cox and Jeffrey Goldfarb
The author is a Reuters Breakingviews columnist. The opinions expressed are his own.

 

Comcast’s deal machine has spit out a value destroyer. Digesting Time Warner Cable is ambitious even for a serial acquirer like Chief Executive Brian Roberts. As with some of his many previous purchases, it looks set to generate a return on investment below Comcast’s cost of capital. That’s crummy but not criminal. It’s also not surprising given the medieval governance the Roberts family uses to oversee its fiefdom.

COMMENT

So Comcast isn’t a monopoly, Time-Warner isn’t a monopoly and the resulting behemoth wouldn’t be a monopoly either.

Thank you US anti-trust “guidelines”, always looking out for the consumer.

Posted by thebriang | Report as abusive
Feb 13, 2014 15:07 UTC

Comcast gives deal junkies lots to watch on cable

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By Jeffrey Golfarb
The author is a Reuters Breakingviews columnist. The opinions expressed are his own.

Comcast just gave merger junkies plenty to watch on cable. The biggest U.S. operator has agreed to buy rival Time Warner Cable for $45 billion in stock, interrupting a hostile takeover attempt by smaller Charter Communications. The target got the price it wanted, but not the terms. Regulatory risks are high. And all eyes will still be on the crafty John Malone.

Feb 12, 2014 19:03 UTC

Cross-border arbitrage is expansive Bimbo’s yeast

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By Robert Cyran
The author is a Reuters Breakingviews columnist. The opinions expressed are his own.

Cross-border arbitrage is the yeast for Grupo Bimbo’s aggressive expansion. In its latest deal north of the border, the acquisitive Mexican breadmaker is shelling out $1.8 billion to buy Canada Bread. Paying 20 times earnings to move into a mature market may seem questionable. But Bimbo’s earnings fetch an even higher multiple at home – and the deal should lower its weighted average cost of capital.

Feb 3, 2014 20:27 UTC

Smith & Nephew jumps on a wounded rival

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By Quentin Webb
The author is a Reuters Breakingviews columnist. The opinions expressed are his own.

Smith & Nephew is jumping on a wounded rival. The British medical technology giant has agreed to buy ArthroCare, a U.S. specialist in sports medicine, for an enterprise value of $1.5 billion. Treating injured athletes is a faster-growing business than selling artificial hips and knees, Smith & Nephew’s traditional focus. And because of the target’s own self-inflicted injuries, the buyer is paying the slimmest of premiums.

Jan 31, 2014 21:45 UTC

Chinese M&A rings in new year with Auld Lang Syne

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By Jeffrey Goldfarb
The author is a Reuters Breakingviews columnist. The opinions expressed are his own.

Old friends are kicking off Chinese New Year with a rousing rendition of Auld Lang Syne. Last year’s $2.5 billion sale of Cooper Tire & Rubber was undermined by its joint venture partner in Rongsheng. The two sides have now agreed a deal that helps them part ways. Given what transpired, Cooper may not be the only outsider singing “should old acquaintance be forgot” in the Year of the Horse.

Jan 30, 2014 18:04 UTC

Lenovo’s M&A spree challenges investors’ faith

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By Ethan Bilby and Peter Thal Larsen
The authors are Reuters Breakingviews columnists. The opinions expressed are their own.

Lenovo prides itself on being a modern multinational, but its approach to divulging information remains frustratingly old-school. The Chinese group is buying Google’s Motorola phone business just a week after picking up IBM’s low-end server unit. Adding the two loss-making divisions to its portfolio will cost up to $5.2 billion in cash and stock. Though there’s some strategic logic, shareholders have little way of working out whether the deals stack up.