Jun 18, 2014 18:06 UTC

Elon Musk applies his magic touch to M&A

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By Christopher Swann

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

Elon Musk is applying his magic touch to M&A. A $350 million acquisition of solar panel maker Silevo added $900 million to the market value of SolarCity, where the inventor and entrepreneur is chairman and biggest shareholder. It’s an investment in an efficient technology and a hedge against rising import tariffs. Manufacturing, however, is the riskiest part of solar, and Musk is a more proven builder than buyer.

Jun 17, 2014 17:38 UTC

Medtronic-Covidien is blast from M&A advisory past

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By Antony Currie

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

Investment bankers had a rude awakening over the weekend. A mega-merger like the $43 billion cash and stock tie-up Medtronic and Covidien announced on Sunday often provides a feast for a raft of advisory firms. Not this time. The two medical devices companies are only using one each.

Jun 16, 2014 21:12 UTC

Morgan Stanley email shame begs a tech solution

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By Jeffrey Goldfarb

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

Morgan Stanley’s email shame should bring Silicon Valley and Wall Street closer together. Messages sent by the bank’s head of M&A to Allergan look bad now that Morgan Stanley is working for hostile suitor Valeant Pharmaceuticals International. The episode suggests there’s a market for a corporate Snapchat.

COMMENT

Is this a surprise. This industry is riddled with bad, practises, woeful management, and downright thieves. The very nature of the business attracts the worst in our society whose sole interest is personal enrichment , stroking their inflated egos, and boosting their “status in society”. Pond life at its worst. Long jail sentences and licensing is required to deter these thieves.

Posted by Olduvai | Report as abusive
Jun 16, 2014 17:10 UTC

Medtronic-Covidien deal is marriage of convenience

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By Jeffrey Goldfarb and Robert Cyran

The authors are Reuters Breakingviews columnists. The opinions expressed are their own.

The marriage of Medtronic and Covidien looks to be one of convenience. The $42.9 billion deal includes a premium that exceeds the estimated cost savings. Stents and sutures aren’t an obvious fit. And moving Medtronic’s headquarters from Minneapolis to Covidien’s Dublin base won’t obviously cut the U.S. company’s tax bill. Freeing up overseas cash is too shallow a reason to tie the knot.

Jun 13, 2014 19:17 UTC

Priceline’s OpenTable buy is costly appetizer

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By Robert Cyran

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

Priceline definitely didn’t pick the budget option in its own search for expansion. The online travel outfit is paying a 46 percent premium – $2.6 billion in cash – to snag OpenTable, the listed restaurant reservation site. Each helps small businesses and customers find each other. But the tariff only makes sense if Priceline can plug many more of both into OpenTable worldwide.

Jun 11, 2014 18:23 UTC

Siemens needs more than Mitsubishi to win Alstom

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By Olaf Storbeck

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

Siemens is smart to team up with Japanese engineering peer Mitsubishi Heavy Industries in a potential bid for Alstom’s power assets. But this probably won’t be enough for the German group to see off rival interest from America’s General Electric.

Jun 9, 2014 17:57 UTC

M&A shows symptoms of overheating

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By Robert Cyran and Kevin Allison

The authors are Reuters Breakingviews columnists. The opinions expressed are their own.

The merger market is showing symptoms of overheating. Global deal volume is up sharply this year – up 63 percent according to Bernstein research and 71 percent by Thomson Reuters’ tally. Monday’s announcements, meanwhile, hint at toppiness.

Jun 6, 2014 16:13 UTC

Facebook is near-universal buyer in virtual world

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By Richard Beales

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

In a virtual world, Facebook could justify buying not just WhatsApp but almost every other social networking and chat app on the planet. The company’s $160 billion market cap values its 1.3 billion monthly active users at nearly $130 each. Most of its peers look much cheaper. Clamp on an Oculus Rift virtual reality headset – the product of another company just bought by Facebook – and there’s a case for Chief Executive Mark Zuckerberg gobbling them all up.

Jun 5, 2014 14:17 UTC

Gannett carve-up is just a matter of Time

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By Jeffrey Goldfarb

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

A Gannett breakup is really just a matter of Time. The $6.6 billion owner of USA Today and other newspapers isn’t getting much credit for its TV transformation. As Time Warner sets free its publishing arm this week, a Breakingviews analysis suggests Gannett should do the same.

Jun 4, 2014 18:26 UTC

Voracious buyers find the meat on Sara Lee’s bones

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By Kevin Allison

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

Voracious buyers are finding the meat on Sara Lee’s bones. The old consumer conglomerate broke itself up into meat-focused Hillshire Brands and coffee-roaster D.E Master Blenders 1753 in 2012 after spurning takeover offers worth about $12 billion, according to press reports at the time. It looked like a raw deal – until now.