Jul 30, 2014 18:39 UTC

Inversions start to spin out of control

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By Robert Cyran

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

Inversions are starting to spin out of control. A quest for tax savings has made digestible overseas targets attractive to U.S. buyers. Hospira’s potential $5 bln deal for a Danone unit highlights a fresh supply, for so-called “spinversions.” The odd combination also reflects the perverse incentives distorting corporate decisions.

Jul 28, 2014 19:43 UTC

Discounters’ $20 bln deal may spark M&A price war

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By Kevin Allison

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

Discount retailer Dollar Tree’s $8.5 billion pounce on rival Family Dollar could spark an M&A price war. The companies have identified more than enough cost savings in their $20 billion union to cover the 23 percent premium to be paid to Carl Icahn and other Family Dollar investors. As a percentage of revenue, though, synergies are relatively low. That may leave room for sector giant Dollar General to lob in a bid.

Jul 25, 2014 18:29 UTC

Sky Europe transforms BSkyB investment case

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By Quentin Webb

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

“British” Sky Broadcasting is no more. The group is buying sister Sky units in Germany and Italy for at least 4.9 billion pounds ($8.3 billion) in cash from Rupert Murdoch’s Twenty-First Century Fox. That transforms the investment case for the UK’s top pay-television group.

Jul 24, 2014 19:24 UTC

Murdoch calls on European outposts for Time Warner

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By Quentin Webb

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

Rupert Murdoch is calling on European outposts to help in his pursuit of Time Warner. The media mogul’s Twenty-First Century Fox is poised to sell its Sky pay-TV arms in Italy and Germany to Fox’s UK affiliate British Sky Broadcasting. There’s strategic logic to the asset shuffle and the proceeds could help sweeten his $80 billion bid for the owner of CNN and Warner Bros. How Murdoch treats non-Murdoch owners is the linchpin.

Jul 24, 2014 16:57 UTC

Allergan bosses put money where their mouths are

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By Robert Cyran

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

Allergan bosses have put money where their mouths are. The drugmaker says it is worth more on its own than the $52 billion hostile suitor Valeant Pharmaceuticals International is offering. That’s straight from the empty-promise, takeover-defense playbook. Allergan, however, is linking stock and option grants to lofty profit goals. It’s a bolder gambit that should become an M&A norm.

Jul 22, 2014 21:52 UTC

Goldman chums return John Thain to semi-importance

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By Antony Currie

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

John Thain is returning to significance with a little help from some former Goldman Sachs colleagues. Thain has been doing penance running lending minnow CIT for the past four years after serving as Merrill Lynch’s last boss. Now he’s spending $3.4 billion to buy OneWest Bank, which is owned by, among others, a gaggle of Goldman alums. The deal manages to bring CIT, and Thain, back into the club of systemically important financial institutions, if just barely.

Jul 22, 2014 15:23 UTC

Listen to Murdoch’s muzzled minorities

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By Rob Cox

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

Time Warner shareholders pondering whether to surrender to Rupert Murdoch would be well advised to listen to the media mogul’s muzzled minorities. Most Twenty-First Century Fox believers are relegated to owning non-voting stock in the entertainment conglomerate, the same second-tier paper on offer as part of the $80 billion takeover bid for the owner of HBO, CNN and Warner Bros. studios. Despite broad investor overlap in the two companies, the record shows a clear distaste for Murdoch’s imperialism.

COMMENT

Why, in all the photos of him that i have seen, is Rupert Murdoch so grumpy?

Posted by pocodot | Report as abusive
Jul 18, 2014 18:27 UTC

Time Warner can justifiably hold out for more

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By Jeffrey Goldfarb

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

Time Warner can justifiably hold out for more. Though the $80 billion takeover bid from Rupert Murdoch’s Twenty-First Century Fox includes a 20 percent premium, his quarry may well have been on track to achieve that on its own with a bit more time. The Looney Toons-to-HBO group’s Chief Executive Jeff Bewkes has a reasonable degree of negotiating power.

Jul 17, 2014 15:34 UTC

Murdoch may be heading for Pyrrhic Time Warner win

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By Robert Cyran

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

Rupert Murdoch may yet buy Time Warner, but it may be a Pyrrhic victory. The owner of HBO quickly shut off Twenty-First Century Fox’s $80 billion or so offer. Yet Murdoch appears determined to buy his media rival. Problem is, he’d need more than twice the synergies Fox has already identified to make the deal work – and a ton of debt. History suggests the octogenarian won’t give up – and may destroy value by offering more.

COMMENT

With an industry lapdog for a leader, we cannot expect anything useful from the FCC.

Posted by Thomas269 | Report as abusive
Jul 16, 2014 15:54 UTC

Dual-share inequity to figure in Time Warner fight

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By Rob Cox

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

Rupert Murdoch has one last big takeover left in him. Time Warner makes the perfect swan song for the 83-year-old media mogul. The HBO-to-Looney Tunes conglomerate sits at the top of a pyramid where content is king, has no controlling shareholder and poses few insurmountable antitrust hurdles for Twenty-First Century Fox. But winning won’t just be a matter of price.