Jan 26, 2015 19:12 UTC

U.S. $16 bln paper deal requires precise folding

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By Kevin Allison

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

Delivering on the promise of a $16 billion U.S. paper merger may require some precision folding. Stockholders in packaging giants Rock-Tenn and MeadWestvaco will share their combined company evenly, with a roughly balanced board. Investors are already inking in $300 million of promised annual savings, pushing up the stocks of both companies. But mergers that look equal can still provoke business and cultural upheaval.

Jan 22, 2015 22:29 UTC

RBC’s foray south a pricey bet that two’s a charm

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By Daniel Indiviglio

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

Royal Bank of Canada is placing a pricey bet that the second time’s a charm for a foray south of the border. The Canadian titan is forking over $5.4 billion for Beverly Hills-based City National little more than three years after it cut a painful retreat from U.S. retail banking. This time around, RBC boss David McKay, who took the reins last August, has targeted a growing franchise in a coveted part of the market. But he’s also paying through the nose for it.

Jan 21, 2015 14:50 UTC

Old M&A dogs try old tricks with new activist fund

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By Richard Beales

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

Can old dogs make money out of old tricks? That’s the question facing ex-JPMorgan M&A boss and finance chief Doug Braunstein and longtime deal lawyer Jim Woolery. The two have collected $250 million and a network of corporate chieftains to kick-start a fund that will invest in companies and persuade them to do deals that boost share value. The question is whether there’s room for permanently well-mannered activism in 2015.

Jan 20, 2015 11:46 UTC

Climate feels right for certain deals in Davos

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By Jeffrey Goldfarb

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

Torrid trade winds are blowing through Switzerland’s crisp mountain air. Global business leaders and bankers convene this week for the World Economic Forum fresh off a $3.5 trillion year of mergers, the biggest tally of the post-financial crisis era. While the momentum creates an ideal climate for corporate dealmaking, it’s less clear the atmosphere is conducive to strike the more important political accords for which Davos has become renowned.

Jan 12, 2015 16:53 UTC

Cheap oil lubricates Li Ka-shing’s corporate rejig

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By Una Galani

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

Cheap oil could be vital to Li Ka-shing keeping control of his empire. Asia’s richest man is selling a 6 percent stake in Husky Energy to his holding company as part of a broader shake-up. The move is vital to maintaining Li’s grip on his telecom, retail and property businesses. The recent fall in the oil price makes it harder for shareholders to object.

Jan 12, 2015 15:16 UTC

Shire gambles AbbVie break fee on risky $5 bln deal

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By Neil Unmack

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

Shire is gambling its AbbVie break fee on risky M&A. The Dublin-based pharma group has agreed to buy U.S. peer NPS to expand in lucrative rare drugs. The 51 percent premium is covered almost entirely by compensation from the collapse of Shire’s sale to larger American rival AbbVie last year. That doesn’t much mitigate the risk of doing a deal ahead of a key regulatory ruling.

Jan 8, 2015 15:44 UTC

Dick’s buyout has financially sporting chance

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By Kevin Allison

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

Dick’s Sporting Goods may become the next private equity plaything. The $6 billion basketball-to-fishing vendor is mulling a leveraged buyout, according to a Reuters report on Wednesday. A relatively clean balance sheet means there’s an opportunity to make money. It would, however, require healthy growth assumptions for $6.1 billion Dick’s at a time when stiff online competition is challenging many retailers.

Jan 6, 2015 21:09 UTC

Coach tries LVMH model on for size with shoe buy

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By Stephanie Rogan

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

There can be no clearer admission that Coach has exhausted the growth opportunities of its core brand than the $574 million purchase of luxury shoe-maker Stuart Weitzman. Yet for shareholders, who have lopped off half of the company’s value since 2012, Coach’s acceptance of its limitations offers a sign of hope. Coach is betting it can use its know-how to expand other, smaller brands like LVMH and Kering have.

Jan 5, 2015 17:12 UTC

A double-speak guide to modern markets

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By John Foley and Rob Cox

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

As the market perpetually shifts, so do the rhetorical stylings its players use to talk their way out of problems. The past year saw above-average creativity when it came to saying one thing and meaning another. Here, Breakingviews offers up 10 euphemisms we’d most like to see disappear.

Jan 2, 2015 17:26 UTC

Crude slump will stoke European oil and gas M&A

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By Fiona Maharg-Bravo

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

There was $383 billion worth of oil and gas sector M&A in the 2014 year to Dec. 11. Yet Europe has largely missed out on the gusher: about three-quarters of the targets have been in North America, according to Thomson Reuters data. Shale has played a big role. In 2015, oil and gas bankers in Europe will get a bigger slice of the action.

COMMENT

I guess we really didn’t need the oil that much Re: The price per barrel drop. And all of the so-called oil shortages were manufactured?…Hmmm Something fishy here, has been for some time now.

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