Jun 23, 2014 18:38 UTC

Oracle deal provides partly cloudy forecast

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By Kevin Allison

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

Oracle’s $5.3 billion deal for Micros Systems provides a cloudy forecast for shareholders in the database giant. Even if it’s the start of a new deal binge by Chief Executive Larry Ellison – which is possible – it’s not at a crazy valuation. But longtime partner Micros is more of an add-on than a way to supercharge Oracle’s effort in the cloud.

Jun 23, 2014 13:32 UTC

Investors beware: France will get more erratic

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By Pierre Briançon

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

The French government didn’t have to buy a 20 percent stake in Alstom. It could have smugly observed that its intervention in the acquisition of the French engineer’s energy assets by General Electric had yielded some success. Pressure from Paris forced GE to rework its offer, giving France a decisive say in the future of Alstom’s nuclear business. With that concession secured, there was no good reason to buy out Alstom’s main shareholder, construction-to-telecom conglomerate Bouygues.

Jun 20, 2014 18:14 UTC

GE scores a Pyrrhic victory in France

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By Quentin Webb

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

There’s a paradox in General Electric’s French triumph. The U.S. conglomerate is finally getting Alstom’s energy businesses, having seen off German nemesis Siemens and reached an accommodation with a hostile French government. Yet some other players won clearer victories.

Jun 19, 2014 18:27 UTC

Paris forces GE into over-engineered Alstom bid

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By Quentin Webb

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

Paris has forced GE into an over-engineered bid for Alstom’s power businesses. The U.S. giant’s third tilt at its French counterpart overlays a series of tie-ups on the previously simple 11.4 billion euros ($15.6 bln) cash deal. The aim is to satisfy France’s taste for alliances and protective concern for an industrial champion. It all looks less shareholder-friendly – but also less prone to an Elysee Palace veto. That keeps GE ahead of rival bidders Siemens and Mitsubishi Heavy Industries.

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 18, 2014 04:20 UTC

China veto is wake-up call for world’s dealmakers

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By Ethan Bilby 

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

Chinese regulators have sunk their first overseas transaction, killing a container-shipping alliance led by Denmark’s Maersk. The particular national interest made this tie-up especially vulnerable. But there’s a real risk China could torpedo other global deals.

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.