Breakingviews

Avago offers textbook case for chip consolidation

May 28, 2015

The serial acquirer is buying semiconductor rival Broadcom for more than $36 bln. Cost cuts should just about cover the 30 pct premium. Avago’s track record, the cash-and-stock mix and the logic of industry mergers all add up, too. Only an interloper could spoil the party.

Fiat boss fights for car M&A with hand behind back

May 27, 2015

Sergio Marchionne argues mergers would cut duplicative spending and boost shareholder returns. GM has already rebuffed him, probably because such deals are complex and hard to complete. But he also hurts his case by downplaying the benefits of lower costs and fewer employees.

Rob Cox: Bolivarian bank dream faces Andean climb

May 26, 2015

Brazilian lender Itaú has pursued a strategy to create the first truly pan-Latin America financial institution. Its biggest effort to date is at an impasse. The merger it thought it cleverly struck with Chile’s CorpBanca is backfiring in ways that may cost it treasure and face.

Time Warner Cable finds money covers Charter flaws

May 26, 2015

CEO Rob Marcus rejected a bid from his smaller rival last year, balking at the leverage, cash and stock on offer. Those terms haven’t changed much but the price has gone up appreciably, to $56 bln. Time Warner Cable provides a reminder about what really matters in deal talks.

CVS-Omnicare portends lower doses of pharmacy M&A

May 21, 2015

The drugstore giant’s $10 bln purchase of the pharma services firm gives it entrance to nursing homes and expands specialty medicine distribution. But the increasingly concentrated industry is already raising antitrust concerns. The era of frantic mergers may be nearing an end.

TPG’s $8 bln drug sale far from generic

May 18, 2015

With the sale of Par Pharmaceutical, a maker of off-brand medicines, the buyout firm will generate an eight-fold return on its investment in three years. Though it’s a rare development, the eagerness of buyers like Endo International means more sellers are bound to benefit.

Danaher breakup eases sting of pricey Pall deal

May 13, 2015

The $60 bln dentures-to-lasers concern is not cutting enough costs to justify its $13.8 bln pounce for the filter maker. But boss Tom Joyce’s surprise decision to voluntarily split Danaher in two dangles the prospect of better value for shareholders. The trick is to deliver.

Pure play gets new spin in filter maker M&A

May 13, 2015

Suitors may be willing to splash out $13 bln for Pall, the largest publicly traded air and water purification company. That’s punchy and cost cuts might not cover the premium. But Pall’s scarcity value, profitability and burgeoning biotech customer base make it a tempting target.

Verizon’s dumb pipes no smarter with $4.4 bln AOL

May 12, 2015

Seeking refuge from a vicious wireless war, the telecom carrier is buying the owner of the Huffington Post and old internet dial-up customers. The video ad tech business may be the prize, but it faces threats from Google and others. This is just another silly deal involving AOL.

Monsanto heaps pressure on Syngenta

May 8, 2015

The U.S. seeds giant has made a $45 bln approach to the Swiss pesticide firm. The target rejected this as too cheap and too risky. Syngenta has a point: there will be major political and antitrust hurdles. But it needs to lay out just how it will create more value on its own.