Jeffrey's Feed
Jul 1, 2015
via Breakingviews

ACE aims to defy history with $28 bln Chubb deal

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

ACE has set itself the task of overcoming the ghosts of past insurance M&A deals. The Zurich-based property and casualty insurer is buying U.S. rival Chubb for $28.3 billion in cash and stock. Prospective savings won’t cover the premium being paid, implying that ACE believes strongly in the revenue gains it is promising. They don’t always materialize as planned.

Jun 22, 2015
via Breakingviews

Mega-rejections signal M&A’s Taylor Swift moment

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

M&A is having its Taylor Swift moment. U.S. health insurer Cigna on Sunday brushed off a $54 billion merger proposal from rival Anthem just as pipeline operator Williams was doing the same to a $53 billion approach from Energy Transfer Equity. All the while, the 25-year-old pop idol renowned for her songs of relationship angst forced Apple to pay up for music. In a seller’s market like this, love isn’t usually unrequited for long.

Jun 22, 2015
via Breakingviews

Mega-rejections signal M&A’s Taylor Swift moment

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

M&A is having its Taylor Swift moment. U.S. health insurer Cigna on Sunday brushed off a $54 billion merger proposal from rival Anthem just as pipeline operator Williams was doing the same to a $53 billion approach from Energy Transfer Equity. All the while, the 25-year-old pop idol renowned for her songs of relationship angst forced Apple to pay up for music. In a seller’s market like this, love isn’t usually unrequited for long.

Jun 11, 2015
via Breakingviews

Rupert Murdoch’s step back propels dynasty forward

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

Rupert Murdoch is propelling his family dynasty forward by taking a step back. The octogenarian mogul plans to hand off the Twenty-First Century Fox media empire shortly to his two sons. Rupert is expected to designate Lachlan as executive co-chairman alongside him, and cede the chief executive role to James. The departure of Chief Operating Officer Chase Carey would crown the royal succession.

Jun 4, 2015
via Breakingviews

Beware a bluff from poker-playing Dish boss

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

A poker pro like Dish Network Chief Executive Charlie Ergen knows it’s possible to win without the best cards. His hand may be getting weaker, however, as the cable and telecommunications industries consolidate rapidly around him. Ergen would be making a bold bet by merging his $35 billion U.S. satellite operator with similarly-sized wireless provider T-Mobile US. Investors may want to guard against a bluff.

Jun 4, 2015
via Breakingviews

Beware a bluff from poker-playing Dish boss

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

A poker pro like Dish Network Chief Executive Charlie Ergen knows it’s possible to win without the best cards. His hand may be getting weaker, however, as the cable and telecommunications industries consolidate rapidly around him. Ergen would be making a bold bet by merging his $35 billion U.S. satellite operator with similarly-sized wireless provider T-Mobile US. Investors may want to guard against a bluff.

Jun 3, 2015
via Breakingviews

Apollo strains to heed LBO mission control

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

Apollo is struggling to stick to its mission. The private equity shop led by Leon Black, Joshua Harris and Marc Rowan plans to buy OM Group, a maker of specialty chemicals and magnet and battery technology, for a headline valuation of 9.4 times EBITDA. Side deals will lower the multiple but adhering to Apollo’s avowed restraint is tough in such an exuberant market. The small buyout illustrates a bigger industry problem.

Jun 3, 2015
via Breakingviews

Apollo strains to heed LBO mission control

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

Apollo is struggling to stick to its mission. The private equity shop led by Leon Black, Joshua Harris and Marc Rowan plans to buy OM Group, a maker of specialty chemicals and magnet and battery technology, for a headline valuation of 9.4 times EBITDA. Side deals will lower the multiple but adhering to Apollo’s avowed restraint is tough in such an exuberant market. The small buyout illustrates a bigger industry problem.

May 26, 2015
via Breakingviews

Time Warner Cable finds money covers Charter flaws

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

Time Warner Cable concluded that one out of four ain’t bad. Last year, the U.S. cable operator rejected a takeover bid from smaller rival Charter Communications, balking at the price and the amount of leverage, cash and stock on offer. Most of the terms haven’t changed much in the deal it just agreed to, but the valuation has gone up appreciably, to $56 billion. It’s a stark reminder about what really matters in mergers.

May 26, 2015
via Breakingviews

Time Warner Cable finds money covers Charter flaws

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

Time Warner Cable concluded that one out of four ain’t bad. Last year, the U.S. cable operator rejected a takeover bid from smaller rival Charter Communications, balking at the price and the amount of leverage, cash and stock on offer. Most of the terms haven’t changed much in the deal it just agreed to, but the valuation has gone up appreciably, to $56 billion. It’s a stark reminder about what really matters in mergers.