Jeffrey's Feed
Feb 19, 2014
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Diamond dealers show how to make M&A sparkle

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

 

Leave it to a couple of diamond dealers to show how to make M&A sparkle. Jewelry retailer Signet’s stock shone brighter after it agreed to buy smaller rival Zale at a 41 percent premium for $1.4 billion. That’s what happens when the cost savings effectively cover the purchase price. It makes the tarnish on shareholder-unfriendly transactions involving Comcast and Jos. A. Bank all the more noticeable.

Feb 19, 2014
via Breakingviews

Diamond dealers show how to make M&A sparkle

Photo

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

 

Leave it to a couple of diamond dealers to show how to make M&A sparkle. Jewelry retailer Signet’s stock shone brighter after it agreed to buy smaller rival Zale at a 41 percent premium for $1.4 billion. That’s what happens when the cost savings effectively cover the purchase price. It makes the tarnish on shareholder-unfriendly transactions involving Comcast and Jos. A. Bank all the more noticeable.

Feb 13, 2014
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Comcast gives deal junkies lots to watch on cable

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

Comcast just gave merger junkies plenty to watch on cable. The biggest U.S. operator has agreed to buy rival Time Warner Cable for $45 billion in stock, interrupting a hostile takeover attempt by smaller Charter Communications. The target got the price it wanted, but not the terms. Regulatory risks are high. And all eyes will still be on the crafty John Malone.

Feb 13, 2014
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Comcast gives deal junkies lots to watch on cable

Photo

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

Comcast just gave merger junkies plenty to watch on cable. The biggest U.S. operator has agreed to buy rival Time Warner Cable for $45 billion in stock, interrupting a hostile takeover attempt by smaller Charter Communications. The target got the price it wanted, but not the terms. Regulatory risks are high. And all eyes will still be on the crafty John Malone.

Feb 5, 2014
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HBO gives Netflix investors a grim sneak preview

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

Netflix investors just got a grim sneak preview courtesy of HBO. Time Warner disclosed financial details of the pay-TV network behind “Girls” for the first time. They suggest a need for heroic growth and profit assumptions by Netflix.

Jan 31, 2014
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Chinese M&A rings in new year with Auld Lang Syne

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

Old friends are kicking off Chinese New Year with a rousing rendition of Auld Lang Syne. Last year’s $2.5 billion sale of Cooper Tire & Rubber was undermined by its joint venture partner in Rongsheng. The two sides have now agreed a deal that helps them part ways. Given what transpired, Cooper may not be the only outsider singing “should old acquaintance be forgot” in the Year of the Horse.

Jan 28, 2014
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Travel tech IPO charts familiar round trip

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

Another big pre-crisis buyout is heading for an unexpectedly safe landing. Seven years after taking travel technology company Sabre private for $5 billion, owners TPG and Silver Lake Partners are making the round-trip return to public markets. It’s one of many boom-time deals whose badly timed takeoff led to a bumpy ride.

Jan 23, 2014
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BlackRock may fancy revisiting Blackstone heritage

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

Is it time for BlackRock to revisit its Blackstone heritage? Larry Fink’s investment company manages $4.3 trillion while Steve Schwarzman’s, with only 6 percent of the assets, probably generated the same amount of profit last year. That has to make private equity tempting for BlackRock. It could one day buy a firm like, say, TPG.

Jan 9, 2014
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Chris Christie grapples with his inner Jamie Dimon

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

Jamie Dimon’s tale of woe is proving an uncanny inspiration to the governor of the U.S. state of New Jersey. Chris Christie, who is also considered an early front-runner for the 2016 Republican presidential nominee, followed his own “tempest in a teapot” moment with a mea culpa on Thursday for his team’s behavior over a traffic scandal. Christie even has an Ina Drew to blame. Like Dimon, the Garden State’s chief executive needs to own up to a culture he engendered.

Dec 20, 2013
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M&A potential will succumb to laws of physics

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

The laws of physics are apt to work against an upturn in mergers and acquisitions. The investor love being heaped on acquirers should be a catalyst for takeovers amid plentiful cash and credit. The pendulum could also swing to correct other market anomalies. Yet opposing pressures still exist and chief executives and boards have settled into a cautious mindset. Inertia is about as powerful a force there is.