Kevin's Feed
May 13, 2015
via Breakingviews

Danaher breakup eases sting of pricey Pall deal

Photo

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

Danaher Chief Executive Tom Joyce’s breakup plan takes the sting out of his pricey bid for Pall. The $60 billion dentures-to-lasers concern is not cutting enough costs to justify the $13.8 billion it’s offering for the U.S. filter maker. But his surprise decision to voluntarily split Danaher in two dangles the prospect of better value for shareholders. The trick is to deliver.

May 13, 2015
via Breakingviews

Danaher breakup eases sting of pricey Pall deal

Photo

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

Danaher Chief Executive Tom Joyce’s breakup plan takes the sting out of his pricey bid for Pall. The $60 billion dentures-to-lasers concern is not cutting enough costs to justify the $13.8 billion it’s offering for the U.S. filter maker. But his surprise decision to voluntarily split Danaher in two dangles the prospect of better value for shareholders. The trick is to deliver.

May 13, 2015
via Breakingviews

Pure play gets new spin in filter maker M&A

Photo

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

Talk of a $13 billion takeover of Pall puts a new spin on pure play. The largest publicly traded air and water purification specialist is up for sale in an auction that could attract interest from the likes of U.S. healthcare conglomerate Danaher and instrument maker Thermo Fisher Scientific, according to the Wall Street Journal. The speculated price is 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.

May 1, 2015
via Breakingviews

Elon Musk plugs Tesla valuation into the grid

Photo

Additional reporting and writing by Antony Currie. The authors are Reuters Breakingviews columnists. The opinions expressed are their own.

Chief Executive Elon Musk’s new Powerwall battery system may finally bring some sense to Tesla Motors’ charged-up stock market valuation. Like his electric cars, the Silicon Valley billionaire’s new product is too pricey for many at up to $3,500 a pop. But if battery costs keep falling, Tesla’s Gigafactory runs smoothly and the solar market expands, shareholders may find there’s more spark in batteries than vehicles.

Apr 28, 2015
via Breakingviews

DuPont investors: give Peltz a chance

Photo

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

DuPont shareholders can afford to give Nelson Peltz a chance. Proxy firm ISS is backing the billionaire activist and another of his nominees for the board of the $65 billion chemical group. The case isn’t very strong. But Peltz himself has a good track record and a big stake in the company. If investors put just him on the board, he’d get a year and then it would be up to DuPont whether to give the 72-year-old an age waiver to stand for re-election.

Apr 8, 2015
via Breakingviews

Royal Dutch Shell and BG open mega-deal pipeline

Photo

Additional reporting and writing by Fiona Maharg-Bravo. The authors are Reuters Breakingviews columnists. The opinions expressed are their own.

Royal Dutch Shell and BG Group may open a mega-deal pipeline. The $200 billion Anglo-Dutch energy colossus is in advanced talks to buy its $46 billion gas rival. It would be an opportunistic move for Shell, whose vulnerable target has a new chief executive. There could yet be additional suitors for BG. Any merger is also bound to kick off other big transactions in the sector.

Apr 8, 2015
via Breakingviews

Royal Dutch Shell and BG open mega-deal pipeline

Photo

Additional reporting and writing by Fiona Maharg-Bravo. The authors are Reuters Breakingviews columnists. The opinions expressed are their own.

Royal Dutch Shell and BG Group may open a mega-deal pipeline. The $200 billion Anglo-Dutch energy colossus is in advanced talks to buy its $46 billion gas rival. It would be an opportunistic move for Shell, whose vulnerable target has a new chief executive. There could yet be additional suitors for BG. Any merger is also bound to kick off other big transactions in the sector.

Mar 27, 2015
via Breakingviews

Dow Chemical tempts fate with $5 bln chlorine sale

Photo

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

Dow Chemical is tempting fate with its $5 billion chlorine sale. The $54 billion company is offloading the bulk of its low-margin bleach and vinyl-related operations to smaller rival Olin using an esoteric structure known as a reverse Morris Trust. The valuation looks solid, especially considering the tax savings. Yet investors should remain wary given the history of such complex deals.

Mar 27, 2015
via Breakingviews

Dow Chemical tempts fate with $5 bln chlorine sale

Photo

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

Dow Chemical is tempting fate with its $5 billion chlorine sale. The $54 billion company is offloading the bulk of its low-margin bleach and vinyl-related operations to smaller rival Olin using an esoteric structure known as a reverse Morris Trust. The valuation looks solid, especially considering the tax savings. Yet investors should remain wary given the history of such complex deals.

Mar 26, 2015
via Breakingviews

Buffett-3G juggernaut can keep on truckin’

Photo

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

Warren Buffett and 3G Capital have created a fearsome M&A machine. Wednesday’s deal to merge consumer food giants Kraft and H.J. Heinz, worth some $80 billion, marks the boldest collaboration yet between the Sage of Omaha and the investors behind AB InBev, after earlier swoops on Heinz and Tim Hortons. The only barrier to even bigger deals may be 3G’s capacity for new projects.