LONDON, March 16 (Reuters) – Devices for the hard of hearing
shouldn’t be a hard sell for investors: greying populations,
cacophonous modern life, and the advent of sleeker machines to
win image-conscious converts should all make for big profits.
But private equity firms have balked at the hearing-aid
business Siemens AG <SIEGn.DE> has just tried to offload — even
though a disposal made plenty of sense for the German industrial
LONDON, March 15 (Reuters) – Montagu Private Equity agreed
to sell French medical diagnostics business Sebia to rival
Cinven [CINV.UL], the latest in a series of buyouts focused in
niche areas of healthcare.
The deal announced on Monday values Sebia at about 800
million euros including debt, 12.5 times its 2009 earnings,
sources familiar with the situation said. It gives Montagu a
three-times return on its original equity investment.
Highlights from February’s “monthly snapshot” of M&A and capital-markets activity from the team who compile investment-banking data for Thomson Reuters:
· Global DCM Activity Down 34% – For February global DCM activity reached $402.9 billion down 34% when compared with last month, year-to-date activity for debt capital markets is also down 15% overall when compared with the same period last year with $1,197 billion. Activity this month was driven by Federal Credit Agencies and Sovereign debt worth $162.9 billion approximately 40% of the total activity. US DCM drove activity with 43.4% in February.
LONDON (Reuters) – A bold plan to combine Germany’s Ratiopharm and Iceland’s Actavis, two of the world’s biggest generic drugmakers, could cure a multi billion-euro debt headache for Deutsche Bank <DBKGn.DE>, Actavis’s main creditor.
Actavis is vying with Pfizer Inc <PFE.N> and Israel’s Teva Pharmaceutical Industries <TEVA.TA> in the 3 billion-euro auction of Ratiopharm, which is being sold by the family of late German billionaire Adolf Merckle to repay creditors, sources familiar with the situation say.
LONDON (Reuters) – Prudential’s <PRU.L> $35.5 billion bet on Asia is a rare bit of good news for Europe’s dealmakers, who have seen a recovery this year in U.S. and emerging-market mergers and acquisitions pass them by.
The lag reflects markets rattled by Europe’s slower path to recovery and fears about sovereign creditworthiness, provoked by Greece’s difficulties.
* Giant private equity firm Blackstone Group LP (BX.N) posts better-than-expected earnings on Thursday and says that lending for deals has returned, although exiting investments by IPO has been bumpy.
* Huatai Securities’ (601688.SS) modest gains on debut fell short of expectations after it raised $2.3 billion in China’s largest IPO this year, and could set a trend of lower pricing in upcoming share listings.
Highlights from the Thomson Reuters Investment Banking Scorecard:
Global Follow-On Offerings Up 81%
Global follow-on offerings total $48.7 billion for year-to-date 2010, an increase of 81% compared to the same time last year. Issuers in Japan and the United States account for nearly 47% of all year-to-date secondary offerings with $12.1 billion and $10.7 billion, respectively.
Offerings in the financial and energy & power sectors account for a combined 67% of global activity this year. European follow-on activity is up more than four times last year’s totals, bolstered by $4.3 billion in rights offerings, which account for 36% of European follow-on activity this year.
Cross Border M&A Up 79% over 2009
Cross border M&A totals $84.5 billion for year-to-date 2010, a 79% increase over the same period last year. By number of deals, cross border transactions are up just 6% for the year.
This week’s $10.7 billion bid for Zain Africa by India-based telecom provider Bharti Airtel and Norwegian fertilizer producer Yara International’s proposed acquisition of US-based Terra Industries contributed to the cross-border total, which accounts for 32% of worldwide activity, compared to 24% last year at this time.
LONDON, Feb 18 (Reuters) – Britain’s one-off “supertax” and
new longer-term payout systems have put paid to London’s
traditional springtime merry-go-round of City bankers moving
firms soon after they pocket their bonuses.
Barring exceptional hires, banks may be loath to poach staff
before April 6, when Chancellor Alistair Darling’s one-off 50
percent “supertax” on all bonuses over 25,000 pounds is set to
expire. Any hire soon after that could also attract scrutiny.
LONDON, Feb 16 (Reuters) – Advent International, Permira
[PERM.UL] and Cinven [CINV.UL] are in the second round of an
auction of British sofa retailer DFS, which could fetch up to
500 million pounds ($784.3 million), people familiar with the
A fourth private equity firm could also remain in the
running for the sofa chain, some of the people said.
LONDON, Feb 16 (Reuters) – Securities and investment banking
group Jefferies <JEF.N> has set up a European “event-driven”
desk, hoping to capitalise on a pick-up in mergers and
acquisitions (M&A) after Kraft Foods Inc’s <KFT.N> $18.4 billion
takeover of British chocolate-maker Cadbury.
The five-man London team, headed by Chris Blackburn, will
work in tandem with a six-strong New York desk, offering sales,
trading and analysis of European stocks involved in M&A,
financial distress and other so-called “special situations”.