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DealZone

Behind the deals and deal-makers

May 8th, 2008

Britannia rules the deals

Posted by: Adam Pasick
Tags: DealZone

union-jack.jpgWith no news about the only news stateside — Microsoft has no plans for another Yahoo bid, and News Corp is not in talks with Microsoft, Yahoo, or AOL – the Deals Today team turns its attention across the pond.

Best Buy, the world’s biggest electronics retailer, is to pay $2.1 billion for half of Britain’s Carphone Warehouse chain to take on the European consumer electronics market. The deal creates a joint venture that targets a growing appetite for big screen TVs and other gadgets, although it faces a tough economic climate that could depress purchases of iPods and other electronic doo-dads.

Spanish energy group Iberdrola is putting the finishing touches to a bid for UK nuclear power generator British Energy Group and may bid with partners, newspapers reported on Thursday. British newspaper The Times said Iberdrola, which owns Scottish Power, is expected to put forward an offer before a deadline set for Friday by Rothschild, the investment bank handling the sale. France’s EDF also met on Wednesday to give the go-ahead for its bid for British Energy, the Times reported.

Britain’s Enodis, a maker of fast-food fryers, has agreed to be bought by Illinois Tool Works for 1.03 billion pounds ($2 billion), turning its back on the agreed 948 million pounds takeover by U.S.-based Manitowoc. Shares in Enodis opened above the new 280 pence per share offer price, meaning investors believe Manitowoc will come back with a higher offer. Illinois Tool Works (ITW) makes cooking and other kitchen equipment among its broad range of other tools and products, while Manitowoc makes cranes and restaurant equipment.

Other deals:

** Abu Dhabi Commercial Bank bought a $1.23 billion stake in Malaysia’s fourth largest lender, RHB Capital, in a bid to exploit growing commercial ties between the Middle East and Asia.

** South Korea’s Hynix Semiconductor Inc said it plans to buy an 8-10 percent stake in Taiwan rival ProMOS Technologies worth up to $180 million, deepening cooperation in the midst of a lengthy industry downturn.

One comment so far

The UK market, much like the US market is open and liberal, any company can buy any company.

In other European countries, the national governments interfere if one of the companies in their country is a potential target.

No liberal policy and too much state interference does not allow a level playing field, and one must applaud the UK and US for their manner in doing business.

- Posted by Mike

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