M & A wrap: Hulu auction at risk
The auction of online video site Hulu has been slowed by recent developments which could derail it completely, according to sources familiar with the process.
Diversified manufacturer Tyco is moving to separate its businesses into three independent publicly traded companies, becoming the latest U.S. conglomerate to do so.
Consumer groups will try to convince the Federal Reserve this week that rubber stamping the Capital One takeover of ING’s online banking unit would prove that “too big to fail” is alive and well.
The troubles at Yahoo are proving to be a headache for AOL, that other deeply challenged Internet company trying to turn around its fortunes, reports Jennifer Saba.
“Google’s slogan may be don’t be evil, but a growing chorus of antitrust regulators in the United States and Europe want to know if the company has lived up to that creed,” reports the NYT.
“The great threat to competition for wireless data and mobile phones is not mergers—it’s government failure to free enough spectrum to meet demand,” reports the WSJ.
M & A wrap: Who’s interested in Yahoo?
Private equity firm Silver Lake is considering a bid for Internet firm Yahoo, according to media reports.
Fifteen Democratic lawmakers asked the Obama administration to approve AT&T’s proposed purchase of T-Mobile USA.
Duncan Niederauer’s embrace of Deutsche Boerse is transforming NYSE Euronext’s “merger of equals” into the worst takeover in America, reports Bloomberg.
Reinsurers Allied World and Transatlantic Holdings called off their merger in the face of overwhelming opposition, leaving the fate of Transatlantic uncertain amid two larger, unsolicited offers.
“A Chinese company few Americans have heard of is gearing up for what could be the largest Internet IPO in U.S. history,” reports the WSJ.
Read this week’s Investment Banking Scorecard for an overview of the week in M&A, capital markets and syndicated loans.
M & A wrap: Groupon’s back on track
Groupon seeks to go public in October or November, people familiar with the matter told the New York Times, a week after the daily deals website put its IPO on hold for a few weeks as it waited to ride out global market turmoil.
Rather than wasting time and money with a costly takeover battle with Ralcorp and its strong takeover defenses, ConAgra may soon look at other deals in the private-label business, a source familiar with the situation said.
“A range of major players interested in acquiring all or a large piece of Yahoo have been prepping possible bids and have been in touch with the Internet giant’s board over the last several days,” reports AllThingD.
Facebook might go public, but it doesn’t need to, writes Dan Primack.
For your morning distraction, turns out the actor who played Darth Vader still has not received residuals from the 1983 film “Return of the Jedi” because the movie still has no technical profits to distribute. Can you hear the sound of Darth Vader’s breathing? He doesn’t sound happy.
M & A wrap: Moody’s cuts French banks
Moody’s cut the credit ratings of two French banks because of their exposure to Greece’s debt, highlighting growing risks to Europe’s financial sector from a deepening euro zone sovereign debt crisis. In an opinion piece, the WSJ reports the French financial system maintains too close a relationship to the state.
Google raised its offer for Motorola by 33 percent to $12.5 billion over two weeks of negotiations between the two companies, according to a regulatory filing.
The chief executive of Anglo American, Cynthia Carroll, has downplayed speculation that the miner is on the hunt for acquisitions, the Financial Times reports.
“Bruce Kovner is betting he can pull off what eluded Stanley Druckenmiller and Julian Robertson: Keeping his hedge fund alive after retiring from trading client money,” reports Bloomberg.
The NYT’s Deal Professor takes a look at the Merrill Lynch and Lehman deals:
One of these deals has been a success. The other is questionable. The difference shows not only how a chief executive’s hubris can destroy a company, but how three years later, the failure of the Treasury Department, Federal Reserve and the banks themselves to shrink significantly the banks’ mortgage liabilities still threatens our economy.
M & A wrap: Negotiating the split
McGraw-Hill is planning to split itself into two public companies with one focusing on its credit rating business and the other on textbooks and educational products. Which company will be the better investment?
“Under pressure from investors to fix the ailing McGraw-Hill Cos., Chief Executive Officer Harold “Terry” McGraw III disregarded his family’s legacy when deciding to break up the business founded in 1888,” reports Bloomberg in a profile of the CEO.
Hewlett-Packard has extended the deadline for its $11.2 billion takeover of British software company Autonomy, with analysts predicting the U.S. firm is on course to succeed.
“Now that Yahoo has fired its chief executive, anything could happen to the rudderless Internet hodgepodge. Private equity firms, one of Yahoo’s founders and even AOL are said to be mulling bids. But consider a more radical option: a takeover by the rival most responsible for Yahoo’s fall from grace — Facebook,” writes Breakingviews columnist Rob Cox.
M & A wrap: HSBC Holdings to sell unit
HSBC Holdings has launched the sale of its non-life insurance business, sources told Reuters, a global division worth about $1 billion and now part of the bank’s plan to strip away non-core units.
Suzuki Motor wants to end its two-year-old alliance with Volkswagen after the German carmaker accused it of violating their partnership pact by agreeing a diesel engine deal with Italy’s Fiat.
“Much of the blame for Yahoo Inc.’s lack of revenue growth in recent years fell on Chief Executive Carol Bartz. Now, that investor angst has shifted to Yahoo Chairman Roy Bostock,” reports the WSJ.
Wireless chipmaker Broadcom agreed to buy NetLogic Microsystems for about $3.7 billion to extend its range of chipmaking technology for more advanced networks.
For your morning distraction, here’s the TechCrunch/AOL saga told as a Star Wars tale.
M & A wrap: Regulating foreign defense M&A
U.S. regulators are increasingly taking a tougher stand on foreign takeovers in the defense sector to protect technology designed to deal with the growing and unseen threats of the cyber age, senior industry dealmakers said at the Reuters Aerospace and Defense Summit this week.
Ticonderoga Securities cut boutique investment bank Lazard to “neutral” from “buy,” saying U.S. and European debt concerns and tougher regulation of large deals would hurt recovery in merger activity.
Shares of Volkswagen and Porsche slipped on Friday, as the automakers’ merger plans faced difficulties, reports DealBook.
The Atlantic delves into what a Bank of America breakup would look like.
“Deutsche Telekom and AT&T have vowed to fight together in court to rescue a $39 billion sale of T-Mobile USA. That display of unity masks their divergent interests should those efforts fail,” reports Bloomberg.
“The Google Zagat acquisition has to be blocked, reversed, annulled, undone, or whatever the right word is, to protect consumers, to protect restaurant owners, and to protect competitors,” writes Business Insider contributor Eric Clemons.
M & A wrap: AstraZeneca in the mood for a deal?
AstraZeneca may decide to make a big acquisition if it fails to improve the flow of new drugs from its pipeline and its $10 billion cash pile hints at a desire to keep strategic options open, according to an analyst report.
The Washington Post has lost money for three years and some shareholders of owner The Washington Post Co wouldn’t weep if the paper were sold, allowing the company to focus on its for-profit education and cable businesses, write Sruthi Ramakrishnan and A. Ananthalakshmi.
Singapore Exchange’s coup in luring Manchester United to the city is threatening to turn sour as the bourse comes under fire for plans to let the club list using a structure that will minimize the influence of new shareholders.
SABMiller is set to launch its formal takeover for Foster’s Group this month after an Australian regulator rejected its claim that Foster’s had made misleading financial statements as part of a hostile $10.1 billion bid battle.
Victor Muller, the man who came to Saab’s rescue the last time it was on the brink of collapse, is famous for his unbounded optimism, but even fans of the marque wonder if the 51-year-old car enthusiast may have to admit defeat.
M & A wrap: Facebook’s revenue hits $1.6 billion in H1
Facebook’s revenue rose to $1.6 billion in 2011′s first half, a source with knowledge of its financials told Reuters.
Yahoo Chairman Roy Bostock fired CEO Carol Bartz over the phone on Tuesday, ending a tumultuous tenure marked by stagnation and a rift with Chinese partner Alibaba.
Yahoo’s new CEO should keep the strategy of Bartz in resisting attempts by Alibaba to end their venture, Bloomberg reports.
“With the Yahoo board firing Bartz as chief executive, the the onetime Internet giant’s already clouded future just got murkier — and might make it a takeover target once more,” reports DealBook.
Former BP boss Tony Hayward has returned to the oil business with an agreement to acquire Turkish explorer Genel Energy via a reverse takeover to create a Kurdistan-focused group worth $4 billion.
ConocoPhillips will divulge more details on Wednesday about its plan to split in two and analysts say the focus will likely be on its chemical joint venture, Canadian oil sands assets and pipelines.
Chinese online business-to-consumer retailer Jingdong Mall kicks off its U.S. IPO process next week, aiming to raise $4-5 billion in what could be the biggest-ever internet IPO in the United States, IFR said.
M & A wrap: Carlyle steps up
Carlyle Group filed for a $100 million offering for its common units, making it the latest private equity group to list on public markets.
It’s been a rough summer for U.S. initial public offerings after the stock market nosedived, but tech issues could see strong demand after bankers and fund managers return from vacation in September, reports Clare Baldwin.
International Paper won its bid for rival packaging producer Temple Inland. The company raised its bid 5 percent to $32 per share, roughly $3.7 billion, to convince a skeptical Temple board.
“Another wave of Chinese acquisitions is expected soon as the Asian superpower seeks to diversify investments beyond the underperforming greenback, and as share price falls translate to cheaper purchases,” reports The Australian.
Moving on the T-Mobile debate:
Deutsche Telekom AG could miss out on a multi-billion dollar break fee if regulatory hurdles cause the failure of its $39 billion deal to sell T-Mobile USA to AT&T, a person familiar with the matter said.
“If there are conditions to be attached to the transaction, we will work on the matter together with AT&T,” Deutsche Telekom spokesman Philipp Kornstaedt told Bloomberg.
“The government’s antitrust lawsuit is bad news for AT&T, but it’s potentially disastrous for T-Mobile,” reports CNNMoney.
