DealZone

Deals wrap: Merger Monday

Google said it will buy Motorola Mobility for about $12.5 billion in cash in a move to bolster the adoption of its Android mobile phone software.

“Before we get all excited about Google’s biggest acquisition ever, the $12.5 billion planned purchase of phone-handset maker Motorola Mobility, let’s pause and think about Washington,” cautions the WSJ.

Carl C. Icahn, who has long pushed for change at Motorola Mobility, will see the value of his shares in the company rise to just over $1 billion, up from $655.8 million on Friday, reports DealBook.

To wrap-up the Google coverage, see Felix Salmon’s take on the value of an M&A  scoop and this graphic on Google’s top acquisitions.

Time Warner Cable said it will buy Carlyle Group’s cable operator Insight Communications for $3 billion in cash, to broaden its presence in midwest United States.

from Felix Salmon:

Whither the M&A scoop?

You've heard it here and everywhere: Google is buying Motorola Mobility for $12.5 billion. But here's the media twist to the story: you didn't hear it anywhere first.

Deal scoops are the most basic currency of business journalism. Once a deal is certain to get done, but before it's officially announced, an M&A banker on one side or the other (it's nearly always the bankers, rather than the lawyers or the actual companies doing the deal), tactically leaks news of the deal to a carefully-chosen source.

Virtually everybody wins when this happens. The leak always takes place when markets are closed, so there's no risk of insider trading on the news. The banker leaking the news gets to control the story, since the journalist isn't going to call around before publishing it. And the journalist gets a big scoop.

Deals wrap: M&A not immune to Euro crisis

Shadows that started to fall over the pitch books of European dealmakers in the second quarter are darkening, threatening to rob banks of a few billion dollars in potential M&A fees.

After a robust first quarter boosted by mega transactions like Deutsche Telekom’s $39 billion exit from the U.S., fears about stuttering growth and Europe’s mounting debt crisis slowed the rise to only 24 percent in the second quarter, reversing hopes of a robust rebound and several years of rising M&A.

Analysts are pointing toward September as a key time frame if M&A’s have any hope of rebounding, with SABMiller’s  expected renewed assault on Australian bid target Foster’s  coming later this month.

Deals wrap: The perils of Paulson

Hedge fund manager John Paulson became an overnight sensation in 2007, in part, by betting big and early on the collapse of the U.S. housing market. But he is now emerging as one of this year’s big losers in the $2 trillion hedge fund industry.

New China Life, the third-largest life insurer in China, has filed an application to list in a dual Hong Kong and Shanghai IPO, sources said, braving volatile markets to raise up to $4 billion.

Bank of America has held exploratory talks with the principal investment funds of Kuwait and Qatar about selling part of its $17 billion stake in China Construction Bank, three sources with direct knowledge of the talks told Reuters.

Deals wrap: Valuing Groupon

Groupon trimmed marketing costs in the second-quarter but its loss more than doubled as it hired new employees, the Internet daily deals company said in an update filing for its IPO.

Global brewer SABMiller is set to renew its assault on Australian bid target Foster’s later this month with a slightly higher offer likely to succeed after rival bidders fail to appear, bankers and investors told Reuters.

HSBC is selling its U.S. credit card arm to Capital One Financial Corp in a $32.7 billion deal as Europe’s top bank streamlines its mammoth operations.  Capital One said it was paying a $2.6 billion premium over the value of the loans.

Deals wrap: Capital One beefs up credit card portfolio

HSBC is nearing a deal to sell its $30 billion-plus U.S. credit card business to Capital One, sources familiar with the situation said.

Investors who bet big money on the outcome of merger and acquisition deals are scurrying as a plunging stock market jeopardizes many transactions.

Even hedge fund superstars who outsmarted the housing collapse and battered financial sector might soon be telling their investors that they suffered double-digit losses during the last few days, managers and investors forecast.

Deals wrap: Buffett makes a bid for Transatlantic Holdings

Shares in reinsurer Transatlantic Holdings rose more than 8 percent on Monday despite broad and deep market declines, after Warren Buffett’s Berkshire Hathaway made an unsolicited offer over the weekend to buy the company. The NYT looks at the chances of the deal getting done.

As broad economic worries pound the markets, a growing number of IPOs are being delayed or pulled. Tech IPOs, whose multibillion valuations recall the heady days of the dotcom boom of the late 90s and early 2000s, might fall the furthest.

Telmex, once the cornerstone of tycoon Carlos Slim’s empire, is set to delist from public markets as the world’s richest man, true to his style, shows his eye for a cheap deal, reports Cyntia Barrera Diaz and Tomas Sarmiento.

Deals wrap: What’s going on at Kraft?

Kraft bought Cadbury then split in two with CEO Irene Rosenfeld at the helm. Brad Dorfman and Martinne Geller look into what exactly is going on. The WSJ provides a brief history of the company.

Kraft’s split is the latest in what is shaping up to be the year of the spin-off, and multiplying banker fees.

The crumbling of mega-merger talks between Japanese industrial behemoths Hitachi and Mitsubishi Heavy Industries threatens a rare opportunity for Japan to improve its global competitiveness by consolidating century-old companies.

Deals wrap: Splitting Kraft

Kraft said it would split itself into two listed companies, a global snacks business and a North American grocery business, and raised its full-year outlook on better-than-expected quarterly results.

Hitachi and Mitsubishi Heavy Industries have begun talks on what would be Japan’s biggest domestic merger, three sources said, heralding a long awaited shake-up of the nation’s industrial behemoths.  Japan Real Time reports on the clumsy merger kabuki which followed a leak to local media.

When Goldman Sachs executed a $479 million block share sale in ICBC this week to help American Express  hedge its position in the Chinese lender, it underscored the sensitivities and challenges of dealmaking in China.

Deals wrap: China’s shortcut to Wall Street

A examination of a cross-section of 122 Chinese reverse mergers on U.S. markets found that between each stock’s peak trading price and July 10, 2011, those companies saw a total of $18 billion of their market capitalization vanish. Reuters is exploring the extent and impact of corporate secrecy in the United States in a series of articles.

Expect more hostile deals in resources as cashed-up miners turn desperate to snare targets, deal advisers say, following Peabody Energy and ArcelorMittal’s change of tack this week on their $5.3 billion bid for Macarthur Coal.

Private equity and venture capital-backed initial public offerings in Asia have surged 77 percent in the year to date to the highest level ever, according to the latest Thomson Reuters data, as funds look to show returns to investors ahead of new fundraisings.