DealZone

Deals wrap: Wanting a bigger voice

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Chemicals maker Ashland said it will buy International Specialty Products for about $3.2 billion in cash to expand in high-growth markets such as personal care, pharmaceutical and energy.

South Africa approved Wal-Mart’s $2.4 billion bid for local retailer Massmart without conditions that could have jeopardized the deal, opening the door for the U.S. giant to expand into fast-growing Africa.

“Opposition is steadily growing to AT&T Inc.’s proposed $39 billion takeover of T-Mobile USA, as competitors, state regulators and elected officials have come out in recent days expressing concerns about the acquisition from Deutsche Telekom AG,” reports the Wall Street Journal.

Luggage maker Samsonite, backed by private equity firm CVC Capital Partners, moved closer to a $1.5 billion Hong Kong IPO, setting an indicative range for the deal as it bet on booming Asian demand.

Deals wrap: MGM China IPO may be a gamble for investors

Macau casino operator MGM China, co-owned in part by casino mogul Stanley Ho’s daughter Pansy Ho, raised $1.5 billion from its Hong Kong initial public offering after pricing it at the top of its indicative range, triggering some concerns about lofty valuations.

Gambling revenues in the world’s largest gaming market are at record highs, dwarfing those of Las Vegas and fueling a surge in share prices of local casino operators that boosted demand for MGM China’s IPO.

But the rally may have pushed stock prices in the sector too far, reducing their appeal to some investors according to some analysts.

Deals wrap: Maple’s hostle bid for TMX may change exchange landscape

The London Stock Exchange faced an increasingly bitter battle for control of Canadian peer TMX Group after rival bidder Maple Group took its higher offer directly to shareholders.

Maple Group of Canadian banks and pension funds hostile $3.7 billion bid for TMX hopes to galvanize simmering nationalistic opposition to a foreign takeover of the country’s main exchange.

While the LSE is countering with the argument that its takeover would give TMX a launching point to the international stage, TMX shareholders’ decision could determine not only the fate of TMX but also that of the LSE.

Deals wrap: Treasury sells stake of AIG

The Treasury made a small profit when it sold a portion of its shares in AIG, but it was unclear how its investment in the beleaguered insurer will ultimately fare.

Tuesday’s $8.7 billion stock offering, (being dubbed by some as AIG’s re-IPO) which included 200 million shares sold by the Treasury and 100 million sold by AIG itself, is far smaller than the $10 billion to $20 billion deal some banking sources had suggested earlier this year, hinting at a potential lack of investor interest.

With the sale, the Treasury has raised $5.8 billion of the $47.5 billion it needs to break even and now has another 1.5 billion shares to sell.

Deals wrap: Glencore disappoints while Yandex confirms price

Even though sources close to Glencore felt the commodities trader had left “money on the table” with an offer price of 530 pence that valued the company at $59.15 billion, the company’s shares were stuck under water on their first day of official trade, dashing hopes of a strong start.

While some analysts still expressed concern over Glencore’s valuation, several analysts and bankers brushed aside worries about the stock trading below the offer price. They said the market debut should be seen as a success given its size and the continued uncertainty in both commodity and equity markets.

In other news Yandex’s initial public offering, the Internet sector’s biggest U.S. float since Google, was 17 times oversubscribed, a source said, with demand boosted by a blow-out float of LinkedIn.

Deals wrap: Jimmy Choo sold to Labelux

Upscale British shoemaker and retailer Jimmy Choo was bought by luxury goods group Labelux from TowerBrook Capital Partners, the companies said.

The companies did not disclose terms of the deal, but two sources familiar with the deal said it was worth about $812 million.

The deal, according to Footwear News, will help Jimmy Choo makes inroads into the Asian market thanks in part to Bally’s strong presence in the area. Labelux purchased Bally’s in 2008 but added that the two brands will operate independently.

Deals wrap: Copycats sure to follow LinkedIn

A day after LinkedIn’s shares more than doubled in their public trading debut, analysts are scrambling to explain why the stock exploded and figure out what happens next.

The professional networking site’s IPO was being closely watched by Facebook, Groupon, Twitter and Zynga to gauge investors’ appetite for Internet companies.

Facebook COO Sheryl Sandberg described a public offering of Facebook shares as “inevitable,” while Evelyn M. Rusli over on DealBook predicts a surge in Internet IPO’s but doesn’t think the market is setting itself up for another tech bubble burst.

from Jeremy Gaunt:

What dot.com bubble?

The IPO of  LinkedIn has triggered warnings about a new internet bubble. The business was valued at $11.6 billion and its shares closed up 109 percent on launch day.

It is worth remembering that the internet or dot.com bubble ran from roughly 1995 until it burst spectacularly in 2000 (or 'the year 2000' as we rather quaintly called it at the time). Assuming you start a serious job in the finance industry at 23, that means no one under 34 really has any concept of the bubble and no one under 39 would have seen the whole thing through.

Short memories -- or none at all?

 

from Jeremy Gaunt:

Dot.com what?

The IPO of  LinkedIn has triggered warnings about a new internet bubble. The business was valued at $11.6 billion and its shares closed up 109 percent on launch day.

It is worth remembering that the internet or dot.com bubble ran from roughly 1995 until it burst spectacularly in 2000 (or 'the year 2000' as we rather quaintly called it at the time). Assuming you start a serious job in the finance industry at at 23, that means no one under 34 really has any concept of the bubble and no one under 39 would have seen the whole thing through.

Short memories -- or none at all?

 

Deals wrap: Glencore debuts while markets await LinkedIn

Commodities trader Glencore made a steady market debut with shares trading just above the widely expected launch price of 530 pence, giving it solid currency for potential acquisitions.

There was heavy interest in the stock on both the London and Hong Kong exchanges, due in part to the relatively small amount of shares being sold. Glencore’s Chief Executive and largest shareholder Ivan Glasenberg said demand for the shares “significantly” exceeded the amount available.

Analysts on Thursday said the 530 pence per share level was realistic and should mean strong aftermarket support. “Obviously everything is priced to do well. I don’t know whether five to ten percent upside is in the bag or not, but certainly they are trying to please investors with the price,” analyst Tim Dudley at Collins Stewart said.