DealZone

Deals du Jour

Trading giant Glencore is the front-runner to buy a 51 percent stake in Chemoil Energy from the family of the founder Robert Chandran, sources told Reuters. The stake in the marine fuel supplier could be worth about $240 million.

Other deals reported by Reuters and other media on Wednesday include:

CITIC 1616 Holdings is seeking to buy international direct dialing and mobile value-added service assets in the Asia Pacific region by the end of 2009, a senior executive told Reuters.

European Union antitrust regulators approved German utility RWE’s 8.2 billion euro ($11.4 billion) takeover of Dutch peer Essent on the condition that it sell Essent’s controlling stake in a German unit.

Bank of New York Mellon, Sumitomo Trust & Banking Co and insurer T&D Holdings are the remaining three contenders to buy Citigroup’s Japanese asset management unit in a deal expected to top $1 billion, the Nikkei business daily reported.

State Bank of India, the country’s top lender, aims to buy a mid-sized bank abroad for $1.5 billion to $2 billion to expand its global reach, India’s Economic Times said, citing an unnamed official. It is looking at banks in countries with strong trade links with India, the paper said.

The Office: More tragedy than comedy for UK banks

Pedestrians walk in the financial district of Canary Wharf in London March 24 2009. With property markets stabilising and hopes that the worst of the financial crisis is behind us, Europe’s banks are now looking to resolve their next biggest problem: 225 billion pounds of loans backed by UK commercial property.

As Sinead Cruise and I wrote earlier today, banks are now organising to sort through this massive debt pile, picking the good from the bad, foreclosing on properties and selling off what they can.

“Lenders have long turned a blind eye to breaches of covenants as long as they met interest demands by collecting rents. But they are now abandoning this softly-softly approach as the British economy worsens, planning foreclosures on a scale not yet seen in this cycle.”

Gone Shopping

As Steve Slater and I wrote earlier:

“British bank Barclays has sidelined private equity houses bidding for iShares, its exchange-traded fund unit, and is looking to sell its entire asset management arm instead if offers approach $12 billion.

“U.S. money manager BlackRock and Bank of New York Mellon are among the interested bidders for Barclays Global Investors (BGI), the world’s biggest asset manager, people familiar with the matter said.”

Looking to boost its capital position and to justify its decision not to take state aid, Barclays is aiming to maximize the proceeds from any asset sales.

Deals du jour

Top deals news today includes LSE boss mulling new acquisitions, BC Partners downing tools on a BGI bid and Fiat signing a big Chinese joint venture. All the latest deals news here.

In the morning papers:

The new chief executive of London Stock Exchange Xavier Rolet has told La Tribune newspaper that he is ready to look at acquisitions and alliances but is not treating them as a priority. Reuters story here.

Borders UK, the bookshop chain owned by private equity firm Risk Capital Partners, has appointed restructuring experts RSM Bentley Jennison to advise on closing underperforming stores, The Independent reported.

Deals du jour

Top deals news today includes Fiat boss’s confidence about an Opel takeover, Regions Financial planning a $1.25 billion stock offer, Aussie Rio shareholders seeking a new Chinalco deal and Novartis buying cancer drugs unit. All the latest deals news here.

In the morning papers:

Fiat SpA has more than a 50 percent chance of successfully linking up with Opel, La Stampa said, citing chief executive Sergio Marchionne. Reuters story here.

British pub company Mitchells & Butlers is in talks with banks over a possible rights issue, the Financial Times reported.

Deals du jour

A man looks at local newspapers, with articles regarding France's President Nicolas Sarkozy's visit on their front pages, at a news kiosk in Mexico CityA Facebook IPO is a few years off, Bank of America raises $13.47 billion in a share sale, GM’s bankruptcy plan envisages a quick sale to government, and more. Here are the latest deal-related stories:

Facebook CEO says IPO a few years out

Bank of America raises $13.47 billion in share sale

GM bankruptcy plan eyes quick sale to government

SolarWinds IPO prices at $12.50, above range

IBM to continue being active dealmaker

Itau interested in buying small banks in Brazil

Broadcom urges Emulex investors question rosy view

Viterra to buy Australia’s ABB for $1.2 billion

Investors expect better hedge fund terms

And in the morning papers:

Global mining company Rio Tinto may replace the $7.2 billion convertible bond that is part of its tie-up with Chinalco with a capital raising underwritten by the Chinese firm, The Australian newspaper said. Reuters story here.

India’s Religare Enterprises and Australia’s Macquarie Group have jointly bid $500 million to buy AIG Investments, which manages $100 billion in client funds globally, according to The Times of India.

MACs are big

A demonstrator wearing a model of a hamburger on his head protests in Munich

And earn-outs are in. So says a new survey looking at almost 500 European deals from 2007-08 (most below $500m). As I wrote:

“The balance of power in European mergers and acquisitions (M&A) has shifted towards buyers, with deals containing more legal safeguards against a purchase turning sour, a survey released on Tuesday showed.

“The survey, by lawyers and accountants CMS, found more deals now contain ‘earn-out’ or ‘material adverse change’ clauses to protect buyers, and they often get longer to assess if a business is all it was promised to be.”

Better late than never?

A giant sculpture constructed with the faces of clocks is seen outside a Paris train station

Is now the time to be bulking up in M&A and other kinds of corporate finance advice?

On Monday, Societe Generale trumpeted the hire of a top French dealmaker from JPMorgan — the auspiciously named Thierry d’Argent — and reiterated its big plans for European M&A. Daiwa Securities SMBC agreed to buy mid-market corporate finance house Close Brothers Corporate Finance. Meanwhile Barclays Capital is making lots of equity markets hires, and says it aims to be one of the world’s top full-service investment banks.

As I wrote:

“A clutch of banks with previously limited reach in European takeovers and other corporate advisory work are betting now is a good time to grab market share — before the dealmaking business recovers.

Deals du jour

A journalist inspects a board with newspapers and magazines during the annual news conference of German publisher Axel Springer in BerlinState Street is selling $2 billion of stock, Morgan Stanley expects more listed company share sales and billionaire Kirk Kerkorian strikes his latest deal, and more. Here are the latest deal-related stories:

State Street sells stock, takes $3.7 billion charge

Morgan Stanley exec sees more follow-ons

Kerkorian buys MGM Mirage shares, stake now 42 percent

Fujitsu eyes more M&A to boost software operations

Lehman seeks OK to probe Barclays payment

Kona Grill shareholder offers to take company private

Morgan Stanley to sell remaining stake in MSCI

And in the morning papers:

The U.S. Treasury has preliminarily granted BlackRock Inc a second-recond interview to buy toxic assets from U.S. banks, using taxpayer money, the Wall Street Journal said on its website.

German retailer Arcandor AG‘s Chief Executive, Karl-Gerhard Eick, said he opposed Metro AG‘s proposal to combine the two companies’ department store chain, Sueddeutsche Zeitung reported. Reuters story here.

Last week in columns

A visitor walks inside Attalos arcade at archaeological site of Roman agora in Athens

There’s been plenty of deal-related argument from the fast-expanding stable of Reuters columnists over the last week.

Anglo-Spanish dealmaking has a chequered recent history — look no further than Ferrovial’s (FER.MC) disastrous takeover of airports operator BAA. But this shouldn’t put British Airways (BAY.L) and Iberia (IBLA.MC) off fast tracking their planned tie-up to help stem losses, says Alexander Smith.

Tech columnist Eric Auchard says while Larry Ellison, Oracle Corp’s chief executive, “is not saying so directly yet … the unmistakable conclusion to draw is that he is ready to embark on a new wave of mergers to consolidate the business computer market, once the Sun deal closes.”