DealZone

Keeping score: Withdrawn M&A and private equity buyouts

Highlights from the Thomson Reuters Investment Banking Scorecard:

Corporate M&A loses out …

Xstrata abandoned its $42.5 billon merger with Anglo American on Oct. 15, making it the largest withdrawn transaction this year. Withdrawn M&A has reached $205 billon so far in 2009.

The banks advising both parties would have earned an estimated $150.7 millon if the transaction had gone through. Deutsche, Lazard and UBS each lose a place in the global M&A rankings, falling to sixth, eighth and ninth, respectively, due to the failure. In Europe, Goldman Sachs loses the top spot, falling to third, while Normura drops out of the top 25 from 12th spot.

Morgan Stanley and Credit Suisse take first and second position in the year to date European rankings.

… but private equity scores a hit:

CVC Capital Partners agreed to acquire the Central European operations of Anheuser-Busch Inbev for $3 billion, in a leveraged buyout transaction on Oct. 15.

This is the second largest European private equity backed M&A deal year-to-date, bringing the total value of private equity activity to $23 billion so far this year.

Keeping score: U.S. bonds, European convertibles, Chinese IPOs

From this week’s Thomson Reuters Investment Banking Scorecard:

· US CORPORATE DEBT TOPS $20 BILLION, BREAKS RECORD

For the second consecutive week, the volume of corporate investment grade debt in the US market topped the $20 billion mark, bolstered by benchmark names in the energy & power and financial sectors.   Shell International Finance raised $5 billion via Morgan Stanley, Bank of America Merrill Lynch and Deutsche Bank, while Canada’s Cenovus Energy raised $3.5 billion this week.

Investment grade debt activity from non-financial issuers totals $372.3 billion for year-to-date 2009, already besting the previous all-time record for annual non-financial activity set in 2001 when $360.5 billion in new corporate issues were brought to market.

· EUROPEAN CONVERTIBLE BONDS UP 50%
While global convertible bond activity is down 46% over 2008, the market for convertible bonds in Europe has picked up dramatically, with $24.1 billion in new convertible offerings – a 50% year-over-year increase.  Issuers in the materials, financial and industrial sectors account for nearly 60% of this year’s volume in Europe.  Deals from Anglo American, Arcelor Mittal and Alcatel Lucent top the list of convertible offerings this year.