DealZone

Spotting a trend is an essential skill for M&A reporters. Is the sector consolidating? Collapsing? Where will the next deal be? Following is a list of M&A stories and the trends they may foretell.

More takeovers likely for hard-hit satnav firms (Reuters)
“Following several takeovers, remaining players in the satellite navigation sector are rethinking strategies and some are set to sell out under pressure to survive, industry sources and analysts say.”

New doubts surface over AIG’s $2.2 billion Nan Shan deal (Reuters)
“The bid raised concern among Taiwanese politicians about the mainland’s intentions toward Taiwan, which Beijing views as a renegade province.”

Duane Reade and Its Road to Health (NYT)
“But Duane Reade is as much a story about selling milk and toothpaste at 2 a.m. as it is about Wall Street, financial engineering and shifts in the private equity industry.” – NYT

Tengzhong may buy Hummer via offshore vehicle (Reuters)
“Support from Beijing has been critical for Chinese firms that have embarked on a series of deals to pick up distressed assets from a global auto industry reeling from overcapacity and sharply depressed demand during the worldwide recession.”

Wal-Mart Adds Its Clout to Movie Streaming (NYT)
“The acquisition adds a forceful player to what is already a crowded field of companies aiming to deliver streamed entertainment to the living room.” – NYT

Walt Disney is leading a group effort to buy into China’s largest bus-based digital media and advertising company, Bus Online. The investment would be peanuts for Disney, but the headache could wind up being jumbo sized because one of their investors in the bus deal, sources tell us, is Google.

Google threatened to quit China only a few weeks ago and the internet search giant is finalizing a deal that will let the U.S. National Security Agency (NSA) help it investigate the corporate espionage attack it thinks originated in the People’s Republic. China has warned the U.S. not to make politics out of the Google issue, but it may be too far into the saber-jangling season for that, with Barack Obama having announced fresh U.S. weapons sales to Taiwan in his State of the Union address.

Though Google’s stake in the Bus Online deal is said to be small, even smaller than the tiny investment this will be for media giant Disney, it could just be big enough to cause headaches for Mickey and Co.

Highlights from the Thomson Reuters Investment Banking scorecard:

QATAR PRICES BIGGEST MIDDLE EASTERN BOND ON RECORD
This week’s $7 billion offering from the State of Qatar marked the largest bond offering from a Middle Eastern issuer on record and the second multibillion dollar offering from Qatar this year.  For year-to-date 2009, debt capital markets activity from Middle Eastern issuers totals $38.6 billion, a 120% increase over last year at this time.
The offering, which was led by Barclays, Credit Suisse, Goldman Sachs, JP Morgan and Qatar National Bank, bested the previous Middle Eastern record, a $3.2 billion offering from UAE-based real estate developer, Nakheel Co PJSC.

TECH DEALS DOMINATE RECORD TAIWAN M&A ACTIVITY
Taiwan’s Innolux Display Corp agreed to merge with Chi Mei Optoelectronics Corp, a manufacturer of LCD TV panels in a merger valued at $13.1 billion, including debt.  The deal ranks as the largest merger in Taiwan’s history.
M&A activity in Taiwan totals $26.1 billion for year-to-date 2009, nearly five times last year’s total and the largest annual period for M&A activity in Taiwan on record.  High technology mergers account for just over 60% of activity in Taiwan this year, while financials account for $6.1 billion or 23%.

UNITYMEDIA IN BIGGEST BUYOUT EXIT THIS YEAR
Germany’s Unitymedia GmBH, a provider of cable television and internet services was acquired by Englewood, Colorado-based Liberty Global Inc in a deal valued at $5.2 billion.  A portfolio company of BC Partners and Apollo Management LP, the sale marks the biggest M&A exit for a buyout consortium this year.
Worldwide M&A activity for buyout-backed companies totals $75.0 billion for year-to-date 2009, a 58% decrease from last year at this time when activity totaled $177.5 billion.