DealZone

M&A wrap: Buffett trades off his reputation

Warren Buffett showed again that his name and money is enough to give a struggling company instant credibility in the market. But the legendary investor also demonstrated his canny command of that reputation means that deals such as the $5 billion investment in Bank of America can immediately generate profits.

Anglo-Irish bank has chosen preferred bidders for its $9.5 billion U.S. commercial real estate loan portfolio and aims to have completed that sale, the largest in the United States in recent years, before the end of the year.

Glencore, the world’s largest commodities trader, stood on the verge of its largest takeover bid since its May stock market listing, after South Africa’s Optimum Coal confirmed it had received approaches.

The New York Times’ Dealbook is reporting that Rio Tinto and the Mitsubishi Corporation have raised their offer for Coal & Allied to approximately $131 a share , valuing the company at about $11.6 billion.

The blogging service Tumblr is close to raising $75-$100 million in venture capital, implying a market value of $800 million, the Wall Street Journal reported, citing people familiar with the matter.

M & A wrap: A Buffett bailout for BofA

Warren Buffett’s Berkshire Hathaway will invest $5 billion in Bank of America, stepping in to shore up the company in the same way he helped prop up Goldman Sachs during the financial crisis.

Bank of America shares rose 20 percent in pre-market trading on the news. Shares for the largest U.S. bank by assets have lost roughly a third of their value in August, and half their value since the beginning of the year.

The news of Steve Jobs’s resignation had many of his peers weighing in on the Apple co-founder’s legacy. Former Google CEO Eric Schmidt said Jobs is the “most successful CEO in the U.S. of the last 25 years,” while former eBay CEO Meg Whitman said his contributions are “unparalleled in the business world.”

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: Poised to go hostile

Nasdaq OMX and IntercontinentalExchange are poised to go hostile in their bid for NYSE Euronext after shareholders ratcheted up pressure on the Big Board parent to get a better deal.

Hong Kong’s first yuan-denominated IPO plunged as much as 11 percent on its Friday debut as investors turned their noses up at the low yields offered by billionaire Li Ka-shing’s Hui Xian real estate investment trust.

Berkshire Hathaway shareholders are descending on Omaha for the conglomerate’s annual meeting, but there appears to be only one topic of conversation in town — Berkshire’s extraordinary claims about former Buffett lieutenant David Sokol. The New York Times looks for Warren Buffett’s next deal.

Deals wrap: Barrick strikes deal for Equinox

Barrick Gold said it will acquire Australia’s Equinox Minerals for more than C$7 billion ($7.36 billion), topping an offer by China’s Minmetals Resources. Barrick said it has committed cash and financing in place for the transaction.

NYSE Euronext sees higher savings of almost 400 million euros ($584 million) in its $9.8 billion deal with Deutsche Boerse, up by about a third from its initial estimates, according to a Big Board spokesman. The new savings estimate, along with 100 million euros in benefits coming from cross-selling and distribution opportunities, would bring the total savings and benefits from the deal to about $725 million.

All eyes will be on Warren Buffett at Berkshire Hathaway’s annual shareholder’s meeting next weekend, as he will undoubtedly face questions regarding the resignation of his presumed successor David Sokol. This piece in the New York Times examines Buffett’s hands-off management style, which may come under scrutiny after Sokol’s resignation following news of his dealings in Lubrizol prior to Berkshire’s acquisition of the chemicals company.

Deals wrap: Singapore Exchange’s ASX bid in trouble

Singapore Exchange (SGX) Chief Executive Officer Magnus Bocker (R) talks as Australia's ASX Ltd Managing Director and CEO Robert Elstone listens during a media briefing in central Sydney October 25, 2010. REUTERS/Daniel Munoz Consolidation in the Asian exchanges industry hit a roadblock on Tuesday when Australia said it intends to reject Singapore Exchange’s proposed $7.8 billion bid for Australia’s ASX on “national interest” grounds.

Although a final decision has yet to be made, share moves hinted that the market doubts the deal can be salvaged. All eyes will now be on other major exchange deals awaiting approval from regulators and politicians.

Texas Instruments is buying National Semiconductor for $6.5 billion, paying a hefty 78 percent premium to merge two of the industry’s oldest firms into a dominant force in analog microchips.

Deals wrap: Nasdaq triumphant?

Trading specialists glance at each other as they prepare to leave the floor of the New York Stock Exchange, March 26, 2009.  REUTERS/Chip East Nasdaq OMX and IntercontinentalExchange unveiled a rival bid to buy NYSE Euronext for about $11.3 billion in cash and stock, a 19 percent premium to the offer made by German competitor Deutsche Boerse. The move could raise new antitrust questions as it would combine the two largest U.S. stock exchanges. The new offer is valued at $42.50 per share, Nasdaq and IntercontinentalExchange said. The offer represents a 19 percent premium to NYSE’s closing price on Thursday and is 27 percent above the company’s valuation before Deutsche Boerse’s $10.2 billion bid in February. Analysts were skeptical about whether Deutsche Boerse would launch a counterbid.

Citigroup might be uncomfortable sitting on information needed to determine whether the onetime successor to Berkshire Hathaway Chairman Warren Buffett violated securities laws when he personally traded in shares of Lubrizol, which Berkshire acquired for $9 billion, but it doesn’t have to be damaging territory for Citi, writes Rob Cox.

No.1 concert promoter and ticketing company Live Nation Entertainment is in the running to buy the recorded music assets of Warner Music Group, the world’s third largest music company, according to a person familiar with the talks. Bids have come in valuing Warner Music Group at around $3 billion on an enterprise value basis, which includes both debt and equity.

Deals wrap: Buffett pulls the trigger

Warren E. Buffett, Chairman and Chief Executive Officer of Berkshire Hathaway, testifies before the Financial Crisis Inquiry Commission during a public hearing in New York in this June 2, 2010 file photo. Reuters/Shannon StapletonWarren Buffett’s Berkshire Hathaway struck a deal to buy lubricants maker Lubrizol for $9 billion in cash to tap rising demand for chemicals used to operate engines and machinery. Shira Ovide of the Wall Street Journal takes a spin through Lubrizol’s fundamentals and businesses.

The Ontario Teachers’ Pension Plan is shopping around its 66 percent stake in Maple Leaf Sports and Entertainment, the owner of the Toronto Maple Leafs hockey team and the Toronto Raptors basketball team.

Venture capital investment in U.S. clean technology companies rose 46 percent to $5.1 billion last year after a big decline in 2009, according to a report by research firm Clean Edge.

Deals wrap: Warren Buffett’s zoo

An elephant sprays earth in the Tsavo East National Park, 280 km (173 miles) east of Kenya's capital Nairobi February 10, 2011. REUTERS/Noor KhamisElephants. Zebras. Berkshire Hathaway CEO Warren Buffett rolled out the animal metaphors in an interview on CNBC on Wednesday to explain that his company remains on the prowl for big acquisitions, which he calls “elephants”.

Buffett said they were hard to find, though, noting he’d lost a sizable one – a “zebra” – in recent days. “There aren’t many elephants out there, and not all of the elephants want to be in my zoo,” he said.

Yahoo is in talks to leave its Japanese joint venture, hoping to transfer its 35 percent stake to partner Softbank. If successful, the divesture could free up nearly $8 billion for the once-mighty Internet firm to compete with Google and Facebook.

Deals wrap: Consolidation wave to grow for exchanges

Professional surfer Kelly Slater (L) catches a 40 foot wave beside Grant Baker during the Eddie Aikau Big Wave Invitational surf contest at Waimea Bay on the North Shore of Oahu in Haleiwa, Hawaii December 8, 2009. REUTERS/Hugh Gentry “The mergers of exchanges have only just begun as growing competition and even new regulation drive them closer together, irrespective of national borders,” write correspondents Luke Jeffs and Rachelle Younglai from the Reuters Future Face of Finance Summit.

As talk of future exchange deals swells, the CEO of the Singapore Exchange said he’s not planning any more concessions to Australian officials to win approval for his exchange’s $7.7 billion bid late last year for that country’s bourse operator ASX.

J. Crew will once again be a private company after shareholders approved a $2.86 billion deal for the retailer to be acquired by TPG Capital and Leonard Green & Partners.