Unstructured Finance

Deals wrap: Investors cheer as Alpha’s Massey takeover sinks in

MINING-MASSEY/ACCIDENTShares of coal miner Massey Energy surged in trading on Monday, the first trading day after rival Alpha Natural Resources agreed to buy it in a $7 billion deal.

AMB Property Corp has struck a deal to buy rival ProLogis for $5.7 billion in stock, combining the two largest U.S. owners of warehouse and distribution centers around the world in one of the biggest real-estate deals since the financial crisis.

U.S. biotechnology company Genzyme Corp and French drugmaker Sanofi-Aventis SA have reached an agreement in principle on the outlines of a merger deal, sources familiar with the situation said on Monday. Earlier in the day, the two companies said they had entered into a nondisclosure agreement, allowing Genzyme to open its books to Sanofi.

Investors have written to BHP Billiton and Rio Tinto to say the miners should ditch ambitions for mega deals in favor of multi-billion pound share buyback schemes, The Sunday Telegraph reported.

Chrysler Group LLC forecast a return to profit for 2011 as it gears up for an initial public offering in the second half of the year and launches an array of new and revamped vehicle models to stimulate its recovery.


(Photo credit: A 2010 U.S. Geological Survey aerial photograph shows Massey Energy’s Upper Big Branch Coal Mine in Montcoal, West Virginia. REUTERS/U.S. Geological Survey photograph via Microsoft Bing Maps/Handout)

Morning Line-up: U.S. probes wider and takeover by stealth

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 News and views on the asset management industry from Reuters and elsewhere

Barai Capital under U.S. govt scanner - Wall Street Journal

Man Group launches ETF using broker tips – Financial Times

RBS pushes into retail funds – Independent

Reclusive rebel investor closes in on F&C – Reuters

Deals wrap: M&A is back

A sign is pictured on Wall St. near the New York Stock Exchange in New York November 25, 2008. REUTERS/Lucas Jackson Dealmaking is back on the agenda as CEOs step up the hunt for ways to put a multitrillion-dollar cash pile to work, triggering the busiest January for M&A in 11 years.

If ProLogis and AMB Property’s recently announced talks on a “merger of equals” pan out, AMB Property is likely to be the real buyer and ProLogis the target, investors and Wall Street analysts said.

Sara Lee plans to split into two separate public companies focusing on North American meats and international coffee after takeover bids it received were not enough to entice it to sell the company.

Bad day for banking stocks

It was not a good day for banking counters, as the markets slipped more than 250 points in Thursday. State Bank of India and ICICI Bank dropped nearly 1 percent and 2.1 percent respectively, while HDFC Bank closed 1.7 percent lower. Financials led the decline in the markets, as expectations for another rate increase in the next two months after the RBI’s recent move weighed on sentiments. Is this the right time to enter banking stocks?

Deals wrap: Racking up the deals

Vehicles drive on flyovers during the evening rush hour in central Shanghai December 29, 2010. REUTERS/Aly Song There’s a new swagger among the bosses of emerging market companies as they sign checks for a growing list of acquisitions in both the developed and developing world. And this is just the start.

Strong demand for broadband and high-definition TV lifted first-half profits at bid target BSkyB by 26 percent, increasing pressure on Rupert Murdoch‘s News Corp to secure its takeover deal without delay.

Veteran banker John Kanas gets to cash in big time on one of the most profitable bank buyouts in years when BankUnited goes public on Thursday. Kanas’ expected profits are in stark contrast to the FDIC’s losses from BankUnited.

Deals wrap: Looking forward to 2011′s IPOs?

A Wall St. sign is seen outside the New York Stock Exchange September 30, 2008.  REUTERS/Lucas Jackson Nielsen’s IPO raised more than expected and could set the tone for a rush of big private equity-backed IPOs anticipated in 2011.

Rupert Murdoch has opted to travel to London instead of Davos as News Corp’s $12.5 billion bid for British satellite broadcaster BSkyB hangs in the balance, two sources familiar with his plans said.

Icahn Enterprises extended its tender offer to buy Dynegy, a day after the power producer said it did not receive any competing bids to top Carl Icahn’s $665 million takeover offer.

UK universities eye and keep an eye on new hedge fund punts

Pension schemes are moving away from the usual equity/bond/real estate mix to put their eggs in as many baskets as possible. No wonder then that the USS — the 31.6 billion pounds UK universities pension fund — is putting an extra 1.5 percent of its assets, or about 474 million pounds, into hedge funds, as its CIO Roger Gray tells Reuters.

If you are rushing to the phone to pitch business with Mr Gray, however, STOP a minute fund manager: be prepared, the USS is not only eyeing alpha, it is going to ask a few questions about how alpha is distributed and how investors are protected.

“Is the board of the hedge fund constituted in a way which gives us assurance that they are actually acting in the interest of the limited partners rather than in the pocket of the managers?” he said.

Deals wrap: BlackRock results beat Street

Snow falls on a Wall St. street sign in front of the New York Stock Exchange, February 25, 2010.   REUTERS/Brendan McDermidBlackRock reported a big jump in fourth-quarter profit and revenue, topping analysts’ estimates. With markets on an upswing, the $3.6 trillion behemoth created when Chief Executive Laurence Fink bought Barclays’s investment unit for $15 billion just over a year ago finally appears to be paying off for investors.

Cross border deals are providing an opportunity for boutique investment banks to shine, reports NYT.

“An unusual burst of trading ahead of a $3.5 billion takeover for cardboard box maker Smurfit-Stone Container Corp left some analysts remarking on the timing,” reports WSJ.

ICICI Bank ends up 1.7 pct

Shares in ICICI Bank, India’s top private lender, gained 1.7 percent on Monday, as the bank said that its Q3 net profit rose more than 30 percent.

This was the bank’s strongest pace of growth in three quarters.

ICICI Bank Chief Executive Chanda Kochhar said that the bank expected “at least” 20 percent credit growth in 2011/12 compared with an expected 18 percent growth in the fiscal year ending on March 31.

Do you think it is time to buy shares of ICICI now?

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