Unstructured Finance

M & A wrap: Finding more perks to Google’s latest buy

Google’s blockbuster acquisition of Motorola Mobility will bring an unusual stable of tax and accounting benefits to the search-engine giant, already one of Corporate America’s most savvy users of such perks.

Japan’s Sony, Toshiba and Hitachi will merge their liquid-crystal display operations using $2.6 billion of government-backed funds to fend off growing competition from rivals in South Korea and Taiwan. Here’s the press release.

“Amid rocky markets this month, IPOs failed at a pace reminiscent of the tech-bubble hangover,” reports the WSJ.

“The Bank of America deal is actually a case study in why the rest of us can’t invest like Warren Buffett,” reports Slate.

For your morning distraction,  Conrad Black tells Vanity Fair who he blames for his woes and what life was like in prison.

M & A wrap: Lehman plan offers 20 cents on the dollar

Lehman Brothers Holdings Inc. will ask a bankruptcy judge to let creditors vote on its $65 billion payout plan, a key step toward ending the biggest bankruptcy in U.S. history.

Hong Kong-listed shares of China Construction Bank rose more than four percent after Bank of America said it will sell about half of its stake in the Chinese lender, providing relief to investors by removing uncertainty surrounding the stake.

Facing limited domestic growth options because of their inability to merge, Canadian banks are finding opportunity to build domestic market share in the troubles of capital-challenged European and U.S. banks.

Risk Management: Did fund managers learn their lesson?

By Detlef Glow, Head of EMEA Research at Lipper. The views expressed are his own.

In the last decade investors and fund managers faced two major crises in the stock markets, the popping of the technology bubble in 2001 and financial crisis starting in 2006.

Portfolio managers suffered average losses of about 50 percent in the wake of both crises, leading investors to question what their fund managers learned.

M & A wrap: Backing away from CCB stake

Bank of America Corp is selling about half its stake of China Construction Bank to a group of investors for $8.3 billion in cash, the bank said.

Greece’s Alpha and EFG Eurobank sealed a mega merger, with the help of Qatar, that is expected to trigger more deals to shore up banks battered by a severe debt crisis and recession.

Zynga, the social games maker may delay its plans for an initial public offering until November because of poor market conditions, the New York Post newspaper reported late on Sunday.

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.

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.”

M & A wrap: Lifting the Vale

Brazil’s Vale said on Wednesday it has created a new logistics company for cargo transport, but it denied media reports it is planning to sell stock in the unit in a spin-off. Logistics services generated $1.5 billion in revenue in 2010, an increase of 33 percent from the year before.

Cerberus Capital Management LP’s deal to buy 64 hotels from bankrupt Innkeepers USA Trust could still go forward, but at a lower price, two sources familiar with the situation told Reuters.

NYT’s DealBook contributor Steven M. Davidoff writes that Capital One’s proposed $9.2 billion acquisition of ING Direct requires clearance from the Federal Reserve, as it poses a potential systemic risk. “Whether or not the Fed approves the Capital One/ING Direct transaction, it is time for the Fed to run public hearings on what exactly Dodd-Frank means for our banks and what we as a country want from them,” writes Davidoff.

M & A wrap: S&P chief downgraded

The chief of Standard & Poor’s will step down next month, to be replaced by a senior Citibank executive, in a move announced a few weeks after the credit rating agency downgraded U.S. government debt and sparked a row with Washington.

Australian brewer Foster’s Group put pressure on SABMiller to raise its $10 billion hostile takeover offer on Tuesday, unveiling a $521 million capital return to shareholders.

Deutsche Bank AG knew in 2006 that a mortgage company it was preparing to buy lied to the U.S. government about its mortgages, yet went ahead with the purchase and should be held financially responsible, the Justice Department said on Monday.

M & A wrap: HP confusion

While some investors applaud HP CEO Leo Apotheker’s long-term plan to get out of the PC business,  the $11.7 billion bill for Autonomy and haphazard articulation of the spin-off strategy left many shaking their heads. Even more worrying, HP’s new strategic road map marks an about-face on several crucial fronts, signaling a lack of direction, writes Poornima Gupta.

Breakingviews columnist Robert Cyran, however, says the stock is now oversold.

Vitaliy N. Katsenelson, Chief Investment Officer at Investment Management Associates, has a hold recommendation on HP’s stock, but is seething mad in this post.

Investors were cautious on the prospect of rivals challenging Peabody Energy’s bid for Macarthur Coal, though sources familiar with the matter said potential suitor Anglo American was studying the books.

M & A wrap: What’s up with HP?

Shares of Hewlett-Packard slid on Friday, a day after the world’s biggest PC maker said it may spin off the business, signaling a massive overhaul in the wake of bleak tech spending across the board.

HP’s personal computer business may be too big for Asia’s technology companies to swallow whole, but potential suitors are out there should HP decide to break the group into parts, industry sources said.

HP plans to reinvent the company with a return to its roots, reports Bloomberg.

Unpicking the Autonomy acquisition reveals some interesting nuggets that better explain HP’s decision to acquire, reports ZDNet.

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