M & A wrap: A bumpy ride for Zynga?

December 14, 2011

Online gaming firm Nexon slipped on its trading debut following a $1.2 billion IPO, Japan’s biggest this year, and may signal a bumpy ride for U.S.-based rival Zynga, which debuts on Nasdaq later this week.

The Deal Journal cautioned investors over the upcoming Internet IPOs such as Zynga and Yelp: “Buying in the open market on the first day of trading with the intent of holding the stock has not been a profitable strategy.”

Goldman Sachs, the first Wall Street firm to win an underwriting license in China, is sitting out the world’s busiest initial public offering market, Bloomberg reports.

Japan’s disgraced Olympus Corp ironed out its crooked accounts after a 13-year fraud, with a $1.1 billion dent in its balance sheet triggering speculation it will need to merge, sell assets or raise capital to repair its finances.

Third Point LLC, an activist shareholder in Yahoo Inc, expressed fresh concern that the Internet company is looking at a “sweetheart” deal with private equity that could entrench founder Jerry Yang and the current board.

Coca-Cola Co acquired about half of the equity in the beverage business of Saudi Arabia-based Aujan Industries for $980 million to expand its presence in non-alcoholic beverages in the Middle East.

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