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.
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.
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.
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.
Warren 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 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.