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Yahoo, RIM bids drive Investment Banking mills | Deal insight

Yahoo buyout noise, loudest in December landed only one syndicate client for advisors looking to bankroll buyers in the new Wall Street fashion globally. Even as Yahoo buyout work did not throw out a definitive deal, RM became the new client  assigned to Goldman Sachs who could look at a buyout bid from the current CEO crop . J P Morgan and PE players like TPG and KKR are increasingly found in lending roles and could form a nice team for RIM CEOs Mike Lazaridis and Jim Balsillie who have been forcing RIM to go it alone and keep running with the handsets business. RIM Could divest itself of the handsets unit and monetze its juicy Patent portfolio while keeping Services according to a boutique tracking the company. Earlier bids b y Amazon and a planned joint bid by Microsoft and Nokia could revive te handset maker for its platform after Samsung beat both to no. 1 last November

RIMM started a sttep cliff fall from its $70 high in March 2011 still a $8 bln Market Cap. Apart from its Blackberry platform, the Windows Os has also been losing fans with Nokia’s Windows line a non starter and HP’s Palnm and the new Dell Tablet leaning to the Android.

RIMM(NYSE:RIMM) has already reported earnings of $3.40 for the first 3 quarters and will end the year at $4.23 and above $3 for 2013 according to estimates. The CAnadian $ rise against the USD since 2009 diod not help the company’s prospects down after Amazon, Apple and Samsung products cleared the tables of almost all competition in 2011, Apple expecting to sell 30 mln iPhones and 20 mln iPads for the last wuarter of 2011.

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Meanwhile Goldman Sachs got new CEos for Asia Pac as Heller and Eisner move out of Goldman Sachs and new appintments to the Exec com mhead the curn on in the company. Asia will be headed by London trader Paradise and FICC JApan co head UEDA even as the Trading unit reported only $22 bln for the first 3 quarters and likely less than $5 bln again this week.

Goldman Sachs stole its way to a #1 poition in M&A last yeara s JPM’s deal for T Mobile fell foul of anti trust refusal last year.



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This entry was posted on January 16, 2012 by in Dealbook, Mergers etc, US.


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