The Banking and Strategy Initiative

Chillin' out till it needs to be funded

This week's investment buzz and inspiration | Deal insight

European Sovereign Debt Crisis: Greek Drachmas no more!

The Drachmatizsation school recommending early closure of Greece’s membership of the Union was supposed to give up in the early hours of Monday today as bondholders stuck to their cues and IIF and Charles Dallard made optimistic stance a reality with caveats on Greece overtrying its hand on the weekend. The deal had demanded a coupon of almost 3% when talks broke down on Friday and investors pulled out of Athens, on Sunday

Mr Dallara said the IIF’s position tabled with Greek authorities on Friday night – believed to include a loss of 65-70 per

English: Various Euro bills.

Image via Wikipedia

cent on current Greek bonds’ long-term value – was as far as his side was likely to go.(FT.com)

The man behind the NBC Universal Deal

The man behind Texaco’s chevron merger and the NBC Universal merger , Mark Granetz jumped over from Credit Suisse to join JP Morgan. However, Marc will focus on a Global Finance Initiative at the last Global Bank standing, focussing on internal controls to improve liquidity and expense management and any additional strategic projects probably as a stop gap arrangement till the business head of his final destination discovers the next talent. He is working with Doug Braunstein, the firm’s Global CFO

The dealmaker for Chair of Global Investment Banking at Credit Suisse having stayed on for 26 years

JP Morgan, State Street and Ameriprise in the playoffs

Even as Deutsche Bank avers a deal worth $2.58 bln, bidders from JP Morgan, Ameriprise and State Street have joined the race oto bid for the US Funds business of the bank along with many other Institutional Client businesses. The Real Estate fund is another $59 bln and the Insurance assets $200 bln

The $54 bln us funds in the US were acquired from Scudder investments in 2002. Our earlier attempt at a possible valuation is attached here

More income from Deal protection, less income from deal completion

Even as Dealogic ranks changed hands on antitrust refusals in the last quarter, deal activity in the second half of 2011 was down by 25% according to the lawyers’ database analysis for 2011 ( Thomson Reuters Accelus). More than 1 in 3 deals added reverse break up fees in the deal signings in 2011, PE led deals grew this percentage of penalties to acquirer for breaking the deal to 78% T Mobile got paid $4 bln for the privilege of not having AT&T take over the company in December 2011

Deal reverse break up fees value has also gone up to 10-19% in many PE deals

English: CEO of JP Morgan

Image via Wikipedia

Less income from Deal completion

Deal revenues are also trending downward this year as Asia’s component in deals increases this decade and as more question the amount of fees paid in deals so far. US deals paid on an average over $2 million to investment bankers in the year gone by. Asia deal revenues were $1 million

Samsung drops out of Fuji deal

Samsung has dropped out of the race to buy Olympus assets fo r tis healthcare business even as Sony and Fuji film look at the deal closely. Sony is interested by the Endoscopy business of the company which has 70% market share Kodak has recently declared bankruptcy and Olympus walked into the mire when the CEO reported the Company’s board for hiding losses for years. Sony want an all equity swap without damaging its balance sheet for debt and hangovers of the $1.7 bln accounting fraud.

Express Medco walks it from the Anti Trust counter?

Another $29 bln merger deal, this one not in devices but in Pharmacy Benefits as Medco would likely be stranded without anti trust approval for competitoe Express to take over the company Recently the FTC also blocked Omnicare’s bid for Pharmerica ( $440 mln) According to Reuters the companies’ business model makes them dependent on low cost generics producers who they squeee for margins for their mail order pharmacies while they also adminsiter drug benefits for Medicare

German Steelmaker finds company to resuscitate itself from Debt

German steelmaker Thyssen Krupp found ways to cut down its $4.7 bln debt overhang by selling $13 bln of assets to Finnjish Outokumpo. ArcelorMittal’s Steel business was hived off and listed as Aperam last year

China, Abu Dhabi buy into British Water

China investment Corp bought a 8.68% stake in Thames water right after Northrumbian sold a 8% stake to private Hongkong investors. CIC’s buy of $1 bln may not have brought any new funding as the stake was sold by an existing investor Macquarie probably as CIC reorganises its investments into independent funds run by professional fund managers and it may even be it was already an investment int he Macquarie fund holding the investment also.The Abu Dhabi ADIA fund also bought a 9.9% stake in Thames Water last month

Earlier Li Ka shing paid $4 bln for Northrumbian Water in 2011.

India completes 10+ PE deals in two weeks 

PE welcomed 2012 with a cheer as General Atlantic competed a $125 mln deal in Fourcee a logistics operator, while PE funded Dalmia Bharat bought a cement unit and  Aussie Water Resources (WRG) joined up in JV with PE Mandala Capital to scout for water opportunities in the going to be #3 economy. New retail lifestyle deals included Temasek’s run for Godrej Consumer as its new investment in India and LVMH purchase of another stake in Genesis Lifestyle  ( check out india.advantages.us today itself for the deal details  or bookmark our “A blog of blogs

 

Enhanced by Zemanta

Archives

%d bloggers like this: