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This week’s investment buzz and inspiration | Deal Insight

Misys adds to Temenos

Even as business in the banking sector remains tenuous, banking product makers upped the ante with a $3 bln planned merger price for a $1.5 bln listed Misys of UK and a similar amount for NASDAQ listed Temenos. Misys earlier failed to board the Fidelity National gravy train . Fidelity National is obviously restricted to the mortgages space currently. Misys and Temenos both have good Commercial Banking/Core banking products and are leading players in the industry with Infosys Hathaway and Iflex which now belongs to Oracle Financial competing with others like SAP from the Enterprise product space.

It is an all share swap and the size does qualify for Anti trust watch. Merger talks have been on for a year and Temenos was an interested bidder in the previous bidding war event as well.

New austerity plan for Greece

Even as a deall eluded policymakers, Greece agreed to another 1.5% of GDP in cuts . The troika in government in Greece ( as opposed to the ECB IMF EU troika also agreed to a broad framework on bank recapitalisations but details aren’t coming on what makes “austerity” and how banks will be recapitalised as that argument will resume after they manage to  get an agreement with creditors


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More on Financial Crimes (Mortgage relief settlement)

With prosecution of bankers back as an item on the agenda, talks for a jumbo mortgage settlement came closer to signing on a deal. California and New York had earlier dropped negotiations after banks insisted the deal mean tthey could not be liable to mortgage fraud claims anymore. New York has started anew plaint this weekend indicting the Mortgage registration system used by the 5 banks party to the settlement incl Ally, (GMAC) JP Morgan and Wells Fargo. With the deal now agreed to be more tougher on the banks, it would be interesting to watch banks’ reaction to the deal talks of date.

Chinese Entertainment Giant targets global entertainment plays

Bruno Wu counted as Bruce Wayne in hs home country is teaming up with a leading PE fund to set up a $800 mln Harvest Seven Stars Media PE fund to target global and Chinese entertainment plays An MPAA analysis put China’s entertainment sector for tripling in the next 3 years, ticket receipts going to $5 bln and no. of screens going up to 16,000 by 2015

Reliance of India earlier backed Dreamworks new studios with a $300 mln investment and in this round Dreamworks just might find the Chinese offer worth entertaining

Bruno Wu’s wife Yang Lin had a stint of more than 10 years as a popular TV hostess

GM’s record 2011

GM is likely to report doubled profits from last year’s $4.7 bln on the back of great sales int he US and million sin costs removed from its US balance sheet even as 2011 was also good for it in China before the introduction of the new indigenous innovation duties penalising upto 22% for importent content on its cars. Thge $8 bln profit in 2011 came even as GM kep the midnight oil budining with cash discounts on its US retail sales and ending near the 20% mark in share without tOyota and Honda in form to compete with it.

JP Morgan alum gets FDIC post

The fifth FDIC board member ato be appointed ont he weekend was JP Morgan exec and a Bush administration veteran Jeremiah Norton. The other Republican on FDIC is Vce Chairman Thomas Hoenig DEmocrat Dick Cordray was appointed in the recess

English: A Maruti Suzuki Swift 2008 model.

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Suzuki loses VW deal, lower profits

Suzuki reports a April to March Fiscal like its India listed business of Maruti Suzuki and as Maruti’s fortunes failed it in India to a 43% share from over 50% last year, Suzuki also reported lower profits even as the Yen squeeze put paid to its ambitions for the period till March. Suzuki reported a $520 mln  profit for nine months ended December and expected to add another Yen 12 bn or $652 bln for the year. Asia reported a 13% lower revenues of $7.8 bln ( USDJPY=78) accordiing to WSJ even as the Volswagen investment amounted to nothing early in the year when no production arrangements could be made for VW

Asia revenues are just more than a third of the W/W $23 bln in 9 months. Honda reported 42% lower profits and Toyota and Nissan report over the next two days


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This entry was posted on February 6, 2012 by in Financial Markets and tagged , , , , , , , , , , .


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