Friday, 18 November 2011

Mergers & Acquisitions - Week Ending 18/11/11


On Monday, Bank of America announced that it would sell the majority of its holdings in China Construction Bank to a group of anonymous investors for $1.8 billion. The institution is looking to strengthen its balance sheet in order to improve weak shareholder confidence. The sellers fell 2.6% while CCB lost 0.6% on the Shanghai exchange the next day. Moodys purchased a controlling stake in Copal Partners, an Indian financial research institution, for an undisclosed fee. This is seen by the firm as a ‘logical extension’ of Moody’s Analytical; who are looking to outsourcing to cut costs. The rating and research company dropped 3.7%. VeriFone Systems bought Point International, a fellow tech-oriented payments firm, for $815 million. They believe that there is a “tidal wave” taking place, whereby cash and coin are being replaced electronically. The payments group were boosted almost 9%. Also that day, Walt Disney Company acquired Babble Media, a website for parents which features many bloggers, for an undisclosed fee. The entertainment group are planning to absorb the target into its “Moms and Family” brand; harnessing the important role that parents have taken in new media. The buyer closed 1.6% lower. The following day saw the week’s last major deal, with two of Japan’s largest steel companies saying that they would merge in a $1.6 billion move. Nippon Metal and Nisshin Steel are joining in order to retain competitiveness in the face of dwindling domestic demand and increased international competition. It is expected to create Japan’s second largest steel manufacturer. Nisshin fell 6.9%.