Friday, 15 June 2012

Mergers & Acquisitions - Week Ending 06/15/12


On Monday, China Unicom bought back a 5 percent stake in itself from Telefonica for $1.4 billion. The European telecoms group is looking to sell non-core assets in order to maintain its financial health in the face of the credit crunch. The buyer jumped 6.5% while Telefonica lost 2%. Apax Partners and JMI Equity acquired Paradigm, which creates software to aid drilling by energy companies, for $1 billion. The private equity firms were no doubt enticed by the rising global demand for oil and gas. Also that day, private equity firm EQT Partners purchased BSN Medical for $2.26 billion. They will be looking to expand the medical supplies firm's reach and grow their product lines to cater for emerging markets. The following day, America Movil increased its stake in KPN for $58.5 million. This is the latest tactic employed by the Latin American telecoms giant as it looks to take over its Dutch rival and increase its presence in the European market. However, the target maintains that the premium being offered isn’t sufficient to close the deal. America Movil and KPN were up 3.2% and 1.2% respectively.

The midweek saw Saab sold to a Japanese consortium for an undisclosed price. The automobile manufacturer, which hasn't seen production in over a year, is to shift its focus to electric vehicles. On Friday, it was announced that Hong Kong Exchanges and Clearing would buy the London Metal Exchange for $2.14 billion. It is believed that this move will help the bourse meet the growing demand for commodities in developing Asia. Hong Kong E&C's stock will react to the news on Monday. Later that day, just three days after tightening its grip on KPN, America Movil increased its stake in Telekom Austria from 2 to 23 percent. Many believe that Carlos Slim, owner of AMX, is advancing now due to the low price of European assets in the midst of the debt crisis. The bidder was relatively unchanged as the Austrian carrier gained 3.4%.