M&A Scorecard: Friday |
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Sun, 14 Oct 2007 21:03
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NEW YORK (AP) - The pace of dealmaking so far this month confirms that private equity is out, and strategic buyers are in when it comes to corporate mergers and acquisitions.So far in October, investment funds have launched just 21 of the 203 takeovers announced, representing less than 4 percent of the dollar volume of these deals, according to data from Dealogic.In the first two weeks of October 2006, leveraged buyouts were 16 percent of the 285 deals announced, but they represented more than half the dollar volume.'For the strategic acquirers, they have an absolute advantage right now,' said Stephen A. Gaines, head of U.S. corporate finance for KPMG Corporate Finance LLC. 'They have a lot of cash, they can use their stock. In a lot of cases, they are not needing to raise the debt and they can continue to make a push for the bigger deals while the private equity guys cannot.'Here is a summary of some of the big deals announced in the past two days:-- Oracle Corp., the software maker, offered to buy BEA Systems Inc. for $6.7 billion. The offer, which represents a 25 percent premium, is all-cash. The company said it wants BEA Systems to be part of Oracle's strategy to build itself by buying other software makers, like PeopleSoft and Siebel.-- 3i Group PLC agreed to buy Global Garden Products for $1.04 billion. 3i Group is a medium-sized private equity firm.-- In another medium-sized private equity deal, Morgan Stanley Private Equity agreed to buy Tops Markets LLC from Koninklijke Ahold N.V. for $310 million. Tops Markets is a grocery chain operating 71 stores in New York State and Pennsylvania, under the names Tops Markets and Martin's Super Food Stores.Copyright 2007 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
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