monthly m&a insider - mergermarket
TRANSCRIPT
ContentsIntroduction 3
Private equity in Europe: Royale with cheese - Goldman embarks on European private equity takeaway? 4
Chinese Paper sector: M&A in 2008 5
North American private equity: What a tangled web we weave 6
North America 7
Latin America 23
Asia-Pacific 36
China 46
Japan 61
Australia 72
Europe 86
UK 98
Germany 112
France 128
Italy 140
Benelux 154
Iberia 167
Nordic 179
CEE and CIS 193
Russia 207
80 StrandLondon, WC2R 0RLUnited Kingdom
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www.mergermarket.comPart of The Mergermarket Group
Monthly M&A Report – 3
Introduction
M&A full of Energy
The Energy Sector of late appears to be very active, with
several big deals coming into play since the beginning of
July. Between the beginning of July and the 19 August there
have been 81 deals in the Energy sector at a total value of
€47.1bn, according to mergermarket data. The largest of
these deals is Union Fenosa’s takeover by Gas Natural, the
Spanish gas company, for €22.8bn on 31 July. Gas Natural
reportedly acquired a 9.9% stake in listed Spanish electricity
group Fenosa from construction group ACS earlier on in
the piece, and in mid-August bought another 5.15% stake
in Fenosa from Spanish bank, de Ahorros del Mediterraneo
(CAM) at €18.33 per share.
In late July mergermarket reported that Electicite de France
(EdF) saw both the UK and Spain as growth markets, and it
was rumoured early in the Fenosa takeover process that they
were looking at a potential bid. The reason for this being its
obvious interest in European sector acquisitions through it bid
for 35% Government owned British Energy. British Energy,
the UK nuclear power company, is still likely to be sold to
France’s EdF because of the strong political imperatives for
a deal, despite the near-collapse of the deal in early August,
according to mergermarket. A person close to the deal
reiterated that EdF remained the only serious contender
for the company, despite the British Energy board rejecting
the latest EdF bid, believed to be valued at around 765p
per share, even when EdF had gone so far as to schedule a
press conference to announce the purchase. The decision
by the board to reject the offer reportedly came after major
shareholders requested EDF put more money on the table.
Meanwhile, E.ON, the listed German company involved
in energy, utilities, chemicals manufacturing, oil and gas
production, real estate, and telecommunications, has agreed
to acquire the remaining 44.6% stake it does not own in
E.On Sverige, the Swedish power and gas company, as well
as a hydropower plant located in Sweden from Statkraft, the
Norwegian power generation company, for approximately
€4.5bn. E.On is tipped to make further investments in the
strong Nordic Energy sector.
mergermarket is pleased to present you the August edition
of Monthly M&A Insider, a publication which provides you
with features by mergermarket journalists, and all monthly
potential deal activity and drivers. We hope you continue to
find it useful and informative.
by Anna Henderson, Remark
Head of Research – Elias Latsis
Managing Editor – Ed Lucas
Editor – Anna Henderson
Head of Production – Steve Jeal
For advertising opportunities contact: Simon Anam Tel: +44 (0)20 7059 6124 [email protected]
North America – Mo Hersi
Japan – Shunsuke Okano
Greater China – Chun Shek Chan
Asia – Wing Pun
Australia – Cicilie Lofsgard
UK – Virginia Christopanou
Germany – Sola Akinola
Iberia – Raul Andrade and Virginia Garcia Martinez
Benelux – Kathleen Van Aerden
CEE – Nulifer Sezer
LatAm – Raul Andrade
France – Linda Frosio
Italy – Virginia Christopanou and Zaynab Dost
Nordic – Laya Montelibano
Russia – Yasmin Salfati, Jennifer Ruiz, and Aksana Fitzpatrick
Europe – Elias Latsis
Monthly M&A Report – 4
Features
Earlier this month PE activity saw shifting investment in fund
holdings within AAC Capital Partners, the European buyout
group with operations in Amsterdam, London and Stockholm.
TGI Friday, the American style dining chain was just one of
a range of portfolio companies in funds managed by AAC
Capital partners to change hands as a Goldman Sachs led
consortium injected €950m ($1.5bn) to take over the LP
holdings of RBS, Fortis and Santander.
Formerly called ABN Amro Capital, AAC Capital Partners has
been hived off by its new parents RBS, Fortis and Santander
as part of their ongoing digestion of the assets of ABN Amro,
the banking group they acquired in a €70bn deal last year.
According to the Financial Times, Goldman Sachs, Alpinvest
and the Canada Pension Plan are committing €500m of new
funding into AAC’s latest Northern Europe fund. At the same
time the buyers have pledged to provide a further €450m in
new funding for AAC.
In return the bidder consortium is receiving the controlling
interest from RBS, Santander and Fortis of a fund that holds
21 existing portfolio companies, coupled with 11 more
recent deals. Effectively the transaction comprises a portfolio
interest of 32 companies corroborated in a Wall Street
Journal article. A quick glance at mergermarket’s PE Portfolio
product reveals that AAC Capital Partners manages a total
series of fund holdings that includes 87 portfolio companies.
The deal is certainly the most significant secondary deal
for quite a while and underlines the ambition and belief of
Goldman and its partners in the significant underlying value
of many European private equity portfolios in the current
troubled market place. For the moment, however, it is worth
underlining that the deal marks a shift in investment backing
rather than a shift in direct control, with AAC continuing to
manage the funds directly. Certainly, in recent times the
financial clout of Goldman Sachs has allowed it to be an
active participant in the secondary investment in private
equity assets.
It is too early to say whether the deal presages a longer
term shift in the make-up of the European mid market
private equity landscape. However, it could be argued that it
presents a scenario where larger US private equity funds buy
extensive portfolios of smaller European mid market players
- effectively undertaking M&A in their industry. Certainly
the European private equity mid-market universe where
AAC operates (€50m-€500m) is a very congested space.
If so, coming months could see more moves like the AAC
investment played out as the opening gambits in the longer
term consolidation and institutionalisation of the European
private equity asset class.
by Ed Lucas, Editor, Remark
Royale with cheese - Goldman embarks on European private equity takeaway?
Could European private equity be on the cusp of a major round of consolidation among funds?
Monthly M&A Report – 5
Features
Chinese Paper Sector M&A 2008: Companies eye out financial investors as corporate buyers hold back on bids
Meanwhile, the PRC government is encouraging
consolidation in this heated-up sector through M&A.
However, as corporate buyers appear to be holding back
on bids, and many are hunting for financial investors while
maintaining their market presence.
Private equity is taking the stage on M&A this year in the
sector. Hung Hing Printing Group, the Hong Kong listed
paper company has successfully brought in CVC Capital
Partners for financial assistance. Additionally, Hung Hing
Printing, companies like Shandong Chenming Paper, Lee and
Man Paper Manufacturing, Samson Paper, Hemu Technology,
Hubei Firsta New Packaging Material, Forest and Paper have
been either expressed interest in, or are already in talks with
financial buyers.
A large majority of paper companies, regardless of their sizes,
are in need of cash injections, and this offers opportunities
for private equity to enter this fast-growing industry, said
one analyst. “Given the capital intensive nature of Paper
manufacturing business, companies simply cannot expand
their production capacity through internal fund”.
So far the activity between domestic papermakers has not
seen an excessive amount of M&A. Companies such as
Shandong Sun Paper, Zhejiang Jingxing Paper and Yueyang
Paper made only one acquisition on 2007. More domestic
buys are yet to appear this year, another indication the
industry it looking to financial investors, rather than making
outright acquisitions.
The hard lending situation which resulted from the rise in
the bank reservation ratio, coupled with the government’s
guideline to keep debt level under 70%, are also contributing
factors driving papermakers to seek help from financial
investors, the analyst added. Dennis Lee, CEO of Samson
Paper, explains why industry players are not active buyers
as “Papermakers are currently making good money, as the
industry is on the rise, and the selling price is too high for
acquisition’s right now”. He said Samson Paper had made
a purchase last year, but it is holding back more buy due to
high cost. He adds, “and for the smaller paper mills, they
are too polluted and would be forced to close down soon; so
given this no company would bother to buy the companies
and turn them around.”
A second analyst explains that a good time for industry
acquirers is yet to come, “The paper sector is in
prosperity, but big papermakers will remain conservative
on investments.” He also pointed out the two biggest
containerboard manufacturers in China, Nine Dragons Paper
and Lee & Man Paper Manufacturing, are recessing on
domestic buys, and instead shifting their acquisition focus
outwards, towards Vietnam in particular.
The analyst believes “2009 would be a better time for
acquisitions to take place within the industry. When
economic growth starts to slowdown, we shall see a more
redundant supply and acquisitions could result as companies
face financial difficulties.”
“Demand of paper is heavily dependent on GDP growth and
retail situation”, Raymond Lee, Chief Executive Officer of
Lee and Man Paper Manufacturing said, observing that when
the GDP growth rate falls below 10% the industry is likely
to face a saturated demand. He said the GDP growth rate
has already dropped to near 10%, and the slowing trend has
become apparent when the company spotted an overflow of
paper supply in some provinces.
The analysts agreed on the tight relationship between the
industries with the overall economy, and explained most
major paper types are used for product packaging purposes
or printing for consumable products, thus demand is highly
reliant to the retail environment.
PRC government is promoting M&A to raise industry
concentration rate of the top 30 papermakers from 32% to
40% by end 2010. Papermakers with production capacity
higher than 3m tpa are particularly encouraged to acquire
their peers. And by 2010, it is to see 10 paper making giants
with around 1-3m tpa production capacity to emerge. As
Huatai Securities notes, only Nine Dragons and Shandong
Chenming Paper reached the 3m tpa production capacity
in 2007. Huatai Securities also states that more M&A is
necessary for the Chinese paper industry to grow.
by Edince Kun in Hong Kong
With the fast-growing Chinese economy, the paper industry is reaping the benefits and moving into a period of activity in 2008.
Monthly M&A Report – 6
Features
North American private equity: What a tangled web we weave
In the past several months, banks have one by one revealed
their plans to detoxify their balance sheets in this fashion.
Swiss bank UBS sold mortgage bonds to the US-based
BlackRock investment fund for $15bn, marked down from
its $20bn face value, while Citigroup reportedly planned to
unload $12bn of its leveraged loans by courting private equity
firms like TPG and Apollo Management at 90 cents on the
dollar. And just weeks ago, Merrill Lynch sold $6.7bn worth
of CDOs to private equity firm Lone Star at a discount of 22
cents on the dollar.
Interestingly, the loans private equity funds are picking up at
bargain were once used to finance their debt-heavy buyouts.
According to mergermarket, private equity is indeed buying
these loans from banks who were were once underpinning
some of their most prominent LBOs. RBS and Citigroup
helped to finance the $27bn Clear Channel buyout by
Thomas H Lee and Bain Capital, which was announced in
2006 before the crunch took hold. RBS also provided debt
for the 2005 buyout of Toys R Us by KKR, Bain Capital and
Vornado Realty Trust and was one of several private equity
firms backing KKR’s buyout of Alliance Boots in 2007. Such
highly leveraged deals seem like endangered species today:
according to mergermarket, the $7.3bn Toys R Us deal was
funded by debt worth an estimated $6bn, while debt funding
accounted for $16.4bn of the $24.2bn Alliance Boots deal.
Banks appeared to be limitless sources of leverage during
these years, but today they seem eager to get rid of this
leverage, and more than willing to accommodate potential
buyers. For example, when Lone Star bought Merrill Lynch’s
loans, the bank funded 75% of the transaction, and when
BlackRock purchased $15bn worth of troubled mortgage debt
from UBS, the investment firm came up with just $3.75bn of
the purchase. UBS and sovereign wealth funds took care of
the rest.
These are indeed enticing offers, and as the Financial Times
aptly pointed out on Tuesday, the latest move from RBS
underscores private equity’s continuous “transformation
into investors” in buyout boom loans. But as the paper
also pointed out last month, much of this debt stems from
a time when the credit bubble was at its puffiest, when
faulty ratings were running high and when borrowers with
bad credentials were taking out mortgages they would later
default on. Consequently, most of the loans committed to
after 2005 are now contaminated with mortgage defaults and
have led to substantial write-downs on the banks’ behalf.
Only time will tell whether the recent bargains in the debt
market deserve as much praise as they have been getting
from private equity executives celebrating the potential for
high returns. Either way, the changing dynamic between
private equity and its former lenders will likely stay in the
spotlight until the worst of the credit crisis is cleaned up.
by Elizabeth Castro, Remark
Another bank joined its peers this month by selling loan packages to private equity firms at far less than their original value. RBS is reportedly poised to sell $8bn of loans to Apollo Management, TPG and GSO Capital at 80 cents on the dollar.
Monthly M&A report – 7
Genentech: Roche deal could be agreed in a month or two• Roche’scontroversial$89asharebidannouncedon
Mondaytoacquiretheremainingstakeitdoesnotown
inGenentech,couldmovefasterthantheestimated
threetoeightmonthswhichsomeanalystreportshave
suggested,sourcesfamiliarwiththesituationsaid.
• Onesourcefamiliarwiththesituationsaidadealbetween
thetwoshouldmovequickerbecausethereisonlyone
potentialbuyerwhichalreadycontrolsthecompany.“I
don’tthinkitwilldragout.Onewayortheother,itwillbe
resolvedinthenextmonthoroneandahalfmonths,”he
said.
• Asecondsource,whoalsoclaimstohavespokento
“wellinformed”peoplearoundthesituationsaidRoche
couldpotentiallyannounceitsfinancingstrategywithin
thenexttwoweeks.
• Additionally,bothcompaniesareliningupfurther
investmentbanks.OnThursdayGenentechannounced
ithasformedaspecialcommitteeandhasretained
GoldmanSachstoactasitsfinancialadviser,andLatham
&Watkinsasitslegalcounsel.WilsonSonsiniGoodrich&
RosatiisrepresentingGenentech.
• Rocheannouncedthatitretainedinvestmentbanking
advisorGreenhill&Co,anditsattorneysareDavisPolk
&Wardwell.ARochespokespersondeclinedtoidentify
banksinvolvedinthefinancingofthedeal.
• Thesecondsourcenotedthatthelistofotherinvestment
banksthatcouldgetinvolvedareUBS,CreditSuisse,
JPMorganandCitigroup,someofwhichcouldactas
lendersorworkalongsidethethreeindependentdirectors
convenedbyGenentech.
• ThedirectorsevaluatingRoche’sproposalincludeHerb
Boyer,co-founderofGenentech;DebraReed,CEOof
SanDiegoGas&ElectricandSouthernCaliforniaGas
Co;andCharlesSanders,formerchairmanandCEOof
GlaxoSmithKline.
• AGenentechspokespersonsaidtheindependent
directorswillassesstheproposalinconsultation
withfinancialandlegaladvisers.“Weexpectthatthe
independentdirectorswillpromptlyreviewtheofferand
respondtoRoche,”shesaid.
• However,thesourcesweremixedonwhetherRochewill
faceconstraintsonraisingthecashneededtoacquirethe
remaining44%stakeinGenentech.Somebelievedthat
consideringRoche’soperatingcashflowof$15.86bnin
2007,andwithsalesof$45.1bnandEBITDAof16.7bn,
raisingcapitalshouldnotbeproblematic.
• Alternatively,athirdsourcefamiliarwiththesituationsaid
finding$45bnincashwouldbeastretchinthecurrent
market.“Nobodywantstobeaherorightnow.Maybe
peoplestepuptofinance$10bnofthetotal,butthey’re
notgoingtostepupformorethanthat,”hesaid.He
addedseveralbanksmightjointhefraytoworkwith
Roche’sfinancing.
• Thereisastrongprobabilitythattheindependent
directorswillvotedownthedeal,infavorofahigher
price,thesourcesconcurred.Thesecondsourcenoted
thatBoyerhasclosetiestothecompanyandastrong
relationshipwithArthurLevinson,thecompany’sCEO,
whohasbehindcloseddoorsshownapprehensionbythe
offer.
• “Boyeristhedominantmemberofthatspecial
committeeandheistheguywhopicked[Levinson]as
CEO,heiscloseto[Levinson].Andif[Levinson]doesn’t
likethisdealthatmeansthespecialcommitteeisgoing
tofightveryhard,”heemphasized.
• AtpresentthesourcessaidLevinsonisdisappointed
thatRocheisforcingthisonGenentech,butatthesame
timeRocheisdisappointedbecauseGenentechhasbeen
sayingitisawhollyindependentcompany.“Rochelikes
thisvisionofabigfamily,”headded.
• Thesecondsourcesaidfromspeakingtoanumberof
topGenentechshareholders,theyareexpressingdisdain
towardsthecurrentproposalandexpectapricetagnorth
ofUSD100pershare.
• Anindustryinvestorpricedadealat$100-105pershare.
However,asecondindustryinvestorspeculatedthatby
observingRoche’sconservativenature,theofferwilllikely
beraisedtobetween$95and$100pershare.Roche
declinedtocommentonpricespeculation.
• Anex-Rocheexecutivepointedoutthatalikelyculture
clashcouldariseamongemployeesatSwiss-based
RocheandCalifornia-basedGenentechifthetieupgoes
ahead.Still,henoted“ifRocheissmart,itwon’ttake
longwiththeprocess,becausethelongertheprocess
dragson,thebesttalentwillleave.”
NorthAmerica
NorthAmerica
Monthly M&A report – 8
• AsforGenentech’sproducts,questionshavebeen
raisedoverwhethertheacquisitionpricewillreflectthe
anticipatedresultsfromAvastinintheadjuvantcolorectal
cancersetting(C-08trial)–Genentech’sleadoncology
therapydesignedtoinhibitangiogenesis.
• Theproposeddealcontemplatesriskadjustedfairvalue
forAvastin’spendingadjuvantinterimresultsexpected
in4Q2008,thesecondindustryinvestorsaid.This
newsservicehasshownthroughphysicianinterviews
thatAvastinintheadjuvantcolorectalcancersettingis
associatedwithanincreasedriskforgastrointestinal
side-effects,andtheadverseeventprofileneedscareful
evaluationasthedrugwillbeusedinamuchhealthier
patientpopulation.
• However,SueHellmann,PresidentofProduct
DevelopmentatGenentechdefendeditssafetyprofileina
recentearningscallbystatingthattheinterimsafetydata
presentedatASCO“onouradjuvantcoloncancerstudy,
C-08,lookedencouragingandweexpectthefinalanalysis
ofthisstudytobein2009.”
NorthAmerica
Monthly M&A report – 9
Dealofthemonth
Target: Anheuser-BuschCompaniesInc Announced: 14July2008
Bidder: InBevSA Deal value: $58,924
Seller: Deal nature: Recommended
Plan of Merger: Anheuser-BuschCompaniesInc(BUD),aDelawarecorporation,hassignedadefinitiveagreementto
beacquiredbyInBev(INBVF),aBelgiancorporation.The
boardsofdirectorsofbothcompanieshaveapprovedthe
merger.
Anheuser-Busch(BUD),aUSbasedcompanyheadquartered
inSt.Louis,Missouri,istheholdingcompanyofAnheuser-
Busch,Incorporated(ABI),abeerbrewer.
InBevNV(INB),aBelgiumbasedcompanyheadquarteredin
Leuven,isaglobalbrewer.
Synergies:Thecombinationwillcreateaglobalbeergiantwithsynergies,bothintermsofcostsavingsandrevenue
enhancementopportunities.Thecompaniesstatedinafiling
thattheyexpecttogeneratesynergiesofapprox.$1.5bnby
2011phasedequallyoverthreeyears.
Terms:$70.00pershareofBUD
• Theofferprovidesapremiumof5.26%basedon
Anheuser-Busch’sclosingsharepriceon13-Jul-08of
$66.50,and19.96%basedonthe11-Jun-08prerumor
closingsharepriceof$58.35.
• Theimpliedequityvalueofthetransactionisapprox.
$49.9bn.
• IfasuperiorofferweretoemergeforBUD,thecompany
wouldberequiredtogiveInBevatleast3business
daystomakeadjustmentstoitscurrentofferbefore
BUD’sboardofdirectorscouldeffectachangeof
recommendationofthedeal.
Financing:InBevhasreceivedfinancingcommitmentsfrom
financialinstitutionsincludingBancoSantander,Bankof
Tokyo-Mitsubishi,BarclaysCapital,BNPParibas,Deutsche
Bank,Fortis,INGBank,JPMorgan,MizuhoCorporate
BankandRoyalBankofScotland.Thetransactionwillbe
financedwith$45bninSeniorFacilitiesand$7bninbridge
financingfordivestituresofnon-coreassetsfromboththe
firms.InBevhasreceivedcommitmentsfora$9.8bnequity
bridgefinancingforuptosixmonthsafterclosing.There
arenoconditionsprecedentrelatedtothefundingunder
thefacilities,exceptthoseexpresslysetforthintheSenior
FacilitiesAgreementortheBridgeFacilitiesAgreement.
ExpectedClose:Thetransactionisexpectedtocloseby31-
Dec-08.
TerminationDate:Theterminationdateforthetransactionis
19-Mar-09.
TerminationFee:$1,250m,or2.78%basedontheimplied
equityvalueofthedeal.Theper-shareincreaserequired
tocoverthisfeeinasuperiorofferwouldbe$1.75.Under
certaincircumstances,therewouldbeareversetermination
feeandtheparentwouldowethecompany$1,250m
NorthAmerica
Monthly M&A report – 10
Exit multiples – Y/E 31/12/07 Premium analysis
Multiples Value ($m) Offer price per share ($)
70.00
Revenue 3.1x 18,989 1 day before 5.26%
EBITRADING DAYSA 15.1x 3,899.4 1 month before 14.53%
EBIT 20.3x 2,903.2 1 day after 4.63%
Earnings 25.1x 2,115 Pre-rumor 22.48%
Advisers
Target/Seller Bidder
Financial GoldmanSachsMerrillLynchCitigroupUBSMoelis&Company
Financial DeutscheBankBNPParibasLazardJPMorganCazenove
Legal WeilGotshal&MangesSimpsonThacher&BartlettSkaddenArpsSlateMeagher&FlomLatham&Watkins
Legal Allen&OveryCliffordChanceSullivan&CromwellPaulWeissRifkindWharton&GarrisonLinklaters;
PR KekstandCompany PR BrunswickGroupJoeleFrankWilkinsonBrimmerKatcher
mergermarket/dealReporter Intelligence
14-Jul-08 Anheuser-Busch:InBev’sfinancinghas'noouts';GrupoModelounlikelytohaveanyimpactondeal
03-Jul-08 Anheuser-Busch:InBevwouldbepayingfairvalueinlowUSD70s,shareholderssay;targetlikelytoexpectpremiumnorthofUSD80
19-Jun-08 HeinekenandSABMillercouldfacepressuretopursueconsolidationifInBev'sABtakeovermaterialises,bankersargue
18-Jun-08 Anheuser-BuschconsidersInBevbidasundervalued;InBevtobeginmeetingwithAnheuser-Buschshareholderslaterthisweek
09-Mar-07 InbevcouldmakeacquisitionsinEurope,saysWesternEuropepresident;mergerwithAnheuser-Buschis'purespeculation'
Dealofthemonth
Timetable and expected events
Regulatory Date Notes
HSR(USA) 30calendardayswaitingperiod;further30calendardaysfollowingcompliancewiththerequestforadditionalinformation
BelgianBanking,FinanceandInsuranceCommission
reapprovalbyBelgianBanking,FinanceandInsuranceCommission
EuronextBrussels reapprovalbyEuronextBrussels
Offer timetable
TerminationDate 19-Mar-09 redatebywhichmergermustbecompletedbeforeagreementmustbeamended
PrelimProxy repreliminaryproxystatementfiledwithSEC,reviewingprocesstypicallylastsatleast30calendardays,andcanbeaslongas60calendardays
DefProxy redefinitiveproxystatementdeclaredeffectivebySEC
EffectiveDate redatemergerbecomeseffective,normally2tradingdaysafterEGMapproval
SettlementDate redatepaymentcanbeexpectedby,normallywithin4businessdaysofEffectiveDateinstateofDelaware
Company events
BUDEGMrecorddate redatesharesmustbeheldbyinordertovoteattheEGM
BUDEGM reapprovalofmergerbytarget'sshareholders;normally1monthfromdefproxy
InBevEGMrecorddate redatesharesmustbeheldbyinordertovoteattheEGM
InBevEGM reapprovalofmergerbytarget'sshareholders;normally1monthfromdefproxy
NorthAmerica
Monthly M&A report – 11
Top 15 North American announced deals for 31 July 2008 YTDAnnounced Status Target company Sector Bidder company Seller company Exit multiples (x) Bid premia
1-day beforeDeal value
($m)Revenue EBITDA P/E
14-Jul-2008 P Anheuser-BuschCompaniesInc
Consumer InBevSA 3.1 15.1 25.1 5.3% 58,924
05-Jun-2008 P AlltelCorporationInc
TMT VerizonWirelessInc AtlantisHoldingsLLC
3.2 32.2 - 28,100
21-May-2008 C TimeWarnerCableInc(86.30%stake)
TMT TimeWarnerCableInc(Shareholders)
TimeWarnerInc 3.2 9.0 26.3 - 25,461
28-Apr-2008 P TheWmWrigleyJrCompany
Consumer MarsIncorporated 4.2 19.2 35.1 28.1% 22,638
11-May-2008 P EnCanaCorporation(IntegratedOilandCanadianPlainsdivisions)
Energy,Mining&Utilities
EnCanaCorporation(Shareholders)
EnCanaCorporation
21,545
10-Jul-2008 P RohmAndHaasLtd Industrials&Chemicals
TheDowChemicalCompany
2.0 12.2 24.9 74.0% 18,166
13-Apr-2008 P ElectronicDataSystemsCorporation
BusinessServices
Hewlett-PackardCompany(HP)
0.6 5.1 18.5 3.6% 13,044
23-May-2008 P AlliedWasteIndustriesInc
Industrials&Chemicals
RepublicServicesInc 2.0 7.7 19.8 3.5% 12,319
29-Jul-2008 P FordingCanadianCoalTrust
Energy,Mining&Utilities
TeckComincoLimited 9.8 39.7 41.8 11.1% 11,097
15-Jan-2008 C Citigroup(undisclosedeconomicinterest)
Financialservices
GovernmentofSingaporeInvestmentCorporationPteLtd;andKuwaitInvestmentAuthority
9,880
17-Mar-2008 P NYMEXHoldingsInc
Financialservices
CMEGroupInc 14.1 22.3 42.5 5.2% 9,504
16-Jul-2008 P AlphaNaturalResourcesInc
Energy,Mining&Utilities
Cleveland-CliffsInc 4.8 38.3 297.9 35.0% 9,164
18-Jul-2008 P BarrPharmaceuticalsInc
Pharma,Medical&Biotech
TevaPharmaceuticalIndustriesLtd
3.5 20.6 56.4 42.0% 8,757
10-Apr-2008 C MillenniumPharmaceuticalsInc
Pharma,Medical&Biotech
TakedaPharmaceuticalCompanyLimited
14.5 223.0 500.0 52.9% 7,659
07-Jul-2008 P SprintNextelCorporation(25GHzspectrumandWiMAXrelatedassets)
TMT ClearwireCorporation SprintNextelCorporation
7,400
12-Jun-08 P AppliedBiosystemsGroup
Pharma,Medical&Biotech
InvitrogenCorporation 2.8 23.2 42.2 17.0% 5,915
12-May-08 P DRSTechnologiesInc
Defence FinmeccanicaSpA 1.5 11.0 20.3 4.9% 4,897
21-Feb-08 P ChoicePointInc BusinessServices
ReedElsevierplc 4.2 21.3 58.8 48.5% 4,167
C=Completed;P=Pending;L=Lapsed Source:mergermarket
Topdeals
NorthAmerica
Monthly M&A report – 12
Topdeals
Top 5 North American announced deals for July 2008Announced Status Target company Sector Bidder company Seller company Exit multiples (x) Bid premia
1-day beforeDeal value
($m)Revenue EBITDA P/E
14-Jul-2008 P Anheuser-BuschCompaniesInc
Consumer InBevSA 3.1 15.1 25.1 5.3% 58,924
10-Jul-2008 P RohmAndHaasLtd Industrials&Chemicals
TheDowChemicalCompany
2.0 12.2 24.9 74.0% 18,166
29-Jul-2008 P FordingCanadianCoalTrust
Energy,Mining&Utilities
TeckComincoLimited 9.8 39.7 41.8 11.1% 11,097
16-Jul2008 P AlphaNaturalResourcesInc
Energy,Mining&Utilities
Cleveland-CliffsInc 4.8 38.3 297.9 35.0% 9,164
18-Jul-2008 P BarrPharmaceuticalsInc
Pharma,Medical&Biotech
TevaPharmaceuticalIndustriesLtd
3.5 20.6 56.4 42.0% 8,757
C=Completed;P=Pending;L=Lapsed Source:mergermarket
NorthAmerica
Monthly M&A report – 13
Expecteddeals
Situation Target company
Sector Potential bidder company
Financial adviser to bidder (B); target (T); seller (S)
Seller company
Market cap/ est. value ($m)
Comments
Expecteddeal GenentechInc
Pharma,Medical&Biotech
RocheHoldingAG GoldmanSachs(T)
100,890 Genentech,Inc.announcedthatithasformedaspecialcommitteeofitsBoardofDirectorstoassesstheproposalfromRochetoacquirealloftheoutstandingsharesofGenentechstocknotownedbyRocheatapriceof$89.00incashpershare.Informingthespecialcommittee,theBoardofDirectorsofGenentechresolvedthattheBoardwouldnotrecommendtostockholdersorotherwiseapproveamergerorotherbusinesscombinationtransactionwithRochewithoutthepriorfavorablerecommendationofthespecialcommittee.
Expecteddeal CalpineCorporation
Energy,Mining&Utilities
NRGEnergyInc GoldmanSachs(T)
9,577 CalpineCorporationtodayconfirmedthaton14May,2008,itreceivedanunsolicitedproposalfromNRGEnergy,regardingapotentialcombinationbetweenCalpineandNRG.ThetermsofNRG'sproposalincludedanall-stockmergertransactionatafixedexchangeratioof0.534x,whichimpliesapremiumof6.7%basedontheclosingpricesofbothcompanies'stocksasof21May2008.Consistentwithitsfiduciarydutiesandinconsultationwithitsfinancialadvisorandlegalcounsel,Calpine'sBoardofDirectorswillcontinuetoreviewtheNRGproposaltodetermineifitisinthebestinterestofCalpine'sshareholders.
Expecteddeal TransAltaCorporation
Energy,Mining&Utilities
GlobalInfrastructurePartners;orLSPowerEquityPartners
7,015 TransAltaannouncedthatitsboardhasconcludedabidfromLSPowerEquityPartnersandGlobalInfrastructurePartnersundervaluesthecompany.ThelistedCanadianenergycompanystatedthatthebid,forCAD39pershare,undervaluesTransAlta.
Expecteddeal VirginMediaInc
TMT Undisclosedbidder GoldmanSachs(T)
5,306 VirginMedia,theUSincorporatedmultimediagroup,announcedthatithasreceivedaproposaltoacquire100%ofthecommonstockoftheCompany.TheCompanywouldnothaveengagedinnegotiationswiththeofferoryet.Theproposalisbasedonpublicinformationandissubjecttovariousconditions,includingaduediligenceexaminationandaperiodofexclusivity.Theproposalalsostatesthatitwillbewithdrawnifitstermsarepubliclydisclosed.
Expecteddeal EncoreAcquisitionCompany
Energy,Mining&Utilities
Undisclosedbidder LehmanBrother(T)
3,604 EncoreAcquisitionCompanyannouncedthatitsBoardofDirectorshasauthorizedtheCompany’smanagementteamtoexploreabroadrangeofstrategicalternativestofurtherenhanceshareholdervalue,including,butnotlimitedto,asaleormergeroftheCompany.LehmanBrothersInc.hasbeenengagedastheCompany’sfinancialadvisorinthisprocess.
Expecteddeal NationalCityCorporation
FinancialServices
Undisclosedbidder GoldmanSachs(T)
3,387 NationalCityCorporationannouncedthatitsBoardofDirectorsisreviewingarangeofstrategicalternativesforthecompany.NationalCitysaidthattherecanbenoassurancethatthisreviewwillresultinthecompanyundertakinganyparticulartransaction.GoldmanSachshasbeenretainedasNationalCity'sadvisorforthisreview.
Expecteddeal DieboldIncorporated
BusinessServices
UnitedTechnologiesCorporation
2,602 Diebold,IncreceivedanunsolicitedproposalbyUnitedTechnologiesCorporationtoacquirethecompanyinanallcashtransactionvaluedat$40.00pershareofDiebold.DieboldrejectedtheunsolicitedproposalfromUnitedTechnologieson3March2008.
NorthAmerica
Monthly M&A report – 14
Expecteddeals
Situation Target company
Sector Potential bidder company
Financial adviser to bidder (B); target (T); seller (S)
Seller company
Market cap/ est. value ($m)
Comments
Expecteddeal ConsecoInc FinancialServices
Undisclosedbidder MorganStanley(T)
2,030 ConsecodeclinedSteelPartnersrequestforboardseats,statingthattheyhavebeenworkingonstrategicalternativesoverthepastseveralmonths.On24March2008,SteelPartnets,ina13-DfilingwiththeSEC,discloseda9.4%stakeinConsecoInc.
Expecteddeal GreyWolfInc
Energy,Mining&Utilities
PrecisionDrillingTrust(PDS)
UBS(T) 1,508 GreyWolf,Incwouldhaverecentlyopeneditsdataroomtopotentialbuyers.Sincethen,thecompanyhasreceivedsomeindicationsofinterest,withvariousbuyersalreadytablingnon-bindingoffers.
Expecteddeal AsystTechnologiesInc
TMT AquestSystemsCorp;orTheGoresGroup,LLC
MerrillLynch(T)
228 AsystTechnologiesInc.announcedthattheCompanyreceivedanunsolicitedletterfromAquestSystemsCorp.,California-basedmakerofsemiconductormanufacturingautomationequipment,expressinganinterestinexploringapotentialacquisitionofAsystfor$6.50incashpershare.Consistentwithitsfiduciaryduties,Asyst’sBoardofDirectorsisreviewingtheexpressionofinterestinconsultationwithitsfinancialandlegaladvisors.
C=Completed;P=Pending;L=Lapsed Source:mergermarket
NorthAmerica
Monthly M&A report – 15
Leaguetables
value
YTD 31-Jul- 2008
House Value ($m)
Deal count
1 GoldmanSachs 293,794 88
2 LehmanBrothers 229,238 46
3 Citigroup 220,238 50
4 JPMorgan 217,075 74
5 DeutscheBank 159,196 36
6 CreditSuisse 147,874 61
7 MorganStanley 143,266 68
8 CenterviewPartners 109,926 4
9 MerrillLynch 97,160 60
10 UBS 93,990 59
11 BancofAmericaSecurities 44,591 29
12 ABNAMRO 44,237 17
13 EvercorePartners 43,400 10
14 WachoviaCorporation 40,124 27
15 WilliamBlair&Company 36,277 25
16 Lazard 35,874 46
17 RoyalBankofScotlandGroup 30,163 2
18 ScotiaCapital 29,765 17
19 RBCCapitalMarkets 27,975 25
20 BNPParibas 26,177 3
Source:mergermarket
volume
Thefinancialadviserleaguetablesbyvalueandvolumehavebeenrunfrom01January2008to31July2008andexcludelapsedandwithdrawndeals.Thetablescoverallsectorsandarebasedonthegeographyofeitherthetarget,bidderorsellerbeingUSAandCanada
YTD 31-Jul- 2008
House Value ($m)
Deal count
1 GoldmanSachs 293,794 88
2 JPMorgan 217,075 74
3 MorganStanley 143,266 68
4 HoulihanLokey 8,875 62
5 CreditSuisse 147,874 61
6 MerrillLynch 97,160 60
7 UBS 93,990 59
8 Citigroup 220,238 50
9 LehmanBrothers 229,238 46
10 Lazard 35,874 46
11 Jefferies&Company 10,407 43
12 DeutscheBank 159,196 36
13 BancofAmericaSecurities 44,591 29
14 Rothschild 11,498 28
15 WachoviaCorporation 40,124 27
16 WilliamBlair&Company 36,277 25
17 RBCCapitalMarkets 27,975 25
18 MacquarieGroup 4,324 23
19 CIBCWorldMarkets 24,548 22
20 KPMG 1,913 21
Source:mergermarket
Top 20 financial advisers
value
YTD 31-Jul- 2008
House Value ($m)
Deal count
1 GibsonDunn&Crutcher 172,628 42
2 McCarthyTetrault 135,125 35
3 SkaddenArpsSlateMeagher&Flom 123,189 70
4 Hunton&Williams 115,141 15
5 SimpsonThacher&Bartlett 108,501 43
6 SutherlandAsbill&Brennan 107,916 4
7 Latham&Watkins 99,003 91
8 ClearyGottliebSteen&Hamilton 88,413 43
9 WeilGotshal&Manges 84,651 53
10 PaulWeissRifkindWharton&Garrison 74,786 30
11 WachtellLiptonRosen&Katz 69,048 21
12 Debevoise&Plimpton 62,135 20
13 Sullivan&Cromwell 60,943 37
14 Dewey&LeBoeuf 54,269 46
15 CravathSwaine&Moore 52,966 24
16 StikemanElliott 37,378 36
17 Morrison&Foerster 37,175 26
18 JonesDay 36,906 118
19 DavisPolk&Wardwell 34,984 23
20 Ropes&Gray 34,784 21
Source:mergermarket
volume
Thefinancialadviserleaguetablesbyvalueandvolumehavebeenrunfrom01January2008to31July2008andexcludelapsedandwithdrawndeals.Thetablescoverallsectorsandarebasedonthegeographyofeitherthetarget,bidderorsellerbeingUSAandCanada
YTD 31-Jul- 2008
House Value ($m)
Deal count
1 JonesDay 36,906 118
2 Latham&Watkins 99,003 91
3 Kirkland&Ellis 25,380 82
4 DLAPiper 27,348 73
5 SkaddenArpsSlateMeagher&Flom 123,189 70
6 WeilGotshal&Manges 84,651 53
7 O'Melveny&Myers 20,320 48
8 Dewey&LeBoeuf 54,269 46
9 SimpsonThacher&Bartlett 108,501 43
10 ClearyGottliebSteen&Hamilton 88,413 43
11 Blake,Cassels&Graydon 15,730 43
12 WilsonSonsiniGoodrich&Rosati 5,095 43
13 GibsonDunn&Crutcher 172,628 42
14 Hogan&Hartson 18,521 40
15 MorganLewis&Bockius 3,599 38
16 Sullivan&Cromwell 60,943 37
17 StikemanElliott 37,378 36
18 McCarthyTetrault 135,125 35
19 CliffordChance 23,782 35
20 Baker&McKenzie 14,516 35
Source:mergermarket
Top 20 legal advisers
NorthAmerica
Monthly M&A report – 16
Leaguetables
value
YTD 31-Jul- 2008
House Value ($m)
Deal count
1 TheWhitehallFunds 5,443 1
2 TheCarlyleGroup 5,175 9
3 FirstReserve 4,574 6
4= AvistaCapitalPartners 4,100 1
4= NordicCapital 4,100 1
6 TPG 3,920 6
7 Hellman&Friedman 3,092 3
8 ApaxPartners 3,060 2
9 WarburgPincus 2,412 5
10 MatlinPattersonGlobalAdvisers 2,315 2
11 BainCapital 1,836 2
12= GroveInternationalPartners 1,797 1
12= JCFlowers&Co 1,797 1
14= MadisonDearbornPartners 1,715 1
14= TAAssociates 1,715 1
Source:mergermarket
volume
Thefinancialadviserleaguetablesbyvalueandvolumehavebeenrunfrom01January2008to31July2008andexcludelapsedandwithdrawndeals.Thetablescoverallsectorsandarebasedonthegeographyofeitherthetarget,bidderorsellerbeingUSAandCanada
YTD 31-Jul- 2008
House Value ($m)
Deal count
1 TheCarlyleGroup 5,175 9
2 SunCapitalPartners 977 8
3 GSCapitalPartners 759 8
4 FirstReserve 4,574 6
5 TPG 3,920 6
6 TheRiversideCompany 252 6
7 WarburgPincus 2,412 5
8 H.I.G.Capital 121 5
9 AudaxPrivateEquityGroup - 5
10 OneEquityPartners 506 4
11 FalconheadCapital - 4
12 Hellman&Friedman 3,092 3
13 PlatinumEquity 777 3
14 LehmanBrothersPrivateEquity 516 3
15 KRGCapitalPartners 450 3
Source:mergermarket
Activity table of private equity firms on North American buyouts
value
YTD 31-Jul- 2008
House Value ($m)
Deal count
1= GSCapitalPartners 28,100 1
1= TPG 28,100 1
3= MSDCapital 1,710 1
3= PerryCapital 1,710 1
5 OdysseyInvestmentPartners 1,438 1
6 WarburgPus 1,235 2
7 CCMPCapitalAdvisers 1,123 1
8 PlatinumEquity 1,093 1
9 Welsh,Carson,Anderson&Stowe 1,052 2
10 HarbingerCapitalPartners 1,005 1
11 OntarioTeachersPensionPlan 867 1
12 MontaguPrivateEquity 805 1
13 AdamsStreetPartners 765 2
14 GoldenGateCapital 721 2
15 FranciscoPartners 720 3
Source:mergermarket
volume
Thefinancialadviserleaguetablesbyvalueandvolumehavebeenrunfrom01January2008to31July2008andexcludelapsedandwithdrawndeals.Thetablescoverallsectorsandarebasedonthegeographyofeitherthetarget,bidderorsellerbeingUSAandCanada
YTD 31-Jul- 2008
House Value ($m)
Deal count
1 AmericanCapitalStrategies 650 8
2 AccelPartners 493 5
3 IntelCapital 7 4
4 FranciscoPartners 720 3
5 RedpointVentures 640 3
6 CharlesRiverVentures 203 3
7 NewburyVentures 127 3
8 TridentCapital 100 3
9 KendaCapital 92 3
10 VengrowthCapitalPartners 13 3
11 WarburgPus 1,235 2
12 Welsh,Carson,Anderson&Stowe 1,052 2
13 AdamsStreetPartners 765 2
14 GoldenGateCapital 721 2
15 TenaskaCapitalManagement 668 2
Source:mergermarket
Activity table of private equity firms on North American exits
NorthAmerica
Monthly M&A report – 17
Trendgraphs
North American M&A quarterly trend
value volume
Movingaveragetrendline
0
100,000
200,000
300,000
400,000
500,000
600,000
700,000
Q32008*
Q22008
Q12008
Q4 2007
Q3 2007
Q2 2007
Q12007
Q4 2006
Q32006
Q22006
Q12006
Q42005
Q32005
Q22005
Q1 2005
Q4 2004
Q32004
Q22004
Q12004
Q42003
Q32003
Q22003
Q12003
valu
e ($
m)
0
200
400
600
800
1000
1200
1400
1600
Q3 2008*
Q2 2008
Q12008
Q4 2007
Q32007
Q22007
Q12007
Q42006
Q3 2006
Q2 2006
Q1 2006
Q42005
Q32005
Q22005
Q1 2005
Q42004
Q32004
Q22004
Q12004
Q42003
Q32003
Q22003
Q1 2003
num
ber
of d
eals
North American M&A quarterly private equity trend
value volume
0
50,000
100,000
150,000
200,000
250,000
300,000
Q3 2008*
Q2 2008
Q1 2008
Q4 2007
Q3 2007
Q2 2007
Q12007
Q42006
Q32006
Q2 2006
Q12006
Q42005
Q32005
Q2 2005
Q1 2005
Q42004
Q3 2004
Q22004
Q12004
Q4 2003
Q32003
Q2 2003
Q12003
valu
e ($
m)
North Americanbuyouts
North Americanexits
0
50
100
150
200
250
300
Q32008*
Q22008
Q1 2008
Q42007
Q32007
Q22007
Q12007
Q4 2006
Q32006
Q22006
Q12006
Q42005
Q32005
Q22005
Q12005
Q4 2004
Q32004
Q22004
Q12004
Q42003
Q32003
Q22003
Q12003
num
ber
of d
eals
North Americanbuyouts
North Americanexits
NorthAmerica
Monthly M&A report – 18
Trendgraphs
North American M&A annual trends
value volume
0
200
400
600
800
1000
1200
1400
1600
1800
2008YTD20072006200520042003
valu
e ($
bn)
All North American M&A
North American buyouts
North American exits
0
1000
2000
3000
4000
5000
6000
2008YTDY2007Y2006Y2005Y2004Y2003
num
ber
of d
eals
All North American M&A
North American buyouts
North American exits
North American M&A Sector Breakdown YTD 2008
value volume
Industrials & Chemicals
TMT
Business services
Energy, Mining & Utilites
Consumer
Financial services
Pharma, Medical & Biotech
Construction
Leisure
Transport
Defence
Agriculture
13.2%
8.4%
11.1%
1%
7.6%
1.7% 0.3%0.9%
19.3%
18.6%
16.5%
1.3%
Industrials and Chemicals
TMT
Business services
Consumer
Energy/Mining/Utilites
Financial services
Pharma/Medical/Biotech
Construction
Leisure
Transport
Defence
Agriculture
11.4%
16.9%
10.2%
9.2%
1.5%
9%
0.3%
20.2%
14.5%
3.2%2.9%
0.7%
NorthAmerica
Monthly M&A report – 19
Trendgraphs
North American M&A deal size breakdown
value volume
0
200
400
600
800
1000
valu
e ($
bn)
> $501m
$251m - $500m
$101m - $250m
$15m - $100m
$5m - $14.9m
H1 2003
H2 2003
H1 2004
H2 2004
H1 2005
H2 2005
H1 2006
H22007
H1 2007
H2 2006
H12008
0
200
400
600
800
1000
1200
1400
1600
1800
2000
2200
2400
2600
2800
num
ber
of d
eals
> $501m
$251m - $500m
$101m - $250m
$15m - $100m
$5m - $14.9m
Value not disclosed
H1 2003
H2 2003
H1 2004
H2 2004
H1 2005
H2 2005
H1 2006
H2 2007
H1 2007
H2 2006
H12008
NorthAmerica
Monthly M&A report – 20
Mid-marketdeals
Top 15 North American announced mid market deals for July 2008 ($10mto$250m)Announced Status Target company Sector Bidder company Seller company Exit multiples (x) Bid premia
1-day beforeDeal value($m)
Revenue EBITDA P/E
31/07/2008 P SignalHoldingsLLC BusinessServices
AssurantInc TridentIILP 0.8 - 250
22/07/2008 P QGXLtd Energy,Mining&Utilities
KerryHoldingsLimited;andMCSHoldingLLC
MongoliaHoldingsCorp
453.1 (loss) (loss) 11.1% 245
01/07/2008 P UTStarcomInc(PersonalCommunicationsDivision)
TMT AIGVantageCapital UTStarcomInc - 240
17/07/2008 C NorthstarExplorationandProductionInc
Energy,Mining&Utilities
DynamicOffshoreResourcesLLC
- 235
22/07/2008 P LightTowerWirelessLLC
TMT SBACommunicationsCorporation
LightTowerLLC - 224
04/07/2008 P CorderoEnergyInc Energy,Mining&Utilities
EmberResourcesInc
4.2 6.2 66.1 17.7% 224
31/07/2008 P FirstAllmericaFinancialLifeInsuranceCompany
FinancialServices
CommonwealthAnnuityandLifeInsuranceCompany
TheHanoverInsuranceGroup
n/a n/a - 220
08/07/2008 P Stockamp&AssociatesInc
BusinessServices
HuronConsultingGroupInc
2.3 - 219
01/07/2008 C WhitingCleanEnergyPowerPlant
Energy,Mining&Utilities
BPAlternativeEnergyInc
NiSourceInc - 210
28/07/2008 NationalDefaultExchangeLP
BusinessServices
AmericanProcessingCompanyLLC(APC)
NDExSBSInvestmentILP;THP/NDExAIVHoldingsLP;andTrinityHuntPartnersIIILP
- 209
24/07/2008 P ThekenDiscLLC;ThekenSpineLLC;andThericsLLC
Pharma,Medical&Biotech
IntegraLifeSciencesHoldingsCorporation
Theken - 200
30/07/2008 P VoltInformationSciences(directorysystems&servicesandpublishingoperations)
TMT YellowPagesIncomeFund
VoltInformationSciencesInc
2.6 - 178
09/07/2008 P StrataLightCommunicationsInc
TMT OpnextInc - 172
14/07/2008 P FluidPowerResource(distributionbusinesses)
BusinessServices
AppliedIndustrialTechnologiesInc
FluidPowerResourceLLC
0.7 - 169
21/07/2008 P BarnettShaleProperties(undisclosedstake)
Energy,Mining&Utilities
WilliamsCompaniesInc
AspectAbundantShaleLP
- 166
Source:mergermarket
NorthAmerica
Monthly M&A report – 21
North American M&A quarterly mid-market trend
value volume
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
aQ32008*
Q2 2008
Q12008
Q4 2007
Q32007
Q2 2007
Q12007
Q4 2006
Q32006
Q2 2006
Q12006
Q4 2005
Q3 2005
Q2 2005
Q1 2005
Q4 2004
Q3 2004
Q2 2004
Q12004
Q42003
Q32003
Q22003
Q12003
valu
e ($
m)
0
100
200
300
400
500
600
Q3 2008*
Q2 2008
Q1 2008
Q42007
Q32007
Q22007
Q12007
Q42006
Q3 2006
Q2 2006
Q12006
Q4 2005
Q32005
Q2 2005
Q1 2005
Q4 2004
Q3 2004
Q2 2004
Q12004
Q42003
Q32003
Q2 2003
Q1 2003
num
ber
of d
eals
Movingaveragetrendline
Mid-marketdeals
NorthAmerica
Monthly M&A report – 22
Mid-marketleaguetables
YTD 31-Jul- 2008
House Value ($m)
Deal count
Value:
1 JPMorgan 4,022 32
2 Jefferies&Company 3,808 28
3 CreditSuisse 3,284 23
4 HoulihanLokey 3,232 32
5 MerrillLynch 2,826 17
6 Lazard 2,210 21
7 GoldmanSachs 2,168 17
8 UBS 2,133 15
9 MorganStanley 2,118 14
10 Citigroup 1,683 14
11 BancofAmericaSecurities 1,507 12
12 Rothschild 1,347 13
13 PiperJaffray&Co 1,316 16
14 Deloitte 1,301 10
15 DeutscheBank 1,199 11
Volume:
1 JPMorgan 4,022 32
2 HoulihanLokey 3,232 32
3 Jefferies&Company 3,808 28
4 CreditSuisse 3,284 23
5 Lazard 2,210 21
6 MerrillLynch 2,826 17
7 GoldmanSachs 2,168 17
8 PiperJaffray&Co 1,316 16
9 UBS 2,133 15
10 MorganStanley 2,118 14
11 Citigroup 1,683 14
12 KPMGCorpFin 1,026 14
13 Rothschild 1,347 13
14 MacquarieGroup 1,158 13
15 BancofAmericaSecurities 1,507 12
Source:mergermarket
Thefinancialadviserleaguetablesbyvalueandvolumehavebeenrunfrom01January2008to31July2008andexcludelapsedandwithdrawndeals.Thetablescoverallsectorsandarebasedonthegeographyofeitherthetarget,bidderorsellerbeingUSAandCanada
Top 15 mid-market financial advisers – North America($10mto$250m)
YTD 31-Jul- 2008
House Value ($m)
Deal count
Value:
1 Latham&Watkins 4,117 47
2 JonesDay 3,743 38
3 SkaddenArpsSlateMeagher&Flom 3,539 28
4 Kirkland&Ellis 3,233 34
5 DLAPiper 2,947 33
6 Dewey&LeBoeuf 2,537 18
7 O'Melveny&Myers 2,454 26
8 Blake,Cassels&Graydon 2,237 21
9 GoodwinProcter 2,205 19
10 Vinson&Elkins 2,122 17
11 WeilGotshal&Manges 1,927 20
12 WilsonSonsiniGoodrich&Rosati 1,794 21
13 Sullivan&Cromwell 1,707 14
14 MorganLewis&Bockius 1,561 19
15 Baker&McKenzie 1,533 22
Volume:
1 Latham&Watkins 4,117 47
2 JonesDay 3,743 38
3 Kirkland&Ellis 3,233 34
4 DLAPiper 2,947 33
5 SkaddenArpsSlateMeagher&Flom 3,539 28
6 O'Melveny&Myers 2,454 26
7 Baker&McKenzie 1,533 22
8 Blake,Cassels&Graydon 2,237 21
9 WilsonSonsiniGoodrich&Rosati 1,794 21
10 WeilGotshal&Manges 1,927 20
11 McCarthyTetrault 1,332 20
12 GoodwinProcter 2,205 19
13 MorganLewis&Bockius 1,561 19
14 Dewey&LeBoeuf 2,537 18
15 Hogan&Hartson 1,531 18
Source:mergermarket
Thefinancialadviserleaguetablesbyvalueandvolumehavebeenrunfrom01January2008to31July2008andexcludelapsedandwithdrawndeals.Thetablescoverallsectorsandarebasedonthegeographyofeitherthetarget,bidderorsellerbeingUSAandCanada
Top 15 mid-market legal advisers – North America($10mto$250m)
Monthly M&A report – 23
Latin America
Consolidation of the Brazilian residential real estate development industry• CyrelaBrazilRealty,theBrazilbasedcompanyengaged
inthedevelopment,lease,constructionandsaleof
residentialandcommercialrealestatepropertieshas
signedaMemorandumofUnderstandingtobuyits
competitorAgraEmpreendimentosImobiliarios,for
approximatelyBRL1.5bn($934m).
• Thetransactionisthefirstoflargesizeintheexpected
waveofconsolidationoftheBrazilianresidentialreal
estatedevelopmentindustry,withtheconclusionofthe
takeover,thecapitalofCyrelawillbeincreasedwiththe
newsharesissuedtobegiventoshareholdersofAgra.
Cyrelahasoffered0.425commonsharesperAEshare.
BasedonCB’sclosingstockpriceofBRL22.45($13.928)
on20June2008,thelastfulltradingdaypriortothe
announcement,eachAEsharewasvaluedat€9.541
($5.919).
• TheacquisitionwillconsolidatetheleadershipofCyrela
withthelaunchingofnewrealestatedevelopments
forecasttoreachaworthofaroundBRL10bn($6.3bn)
for2008.Theagreementissubjecttocustomaryauditing
ofaccountsofthesellerandtheapprovalatspecial
shareholdermeetings.BancodeInvestimentoCredit
SuissewasthefinancialadvisertoAgraandGoldman
SachsdoBrasilBancoMultiploadvisedCyrela.
• Agrahasbeenoperatinginrealestatedevelopments
inBrazilformorethan10years,withatrackrecordof
developmentof40realestateprojects.Agrareportsa
landbankwithanapproximateproprietarypotentialVGV
ofBRL11bninMarch2008,ofwhich44%islocatedin
thestateofSaoPauloand40%intheNortheastregion.
Agrahasfocusedonprojectsforthemiddleandupper
middleincomeclasses,operatinginthecitiesofSao
Paulo,Salvador,RiodeJaneiroandRecife,aswellas
othercitiesofthestateofSaoPaulo.
Venezuela to Nationalize Sidor• VenezuelanPresidentHugoChavezisexpectedtomeet
TechintpresidentPaoloRoccatoreachanagreement
overSidor,despitethenegotiationsdeadlineexpiring
on30June2008.TheArgentineconglomerateowns
a60%stakeinSidor,whichisoneofLatinAmerica’s
biggeststeelcompanieswithnearly15,000workersand
productionlastyearof4.3mtonesofliquidsteel.
• ThediscussioncontinuesbetweentheVenezuelan
governmentandsteelmakerSidor,overtheappropriate
priceforTernium’s60%stakeinthecompany.
Venezuela’snationalassemblyannouncedthe
nationalizationofSidor,ownedbyTernium,thesteelarm
ofArgentineindustrialgroupTechint,onApril30.Since
then,negotiationshavebeenongoingwithlittleprogress.
Terniumwantstomaintainaminorityshareinthe
companyandisrequestingnolessthan$2.4bnfora50%
stake.PresidentHugoChavezhasbelievesthe$2.4bn
isanunacceptableprice,andhassubsequentlyoffered
$1.2bnincashandtheremainingportioninproducts.
• VenezuelagovernmentwilltransformSidorintoasocialist
companybyraisingsalariesandimprovingbenefitsfor
thesteelmaker’s4,500employees,alsothegovernments
plantoreduceSidor’sexportsandincreasesteelsupplies
fordomesticconsumption.
Monthly M&A report – 24
Dealofthemonth
Target: AmnetTelecommunicationsHoldingLimited Announced: 27July2008
Bidder: MillicomInternationalCellularSA Deal value: $510m
Vendor: - Deal nature: Recommended;Transatlantic
• MillicomInternationalCellularS.A.,thelistedLuxembourg
basedglobaltelecommunicationscompany,hasagreed
toacquireAmnetTelecommunicationsHoldingLimited,
theCostaRicabasedproviderofbroadbandandcable
televisionservices,foranassumedcashconsiderationof
$510m
• In2007,Amnethadrevenuesof$143m.TheCentral
Americanmarketaccountsfor43%oftherevenuefor
Millicom,andwiththeacquisition,Millicomexpectsto
expanditsservicesandpositioninitscorebroadbandand
cabletelevisionmarket.Alsotheacquisitioncomesin
responsetogrowingdemandforbroadbandservicesin
theregion.ThetakeoverofAmnetgivesitanadditional
high-ARPUcustomerbaseaswellasanIPnetworkto
supportitslaunchof3Gservicesthisyear.Thedealis
subjecttocustomaryapprovalsandisexpectedtoclose
withinthreemonthsfromtheannouncement
Latin America
Advisers
Target/seller Bidder
Financial CreditSuisse Financial MorganStanleyDresdnerKleinwort
Legal Dewey&LeBoeuf Legal TorysBarros&ErrazurizAbogados
PR - PR -
Mergermarket/dealReporter Intelligence
11-Jan-08 Premiere:Amnetsaleexpectedtocloseimminently;TelefonicaandSlimamongfoursuitors,source
Exit multiples – Y/E 31/12/2007
Multiples Value (€m)
Revenue 3.6 143
EBITDA 9.1 56
EBIT - n/av
Earnings - n/av
Monthly M&A report – 25
Top 15 Latin American announced deals for YTD 31 July 2008Announced Status Target company Sector Bidder company Seller company Exit multiples (x) Bid premia
1-day beforeDeal value
($m)Revenue EBITDA P/E
26-Mar-08 P BolsadeMercadoriaseFuturos
FinancialServices
BovespaHoldingSA - 7,320
31-Mar-08 P IronXMineracaoSA Energy,Mining&Utilities
AngloAmericanParticipacoesemMineracaoLtda
- 5,519
25-Apr-08 P BrasilTelecomParticipacoesSA(35.20%stake);andBrasilTelecomSA(18.08%stake)
TMT TelemarParticipacoesSA
11.9% 4,679
25-Apr-08 P BrasilTelecomParticipacoesSA(22.28%stake)
TMT TelemarParticipacoesSA
1.8 8.9 42.7 44.8% 3,535
4-Mar-08 P AnadarkoPetroleumCorporation(50%stake);andAnadarkoPetroleumCorporation(25%stake)
Energy,Mining&Utilities
StatoilHydroASA AnadarkoPetroleumCorporation
- 1,800
5-Mar-08 C ArcelorMittalInoxBrasilSA(42.66%stake)
Industrials&Chemicals
ArcelorMittalNV 1.6 6.0 9.0 2.2% 1,657
12-Feb-08 C SegurosIngSADeCV
FinancialServices
AXASA INGGroupNV n/a n/a - 1,500
5-Mar-08 C BancoBradescoSA(2.50%stake)
FinancialServices
CidadedeDeusCompanhiaComercialdeParticipacoes;andFundacaoBradesco
BancoBilbaoVizcayaArgentariaSA
n/a n/a 14.7 1.3% 1,485
24-Apr-08 P ElTesoro(30%stake);andEsperanza(miningproject30%stake)
Energy,Mining&Utilities
MarubeniCorporation
Antofagastaplc - 1,310
17-Jun-08 C SociedadAustraldeElectricidadSA
Energy,Mining&Utilities
MorganStanleyInfrastructure;andOntarioTeachersPensionPlan
PublicServiceEnterpriseGroup
- 1,287
24-Apr-08 P EssoBrasileiradePetroleoLimitada
Consumer CosanSAIndustriaeComercio
ExxonMobilCorporation
- 989
3-Jun-08 C SociedadConcesionariaAutopistadeAconcaguaSA;andSociedadConcesionariaAutopistadeItataSA
BusinessServices
GlobalViaInfraestructuras
BancoNacionalDeComercioExterior
- 958
2-Feb-08 C GlobalMineracaoLtda;MineracaoJ.MendesLtda;andSiderurgicaOestedeMinasLtda
Energy,Mining&Utilities
UsinasSiderurgicasdeMinasGerais
- 925
17-Mar-08 C CaracaraProspect(70%stake)
Energy,Mining&Utilities
CEPSAColombiaSA
HupecolCaracaraLLC
- 920
22-Feb-08 C CorporacionAcerosDM
Industrials&Chemicals
GrupoSimecSAdeCV
- 850
C=Completed;P=Pending;L=Lapsed Source:mergermarket
Topdeals
CEE and CISLatin America
Monthly M&A report – 26
Topdeals
Latin America
Top 5 Latin American announced deals of the month (July 2008)Announced Status Target company Sector Bidder company Seller company Exit multiples (x) Bid premia
1-day beforeDeal value
($m)Revenue EBITDA P/E
22-Jul-08 P Amnet TelecommunicationsHoldingLimited
TMT MillicomInternationalCellularSA
3.6 9.1 - 510
3-Jul-08 P SaoMarcosEmpreendimentosImobiliariosLtda
FinancialServices
Ancar EmpreendimentosComerciais
MarinhoFamily n/a n/a - 435
21-Jul-08 C HipotecariaSuCasitaSADECV(60%stake)
FinancialServices
CajaMadrid n/a n/a - 342
11-Jul-08 P HidropowerEnergiaSA;andTupanEnergiaEletricaSA
Energy,Mining&Utilities
GamaParticipacoesLtda
- 195
8-Jul-08 P KappaEnergyHoldingsLtd
Energy,Mining&Utilities
PacificRubialesEnergyCorp
- 168
C=Completed;P=Pending;L=Lapsed Source:mergermarket
Top 5 Chile announced deals for YTD 31 July 2008Announced Status Target
companySector Target
financial adviser
Target legal adviser
Bidder company Bidder financial adviser
Bidder legal adviser
Seller company
Deal value ($m)
24-Apr-08 P ElTesoro(30%stake);andEsperanza(30%stake)
Energy,Mining&Utilities
Violy&Co FreshfieldsBruckhausDeringer
MarubeniCorporation
JPMorgan SkaddenArpsSlateMeagher&Flom
Antofagastaplc
1,310
17-Jun-08 C SociedadAustraldeElectricidadSA
Energy,Mining&Utilities
Vinson&Elkins
MorganStanleyInfrastructure;andOntarioTeachersPensionPlan
DresdnerKleinwort;MorganStanley
Barros&ErrazurizAbogados;Torys
PublicServiceEnterpriseGroup
1,287
3-Jun-08 C SociedadConcesionariaAutopistadeAconcaguaSA;andSociedadConcesionariaAutopistadeItataSA
BusinessServices
GlobalViaInfraestructuras
Citigroup BancoNacionalDeComercioExteriorSNC
958
21-Feb-08 P MadecoSA(Cablebusiness)
TMT NexansSA EstudioEchecoparGarcia
MadecoSA 715
29-Apr-08 C SociedadproductoresdeLecheSA(42.6%stake)
Consumer FonterraCo-operativeGroupLtd
FundacionIsabelAninat
202
C=Completed;P=Pending;L=Lapsed Source:mergermarket
Monthly M&A report – 27
Topdeals
Top 5 Andean Community announced deals for YTD 31 July 2008Announced Status Target
companySector Target
financial adviser
Target legal adviser
Bidder company Bidder financial adviser
Bidder legal adviser
Seller company
Deal value ($m)
17-Mar-08 C CaracaraProspect(70%stake)
Energy,Mining&Utilities
CEPSAColombiaSA
BakerBotts HupecolCaracaraLLC
920
27-Mar-08 C CompaniaMineraMilpoSAA(26.12%stake)
Energy,Mining&Utilities
VotorantimMetaisLtd
JPMorgan 422
13-May-08 C ScotiabankPeruSAA(20%stake)
FinancialServices
WeilGotshal&Manges
BankofNovaScotia
IntesaSanpaoloSpA
200
8-Jul-08 P KappaEnergyHoldingsLtd
Energy,Mining&Utilities
Citigroup MayerBrown
PacificRubialesEnergyCorp
GMPSecurities
168
2-May-08 C CryogasSA Industrials&Chemicals
InduraSA TheLindeGroup
139
C=Completed;P=Pending;L=LapsedFullmember’sAndeancommunity:Bolivia,Columbia,Ecuador,Peru.
Source:mergermarket
Latin America
Monthly M&A report – 28
Expecteddeals
Situation Target company
Sector Potential bidder company
Seller company
Financial adviser
Market cap/ est. value
($m)
Comments
RumouredTakeoverTarget
Cia.ValedoRioDoce
Energy,Mining&Utilities
15,000 Valedisclosedthaton26May2008,itsseniormanagementapprovedaproposalofapublicofferingofcommonsharesandpreferredclassAshares,withamaximumvalueof$15bn.Itisrumoredthatthiscapitalhasbeenraisedforthepurposeofmakingacquisitions.
RumouredTakeoverTarget
HupecolLLC Energy,Mining&Utilities
PacificRubialesEnergyCorp
HoustonAmerican EnergyCorporation
173 PacificRubialesEnergyCorp,aColombianE&Pgroup,expectstoacquireoilfieldoperatorHupecol.
Expecteddeal
Alitalia Transportation Multi-LongCorp ItalianGovernments
1,500 Multi-LongCorp,theBrazilianrestructuringcompanyhasoffered€1billion(US$1.5billion)forItaly'stroubledAlitaliacarrier.ThecompanyhasproposedthepurchasetoItaly'sgovernmentandtoEuropeanregulators.
Expecteddeal
Entel TMT BolivianGovernment
Telecom - Bolivia'sPresidentEvoMoraleshasdecreedthenationalizationofthecompany'sleadingoperatorEntel,aunitofTelecomItalia.ThegovernmentsaysTelecomItaliahas60daystocometoanagreementwithitoverthevalueofthecompany'sshares.
Expecteddeal
AerolineasArgentinas
Transportation Buquebus GrupoMarsans
- GrupoMarsans,theprivateSpanishtravelgroup,wouldselltheentiretyofitsstakeinAerolineasArgentinasifitendsupwithlessthan52%.MarsanswouldinthemediumtermsellitsstakeintheArgentinianairline,ifcurrentnegotiationswiththeArgentinegovernmentmeantheSpanishcompany'sstakeisdilutedtolessthan52%.
Expecteddeal
GrupoInbursa FinancialServices
CriteriaLaCaixa CarlosSlim(privateinvestor)
2,300 GrupoFinancieroInbursa,thelistedMexico-basedfinancialservicesgroup,hasagreedtosellinprinciplea20%staketoSpain-basedbankinggroupLaCaixa,accordingtoanannouncementfiledtodaywiththeMexicanStockExchange(BMV).
Source:mergermarket
Latin America
Monthly M&A report – 29
Leaguetables
value
YTD 31- Jul-2008
House Value ($m)
Deal count
1 CreditSuisse 24,055 9
2 Rothschild 18,271 8
3 Citigroup 18,164 8
4 JPMorgan 13,293 10
5 MorganStanley 10,973 5
6 GoldmanSachs 10,411 4
7 UBS 9,505 11
8 BancoBradescoBBI 8,887 4
9 BancoItauHoldingFinanceira 8,214 2
10 LehmanBrothers 4,141 3
11 ABNAMRO 3,692 5
12 Jefferies&Company 1,800 1
13 DresdnerKleinwort 1,384 2
14 BNPParibas 958 1
15 HSBCBank 925 2
Source:mergermarket
volume
Thefinancialadviserleaguetablesbyvalueandvolumehavebeenrunfrom01January2008to31July2008andexcludelapsedandwithdrawndeals.Thetablescoverallsectorsandarebasedonthegeographyofeitherthetarget,bidderorsellerbeingLatinAmerica
YTD 31- Jul-2008
House Value ($m)
Deal count
1 UBS 9,505 11
2 JPMorgan 13,293 10
3 CreditSuisse 24,055 9
4 Rothschild 18,271 8
5 Citigroup 18,164 8
6 MerrillLynch 870 6
7 MorganStanley 10,973 5
8 ABNAMRO 3,692 5
9 GoldmanSachs 10,411 4
10 BancoBradescoBBI 8,887 4
11 PricewaterhouseCoopersCorpFin 32 4
12 LehmanBrothers 4,141 3
13 Rabobank 710 3
14 KPMGCorpFin - 3
15 BancoItauHoldingFinanceira 8,214 2
Source:mergermarket
Top 15 financial advisers - Latin America
value
YTD 31- Jul-2008
House Value ($m)
Deal count
1 Shearman&Sterling 11,291 5
2 White&Case 10,703 4
3 WeilGotshal&Manges 7,520 2
4 Sullivan&Cromwell 6,829 2
5= MachadoMeyerSendaczeOpice 6,199 2
5= MattosFilho,VeigaFilho,MarreyJr.eQuirogaAdvogados
6,199 2
7 Linklaters 5,633 3
8 McCarthyTetrault 5,552 4
9= DavisPolk&Wardwell 5,519 1
9= GibsonDunn&Crutcher 5,519 1
11 BakerBotts 3,520 2
12 SkaddenArpsSlateMeagher&Flom 3,207 5
13= Khaitan&Co 2,600 1
13= MilbankTweedHadley&McCloy 2,600 1
15 TozziniFreireTeixeiraESilvaAdvogado 2,188 4
Source:mergermarket
volume
Thelegaladviserleaguetablesbyvalueandvolumehavebeenrunfrom01January2008to31July2008andincludelapsedandwithdrawndeals.Thetablescoverallsectorsandarebasedonthegeographyofeitherthetarget,bidderorsellerbeingLatinAmerica
Top 15 legal advisers - Latin America
Latin America
YTD 31- Jul-2008
House Value ($m)
Deal count
1 Shearman&Sterling 11,291 5
2 SkaddenArpsSlateMeagher&Flom 3,207 5
3 White&Case 10,703 4
4 McCarthyTetrault 5,552 4
5 TozziniFreireTeixeiraESilvaAdvogado 2,188 4
6 Baker&McKenzie 61 4
7 Linklaters 5,633 3
8 Vinson&Elkins 1,910 3
9 Barbosa,Muessnich&Aragao 1,854 3
10 FrankGaliciayRobles 1,154 3
11 EstudioEchecoparGarcia 811 3
12 PinheiroNetoAdvogados 670 3
13 WeilGotshal&Manges 7,520 2
14 Sullivan&Cromwell 6,829 2
15 MachadoMeyerSendaczeOpice 6,199 2
Source:mergermarket
Monthly M&A report – 30
Latin America
Leaguetables
value
YTD 31- Jul-2008
House Value ($m)
Deal count
1 OntarioTeachersPensionPlan 1,287 1
2 GPInvestments 335 2
3 NexxusCapital 200 1
4 AxxonGroup 184 1
5 EtonParkCapitalManagement 60 1
Source:mergermarket
volume
TheprivateequitybuyoutactivitytablesbyvalueandvolumearebasedonprivateequityfirmsadvisingthebidderonbuyoutdealswherethedominantgeographyofthetargetcompanyisLatinAmericaThetablesbyvalueandvolumehavebeenrunfrom01January2008to31July2008andexcludelapsedandwithdrawndeals
YTD 31- Jul-2008
House Value ($m)
Deal count
1 GPInvestments 335 2
2 OntarioTeachersPensionPlan 1287 1
3 NexxusCapital 200 1
4 AxxonGroup 184 1
5 EtonParkCapitalManagement 60 1
Source:mergermarket
Activity table of private equity firms on Latin American buyouts
Monthly M&A report – 31
Trendgraphs
Latin American M&A quarterly trends
value volume
Movingaveragetrendline
0
10,000
20,000
30,000
40,000
50,000
60,000
Q3 2008*
Q2 2008
Q1 2008
Q42007
Q32007
Q22007
Q12007
Q42006
Q32006
Q22006
Q12006
Q4 2005
Q32005
Q2 2005
Q12005
Q42004
Q3 2004
Q22004
Q1 2004
Q4 2003
Q3 2003
Q22003
Q12003
valu
e $m
0
30
60
90
120
150
Q3 2008*
Q2 2008
Q1 2008
Q4 2007
Q3 2007
Q2 2007
Q1 2007
Q4 2006
Q3 2006
Q2 2006
Q1 2006
Q4 2005
Q3 2005
Q2 2005
Q1 2005
Q4 2004
Q3 2004
Q2 2004
Q1 2004
Q4 2003
Q3 2003
Q2 2003
Q1 2003
num
ber
of d
eals
Latin American M&A quarterly private equity trends
value volume
0
500
1000
1500
2000
2500
Q3 2008*
Q2 2008
Q1 2008
Q4 2007
Q3 2007
Q2 2007
Q1 2007
Q4 2006
Q3 2006
Q2 2006
Q1 2006
Q4 2005
Q3 2005
Q2 2005
Q1 2005
Q4 2004
Q3 2004
Q22004
Q1 2004
Q42003
Q32003
Q2 2003
Q1 2003
valu
e $m
CEE and CIS buyouts
CEE and CIS exits
0
2
4
6
8
10
Q3 2008*
Q2 2008
Q1 2008
Q4 2007
Q3 2007
Q2 2007
Q1 2007
Q4 2006
Q3 2006
Q2 2006
Q1 2006
Q4 2005
Q3 2005
Q2 2005
Q1 2005
Q4 2004
Q3 2004
Q2 2004
Q1 2004
Q4 2003
Q32003
Q22003
Q1 2003
num
ber
of d
eals
CEE and CIS buyouts
CEE and CIS exits
Latin America
Monthly M&A report – 32
Trendgraphs
Latin American M&A annual trends
value volume
0
20
40
60
80
100
120
2008 YTD20072006200520042003
valu
e $b
n
All CEE and CIS M&A
CEE and CIS buyouts
CEE and CIS exits
0
100
200
300
400
500
600
2008 YTD20082006200520042003
num
ber
of d
eals
All CEE and CIS M&A
CEE and CIS buyouts
CEE and CIS exits
Latin American M&A sector breakdown YTD 2008
value volume
Industrials & Chemicals
Consumer
Energy, Mining & Utilities
Financial services
Business services
TMT
Construction
Agriculture
Pharma, Medical & Biotech
Transport
Leisure
29.2%
17.9%
0.1%3.3%
0.5% 10.6%
7.1%
3.2%
26.2%
0.4%1.4%
13.5%
17.4%
5.2%
11.7%
3.5%
3.5%
3% 0.9%3%
19.1%
19.1%
Industrials & Chemicals
Consumer
Energy, Mining & Utilities
Financial services
Business services
TMT
Construction
Agriculture
Pharma, Medical & Biotech
Transport
Leisure
Latin America
Monthly M&A report – 33
Mid-marketdeals
Latin America
Latin American M&A quarterly mid-market trend
value volume
0
1,000
2,000
3,000
4,000
5,000
6,000
Q3 2008*
Q2 2008
Q1 2008
Q4 2007
Q3 2007
Q2 2007
Q1 2007
Q4 2006
Q3 2006
Q2 2006
Q1 2006
Q4 2005
Q3 2005
Q2 2005
Q1 2005
Q4 2004
Q3 2004
Q2 2004
Q1 2004
Q4 2003
Q3 2003
Q2 2003
Q12003
valu
e $b
n
0
10
20
30
40
50
60
70
80
Q3 2008*
Q2 2008
Q1 2008
Q4 2007
Q3 2007
Q2 2007
Q1 2007
Q42006
Q3 2006
Q2 2006
Q12006
Q42005
Q3 2005
Q2 2005
Q1 2005
Q4 2004
Q32004
Q22004
Q12004
Q42003
Q32003
Q22003
Q1 2003
num
ber
of d
eals
Movingaveragetrendline
Monthly M&A report – 34
Mid-marketdeals
Top 10 Latin American announced mid market deals for YTD 31 July 2008($10mto$250m)
Announced Status Target company Sector Target/seller financial adviser
Target/seller legal adviser
Bidder company Bidder financial adviser
Bidder legal adviser
Seller company Deal Value(€m)
7-Feb-08 C RodoviadasCataratas
Transportation PrimavEcorodovias SidecoAmericana SA
242
29-May-08 P UniversidadTecnologicadeMexico
BusinessServices
LaureateEducationInc 230
29-Apr-08 C SociedadproductoresdeLecheSA(42.6%stake)
Consumer Rothschild FonterraCo-operativeGroupLtd
FundacionIsabelAninat
202
13-May-08 C ScotiabankPeruSAA(20%stake)
FinancialServices
WeilGotshal&Manges
BankofNovaScotia IntesaSanpaoloSpA
200
28-Apr-08 C InstitutoHarmonHallDeMexicoSA(controllingstake)
BusinessServices
Galicia&Robles
NexxusCapitalSC 200
7-Apr-08 P AnadarkoVenezuelaCompany
Energy,Mining&Utilities
FulbrightandJaworski
PetroFalconCorporation AnadarkoPetroleumCorporation
200
11-Jul-08 P HidropowerEnergiaSA;andTupanEnergiaEletricaSA
Energy,Mining&Utilities
GamaParticipacoesLtda 195
11-Jun-08 P GuerraSA Industrials&Chemicals
ZulmarNevesAdvocacia
AxxonGroup;andDeutscheInvestitionsundEntwicklungsgesellschaftmbH
Neves,Soares&Battendieri;TozziniFreire TeixeiraESilvaAdvogado
184
14-Apr-08 P LaticiniosMorrinhosIndustriaeComercio
Consumer GPInvestmentsLimited 182
8-Feb-08 P Accor(50%stake)
BusinessServices
CompassGroupplc TozziniFreire TeixeiraESilvaAdvogado
AccorSA 172
C=Completed;P=Pending;L=Lapsed Source:mergermarket
Latin America
Monthly M&A report – 35
Mid-marketleaguetables
YTD 31- Jul-2008
House Value ($m)
Deal count
Value:
1 Rothschild 432 2
2 UBS 360 3
3 Citigroup 249 2
4 ABNAMRO 192 2
5 CreditSuisseGroup 172 1
6 GMPSecurities 168 1
7 SingularPartners 167 2
8 M&AInternational 165 2
9 Pareto 154 1
10 CreditSuisse 148 1
Volume:
1 UBS 360 3
2 Rothschild 432 2
3 Citigroup 249 2
4 ABNAMRO 192 2
5 SingularPartners 167 2
6 M&AInternational 165 2
7 PricewaterhouseCoopersCorpFin 32 2
8 CreditSuisseGroup 172 1
9 GMPSecurities 168 1
10 Pareto 154 1
Source:mergermarket
Thefinancialadviserleaguetablesbyvalueandvolumehavebeenrunfrom01January2008to31July2008andexcludelapsedandwithdrawndeals.Thetablescoverallsectorsandarebasedonthegeographyofeitherthetarget,bidderorsellerbeingLatinAmerica
Top 10 mid-market financial advisers – Latin America($10mto$250m)
YTD 31- Jul-2008
House Value ($m)
Deal count
Value:
1 TozziniFreireTeixeiraESilvaAdvogado 388 3
2= FulbrightandJaworski 200 1
2= Galicia&Robles 200 1
2= WeilGotshal&Manges 200 1
5= Neves,Soares&Battendieri 184 1
5= ZulmarNevesAdvocacia 184 1
7 MayerBrown 168 1
8 SchulteRoth&Zabel 147 1
9 UriaMenendez 142 2
10 Linklaters 114 2
Volume:
1 TozziniFreireTeixeiraESilvaAdvogado 388 3
2 UriaMenendez 142 2
3 Linklaters 114 2
4 PinheiroNetoAdvogados 105 2
5 EstudioEchecoparGarcia 96 2
6 Baker&McKenzie 61 2
7= FulbrightandJaworski 200 1
7= Galicia&Robles 200 1
7= WeilGotshal&Manges 200 1
10 Neves,Soares&Battendieri 184 1
Source:mergermarket
Thelegaladviserleaguetablesbyvalueandvolumehavebeenrunfrom01January2008to31July2008andincludelapsedandwithdrawndeals.Thetablescoverallsectorsandarebasedonthegeographyofeitherthetarget,bidderorsellerbeingLatinAmerica
Top 10 mid-market legal advisers – Latin America($10mto$250m)
Latin America
Monthly M&A report – 36
Asia-Pacific
Top 15 Asia-Pacific announced deals for YTD 31 July 2008Announced Status Target company Sector Bidder company Seller company Exit multiples (x) Bid premia
1-day beforeDeal value
($m)Revenue EBITDA P/E
2-Jun-08 P China Netcom Group Corporation (Hong Kong) Limited
TMT China Unicom Ltd 2.6 4.9 15.3 31.2% 29,589
13-May-08 P St George Bank Ltd Financial Services
Westpac Banking Corporation
n/a n/a 16.4 29.6% 17,936
24-Jun-08 P Origin Energy Limited
Energy, Mining & Utilities
BG Group Plc 3.0 15.2 40.5 -0.1% 15,756
11-Jul-08 P GE Consumer Finance Co Ltd
Financial Services
Shinsei Bank Limited
General Electric Company
n/a n/a - 5,452
02-Jun-08 P Wing Lung Bank Limited
Financial Services
China Merchants Bank Co Ltd
n/a n/a 26.5 6.2% 4,655
11-Jun-08 P Ranbaxy Laboratories Limited (60.62% stake)
Pharma, Medical & Biotech
Daiichi Sankyo Company Limited
6.3 30.4 59.8 31.4% 4,625
03-Mar-08 C The Korea Express Co Ltd (60% stake)
Transportation Asiana Airlines Inc; Daewoo Engineering and Construction Company Limited; and Kumho Asiana Group
6.0 111.0 37.0 70.1% 4,357
08-Jun-08 P Indosat Tbk PT (75.49% stake)
TMT Qatar Telecom QSC
Singapore Technologies Telemedia
3.0 5.9 19.5 30.0% 4,192
03-Mar-08 C Zinifex Ltd Energy, Mining & Utilities
Oxiana Limited 2.3 3.3 8.3 13.9% 3,817
14-Mar-08 C Tuas Power Limited Energy, Mining & Utilities
SinoSing Power Pte Ltd
Temasek Holdings Pte Ltd
2.1 13.9 26.2 - 3,103
26-Mar-08 P Bank Internasional Indonesia Tbk
Financial Services
Malayan Banking Berhad
Sorak Financial Holdings Pte Ltd
n/a n/a 60.4 22.5% 2,710
07-May-08 P Beijing Pengrun Property Co Ltd
Financial Services
Beijing Centergate Technologies (Holding) Co Ltd
Beijing Pengkang Technology Co Ltd; and Beijing Pengtai Investment Co Ltd
- 2,576
11-Mar-08 C Dyno Nobel Limited (87% stake)
Energy, Mining & Utilities
Incitec Pivot Ltd 2.0 20.5 61.8 19.4% 2,468
29-Feb-08 C Centurion Bank of Punjab
Financial Services
HDFC Bank Ltd n/a n/a 75.6 3.7% 2,378
31-Jan-08 C Mizuho Securities Ltd (4.35% stake)
Financial Services
Mizuho Corporate Bank Ltd
n/a n/a - 2,350
C = Completed; P = Pending; L = Lapsed Source: mergermarket
Asia-Pacific
Monthly M&A report – 37
Asia-Pacific
Top 5 Asia-Pacific announced deals of the month (July 2008)Announced Status Target company Sector Bidder
companySeller company Exit multiples (x) Bid premia
1-day before
Deal value($m)Revenue EBITDA P/E
11-Jul-08 P GE Consumer Finance Co Ltd
Financial Services
Shinsei Bank Limited
General Electric Company
n/a n/a - 5,452
16-Jul-08 P Anhui Xinda Real Estate Co Ltd; Hainan Yuanshicun Development; Hefei Runxin Real Estate Development Co Ltd; Jiaxing Cinda Jianshe Real Estate Development Co Ltd; Jilin Xinda Jindu Property; Ningbo Xinda Zhongjian Property; Qingdao Xinda Rongchang Property Group Co Ltd; Shanghai Liren Investment Management Co Ltd; Shanghai Xinda Yintai Property Co Ltd; Taizhou Cinda Property Co Ltd; and Xinjiang Cinda Yintong Property Co Ltd
Financial Services
Beijing Tianqiao Beida Jade Bird Science & Technology Co Ltd
Cinda Investment Co Ltd; Hainan Jianxin Investment Management Co Ltd; Jiangxi Ganyue Expressway Co Ltd; Shenzhen Jianxin Investment Development Co Ltd; and Zhengyuan Investment Co Ltd
n/a n/a - 925
24-Jul-08 P Oki Semiconductor Company Limited (95% stake)
TMT Rohm Co Ltd Oki Electric Industry Co Ltd
- 795
23-Jul-08 P NIWS Co Ltd (dealer business); and NIWS Co HQ Ltd (dealer business)
TMT LAC Holdings Inc
NIWS Co Ltd; and NIWS Co HQ Ltd
- 784
14-Jul-08 C CJ Investment & Securities Company (75% stake)
Financial Services
Hyundai Heavy Industries Co Ltd
CJ Corporation - 700
C = Completed; P = Pending; L = Lapsed Source: mergermarket
Top deals
Monthly M&A report – 38
Asia-Pacific
value
YTD 31-Jul-2008
House Value ($m)
Deal count
1 JPMorgan 247,863 25
2 Citigroup 245,847 20
3 Morgan Stanley 235,442 24
4 UBS 232,356 31
5 Rothschild 222,439 13
6 Deutsche Bank 220,403 21
7 Goldman Sachs 220,040 22
8 Macquarie Group 218,142 29
9 Credit Suisse 213,581 20
10 Lazard 213,391 9
11 Merrill Lynch 208,666 26
12 Gresham Advisory Partners 207,617 8
13 ABN AMRO 196,819 12
14 BNP Paribas 196,622 14
15 HSBC Bank 193,095 5
Source: mergermarket
volume
The financial adviser league tables by value and volume have been run from 01 January 2008 to 31 July 2008 and exclude lapsed and withdrawn deals. The tables cover all sectors andare based on the geography of either the target, bidder or seller being Asia-Pacifc excluding Japan.
YTD 31-Jul-2008
House Value ($m)
Deal count
1 UBS 232,356 31
2 Macquarie Group 218,142 29
3 KPMG Corp Fin 2,909 29
4 PricewaterhouseCoopers Corp Fin 8,986 27
5 Merrill Lynch 208,666 26
6 JPMorgan 247,863 25
7 Morgan Stanley 235,442 24
8 CIMB Group 6,107 23
9 Goldman Sachs 220,040 22
10 Deutsche Bank 220,403 21
11 Ernst & Young 4,169 21
12 Citigroup 245,847 20
13 Credit Suisse 213,581 20
14 Lehman Brothers 60,984 16
15 Deloitte 2,725 15
Source: mergermarket
Top 15 financial advisers – Asia-Pacific excl Japan
League tables
value
YTD 31-Jul-2008
House Value ($m)
Deal count
1 Linklaters 252,496 21
2 Sullivan & Cromwell 238,241 10
3 Skadden Arps Slate Meagher & Flom 232,450 13
4 Allen & Overy 223,869 12
5 Slaughter and May 220,412 4
6 Allens Arthur Robinson 218,445 24
7 Freehills 212,515 34
8 Lovells 197,709 7
9 Herbert Smith/Gleiss Lutz/Stibbe 196,639 10
10 Blake Dawson 194,159 26
11 Davies Ward Phillips & Vineberg 191,888 5
12 McCarthy Tetrault 190,573 2
13 Johnson Winter & Slattery 190,524 4
14 Cravath Swaine & Moore 190,344 1
15 Freshfields Bruckhaus Deringer 46,034 17
Source: mergermarket
volume
YTD 31-Jul-2008
House Value ($m)
Deal count
1 Mallesons Stephen Jaques 38,395 43
2 Freehills 212,515 34
3 Baker & McKenzie 4,385 31
4 Blake Dawson 194,159 26
5 Jones Day 8,051 26
6 DLA Piper 6,932 26
7 Allens Arthur Robinson 218,445 24
8 Allen & Gledhill 10,223 23
9 Deacons 7,909 23
10 Minter Ellison 2,862 23
11 Clifford Chance 26,602 22
12 Linklaters 252,496 21
13 White & Case 15,992 21
14 WongPartnership 5,657 18
15 Freshfields Bruckhaus Deringer 46,034 17
Source: mergermarket
Top 15 legal advisers – Asia-Pacific excl Japan
The legal adviser league tables by value and volume have been run from 01 January 2008 to 31 July 2008 and include lapsed and withdrawn deals. The tables cover all sectors andare based on the geography of either the target, bidder or seller being Asia-Pacifc excluding Japan.
Monthly M&A report – 39
Asia-Pacific
League tables
value
YTD 31-Jul-2008
House Value ($m)
Deal count
1 Alnair Private Equity Group 1,457 1
2 CVC Capital Partners 1,213 2
3= JAFCO 1,212 1
3= Next Capital Partners 1,212 1
5 Morgan Stanley Private Equity Asia 933 2
6 Shinhan Financial Group 833 1
7 H&Q Asia Pacific 796 2
8 The Carlyle Group 666 4
9 Providence Equity Partners 640 1
10 Kohlberg Kravis Roberts 611 2
Source: mergermarket
volume
The Private Equity buyout activity tables by value and volume are based on private equity firms advising the bidder on buyout deals where the dominant geography of the target company is Asia-Pacific. The tables by value and volume have been run from 01 January 2008 to 31 July 2008 and exclude lapsed and withdrawn deals
YTD 31-Jul-2008
House Value ($m)
Deal count
1 The Carlyle Group 666 4
2 SBI Holdings 76 3
3 CVC Capital Partners 1,213 2
4 Ashmore Group 1,100 2
5 Morgan Stanley Private Equity Asia 933 2
6 H&Q Asia Pacific 796 2
7 Kohlberg Kravis Roberts 611 2
8 Primus Pacific Partners 452 2
9 Ironbridge Capital 448 2
10 Citigroup Venture Capital Equity Partners
421 2
Source: mergermarket
Activity Table of private equity firms on Asia-Pacific buyouts
value
YTD 31-Jul-2008
House Value ($m)
Deal count
1 Temasek Holdings 7,886 3
2 Affinity Equity Partners 2,853 2
3 CCMP Capital Asia 780 1
4 JAFCO 484 2
5 CHAMP Private Equity 416 1
6 CVC Capital Partners 392 1
7 SAIF Partners 306 1
8 Nikko Principal Investments Japan 195 1
9 Kaleido Holdings 108 1
10 Phoenix Capital 103 3
Source: mergermarket
volume
The Private Equity exit activity tables by value and volume are based on private equity firms advising the vendor on exit deals where the dominant geography of the target company is Asia-Pacific. The tables by value and volume have been run from 01 January 2008 to 31 July 2008 and exclude lapsed and withdrawn deals
YTD 31-Jul-2008
House Value ($m)
Deal count
1 Temasek Holdings 7,886 3
2 Phoenix Capital 103 3
3 Affinity Equity Partners 2,853 2
4 JAFCO 484 2
5 CCMP Capital Asia 780 1
6 CHAMP Private Equity 416 1
7 CVC Capital Partners 392 1
8 SAIF Partners 306 1
9 Nikko Principal Investments Japan 195 1
10 Kaleido Holdings 108 1
Source: mergermarket
Activity table of private equity firms on Asia-Pacific exits
Monthly M&A report – 40
Asia-Pacific
Trend graphs
Asia-Pacific M&A quarterly trend
value volume
Moving average trend line
0
50,000
100,000
150,000
200,000
Q32008*
Q22008
Q12008
Q42007
Q32007
Q22007
Q12007
Q42006
Q32006
Q2 2006
Q1 2006
Q42005
Q32005
Q2 2005
Q12005
Q42004
Q32004
Q22004
Q1 2004
Q4 2003
Q32003
Q22003
Q12003
valu
e ($
m)
0
100
200
300
400
500
600
700
800
Q32008*
Q22008
Q12008
Q42007
Q32007
Q22007
Q12007
Q4 2006
Q32006
Q22006
Q12006
Q42005
Q32005
Q22005
Q12005
Q42004
Q32004
Q22004
Q12004
Q42003
Q32003
Q22003
Q12003
num
ber
of d
eals
Asia-Pacific M&A quarterly private equity trend
value volume
0
5,000
10,000
15,000
20,000
25,000
Q32008*
Q22008
Q12008
Q42007
Q3 2007
Q2 2007
Q1 2007
Q42006
Q32006
Q2 2006
Q12006
Q4 2005
Q3 2005
Q22005
Q12005
Q42004
Q3 2004
Q22004
Q12004
Q42003
Q3 2003
Q2 2003
Q12003
Valu
e ($
m)
Asia-Pacificbuyouts
Asia-Pacificexits
0
10
20
30
40
50
60
70
80
90
Q32008*
Q22008
Q12008
Q42007
Q32007
Q22007
Q12007
Q42006
Q32006
Q22006
Q12006
Q42005
Q3 2005
Q22005
Q12005
Q42004
Q32004
Q22004
Q12004
Q4 2003
Q 2003
Q22003
Q1 2003
num
ber
of d
eals
Asia-Pacificbuyouts
Asia-Pacificexits
Monthly M&A report – 41
Asia-Pacific
Trend graphs
Asia-Pacific M&A annual trends
value volume
0
50
100
150
200
250
300
350
400
450
2008YTD20072006200520042003
valu
e ($
bn)
All Asia-Pacific M&A
Asia-Pacific buyouts
Asia-Pacific exits
0
500
1000
1500
2000
2500
3000
2008YTD20072006200520042003
num
ber
of d
eals
All Asia-Pacific M&A
Asia-Pacific buyouts
Asia-Pacific exits
Asia-Pacific M&A Sector Breakdown YTD 2008
value volume
Industrials and Chemicals
Financial services
Energy, Mining & Utilities
Consumer
TMT
Business services
Pharma, Medical & Biotech
Construction
Leisure
Transport
Agriculture
Defence
10.5%
21.4%
6.3%
29.3%
2.6%
1.9%
3.8%
0.3%0.4%
3.2%
18.5%
2%
Industrials and Chemicals
Financial services
Energy, Mining & Utilities
Consumer
TMT
Business services
Pharma, Medical & Biotech
Construction
Leisure
Transport
Agriculture
Defence
20.8%
13.4%
13.9%
12.8%
11.3%
5.3%
4.7%
9.8%
3.6%
0.1%3.3%
1%
Monthly M&A report – 42
Asia-Pacific
Trend graphs
Asia-Pacific M&A Geographic Breakdown YTD 2008
value volume
China
Japan
Australia
India
South Korea
Other
Hong Kong
Singapore
Malaysia
Taiwan
New Zealand
Thailand
16.9%
13.7%
0.3%
0.5%
15.3%
5.1%
24.2%6.3%
6.2%
8.1%
1.3%2%
Asia-Pacific M&A deal size breakdown
value volume
0
50
100
150
200
250
valu
e ($
bn)
> $501m
$251m - $500m
$101m - $250m
$15m - $100m
$5m - $14.9m
H1 2003
H2 2003
H1 2004
H2 2004
H12005
H2 2005
H22007
H1 2007
H2 2006
H1 2006
H12008
> $501m
$251m - $500m
$101m - $250m
$15m - $100m
$5m - $14.9m
Value not disclosed
0
300
600
900
1200
1500
num
ber
of d
eals
H1 2003
H22003
H1 2004
H2 2004
H1 2005
H2 2005
H22007
H1 2007
H2 2006
H1 2006
H12008
18.2%
24.5%
16.6%
8.5%
7%
6.3%
5%
4.6%
3.4%
1.4%2.6%
2%
China
Japan
Australia
India
South Korea
Other
Hong Kong
Singapore
Malaysia
Taiwan
New Zealand
Thailand
Monthly M&A report – 43
Asia-Pacific
Mid-market deals
Top 10 Asia-Pacific announced mid-market deals for YTD 31 July 2008 ($10m to $250m)Announced Status Target company Sector Bidder company Seller company Exit multiples (x) Bid premia
1-day beforeDeal value
($m)Revenue EBITDA P/E
6-Feb-08 C Bharti Infratel Limited (2% stake)
TMT Kohlberg Kravis Roberts & Co
Bharti Airtel Limited - 250
23-Jan-08 C First Philippine Union Fenosa Inc (40% stake)
Energy, Mining & Utilities
First Philippine Holdings Corporation
Union Fenosa SA - 250
14-Feb-08 C Sophia Power Company (23.40% stake)
Energy, Mining & Utilities
FIM Limited Indiabulls Real Estate Ltd
- 249
16-Jun-08 P Anzon Energy Ltd Energy, Mining & Utilities
Roc Oil Company Limited
2.7 4.6 4.8 36.6% 246
25-Apr-08 C JapanTelecom Invoice Co Ltd (85.1% stake)
Business Services
Softbank Telecom Co Ltd
Invoice Inc 0.9 11.3 - 245
17-Mar-08 C The greenfield coal mine
Energy, Mining & Utilities
Reliance Power Ltd
- 245
18-Jun-08 P Riken Vitamin Co Ltd (29.99% stake)
Industrials & Chemicals
Kikkoman Corporation
SFCG Co Ltd 1.0 10.6 36.3 14.4% 241
27-Jun-08 P Valin ArcelorMittal Automotive Steel Ltd (33% stake)
Industrials & Chemicals
ArcelorMittal; Hunan Valin Iron & Steel Group Co Ltd; and Hunan Valin Steel Tube & Wire Co Ltd
- 240
17-Mar-08 C ConnectEast Group (14.79% stake)
Transportortation John Holland Infrastructure Nominees Pty Ltd; and Thiess Infrastructure Nominees Pty Ltd
n/a (loss) (loss) -7.3% 240
10-Jun-08 P Vikram Ispat Industrials & Chemicals
Welspun Power and Steel Limited
Grasim Industries Ltd 1.0 - 239
C = Completed; P = Pending; L = Lapsed Source: mergermarket
Monthly M&A report – 44
Asia-Pacific
Mid-market deals
Asia-Pacific M&A quarterly mid-market trend
value volume
0
5,000
10,000
15,000
20,000
25,000
30,000
Q3 2008*
Q2 2008
Q1 2008
Q42007
Q3 2007
Q2 2007
Q1 2007
Q4 2006
Q3 2006
Q2 2006
Q1 2006
Q4 2005
Q3 2005
Q22005
Q12005
Q42004
Q3 2004
Q2 2004
Q1 2004
Q4 2003
Q3 2003
Q2 2003
Q12003
valu
e ($
m)
0
100
200
300
400
500
Q3 2008*
Q2 2008
Q1 2008
Q4 2007
Q3 2007
Q2 2007
Q1 2007
Q4 2006
Q3 2006
Q22006
Q12006
Q4 2005
Q3 2005
Q22005
Q12005
Q42004
Q3 2004
Q2 2004
Q12004
Q42003
Q32003
Q22003
Q12003
num
ber
of d
eals
Moving average trend line
Monthly M&A report – 45
Asia-Pacific
Mid-market league tables
YTD 31-Jul-2008
House Value ($m)
Deal count
Value:
1 Macquarie Group 1,863 17
2 CIMB Group 1,514 15
3 KPMG Corp Fin 1,432 19
4 Merrill Lynch 1,415 9
5 JPMorgan 1,248 8
6 Deutsche Bank 1,043 9
7 PricewaterhouseCoopers Corp Fin 1,006 10
8 UBS 932 7
9 Deloitte 931 9
10 Morgan Stanley 801 6
Volume:
1 KPMG Corp Fin 1,432 19
2 Macquarie Group 1,863 17
3 CIMB Group 1,514 15
4 PricewaterhouseCoopers Corp Fin 1,006 10
5 Ernst & Young 483 10
6 Merrill Lynch 1,415 9
7 Deutsche Bank 1,043 9
8 Deloitte 931 9
9 JPMorgan 1,248 8
10 M&A International 393 8
Source: mergermarket
The Financial adviser league tables by value and volume have been run from 01 January2008 to 31 July 2008 and exclude lapsed and withdrawn deals. The tables cover allsectors and are based on the geography of either the target, bidder or seller beingAsia-Pacific (excluding Japan).
Top 10 mid-market financial advisers – Asia-Pacific excl Japan ($10m to $250m)
YTD 31-Jul-2008
House Value ($m)
Deal count
Value:
1 Mallesons Stephen Jaques 1,975 25
2 Allens Arthur Robinson 1,464 11
3 Baker & McKenzie 1,301 18
4 Jones Day 1,163 12
5 Freehills 1,099 14
6 Allen & Gledhill 1,027 11
7 Minter Ellison 1,018 13
8 King & Wood 856 9
9 Corrs Chambers Westgarth 839 7
10 Rajah & Tann 817 8
Volume:
1 Mallesons Stephen Jaques 1,975 25
2 Baker & McKenzie 1,301 18
3 Freehills 1,099 14
4 Minter Ellison 1,018 13
5 DLA Piper 664 13
6 Jones Day 1,163 12
7 Allens Arthur Robinson 1,464 11
8 Allen & Gledhill 1,027 11
9 Deacons 630 11
10 Kim & Chang 594 10
Source: mergermarket
The Legal adviser league tables by value and volume have been run from 01 January2008 to 31 July 2008 and include lapsed and withdrawn deals. The tables cover allsectors and are based on the geography of either the target, bidder or seller beingAsia-Pacific (excluding Japan).
Top 10 mid-market legal advisers – Asia-Pacific excl Japan($10m to $250m)
Monthly M&A report – 46
Greater China
New anti-monopoly law brings new implications to Chinese M&A• Ithasbeen14yearsinthemaking:China’snewAnti-
MonopolyLawfinallycameintoeffecton1August,2008.
Whilethenewlegislationislargelyseenasastepfor
Chinesecommercetomovetowardsamarketeconomy,
companiesbothdomesticandabroadwillnowhaveto
consultwidelyonwhatimplicationsthenewregimewill
haveonmergersandacquisitions.
• ThenewAnti-MonopolyLaw,modelledaftersimilar
lawsintheEUandtheUS,willlargelyleveltheplaying
fieldsbetweenChinaandotherworldeconomiesin
areassuchasM&Aactivity,pricefixingandday-to-day
businessagreements.Themostsignificantchangefrom
thepastregimeisthatwhiletheprevioussetofmerger
controllawsonlyappliedtoforeigncompaniesacquiring
astakeindomesticenterprises,thenewlawwillequally
scrutinisebothdomesticandforeigncompaniesmaking
acquisitions.
• The“RegulationonNotificationThresholdsof
ConcentrationofUndertakings”issuedbytheState
Councilon3Augustshedsnewlightonhowthenew
lawwillbeimplementedaswell.Theoldlawmandates
notificationofacross-borderacquisitionofadomestic
companybyaforeignenterpriseiftheChinarevenue
ofoneofthepartiesexceedsCNY1.5bn($219m),or
othervariousconditionsconcerningpreviousacquisition
activitiesormarketsharesaremet–whichcanbehard
toquantifyobjectively.Thenewlaw,ontheotherhand,
hasasimplerandmoreobjectivethreshold.Regardlessof
whetherthedealisdomesticorcross-border,notification
isrequirediftheChinarevenueforeachofatleasttwo
partiesexceedsCNY400m($58m),andthetotalglobal
revenuesforallpartiesexceedCNY10bn($1.46bn)or
thetotalChinarevenuesforallpartiesexceedCNY2bn
($292m).However,specialthresholdsforthefinancial
servicesindustryhaveyettobeannounced.
• Thethreeagenciespreviouslyinvolvedinanti-monopoly
lawenforcement–theMinistryofCommercefor
mergers,theNationalDevelopmentandReform
Commissionforpricing,andtheStateAdministration
forIndustryandCommerceforunfaircompetition–will
allnowreporttothenewly-createdAnti-Monopoly
Commission,whichisoverseendirectlybytheState
Councilandgivensubstantialdiscretionandinterpretive
authorityovertransactionsmeetingthenotification
thresholds.ThenewlawwillgivetheBeijinggovernment
thesamepowertoconductdiscretionaryinvestigations
ornationalsecurityreviewsoverM&AdealsinChinaas
WashingtonoverdealsconcerningtheUS,orBrussels
overdealsintheEU.
• Finesofupto10%ofthesalesrevenueswillbelevied
oncompaniesmakinganti-competitiveagreementsor
abusingadominantpositioninthemarket.Finesofup
toCNY500k($73k)willbeleviedoncompaniesfailing
tofollowmergerrulesorindustryassociationsbehaving
likecartels.Whilethesepenaltiesseemheftyby
Chinesestandards,theyareonparwithsimilarregimes
worldwide.
• However,severalkeyareasofimplementationofthenew
lawremainunclear.Therevenueclauseoftheregulation
providesnoindicationforinclusionoftherevenuesofa
principal’saffiliateswithinoroutsideChina.Itisunclear
howthenewlawwillapplytospecialpurposevehicles
incorporatedforaspecificacquisition.Itisalsounclear
whetherandhowtheBeijinggovernmentwillinterpret
“Chinarevenues”foroffshoretransactions.Major
overseastransactions,suchastheBHPBilliton–RioTinto
deal,mayverywellcomeunderChinesescrutinyunder
thenewlaw,muchliketransactionsbetweennon-EU
membersaresometimescaughtundertheEUMerger
ControlRegulation.
• ThoughthenewAnti-MonopolyLawandRegulation
marksthebeginningofanewerainChinesemerger
controlregimebyincludingdomestictransactionsand
moreobjectiveconditionsfornotification,theM&A
communityworldwidewillundoubtedlybemonitoring
theimplementationandenforcementofthenewlaw
veryclosely,focusingonthediscretionarypowerofthe
Anti-MonopolyCommissionanditsinterpretationofthe
ambiguityinthenewlawaswell.
1AlldollarvaluesareinUScurrencyunlessstatedotherwise
Monthly M&A report – 47
Greater China
China Eastern Airlines and Shanghai Airlines rumored to merge• Afterfailingtogainshareholdersapprovalfora
HK$7.16bn($920m)stakesaletoSingaporeInternational
Airlines(SIA)andTemasekHoldingsinJanuary2008,
ChinaEasternAirlines(CEA)isnowrumoredtobeintalks
withShanghaiAirlinesaboutapotentialmerger.
• Bothairlineshavepubliclydeniedreportsofthetalks,
however,theShanghaimunicipalgovernment,thestate
ownerofbothShanghaiAirlinesandCEA,hasbeen
reportedtobekeenonmergingthetwocompanies.
• CEA’splantointroduceSIAasastrategicinvestorwas
spoiledbyChinaNationalAviationCorp(CNAC),the
state-ownedparentofBeijingbasedrivalAirChina,
whichmadeaninformalbid,butdidnotfollowthrough.
ShanghaiAirlines’plantointroduceEuropeanairlinesas
strategicinvestorsviaaminoritystakesalelastyearhad
notcometofruitioneitherduetotheoverheatedequity
marketatthetime.
• AsSIAwillbeunlikelytoraiseitsoriginalbidofHK$3.8
($0.49)pershareforCEAandwiththeCEA-SIA
agreementduetoexpire,theShanghaigovernment,
eagertocreateaShanghaibasedaviationgiantto
competewithAirChinaandChinaSouthernAirlines,
decidedthatShanghaiAirlinesshouldnowmergewith
CEA,whosedebtratiohasrisento95%.
Greater China
Monthly M&A report – 48
Greater China
Dealofthemonth
Target: AnhuiXindaRealEstateCoLtd;HainanYuanshicunDevelopment;HefeiRunxinRealEstateDevelopmentCoLtd;JiaxingCindaJiansheRealEstateDevelopmentCoLtd;JilinXindaJinduProperty;NingboXindaZhongjianProperty;QingdaoXindaRongchangPropertyGroupCoLtd;ShanghaiLirenInvestmentManagementCoLtd;ShanghaiXindaYintaiPropertyCoLtd;TaizhouCindaPropertyCoLtd;andXinjiangCindaYintongPropertyCo.Ltd.
Announced: 16July2008
Bidder: BeijingTianqiaoBeidaJadeBirdScience&TechnologyCoLtd Deal value: CNY6,300m
Sellers: CindaInvestmentCoLtd;HainanJianxinInvestmentManagementCoLtd;JiangxiGanyueExpresswayCoLtd;ShenzhenJianxinInvestmentDevelopmentCoLtd;andZhengyuanInvestmentCoLtd
Deal nature: Recommended
• BeijingTianqiaoBeidaJadeBirdScience&Technology
CoLtd.(JadeBird),thelistedChinabasedprovision
informationtechnologyservicesprovider,hasagreedto
acquireShanghaiLirenInvestmentManagementCo.Ltd.,
theChinabasedinvestmentconsultantcompany,and10
Chinabasedrealestateservicesproviders,fromCinda
InvestmentCo.Ltd.,ZhengyuanInvestmentCo.Ltd.,
ShenzhenJianxinInvestmentDevelopmentCo.Ltd.and
HainanJianxinInvestmentManagementCo.Ltd.,thefour
Chinabasedinvestmentcompanies,andJiangxiGanyue
ExpresswayCo.Ltd.,thelistedChinabasedexpressway
constructioncompany,foraconsiderationofCNY6.3bn
($924.84m).
• The10realestateservicesprovidersincludeShanghai
XindaYintaiPropertyCo.Ltd.,AnhuiXindaRealEstate
Co.Ltd.,JilinXindaJinduPropertyCo.Ltd.,Ningbo
XindaZhongjianPropertyCo.Ltd.,HainanYuanshicun
DevelopmentCo.Ltd.,QingdaoXindaRongchang
PropertyGroupCo.Ltd.,XinjiangCindaYintongProperty
Co.Ltd.,JiaxingCindaJiansheRealEstateDevelopment
Co.Ltd.,HefeiRunxinRealEstateDevelopmentCo.Ltd.
andTaizhouCindaPropertyCo.Ltd.
• JadeBirdwillissueatotalof1.05bnsharesvaluedat
apriceofCNY6($0.88)pershare,worthCNY6.3bn,
representinga67.88%stake.Itincludes791.95m
sharestoCindaInvestment,27.47msharestoShenzhen
Jianxin,30.62msharestoHainanJianxin,100msharesto
ZhengyuanInvestmentand100.24msharestoGanyue
Expressway.
• JadeBirdwillacquire87.47%and12.53%stakesin
ShanghaiXindafromCindaInvestmentandZhengyuan
Investment,72.22%and27.78%stakesinAnhui
XindafromCindaInvestmentandGanyueExpressway,
51.17%and48.83%stakesinJilinXindafromCinda
InvestmentandGanyueExpressway,87.93%and
12.07%stakesinNingboXindafromCindaInvestment
andGanyueExpressway,64.45%and35.55%stakesin
HainanYuanshicunfromHainanJianxinandZhengyuan
Investment,67.51%and32.49%stakesinQingdao
XindafromCindaInvestmentandZhengyuanInvestment,
54.57%and45.43%stakesinXinjiangCindafromCinda
InvestmentandZhengyuanInvestment,76.42%and
23.58%stakesinJiaxingCindafromCindaInvestment
andZhengyuanInvestment,a100%stakeinShanghai
LirenandTaizhouCindabothfromCindaInvestmentand
a100%stakeinHefeiRunxinfromShenzhenJianxin.
Monthly M&A report – 49
Greater China
Dealofthemonth
• Priortothetransaction,CindaInvestmentholdsa12.07%
stakeinJadeBird.Uponcompletion,JiangxiGanyue
willownaminimum5%stakeinJadeBirdandCinda
Investmentwillownatotalof910mshares,representinga
58.82%stake.Threeofthecompanieshavegeneratednet
profitforthefirstfourmonthsperiodsin2008,including
ShanghaiXindawithCNY24.24m($3.56m),NingboXinda
eithCNY105.83m($15.54m)andJiaxingCindawithCNY
23.13m($3.4m).Theremainingeightcompaniesposted
netlossesforthefirstfourmonthsperiodsin2008,
comprisingAnhuiXindwithalossofCNY7.06m($1.04m),
QingdaoXindawithalossofCNY9.71m($1.43m),Xinjiang
CindawithalossofCNY22.98m($3.37m),TaizhouCinda
withalossofCNY1.3m($0.19m),JilinXindawithaloss
ofCNY0.78m($0.11m),HefeiRunxinwithalossofCNY
3.03m($0.44m),HainanYuanshicunwithalossofCNY
0.13m($0.02m)andShanghaiLirenwithalossofCNY
6.78m($1m).
• CindaInvestment’sshareholdershaverepelledthe
mandatoryofferforacquiringthestaketheydonotalready
owninJadeBird.TheacquisitionwillenableJadeBirdto
expanditsoperationsandstrengthenitspresenceinthe
realestatemarketslocally.
• ThetransactionissubjecttotheapprovalsbytheChinese
regulatoryauthoritiesandJadeBird’sshareholders.
Monthly M&A report – 50
Greater China
Dealofthemonth
Advisers
Target/Seller Bidder
Financial - Financial GFSecurities
Legal - Legal GrandfieldLawFirm
PR - PR -
Mergermarket/dealReporter Intelligence
01-Aug-08 BeijingTianqiaoBeidaJadeBird:EGMapprovestheproposalsforassetsandstakesaledealwithCindaInvestment
16-Jul-08 BeijingTianqiaoBeidaJadeBirdtoacquire11realestatesubsidiariesofCindaInvestment,others
Monthly M&A report – 51
Greater China
Top 15 Greater China announced deals for YTD 31 July 2008Announced Status Target company Sector Bidder company Seller company Exit multiples (x) Bid premia
1-day beforeDeal value
($m)Revenue EBITDA P/E
2-Jun-08 P ChinaNetcomGroupCorporation(HongKong)Limited
TMT ChinaUnicomLtd 2.6 4.9 15.3 31.2% 29,589
2-Jun-08 P WingLungBankLimited
FinancialServices
ChinaMerchantsBankCoLtd
n/a n/a 26.5 6.2% 4,655
7-May-08 P BeijingPengrunPropertyCoLtd
FinancialServices
BeijingCentergateTechnologies(Holding)CoLtd
BeijingPengkangTechnologyCoLtd;andBeijingPengtaiInvestmentCoLtd
n/a n/a - 2,576
20-Jun-08 P SanjiuMedical&PharmaceuticalCoLtd(71.35%stake)
Pharma,Medical&Biotech
NewSanjiuHoldingsCoLtd
SanjiuEnterpriseGroup;andShenzhenSanjiuPharmaceuticalCoLtd
5.6 56.8 89.6 - 1,947
27-May-08 P ChinaConstructionBankCorporation(2.57%stake)
FinancialServices
BankofAmericaCorporation
ChinaSAFEInvestmentsLimited
n/a n/a 7.5 - 1,860
18-Mar-08 P HuaXiaBankCoLtd(15.73%stake)
FinancialServices
DeutscheBankAG;ShougangGroup;andStateGridCorporationofChina
n/a n/a 30.4 1.2% 1,632
5-Jun-08 P ChinaJinMao(Group)CompanyLimited
FinancialServices
FranshionProperties(China)Limited
ConsortiumledbySinochemHongKong(Group)CompanyLimited
n/a n/a - 1,584
11-Jun-08 P CITICInternationalFinancialHoldingsLimited(30.25%stake)
FinancialServices
CITICGroup n/a n/a 20.2 16.8% 1,486
22-May-08 P ShanxiLiulinJinjiazhuangCoalCompanyLimited(65%stake);ShanxiLiulinXingwuCoalmineCompanyLimited(65%stake);andShanxiLiulinZhaiyadiCoalCompanyLimited(95%stake)
Energy,Mining&Utilities
FushanInternationalEnergyGroupLimited
FortuneDragonGroupLimited
- 1,350
22-Jun-08 P SAIC(autocomponentsbusiness)
Industrials&Chemicals
ShanghaiBashiIndustrial(Group)CoLtd
ShanghaiAutomotiveIndustryCorporation
- 1,282
4-May-08 P NingboCitongPropertyCoLtd;NingboCitySquareDevelopment&ManagementCoLtd;andNingboRealEstateCoLtd(74.84%stake)
FinancialServices
NingboFudaCompanyLimited
NingboUrbanConstructionInvestmentHoldingCoLtd
n/a n/a - 1,145
Topdeals
Monthly M&A report – 52
Greater China
Announced Status Target company Sector Bidder company Seller company Exit multiples (x) Bid premia1-day before
Deal value($m)Revenue EBITDA P/E
16-Jul-08 P AnhuiXindaRealEstateCoLtd;HainanYuanshicunDevelopment;HefeiRunxinRealEstateDevelopmentCoLtd;JiaxingCindaJiansheRealEstateDevelopmentCoLtd;JilinXindaJinduProperty;NingboXindaZhongjianProperty;QingdaoXindaRongchangPropertyGroupCoLtd;ShanghaiLirenInvestmentManagementCoLtd;ShanghaiXindaYintaiPropertyCoLtd;TaizhouCindaPropertyCoLtd;andXinjiangCindaYintongPropertyCoLtd
FinancialServices
BeijingTianqiaoBeidaJadeBirdScience&TechnologyCoLtd
CindaInvestmentCoLtd;HainanJianxinInvestmentManagementCoLtd;JiangxiGanyueExpresswayCoLtd;ShenzhenJianxinInvestmentDevelopmentCoLtd;andZhengyuanInvestmentCoLtd
n/a n/a - 925
16-Apr-08 P ZhengzhouCoalIndustryGroupCoLtd(6subsidiaries)
Energy,Mining&Utilities
ZhengzhouCoalIndustry&ElectricPowerCoLtd
ZhengzhouCoalIndustryGroupCoLtd
- 884
19-Mar-08 P DragonSteelCorporation(52.01%stake)
Industrials&Chemicals
ChinaSteelCorporation
30.8 - 824
6-May-08 C YingkouPort(sevenBayuquanberthsandotherassets)
Transportation YingkouPortLiabilityCoLtd
YingkouPortGroupCoLtd
- 822
C=Completed;P=Pending;L=Lapsed Source:mergermarket
Topdeals
Monthly M&A report – 53
Greater China
Top 5 Greater China announced deals of the month (July 2008)Announced Status Target company Sector Bidder
companySeller company Exit multiples (x) Bid premia
1-day beforeDeal value($m)
Revenue EBITDA P/E
16-Jul-08 P AnhuiXindaRealEstateCoLtd;HainanYuanshicunDevelopment;HefeiRunxinRealEstateDevelopmentCoLtd;JiaxingCindaJiansheRealEstateDevelopmentCoLtd;JilinXindaJinduProperty;NingboXindaZhongjianProperty;QingdaoXindaRongchangPropertyGroupCoLtd;ShanghaiLirenInvestmentManagementCoLtd;ShanghaiXindaYintaiPropertyCoLtd;TaizhouCindaPropertyCoLtd;andXinjiangCindaYintongPropertyCoLtd
FinancialServices
BeijingTianqiaoBeidaJadeBirdScience&TechnologyCoLtd
CindaInvestmentCoLtd;HainanJianxinInvestmentManagementCoLtd;JiangxiGanyueExpresswayCoLtd;ShenzhenJianxinInvestmentDevelopmentCoLtd;andZhengyuanInvestmentCoLtd
n/a n/a - 925
7-Jul-08 P HonitonEnergyHoldingsPlc
Energy,Mining&Utilities
ArcapitaBankBSC;ColossusHoldings
- 500
25-Jul-08 P WumartStoresInc(40.8%stake)
Consumer YinchuanXinhuaDepartmentStoreCoLtd
WumeiHoldingsLtd 1.2 14.9 26.9 -8.5% 458
21-Jul-08 P BrightWorldPrecisionMachineryLimited
Industrials&Chemicals
ChinaHoldingsAcquisitionCorporation
WorldShareholdLimited
4.4 13.5 10.3 85.9% 335
24-Jul-08 P BankofJilinCoLtd(19.67%stake)
FinancialServices
HanaBank n/a n/a - 324
C=Completed;P=Pending;L=Lapsed
Topdeals
Monthly M&A report – 54
Greater China
Pipeline of Greater China expected dealsSituation Target company Sector Potential bidder
companyFinancial advisers to bidder (B); target (T); seller (S)
Seller company
Market cap est.value
($m)
Comments
Potentialtakeovertarget
HighTechComputerCorp
TMT SonyEricsson 31,135 SonyEricssonhasbeenreportedinterestedinHighTechComputerCorp,theTaiwanlistedmobilemanufacturer.HighTechComputerissuedanannouncementdecliningtogiveanycomment.
Expecteddeal JiuquanIronandSteelGroup/InternationalMineralResources(jointventure)
Energy,Mining&Utilities
3,090 JiuquanIronandSteelGroupwillforma51-49jointventurewithKazakhstanbasedInternationalMineralResources.ThenewcompanywillbeworthCNY21.169bn.
Expecteddeal TelevisionBroadcastsLimited
TMT YeungKwokKeung(privateinvestor)
ShawBrothers(Hong
Kong)Ltd.
2,717 TheChairmanofCountryGardenHoldingsCoLtd,theChineserealestatedeveloper,isexpectedtomakeabidforTVB.
SignificantM&A
HKTGroupHoldingsLimited
TMT ApaxPartners;BlackstoneGroupHoldingsLLC;ChinaInvestmentCorporation;GoldmanSachs,KohlbergKravisRoberts&Co;MacquarieGroupLimited;MBKPartners;ProvidenceEquityPartnersInc;TPGLLP
UBS(S) PCCWLimited
2,500 PCCW,theHongKonglistedtelecomoperator,planstoinjectitslocaltelecombusinessesintoHKTGroupHoldings,andsubsequentlydisposeofa45%staketointerestedparties.
SignificantM&A
ChinaYangtzeTransportation(Group)Corporation
Transport ChinaNationalForeignTradeTransportation(Group)Corporation
1,958 ChinaYangtzeTransportation(Group)Corporation,isconsideringapossiblemergerandreorganizationwithChinaNationalForeignTradeTransportation(Group)Corporation,astatecontrolledcompany.SinceSASACapprovalisstillrequired,therearelevelsofuncertaintyastowhethertheproposalwillmaterialize.
SignificantM&A
InsigmaTechnology TMT MicrosoftCorporation
1,387 InsigmaTechnology,theChineselistedITcompany,hasbeenreportedtobeindiscussionsoveraprivateplacementofnewsharestoMicrosoft.
SignificantM&A
TaiwanBusinessBank
FinancialServices
MegaFinancialHolding
1,327 TaiwanBusinessBankisreportedtohaveaforeigninvestorinterestedinacquiringa13.4%stake.
SignificantM&A
ShanghaiAirlinesCoLtd
Transport ChinaEasternAirlines
1,031 ShanghaiAirlinesCo,theShanghailistedairlinescompany,isrumouredtobegivingupitsoriginalplantobringinaforeignstrategicinvestorandrathermergewithChinaEasternAirlinesviaashareswap.
C=Completed;P=Pending;L=Lapsed Source:mergermarket
Expecteddeals
Monthly M&A report – 55
Greater China
Leaguetables
valueYTD
31-Jul-08House Value
($m)Deal
count
1 LehmanBrothers 53,612 10
2 ChinaInternationalCapital 48,566 9
3 JPMorgan 43,388 9
4 Citigroup 31,265 5
5 Rothschild 29,611 3
6 MorganStanley 11,969 7
7 CreditSuisse 9,875 7
8 UBS 8,166 9
9 MerrillLynch 4,637 4
10 Somerley 4,519 9
11= FearnleyFonds 3,777 1
11= Pareto 3,777 1
13 DeutscheBank 3,748 6
14 ShenyinWanguoSecurities 3,037 5
15 BNPParibas 2,497 7
Source:mergermarket
volume
Thefinancialadviserleaguetablesbyvalueandvolumehavebeenrunfrom01January2008to31July2008andexcludelapsedandwithdrawndeals.Thetablescoverallsectorsandarebasedonthegeographyofeitherthetarget,bidderorsellerbeingGreaterChina.
YTD 31-Jul-08
House Value ($m)
Deal count
1 LehmanBrothers 53,612 10
2 OptimaCapital 280 10
3 ChinaInternationalCapital 48,566 9
4 JPMorgan 43,388 9
5 UBS 8,166 9
6 Somerley 4,519 9
7 MorganStanley 11,969 7
8 CreditSuisse 9,875 7
9 BNPParibas 2,497 7
10 CIMBGroup 878 7
11 DeutscheBank 3,748 6
12 Citigroup 31,265 5
13 ShenyinWanguoSecurities 3,037 5
14 HaitongSecurities 1,856 5
15 PricewaterhouseCoopersCorpFin 884 5
Source:mergermarket
Top 15 financial advisers - Greater China
valueYTD
31-Jul-08House Value
($m)Deal
count
1 FreshfieldsBruckhausDeringer 36,590 10
2 Sullivan&Cromwell 33,456 4
3 Linklaters 32,608 9
4 SkaddenArpsSlateMeagher&Flom 30,115 4
5= Shearman&Sterling 29,589 1
5= SlaughterandMay 29,589 1
7 CliffordChance 23,825 9
8 Ashurst 13,205 2
9 SimpsonThacher&Bartlett 13,163 2
10 MallesonsStephenJaques 13,034 4
11 Deacons 6,198 5
12 DLAPiper 5,895 12
13 Allen&Overy 5,721 3
14 King&Wood 5,287 12
15 JunHeLawOffices 4,910 4
Source:mergermarket
volume
Thelegaladviserleaguetablesbyvalueandvolumehavebeenrunfrom01January2008to31July2008andincludelapsedandwithdrawndeals.Thetablescoverallsectorsandarebasedonthegeographyofeitherthetarget,bidderorsellerbeingGreaterChina.
YTD 31-Jul-08
House Value ($m)
Deal count
1 DLAPiper 5,895 12
2 King&Wood 5,287 12
3 FreshfieldsBruckhausDeringer 36,590 10
4 Linklaters 32,608 9
5 CliffordChance 23,825 9
6 JonesDay 2,409 9
7 Morrison&Foerster 1,432 7
8 Haiwen&Partners 4,413 6
9 HerbertSmith/GleissLutz/Stibbe 3,645 6
10 LCS&Partners 135 6
11 Deacons 6,198 5
12 Allen&Gledhill 3,455 5
13 WongPartnership 1,799 5
14 NortonRose 1,388 5
15 Baker&McKenzie 1,241 5
Source:mergermarket
Top 15 legal advisers - Greater China
Monthly M&A report – 56
Greater China
Trendgraphs
Greater China M&A quarterly trend
value volume
Movingaveragetrendline
0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
Q3 2008*
Q2 2008
Q1 2008
Q4 2007
Q3 2007
Q2 2007
Q1 2007
Q4 2006
Q3 2006
Q2 2006
Q1 2006
Q4 2005
Q32005
Q2 2005
Q1 2005
Q42004
Q3 2004
Q2 2004
Q12004
Q4 2003
Q32003
Q2 2003
Q12003
valu
e ($
m)
0
50
100
150
200
250
300
Q3 2008*
Q2 2008
Q1 2008
Q4 2007
Q3 2007
Q2 2007
Q1 2007
Q4 2006
Q3 2006
Q2 2006
Q1 2006
Q4 2005
Q3 2005
Q2 2005
Q1 2005
Q4 2004
Q32004
Q2 2004
Q12004
Q42003
Q32003
Q22003
Q1 2003
num
ber
of d
eals
Greater China M&A quarterly private equity trend
value volume
0
500
1,000
1,500
2,000
2,500
3,000
3,500
Q3 2008*
Q2 2008
Q1 2008
Q4 2007
Q3 2007
Q2 2007
Q1 2007
Q4 2006
Q3 2006
Q2 2006
Q12006
Q4 2005
Q3 2005
Q2 2005
Q1 2005
Q4 2004
Q3 2004
Q2 2004
Q12004
Q42003
Q3 2003
Q22003
Q1 2003
valu
e ($
m)
Greater Chinabuyouts
Greater Chinaexits
0
2
4
6
8
10
12
14
16
18
20
Q3 2008*
Q2 2008
Q1 2008
Q4 2007
Q3 2007
Q2 2007
Q1 2007
Q4 2006
Q3 2006
Q2 2006
Q1 2006
Q4 2005
Q3 2005
Q2 2005
Q1 2005
Q4 2004
Q3 2004
Q2 2004
Q1 2004
Q4 2003
Q3 2003
Q2 2003
Q1 2003
num
ber
of d
eals
Greater Chinabuyouts
Greater Chinaexits
Monthly M&A report – 57
Greater China
Trendgraphs
Greater China M&A annual trends
value volume
0
20
40
60
80
100
120
2008 YTD20072006200520042003
valu
e ($
m)
All Greater China M&A
Greater China buyouts
Greater China exits
0
100
200
300
400
500
600
700
800
900
2008 YTD20072006200520042003
num
ber
of d
eals
All Greater China M&A
Greater China buyouts
Greater China exits
Greater China M&A sector breakdown YTD 2008
value volume
Industrials and Chemicals
Energy, Mining & Utilities
Financial services
Consumer
TMT
Business services
Pharma/Medical/Biotech
Construction
Transport
Leisure
Agriculture
12.2%
11.9%
26.6%
4.4%
38.4%
1.2%
0.9%
1.3%
2%
0.4%0.7%
Industrials and Chemicals
Energy, Mining & Utilities
Financial services
Consumer
TMT
Business services
Pharma/Medical/Biotech
Construction
Transport
Leisure
Agriculture
24.1%
17.6%
14.8%
11.8%
3.9%
5.3%
6.7%
10%
3.2%
0.9%1.6%
Monthly M&A report – 58
Greater China
Mid-marketdeals
Top 10 Greater China announced mid market deals for YTD 31 July 2008 ($10mto$250m)Announced Status Target company Sector Target
financial adviser
Target legal adviser
Bidder company Bidder financial adviser
Bidder legal adviser
Seller company Deal value($m)
27-Jun-08 P ValinArcelorMittalAutomotiveSteelLtd(33%stake)
Industrials&Chemicals
ArcelorMittal;HunanValinIron&SteelGroupCoLtd;andHunanValinSteelTube&WireCoLtd
240
28-Feb-08 C WuxiLittleSwanCompanyLtd(24.01%stake)
Consumer GuangdongMideaElectricAppliancesCoLtd
CITICSecurities
ZhongXinXieChengLawfirm
WuxiGuolianDevelopment(Group)CompanyLimited
236
16-Jul-08 P QinghaiBindiPotashCoLtd
Industrials&Chemicals
JilinPharmaceuticalCoLtd
ChinaEuroSecuritiesLimited
FujianFuruiInvestmentCoLtd;GeermuEnnengdaInvestment;LenghuBindiPotashCoLtd;QinghaiHuiwangMineralInvestmentCoLtd;ShanghaiDajingCulturalCoLtd;ShanghaiShupaiIndustryCoLtd;andZhangleRongwaTradingCoLtd
235
28-Feb-08 P AnhuiPublishingGroupCoLtd(publishingandprintingassets)
TMT USTCChuangxin
HaitongSecurities
ChengyiLawFirm
AnhuiPublishingGroupCoLtd
235
3-Mar-08 P E-TENInformationSystemsCompanyLimited
TMT Noneused Noneused
AcerIncorporated
KPMGCorpFin
Notdisclosed 231
23-Jan-08 P YunnanXibuMiningCompanyLimited(80%stake)
Energy,Mining&Utilities
GloryFutureGroupLtd
231
15-Jan-08 P RonganGroupCoLtd(8subsidiaries)
FinancialServices
ShenzhenZhouMingHaiXunInvestment
ZhejiangDOSLawFirm
SuccessInformationIndustryGroupCoLtd
GFSecurities ZheJiangHeYiLawOffice
RonganGroupCoLtd
229
22-Jul-08 P SilvertieHoldingCoLtd(42.85%stake)
BusinessServices
SealandSecurities
KangDaLawFirm
BeijingInfrastructureInvestmentCoLtd;andChinaYintaiInvestmentCoLtd
China Securities
JunZeJunLawOffices
220
23-Jul-08 P Ruiyuan(Fujian)EnterpriseCoLtd;Sakura(Fujian)Packaging&StationeryCoLtd;andSakura(Fujian)PlasticEnterpriseCoLtd
Industrials&Chemicals
DMG&PartnersSecurities
ThaiVillageHoldingsLtd
OverseaChineseBanking
KhattarWong ChinaStationeryLimited
219
7-Apr-08 C ChongqingWaterGroup(15%stake)
Energy,Mining&Utilities
NWSHoldingsLimited;andSuezEnvironment
CIMBGroup Notdisclosed 214
C=Completed;P=Pending;L=LapsedSource:mergermarket
Monthly M&A report – 59
Greater China
Mid-marketdeals
Greater China M&A quarterly mid-market trend
value volume
0
2,000
4,000
6,000
8,000
10,000
12,000
Q3 2008*
Q2 2008
Q1 2008
Q4 2007
Q3 2007
Q2 2007
Q12007
Q4 2006
Q3 2006
Q2 2006
Q1 2006
Q4 2005
Q3 2005
Q2 2005
Q1 2005
Q4 2004
Q3 2004
Q2 2004
Q1 2004
Q4 2003
Q3 2003
Q2 2003
Q1 2003
valu
e ($
m)
0
50
100
150
200
Q3 2008*
Q2 2008
Q1 2008
Q4 2007
Q32007
Q22007
Q12007
Q42006
Q32006
Q2 2006
Q12006
Q4 2005
Q3 2005
Q2 2005
Q1 2005
Q4 2004
Q3 2004
Q2 2004
Q1 2004
Q4 2003
Q3 2003
Q2 2003
Q1 2003
num
ber
of d
eals
Movingaveragetrendline
Monthly M&A report – 60
Greater China
Mid-marketleaguetables
YTD 31-Jul-08
House Value ($m)
Deal count
Value:
1 Somerley 686 6
2 BNPParibas 584 3
3 HaitongSecurities 574 4
4 CIMBGroup 528 4
5 ChinaSecurities 492 3
6 ShenyinWanguoSecurities 461 4
7 CITICSecurities 457 3
8 Commerzbank 439 3
9 UnitedSecurities 426 1
10 GFSecurities 422 2
Volume:
1 OptimaCapital 260 7
2 Somerley 686 6
3 HaitongSecurities 574 4
4 CIMBGroup 528 4
5 ShenyinWanguoSecurities 461 4
6 KPMGCorpFin 307 4
7 M&AInternational 115 4
8 BNPParibas 584 3
9 ChinaSecurities 492 3
10 CITICSecurities 457 3
Source:mergermarket
Thefinancialadviserleaguetablesbyvalueandvolumehavebeenrunfrom01January2008to31July2008andexcludelapsedandwithdrawndeals.Thetablescoverallsectorsandarebasedonthegeographyofeitherthetarget,bidderorsellerbeingGreaterChina.
Top 10 mid-market financial advisers – Greater China ($10mto$250m)
YTD 31-Jul-08
House Value ($m)
Deal count
Value:
1 King&Wood 856 5
2 Morrison&Foerster 694 8
3 DLAPiper 476 7
4 KangDaLawFirm 451 3
5 O'Melveny&Myers 433 5
6 Rajah&Tann 403 3
7 HerbertSmith/GleissLutz/Stibbe 386 3
8 FreshfieldsBruckhausDeringer 376 2
9 Allen&Gledhill 352 2
10 MallesonsStephenJaques 294 4
Volume:
1 King&Wood 856 8
2 DLAPiper 476 7
3 Morrison&Foerster 694 5
4 FreshfieldsBruckhausDeringer 376 5
5 Linklaters 278 4
6 K&LGates 263 4
7 JonesDay 160 4
8 KangDaLawFirm 451 3
9 O'Melveny&Myers 433 3
10 Rajah&Tann 403 3
Source:mergermarket
Thelegaladviserleaguetablesbyvalueandvolumehavebeenrunfrom01January2008to31July2008andincludelapsedandwithdrawndeals.Thetablescoverallsectorsandarebasedonthegeographyofeitherthetarget,bidderorsellerbeingGreaterChina.
Top 10 mid-market legal advisers – Greater China ($10mto$250m)
Monthly M&A report – 61
The management buyout by Tsumura Lifescience • ThemanagementteamofTsumuraLifescience(TLS)
hasannounceditwillacquirethecompanyinabuyout
transactionbackedbyWisePartnersforJPY4.5bn.Inthis
transaction,Tsumura&CowillfirstsellitsstakeinTSLto
aspecialacquisitionvehiclesetupbyWisePartners,and
thenbuybacka10%stakeinittokeeptheinfluenceon
TSL.Themanagementteamandemployeeswillalsotake
uppartofthesharesfromWisePartners.
• Tsumura&Coisauniquepharmaceuticalcompanywith
strengthsinOrientalherbalmedicinewithamarket
capitalisationofalmostJPY200bn.Inadversemarket
conditions,Tsumurahasshownstableperformance
inrecentyearsanditssharepricehasgoneupby
40%sinceJulylastyear.Withinthegroup,TSLwas
mostlyengagedinconsumerproductswithaturnover
ofJPY7.5bnintheyearendedMarch2007.Tsumura
decidedtosellitssharesasTSL’smainproduct,bath
additives,willnotgenerateanysynergieswiththe
Orientalmedicineproducts.
• WisePartnerswillretaintheincumbentmanagement
withtheaimoflistingTSLonthestockmarketinthenear
future.
Shinsei Bank acquires another consumer finance company• ShinseiBankhasannouncedon11July2008thatitwill
acquireGEConsumerFinance,theJapaneseconsumer
financedivisionofGEJapanHoldings.Theconsideration
ofJPY580bn($5.5bn)ispayableincashandmakesthis
thelargesttransactioninJapansofarthisyear.
• Theacquisitionhasbeenasurprisetosomeobservers,
partlybecausetheconsumerfinancemarkethasbeen
shrinkingsincethegovernmentintroducedanew
regulation.Thegovernmentnowrequiresconsumer
financecompaniestopaybacktheintereststhat
borrowersoverpaidinthepast,whichisputtingaburden
ontheirbalancesheets.Nevertheless,ShinseiBank
acquireda66%stakeinAplusforJPY35bnin2004,and
theacquiredbusinessrecordedanetlossofJPY29.3bn
inthefiscal2007.Whilesomefinancialinstitutionsare
retreatingfromthemarket,itwasamildsurprisethat
ShinseiBankdecidedtoexpanditsconsumerfinance
business.Thoughitisarisk-takingdecision,ShinseiBank
assumesprofitabilityispossibleasthemarketnowhas
fewerplayersthanbefore.
• ThegovernmentisamajorshareholderofShinseiBank
witha22.76%stake,andhasbeenlookingforatiming
todisposeofit.Sincethebeginningof2007,however,
ShinseiBankshareslostalmosthalfofitsvalue.Itislikely
thatthegovernmentwillretainthecontrolonShinsei
Bankforawhileatleastuntiltheacquisitionproducesa
positiveimpactforthebank.
Milestone buyout facing challenge• On30July2008,itwasreportedthatmajorshareholders
ofSkylarkweredemandingthechiefexecutiveofficer
tostepdown,holdinghimresponsibleforthelackluster
performanceofthecompany.
• SkylarkwasoriginallyacquiredbySNCInvestment,an
acquisitionvehicleultimatelyownedbyNomuraPrincipal
InvestmentsandCVCCapitalFinance,inamanagement
buyoutinitiatedbyKiwamuYokokawa,thechiefexecutive
officerofthecompany.Thedealwasthebiggestbuyout
transactionofalistedcompanyinJapan,andvalued
theentirecompanyatJPY295bn.Twoyearsafterthe
transaction,shareholdershavebecomedissatisfiedwith
theperformanceofSkylark,whichhasrecordednet
lossesinthelasttwoconsecutivefiscalyears.
• WhileNomuraandCVCown97%oftheissuedshare
capital,theyarerequiredtoaskforconsentsfrom
debtprovidersinordertoreplacethechiefexecutive
officer.Yokokawaisnowopposingthedemandfrom
shareholders,explainingtothebanksthatperformance
willimprovesoonbyclosingunprofitablerestaurants.
Partiesareexpectedtocometoconclusiononthematter
bytheendofAugust.
Japan
Japan
Monthly M&A report – 62
Dealofthemonth
Target: GEConsumerFinanceCoLtd Announced: 11July2008
Bidder: ShinseiBankLimited Deal value: JPY580bn
Seller: GEJapanHoldings Deal nature: Recommended
• ShinseiBankLimited,thelistedJapanbasedinstitutional
andcommercialbank,hasagreedtoacquireGE
ConsumerFinanceCoLtd,theJapanbasedconsumer
financeservicesprovider,fromGEJapanHoldings,the
Japanbasedproviderofconsumerfinancialservices,and
asubsidiaryofGeneralElectricCompany,thelistedUS
baseddiversifiedindustrialgroup,foracashconsideration
ofJPY580bn($5.39bn)
• ShinseiBankwillacquireGEConsumerFinance,along
withitssubsidiariesGEMoneyFinanceKabushikiKaisha,
GCYugenKaisha,KabushikiKaishaNCCardSendaiand
L-NetKabushikiKaisha.Thetransactionalsoincludesthe
Lakebrandconsumerlendingbusiness,creditcardunit
andthehousingloandivision
• Theagreementalsoincludesanindemnificationclause
thatlimitsShinsei’slossexposure.ShinseiBankwillcover
thegreyzonecostsuptoJPY203bn,whileriskwillbe
sharedbetweenShinseiBankandGEintherangeofJPY
203bntoJPY260bn.BeyondJPY260bn,thecostwillbe
coveredbyGE
• TheconsiderationwillbefundedbyShinseiBank’s
internalresources.PromiseCoLtd,theJapaneseprovider
ofconsumerfinance,andAcomCoLtd,theJapan
basedconsumerfinancebankingfirm,weretheother
companiesparticipatinginthebiddingprocessforGE
ConsumerFinance
• Theconsolidationoftheretailbankingbusinessand
consumerfinancebusinessesisexpectedtopositively
affectthecustomerandrevenuefactorofShinseiBank.
Thetransaction,whichissubjecttoregulatoryapprovals
andclosingconditions,isexpectedtocompleteby30
September2008
Advisers
Target/seller Bidder
Financial UBS Financial Noneused
Legal - Legal Noneused
PR - PR Noneused
Japan
Monthly M&A report – 63
Top 15 Japanese announced deals for YTD 31 July 2008Announced Status Target company Sector Bidder company Seller company Exit multiples (x) Bid premia
1-day beforeDeal value
($m)Revenue EBITDA P/E
11-Jul-08 P GEConsumerFinanceCoLtd
FinancialServices
ShinseiBankLimited
GEJapanHoldingsGK
n/a n/a - 5,394
31-Jan-08 C MizuhoSecuritiesLtd(4.35%stake)
FinancialServices
MizuhoCorporateBankLtd
n/a n/a - 2,350
15-Jan-08 C SBIE*TradeSecuritiesCoLtd(47.74%stake)
FinancialServices
SBIHoldingsInc n/a n/a 25.4 -5.0% 1,362
13-Feb-08 C ToyamaChemicalCoLtd(63.95%stake)
Industrials&Chemicals
FUJIFILMHoldingsCorp
14.1 (loss) (loss) 39.5% 1,296
28-May-08 C MitsubishiUFJNicosCoLtd(24.85%stake)
FinancialServices
MitsubishiUFJFinancialGroupInc
n/a n/a (loss) -8.1% 1,245
14-Mar-08 C AshikagaBankLimited FinancialServices
NomuraHoldings;NomuraFinancialPartnersCo;NextCapitalPartnersCoLtd;andJAFCOCoLtd
DepositInsuranceCorporationofJapan
n/a n/a 1.8 - 1,212
23-Apr-08 C BoschCorporation(38.52%stake)
Industrials&Chemicals
RobertBoschGmbH
0.8 7.3 15.3 34.8% 1,005
31-Mar-08 C ShinseiBankLimited(13.7%stake)
FinancialServices
DepositInsuranceCorporationofJapan
n/a n/a (loss) 6.8% 979
12-May-08 P VictorCompanyofJapanLimited
Consumer KenwoodCorporation
0.1 6.1 (loss) 0.4% 924
23-May-08 C ChugaiPharmaceuticalCoLtd(9.8%stake)
Pharma,Medical&Biotech
RochePharmholdingBV
2.8 11.9 25.5 8.4% 922
24-Jul-08 P OkiSemiconductorCompanyLimited(95%stake)
TMT RohmCoLtd OkiElectricIndustryCoLtd
- 795
23-Jul-08 P NIWSCoLtd(dealerbusiness);andNIWSCoHQLtd(dealerbusiness)
BusinessServices
LACHoldingsInc NIWSCoLtd;andNIWSCoHQLtd
3.4 - 784
27-Mar-08 C TokyuStoreChain(60.4%stake)
Consumer TokyuCorporation 0.3 8.7 (loss) 28.3% 689
31-Mar-08 C ChiyodaCorporation(23.13%stake)
Construction MitsubishiCorporation
0.5 7.6 8.7 -3.3% 608
16-Jan-08 C NippeiToyamaCorporation(70.67%stake)
Industrials&Chemicals
KomatsuLtd 1.1 7.9 11.7 54.3% 595
C=Completed;P=Pending;L=Lapsed Source:mergermarket
Topdeals
Japan
Monthly M&A report – 64
Top 5 Japanese announced deals of the month (July 2008)Announced Status Target Company Sector Bidder company Seller company Exit multiples (x) Bid premia
1-day beforeDeal value
($m)Revenue EBITDA P/E
11-Jul-08 P GEConsumerFinanceCoLtd
FinancialServices ShinseiBankLimited
GEJapanHoldings.GK
n/a n/a - 5,394
24-Jul-08 P OkiSemiconductorCompanyLimited(95%stake)
TMT RohmCoLtd OkiElectricIndustryCoLtd
- 795
23-Jul-08 P NIWSCoLtd(dealerbusiness);andNIWSCoHQLtd(dealerbusiness)
BusinessServices LACHoldingsInc NIWSCoLtd;andNIWSCoHQLtd
3.4 - 784
29-Jul-08 P StylingLifeHoldingsInc(51%stake)
Consumer TokyoBroadcastingSystemInc
NikkoPrincipalInvestmentsJapanLtd
0.6 - 195
10-Jul-08 P IntelligenceLtd(62.36%stake)
BusinessServices UsenCorporation 0.4 3.8 5.7 - 190
C=Completed;P=Pending;L=Lapsed Source:mergermarket
Topdeals
Japan
Monthly M&A report – 65
Pipeline of Japanse expected dealsSituation Target Company Sector Potential bidder
companyFinancial adviser to bidder (B); target (T); seller (S)
Seller company
Market cap/ est. value ($m)
Comments
ExpectedDeal
CentralFinance/QUOQInc/OMCCard
FinancialServices
SumitomoMitsuiFinancialGroupInc
Citigroup(T) 23,000(2006turnoverofthethreecompaniestobemerged)
SumitomoMitsuiFinancialGrouphasannouncedabasicagreementonamergerofOMCCard,CentralFinanceandQuoq.SMFGholdsa33%stakeinOMC,23%inCFand32%inQuoq,butcurrentlyhasnointentiontoacquirethefullcontrol.Nodefinitiveplanhasbeenannouncedregardingthelistingofthenewlymergedcompany
ExpectedDeal
SapporoHoldingsLimited
Consumer SteelPartners MizuhoCorpBank,NikkoCitigroup(T)
3,045(49%stakeandnetdebt)
SteelPartnersJapanStrategicFund,thewhollyownedsubsidiaryofUSbasedinvestmentfundSteelPartners,hassubmittedarevisedofferon10March2008toraisetheofferpricetoJPY875persharetoacquire33.3%ofthevotingrightsofSapporoHoldings
ExpectedDeal
BankofIkeda FinancialServices
SenshuBank 741 BankofIkedahasannouncedanagreementwithSenshuBankonaplannedmergerwithanewholdingcompany.
ExpectedDeal
IntelligenceLtd BusinessServices
UsenCorporation 314 UsenhasannouncedabasicagreementtoturnIntelligenceintoawhollyownedsubsidiarythroughtheshareexchange.Aformalagreementisexpectedshorthly.
ExpectedDeal
ToshibaBuildingCoLtd
FinancialServices
NomuraRealEstateDevelopmentCoLtd
Nomura(B),MizuhoFinancialGroup(S)
742(60%stake)
NomuraRealEstateDevelopmenthasannouncedabasicagreementtoacquirea65%stakeinToshibaBuildingforJPY80bn.
ExpectedDeal
JasdaqSecuritiesExchangeInc
FinancialServices
OsakaSecuritiesExchangeCo
JapanSecuritiesDealers
Association
OsakaSecuritiesExchangeisrumoredtolaunchatenderofferforJasdaqSecuritiesExchangeinAugust
Takeovertarget
MaruichiSteelTubeCoLtd
Industrials&Chemicals
SteelPartners 95 MaruichiSteelTubeLtd.theJapanbasedsteelproductsmanufacturer,isrumouredtobeatakeovertargetfromPEfirm,SteelPartners.
C=Completed;P=Pending;L=Lapsed Source:mergermarket
Expecteddeals
Japan
Monthly M&A report – 66
Leaguetables
valueYTD
31-Jul-08
House Value ($m)
Deal count
1 Nomura 20,599 44
2 UBS 18,306 9
3 GoldmanSachs 9,238 7
4 DaiwaSecuritiesGroup 6,433 30
5 MizuhoFinancialGroup 5,956 26
6 KPMGCorpFin 5,628 14
7 MerrillLynch 5,627 5
8 MitsubishiUFJSecurities 5,136 22
9 ReligareCapitalMarkets 4,625 1
10 Fox-PittKeltonCochranCaroniaWaller 4,397 1
11 Rothschild 3,846 3
12 Citigroup 3,454 18
13 GCASavvian 2,957 14
14 SBIHoldings 2,724 1
15 Ernst&Young 2,090 7
Source:mergermarket
volume
Thefinancialadviserleaguetablesbyvalueandvolumehavebeenrunfrom01January2008to31July2008andexcludelapsedandwithdrawndeals.Thetablescoverallsectorsandarebasedonthegeographyofeitherthetarget,bidderorsellerbeingJapanese
YTD31-Jul-
08
House Value ($m)
Deal count
1 Nomura 20,599 44
2 DaiwaSecuritiesGroup 6,433 30
3 MizuhoFinancialGroup 5,956 26
4 MitsubishiUFJSecurities 5,136 22
5 Citigroup 3,454 18
6 KPMGCorpFin 5,628 14
7 GCASavvian 2,957 14
8 UBS 18,306 9
9 GoldmanSachs 9,238 7
10 Ernst&Young 2,090 7
11 MerrillLynch 5,627 5
12 MorganStanley 1,366 5
13 PricewaterhouseCoopersCorpFin 774 4
14 Rothschild 3,846 3
15 OrixM&ASolutions 6 3
Source:mergermarket
Top 15 financial advisers - Japan
valueYTD
31-Jul-08
House Value ($m)
Deal count
1 SkaddenArpsSlateMeagher&Flom 9,658 4
2 Nishimura&Asahi 9,602 26
3 GibsonDunn&Crutcher 7,754 2
4= Dewey&LeBoeuf 7,659 1
4= EdwardsAngellPalmer&Dodge 7,659 1
4= WilmerHale 7,659 1
7 Sullivan&Cromwell 7,645 9
8 Shearman&Sterling 6,359 5
9 MoriHamada&Matsumoto 5,163 19
10 JonesDay 4,694 5
11= P&ALawOffices 4,625 1
11= VaishAssociates 4,625 1
13 Wolf,Block,SchorrandSolis-Cohen 4,397 1
14 FreshfieldsBruckhausDeringer 2,936 5
15 CliffordChance 2,613 4
Source:mergermarket
volume
Thelegaladviserleaguetablesbyvalueandvolumehavebeenrunfrom01January2008to31July2008andincludelapsedandwithdrawndeals.Thetablescoverallsectorsandarebasedonthegeographyofeitherthetarget,bidderorsellerbeingJapanese
YTD31-Jul-
08
House Value ($m)
Deal count
1 Nishimura&Asahi 9,602 26
2 MoriHamada&Matsumoto 5,163 19
3 NagashimaOhno&Tsunematsu 2,221 14
4 Sullivan&Cromwell 7,645 9
5 Morrison&Foerster 1,446 7
6 Shearman&Sterling 6,359 5
7 JonesDay 4,694 5
8 FreshfieldsBruckhausDeringer 2,936 5
9 Baker&McKenzie 884 5
10 SkaddenArpsSlateMeagher&Flom 9,658 4
11 CliffordChance 2,613 4
12 White&Case 39 4
13 Linklaters 2,506 3
14 AndersonMori&Tomotsune 1,634 3
15 TMIAssociates 1,454 3
Source:mergermarket
Top 15 legal advisers - Japan
Japan
Monthly M&A report – 67
value
value
YTD31-Jul-
08
House Value ($m)
Deal count
1= JAFCO 1,212 1
1= NextCapitalPartners 1,212 1
3= BainCapital 576 1
3= RHJInternational 576 1
5 TheCarlyleGroup 564 1
6 CerberusCapitalManagement 416 1
7 PolarisPrincipalFinance 392 2
8 TokioMarineCapital 392 1
9 AdvantagePartners 230 2
10 MKPCapitalManagement 64 1
Source:mergermarket
YTD31-Jul-
08
House Value ($m)
Deal count
1 JAFCO 484 2
2 CVCCapitalPartners 392 1
3 NikkoPrincipalInvestmentsJapan 195 1
4 KaleidoHoldings 108 1
5 PhoenixCapital 103 3
6= NIFSMBCVentures 92 1
6= VisionCapitalCorporation 92 1
8 TokioMarineCapital 49 1
9 Nikkoantfactory 28 1
10 DaiwaSecuritiesSMBCPrincipalInvestments
14 1
Source:mergermarket
volume
volume
TheprivateequitybuyoutactivitytablesbyvalueandvolumearebasedonprivateequityfirmsadvisingthebidderonbuyoutdealswherethedominantgeographyofthetargetcompanyisJapaneseThetablesbyvalueandvolumehavebeenrunfrom01January2008to31July2008andexcludelapsedandwithdrawndeals
TheprivateequityexitactivitytablesbyvalueandvolumearebasedonprivateequityfirmsadvisingthevendoronexitdealswherethedominantgeographyofthetargetcompanyisJapaneseThetablesbyvalueandvolumehavebeenrunfrom01January2008to31July2008andexcludelapsedandwithdrawndeals
YTD31-Jul-
08
House Value ($m)
Deal count
1 PolarisPrincipalFinance 392 2
2 AdvantagePartners 230 2
3 SBIHoldings 52 2
4= JAFCO 1,212 1
4= NextCapitalPartners 1,212 1
6= BainCapital 576 1
6= RHJInternational 576 1
8 TheCarlyleGroup 564 1
9 CerberusCapitalManagement 416 1
10 TokioMarineCapital 392 1
Source:mergermarket
YTD31-Jul-
08
House Value ($m)
Deal count
1 PhoenixCapital 103 3
2 JAFCO 484 2
3 CVCCapitalPartners 392 1
4 NikkoPrincipalInvestmentsJapan 195 1
5 KaleidoHoldings 108 1
6= NIFSMBCVentures 92 1
6= VisionCapitalCorporation 92 1
8 TokioMarineCapital 49 1
9 Nikkoantfactory 28 1
10 DaiwaSecuritiesSMBCPrincipalInvestments
14 1
Source:mergermarket
Activity table of private equity firms on Japanese buyouts
Activity table of private equity firms on Japanese buyouts
Leaguetables
Japan
Monthly M&A report – 68
Trendgraphs
Japanese M&A quarterly trend
value volume
Movingaveragetrendline
0
5,000
10,000
15000
20000
25,000
30,000
35,000
40,000
45,000
Q32008*
Q22008
Q12008
Q42007
Q32007
Q22007
Q12007
Q42006
Q32006
Q22006
Q12006
Q42005
Q32005
Q22005
Q1 2005
Q42004
Q3 2004
Q2 2004
Q1 2004
Q42003
Q32003
Q22003
Q1 2003
valu
e ($
m)
0
20
40
60
80
100
120
140
Q32008*
Q22008
Q12008
Q42007
Q32007
Q22007
Q12007
Q42006
Q32006
Q22006
Q12006
Q42005
Q32005
Q22005
Q12005
Q42004
Q32004
Q22004
Q12004
Q4 2003
Q32003
Q22003
Q1 2003
num
ber
of d
eals
Japanese M&A quarterly private equity trend
value volume
0
1,000
2000
3,000
4,000
5000
6,000
7000
8,000
9,000
Q32008*
Q2 2008
Q1 2008
Q42007
Q32007
Q22007
Q12007
Q42006
Q32006
Q2 2006
Q12006
Q42005
Q3 2005
Q22005
Q12005
Q42004
Q3 2004
Q22004
Q12004
Q42003
Q32003
Q22003
Q12003
valu
e ($
m)
Japanese buyouts
Japanese exits
0
2
4
6
8
10
12
14
16
18
20
Q3 2008*
Q22008
Q12008
Q42007
Q32007
Q22007
Q12007
Q42006
Q32006
Q22006
Q12006
Q42005
Q32005
Q22005
Q12005
Q42004
Q32004
Q22004
Q12004
Q42003
Q32003
Q22003
Q12003
num
ber
of d
eals
Japanese buyouts
Japanese exits
Japan
Monthly M&A report – 69
Trendgraphs
Japanese M&A annual trends
value volume
0
20
40
60
80
100
120
2008 YTD20072006200520042003
valu
e ($
bn)
All Japanese M&A
Japanese buyouts
Japanese exits
0
100
200
300
400
500
2008 YTD20072006200520042003
num
ber
of d
eals
All Japanese M&A
Japanese buyouts
Japanese exits
Japanese M&A sector breakdown YTD 2008
value volume
Consumer
Industrials and Chemicals
Financial services
TMT
Business services
Pharma/Medical/Biotech
Leisure
Construction
Energy/Mining/Utilities
Transportation
43.6%
1.8%
3.6%
11.6%
0.7%
0.4%
16.9%
12%
4.4%
5%Consumer
Industrials and Chemicals
Financial services
TMT
Business services
Pharma/Medical/Biotech
Leisure
Construction
Energy/Mining/Utilities
Transport
25.6%
1.6% 0.8%
21.1%
4.1%
13.4%
11%
4.5%
5.3%
12.6%
Japan
Monthly M&A report – 70
Mid-marketdeals
Japanese M&A quarterly mid-market trend
value volume
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
4,500
Q32008*
Q22008
Q1 2008
Q4 2007
Q32007
Q22007
Q12007
Q42006
Q32006
Q22006
Q12006
Q4 2005
Q32005
Q22005
Q12005
Q42004
Q32004
Q22004
Q1 2004
Q42003
Q32003
Q22003
Q12003
valu
e ($
m)
0
10
20
30
40
50
60
70
Q3 2008*
Q22008
Q 2008
Q4 2007
Q32007
Q22007
Q12007
Q4 2006
Q32006
Q22006
Q12006
Q42005
Q32005
Q22005
Q12005
Q4 2004
Q32004
Q22004
Q12004
Q42003
Q3 2003
Q2 2003
Q12003
num
ber
of d
eals
Movingaveragetrendline
Top 10 Japanese announced mid market deals for YTD 31 July 2008 ($10mto$250m)Announced Status Target company Sector Target/seller
financial adviser
Target/seller legal adviser
Bidder company Bidder financial adviser
Bidder legal adviser
Seller company
Deal value ($m)
25-Apr-08 C JapanTelecomInvoiceCoLtd(85.1%stake)
BusinessServices
SoftbankTelecomCoLtd
InvoiceInc 245
18-Jun-08 P RikenVitaminCoLtd(29.99%stake)
Industrials&Chemicals
Nomura MoriHamada&Matsumoto
KikkomanCorporation
GCASavvian NagashimaOhno&Tsunematsu
SFCGCoLtd
241
23-May-08 P CosmoSecuritiesCompanyLimited(50.21%stake)
BusinessServices
Noneused Noneused CSKHoldingsCorp
Noneused Noneused 237
1-Feb-08 C NipponMailTransportationCoLtd(88.06%stake)
Transportation Noneused Noneused JapanPostHoldingsCoLtd
MitsubishiUFJSecurities
Nishimura&Asahi
228
6-Jun-08 C TheAsahiShimbunCompany(11.88%stake)
TMT Noneused Noneused TVAsahiCorporation
Noneused Noneused 227
3-Apr-08 C RikenVitaminCoLtd(30.07%stake)
Consumer Notdisclosed Notdisclosed
SFCGCoLtd Notdisclosed Notdisclosed
TZCSInc 219
29-Jul-08 P StylingLifeHoldingsInc(51%stake)
Consumer TokyoBroadcastingSystemInc
NikkoPrincipalInvestmentsJapan
CitigroupInc 195
11-Mar-08 P TheGoodwillGroupInc(16.54%stake)
BusinessServices
CerberusCapitalManagement
MorganStanley 194
10-Jul-08 P IntelligenceLtd(62.36%stake)
BusinessServices
MizuhoFinancialGroup
UsenCorporation DaiwaSecuritiesGroup
190
10-Jan-08 P GinzaCozyCornerCoLtd
Consumer MizuhoFinancialGroup
Nishimura&Asahi
LotteHoldingsCoLtd
MizuhoFinancialGroup
CASTItogaLaw
182
C=Completed;P=Pending;L=Lapsed
Japan
Monthly M&A report – 71
Mid-marketleaguetables
YTD31-Jul-
08
House Value ($m)
Deal count
Value:
1 Nomura 1,547 17
2 DaiwaSecuritiesGroup 1,328 20
3 MizuhoFinancialGroup 1,247 15
4 GCASavvian 1,025 9
5 MitsubishiUFJSecurities 904 9
6 Citigroup 798 10
7 KPMGCorpFin 399 6
8 MorganStanley 374 3
9= DeutscheBank 233 1
9= GoldmanSachs 233 1
Volume:
1 DaiwaSecuritiesGroup 1,328 20
2 Nomura 1,547 17
3 MizuhoFinancialGroup 1,247 15
4 Citigroup 798 10
5 GCASavvian 1,025 9
6 MitsubishiUFJSecurities 904 9
7 KPMGCorpFin 399 6
8 MorganStanley 374 3
9 Ernst&Young 228 3
10 BNPParibas 228 2
Source:mergermarket
Thefinancialadviserleaguetablesbyvalueandvolumehavebeenrunfrom01January2008to31July2008andexcludelapsedandwithdrawndeals.Thetablescoverallsectorsandarebasedonthegeographyofeitherthetarget,bidderorsellerbeingJapanese
Top 10 mid-market financial advisers – Japan ($10mto$250m)
YTD31-Jul-
08
House Value ($m)
Deal count
Value:
1 Nishimura&Asahi 1,055 11
2 NagashimaOhno&Tsunematsu 800 9
3 MoriHamada&Matsumoto 789 9
4 Shearman&Sterling 390 2
5 Sullivan&Cromwell 346 4
6 CASTItogaLaw 273 2
7 TMIAssociates 242 2
8= CMS 237 1
8= NortonRose 237 1
10= BowmanGilfillan 186 1
10= WebberWentzel 186 1
Volume:
1 Nishimura&Asahi 1,055 11
2 NagashimaOhno&Tsunematsu 800 9
3 MoriHamada&Matsumoto 789 9
4 Sullivan&Cromwell 346 4
5 Shearman&Sterling 390 2
6 CASTItogaLaw 273 2
7 TMIAssociates 242 2
8 PaulHastingsJanofsky&Walker 115 2
9 Kitamura&Hiraga 114 2
10 FreshfieldsBruckhausDeringer 45 2
Source:mergermarket
Thelegaladviserleaguetablesbyvalueandvolumehavebeenrunfrom01January2008to31July2008andexcludelapsedandwithdrawndeals.Thetablescoverallsectorsandarebasedonthegeographyofeitherthetarget,bidderorsellerbeingJapanese
Top 10 mid-market legal advisers – Japan ($10mto$250m)
Monthly M&A report – 72
Winter chill for Australian M&A• WhileQ2cameinwithastrongfinishdrivenbytwo
landmarktransactions;the$18bnmergerbetweenthe
AustralianbanksWestpacandStGeorge,andthe$15bn
unsolicitedofferbyBGGrouptoacquiretheentireshare
capitalofOriginEnergy,theAustralianM&Amarketcooled
downsignificantlyinJulywithonly$2.6bnworthofdeals
beingannounced.
• TheM&AvolumesseeninJulyhasalsobeeninlinewith
theslowdownseenthroughout2008,andwithjustover200
dealsannouncedsofarthisyear,wearemostlikelyseeing
theslowestM&Amarketinovertwoyears.Thelackof
M&AvolumesisalsoapparentforthePrivateEquities,with
justover$3bnworthofbuyoutsandonly6exitswithatotal
valueof$650mannouncedsofarthisyear.
• WiththemajorityofthedealsseeninJulycontinuingto
comeoutoftheEnergyandMiningsector,thepositionof
thesectorasthemainsourceofM&Avaluesintheregion
hasbeenfurtherstrengthened.Intotal,thesectorhas
accountedforalmost50%ofthetotalvalueofannounced
dealssofarin2008.
The combination of Westpac and St George moving closer• Thefinancialcommunityisnowincreasinglyofthebelief
thatamergerbetweenStGeorgeBankandWestpacis
likelytobesuccessfulandcertainanalystshasputthe
probabilityofcompletionashighas95%.
• TheACCCisexpectedtoreleaseitsfinalreviewofthe
proposedmergeron20August,buthasalreadygiven
itspreliminaryapprovalforamergertoproceed,and
generallyknockedbacksuggestionsregardingareductionin
competitionduetothemerger.TheStGeorgeshareholders
aresettovoteontheWestpacdealinNovemberandwith
recentfinancialprovisionsdemonstratedbyrivalsNational
AustraliaBankandANZ,manybankinginvestorsarelikelyto
bemorenervousandthereforelesslikelytoknockbackthe
mergerinhopeofahigherofferprice.
• Westpacisnowexpectedtodemonstratethatthebank
doesnothavesignificantexposuretocomplextrading
instrumentsandthatitsbalancesheetcontinuesto
bestrong,inordertokeepWestpac’ssharepricewell
supportedwhileStGeorge’sboardconsidersitsfinal
backingoftheofferaheadoftheshareholderapproval.
Increasing interest for Asciano• Asciano,the$3bnAustralianlistedtransportgroup,has
emergedasoneofthelargestandhottesttakeovertargets
intheAustralianmarket.Afterfirstsayingithasnodirect
explanationfortherecentsharpsharepriceincrease,
Asciano’sCEOMarkRowsthornrecentlyconfirmedthatthe
companyhasreceivedinterestfromseveralgroups,which
againwouldhelpthecompanyattractaminorityco-investor
initsassets.Ascianoisprimarilylookingtoraiseupto
A$1bn($909m)viaapartialassetsaletohelpreducedebts.
• Oneconfirmedunsolicitednon-bindingindicativeproposal
wassubmittedbyTPGCapitalandGlobalInfrastructure
Partnerstoacquire100%oftheissuedsecuritiesofthe
company.Thisproposalalsoincludedacashalternativeof
A$4.40pershare,butwasquicklyturneddownbyAsciano
basedonvaluation,followedbyacommentthatany
successfulproposalwouldhavetoofferasignificantcontrol
premiumaswellassufficientlyvaluingthecompany’s
“unique”assetportfolio.
• Analystsnowbelievethatanysuccessfulbidderforthe
companywouldlikelyneedtopayuptoA$7.30ashare,
valuingthecompanyatA$4.8bn($4.4bn).Meanwhile,
HutchisonWhampoa,theHongKongbasedconglomerate,
andPSA,theSingaporebasedgroup,havealsosurfaced
aspotentialplayersintheexpectedupcomingbattlefor
Asciano.
Australia
1AllvaluesareinUSdollarsunlessotherwisespecified
Australia
Monthly M&A report – 73
Dealofthemonth
Target: MacarthurCoalLimited Announced: 1July2008
Bidder: POSCO Deal value: $407m
Seller: TalbotGroupHoldingsPtyLtd Deal nature: Recommended
• POSCO,thelistedSouthKoreabasedsteelmanufacturer,
hasagreedtoacquirea10%stakeinMacarthurCoal
Limited,thelistedAustraliancoalminingcompany,from
TalbotGroupHoldingsPtyLtd,theAustralianinvestment
vehicleofKenTalbotinvestingintheminingandenergy
sectors,foraconsiderationof$406.74m(A$424.31m)
• Asperthetermsoftheagreement,POSCOwillacquire
20,215,700sharesatanofferpriceofA$20($19.17)per
share.Theofferpricerepresentsapremiumof11.11%
overtheMacarthurclosingpriceofA$18pershare
($17.25)asof27June2008,onedaypriortothedateof
announcement,andapremiumof1.78%overtheclosing
priceofA$19.65($18.83)asof30May2007,onemonth
priortotheannouncementdate.
• Inarelatedtransaction,ArcelorMittalhasincreasedits
stakeinMacarthurCoalfrom14.9%to19.9%atA$
20pershare.Withthesetwotransactions,Macarthur
Coalwillbeinapositiontoenhancethepotentialofits
projectsinordertodiversifyitscustomerbase.
• ThetransactionissubjecttoPoscoboardapproval.
Premium Analysis
Offerpricepershare($) 19.17
1daybefore 11.11%
1monthbefore 1.78%
1dayafter 18.55%
Pre-rumor 2.59%
Advisers
Target/Seller Bidder
Financial Financial MerrillLynch
Legal Legal -
PR PR -
mergermarket/dealReporter Intellegence
30-Jul-08 ArcelorMittalwillnotupstakeinMacarthurCoal
25-Jun-08 MacarthurCoal:POSCOplansfundraisingasitreviewsstakepurchase,Xstratanotinterested
13-Jun-08 MacarthurCoal:ArcelorMittalstillonlybiddershowinghand,noformalproposalyet
28-May-08 MacarthurCoal:CITICResourcesalong-termholder,spokespersonsays
Australia
Monthly M&A report – 74
Top 15 Australian announced deals for YTD 31 July 2008Announced Status Target company Sector Bidder company Seller company Exit multiples (x) Bid premia
1-day beforeDeal value
($m)Revenue EBITDA P/E
13-May-08 P StGeorgeBankLtd FinancialServices
WestpacBankingCorporation
n/a n/a 16.4 29.6% 17,936
24-Jun-08 P OriginEnergyLimited Energy,Mining&Utilities
BGGroupPlc 3.0 15.2 40.5 -0.1% 15,756
3-Mar-08 C ZinifexLtd Energy,Mining&Utilities
OxianaLimited 2.3 3.3 8.3 13.9% 3,817
11-Mar-08 C DynoNobelLimited(87%stake)
Industrials&Chemicals
IncitecPivotLtd 2.0 20.5 61.8 19.4% 2,468
4-Feb-08 C StellaGroup(65%stake)
Leisure CVCAsiaPacificLtd OctaviarLimited 5.4 21.1 - 1,101
20-Mar-08 C EquigoldNL Energy,Mining&Utilities
LihirGoldLimited 10.5 19.2 31.7 24.0% 962
14-Mar-08 C MidwestCorporationLtd(80.31%stake)
Energy,Mining&Utilities
SinosteelCorporation
34.7 (loss) (loss) 34.9% 879
31-Mar-08 C JustGroupLimited(99.1%stake)
Consumer PremierInvestmentsLimited
1.2 8.1 14.4 14.1% 815
18-Jan-08 C TenixDefencePtyLtd
Defence BAESystemsplc TheTenixGroup 1.1 14.3 - 682
4-Jul-08 C UranquintyPowerStation
Energy,Mining&Utilities
OriginEnergyLimited
Babcock&BrownPowerLtd
- 673
19-Jun-08 C TransurbanGroup(10%stake)
Construction CanadaPensionPlanInvestmentBoard
14.3 17.4 (loss) 1.5% 627
1-Feb-08 C QueenslandGasCompanyLtd(9.90%stake);andQueenslandGasCompanyLtd(coalseamgasassetsintheSurat)(20%stake)
Energy,Mining&Utilities
BGGroupPlc - 601
16-May-08 P RidleyCorporationLimited
Consumer GrainCorpLtd 0.5 9.0 19.8 13.2% 566
31-Mar-08 C AEDOilLimited(assetsincl.PuffinandTalbotfields)(60%stake)
Energy,Mining&Utilities
SinopecInternationalPetroleumExplorationandProductionCorporation
AEDOilLimited - 561
21-Jul-08 P SymbionCPHoldingsPtyLimited
Consumer Sanofi-AventisSA SymbionHealthLimited
2.9 - 547
C=Completed;P=Pending;L=Lapsed Source:mergermarket
Topdeals
Australia
Monthly M&A report – 75
Top 5 Australian announced deals of the month (July 2008)Announced Status Target company Sector Bidder company Seller company Exit multiples (x) Bid premia
1-day beforeDeal value
($m)Revenue EBITDA P/E
4-Jul-08 C UranquintyPowerStation
Energy,Mining&Utilities
OriginEnergyLimited
Babcock&BrownPowerLtd
- 673
21-Jul-08 P SymbionCPHoldingsPtyLimited
Consumer Sanofi-AventisSA SymbionHealthLimited
2.9 - 547
1-Jul-08 C MacarthurCoalLimited(10%stake)
Energy,Mining&Utilities
POSCO TalbotGroupHoldingsPtyLtd
11.1% 407
18-Jul-08 C EcogenEnergyLimited(73%stake)
Energy,Mining&Utilities
IndustryFundsManagementPtyLtd
Babcock&BrownPowerLtd
- 175
23-Jul-08 P MitchellDrillingCorporation
Energy,Mining&Utilities
AJLucasGroupLimited
- 147
C=Completed;P=Pending;L=Lapsed Source:mergermarket
Topdeals
Australia
Monthly M&A Report – 76
Pipeline of Australian expected dealsSituation Target company Sector Potential bidder
companyFinancial adviser to bidder (B); target (T); seller (S)
Seller company
Market cap
est. value ($m)
Comments
RumouredTakeoverTarget
SantosLtd Energy,Mining&Utilities
9,306 Santos,theAustralianlistedenergycompanyannouncedthatitisatapreliminarystageofconsideringvariouspotentialstrategicinitiatives.
Expecteddeal FelixResources Energy,Mining&Utilities
XstrataPlc Citigroup(T);WilsonHTMCorporateFinance(T)
3,537 FelixResources,theAustralianlistedcoalminer,hasreceivedseveraltakeoverapproachesandallowedsomepartiestoundertakelimitedduediligence.
Expecteddeal AscianoGroup Transport TPGCapital;GlobalInfrastructurePartners;HutchisonWhampoaLimited;andPSA
CreditSuisse(B)
2,978 Ascianohasreceivedanunsolicitednon-bindingindicativeproposalfromTPGCapitalandGlobalInfrastructurePartnertoacquire100%oftheissuedsecuritiesofthecompany.TheproposalincludesacashalternativeofA$4.40perAscianosecurity.
Expecteddeal MirvacGroup FinancialServices
LendLeaseCorporationLimited;andNakheelGroup
2,952 LendLease,theAustralian-listedpropertygroup,hasbeenrumouredtoteamupwithStockland,theAustralian-listedpropertygroup,tomakeabidforMirvac,theAustralian-listedpropertygroup.Meanwhile,MirvacGrouphasconfirmedastrategicpartnershipwithNakheel,theDubai-baseddeveloper,viaaA$300mplacement.
RumouredTakeoverTarget
Babcock&Brown FinancialServices
KohlbergKravisRoberts;andHSBC
1,969 Babcock&BrownisrumoredtobethepotentialtakeovertargetofKohlbergKravisRobertsandHSBC.B&Bishighlyindebtandhasseenitssharesplummetingoverthepast12months,makingitanattractivetargetforKKR,whomareseekinginvestmentopportunitiesforitsnewlyestablishedinternationalinfrastructurefund.
Expecteddeal FKPLimited FinancialServices
LendLeaseCorporationLimited
1,195 FKPPropertyGrouphasbeenapproachedbyLendLeaseCorporationLimitedwithanunsolicited,highlyconditional,andincompleteproposaltoacquireallofthesecuritiesinFKPforA$5.00perFKPsecurityforamixtureofLLCscripandcash.TheFKPBoardhassofarrejectedtooffer.
Expecteddeals
Australia
Monthly M&A report – 77
Situation Target company Sector Potential bidder company
Financial adviser to bidder (B); target (T); seller (S)
Seller company
Market cap
est. value ($m)
Comments
Expecteddeal AustralasianResourcesLimited
Energy,Mining&Utilities
ResourceDevelopmentInternational
BDOKendallsCorporate(T);RCCapitalAdvisers(T);MacquarieGroup(B);UBS(B)
533 AustralasianResourcesLimited,thelistedAustralianironorecompanyhasreceivedaproposalfromResourceDevelopmentInternationalLtdregardingamergerofthetwocompanies
RumouredTakeoverTarget
CapeLambertIronOreLimited
Energy,Mining&Utilities
MerrillLynch(B)
292 CapeLambertisseenasatakeovertargetofEvrazGroup,theRussiangrouprunbyRomanAbramovich.EvrazwascalleduponbyCapeLambertforpreventingChinaMetallurgicalGroupfrombuyingCapeLambert’s$388mironoreproject.MerrillLynchrecentlylodgedasubstantialshareholdernoticereflectinga16%stakeinCapeLambertonbehalfofEvraz.
Expecteddeal AustralianPharmaceuticalIndustries
Pharma,Medical&Biotech
Citibank(T) 234 AustralianPharmaceuticalIndustries,theAustralia-listedpharma,wouldwaittheoutcomeoftakeovermovesaroundlistedpeerSymbionbeforetalkingaboutoptionsforfurtherconsolidation.
Expecteddeal FuntasticLimited Consumer ArcherCapitalconsortium
MinterEllison(T);Ernst&Young(T)
ABCLearningCentresLimited
100 TrustCompanyhasconfirmedthatitisinpreliminarydiscussionswithEquityTrusteesregardingapossiblemerger.Theboardofdirectorsisyettoconsideraproposalnorhavethepartiescommencedanyduediligence.
Source:mergermarke
Expecteddeals
Australia
Monthly M&A report – 78
Leaguetables
valueYTD
31-Jul-08House Value
($m)Deal
count
1 MorganStanley 219,014 9
2 UBS 217,330 14
3 DeutscheBank 213,896 6
4 MacquarieGroup 211,844 20
5 GreshamAdvisoryPartners 207,617 8
6 GoldmanSachs 207,527 6
7 Lazard 202,152 5
8 Citigroup 198,074 8
9 CreditSuisse 194,083 5
10 JPMorgan 192,035 7
11 MerrillLynch 191,984 6
12 ABNAMRO 191,412 4
13 Rothschild 191,130 5
14 BNPParibas 190,809 2
15 HSBCBank 190,344 1
Source:mergermarket
volume
Thefinancialadviserleaguetablesbyvalueandvolumehavebeenrunfrom01January2008to31July2008andexcludelapsedandwithdrawndeals.Thetablescoverallsectorsandarebasedonthegeographyofeitherthetarget,bidderorsellerbeingAustralia
YTD31-Jul-08
House Value ($m)
Deal count
1 MacquarieGroup 211,844 20
2 UBS 217,330 14
3 KPMGCorpFin 1,454 13
4 PricewaterhouseCoopersCorpFin 1,903 11
5 MorganStanley 219,014 9
6 Deloitte 1,389 9
7 GreshamAdvisoryPartners 207,617 8
8 Citigroup 198,074 8
9 JPMorgan 192,035 7
10 CaliburnPartnership 24,493 7
11 DeutscheBank 213,896 6
12 GoldmanSachs 207,527 6
13 MerrillLynch 191,984 6
14 Lazard 202,152 5
15 CreditSuisse 194,083 5
Source:mergermarket
Top 15 financial adviserss
valueYTD
31-Jul-08House Value
($m)Deal
count
1 AllensArthurRobinson 218,417 22
2 Allen&Overy 213,216 4
3 Linklaters 213,107 3
4 Freehills 212,515 33
5 BlakeDawson 194,159 25
6 Sullivan&Cromwell 193,232 3
7 SkaddenArpsSlateMeagher&Flom 191,957 5
8 Lovells 190,751 3
9 DaviesWardPhillips&Vineberg 190,591 2
10 JohnsonWinter&Slattery 190,524 4
11= CravathSwaine&Moore 190,344 1
11= HerbertSmith/GleissLutz/Stibbe 190,344 1
11= McCarthyTetrault 190,344 1
11= SlaughterandMay 190,344 1
15 MallesonsStephenJaques 24,473 39
Source:mergermarket
volume
Thelegaladviserleaguetablesbyvalueandvolumehavebeenrunfrom01January2008to31July2008andincludelapsedandwithdrawndeals.Thetablescoverallsectorsandarebasedonthegeographyofeitherthetarget,bidderorsellerbeingAustralia
YTD31-Jul-08
House Value ($m)
Deal count
1 MallesonsStephenJaques 24,473 39
2 Freehills 212,515 33
3 BlakeDawson 194,159 25
4 MinterEllison 2,862 23
5 AllensArthurRobinson 218,417 22
6 Deacons 2,641 20
7 CorrsChambersWestgarth 3,750 17
8 Baker&McKenzie 2,475 17
9 DLAPiper 968 10
10 ClaytonUtz 21,142 8
11 Gilbert+Tobin 19,063 8
12 JonesDay 472 7
13 McCulloughRobertson 348 7
14 CochraneLishman 1,977 6
15 SkaddenArpsSlateMeagher&Flom 191,957 5
Source:mergermarket
Top 15 Legal advisers
Australia
Monthly M&A report – 79
Leaguetables
value
value
YTD31-Jul-08
House Value ($m)
Deal count
1 CVCCapitalPartners 1,101 1
2 IronbridgeCapital 448 2
3 CrosbyAssetManagement 410 1
4 ANZPrivateEquity 363 2
5 AMPCapitalInvestors 269 1
6 HastingsFundsManagement 260 1
7 GreshamPrivateEquity 186 1
8 IndustryFundsManagement 175 1
9 QuadrantPrivateEquity 93 1
10 SentientGlobalResources 35 1
Source:mergermarket
YTD31-Jul-08
House Value ($m)
Deal count
1 CHAMPPrivateEquity 416 1
2 QuadrantPrivateEquity 103 1
3 ArcherCapital 73 1
4= DirectCapitalPrivateEquity 31 1
4= WatermanHoldings 31 1
Source:mergermarket
volume
volume
TheprivateequitybuyoutactivitytablesbyvalueandvolumearebasedonprivateequityfirmsadvisingthebidderonbuyoutdealswherethedominantgeographyofthetargetcompanyisAustraliaThetablesbyvalueandvolumehavebeenrunfrom01January2008to31July2008andexcludelapsedandwithdrawndeals
TheprivateequityexitactivitytablesbyvalueandvolumearebasedonprivateequityfirmsadvisingthevendoronexitdealswherethedominantgeographyofthetargetcompanyisAustraliaThetablesbyvalueandvolumehavebeenrunfrom01January2008to31July2008andexcludelapsedandwithdrawndeals
YTD31-Jul-08
House Value ($m)
Deal count
1 IronbridgeCapital 448 2
2 ANZPrivateEquity 363 2
3 CVCCapitalPartners 1,101 1
4 CrosbyAssetManagement 410 1
5 AMPCapitalInvestors 269 1
6 HastingsFundsManagement 260 1
7 GreshamPrivateEquity 186 1
8 IndustryFundsManagement 175 1
9 QuadrantPrivateEquity 93 1
10 SentientGlobalResources 35 1
Source:mergermarket
YTD31-Jul-08
House Value ($m)
Deal count
1 CHAMPPrivateEquity 416 1
2 QuadrantPrivateEquity 103 1
3 ArcherCapital 73 1
4= DirectCapitalPrivateEquity 31 1
4= WatermanHoldings 31 1
Source:mergermarket
Activity table of private equity firms on Australian buyouts
Activity table of private equity firms on Australian buyouts
Australia
Monthly M&A report – 80
TrendGraphs
Australian M&A quarterly trends
value volume
Movingaveragetrendline
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40000
45,000
Q32008*
Q2 2008
Q1 008
Q4 2007
Q32007
Q2 2007
Q12007
Q4 2006
Q3 2006
Q22006
Q1 2006
Q4 2005
Q3 2005
Q22005
Q12005
Q4 2004
Q3 2004
Q2 2004
Q12004
Q42003
Q32003
Q2 2003
Q12003
valu
e ($
m)
0
20
40
60
80
100
120
140
160
180
Q32008*
Q22008
Q12008
Q42007
Q32007
Q2 2007
Q12007
Q42006
Q32006
Q2 2006
Q1 2006
Q42005
Q3 2005
Q22005
Q1 2005
Q4 2004
Q3 2004
Q2 2004
Q1 2004
Q4 2003
Q3 2003
Q22003
Q12003
num
ber
of d
eals
Australian M&A quarterly private equity trends
value volume
0
2,000
4,000
6,000
8,000
10,000
12000
14,000
Q3 2008*
Q22008
Q1 2008
Q42007
Q3 2007
Q22007
Q1 007
Q 2006
Q3 2006
Q2 2006
Q1 2006
Q4 2005
Q3 2005
Q2 2005
Q1 2005
Q4 2004
Q32004
Q2 2004
Q1 2004
Q4 2003
Q3 2003
Q22003
Q12003
valu
e ($
m)
Australia buyouts
Australia exits
0
5
10
15
20
25
Q32008*
Q2 2008
Q12008
Q42007
Q32007
Q22007
Q1 2007
Q4 2006
Q32006
Q2 2006
Q12006
Q42005
Q3 2005
Q2 2005
Q1 2005
Q4 2004
Q3 2004
Q22004
Q12004
Q42003
Q3 2003
Q2 2003
Q12003
num
ber
of d
eals
Australia buyouts
Australia exits
Australia
Monthly M&A report – 81
Trendgraphs
Australian M&A Annual Trends
value volume
0
20
40
60
80
100
2008 YTD20072006200520042003
valu
e ($
bn)
All Australia M&A
Australia buyouts
Australia exits
t
0
100
200
300
400
500
2008 YTD20072006200520042003
num
ber
of d
eals
All Australia M&A
Australia buyouts
Australia exits
Australian M&A Sector Breakdown YTD 2008
value volume
Energy, Mining & Utilities
Business services
Consumer
Industrials & Chemicals
Financial services
TMT
Pharma, Medical & Biotech
Leisure
Transport
Construction
Defence
Agriculture
31.5%
3.2%0.9%
1.2%48%
1.3%
1.1%1.3%
1.4%5.1%
1.4%
Energy, Mining & Utilities
Business Services
Consumer
Industrials & Chemicals
Financial services
TMT
Pharma, Medical & Biotech
Leisure
Transport
Construction
Defence
Agriculture
9.8%
6.5%
9.3%
5.6%
5.1%
0.9%
14%
20.6%
12.1%
10.3%
4.2%
1.4%
Australia
Monthly M&A report – 82
Mid-marketdeals
Top 10 Australian announced mid market deals for YTD 31 July 2008 ($10mto$250m)Announced Status Target company Sector Bidder company Seller company Exit Multiples (x) Bid premia
1-day before
Deal value($m)Revenue EBITDA P/E
16-Jun-08 P AnzonEnergyLtd Energy,Mining&Utilities
RocOilCompanyLimited
2.7 4.6 4.8 36.6% 244
17-Mar-08 C ConnectEastGroup(14.79%stake)
Transport JohnHollandInfrastructureNomineesPtyLtd;andThiessInfrastructureNomineesPtyLtd
(loss) (loss) -7.3% 240
16-Jun-08 P AnzonAustraliaLimited(48%stake)
Energy,Mining&Utilities
RocOilCompanyLimited
2.9 23.3 5.4 26.4% 231
21-May-08 P BandannaCoalPtyLtd
Energy,Mining&Utilities
EnterpriseEnergyLimited
ResolveGeoPtyLtd - 226
8-Feb-08 P Suncorp-MetwayLtd(creditcardportfolio)
FinancialServices
CitibankAustralia Suncorp-MetwayLtd n/a n/a - 206
30-Jun-08 P MacarthurCoalLimited(5%stake)
Energy,Mining&Utilities
ArcelorMittal TalbotGroupHoldingsPtyLtd
13.2 48.9 62.9 11.1% 204
29-Jan-08 C MineralSecuritiesLimited
Energy,Mining&Utilities
CopperCoLtd. 35.8 (loss) (loss) 2.1% 199
30-May-08 C GoreyandColeDrillersPtyLtd;NudrillPtyLtd;andSidesDrillingContractorsPtyLtd
Energy,Mining&Utilities
IronbridgeFundII - 191
10-Apr-08 C BunkerFreightLinesPtyLtd;Doolan'sHeavyHaulage;HoffmanTransportInc;KaganLogistics;andWAFreightGroup
Transport GreshamPrivateEquity
- 186
4-Apr-08 P CracowMining(70%stake)
Energy,Mining&Utilities
Beadell(Cracow)PtyLtd
NewcrestMiningLimited
- 181
C=Completed;P=Pending;L=Lapsed Source:mergermarket
Australia
Monthly M&A report – 83
Australian M&A quarterly Mid-market trend
value volume
0
1,000
2,000
3,000
4,000
5,000
6,000
Q32008*
Q2 2008
Q12008
Q42007
Q32007
Q22007
Q12007
Q4 2006
Q3 2006
Q22006
Q1 2006
Q4 2005
Q3 005
Q2 2005
Q12005
Q42004
Q32004
Q22004
Q12004
Q42003
Q3 2003
Q2 2003
Q12003
valu
e ($
m)
0
10
20
30
40
50
60
70
80
90
100
Q3 2008*
Q22008
Q12008
Q42007
Q32007
Q2 007
Q12007
Q42006
Q3 2006
Q2 2006
Q1 2006
Q42005
Q32005
Q22005
Q12005
Q42004
Q32004
Q2 2004
Q1 2004
Q4 2003
Q32003
Q2 2003
Q12003
num
ber
of d
eals
Movingaveragetrendline
Mid-marketdeals
Australia
Monthly M&A report – 84
Top 10 Australian announced mid market deals for July 2008($10mto$250m)
Announced Status Target company Sector Target/seller financial adviser
Target/seller legal adviser
Bidder company
Bidder financial adviser
Bidder legal adviser
Seller company Deal Value(€m)
18/07/2008 C EcogenEnergy
Limited(73%stake)
Energy,Mining
&Utilities
IndustryFunds
Management
PtyLtd
AllensArthur
Robinson
Babcock&Brown
PowerLtd
175
23/07/2008 P MitchellDrilling
Corporation
Energy,Mining
&Utilities
McCullough
Robertson
AJLucasGroup
Limited
147
28/07/2008 P StrikeResourcesLtd
(30.3%stake)
Energy,Mining
&Utilities
Cochrane
Lishman
Gallagher
HoldingsLtd
Blake
Dawson
99
01/07/2008 C HansonBuilding
ProductsPtyLtd
Construction AdelaideBrighton
Limited
Hansonplc 77
01/07/2008 P CorbettLifeScience
PtyLtd
Pharma,
Medical&
Biotech
QIAGENN.V. 70
01/07/2008 P AnzpacServices
(Australia)PtyLtd
Industrials&
Chemicals
NewToyo
International
HoldingsLtd;and
TienWahPress
HoldingsBerhad
AmInvestmentBank
Berhad;PMSecurities
SdnBhd
BritishAmerican
Tobacco(Australia)
Ltd.
57
07/07/2008 C MulgraveCentral
MillCoLtd
Agriculture GrantThornton
Corporate
Finance
TheMaryborough
SugarFactory
Limited
M&AInternational;
PricewaterhouseCoopers
CorpFin
Mallesons
Stephen
Jaques
56
09/07/2008 C ExtraTransport
GroupPtyLtd
Transport EGACorporate
Advisers
Clarendon
Lawyers
TollTransport
PtyLtd
MinterEllison 43
23/07/2008 P Sports&Outdoor
MediaPtyLtd
TMT OohmediaGroup
Limited
39
07/07/2008 C BuxtonGroup
(boutiqueRylands
retirementvillage
business)
Financial
Services
Stockland
Corporation
Limited
Internal Internal BuxtonGroup 33
C=Completed;P=Pending;L=Lapsed Source:mergermarket
Mid-marketdeals
Australia
Monthly M&A report – 85
Mid-marketleaguetables
YTD31-Jul-08
House Value ($m)
Deal count
Value:
1 MacquarieGroup 1,466 12
2 Deloitte 877 7
3 JPMorgan 547 4
4 GreshamAdvisoryPartners 541 3
5 KPMGCorpFin 486 7
6 MorganStanley 431 2
7 Citigroup 419 3
8 UBS 334 2
9 Rothschild 306 3
10 MerrillLynch 303 3
Volume:
1 MacquarieGroup 1,466 12
2 Deloitte 877 7
3 KPMGCorpFin 486 7
6 JPMorgan 547 4
4 GreshamAdvisoryPartners 541 3
5 Citigroup 419 3
7 Rothschild 306 3
8 MerrillLynch 303 3
9 PricewaterhouseCoopersCorpFin 278 3
10 KidderWilliams 225 3
Source:mergermarket
Thefinancialadviserleaguetablesbyvalueandvolumehavebeenrunfrom01January2008to31July2008andexcludelapsedandwithdrawndeals.Thetablescoverallsectorsandarebasedonthegeographyofeitherthetarget,bidderorsellerbeingAustralia
Top 10 Mid-market financial adviserss – Australia ($10mto$250m)
YTD31-Jul-08
House Value ($m)
Deal count
Value:
1 MallesonsStephenJaques 1,893 23
2 AllensArthurRobinson 1,436 10
3 Freehills 1,099 14
4 MinterEllison 1,018 13
5 CorrsChambersWestgarth 839 7
6 Deacons 630 11
7 Baker&McKenzie 543 8
8 BlakeDawson 506 10
9 JonesDay 466 3
10 McCulloughRobertson 340 4
Volume:
1 MallesonsStephenJaques 1,893 23
2 Freehills 1,099 14
3 MinterEllison 1,018 13
4 Deacons 630 11
5 AllensArthurRobinson 1,436 10
6 BlakeDawson 506 10
7 Baker&McKenzie 543 8
8 CorrsChambersWestgarth 839 7
9 McCulloughRobertson 340 4
10 Gilbert+Tobin 177 4
Source:mergermarket
Thelegaladviserleaguetablesbyvalueandvolumehavebeenrunfrom01January2008to31July2008andincludelapsedandwithdrawndeals.Thetablescoverallsectorsandarebasedonthegeographyofeitherthetarget,bidderorsellerbeingAustralia
Top 10 Mid-market legal adviserss – Australia ($10mto$250m)
Monthly M&A report – 86
Top 15 European announced deals for YTD 31 July 2008Announced Status Target company Sector Bidder company Seller company Exit multiples (x) Bid
premia1-day before
Deal value(€m)Revenue EBITDA P/E
06-Feb-08 P Rio Tinto plc Energy, Mining & Utilities
BHP Billiton Ltd 6.4 17.8 19.4 3.2% 130,061
30-Jan-08 C Philip Morris International Inc Consumer Altria Group Inc (Shareholders)
Altria Group Inc 2.0 11.5 18.0 - 71,922
31-Jul-08 P Union Fenosa SA Energy, Mining & Utilities
Gas Natural SDG SA
3.8 11.1 17.0 15.0% 22,839
15-Jul-08 P Continental AG (97.03% stake) Industrials & Chemicals
Schaeffler KG 1.4 9.1 10.8 6.6% 22,225
25-Jan-08 C Scottish & Newcastle plc Consumer Carlsberg A/S; and Heineken NV
3.2 22.6 22.7 4.4% 13,007
01-Feb-08 C Rio Tinto plc (12% stake) Energy, Mining & Utilities
Alcoa Inc; and Aluminum Corporation of China
5.4 14.9 20.5 21.1% 9,458
07-Apr-08 C Alcon Inc (24.85% stake) Pharma, Medical & Biotech
Novartis AG Nestle SA 7.0 18.6 25.3 -3.5% 6,746
31-Mar-08 C Vin & Sprit AB Consumer Pernod-Ricard SA
Government of Sweden
5.1 23.3 33.9 - 5,626
11-Jun-08 P Landesentwicklungsgesellschaft Nordrhein-Westfalen
Financial Services
The Whitehall Funds
Federal State of Nordrhein-Westfalen
n/a n/a - 5,585
15-Apr-08 C Neuf Cegetel SA (60.32% stake) TMT SFR SA Louis Dreyfus & Cie SA
2.6 11.8 29.0 0.8% 5,558
11-Jul-08 P Citibank Privatkunden AG & Co KGaA
Financial Services
Credit Mutuel SA Citigroup Inc n/a n/a 13.4 - 4,900
17-Apr-08 C KM Invest ZAO (50% stake) Financial Services
Interros Company
Onexim Group n/a n/a - 4,641
12-Jun-08 P Angel Trains Limited Financial Services
Access Capital Advisers; AMP Capital Investors Limited; Babcock & Brown; and Deutsche Bank AG
Royal Bank of Scotland Group plc
- 4,539
24-Jul-08 P E.On Sverige AB (44.60% stake); and Statkraft AS (Swedish hydropower plant)
Energy, Mining & Utilities
E.ON AG Statkraft AS - 4,500
29-May-08 P Distrigaz SA Energy, Mining & Utilities
Eni G&P Belgium SpA
Suez SA 0.9 8.9 16.3 8.3% 4,052
C = Completed; P = Pending; L = Lapsed Source: mergermarket
EuropeEurope
Europe
Monthly M&A report – 87
Top 5 European announced deals of the month (July 2008)Announced Status Target company Sector Bidder company Seller company Exit multiples (x) Bid
premia1-day before
Deal value(€m)Revenue EBITDA P/E
31-Jul-08 P Union Fenosa SA Energy, Mining & Utilities
Gas Natural SDG SA
3.8 11.1 17.0 15.0% 22,839
15-Jul-08 P Continental AG (97.03% stake) Industrials & Chemicals
Schaeffler KG 1.4 9.1 10.8 6.6% 22,225
11-Jul-08 P Citibank Privatkunden AG & Co KGaA
Financial Services
Credit Mutuel SA Citigroup Inc n/a n/a 13.4 - 4,900
24-Jul-08 P E.On Sverige AB (44.60% stake); and Statkraft AS (Swedish hydropower plant)
Energy, Mining & Utilities
E.ON AG Statkraft AS - 4,500
03-Jul-08 Vasakronan Financial Services
AP Fastigheter AB Government of Sweden
n/a n/a 5.3 - 3,990
C = Completed; P = Pending; L = Lapsed Source: mergermarket
Top deals
Europe
Monthly M&A report – 88
League tables
value
YTD 31-Jul-2008
House Value (€m)
Deal count
1 Deutsche Bank 347,992 69
2 JPMorgan 335,086 79
3 Goldman Sachs 330,901 58
4 Citigroup 303,156 58
5 UBS 268,866 84
6 Credit Suisse 250,872 62
7 Merrill Lynch 221,651 67
8 Lazard 217,051 62
9 BNP Paribas 207,064 40
10 Morgan Stanley 204,021 56
11 Rothschild 174,075 117
12 ABN AMRO 173,383 44
13 HSBC Bank 161,043 22
14 Lehman Brothers 145,211 35
15 SG 142,789 18
16 Macquarie Group 140,936 10
17 Gresham Advisory Partners 140,183 3
18 Centerview Partners 71,922 1
19 Moelis & Company 37,253 2
20 Mediobanca 32,113 25
Source: mergermarket
YTD 31-Jul-2008
House Value (€m)
Deal count
1 Linklaters 265,308 125
2 Allen & Overy 262,543 106
3 McCarthy Tetrault 210,071 10
4 Sullivan & Cromwell 203,122 27
5 Skadden Arps Slate Meagher & Flom 183,948 31
6 Herbert Smith/Gleiss Lutz/Stibbe 162,044 55
7 Slaughter and May 147,810 32
8 Cravath Swaine & Moore 146,897 11
9 Freehills 141,265 11
10 Clifford Chance 140,126 129
11 Lovells 139,231 48
12 Davies Ward Phillips & Vineberg 131,240 3
13 Allens Arthur Robinson 130,956 9
14 Blake Dawson 130,702 5
15 Johnson Winter & Slattery 130,061 1
16 Freshfields Bruckhaus Deringer 115,674 126
17 Gibson Dunn & Crutcher 77,266 13
18 Hunton & Williams 71,928 2
19 Sutherland Asbill & Brennan 71,922 1
20 Latham & Watkins 59,129 37
Source: mergermarket
YTD 31-Jul-2008
House Value (€m)
Deal count
1 Rothschild 174,075 117
2 Deloitte 6,159 109
3 KPMG Corp Fin 5,971 97
4 PricewaterhouseCoopers Corp Fin 12,628 93
5 Ernst & Young 16,201 87
6 UBS 268,866 84
7 JPMorgan 335,086 79
8 Deutsche Bank 347,992 69
9 Merrill Lynch 221,651 67
10 Credit Suisse 250,872 62
11 Lazard 217,051 62
12 Goldman Sachs 330,901 58
13 Citigroup 303,156 58
14 Morgan Stanley 204,021 56
15 ABN AMRO 173,383 44
16 BNP Paribas 207,064 40
17 Lehman Brothers 145,211 35
18 BDO Corporate Finance 374 33
19 Close Brothers Group 2,604 31
20 M&A International 780 30
Source: mergermarket
YTD 31-Jul-2008
House Value (€m)
Deal count
1 Clifford Chance 140,126 129
2 Freshfields Bruckhaus Deringer 115,674 126
3 Linklaters 265,308 125
4 Allen & Overy 262,543 106
5 DLA Piper 3,319 86
6 CMS 7,005 75
7 White & Case 29,367 71
8 Eversheds 2,557 66
9 Jones Day 7,762 61
10 Baker & McKenzie 6,836 60
11 Herbert Smith/Gleiss Lutz/Stibbe 162,044 55
12 Lovells 139,231 48
13 Vinge 29,438 48
14 Ashurst 29,830 47
15 Mannheimer Swartling 3,514 46
16 Cleary Gottlieb Steen & Hamilton 42,250 45
17 SJ Berwin 4,109 40
18 Osborne Clarke 2,624 40
19 Pinsent Masons 1,336 40
20 Latham & Watkins 59,129 37
Source: mergermarket
volume
The financial adviser league tables by value and volume have been run from 01 January 2008 to 31 July 2008 and exclude lapsed and withdrawn deals. The tables cover all sectors andare based on the geography of either the target, bidder or seller being Europe
Top 20 financial advisers - Europe
value volume
The legal adviser league tables by value and volume have been run from 01 January 2008 to 31 July 2008 and include lapsed and withdrawn deals. The tables cover all sectors andare based on the geography of either the target, bidder or seller being Europe
Top 20 legal advisers - Europe
Europe
Monthly M&A report – 89
League tables
value volume
The private equity buyout activity tables by value and volume are based on private equity firms advising the bidder on buyout deals where the dominant geography of the target company is EuropeThe tables by value and volume have been run from 01 January 2008 to 31 July 2008 and exclude lapsed and withdrawn deals
Activity table of private equity firms on European buyouts
value volume
The private equity exit activity tables by value and volume are based on private equity firms advising the vendor on exit deals where the dominant geography of the target company is EuropeThe tables by value and volume have been run from 01 January 2008 to 31 July 2008 and exclude lapsed and withdrawn deals
Activity table of private equity firms on European exits
YTD 31-Jul-2008
House Value (€m)
Deal count
1 The Whitehall Funds 5,585 1
2 AMP Capital Investors 5,415 2
3 GS Capital Partners 5,061 4
4 Babcock & Brown 4,802 4
5 CVC Capital Partners 3,285 2
6 AlpInvest Partners 2,437 2
7 Candover Partners 2,437 1
8 Barclays Private Equity 2,390 6
9 DeA Capital 2,192 2
10 Apax Partners 2,125 4
11 Turkven Private Equity 2,120 2
12 BC Partners 2,120 1
13= Global Infrastructure Partners 2,107 1
13= Montagu Private Equity 2,107 1
13= UCIL 2,107 1
Source: mergermarket
YTD 31-Jul-2008
House Value (€m)
Deal count
1 Investor 2,863 1
2 Barclays Private Equity 2,741 4
3 Canica 2,700 1
4 Marfin Investment Group Holdings 2,549 1
5 3i Group 2,400 24
6 Permira 1,631 1
7 Ventizz Capital Partners Advisory 1,179 1
8 Wendel Investissement 1,026 1
9= Compagnie Nationale a Portefeuille / Nationale Portefeuillemaatschappij
836 1
9= Eurazeo 836 1
9= Lehman Brothers Private Equity 836 1
9= One Equity Partners 836 1
13 Warburg Pincus 800 1
14 Bridgepoint Capital 792 3
15 EQT Partners 756 2
Source: mergermarket
YTD 31-Jul-2008
House Value
Deal count
1 The Whitehall Funds 5,585 1
2 AMP Capital Investors 5,415 2
3 GS Capital Partners 5,061 4
4 Babcock & Brown 4,802 4
5 CVC Capital Partners 3,285 2
6 AlpInvest Partners 2,437 2
7 Candover Partners 2,437 1
8 Barclays Private Equity 2,390 6
9 DeA Capital 2,192 2
10 Apax Partners 2,125 4
11 Turkven Private Equity 2,120 2
12 BC Partners 2,120 1
13= Global Infrastructure Partners 2,107 1
13= Montagu Private Equity 2,107 1
13= UCIL 2,107 1
Source: mergermarket
YTD 31-Jul-2008
House Value (€m)
Deal count
1 3i Group 2,400 24
2 Barclays Private Equity 2,741 4
3 LGV Capital 601 4
4 HgCapital 431 4
5 CapMan Group 50 4
6 Initiative et Finance 28 4
7 Bridgepoint Capital 792 3
8 Waterland Private Equity Investments 346 3
9 Lloyds TSB Development Capital 235 3
10 IK Investment Partners 226 3
11 BS Private Equity 200 3
12 ISIS Private Equity Partners 115 3
13 AtriA Capital Partenaires 73 3
14 LBO France 53 3
15 Argos Soditic 24 3
Source: mergermarket
Europe
Monthly M&A report – 90
Trend graphs
European M&A quarterly trend
value volume
Moving average trend line
0
50,000
100,000
150,000
200,000
250,000
300,000
350,000
400,000
450,000
Q3 2008*
Q22008
Q12008
Q42007
Q32007
Q22007
Q12007
Q42006
Q32006
Q22006
Q12006
Q42005
Q3 2005
Q22005
Q12005
Q42004
Q32004
Q22004
Q12004
Q42003
Q32003
Q22003
Q12003
valu
e (€
m)
0
200
400
600
800
1,000
1,200
1,400
1,600
1,800
Q3 2008*
Q22008
Q12008
Q4 2007
Q32007
Q22007
Q12007
Q42006
Q32006
Q22006
Q12006
Q42005
Q32005
Q22005
Q12005
Q42004
Q32004
Q22004
Q12004
Q42003
Q32003
Q22003
Q12003
num
ber
of d
eals
European M&A quarterly private equity trend
value volume
0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
90,000
100,000
Q3 2008*
Q22008
Q12008
Q42007
Q32007
Q22007
Q12007
Q42006
Q32006
Q22006
Q12006
Q42005
Q32005
Q22005
Q12005
Q42004
Q32004
Q22004
Q12004
Q42003
Q32003
Q22003
Q12003
valu
e (€
m)
European buyouts
European exits
0
50
100
150
200
250
300
350
400
Q3 2008*
Q22008
Q12008
Q42007
Q32007
Q22007
Q12007
Q42006
Q32006
Q22006
Q12006
Q42005
Q32005
Q22005
Q12005
Q42004
Q32004
Q22004
Q12004
Q42003
Q32003
Q22003
Q12003
num
ber
of d
eals
European buyouts
European exits
Europe
Monthly M&A report – 91
22.1%
5.9%
38.3%
1.8%
0.1%11.6%
0.7% 0.2%
2.8%
Industrials & Chemicals
Consumer
TMT
Business Services
Financial Services
Energy, Mining & Utilities
Construction
Pharma, Medical & Biotech
Leisure
Transportation
Agriculture
Defence
2.9%
12.2%
1.4%
Trend graphs
European M&A annual trends
value volume
0
200
400
600
800
1,000
1,200
2008 YTD20072006200520042003
valu
e (€
bn)
All European M&A
European buyouts
European exits
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
2008 YTD20072006200520042003
num
ber
of d
eals
All European M&A
European buyouts
European exits
European M&A sector breakdown YTD 2008
value volume
Industrials & Chemicals
Consumer
TMT
Business services
Financial services
Energy, Mining & Utilities
Construction
Pharma, Medical & Biotech
Leisure
Transportation
Agriculture
Defence
13.4%
10%
12.2%
7%
4.6%
5.9%
4.1%3.7%
0.8%0.3%
22.1%
15.9%
Industrials & Chemicals
Consumer
TMT
Business Services
Financial Services
Energy, Mining & Utilities
Construction
Pharma, Medical & Biotech
Leisure
Transport
Agriculture
Defence
Europe
Monthly M&A report – 92
Trend graphs
European M&A geographic breakdown YTD 2008
value volume
UK & Ireland
CEE
Nordic
Germany
France
Benelux
Italy
Iberia
SEE
Other
37.9%
8.4%
3.9%
4%
3.2%
15.5%
7.2%
10.3%
6.7%
3%
European M&A deal size breakdown
value volume
0
50
100
150
200
250
300
350
400
450
500
550
600
650
700
H22008*
H12008
H22007
H12007
H22006
H12006
H22005
H12005
H22004
H12004
H2 2003
H12003
valu
e (€
bn)
> €501m
€251m - €500m
€101m - €250m
€15m - €100m
€5m - €14.9m
0
500
1,000
1,500
2000
2,500
3,000
3,500
H22008*
H12008
H22007
H1 2007
H22006
H12006
H22005
H12005
H22004
H12004
H22003
H12003
num
ber
of d
eals
> €501m
€251m - €500m
€101m - €250m
€15m - €100m
€5m - €14.9m
Value not disclosed
UK & Ireland
CEE
Nordic
Germany
France
Benelux
Italy
Iberia
SEE
Other
25.4%
14%
11.5%9.8%
8.3%
6.8%
7.9%
7.2%
4.3%4.8%
Europe
Monthly M&A report – 93
Trend graphs
Transatlantic deals
value volume
0
20,000
40,000
60,000
80,000
100,000
120,000
Q3 2008*
Q22008
Q12008
Q42007
Q32007
Q22007
Q12007
Q42006
Q32006
Q22006
Q12006
Q42005
Q32005
Q22005
Q12005
Q42004
Q32004
Q22004
Q12004
Q42003
Q32003
Q22003
Q12003
valu
e (€
m)
Value deals European bidder acq North American target
Value deals Nth American bidder acq European target
Total Transatlantic activity
0
50
100
150
200
250
300
Q3 2008*
Q22008
Q12008
Q42007
Q32007
Q22007
Q12007
Q42006
Q32006
Q22006
Q12006
Q42005
Q32005
Q22005
Q12005
Q42004
Q32004
Q22004
Q12004
Q42003
Q32003
Q22003
Q12003
Num
ber
of d
eals
Value deals European bidder acq North American target
Value deals Nth American bidder acq European target
Total Transatlantic activity
Europe
Monthly M&A report – 94
Mid-market deals
Top 15 European announced mid-market deals of the month (July 2008) (€10m to €250m)
Announced Status Target company Sector Target/seller financial adviser
Target/seller legal adviser
Bidder company Bidder financial adviser
Bidder legal adviser
Seller company
Deal value(€m)
22-Jul-08 P Gunnebo Industrier AB
Industrials & Chemicals
Handelsbanken Capital Markets
Gernandt & Danielsson
Segulah Advisor AB
D. Carnegie & Co
Cederquist; Hammarskiold & Co (Advising Nordic Mezzanine)
250
07-Jul-08 P Clickair SA Transportation Lazard Allen & Overy; Freshfields Bruckhaus Deringer
Vueling Airlines SA
Lehman Brothers
Cobra ACS; Iberia Lineas Aereas de Espana SA; Nefinsa SA; Orizonia; and Quercus Equity SL
250
21-Jul-08 P CompAir UK Ltd Industrials & Chemicals
Rothschild Eversheds; Macfarlanes
Gardner Denver Inc
Internal Baker & McKenzie; Bowman Gilfillan; Pinsent Masons
Alchemy Partners
249
09-Jul-08 C Marathon Oil Corporation (Heimdal and related assets)
Energy, Mining & Utilities
Scotia Capital Centrica plc Marathon Oil Corporation
239
04-Jul-08 P Nord Anglia Education Plc
Business Services
Hawkpoint Partners
Addleshaw Goddard
Barings Private Equity Asia
UBS Clifford Chance
234
03-Jul-08 C Fluxys SA (12.50% stake)
Energy, Mining & Utilities
Bredin Prat Ecofin Limited Suez-Tractebel SA
228
04-Jul-08 P TDG Plc (78% stake)
Business Services
Rothschild Linklaters Laxey Partners Ltd
Mayer Brown 227
31-Jul-08 C Fotowatio SL (49.50% stake)
Energy, Mining & Utilities
Qualitas Equity Partners
Cuatrecasas - Goncalves Pereira, Castelo Branco
GE Energy Financial Services Inc; and Grupo Corporativo Landon SL
Allen & Overy; Garrigues
225
25-Jul-08 P Getronics PinkRoccade Nederland BV
Business Services
Capgemini SA Rabobank Clifford Chance; Latham & Watkins; Lazard
Getronics NV
225
30-Jul-08 C Sampletest-Consultoria e Gestao de Laboratorios Clinicas SA
Pharma, Medical & Biotech
Ambers & Co; Rothschild
Araoz & Rueda; Cuatrecasas - Goncalves Pereira, Castelo Branco
Labco Diagnostics Network
Atlas Capital Close Brothers
Mayer Brown; Rodes y Sala
3i Group Plc
220
21-Jul-08 P Galerias Primero Consumer Supermercados Sabeco SA
Caja de Ahorros de la Inmaculada de Aragon; and Nozar SA
200
02-Jul-08 C ZAO Spasskiye Vorota Insurance Group (75% stake)
Financial Services
Stolichnaya Strakhovaya Gruppa
194
Europe
Monthly M&A report – 95
Mid-market deals
Announced Status Target company Sector Target/seller financial adviser
Target/seller legal adviser
Bidder company Bidder financial adviser
Bidder legal adviser
Seller company
Deal value(€m)
09-Jul-08 P Banca Monte Parma Spa (49.27% stake)
Financial Services
Rothschild Gianni, Origoni, Grippo & Partners
Banca Sella Holding SpA; Cba Vita SpA; Fondazione di Piacenza e Vigevano; Fondazione Monte di Parma; and HDI Assicurazioni SpA
Studio Legale Avvocato Nicola Bianchi
Banca Monte dei Paschi di Siena SpA
192
28-Jul-08 P Utimaco Safeware AG
TMT Sophos Inc Deutsche Bank; UBS
Freshfields Bruckhaus Deringer (Advising Deutsche Bank)
Investcorp Technology Partners
185
01-Jul-08 P Metal Industry of Arcadia - C Rokas SA (47.30% stake)
Energy, Mining & Utilities
Iberdrola Renovables SA
Credit Suisse Group
Uria Menendez
174
Source: mergermarket
Europe
Monthly M&A report – 96
European M&A quarterly mid-market trend
value volume
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
45,000
Q3 2008*
Q22008
Q12008
Q42007
Q32007
Q22007
Q12007
Q42006
Q32006
Q22006
Q12006
Q4 2005
Q32005
Q22005
Q12005
Q42004
Q32004
Q22004
Q12004
Q42003
Q32003
Q22003
Q12003
valu
e (€
m)
0
100
200
300
400
500
600
700
Q3 2008*
Q22008
Q12008
Q42007
Q32007
Q22007
Q12007
Q42006
Q32006
Q22006
Q12006
Q42005
Q32005
Q22005
Q12005
Q42004
Q32004
Q22004
Q12004
Q42003
Q32003
Q22003
Q12003
num
ber
of d
eals
Moving average trend line
Mid-market deals
Europe
Monthly M&A report – 97
Mid-market league tables
YTD 31-Jul-2008
House Value (€m)
Deal count
value:
1 Rothschild 5,645 57
2 KPMG Corp Fin 3,231 46
3 Deloitte 3,206 43
4 Credit Suisse 3,036 22
5 PricewaterhouseCoopers Corp Fin 2,799 38
6 Lazard 2,777 29
7 Merrill Lynch 2,388 22
8 Morgan Stanley 2,347 18
9 UBS 2,272 16
10 Ernst & Young 2,192 34
11 JPMorgan 2,127 20
12 Citigroup 2,088 16
13 BNP Paribas 1,637 12
14 Close Brothers Group 1,515 18
15 ABN AMRO 1,354 16
volume:
1 Rothschild 5,645 57
2 KPMG Corp Fin 3,231 46
3 Deloitte 3,206 43
4 PricewaterhouseCoopers Corp Fin 2,799 38
5 Ernst & Young 2,192 34
6 Lazard 2,777 29
7 Credit Suisse 3,036 22
8 Merrill Lynch 2,388 22
9 JPMorgan 2,127 20
10 Morgan Stanley 2,347 18
11 Close Brothers Group 1,515 18
12 UBS 2,272 16
13 Citigroup 2,088 16
14 ABN AMRO 1,354 16
15 Mediobanca 1,062 13
Source: mergermarket
YTD 31-Jul-2008
House Value (€m)
Deal count
value:
1 Freshfields Bruckhaus Deringer 5,046 49
2 Clifford Chance 3,885 38
3 Linklaters 3,651 40
4 Allen & Overy 3,383 36
5 DLA Piper 2,739 49
6 Eversheds 2,505 37
7 Weil Gotshal & Manges 2,247 21
8 Baker & McKenzie 2,051 20
9 CMS 1,995 29
10 Norton Rose 1,938 21
11 Travers Smith 1,820 22
12 Herbert Smith/Gleiss Lutz/Stibbe 1,813 19
13 Cuatrecasas - Goncalves Pereira, Castelo Branco
1,809 18
14 Dewey & LeBoeuf 1,803 15
15 Cleary Gottlieb Steen & Hamilton 1,752 13
volume:
1 Freshfields Bruckhaus Deringer 5,046 49
2 DLA Piper 2,739 49
3 Linklaters 3,651 40
4 Clifford Chance 3,885 38
5 Eversheds 2,505 37
6 Allen & Overy 3,383 36
7 CMS 1,995 29
8 Jones Day 1,690 26
9 Travers Smith 1,820 22
10 Mayer Brown 1,747 22
11 Weil Gotshal & Manges 2,247 21
12 Norton Rose 1,938 21
13 SJ Berwin 1,678 21
14 Ashurst 1,487 21
15 Baker & McKenzie 2,051 20
Source: mergermarket
The financial adviser league tables by value and volume have been run from 01 January2008 to 31 July 2008 and exclude lapsed and withdrawn deals. The tables cover allsectors and are based on the geography of either the target, bidder or seller being Europe
Top 15 mid-market financial advisers – Europe(€10m to €250m)
The legal adviser league tables by value and volume have been run from 01 January2008 to 31 July 2008 and include lapsed and withdrawn deals. The tables cover allsectors and are based on the geography of either the target, bidder or seller being Europe
Top 15 mid-market legal advisers – Europe (€10m to €250m)
Monthly M&A report – 98
Taylor Nelson Sofres• On9July2008,WPP,thelistedUKbased
communicationsservicesgroup,launchedahostile
offertoacquireTNSfor£1.73incashplus0.1889
newWPPsharesforeachshareheld,valuingTNS’
entiresharecapitalatapproximately£1bn.Duetothe
unsolicitedoffer,GfK,thelistedGermany-basedmarket
researchgroupdroppeditsplansforamergerwithTNS
andinsteadconsideredanallcashoffer,involvingthe
GermanbusinessmanGuenterHerzandthelending
banksbehinditsabandonedmerger.Furthermore,a
Frankfurt-basedanalystwasreportedtohaveestimated
thatGfKwouldrequire€1.6bn($2.5bn)indebtfinancing
tomatchWPP’sbid,basedonGfKtakinga51%
shareholdingintheenlargedgroup.Asecondreport
predictedthatGfKneededacapitalincreaseandcredit
worth€315mtocompeteWPP’s€1.4bnoffer.
• However,itwasfarfromcertainthattheHerzfamily
couldaloneprovidetherequiredleveloffundingandis
rumouredthatGfKisconsideringapotentialjointbid
forTaylorNelsonSofreswithanumberofprivateequity
firmswhichwouldbeinthepositiontoprovidesufficient
financingforthedealtohappen.
Alliance & Leicester• On14July,BancoSantander,theSpanish-listed
commercialbank,launchedanoffertoacquireAlliance
&Leicester,thetroubledmortgagebank.Underthe
termsoftheagreement,A&Lshareholderswillreceive
1newSantandershareforeach3sharesheldexcluding
dividends.Buttheywillalsoreceiveaninterimdividend
ofGBp18forthefinancialyear2008.Theoffervalues
theentiresharecapitalofAlliance&Leicesterat
approximately£1.3bnandrepresentsapremiumof
36.4%toAlliance&Leicester’sclosingpriceof£2per
shareasof11July2008,thelasttradingpricepriorto
theformalannouncement.Alliance&Leicester’sshare
priceonedayaftertheannouncementrepresenteda
premiumofapproximately13%overtheofferprice.The
increasecanpartlybeexplainedtomarketspeculations
foracounterbidhelpedbyA&LshareholderStandard
Life,whichsaidthattheofferwasongiveawayterms
andislikelytoattractarivalbid.However,Credit
Agricole,whichpreviouslyheldtalkswithA&L,has
saidthatitsfreezeonnewacquisitionsstillstands.
Meanwhile,Santander’scampissaidtobeconfident
thatLloydsTSBwillnotbid.Resolutionhasruleditself
out.AcombinationofA&LandAbbeywillresultin959
branches,whichwillrepresentashareof7.6%inthe
UKmarket.Itisalsoexpectedtohavecombinedmarket
sharesinsavingsandunsecuredpersonalloansinthe
UKinexcessof8%.Adetailedanalysisconductedby
SantandersuggeststhattheacquisitionofA&Lwilllead
toannualisedcostsavings,ofmorethan£180mbefore
taxbytheendof2011.
UK’s Retail Sector• PhoenixEquityPartnersandSiriusEquity,theUKbased
privateequityfirms,haveacquiredanapproximate70%
stakeinL.K.Bennett,theUKbasedfashionbrandfor
anestimatedconsiderationbetween£80mand£100m,
fromLindaBennett,theownerofL.K.Bennett.Linda
Bennettwillremainasanonexecutivedirectorandwill
alsoretaina30%stakeinthecompany.Aspartofthe
transaction,RobertBensoussan,co-founderofSirius,will
joinLKBennettasChairman.Phoenixwillusealowlevel
ofleverageinthedeal,whichisbeingfinancedwithonly
30percentofdebtfromasinglebank.
• ThissaleincombinationwithSomerfields’saleto
Co-operativeGroupfor£1.5bnreflectswillingnessfor
investmentsintheretailsectordespitethegloomy
market.SinceJanuary2008,therehavebeen43deals
intheretailsector,valuedatapproximately€5.4bn.
Somerfieldoperatesaround900groceryoutlets,andhas
reportedunauditedrevenuesof£4.2bn($8.4bn)forthe
financialyearendingApril2008.
UK
UK
Monthly M&A report – 99
Dealofthemonth
Target: TaylorNelsonSofresPlc Announced: 9July2008
Bidder: WPPGroupPlc Deal value: €1,801m
Seller: Deal nature: Contested,Hostile,DomesticPublic
Description• WPPGroupPlc,theUK-listedcommunicationsservices
grouphasmadeanoffertoacquireTaylorNelson
SofresPlc,theUK-listedmarketinformationandinsight
company.
Terms• TNSshareholderswillreceiveGBp173incashplus
0.1889newWPPsharesforeachshareheld.
• TheofferisvaluedatGBp260.6persharebasedupon
WPP’sGBp464closingpriceon8July2008,lasttrading
daypriortotheannouncementoftheoffer.
• TheoffervaluestheentiresharecapitalofTNSat
£1,076m.
• Itrepresentsapremiumof5.08%toTNS’closingprice
ofGBp248on08July2008,thelasttradingpricepriorto
theformalannouncement.
• Itrepresentsapremiumof21.21%totheclosingpriceof
GBp215on2April2008,thelasttradingdaypriortothe
dateoftheannouncementbyTNSthatithadreceivedan
approachregardingapossibleofferforTNS.
Financing
• ThecashconsiderationpayableundertheWPPOfferis
beingfinancedbynewdebtfacilitieswhichhavebeen
arrangedwithWPP’srelationshipbanks.
Background• On29April2008,TNSandGfKAG,theGermanlisted
marketinformationgroup,announcedtheywereintalks
regardingapossiblemergerofequals;
• On5May2008,TNSmadeanannouncementthatit
hadreceivedanunsolicitedproposalfromWPPthatit
subsequentlyrejected;
• On2July2008WPPmadearevisedproposaltoTNS,the
termswerethesameasthosecurrentlyannounced;
• On3July2008TNSannouncedanil-premiummerger
ofequalswithGfKAG,theGermanlistedmarket
informationgroup.
Conditions• Min90%acceptances
• TNSshareholdersrejectingtheproposedGfK/TNSmerger
• ECRegulatoryapproval
• HSRregulatoryapproval
• Relevantregulatoryapprovals
UK
Monthly M&A report – 100
Dealofthemonth
Advisers
Target/seller Bidder
Financial JPMorganCazenove Financial GoldmanSachsMerrillLynchPerellaWeinbergPartner
Legal FreshfieldsBruckhausDeringer Legal Allen&OveryCliffordChance
PR BrunswickGroup PR BuchananCommunicationsBarabino&PartnersCNC
Exit multiples – Y/E 31/12/2007 Premium analysis
Multiples Value (€m) Offer price per share (€m) 3.28
Revenue 1.2x 1453.44 1 day before 5.08%
EBITDA 10.0x 179.69 1 month before 1.5%
EBIT 12.9x 139.8 1 day after -5.15%
Earnings 18.4x 79.64 Pre-rumour 20%
Mergermarket/dealReporter Intelligence
06-Aug-08 TNS:WPPquestionsbenefitofraisingbidtogainTNSrecommendation,expectstoextendacceptancedeadline
11-Jul-08 TNS:GfKconsideringbidinvolvingGuenterHerzandbanksbehindabandonedmerger,mayneedsupportfromfamilywealthfundsorprivateequity-sources
08-Jul-08 TNS:WPPwilllooktohedgefundsifitgoeshostiletomorrow;otheroptionistowalkaway
04-Jul-08 TNS:WPPtolditmayneedtoraisebidbeforegoinghostile;mix-and-matchfacilitypossible,sourcessay
03-Jul-08 TNSshareholdersprefersubstantialcashcomponentfromWPP,bankersandshareholderssay
26-Jun-08 TNS:WPPunmovedbyTNSprospectus;willannouncenextmovewithinfortnight
20-Jun-08 WPPnextmoveexpectedafterGfK/TNSprospectus
11-Jun-08 TNSdeliversinformationtoWPP;believedtobesufficientforbid
10-Jun-08 TNStoprovideWPPwithcertainduediligenceinformationwithindays;TNSEGMexpectedtobeheldthreeweeksafterprospectuspublishedinlateJune
06-Jun-08 TNSbidraisestalkofpotentialWPPconvertiblebond,butlessfavourabletermscastdoubt
09-May-08 TNS:WPPcouldappealTakeoverPanelruling,independentlawyersays;AllenandOveryprovidinglegaladvice
08-May-08 GfK/TNSboardsarearoundtwoweeksfromagreeingterms;WPPfirstapproachedTNSinlateMarch
UK
Monthly M&A report – 101
Timetable and expected events
Offer timetable Date Notes
HSR(USA) 30calendardayswaitingperiod;further30calendardaysfollowingcompliancewiththerequestforadditionalinformation
ECNotification 25/35tradingdaysforphase-1decision,further90/105tradingdaysifreferredtophase-2
LastdateforArt.9/Art.22request
15tradingdaysfromECnotification
Lastdayforremedieswithinphase1
20tradingdaysfromECnotification,willcause10tradingdaysextensionifremediessubmitted
Art.9/Art.22decision 10tradingdaysfromrequest
ECDecision 25/35tradingdaysforphase1decision,further90/105tradingdaysifreferredtophase2
Offer Timetable
Putuporshutup 09-Jul-08 y referstotakeoverpaneldeadlinetomakeaformalofferorwithdraw,formaloffermade
Announcement 09-Jul-08 y Fromcompany
Offerperiodcommences
01-Aug-08 y latest28calendardaysfromfirmannouncement,offerdocumentissuedsameday
Day21 22-Aug-08 minimumpermittedclosingdate
Day39 09-Sep-08 lastdayfortarget'sstatement
Day46 16-Sep-08 lastdayforcompetingofferorrevisedoffer
Day60 30-Sep-08 lastdaytodeclareofferunconditionalastoacceptances
Offerresults 01-Oct-08 nexttradingdaysfromclosingdate
Settlement 14-Oct-08 latest14calendardaysafterclosingdate
Day81 21-Oct-08 lastdaytodeclareofferwhollyunconditional
Offer Timetable
TNSex-div 21-May-08 Y referstoPreliminarydividendofGBp3.90pershare
WPPex-div 04-Jun-08 Y referstoPreliminarydividendofGBp9.13pershare
TNSdividendpayment
04-Jul-08 Y referstoPreliminarydividendofGBp3.90pershare
WPPdividendpayment
07-Jul-08 Y referstoPreliminarydividendofGBp9.13pershare
TNSInterimReport08
29-Aug-08 referstointerimresults2008
Dealofthemonth
UK
Monthly M&A report – 102
Topdeals
Top 15 UK announced deals for YTD 31 July 2008Announced Status Target Company Sector Bidder company Seller company Exit multiples (x) Bid premia
1-day beforeDeal value
(€m)Revenue EBITDA P/E
6-Feb-08 P RioTintoplc Energy,Mining&Utilities
BHPBilliton 6.4 17.8 19.4 3.2% 130,061
25-Jan-08 C Scottish&Newcastleplc
Consumer CarlsbergAS;andHeinekenNV
3.2 22.6 22.7 4.4% 13,007
1-Feb-08 C RioTintoplc(12%stake)
Energy,Mining&Utilities
AlcoaInc;andAluminumCorporationofChina
5.4 14.9 20.5 21.1% 9,458
12-Jun-08 P AngelTrainsLimited FinancialServices
AccessCapitalAdvisers;AMPCapitalInvestorsLimited;Babcock&BrownEuropeanInfrastructureFund;andDeutscheBankAG
RoyalBankofScotlandGroupplc
- - - - 4,539
25-Jun-08 C Barclaysplc(10%stake)
FinancialServices
ChallengerUniversalLimited;andQatarInvestmentAuthority
n/a n/a 3.9 -9.3% 2,896
17-Apr-08 C ExproInternationalGroupPlc
Energy,Mining&Utilities
AlpInvestPartnersNV;CandoverPartnersLimited;andGSCapitalPartners
3.2 12.6 33.3 22.2% 2,473
8-Feb-08 C BiffaPlc Industrials&Chemicals
MontaguPrivateEquityLLP;GlobalInfrastructurePartners;andUCIL
1.9 9.4 19.9 6.7% 2,107
16-Jul-08 P SomerfieldLtd Consumer TheCo-operativeGroupLimited
0.4 8.1 - - 1,973
9-Jul-08 P TaylorNelsonSofresPlc
BusinessServices
WPPGroupPlc 1.2 10.0 18.4 5.1% 1,796
14-Jul-08 P Alliance&LeicesterPlc
FinancialServices
SantanderCentralHispanoSA
n/a n/a 4.6 36.4% 1,672
14-Apr-08 P EnodisPlc Industrials&Chemicals
ManitowocCompanyInc
1.4 13.6 27.7 42.0% 1,663
10-Jun-08 P EurasianNaturalResourcesCorporationPlc(7.7%stake)
Energy,Mining&Utilities
Kazakhmysplc GovernmentofKazakhstan
7.3 17.5 30.9 -0.2% 1,651
8-May-08 L EnodisPlc Industrials&Chemicals
IllinoisToolWorksInc
1.3 12.0 24.0 15.0% 1,465
26-Mar-08 C JaguarLimited;andLandRoverLimited
Industrials&Chemicals
TataMotorsLimited FordMotorCompany
- - - - 1,452
8-May-08 P TheCarphoneWarehouseGroupPlc(retailbusiness)(50%stake)
Consumer BestBuyCoInc TheCarphoneWarehouseGroupPlc
0.6 7.1 10.6 - 1,381
C=Completed;P=Pending;L=Lapsed Energy,Mining&Utilities
UK
Monthly M&A report – 103
Top 5 UK announced deals of the month (July 2008)Announced Status Target company Sector Bidder company Seller company Exit multiples (x) Bid premia
1-day beforeDeal value
(€m)Revenue EBITDA P/E
16-Jul-08 P SomerfieldLtd Consumer TheCo-operativeGroupLimited
0.4 8.1 - - 1,973
9-Jul-08 P TaylorNelsonSofresPlc
BusinessServices
WPPGroupPlc 1.2 10.0 18.4 5.1% 1,796
14-Jul-08 P Alliance&LeicesterPlc
FinancialServices
SantanderCentralHispanoSA
n/a n/a 4.6 36.4% 1,672
28-Jul-08 P TescoPersonalFinance(50%stake)
FinancialServices
TescoPlc RoyalBankofScotlandGroupplc
n/a n/a 8.6 - 1,203
28-Jul-08 P DeticaGroupPlc BusinessServices
BAESystemsPlc 2.6 16.6 34.1 18.2% 657
C=Completed;P=Pending;L=Lapsed Source:mergermarket
Topdeals
UK
Monthly M&A report – 104
Pipeline of UK expected dealsSituation Target company Sector Potential
bidder company
Financial adviser to bidder (B); target (T); seller (S)
Seller company Market cap/est. value (€m)
Comments
Expecteddeal
BritishEnergy Energy,Mining&Utilities
ElectricitedeFranceSA;
UBS(T);NMRothschild(T);MerrillLynch(B);GleacherPartners/GleacherShacklock;
6,520 ElectricitedeFrance(EdF)isthepreferredbidderforBritishEnergyonbehalfofboththeUKgovernment(BE'slargestshareholder)andBritishEnergyitself,accordingtopeoplefamiliarwiththesituation.
Expecteddeal
LonminPlc Energy,Mining&Utilities
XstrataPlc DeutscheBank(B);MacquarieGroup(B);Citigroup(T)
6,499 XstrataannouncedanunsolicitedhostileproposedcashoffertoacquireLonmin,forGBP33pershare.
Expecteddeal
InfineumInternational
Energy,Mining&Utilities
JPMorgan(T) 2,000 TheprivateequitygroupsTPGCapital,CarlyleGroup,CinvenandKohlbergKravisRoberts(KKR)areamongthepartiestohaveeithersubmittedGBP1.5bn(EUR1.8bn)offerforInfineumorarelikelytodososoon.ApolloManagement,BainCapital,BCPartnersandVestarCapitalPartners,thebuyoutgroups,arealsosaidtobeinterestedinbiddingforInfineum.On16June,TheTimesreportedthatthejointventureisonthevergeofsalecompletion.
Expecteddeal
TaylorNelsonSofresPlc
GFKGroup GoldmanSachs(B);MerrillLynch(B);PerellaWeinbergPartners(B);DeutscheBank(T);JPMorganCazenove(T)
1,297 GfK,theGermanmarketresearchgroup,haddiscussionswithApaxPartnersregardingfinancingforatakeoverbidforTaylorNelsonSofres(TNS),accordingtotheonlineeditionofTheTimesreported.On5August,GFKissuedtoTNSshareholdersadefencedocument,whichexplainstheTNSboard'srationaleforturningdowntheWPPbid.
Expecteddeal
InformaPlc TMT TheCarlyleGroup;Hellman&FriedmanLLC;ProvidenceEquityPartnersInc;CinvenLtdandCandoverInvestmentsplc
Greenhill&Co(T);JefferiesGroup,Inc.(B);JPMorgan(B);UBS(B)
2,713 On26June2008,ProvidenceEquityLLP,TheCarlyleGroupandHellman&FriedmanmadeaproposalforInforma,atapriceofGBp506penceperInformaordinaryshare.
Expecteddeal
CollinsStewart FinancialServices
287 On6August,CollinsStewartreceivedapreliminaryapproachfromathirdpartywhichitisconsidering.
Expecteddeal
WhiteYoungGreenplc(WHY)
"FinancialServices
Rothschild(T) 222 Grontmij,theNetherlands-basedconsultinggroup,wasmentionedasapotentialbidderfortheUK-listedrivalWhiteYoungGreen,accordingtoaTimesreport.
C=Completed;P=Pending;L=LapsedSource:mergermarket
Expecteddeals
UK
Monthly M&A report – 105
Leaguetables
value
YTD 31- Jul-2008
House Value (€m)
Deal count
1 DeutscheBank 173,825 25
2 UBS 163,801 33
3 Rothschild 159,810 56
4 JPMorganCazenove 158,049 30
5 MorganStanley 157,448 17
6 CreditSuisse 156,448 20
7 GoldmanSachs 154,909 19
8 MerrillLynch 150,151 26
9 Citigroup 141,073 19
10 MacquarieGroup 140,463 6
11 GreshamAdvisoryPartners 140,183 2
12 ABNAMRO 135,635 14
13 Lazard 135,403 10
14 HSBCBank 133,937 8
15 BNPParibas 132,919 8
Source:mergermarket
volume
Thefinancialadviserleaguetablesbyvalueandvolumehavebeenrunfrom01January2008to31July2008andexcludelapsedandwithdrawndeals.Thetablescoverallsectorsandarebasedonthegeographyofeitherthetarget,bidderorsellerbeingUK
YTD 31- Jul-2008
House Value (€m)
Deal count
1 Rothschild 159,810 56
2 PricewaterhouseCoopersCorpFin 10,189 47
3 Deloitte 4,073 46
4 Ernst&Young 7,188 42
5 KPMGCorpFin 2,858 41
6 UBS 163,801 33
7 JPMorganCazenove 158,049 30
8 BDOCorporateFinance 356 27
9 MerrillLynch 150,151 26
10 DeutscheBank 173,825 25
11 CreditSuisse 156,448 20
12 GoldmanSachs 154,909 19
13 Citigroup 141,073 19
14 GrantThorntonCorporateFinance 1,038 19
15 MorganStanley 157,448 17
Source:mergermarket
Top 15 financial advisers - UK
value
YTD 31- Jul-2008
House Value (€m)
Deal count
1 Linklaters 185,571 49
2 Allen&Overy 178,346 51
3 Sullivan&Cromwell 143,708 12
4 SlaughterandMay 142,433 28
5 Freehills 140,657 5
6 HerbertSmith/GleissLutz/Stibbe 139,363 16
7 SkaddenArpsSlateMeagher&Flom 136,614 11
8 Lovells 135,424 27
9 CravathSwaine&Moore 134,076 5
10 McCarthyTetrault 133,613 5
11 DaviesWardPhillips&Vineberg 131,205 2
12 AllensArthurRobinson 130,793 6
13= BlakeDawson 130,061 1
13= JohnsonWinter&Slattery 130,061 1
15 FreshfieldsBruckhausDeringer 45,326 52
Source:mergermarket
volume
Thelegaladviserleaguetablesbyvalueandvolumehavebeenrunfrom01January2008to31July2008andincludelapsedandwithdrawndeals.Thetablescoverallsectorsandarebasedonthegeographyofeitherthetarget,bidderorsellerbeingUK
YTD 31- Jul-2008
House Value (€m)
Deal count
1 DLAPiper 2,640 60
2 Eversheds 2,298 57
3 FreshfieldsBruckhausDeringer 45,326 52
4 CliffordChance 38,726 52
5 Allen&Overy 178,346 51
6 Linklaters 185,571 49
7 OsborneClarke 2,882 40
8 PinsentMasons 1,336 39
9 Ashurst 28,471 36
10 TraversSmith 4,419 35
11 AddleshawGoddard 3,857 31
12 Hammonds 2,232 30
13 SlaughterandMay 142,433 28
14 JonesDay 4,943 28
15 Olswang 823 28
Source:mergermarket
Top 15 legal advisers - UK
UK
Monthly M&A report – 106
Leaguetables
value
YTD 31- Jul-2008
House Value (€m)
Deal count
1 Babcock&Brown 4,802 2
2 AMPCapitalInvestors 4,539 1
3= AlpInvestPartners 2,437 1
3= CandoverPartners 2,437 1
3= GSCapitalPartners 2,437 1
6= GlobalInfrastructurePartners 2,107 1
6= MontaguPrivateEquity 2,107 1
6= UCIL 2,107 1
9 CharterhouseCapitalPartners 906 2
10 3iGroup 814 6
Source:mergermarket
volume
TheprivateequitybuyoutactivitytablesbyvalueandvolumearebasedonprivateequityfirmsadvisingthebidderonbuyoutdealswherethedominantgeographyofthetargetcompanyisUKThetablesbyvalueandvolumehavebeenrunfrom01January2008to31July2008andexcludelapsedandwithdrawndeals
YTD 31- Jul-2008
House Value (€m)
Deal count
1 LloydsTSBDevelopmentCapital 170 8
2 3iGroup 814 6
3 ISISPrivateEquityPartners 82 5
4 PhoenixEquityPartners 297 4
5 InvestecGroup - 4
6 ECIPartners 185 3
7 RJDPartners 85 3
8 BankofScotlandCorporate 67 3
9 Endless 44 3
10 AberdeenAssetManagers 26 3
Source:mergermarket
Activity table of private equity firms on UK buyouts
value
YTD 31- Jul-2008
House Value (€m)
Deal count
1 BridgepointCapital 792 2
2 CCMPCapitalAdvisors 719 1
3 Investcorp 619 1
4 LGVCapital 601 4
5 HgCapital 431 4
6 3iGroup 343 9
7 Gresham 263 2
8 AlchemyPartners 249 1
9 ElectraPartners 237 1
10 PhoenixEquityPartners 200 1
Source:mergermarket
volume
TheprivateequityexitactivitytablesbyvalueandvolumearebasedonprivateequityfirmsadvisingthevendoronexitdealswherethedominantgeographyofthetargetcompanyisUKThetablesbyvalueandvolumehavebeenrunfrom01January2008to31July2008andexcludelapsedandwithdrawndeals
YTD 31- Jul-2008
House Value (€m)
Deal count
1 3iGroup 343 9
2 LGVCapital 601 4
3 HgCapital 431 4
4 ISISPrivateEquityPartners 115 3
5 BridgepointCapital 792 2
6 Gresham 263 2
7 LloydsTSBDevelopmentCapital 142 2
8 BPMarsh&Partners 110 2
9 NBGIPrivateEquity 104 2
10 PrimaryCapital 98 2
Source:mergermarket
Activity table of private equity firms on UK exits
UK
Monthly M&A report – 107
Trendgraphs
UK M&A quarterly trends
value volume
Movingaveragetrendline
0
20,000
40,000
60,000
80,000
100,000
120,000
140,000
160,000
180,000
Q32008*
Q2 2008
Q1 2008
Q42007
Q32007
Q22007
Q12007
Q42006
Q32006
Q22006
Q12006
Q4 2005
Q32005
Q22005
Q12005
Q42004
Q32004
Q22004
Q12004
Q42003
Q3 2003
Q22003
Q12003
valu
e (€
m)
0
50
100
150
200
250
300
350
400
Q32008*
Q22008
Q12008
Q42007
Q32007
Q22007
Q12007
Q4 2006
Q32006
Q2 2006
Q12006
Q42005
Q32005
Q2 2005
Q1 2005
Q4 2004
Q3 2004
Q2 2004
Q1 2004
Q4 2003
Q3 2003
Q22003
Q12003
num
ber
of d
eals
UK M&A quarterly private equity trends
value volume
0
10,000
20,000
30,000
40,000
50,000
Q32008*
Q22008
Q12008
Q42007
Q32007
Q22007
Q12007
Q42006
Q32006
Q22006
Q12006
Q42005
Q32005
Q22005
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Q42004
Q32004
Q2 2004
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Q42003
Q3 2003
Q22003
Q12003
valu
e (€
m)
UK buyouts
UK exits
0
20
40
60
80
100
Q3 2008*
Q22008
Q1 2008
Q42007
Q32007
Q22007
Q12007
Q4 2006
Q3 2006
Q22006
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Q42005
Q3 2005
Q2 2005
Q12005
Q4 2004
Q3 2004
Q2 2004
Q1 2004
Q42003
Q3 2003
Q2 2003
Q12003
num
ber
of d
eals
UK buyouts
UK exits
UK
Monthly M&A report – 108
Trendgraphs
UK M&A annual trends
value volume
0
50
100
150
200
250
300
2008 YTD20072006200520042003
valu
e (€
bn)
All UK M&A
UK buyouts
UK exits
0
300
600
900
1200
1500
2008YTD2007 2006200520042003
num
ber
of d
eals
All UK M&A
UK buyouts
UK exits
UK M&A sector breakdown YTD 2008
value volume
69.9%
0.5% 3.2%
1.9%4.8%
9.7%
7.5%
0.7%
1.5%
0.2%
Transportation
Business services
Industrial & Chemicals
TMT
Consumer
Financial services
Leisure
Construction
Pharma, Medical & Biotech
Energy, Mining & Utilities
Transportation
Business services
Industrial & Chemicals
TMT
Consumer
Financial services
Leisure
Construction
Pharma, Medical & Biotech
Energy, Mining & Utilities
Defence
5.3%
5.4%
4.9%
2.4%2.9%0.4%
17.4%
17.9%
14.4%11.7%
6.3%
UK
Monthly M&A report – 109
Mid-marketdeals
Top 10 UK announced mid market deals of the month (July 2008)(€10mto€250m)Announced Status Target company Sector Target/seller financial
adviserTarget/seller legal adviser
Bidder company Bidder financial adviser
Bidder legal adviser
Seller company
Deal Value(€m)
21-Jul-08 P CompAirUKLtd Industrials& Chemicals
Rothschild Eversheds;Macfarlanes
GardnerDenver,Inc
Internal Baker&McKenzie;BowmanGilfillan;PinsentMasons
AlchemyPartnersLLP
249
4-Jul-08 P NordAngliaEducationPlc
BusinessServices
HawkpointPartners AddleshawGoddard
BaringsPrivateEquityAsia
UBS CliffordChance
234
4-Jul-08 P TDGPlc(78%stake)
BusinessServices
Rothschild Linklaters LaxeyPartnersLtd MayerBrown
227
28-Jul-08 P BonarFloorsLimited
Consumer ABNAMRO FreshfieldsBruckhausDeringer
ForboHoldingAG Internal HerbertSmith/GleissLutz/Stibbe;Internal
Low&BonarPlc
156
9-Jul-08 C Education&AdventureTravelGroupLtd.
Leisure LivingstonePartners DLJMerchantBankingPartners
CreditSuisse;Deloitte
Eversheds BowmarkCapital
126
9-Jul-08 P RavenRussiaPropertyAdvisorsLimited;RavenRussiaPropertyManagementLimited
FinancialServices
PricewaterhouseCoopersCorpFin
RavenRussiaLimited
NumisSecurities RavenMountplc
124
19-Jul-08 C L.K.BennettLtd(70%stake)
Consumer AresCapital;Rothschild BerwinLeightonPaisner;Hammonds;Lovells
PhoenixEquityPartnersLimited;SiriusEquity
HawkpointPartners
TraversSmith
LindaBennett(Privateinvestor)
101
22-Jul-08 P F&CREITAssetManagementLLP(70%stake)
FinancialServices
Olswang F&CAssetManagementPlc
FenchurchAdvisoryPartners
NortonRose
76
1-Jul-08 P VitacressSaladsLimited
Agriculture RAR-SociedadedeControle(Holding)S.A.
66
11-Jul-08 P nCipherPlc. BusinessServices
Jefferies&Company;PanmureGordon&Co
SlaughterandMay
ThalesHoldingsUKPlc
Rothschild Lovells HermesFocusAssetManagersLimited;Legal&GeneralInvestmentManagement
63
C=Completed;P=Pending;L=Lapsed Source:mergermarket
UK
Monthly M&A report – 110
UK M&A quarterly Mid-market trend
value volume
0
2,a000
4,000
6,000
8,000
10,000
12,000
Q32008*
Q2 2008
Q1 008
Q42007
Q3 2007
Q2 007
Q 2007
Q42006
Q3 2006
Q2 2006
Q12006
Q4 2005
Q3 005
Q2 2005
Q1 2005
Q4 2004
Q32004
Q2 2004
Q1 2004
Q4 2003
Q3 2003
Q2 2003
Q1 2003
valu
e (€
m)
0
50
100
150
200
250
Q3 2008*
Q22008
Q1 2008
Q42007
Q32007
Q22007
Q12007
Q4 2006
Q3 2006
Q2 2006
Q1 2006
Q4 2005
Q3 2005
Q2 2005
Q12005
Q4 2004
Q3 004
Q2 2004
Q1 004
Q4 2003
Q3 2003
Q2 2003
Q12003
num
ber
of d
eals
Movingaveragetrendline
Mid-marketdeals
UK
Monthly M&A report – 111
Mid-marketleaguetables
YTD 31- Jul-2008
House Value (€m)
Deal count
Value:
1 Rothschild 2,711 27
2 Deloitte 2,270 28
3 PricewaterhouseCoopersCorpFin 1,434 21
4 Ernst&Young 1,400 18
5 KPMGCorpFin 1,357 22
6 UBS 1,310 8
7 Jefferies&Company 956 10
8 CloseBrothersGroup 879 7
9 DeutscheBank 843 6
10 HawkpointPartners 760 7
Volume:
1 Deloitte 2,270 28
2 Rothschild 2,711 27
3 KPMGCorpFin 1,357 22
4 PricewaterhouseCoopersCorpFin 1,434 21
5 Ernst&Young 1,400 18
6 InvestecInvestmentBanking 674 13
7 GrantThorntonCorporateFinance 421 12
8 CenkosSecurities 364 11
9 Jefferies&Company 956 10
10 UBS 1,310 8
Source:mergermarket
Thefinancialadviserleaguetablesbyvalueandvolumehavebeenrunfrom01January2008to31July2008andexcludelapsedandwithdrawndeals.Thetablescoverallsectorsandarebasedonthegeographyofeitherthetarget,bidderorsellerbeingUK
Top 10 mid-market financial advisers - UK(€10mto€250m)
YTD 31- Jul-2008
House Value (€m)
Deal count
Value:
1 Eversheds 2,246 34
2 DLAPiper 2,065 38
3 FreshfieldsBruckhausDeringer 1,928 20
4 TraversSmith 1,820 22
5 CliffordChance 1,556 15
6 Linklaters 1,379 13
7 Macfarlanes 1,326 13
8 Ashurst 1,228 17
9 NortonRose 1,210 15
10 Allen&Overy 1,068 16
Volume:
1 DLAPiper 2,065 38
2 Eversheds 2,246 34
3 TraversSmith 1,820 22
4 FreshfieldsBruckhausDeringer 1,928 20
5 Hammonds 516 20
6 OsborneClarke 648 18
7 Ashurst 1,228 17
8 Olswang 778 17
9 Allen&Overy 1,068 16
10 CliffordChance 1,556 15
Source:mergermarket
Thelegaladviserleaguetablesbyvalueandvolumehavebeenrunfrom01January2008to31July2008andincludelapsedandwithdrawndeals.Thetablescoverallsectorsandarebasedonthegeographyofeitherthetarget,bidderorsellerbeingUK
Top 10 mid-market legal advisers - UK(€10mto€250m)
Monthly M&A report – 112
Germany
Schaeffler’s “sneaky” low-ball bid for Continental highlights significant loophole in German takeover law• Germanyandhostilebidarenottermsonewould
considerassynonymous.Wewouldhavetoturnbackthe
clockto1991,whenGermansteeltitanKrupptookover
itslocalrivalHoesch,tofindthelasttrulyhostiletakeover
inGermany.Thesecompanieswouldhitthelimelight
againinthelate90’swhenthecombinedKrupp-Hoesch
groupannouncedplansforahostiletakeoverofitsmain
competitor,Thyssen.Aftersufferingthebacklashof
employeesandthepublic,thecompanieshadtoagreeto
a“friendly”merger.Acountryrifewithpoliticalandunion
intervention,Germanyisdefinitelynotreadyforhostility
aroundthe“merger-table”.
• Thistrendisbeginningtoturn,notbecausethemoodhas
suddenlygonehostile-butbywayofclevermanoeuvring
bylargecorporationswhichsomehavelikenedtothe
dealingprowessusuallyonlyassociatedwithprivate
equityhouses.UpstepsportscarmakerPorsche–the
companyamassedacontrollinginterestinlargerpeer
Volkswagenbyusingderivativestogainitsstranglehold
withouthavingtodiscloseitsactualshareholdinginits
target.
• NowSchaeffler,theGermanball-bearingcompany,has
builta36%stakeintires-to-brakesfirmContinentalby
wayofcash-settledequity-swapderivatives.Should
Schaefflerbesuccessfulintakingoveracompany
aboutthreetimesitssize,Maria-ElisabethSchaeffler
wouldcreatethelargestauto-partssupplierintheworld.
ContinentalwasquicktorejectSchaeffler’s“sneaky”
approach,withManfredWennemer,Conti’schief
executive,dismissingtheofferas“egoistic,high-handed
andirresponsible”–leadingtothebidgoinghostile.
• Schaefflerownsapproximately13mContinentalshares,
orabout8%ofthesharecapital,andwiththeswap
contracts,arrangedbetweenMarch25andMay23
ofthisyearbyMerrillLynch(incidentallythesame
investmentbankusedbyPorscheinits“creeping
takeover”ofVolkswagen)canincreaseitsstaketo36%.
AccordingtoGermantakeoverlaw,onceashareholding
surpasses30%amandatoryofferforalloftheshares
mustbelaunched-buthavingalreadylaunchedaformal
offerforallofContinentalsshares-Schaefflerwill
subsequentlybeabletokeepstakebuildingwithout
havingtodiscloseitsshareholding.Thecurrentoffer,
whichisthelowestpossibleamountallowedunder
Germanlaw,istheaverageclosingpriceofContishares
overthelastthreemonthsandstandsat€70.12pershare
valuingContinentalatapproximately€11.3bn.Schaeffler
hasbeenabletosidestepGermandisclosurelaws,thus
avoidinganyeffectthatnewsofitsstakebuildingwould
havehadonContinental’sshareprice.Again,wecan
drawparallelsherewithPorsche’spurposelylowball
bidforVolkswagen,whichendedupfailing,allowingthe
companytokeepstakebuildingunchallenged.
• Schaefflerhasstatedveryclearlythatitdoesnot
aimtotakefullcontrolofContinentalatthispoint–
especiallyconsideringthatdoingsowouldresultintax
disadvantagesaswellashigherrefinancingcostsfor
the€12bncreditlineContinentalarrangedtobuyauto
electronicsbusinessSiemensVDOlastyear.Infact,it
appearsthatitisexactlythispurchasewhichhasthrown
Continentalintoitscurrentpredicament.Thecompany’s
sharepricehassufferedastonishinglosses,fallingfrom
aclosingpriceof€108.5pershareonedaypriortothe
purchaseofVDOto€65.3pershareonedaypriorto
Schaefflermakingitsintentionspublic.Thisisanamazing
dropofalmost40%,allowingSchaefflertolaunchits
offeronthecheap–aidedofcoursebythefactthat
theydonothavetopayapremiumbecauseoftheswap
positionsheld.
• AlthoughContinentalhashiredanarmadaofthetop
investmentbankstodefendagainstwhatitdescribes
asan“illegal”movebySchaeffler–itwouldappearthat
alltheyaredoingisprolongingtheinevitable,leaving
thecompanyintheuncomfortablepositionofhaving
toexplaintoitsshareholderswhytheyhavespentvast
sumsofmoneyonadvisoryfeesfornodefenceplan.
PotentialwhiteknightslikeJapan’sBridgestoneseem
fewandfarbetween;ascompetitorsarebusyensuring
theirbalancesheetsarenotstretchedgiventhedifficult
marketconditions.Privateequitycompanieswould
nothavebeenabletoofferanysignificantpremiums
inanexpensivecreditmarket,especiallyconsidering
thatSchaeffleralreadyhasonefootupwithapotential
controllinginterestofabout36%.Socouldtheadvisors
realisticallyhavebeenexpectedtofindadifferentsuitor
forContinental?Highlyunlikely.
Germany
Monthly M&A report – 113
• Apoisonpillthen?Again,thisdoorseemsfirmlyshut
–andhasalreadybeenruledoutbyContinental.Not
surprisingasacapitalincreasetotryanddiluteSchaeffler’s
stakewouldnotgodownverywellwithalreadyirritated
investors;whilesellingoffkeypartsofthebusiness
ormakingyetanotherexpensiveacquisitioncannotbe
consideredasrealisticpossibilities–leavingContinental
virtuallydefenceless.
Despitethis,therehavebeenwhispersthatSchaefflermight
considerraisingitsbidto€75pershare–anofferthat
surelymustbeconsideredawasteofmoney.Continental
hasnopossiblewayofdefendingagainstSchaeffler,
whichhaspromisednolayoffsorsubstantialchangesto
Continentalscurrentstrategy,takingacontrollingstake
inthebusiness.Sowhyincreasetheoffer?Anymove
increasingtheofferpricemustbeconsideredasan
attempttohelpContinentalsaveface–orperhapsfriendly
mergersarestilltheorderofthedayinGermany,with
Schaefflerseeminglyreadytopaya“friendlypremium”for
itsGermancounterpart.
• Whateverthereason,examplessuchasPorsche/VW,
andnowSchaefflerandContinentalareclearcasesfor
arevampofGermandisclosurerules,whichcurrently
seemtobeallowingforcompaniestotakecontrolof
targetsbyinexpensivemeans.Continentalhasreported
Schaeffler’sswapoptionstoBaFin,Germany’sregulatory
body,inanattempttopreventSchaefflerfromexecuting
theswaps.ItwouldseemthatBaFinisContinental’slast
hopeofavoidingadealshouldtheregulatorcomedown
heavyonSchaefflerforabreachinreportingrequirements.
Continentalshareholdersshouldhoweverbeawareofthe
factthatsuchbreacheshaveusuallygoneunpunishedin
Germany,andarebetteroffjumpingatanofferof€75per
share;providedtherumoursofSchaefflerincreasingitsbid
areindeedtrue.
Germany
Monthly M&A report – 114
Target: ContinentalAG Announced: 15July2008
Bidder: SchaefflerKG Deal value: € 22,225m
Seller: - Deal nature: Recommended;Domestic;Public
Description• SchaefflerKG,theprivatelyownedGermanmanufacturer
ofprecisionproducts,haslaunchedavoluntarypublic
offerforContinentalAG,theGermanlistedautomotive
group
Structure
• Thetransactionwillbeconductedviaavoluntarypublic
offer
Terms
• ContinentalAGshareholderswillreceive€70.12incash
pereachshareheld
• TheoffervaluestheentiresharecapitalofContinentalat
€11,341m
• Itrepresentsapremiumof6.57%toContinental’sclosing
priceof€65.80on14July2008,thelasttradingprice
priortotheformalannouncement
Holdings and Irrevocables
• SchaefflerKGcurrentlyholds2.97%ofthesharesin
Continental
• SchaefflerKGisentitledtoacquireafurther4.95%of
Continentalunderfinancialinstruments
• SchaefflerKGhasenteredintoswaptransactions
regardingapproximately28%ofthesharesin
Continental.Theseswaptransactionsmaybeterminated
bySchaefflerKGatanytime.SchaefflerKGhasnotyet
decidedifandwhentheywillbeterminated.Ifitdecides
toterminatetheswaptransactionsduringtheacceptance
periodortheadditionalacceptanceperiod,upto28%of
thesharesinContinentaltherefromcouldbeofferedtoit
underthetakeoverofferfollowingsuchtermination
Conditions
• Relevantregulatoryauthorities
Germany
Dealofthemonth
Germany
Monthly M&A report – 115
Dealofthemonth
Exit multiples – Y/E 31/12/2007
Multiples Value (€m)
Revenue 1.4x 16,619
EBITDA 9.1x 2,491
EBIT 13.5x 1,676
Earnings 10.8x 1,050
Advisers
Target/seller Bidder
Financial GoldmanSachsDeutscheBankJPMorganPerellaWeinbergPartners
Financial ABNAMRO
Legal CliffordChance(AdvisingJPMorgan)FreshfieldsBruckhausDeringer
Legal -
PR Maitland(AMO)HeringSchuppenerConsulting(AMO)
PR -
Mergermarket/dealReporter Intelligence
06-Aug-08 ContinentalpollinginvestorsforviewsonSchaeffleroffer,defenceoptions
05-Aug-08 Continentalhas50-50chanceofusingEGMtodelaySchaeffler,personsays
04-Aug-08 Continental:Wranglesoverlegalityofswapagreementswillnotbustdeal,independentlawyersclaim
31-Jul-08 Continental:Schaefflerwillexerciseitsswapagreementsoncetalkshavetakenplaceduringthetenderperiod,sourcessay
30-Jul-08 Continental'sonlydefenceagainstSchaefflerisacapitalincrease;wouldstruggletofindsupport,sourcessay
24-Jul-08 Continental:Schaefflerseesnoreasontoincreaseoffer,sourcessay
18-Jul-08 ContinentalintalkswithCarlyleGrouptoselltyredivision,insidersays
17-Jul-08 Continental:Pirellinotinterestedinbuyingwholecompanyortyrebusiness,companysays
17-Jul-08 Continental:Schaeffleraimingtopublishofferdocumentthisweek;willreiteratethatitislookingonlyforupto50%stake,sourcesays
16-Jul-08 Continental:SchaefflerhasnotbeencontactedbyBaFin,butexpectstalksinafewdays
16-Jul-08 Continental:ABNAmroandAllen&OveryadvisingSchaeffler
15-Jul-08 Continental:Schaefflernothellbentontakingfullcontrol-conferencecallroundup
14-Jul-08 Continental/SchaefflerdealhingesonchangeofcontrolclausesreSiemensVDOfinancing,sourcessay
Germany
Monthly M&A report – 116
Timetable and expected events
Regulatory Date Notes
ECNotification (dRestimate)25/35tradingdaysforphase1decision,further90/105tradingdaysifreferredtophase2
LastdateforArt.9/Art.22request
15tradingdaysfromECnotification
Lastdayforremedieswithinphase1
20tradingdaysfromECnotification,willcause10tradingdayextensionifremediessubmitted
Art.9/Art.22decision 10tradingdaysfromrequest
ECDecision 25/35tradingdaysforphase1decision,further90/105tradingdaysifreferredtophase2
Offer timetable
Announcement 15-Jul-08 Y
BaFinnotification 16-Jul-08 Y max4weeksfromannouncementofoffer,datedRestimate
BaFinapproval 30-Jul-08 Y max10tradingdaysfromnotification
Offerdocumentissued 30-Jul-08 Y sametradingday
Offerperiodcommences 30-Jul-08 Y sametradingday
Publicationoftarget'sresponse
13-Aug-08 2weeksfrompublicationofofferdoc
Latestdayforbidder'sshareholderapproval
20-Aug-08 5tradingdaypriortoofferclosing
Lastdayforrevised/competingoffer
26-Aug-08 1tradingdayfromclosingdate
ClosingDate 27-Aug-08 min4weeks-max10weeks
FinalOfferresults 03-Sep-08 5tradingdaysafterclosingdate
SubsequentOfferPeriodcommences
04-Sep-08 nexttradingdayofprovisionalresults
SubsequentOfferPeriodclosingdate
18-Sep-08 2weekofferperiod
Settlement 29-Sep-08 3to7tradingdaysafterofferdeclaredwhollyunconditional
Company events
Continental1H08results Refersto1H2008resultspublication
Germany
Monthly M&A report – 117
Top 15 German announced deals for YTD 31 July 2008 Announced Status Target company Sector Bidder company Seller company Exit multiples (x) Bid
premia 1-day before
Deal value(€m)Revenue EBITDA P/E
15-Jul-08 P ContinentalAG(97.03%stake) Industrials&Chemicals
SchaefflerKG 1.4 9.1 10.8 6.6% 22,225
11-Jul-08 P CitibankPrivatkundenAG&CoKGaA
FinancialServices
CreditMutuelSA CitigroupInc n/a n/a 13.4 - 4,900
11-Jun-08 P LandesentwicklungsgesellschaftNordrhein-Westfalen
FinancialServices
TheWhitehallFunds
FederalStateofNordrhein-Westfalen
n/a n/a (loss) - 3,500
18-Jun-08 P VolkswagenAG(3.62%stake) Industrials&Chemicals
PorscheAutomobilHoldingSE
0.9 6.4 15.2 - 2,595
3-Jun-08 P EvonikIndustriesAG(25.01%stake)
Industrials&Chemicals
CVCCapitalPartnersLimited
RAGFoundation 1.0 6.7 11.0 - 2,400
15-Jul-08 P XellaPorenbetonAG Construction GSCapitalPartners;andPAIPartners
FranzHaniel&CieGmbH
1.5 - 2,011
10-Jul-08 P EWEAG(26%stake) Energy,Mining&Utilities
EnBWEnergieBaden-WuerttembergAG
2.0 13.5 25.7 - 2,000
3-Jun-08 L GfKAG BusinessServices
TaylorNelsonSofresPlc
1.6 9.5 0.2 27.5% 1,882
27-Apr-08 C DebitelAG TMT FreenetAG Debitel(Netherlands)HoldingBV
0.5 6.4 - 1,631
31-Jul-08 P EPCOSAG Industrials&Chemicals
TDKCorporation 1.0 7.4 19.2 16.7% 1,402
2-Jun-08 P ErsolSolarEnergyAG Energy,Mining&Utilities
RobertBoschGmbH
VentizzCapitalPartnersAdvisoryAG
7.4 34.8 118.8 63.3% 1,179
16-Apr-08 P HypoRealEstateHoldingAG(24.90%stake)
FinancialServices
J.CFlowers&CoLLC;andGroveInternationalPartnersLLP
n/a n/a 7.5 21.8% 1,127
2-Jan-08 C OttoGroup(25%stake) Consumer OTTOAktiengesellschaftfuerBeteiligungen
WAZMediaGroup 0.7 12.5 11.1 - 1,000
15-Apr-08 C D+SeuropeAG TMT ApaxPartners 2.6 12.5 31.0 31.3% 593
30-Apr-08 P TognumGmbH(22.30%stake) Industrials&Chemicals
DaimlerAG EQTPartnersAB 1.0 6.1 11.8 12.0% 586
C=Completed;P=Pending;L=Lapsed Source:mergermarket
Topdeals
Germany
Monthly M&A report – 118
Top 5 German announced deals of the month (July 2008)Announced Status Target company Sector Bidder
companySeller company Exit multiples (x) Bid premia
1-day before
Deal value(€m)
Revenue EBITDA P/E
15-Jul-08 P ContinentalAG(97.03%stake) Industrials&Chemicals
SchaefflerKG 1.4 9.1 10.8 6.6% 22,225
11-Jul-08 P CitibankPrivatkundenAG&CoKGaA
FinancialServices
CreditMutuelSA
CitigroupInc n/a n/a 13.4 - 4,900
15-Jul-08 P XellaPorenbetonAG Construction GSCapitalPartners;andPAIPartners
FranzHaniel&CieGmbH
1.5 - 2,011
10-Jul-08 P EWEAG Energy,Mining&Utilities
EnBWEnergie Baden- WuerttembergAG
2.0 13.5 25.7 - 2,000
31-Jul-08 P EPCOSAG Industrials&Chemicals
TDKCorporation
1.0 7.4 19.2 16.7% 1,402
C=Completed;P=Pending;L=Lapsed Source:mergermarket
Topdeals
Germany
Monthly M&A report – 119
Situation Target company Sector Potential bidder company
Seller company Financial adviser Market cap/ est.
value (€m)
Comments
Significantbusinessevents
DaimlerAG Industrials&Chemicals
Undisclosedbidder
36,000 Daimlerisseeingstakebuildingfromforeignhedgefunds,accordingtoareportinGermanweeklyFocus.Daimlerissaidtobebuyingbackitsownsharesasadefencemeasure,thereportcontinued.AspokesmanforDaimlerwasunwillingtocommentinthearticleandexplainedthatDaimlerdoesnotseeitselfasatakeovertarget,butcannotruleoutbeingtakenover.ThisnewsservicereportedthatDaimlercouldbecomeatargetbutcouldremainindependentsimplybecauseofalackoftradebuyers.Daimlerwouldbea"cheap"buyatthemomentasitssharehaslostaround45%ofitsvaluethisyeartogivethecompanyamarketcapitalizationof€36bn.
SignificantM&A
DresdnerBankAG;andDresdnerKleinwort
FinancialServices
CommerzbankAG;Sberbank;andChinaDevelopmentBank
AllianzSE 7,500 CommerzbankhassofarbeenseenasthefavouriteinalineofpartiessaidtoalsobeinterestedinDresdnerBank.IfCDBbidsforDresdnerKleinwortitcouldalsofinditselfupagainstRussianbankSberbank,whichhastakenaninterest,andwhichonesourcesaidwaslookingatacquiringastakeintheinvestmentbankingdivision,withAllianzkeepingaholding.Sberbankdeclinedtocommentonwhatitdescribedas"marketrumours".DresdnerBankwillonlybesubjecttoaChinaDevelopmentBank(CDB)bidifthemoveisapprovedbytheChineseStateCouncil,asourcefamiliarwiththesituationsaid.
Takeovertarget
DeutschePostbankAG FinancialServices
DeutscheBank;INGGroupNV;LloydsTSBGroupPlc;andSantanderCentralHispanoSA
UBSAG(T);MorganStanley(S)
GovernmentofGermany;andDeutschePostAG
7,300 ThetradeunionrepresentativesoflistedGermanDeutscheBankwouldsupportatakeoveroflistedlocalrivalDeutschePostbank,EuroamSonntagreported.AnotherDeutscheBanksupervisoryboardmemberwascitedinthearticleassayingthatDeutscheBankisintheDeutschePostbankdataroomandisevaluatingamerger.ThereportsuggestedthatthosepartieswithinDeutscheBankthatwantaDeutschePostbanktakeoverhavestrengthenedtheirpositionafterRainerNeske,theheadoftheDeutscheBankprivatecustomerdivision,gaveapersuasivespeechinfrontoftheDeutscheBanksupervisoryboardinfavourofthedeal.
Takeovertarget
SolarWorldAG Energy,Mining&Utilities
GeneralElectricCompany
Asbeckfamily 3,300 RobertBosch’s€546.4macquisitionofphotovoltaicscompanyErsolSolarcouldstartmajorconsolidationinGermany’ssolarindustry,thisnewsservicereported.Solon,SolarworldandQ-Cellsareconsideredprimetargets.
Expecteddeals
Germany
Monthly M&A report – 120
Situation Target company Sector Potential bidder company
Seller company Financial adviser Market cap/ est.
value (€m)
Comments
Takeovertarget
Kloeckner&CoAG Industrials&Chemicals
ArcelorMittal;andBerkshireHathawayInc
1,454 ThomasLudgwig,theCEOoflistedGermansteeltraderKloeckner&Co,hastoldthisnewsservicethecompany’s100%freefloatandlackofaprotectiveshareholdercouldmakeitatarget.HeaddedthatthecompanyhasnotbeenapproachedbyUSinvestorWarrenBuffet,whohadbeenreportedasinterestedinthecompany.SeparatelythecompanyhasbeennamedasapotentialtargetforIndiansteelcompanyArcelorMittal.
Takeovertarget
IKBDeutscheIndustriebankAG
FinancialServices
SkandinaviskaEnskildaBankenAB;RipplewoodHoldingsLLC;andLoneStarFunds
MerrillLynch(S) KfWBankengruppe;andGovernmentofGermany
500 ThesaleofGermanbankIKBDeutscheIndustriebank,willbedecidedfollowinganEUdecisiondueinOctober,FrankfurterAllgemeineZeitungreported.ThereportcitedobserverswhosaidadecisionwillcomeaftertheEuropeanCommissiondecideswhethertoapproveIKB'scapitalincrease.SwedishbankSEB,andfinancialinvestorsLoneStarandRipplewoodtabledbindingoffersinJune,thereportnoted.Arecentpressreporthadsaidthatthesalepricecouldbearound€500m.
Expecteddeals
Germany
Monthly M&A report – 121
Leaguetables
value
YTD 31-Jul-08
House Value (€m)
Deal count
1 DeutscheBank 45,234 28
2 GoldmanSachs 36,944 11
3 UBS 35,484 16
4 JPMorgan 29,363 10
5 ABNAMRO 22,461 4
6 PerellaWeinbergPartners 22,225 1
7 LehmanBrothers 7,298 5
8 Citigroup 6,685 8
9 MerrillLynch 5,758 5
10 MorganStanley 5,343 8
11 PricewaterhouseCoopersCorpFin 4,988 10
12 Rothschild 4,338 9
13 SalOppenheimjr&Cie 4,253 12
14 CreditSuisse 4,073 10
15 MetzlerCorporateFinance 4,015 5
Source:mergermarket
volume
Thefinancialadviserleaguetablesbyvalueandvolumehavebeenrunfrom01January2008to31July2008andexcludelapsedandwithdrawndeals.Thetablescoverallsectorsand arebasedonthegeographyofeitherthetarget,bidderorsellerbeingGermany
YTD 31-Jul-08
House Value (€m)
Deal count
1 DeutscheBank 45,234 28
2 UBS 35,484 16
3 Ernst&Young 3,632 14
4 SalOppenheimjr&Cie 4,253 12
5 KPMGCorpFin 1,036 12
6 GoldmanSachs 36,944 11
7 Lazard 3,349 11
8 JPMorgan 29,363 10
9 PricewaterhouseCoopersCorpFin 4,988 10
10 CreditSuisse 4,073 10
11 Rothschild 4,338 9
12 Citigroup 6,685 8
13 MorganStanley 5,343 8
14 Deloitte 2,236 8
15 UniCreditGroup 2,013 7
Source:mergermarket
Top 15 financial advisers - Germany
value
YTD 31-Jul-08
House Value (€m)
Deal count
1 FreshfieldsBruckhausDeringer 43,107 50
2 CliffordChance 42,027 36
3 Linklaters 16,552 24
4 HengelerMueller 13,038 26
5 Sullivan&Cromwell 9,257 5
6 Shearman&Sterling 8,359 16
7 HerbertSmith/GleissLutz/Stibbe 7,029 16
8 Poellath&Partners 5,319 17
9 BredinPrat 4,900 1
10 Gernandt&Danielsson 4,500 1
11 Latham&Watkins 4,496 8
12 Allen&Overy 4,035 13
13 WillkieFarr&Gallagher 3,952 4
14 DavisPolk&Wardwell 3,764 3
15 Roschier 3,183 3
Source:mergermarket
volume
Thelegaladviserleaguetablesbyvalueandvolumehavebeenrunfrom01January2008to31July2008andincludelapsedandwithdrawndeals.Thetablescoverallsectorsand arebasedonthegeographyofeitherthetarget,bidderorsellerbeingGermany
YTD 31-Jul-08
House Value (€m)
Deal count
1 FreshfieldsBruckhausDeringer 43,107 50
2 CliffordChance 42,027 36
3 CMS 693 28
4 HengelerMueller 13,038 26
5 Linklaters 16,552 24
6 Poellath&Partners 5,319 17
7 Shearman&Sterling 8,359 16
8 HerbertSmith/GleissLutz/Stibbe 7,029 16
9 Baker&McKenzie 230 16
10 Allen&Overy 4,035 13
11 NoerrStiefenhofer&Lutz 219 11
12 DLAPiper 275 10
13 SJBerwin 178 9
14 Latham&Watkins 4,496 8
15 MilbankTweedHadley&McCloy 2,817 7
Source:mergermarket
Top 15 legal advisers - Germany
Germany
Monthly M&A report – 122
Leaguetables
value
YTD 31-Jul-08
House Value (€m)
Deal count
1 TheWhitehallFunds 3,500 1
2 CVCCapitalPartners 2,400 1
3= GSCapitalPartners 2,011 1
3= PAIPartners 2,011 1
5= GroveInternationalPartners 1,127 1
5= JCFlowers&Co 1,127 1
7 ApaxPartners 593 1
8 Paine&Partners 550 1
9 TheCarlyleGroup 456 1
10 NordwindCapital 448 1
Source:mergermarket
volume
TheprivateequitybuyoutactivitytablesbyvalueandvolumearebasedonprivateequityfirmsadvisingthebidderonbuyoutdealswherethedominantgeographyofthetargetcompanyisGermanyThetablesbyvalueandvolumehavebeenrunfrom01January2008to31July2008andexcludelapsedandwithdrawndeals
TheprivateequityexitactivitytablesbyvalueandvolumearebasedonprivateequityfirmsadvisingthevendoronexitdealswherethedominantgeographyofthetargetcompanyisGermanyThetablesbyvalueandvolumehavebeenrunfrom01January2008to31July2008andexcludelapsedandwithdrawndeals
YTD 31-Jul-08
House Value (€m)
Deal count
1 GranvilleBaird 150 3
2 BarclaysPrivateEquity 97 3
3 HeidelbergCapital 20 3
4 WaterlandPrivateEquityInvestments - 3
5 BIPINVESTMENTPARTNERS 20 2
6 Argantis 19 2
7 AureliusInvestkapital 10 2
8= AUCTUSManagement - 2
8= EQTPartners - 2
8= EquitaManagement - 2
Source:mergermarket
Activity table of private equity firms on German buyouts
value
YTD 31-Jul-08
House Value (€m)
Deal count
1 Permira 1,631 1
2 VentizzCapitalPartnersAdvisory 1,179 1
3 EQTPartners 586 1
4 MontaguPrivateEquity 550 1
5 WaterlandPrivateEquityInvestments 346 2
6 CorsairCapital 290 1
7 InvestcorpTechnologyPartners 185 1
8= AltaPartners 150 1
8= AtlasVenture 150 1
8= EdmonddeRothschildInvestmentPartners
150 1
Source:mergermarket
volume
YTD 31-Jul-08
House Value (€m)
Deal count
1 3iGroup - 4
2 Argantis - 3
3 WaterlandPrivateEquityInvestments 346 2
4 EFFEuropeanFoundersFund 95 2
5 EquitaManagement 90 2
6 L-EigenkapitalAgentur - 2
7 Permira 1,631 1
8 VentizzCapitalPartnersAdvisory 1,179 1
9 EQTPartners 586 1
10 MontaguPrivateEquity 550 1
Source:mergermarket
Activity table of private equity firms on German exits
Germany
Monthly M&A report – 123
Trendgraphs
German M&A quarterly trend
value volume
Movingaveragetrendline
0
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e (€
m)
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value volume
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e (€
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German exits
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eals
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German exits
Germany
Monthly M&A report – 124
Trendgraphs
German M&A annual trends
value volume
0
20
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100
ytd 2008ytd 2007ytd 2006ytd 2005ytd 2004ytd 2003
valu
e €b
n
All German M&A
German buyouts
German exits
0
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YTD 2008*20072006200520042003
num
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of d
eals
All German M&A
German buyouts
German exits
German M&A sector breakdown YTD 2008
value volume
Industrials & Chemicals
TMT
Consumer
Business Services
Financial Services
Pharma, Medical & Biotech
Construction
Transport
Energy, Mining & Utilities
Leisure9.8%
18.8%
57.2%
0.8%
4.0%4.9%
1.8%
<0.1%
0.8%
2.0%
10.8%
7.8%
37.3%
11.4%
10.8%
0.7%2.6%
5.2%
3.3%
2.3%
7.8%
Industrials & Chemicals
TMT
Consumer
Business Services
Financial Services
Pharma, Medical & Biotech
Construction
Transport
Energy, Mining & Utilities
Leisure
Agriculture
Germany
Monthly M&A report – 125
German M&A quarterly mid-market trend
value volume
0
500
1,000
1,500
2,000
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4,500
Q32008*
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valu
e €m
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of d
eals
Mid-marketdeals
Movingaveragetrendline
Germany
Monthly M&A report – 126
Mid-marketdeals
Top 5 German announced mid-market deals of the month (July 2008)(€10mto€250m)
Announced Status Target company Sector Target/seller financial adviser
Target/seller legal adviser
Bidder company Bidder financial adviser
Bidder legal adviser
Seller company Deal Value(€m)
28-Jul-08 P UtimacoSafeware
AG
TMT SophosInc DeutscheBank
AG;UBS
Freshfields
Bruckhaus
Deringer
(Advising
DeutscheBank
AG)
Investcorp
TechnologyPartners
185
21-Jul-08 P OegerToursGmbH
(76%stake)
Leisure AlpstreamAG 100
31-Jul-08 P AltaFidesAG
(85.80%stake)
Financial
Services
Goethe
InvestmentsSarl
91
4-Jul-08 P MediclinAG(70%
stake)
Pharma,
Medical&
Biotech
ERGO
Versicherungsgruppe
AG
MetzlerCorporate
Finance
HerbertSmith/
GleissLutz/
Stibbe
67
14-Jul-08 P PulcraChemicals
GmbH
Industrials&
Chemicals
Lincoln
International
Freshfields
Bruckhaus
Deringer
FashionChemicals
GmbH&CoKGDeloitte OrthKluth
Rechtsanwalte
CognisDeutschland
GmbH&CoKG
26
C=Completed;P=Pending;L=Lapsed Source:mergermarket
Germany
Monthly M&A report – 127
Mid-marketleaguetables
YTD 31-July-08
House Value (€m)
Deal count
Value:
1 Citigroup 568 4
2 DeutscheBank 503 5
3 Lazard 408 5
4 MorganStanley 386 3
5 SalOppenheimjr&Cie 321 3
6 AlegroCapital 320 2
7 CreditSuisse 250 1
8 JPMorgan 239 2
9 ABNAMRO 236 2
10 Deloitte 225 3
Volume:
1 DeutscheBank 503 5
2 Lazard 408 5
3 Citigroup 568 4
4 CorporateFinancePartners 213 4
5 MorganStanley 386 3
6 SalOppenheimjr&Cie 321 3
7 Deloitte 225 3
8 CloseBrothersGroup 165 3
9 KPMGCorpFin 152 3
10 AlegroCapital 320 2
Source:mergermarket
Thefinancialadviserleaguetablesbyvalueandvolumehavebeenrunfrom01January2008to31July2008andexcludelapsedandwithdrawndeals.Thetablescoverallsectorsandarebasedonthegeographyofeitherthetarget,bidderorsellerbeingGermany
Top 10 mid-market financial advisers – Germany (€10mto€250m)
YTD 31-July-08
House Value (€m)
Deal count
Value:
1 FreshfieldsBruckhausDeringer 1,492 15
2 CliffordChance 880 9
3 Linklaters 588 7
4 HerbertSmith/GleissLutz/Stibbe 495 6
5 CMS 385 6
6 HergunerBilgenOzeke 353 2
7 Shearman&Sterling 332 3
8 BeitenBurkhardt 313 5
9 HengelerMueller 299 5
10 Allen&Overy 297 4
Volume:
1 FreshfieldsBruckhausDeringer 1,492 15
2 CliffordChance 880 9
3 Linklaters 588 7
4 HerbertSmith/GleissLutz/Stibbe 495 6
5 CMS 385 6
6 BeitenBurkhardt 313 5
7 HengelerMueller 299 5
8 Allen&Overy 297 4
9 DLAPiper 275 4
10 Poellath&Partners 269 4
Source:mergermarket
Thelegaladviserleaguetablesbyvalueandvolumehavebeenrunfrom01January2008to31July2008andincludelapsedandwithdrawndeals.Thetablescoverallsectorsandarebasedonthegeographyofeitherthetarget,bidderorsellerbeingGermany
Top 10 mid-market legal advisers – Germany (€10mto€250m)
Monthly M&A Report – 128
Gerard Darel sells majority stake to Advent International; senior and mezzanine financing underwritten by six
• FrenchretailerGérardDarelandAdventInternational,theglobalprivateequityfirm,haveannouncedastrategicandfinancialpartnershipagreement.Theagreementisintendedtosupportthecompany’sinternationalexpansionplans.
AdventInternationalhastakenamajoritystakeinGérardDarel.
• AdventInternational’scoreexpertiseindevelopingbusinessesinternationallywillsupportthenextstageofthecompany’sdevelopment:positioningGérardDarelasaglobalplayer.
Thestrategyistodoublethegroup’sturnoverthroughgrowingthenumberofown-storesinFrancefrom40to80aswellasstrengtheningthegroup’scompetitivenessandnetworkglobally.
• LaurentGerbi,CEOofGérardDarel,said:“InselectingAdventInternationalasourpartner,ourgrouphasaccessnotonlytotheexpertiseofarenownedglobalprivateequityplayertoadvancethecompany’sinternationaldevelopment,butalsothefinancialresourcestosupportourambitiousgrowthstrategy.WehavegreatconfidenceinthiscollaborationwhichwillenableustotaketheGérardDarelbrandtoitsnextlevel.”
PascalStefani,ManagingDirectorofAdventInternationalinFrance,commented:“Wearedelightedtosupportthemanagementteamwhoseambitionsandvaluesweshare,inthisnewphaseinthecompany’sdevelopment.WehavebeenimpressedbythequalityofGérardDarel’sproductsanditsexcellentpositioningintheaffordableluxurygoodsmarket.Thecompany’sfuturegrowthprospectsarestrongand,theperformanceofitsretailandwholesalenetwork,aswellastheprofessionalismofitsmanagementteamareequallyimportantassetswhichwillallowGérardDareltobecomealeadingclothingandleathergoodsbrandworldwide.”
• GérardDarelcurrentlyemploys600peopleinmorethan40countriesandgeneratedsalesofaround€158min2007,up12%fromthepreviousyear.Withmorethan30%ofitsturnovercomingfrominternationalmarkets,thebusinessbenefitsfromaworldwidenetworkofover90“ownbrand”shops,140departmentstoreconcessionsand1200multi-brandboutiques,providingastrongplatformforcross-bordergrowth.
• EdmonddeRothschildCorporateFinanceandthelawfirmBredinPratadvisedGérardDarel.CalyonandthelawfirmWeilGotshal&MangesadvisedAdventInternational.
SeniordebtfinancingisunderwrittenbyFortis,IKBDeutscheIndustriebankAGandWestLBAG.ThemezzaninefinancingisprovidedbyAresManagementLLC,Mezzanis(partofCreditAgricole’sprivateequityarm)andOaktreeCapitalManagement.
France Telecom could buy out Mobistar
• FranceTelecom,theFrenchlistedcompanydoesnotplantomakeamajoracquisitionintheshortterm.
GervaisPelissierdeclaredthegroupwasnotplanningtoacquireacompanyasbigasTeliaSonera,forwhichFranceTelecommadeanapproachbutlaterdecidedtowithdrawit.
• AreportsaidFranceTelecomisunlikelytosetitseyesontargetssuchasSouthAfrica’sMTN,Netherlands’KPN,orNorway’sTelenor.
PelissieraddedthatthegroupwasconsideringexpandingitspresenceinemergingmarketsandcountriessuchasGhana,Vietnam,andAlgeria.
• But,theFrenchgroupcouldmakeseveralsmallacquisitionsratherthanabigone.FranceTelecomcouldlookattheSwissandBelgianmarkets.AccordingtobrokerOddo,FranceTelecomcouldconsiderbuyingouttheminoritiesinBelgium’sMobistar,inwhichFranceTelecomalreadyowns50.2%stake.AnalystsbelieveFranceTelecomcouldseektoenteranagreementwithEgypt-basedOrascom,whoseoperationsincludeassetsinBangladeshandPakistan.
• AlsoFranceTelecomcouldhavetowaitforthefirsthalfofnextyeartotakepartintheprivatisationofVietnam’sMobifone.PelissieralsosaidthattheprivatisationofGhanaTelecomseemedtobeonthevergeofbeingre-activatedwhereastheprivatisationofAlgerieTelecomhasbeenpostponedonceagainandisnotexpectedtore-openbeforenextyear.
France
France
Monthly M&A Report – 129
Geodis: SNCF owns more than 95%• FrenchstockmarketregulatorAMFannouncedthe
provisoryresultsofthetakeoverofferlaunchedbySNCF
forGeodis.On4July2008,SNCFParticipationsowned
7,723,389sharesand8,882,529votingrightsinGeodis,
representing98.09%and98.22%ofthesharesand
votingrightsinthecompanyrespectively.AMFsaidthat
theconditionrequiredbySNCF,whichwastocontrolat
least66.67%ofGeodis’sharesandvotingrights,has
beenmet.Onafullydilutedbasis,SNCFcontrols95.24%
ofthesharesand95.72%ofthevotingrightsinGeodis.
• Thedefinitiveresultsoftheofferwillbepublishedon10
Julyatthelatest.
SUEZ - Gaz de France: Shareholders approve merger and approve listing of SUEZ Environment
• TheCombinedOrdinaryandExtraordinarySUEZ
Shareholders’Meeting,chairedbyGerardMestrallet,
ChairmanandCEO,washeldJuly16,2008todeliberate
anddecideupontransactionsnecessarytothemergerof
SUEZandGazdeFrance.
• TheShareholders’Meetingapprovedtheresolutions
presentedonthemeeting’sagenda,including:themerger
ofSUEZwithGDF;andthemarketlistingofSUEZ
EnvironmentanddistributiontoSUEZshareholdersof
65%ofthecapitalofSUEZEnvironment.
• ThemergerbetweenSUEZandGDFwillcreateaworld
energyleaderwithtopflightpositionsinnaturalgasand
electricity.
GDFSUEZwillhaveaworkforceofcloseto200,000
employeesthroughouttheworld,with2007revenuesof
€74.3bn.
• ThemergerwaseffectiveonJuly22,2008.Thefirstday
oftradinginGDFSUEZandSUEZEnvironmentshares
tookplacethesameday.
Pernod Ricard working on sale of local ‘marginal’ brands
• PernodRicard,thelistedFrenchdrinkscompany,is
workingonasaleoflocalbrands.ButPernod,didnot
identifywhichbrandsweretobeputupforsale.
• Thecompanydescribedthebrandsinquestionas
“relativelymarginal”.Thebrandsshouldworth€1bn.
Proceedsfromthesalesareearmarkedforpayingdown
debttakenonbyPernodRicardtofinanceits€5.7bn
acquisitionofVin&Sprit.
France
France
Monthly M&A Report – 130
Dealofthemonth
Target: BanqueChaixS.A;BanquedeSavoieSA;BanqueDupuydeParsevalS.A;BanqueMarzeS.A;BanquePelletierS.A.;CreditCommercialduSudOuest;andSocieteMarseillaisedeCredit
Announced: 2July2008
Bidder: LeGroupeBanquePopulaire Deal value: €2,100m
Seller: HSBCFrance Deal nature: Recommended
Terms • BanqueFédéraledesBanquesPopulaires(BFBP)S.A,
theFrancebasedmutualbank,hasacquiredSociete
MarseillaisedeCredit(SMC),BanquedeSavoie,Banque
ChaixS.A.,BanqueMarzeS.A.,BanqueDupuyde
ParsevalS.A,BanquePelletierS.A,CreditCommercial
duSudOuest(CCSO),fromHSBCFranceSA,theFrance
basedbankandasubsidiaryofHSBCHoldingplc,the
listedUKbasedbankingandfinancialservicesgroup,fora
considerationof€2.1bn
• AccordingtothetermsoftheagreementBFBPwill
holdtheentireequityofSociétéMarseillaisedeCredit,
while51%oftheothersixbankswillbetransferredon
alaterdatetothelocalregionalauthoritieswithinthe
BFBPgroup.Thepartieshavebeeninnegotiationssince
February2008.Thesevenbankshaveapproximately
2,950employeesin400branches,andaccordingtothe
agreementtheywillretaintheirbrandsandoperatewithin
BFBP’smanagement
Background
• In2007,theygeneratedacombinedoperatingincome
ofapproximately€440mandnetincomeof€100m.Total
assetswereat€8,380m
Funding• AssumedCash
Advisers
Target/seller Bidder
Financial GoldmanSachs HSBCBank
Financial Citigroup LazardRothschild
Legal Linklaters Legal BredinPrat
PR - PR EuroRSCGC&O
mergermarket/dealReporter Intelligence
29-Feb-08 HSBCreceives€2.1bncashofferforFrenchregionalbanksfromBanquesPopulaires;entersexclusivediscussions
28-Feb-08 HSBCFrance:offersforregionalbanksworth€1bn–report
27-Feb-08 CreditMutuel’sCICmayenterexclusivetalkswithHSBCforacquisitionofFrenchregionalbanks–report
France
Monthly M&A Report – 131
Top 15 French announced deals for YTD 31 July 2008Announced Status Target company Sector Bidder company Seller company Exit multiples (x) Bid premia
1-day beforeDeal value
(€m)Revenue EBITDA P/E
23-Apr-08 C NeufCegetelSA(60.32%stake)
TMT SFRSA 2.6 11.8 29.0 0.8% 5,558
02-Jul-08 C BanqueChaixSA;BanquedeSavoieSA;BanqueDupuydeParsevalSA;BanqueMarzeSA;BanquePelletierSA.;CreditCommercialduSudOuest;andSocieteMarseillaisedeCredit
FinancialServices
LeGroupeBanquePopulaire
HSBCFranceSA n/a n/a n/a - 2,100
21-May-08 P LyrecoSAS Industrials&Chemicals
CorporateExpressNV
0.8 9.6 - 1,731
23-Jan-08 C YSLBeaute Consumer L'OrealSA PPRSA - 1,150
17-Jun-08 C ConverteamGroupSAS
Industrials&Chemicals
LBOFrance BarclaysPrivateEquityLimited
1.3 8.1 16.6 - 1,100
30-May-08 C EditisSA TMT GrupoPlaneta WendelInvestissement
1.3 - 1,026
26-Mar-08 C CompagniedeSaint-GobainSA(5.10%stake)
Industrials&Chemicals
WendelInvestissement
0.7 4.9 12.8 - 969
28-May-08 P AlmaSA(49%stake) Consumer OtsukaPharmaceuticalCoLtd
RoxInvest 2.0 - 750
04-Jul-08 P Clarins(37.26%stake)
Consumer FinanciereFC 2.4 16.7 24.1 26.9% 742
13-Jun-08 C EpoliaSAS BusinessServices
Q-ParkNV CharterhouseCapitalPartnersLLP
- 700
17-Apr-08 C EiffageSA(10.95%stake)
Construction CaissedesDepotsetConsignations
SacyrVallehermosoSA
0.4 5.8 3.2% 633
28-Apr-08 P GeodisSA(57.63%stake)
Transport SNCFParticipations
0.2 5.0 19.3 1.2% 630
30-Jan-08 C BUTInternational Consumer DecomeublesPartnersSAS
KesaElectricalsPlc 1.3 25.4 81.6 - 550
01-Apr-08 C Petit-Couronnerefinery;andReichstettrefinery
Energy,Mining&Utilities
PetroplusHoldingsAG
RoyalDutchShellplc - 503
27-Mar-08 C MaisonsduMonde Consumer ApaxPartners;andLBOFrance
BarclaysPrivateEquityLimited;andNatexisIndustrie
- 415
C=Completed;P=Pending;L=Lapsed Source:mergermarket
Top 5 French announced deals of the month (July 2008)Announced Status Target company Sector Bidder company Seller company Exit multiples (x) Bid premia
1-day beforeDeal value
(€m)Revenue EBITDA P/E
02-Jul-08 C BanqueChaixSA;BanquedeSavoieSA;BanqueDupuydeParsevalSA;BanqueMarzeSA;BanquePelletierSA.;CreditCommercialduSudOuest;andSocieteMarseillaisedeCredit
FinancialServices
LeGroupeBanquePopulaire
HSBCFranceS.A. n/a n/a n/a - 2,100
04-Jul-08 P Clarins(37.26%stake)
Consumer FinanciereFC 2.4 16.7 24.1 - 742
28-Jul-08 P ILOGSA TMT IBMCorporation 1.5 66 526 - 169
02-Jul-08 C L'Avion Transportation BritishAirwaysplc
SocietedeParticipationAerienne
- 68
31-Jul-08 P PrevoyanceetReassurance
FinancialServices
SCORSA MalakoffMedericgroup
n/a n/a - 53
C=Completed;P=Pending;L=Lapsed Source:mergermarket
TopDeals
France
Monthly M&A Report – 132
Pipeline of French expected dealsSituation Target
CompanySector Financial adviser to
bidder (B); target (T); seller (S)
Potential bidder company
Seller company Market cap/ est.
value (€m)
Comments
RumouredTakeoverTarget
L'OrealSA Consumer NestleSA 33,695 SharesinlistedFrenchcosmeticsgroupL'Orealwentup1.20%onrumoursthatSwissgroupNestlecouldmakeabidforthecompany
RumouredTakeoverTarget
SchneiderElectricSA
Industrials&Chemicals
ABBLimited 23,211 AnalystsbelieveABB,thelistedSwisstechnologygiant,couldbeinterestedintheFrenchgroup.ABBsawitssharesup1.3%followingspeculationitisinterestedinFrenchcompetitorSchneidervaluedat€24bn.
RumouredTakeoverTarget
VallourecGroupSA
Industrials&Chemicals
Gazprom;andMetalloinvest
10,104 Vallourec,ispreparedtoacceptacashtakeoverbidofapproximately€389persharefromGazprom.Vallourecsharesrose4%to€148.6onspeculationthatRussianinvestorAlisherUsmanov,theownerofmetalsholdingMetalloinvest,isconsideringabidat€194.3pershare.Vallourechasbeenrecentlyreportedtohaveamarketcapitalisationof€11.12bn.
RumouredTakeoverTarget
HermesInternationalSA
Consumer LVMH 8,078 HermeshasseenrumoursofpotentialinterestfromcompetitorLVMH.
RumouredTakeoverTarget
SafranSA Defence MerrillLynch(T) Thales;Zodiac;andAlstom
7,373 RumoursarethatSafrancouldjoinforceswithFrenchcompaniesThales,ZodiacorAlstom.
RumouredTakeoverTarget
AeroportsdeParis
Transportation VinciSA;FraportAG;MacquarieAirports;BridgepointCapitalLimited;BalfourBeattyPlc;FlughafenWienAG;andHochtiefAG
Frenchgovernment
6,423 AeroportsdePariscouldbesoldbytheFrenchgovernment.TheFrenchgovernmentcoulddecidetodisposeofits68.4%stake.
RumouredTakeoverTarget
Mobistar TMT FranceTelecom 3,160 Mobistar,thelistedBelgianmobilephoneoperator,issubjecttooccasionalspeculationthat51.2%shareholderFranceTelecomcouldbuytheminoritiesorsellitsstake.
RumouredTakeoverTarget
Thales TMT Dassault;andEADS
AlcatelLucent 1,714 AlcatelLucent,thelistedFrenchtelecomequipmentandservicescompany,couldconsidersellingits21%shareholdinginlistedFrenchdefenceandelectronicsgroupThales.
RumouredTakeoverTarget
AREVASA Industrials&Chemicals
Bain(T);Calyon(T);Lazard(T);HSBCBank(T)
EDF;Total;andAlstom
Frenchgovernment;andCommissariatal'EnergieAtomique
1,011 FrenchpresidentNicolasSarkozywouldliketoreducethestakeofthegovernmentinArevatolessthan50%,andmaybetryapotentialalliancewithelectricitygroupEDForoilgroupTotal.
Source:mergermarke
Expecteddeals
France
Monthly M&A Report – 133
Leaguetables
value
YTD 31-Jul-08
House Value (€m)
Deal count
1 CALYON 18,417 11
2 JPMorgan 15,089 11
3 MerrillLynch 14,450 9
4 Lazard 14,124 18
5 SG 12,728 15
6 Citigroup 9,597 11
7 BNPParibas 8,489 15
8 LehmanBrothers 7,819 7
9 DeutscheBank 7,636 4
10 Ernst&Young 7,444 16
11 Rothschild 7,128 34
12 Natixis 6,709 7
13 MorganStanley 6,508 4
14 RicoletLasteyrieetAssocies 5,723 2
15 Fortis 5,636 2
Source:mergermarket
volume
Thefinancialadviserleaguetablesbyvalueandvolumehavebeenrunfrom01January2008to31July2008andexcludelapsedandwithdrawndeals.Thetablescoverallsectorsandarebasedonthegeographyofeitherthetarget,bidderorsellerbeingFrance
YTD 31-Jul-08
House Value (€m)
Deal count
1 Rothschild 7,128 34
2 UBS 4,537 20
3 Lazard 14,124 18
4 Ernst&Young 7,444 16
5 SG 12,728 15
6 BNPParibas 8,489 15
7 CALYON 18,417 11
8 JPMorgan 15,089 11
9 Citigroup 9,597 11
10 CloseBrothersGroup 879 11
11 AforgeFinance 600 11
12 KPMGCorpFin 225 10
13 MerrillLynch 14,450 9
14 Deloitte 99 9
15 LehmanBrothers 7,819 7
Source:mergermarket
Top 15 financial advisers - France
value
YTD 31-Jul-08
House Value (€m)
Deal count
1 Linklaters 19,954 20
2 GideLoyretteNouel 13,249 22
3 CliffordChance 10,546 15
4 Debevoise&Plimpton 10,405 8
5 HerbertSmith/GleissLutz/Stibbe 10,027 9
6 BredinPrat 9,068 18
7 ClearyGottliebSteen&Hamilton 8,864 11
8 DeBrauwBlackstoneWestbroek 7,524 4
9 DavisPolk&Wardwell 7,024 6
10 Shearman&Sterling 6,792 5
11 Vinge 5,702 4
12 Dechert 5,638 3
13 Gernandt&Danielsson 5,626 1
14= Macfarlanes 5,626 1
14= McDermottWill&Emery 5,626 1
Source:mergermarket
volume
Thelegaladviserleaguetablesbyvalueandvolumehavebeenrunfrom01January2008to31July2008andincludelapsedandwithdrawndeals.Thetablescoverallsectorsandarebasedonthegeographyofeitherthetarget,bidderorsellerbeingFrance
YTD 31-Jul-08
House Value (€m)
Deal count
1 GideLoyretteNouel 13,249 22
2 Linklaters 19,954 20
3 BredinPrat 9,068 18
4 CliffordChance 10,546 15
5 White&Case 5,432 14
6 CMS 3,137 14
7 JonesDay 2,190 14
8 MayerBrown 2,347 13
9 SJBerwin 1,800 13
10 ClearyGottliebSteen&Hamilton 8,864 11
11 Allen&Overy 4,040 10
12 HerbertSmith/GleissLutz/Stibbe 10,027 9
13 FreshfieldsBruckhausDeringer 5,487 9
14 WillkieFarr&Gallagher 2,101 9
15 Debevoise&Plimpton 10,405 8
Source:mergermarket
Top 15 legal advisers
France
Monthly M&A Report – 134
Leaguetables
value
value
YTD 31-Jul-08
House Value (€m)
Deal count
1 BarclaysPrivateEquity 2,200 1
2 LBOFrance 1,753 5
3 WendelInvestissement 969 1
4 ColonyCapital 550 2
5= GSCapitalPartners 550 1
5= MerchantEquityPartners 550 1
7 ApaxPartners 415 1
8 Hellman&Friedman 310 1
9 IKInvestmentPartners 255 1
10 GroupeAlpha 215 2
Source:mergermarket
YTD 31-Jul-08
House Value (€m)
Deal count
1 BarclaysPrivateEquity 2,615 2
2 WendelInvestissement 1,026 1
3 CharterhouseCapitalPartners 700 1
4 NatexisIndustrie 415 1
5 3iGroup 274 5
6 21Investimenti 180 1
7 AtriACapitalPartenaires 73 3
8 Aurinvest 69 1
9 LBOFrance 53 3
10 MBOPartenaires 40 1
Source:mergermarket
volume
volume
TheprivateequitybuyoutactivitytablesbyvalueandvolumearebasedonprivateequityfirmsadvisingthebidderonbuyoutdealswherethedominantgeographyofthetargetcompanyisFranceThetablesbyvalueandvolumehavebeenrunfrom01January2008to31July2008andexcludelapsedandwithdrawndeals
TheprivateequityexitactivitytablesbyvalueandvolumearebasedonprivateequityfirmsadvisingthevendoronexitdealswherethedominantgeographyofthetargetcompanyisFranceThetablesbyvalueandvolumehavebeenrunfrom01January2008to31July2008andexcludelapsedandwithdrawndeals
YTD 31-Jul-08
House Value (€m)
Deal count
1 LBOFrance 1,753 5
2 EdmonddeRothschildCapitalPartners - 4
3 21Investimenti 119 3
4 NaxicapPartners 31 3
5= ActivaCapital - 3
5= MBOPartenaires - 3
7 ColonyCapital 550 2
8 GroupeAlpha 215 2
9 OfiPrivateEquity 65 2
10 OFIPrivateEquityCapital 50 2
Source:mergermarket
YTD 31-Jul-08
House Value (€m)
Deal count
1 3iGroup 274 5
2 InitiativeetFinance 28 4
3 AtriACapitalPartenaires 73 3
4 LBOFrance 53 3
5 BarclaysPrivateEquity 2,615 2
6= IrisCapital 18 2
6= I-SourceGestion 18 2
8= ArgosSoditic - 2
8= AXAPrivateEquity - 2
8= CaissedesDepotsetConsignations - 2
Source:mergermarket
Activity table of private equity firms on French buyouts
Activity table of private equity firms on French exits
France
Monthly M&A Report – 135
Trendgraphs
French M&A quarterly trend
value volume
Movingaveragetrendline
0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
90,000
Q32008*
Q22008
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Q32007
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Q32003
Q22003
Q12003
valu
e €b
n
0
20
40
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120
140
160
180
Q3 2008*
Q2 2008
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Q3 2007
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num
ber
of d
eals
French M&A quarterly private equity trend
value volume
0
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Q32008*
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Q32003
Q22003
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valu
e €b
n
France buyouts
France exits
0
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Q32008*
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Q22005
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Q32003
Q22003
Q12003
num
ber
of d
eals
France buyouts
France exits
France
Monthly M&A Report – 136
Trendgraphs
French M&A annual trends
value volume
0
30
60
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120
150
2008 YTD20072006200520042003
valu
e €b
n
All France M&A
France buyouts
France exits
0
100
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400
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600
2008 YTD20072006200520042003
num
ber
of d
eals
All France M&A
France buyouts
France exits
French M&A sector breakdown YTD 2008
value volume
Consumer
Industrials & Chemicals
TMT
Business services
Financial services
Construction
Leisure
Energy, Mining & Utilities
Pharma, Medical & Biotech
Transportation
Agriculture
17.9%1.4%
7.6%
8.9%
30.9%
11.9%
11.3%
0.4%
6.3%
0.3%3.2%
15.9%
21.7%
3.9%
4.3%
5.8%
5.0%
10.9%
2.7%3.5%
24.4%
1.6% 0.4%
Consumer
Industrials & Chemicals
TMT
Business services
Financial services
Construction
Leisure
Energy, Mining & Utilities
Pharma, Medical & Biotech
Transportation
Agriculture
Defence
France
Monthly M&A Report – 137
Mid-marketdeals
Top 10 French announced mid-market deals of the month (July 2008) (€10mto€250m)Announced Status Target company Sector Target/seller
financial adviser
Target/seller legal adviser
Bidder company Bidder finanical adviser
Bidder legal adviser
Seller company Deal value(€m)
13-Jun-08 C WKNWindkraftNordAG(Frenchwindmillparks)
Energy,Mining&Utilities
EnelErelisSAS WKNWindkraftNordAG
200
30-May-08 C AverysSA Industrials&Chemicals
AforgeFinance;LehmanBrothers;SG
MayerBrown
LBOFrance Rothschild LefevrePelletier&Associes;MayerBrown
21CentralePartners
180
17-Apr-08 C EiffageSA(3%stake)
Construction BNPParibas;Lazard;Natixis;CALYON;Citigroup;JPMorgan
BredinPrat;DarroisVilleyMaillotBrochier;DavisPolk&Wardwell
GroupamaSA SacyrVallehermosoSA
173
01-Feb-08 C FrialSA Consumer AforgeFinance
HocheSocieteD'Avocats;MayerBrown;SarrauThomasCouderc
GroupeAlpha BarclaysBank EYLaw;FieldFisherWaterhouse;Linklaters
170
28-Jul-08 P ILOGSA TMT JPMorgan PaulHastingsJanofsky&Walker
IBMCorporation
UBS CravathSwaine&Moore
169
19-Feb-08 C GenesysSA(91.90%stake)
TMT HoulihanLokey;RicoletLasteyrieetAssocies
ClearyGottliebSteen&Hamilton;WeilGotshal&Manges
QuadrangleGroupLLC;andThomasHLeePartnersLP
LehmanBrothers Linklaters;WeilGotshal&Manges
165
22-Feb-08 C DoctissimoSA TMT Lazard Fidufrance LagardereSCA HSBCBank BredinPrat 136
25-Feb-08 C LOGIXGroup TMT CloseBrothersGroup
JeantetAssocies
ArrowElectronicsInc
GoldmanSachs GroupeOPENSA
135
09-Jan-08 C DefiModeSAS Consumer BNPParibas;KPMGCorpFin
SarrauThomasCouderc
VivarteSA Ashurst 3iGroupPlc 130
14-Feb-08 C Thalese-TransactionsEspanaSA;ThalesE-TransactionsGmbH;ThalesE-TransactionsLtd;andThalesE-TransactionsSA
TMT WillkieFarr&Gallagher
HypercomCorporation
DLAPiper ThalesSA 102
Source:mergermarket
France
Monthly M&A Report – 138
Mid-marketdeals
French M&A Quarterly Mid-market Trend
value volume
0
1,000
2,000
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5,000
Q32008*
Q2 2008
Q12008
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Q 2007
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Q12007
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Q22006
Q12006
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Q12004
Q42003
Q32003
Q22003
Q12003
valu
e €b
n
0
1,000
2,000
3,000
4,000
5,000
Q32008*
Q22008
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Q42007
Q32007
Q22007
Q12007
Q42006
Q32006
Q22006
Q12006
Q42005
Q32005
Q22005
Q12005
Q42004
Q32004
Q22004
Q12004
Q42003
Q32003
Q22003
Q12003
num
ber
of d
eals
Movingaveragetrendline
France
Monthly M&A Report – 139
YTD 31-Jul-08
House Value (€m)
Deal count
Value:
1 Rothschild 907 13
2 Citigroup 786 4
3 SG 656 8
4 AforgeFinance 600 8
5 Lazard 597 4
6 LehmanBrothers 540 3
7 CloseBrothersGroup 464 8
8 BNPParibas 407 4
9 JPMorgan 342 2
10 CALYON 268 2
Volume:
1 Rothschild 907 13
2 SG 656 8
3 AforgeFinance 600 8
4 CloseBrothersGroup 464 8
5 Citigroup 786 4
6 Lazard 597 4
7 BNPParibas 407 4
8 KPMGCorpFin 225 4
9 Ernst&Young 164 4
10 LehmanBrothers 540 3
Source:mergermarket
Thefinancialadviserleaguetablesbyvalueandvolumehavebeenrunfrom01January2008to31July2008andexcludelapsedandwithdrawndeals.Thetablescoverallsectorsandarebasedonthegeographyofeitherthetarget,bidderorsellerbeingFrance
Top 10 mid-market financial advisers – French (€10mto€250m)
YTD 31-Jul-08
House Value (€m)
Deal count
Value:
1 BredinPrat 885 9
2 MayerBrown 832 9
3 GideLoyretteNouel 764 12
4 ClearyGottliebSteen&Hamilton 534 4
5 Linklaters 484 6
6 FreshfieldsBruckhausDeringer 417 3
7 Allen&Overy 411 2
8 SarrauThomasCouderc 345 3
9 WeilGotshal&Manges 330 1
10 EYLaw 328 3
Volume:
1 GideLoyretteNouel 764 12
2 BredinPrat 885 9
3 MayerBrown 832 9
4 Linklaters 484 6
5 SJBerwin 285 5
6 JonesDay 101 5
7 ClearyGottliebSteen&Hamilton 534 4
8 CliffordChance 241 4
9 Eversheds 131 4
10 FreshfieldsBruckhausDeringer 417 3
Source:mergermarket
Thelegaladviserleaguetablesbyvalueandvolumehavebeenrunfrom01January2008to31July2008andincludelapsedandwithdrawndeals.Thetablescoverallsectorsandarebasedonthegeographyofeitherthetarget,bidderorsellerbeingFrance
Top 10 mid-market legal advisers – French (€10mto€250m)
Mid-marketleaguetables
Monthly M&A report – 140
SOS Cuetara’s acquisition of Bertolli strengthens its position as a world leader in olive oil sector • InJuly,SOSCuetara,thelistedSpanishfoodgroup,
announceditsagreementwithUnilever,thelistedUK
manufacturerofconsumergoods,onthepurchaseofthe
latter’sBertolliolive-oilandvinegarbusinessfor€630m.
SOSCuetaracalledtheacquisitionofItaly’swell-known
olive-oilbranda“transactionofgreatstrategicvalue”.
SOSCuetaraisnowexpectedtocoverthemarketwith
allolive-brandshavingnowaworld-licensetousethe
Bertolliname.
• Unilever’ssoldoilsandvinegarbusinessesinclude
Bertolli,Maya,DanteandSanGiorgioaswellasa
productionfacilityinInveruno,Italy.Thevendorwillretain
ownershipofBertollimargarine,pastasauceandfrozen
mealsbrands.
• ItmaynotbethebestnewsforItalianstoknowthat
anotheroliveoilproducerhasbeensoldtoaSpanish
company.ThisacquisitionisthecontinuationofSOS
Cuetara’sadvanceonItalianoliveoilproducers.Before
signingagreementwithUnilever,thegroupboughtFriol,
SassaandCrapelli.SOSCuetara’slastacquisitionmaybe
asignaltheItaliansarelosinggroundinthesector,which
priortothelastfewyearwasseenasexclusivelylocal.
• AtthesametimetheacquisitionofBertollimaybecome
stimulifortheItalianfirmstotrytore-launchthe
sector.AccordingtothePresidentofItalianOliveOil
ConsortiumMassimoGargano,Italianoliveoilcompanies
demonstratetheirwilltogrow,toproduceandto
returntoinvesting.AccordingtoUnaproldata,38%of
thecompaniesoperatinginthesectorintendtomake
newinvestmentsand44%wanttoinvestincultivation
techniques,14%intraceabilityand18%inmarketing.
• Thefuturehoweverseemstobeofferingbrighter
perspectivestotheacquirerdespitepossible
complicationsinthebeginning.Theacquisitionisfinanced
withabridgeloanwhichmaycausedifficultiesinthelight
ofunstablecreditmarkets.Inaddition,thehighpriceof
thedeal(SOSCuetaraisbelievedtospendaround35%
or40%ofitscurrentaverageannualgrossrevenues
ofthelastfewyears)couldleadtoagreatshareholder
dilution.
• Bybuildingitsempire(since2003itistheseventh
acquisitionforgroup)SOSCuetarawillbecontrollingthe
bottlingandmarketingof25%or30%ofworldwideolive
oilsales.Itmaynotbegoodforotheroliveoilbrands,
butcouldbebeneficialtoconsumers.Onemaysaythat
byinvestingintomoderatelypricedvirginoliveoil,SOS
Cuetaraforeseesthebenefitsofoliveoildistributionat
alowerpricetocustomers.Itisyetunknownwhenthe
customerswillbeabletofullyenjoythegoodquality
productsforalesserprice.InthelightofFAECA’s
(Spanishagriculturalco-opassociation)estimates,oliveoil
productionforthenexttwoyearswillfallbyabout9%in
Spain.Highoilpricesmaybelessthanencouragingnews
fortheloversofMediterraneandiet,yetitwillbenefit
SOSCuetara.
Bridgepoint Capital Limited is determined toincrease its role in Italian fragrances market.
• BridgepointCapitalLimited,thelistedUKprivate
equitygroupissettostrengthenitspositionsinItalian
fragrancesmarket.On8July,Bridgepointannounced
it’sacquisitionofLineaBellezzaandBeautyStar,Italian
perfumerychains,comprising50outletsandwortha
turnoverof€40m.
• AcquiredfrombrothersSalvatore,PaoloandPieroPilloni
forundisclosedconsiderationestimatedinrangeof€30m
to€40m,thismanagementbuyouttransactionisanother
stepofBridgepointintoperfumessectorafteracquisition
ofLimonitwoyearsago.
• AdvisedbyKPMGandStudioLegaleNCTM,Bridgepoint
financedthetransactionthroughadebtfromGruppo
BancaPopolaredell’EmiliaRomagna.SalvatorePilloni,will
remainasmanagingdirector.
• TheoperationisbelievedtostrengthenBridgepoint
Capitalpresenceinthemarket.Accordingtopartner
LucioRanaudocurrentfragrancessectorinItalyisvery
fragmented.Thefirstfiveplayersarebelievedtoown
35%ofthemarketwhiletherestremainsinhandsof
mediumsizechainsandindependentoutlets.Determined
tocontributetoitsconsolidation,Bridgepointisnow
interestedinacquiringLaGardenia.LaGardeniais
anotherItalianperfumerieschainwith150outletsowned
byLCapitalandErgonCapital.
Italy
Italy
Monthly M&A report – 141
• Possibleacquisitioncouldbeanimportantsteptosatisfy
Bridgepoint’sambitions.Howeveritmaymeetcompetition
inabidforLaGardenia.BridgepointCapitalisshortlistedby
LaGardenia’sadvisersalongwithInvestcorp,LionCapital,
AdventInternational,LehmanBrothersandCharterhouse.
Potential sale of La Gardenia• Accordingtothreesourcesclosetothesituation,five
privateequityfundshavebeenselectedforLaGardenia,
theItalianperfumechainwhichisputforsalebyL-Capital
andErgonPartners,withtheassistanceofCreditSuisse
asafinancialadviser.Accordingtothesources,the
potentialbiddersincludeInvestcorp,LionCapital,Lehmann
PrivateEquity,BridgepointandCharterhouse.LaGardenia
reportedaturnoverof€94mandEBITDAof€20mforthe
financialyear2007andexpectsEBITDAof€27min2008.
Thecompanyisrumouredtobevaluedat9.5xto10.5x
theprojectedFY08EBITDA.AccordingtoIlMondo,the
bidders’listalsoincludesindustrialgroupssuchasLimoni,
anItaliancompetitorofLaGardeniaandNocibe,aFrench
perfumerychain.Thedeadlineforbindingofferswas18
July,butnowitispostponed.TwosourcessaidthatIntesa
SanPaoloisarrangingstaplefinancingfortheoperation.
However,thefirstsourcesaidthefinancinghasnotyet
beencommittedtoandaddedthatotherbankscouldjoin
theconsortium.
Italy
Monthly M&A report – 142
Dealofthemonth
Target: NavigazioneMontanariSpA Announced: 21July2008
Bidder: G.&A.Montanari&Co Deal value: €340m
Seller: - Deal nature: Recommended
• G.&A.Montanari&Co,theItalybasedholdingcompany,
hasagreedtoacquirethe33.54%stakeitdoesnot
alreadyowninNavigazioneMontanariS.p.A.,thelisted
Italybasedshippingcompany,foranofferpriceof€3.1
pershare,valuingtheentireequitycapitalat€380.86m.
• Theconsiderationisbasedon41,206,646sharesof
NavigazioneMontanari.Thesharepricerepresentsa
premiumof14%overNavigazioneMontanari’sclosing
priceof€2.73pershareasof18July2008,oneday
beforetheannouncementandapremiumof18%over
thecompany’sclosingpriceof€2.612pershareasof20
June2008,onemonthbeforetheannouncementdate.
G.&A.MontanariwillreceivedebtfundingfromBNP
Paribas.G.&A.Monatanaricurrentlyholds66.46%in
NavigazioneMontanari.Followingtheacquisition,
G.&A.Montanariplanstodelistthecompanyfrom
BorsaItaliana.
• Thetransactionissubjecttoapprovalofminimum90%of
theshareholders.
Italy
Monthly M&A report – 143
Dealofthemonth
Advisers
Target/Seller Bidder
Financial UniCreditGroup Financial BNPParibas
Legal - Legal PirolaPennutoZeiAssociati
Legance Studio Legale Associato (Advising BNP Paribas)
- PR LeganceStudioLegaleAssociato
PR - PR Barabino&Partners
Mergermarket/dealReporter Intelligence
06-Mar-08 NavigazioneMontanaridelistingpossibleifsharepricefallsfurther,chairmansays
25-Feb-08 NavigazioneMontanaridelistingnotanimpossibility,butnocurrentplansforit,CFOsays
Exit multiples – Y/E 31/12/07 Premium analysis
Multiples Value (EURm ) Offer price per share (€) 3.1
Revenue 5.0x 118.57 1 day before 13.55%
EBITDA 11.0x 53.74 1 month before 18.68%
EBIT 18.2x 32.62 1 day after 2.31%
Earnings 14.8x 25.76 Pre-rumor -
Italy
Monthly M&A report – 144
Top 15 Italian announced deals for YTD 31 July 2008Announced Status Target company Sector Bidder company Seller company Exit multiples (x) Bid premia
1-day beforeDeal value
(€m)Revenue EBITDA P/E
16-Mar-08 L AlitaliaSpA Transportation AirFrance-KLMSA 0.3 0.3 -81.5% 1,418
24-Jun-08 P ISABrefinery(49%stake)
Energy,Mining&Utilities
OAOLukoil ERGSpA - 1,348
5-Jun-08 C WeatherInvestmentsSpA(10%stake)
TMT ApaxPartners;MadisonDearbornPartnersLLC;andTAAssociatesInc
- 1,100
2-Jun-08 P InterbancaSpA FinancialServices
GECommercialFinance
SantanderCentralHispanoSA
n/a n/a - 1,000
29-Apr-08 P BipitaliaDucatoSpA FinancialServices
AgosItafincoSpA BancoPopolare n/a n/a - 1,000
11-Mar-08 C SpeedSpA Industrials&Chemicals
Pirelli&CSpA CapitaliaSpA;GruppoBancaLeonardoSpA;IntesaSanpaoloSpA;LehmanBrothersHoldingsIncorporated;MediobancaSpA;andOneEquityPartnersLLC
- 836
27-Mar-08 C LudicaSpA Consumer GiochiPreziosiSpA;IntesaSanpaoloSpA;andClessidraSGR
3iGroupPlc 1.1 - 800
17-Jun-08 P GualaClosuresSpA Consumer DLJMerchantBankingPartners
1.7 8.5 21.1 4.9% 564
21-Jul-08 P UnileverNV(Bertollioliveoilandpremiumvinegarsbusiness)
Consumer SOSCuetaraSA UnileverPLC 1.5 - 560
13-May-08 C Duferdofin-NucorSrl(50%stake)
Industrials&Chemicals
NucorCorporation - 424
19-Feb-08 C DucatiMotorHoldingSpA(71%stake)
Industrials&Chemicals
InvestindustrialSpA 1.4 10.3 42.1 0.2 407
30-Jun-08 P TechnogymGroupSpA(40%stake)
Consumer CandoverInvestmentsplc
NerioAlessandri;andPierluigiAlessandri
2.6 - 400
13-May-08 P MarazziGroupSpA(48.84%stake)
Industrials&Chemicals
Finceramica;Permira;andPrivateEquityPartners
1.0 5.6 12.3 0.1 357
21-Jul-08 P NavigazioneMontanariSpA(33.54%stake)
Transportation G.&A.Montanari&Co
5.0 11.0 14.8 13.6% 340
23-Apr-08 C So.Ge.ParSpA Industrials&Chemicals
OutokumpuOyj 0.6 - 335
C=Completed;P=Pending;L=Lapsed
Topdeals
Italy
Monthly M&A report – 145
Top 5 Italian announced deals of the month (July 2008)Announced Status Target company Sector Bidder company Seller company Exit multiples (x) Bid premia
1-day beforeDeal value
(€m)Revenue EBITDA P/E
21-Jul-08 P UnileverNV(Bertollioliveoilandpremiumvinegarsbusiness)
Consumer SOSCuetaraSA UnileverPLC 1.5 - 560
21-Jul-08 P NavigazioneMontanariSpA(33.54%stake)
Transportation G.&A.Montanari&Co
5.0 11.0 14.8 - 340
9-Jul-08 P BancaMonteParmaSpa(49.27%stake)
FinancialServices BancaSellaHoldingSpA;CbaVitaSpA;FondazionediPiacenzaeVigevano;FondazioneMontediParma;andHDIAssicurazioniSpA
BancaMontedeiPaschidiSienaSpA
n/a n/a - 192
18-Jul-08 C Microtecnicasrl Industrials&Chemicals
StirlingSquareCapitalPartners
HamiltonSundstrandCorporation
0.8 - 100
21-Jul-08 P OfficineLovatoSpA
Industrials&Chemicals
LandiRenzoSpA FondoDimensioneNetwork
1.6 7.4 - 63
C=Completed;P=Pending;L=Lapsed Source:mergermarket
Topdeals
Italy
Monthly M&A report – 146
Expecteddeals
Situation Target company
Sector Potential bidder company
Financial adviser to bidder (B); target (T); seller (S)
Seller company Market cap/est.
value (€m)
Comments
Expecteddeal
EniaSpA Energy,Mining&Utilities
HeraSpA;andIrideSpA
MerrillLynch(B);BNPParibas(B);BancaIMI/IntesaSanpaolo(B);UniCreditGroup(B);LehmanBrothers(T);Mediobanca(T);CreditSuisse(T)
5,000 Enia,HeraandIride,thelistedItalianutilities,haveappointedadvisorsfortheirthree-waymergerproject,MilanoFinanzareported.TheunsourcedreportsaidthatMediobancawouldactasIride'sadvisor,BancaImiwouldcounselEniaandUnicreditwouldadviseHera.Aspreviouslyreported,thereportwouldcreateagroupwithturnoverof€5bn.
RumouredTakeoverTarget
BMPS(realestatenewco)
FinancialServices
AssicurazioniGeneraliSpA;BeniStabiliSpA;SansedoniSpA;andFimit
1,500 BMPS,thelistedItalianbank,hasattractedfourbiddersforitsrealestatenewco,Finanza&Mercatireported.Thereportcitedfinancialsourceswhosaidthatthebiddersforthe49%beingsoldareGenerali,Sansedoni,FimitandBeniStabili.
Expecteddeal
TiscaliSpA TMT BTGroupPlc;TheCarphoneWarehouseGroupPlc;OrangeSA;SwisscomAG;andWindTelecomunicazioniSpA
BancaIMI/IntesaSanpaolo(T);Borghesi,ColomboeAssociati(T);JPMorgan(T)
1,169 VodafonehasnolongerinterestinmakingabidforTiscali,butCarphoneWarehouse,andItalybasedWindTelecomunicazioni,andSwisscomarestillinterestedinaTiscalideal.
Expecteddeal
SnaiSpA Leisure CVCCapitalPartnersLimited
454 Snai,thelistedItalianbookmaker,hasreceivedinterestfromprivateequityfirmCVCandotherparties.
RumouredTakeoverTarget
IPISpA(AttivitaImmobilariaSpA)
FinancialServices
BancaIntermobiliare 142 IPI,thelistedItalianrealestategroup,maybethesubjectofapublicofferbytheprincipalshareholdersofBancaIntermobiliare.Thebidcancomefrom,amongothers,theSegrefamily,whoistheprincipalshareholderinIntermobiliare,whichholds29%ofIPI.OthermajorshareholdersinIntermobiliarecouldalsoformpartoftheconsortium.TheIPIboardhasproposeda€200mrightsissueforIPI.
Source:mergermarket
Pipeline of Italian expected deals
Italy
Monthly M&A report – 147
Leaguetables
value
YTD 31-Jul- 2008
House Value (€m)
Deal count
1 MerrillLynch 9,053 12
2 Rothschild 7,641 27
3 Mediobanca 7,104 23
4 Lazard 5,288 8
5 ABNAMRO 5,152 2
6 CALYON 5,052 2
7 LehmanBrothers 4,703 5
8 CreditSuisse 4,608 9
9 JPMorgan 4,419 6
10 BNPParibas 4,392 2
11 GoldmanSachs 4,344 4
12 BancaIMI/IntesaSanpaolo 4,069 10
13 UniCreditGroup 3,825 11
14 MorganStanley 3,014 11
15 UBS 2,220 8
Source:mergermarket
volume
Thefinancialadviserleaguetablesbyvalueandvolumehavebeenrunfrom01January2008to31July2008andexcludelapsedandwithdrawndeals.Thetablescoverallsectorsandarebasedonthegeographyofeitherthetarget,bidderorsellerbeingItaly
YTD 31-Jul- 2008
House Value (€m)
Deal count
1 ChiomentiStudioLegale 7,264 28
2 Gianni,Origoni,Grippo&Partners 4,808 19
3 BonelliEredePappalardo 7,793 17
4 LeganceStudioLegaleAssociato 6,898 17
5 d'UrsoGattieAssociatiStudioLegale 2,223 17
6 CliffordChance 2,552 13
7 MBL&Partners 188 13
8 Simmons&Simmons 1,233 12
9 GrimaldieAssociati 3,173 10
10 Dewey&LeBoeuf 2,621 10
11 Linklaters 11,749 9
12 ClearyGottliebSteen&Hamilton 1,025 8
13 NCTMStudioLegaleAssociato 644 8
14 FreshfieldsBruckhausDeringer 5,924 7
15 StudioLegalePavesiGittiVerzoni 2,005 6
Source:mergermarket
Top 15 financial advisers - Italy
value
YTD 31-Jul- 2008
House Value (€m)
Deal count
1 Linklaters 11,749 9
2 BonelliEredePappalardo 7,793 17
3 ChiomentiStudioLegale 7,264 28
4 LeganceStudioLegaleAssociato 6,898 17
5 FreshfieldsBruckhausDeringer 5,924 7
6 SlaughterandMay 5,637 4
7 Sullivan&Cromwell 4,902 3
8 Gianni,Origoni,Grippo&Partners 4,808 19
9 Debevoise&Plimpton 4,795 4
10 GideLoyretteNouel 4,352 3
11 ALTIUS 4,068 3
12= DeBrauwBlackstoneWestbroek 4,052 2
12= HerbertSmith/GleissLutz/Stibbe 4,052 2
14 Latham&Watkins 3,458 3
15 GrimaldieAssociati 3,173 10
Source:mergermarket
volume
Thelegaladviserleaguetablesbyvalueandvolumehavebeenrunfrom01January2008to31July2008andincludelapsedandwithdrawndeals.Thetablescoverallsectorsandarebasedonthegeographyofeitherthetarget,bidderorsellerbeingItaly
YTD 31-Jul- 2008
House Value (€m)
Deal count
1 ChiomentiStudioLegale 7,264 28
2 Gianni,Origoni,Grippo&Partners 4,808 19
3 BonelliEredePappalardo 7,793 17
4 LeganceStudioLegaleAssociato 6,898 17
5 d'UrsoGattieAssociatiStudioLegale 2,223 17
6 CliffordChance 2,552 13
7 MBL&Partners 188 13
8 Simmons&Simmons 1,233 12
9 GrimaldieAssociati 3,173 10
10 Dewey&LeBoeuf 2,621 10
11 Linklaters 11,749 9
12 ClearyGottliebSteen&Hamilton 1,025 8
13 NCTMStudioLegaleAssociato 644 8
14 FreshfieldsBruckhausDeringer 5,924 7
15 StudioLegalePavesiGittiVerzoni 2,005 6
Source:mergermarket
Top 15 legal advisers - Italy
Italy
Monthly M&A report – 148
Leaguetables
value
YTD 31-Jul- 2008
House Value (€m)
Deal count
1= ApaxPartners 1,100 1
1= MadisonDearbornPartners 1,100 1
1= TAAssociates 1,100 1
4 IntesaSanpaolo 832 2
5 Clessidra 800 1
6 Investindustrial 768 3
7 DLJMerchantBankingPartners 564 1
8 CandoverInvestments 400 1
9 PrivateEquityPartners 357 2
10 Permira 357 1
Source:mergermarket
volume
TheprivateequitybuyoutactivitytablesbyvalueandvolumearebasedonprivateequityfirmsadvisingthebidderonbuyoutdealswherethedominantgeographyofthetargetcompanyisItalyThetablesbyvalueandvolumehavebeenrunfrom01January2008to31July2008andexcludelapsedandwithdrawndeals
YTD 31-Jul- 2008
House Value (€m)
Deal count
1 Investindustrial 768 3
2 StirlingSquareCapitalPartners 240 3
3 PalladioFinanziaria 100 3
4 NatexisCape 57 3
5 IntesaSanpaolo 832 2
6 PrivateEquityPartners 357 2
7 MandarinCapitalPartners 271 2
8 Mittel 82 2
9 21Investimenti 59 2
10 OrlandoManagement 30 2
Source:mergermarket
Activity table of private equity firms on Italian buyouts
value
YTD 31-Jul- 2008
House Value (€m)
Deal count
1= CompagnieNationaleaPortefeuille/NationalePortefeuillemaatschappij
836 1
1= Eurazeo 836 1
1= LehmanBrothersPrivateEquity 836 1
1= OneEquityPartners 836 1
5 3iGroup 800 1
6 BSPrivateEquity 200 3
7 CentrobancaSviluppoImpresa 200 1
8 AltoPartners 105 1
9 AlettiPrivateEquity 63 1
10 Kohlberg&Company 35 1
Source:mergermarket
volume
TheprivateequityexitactivitytablesbyvalueandvolumearebasedonprivateequityfirmsadvisingthevendoronexitdealswherethedominantgeographyofthetargetcompanyisItalyThetablesbyvalueandvolumehavebeenrunfrom01January2008to31July2008andexcludelapsedandwithdrawndeals
YTD 31-Jul- 2008
House Value (€m)
Deal count
1 BSPrivateEquity 200 3
2 MPSVentures - 2
3= CompagnieNationaleaPortefeuille/NationalePortefeuillemaatschappij
836 1
3= Eurazeo 836 1
3= LehmanBrothersPrivateEquity 836 1
3= OneEquityPartners 836 1
7 3iGroup 800 1
8 CentrobancaSviluppoImpresa 200 1
9 AltoPartners 105 1
10 AlettiPrivateEquity 63 1
Source:mergermarket
Activity table of private equity firms on Italian exits
Italy
Monthly M&A report – 149
Trendgraphs
Italian M&A quarterly trend
value volume
Movingaveragetrendline
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
45,000
Q32008*
Q22008
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e (€
m)
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num
ber
of d
eals
Italian M&A quarterly private equity trend
value volume
0
1,000
2,000
3,000
4,000
5,000
6,000
Q32008*
Q22008
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Q42007
Q32007
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Q42003
Q32003
Q22003
Q12003
valu
e (€
m)
Italian buyouts
Italian exits
0
5
10
15
20
25
30
Q32008*
Q22008
Q12008
Q42007
Q32007
Q22007
Q12007
Q42006
Q32006
Q22006
Q12006
Q42005
Q32005
Q22005
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Q32004
Q22004
Q12004
Q42003
Q32003
Q22003
Q12003
num
ber
of d
eals
Italian buyouts
Italian exits
Italy
Monthly M&A report – 150
Trendgraphs
Italian M&A annual trends
value volume
0
20
40
60
80
100
120
2008 YTDY2007Y2006Y2005Y2004Y2003
valu
e (€
bn)
All Italian M&A
Italian buyouts
Italian exits
0
50
100
150
200
250
300
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450
2008 YTDY2007Y2006Y2005Y2004Y2003
num
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of d
eals
All Italian M&A
Italian buyouts
Italian exits
Italian M&A sector breakdown YTD 2008
value volume
Industrials and Chemicals
Consumer
Financial services
TMT
Energy, Mining & Utilities
Pharma, Medical & Biotech
Business services
Construction
Leisure
Transport
22.3%
19.8%
28.3%
8.2%
14%
2.5%0.3%0.3%
3.8%0.5%
32.1%
21.3%
5.0%
18.1%
4.1%
10.0%
3.6%
1.8%1.8%
2.3%
Industrials and Chemicals
Consumer
Financial services
TMT
Energy, Mining & Utilities
Business services
Pharma, Medical & Biotech
Construction
Leisure
Transport
Industrials and Chemicals
Consumer
Financial services
TMT
Energy, Mining & Utilities
Pharma, Medical & Biotech
Business services
Construction
Leisure
Transport
Italy
Monthly M&A report – 151
Mid-marketdeals
Top 15 Italian announced mid-market deals for YTD 31 July 2008 (€10mto€250m)Announced Status Target company Sector Target/seller
financial adviser
Target/seller legal adviser
Bidder company
Bidder financial adviser
Bidder legal adviser
Seller company
Deal value (€m)
9-Jul-08 P BancaMonteParmaSpA(49.27%stake)
FinancialServices
Rothschild Gianni,Origoni,Grippo&Partners
BancaSellaHoldingSpA;CbaVitaSpA;FondazionediPiacenzaeVigevano;FondazioneMontediParma;andHDIAssicurazioniSpA
StudioLegaleAvvocatoNicolaBianchi
BancaMontedeiPaschidiSienaSpA
192
30-Jul-08 P CassadiRisparmiodiFanoSpA(30%stake)
FinancialServices
CreditoValtellineseSpA
IntesaSanpaoloSpA
100
18-Jul-08 C Microtecnicasrl Industrials&Chemicals
Jefferies&Company
ClearyGottliebSteen&Hamilton
StirlingSquareCapitalPartners
EidosPartners
Ashurst;Gianni,Origoni,Grippo&Partners(AdvisingBancaNazionaledelLavoro;UniCreditGroup);PaviaeAnsaldo
Hamilton Sundstrand Corporation
100
21-Jul-08 P OfficineLovatoSpA
Industrials&Chemicals
Lazard StudioVitaSamoryFabbrinieAssociati
LandiRenzoSpA
EidosPartners;Mediobanca
CliffordChance FondoDimensioneNetwork
63
23-Jul-08 P MPSGestioneCreditiBancaSpA(30%stake)
FinancialServices
LeganceStudioLegaleAssociato;StudioVitaliRomagnoliPiccardieAssociati
CAFSpA;andLehmanBrothersInternational
BonelliEredePappalardo;StudioLegaleLombardiMolinarieAssociati
BancaMontedeiPaschidiSienaSpA
30
8-Jul-08 C BeautyStar;andLineaBellezza
Consumer BridgepointCapitalLimited
KPMGCorpFin
NCTMStudioLegaleAssociato
30
1-Jul-08 C ParchiEoliciUlassaiSrl(30%stake)
Energy,Mining&Utilities
SarasSpA Babcock&BrownWindPartnersLtd
30
24-Jul-08 P PGTPhotonicsSpA
Industrials&Chemicals
Lazard WeilGotshal&Manges
CyOpticsIncorporation
MariniSalsi&Associati;WilsonSonsiniGoodrich&Rosati
Pirelli&CSpA
26
27-Jun-08 C BeddingSrl Consumer StudioLegaleAvvocatoLodovicoFabrisEAssociatiDrProc
HildingAndersInternationalAB
BonelliEredePappalardo;MannheimerSwartling
25
12-Jun-08 C GPPIndustrieGraficheSpA
Industrials&Chemicals
d'UrsoGattieAssociatiStudioLegale
21InvestimentiSpA
StarPackagingSA
24
Basedonannounceddeals,includinglapsedandwithdrawnbids.Source:mergermarket
Basedondominantgeographyoftargetcompany
Italy
Monthly M&A report – 152
Mid-marketdeals
Italian M&A quarterly mid-market trend
value volume
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
Q32008*
Q22008
Q12008
Q42007
Q32007
Q22007
Q12007
Q42006
Q32006
Q22006
Q12006
Q42005
Q32005
Q22005
Q12005
Q42004
Q32004
Q22004
Q12004
Q42003
Q32003
Q22003
Q12003
valu
e (€
m)
0
10
20
30
40
50
60
Q32008*
Q22008
Q12008
Q42007
Q32007
Q22007
Q12007
Q42006
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Q22006
Q12006
Q42005
Q32005
Q22005
Q12005
Q42004
Q32004
Q22004
Q12004
Q42003
Q32003
Q22003
Q12003
num
ber
of d
eals
Movingaveragetrendline
Italy
Monthly M&A report – 153
Mid-marketleaguetables
YTD 31-Jul- 2008
House Value (€m)
Deal count
Value:
1 Rothschild 1,759 17
2 KPMGCorpFin 1,190 13
3 Mediobanca 1,062 13
4 MorganStanley 900 8
5 MerrillLynch 745 7
6 UniCreditGroup 722 5
7 CreditSuisse 489 4
8 LehmanBrothers 409 2
9 Lazard 382 4
10 BancaIMI/IntesaSanpaolo 345 2
Volume:
1 Rothschild 1,759 17
2 KPMGCorpFin 1,190 13
3 Mediobanca 1,062 13
4 MorganStanley 900 8
5 MerrillLynch 745 7
6 UniCreditGroup 722 5
7 CreditSuisse 489 4
8 Lazard 382 4
9 Ernst&Young 267 3
10 EidosPartners 209 3
Source:mergermarket
Thefinancialadviserleaguetablesbyvalueandvolumehavebeenrunfrom01January2008to31July2008andexcludelapsedandwithdrawndeals.Thetablescoverallsectorsandarebasedonthegeographyofeitherthetarget,bidderorsellerbeingItaly
Top 10 mid-market financial Advisers – Italy (€10mto€250m)
YTD 31-Jul- 2008
House Value (€m)
Deal count
Value:
1 ChiomentiStudioLegale 1,300 19
2 LeganceStudioLegaleAssociato 1,156 13
3 d'UrsoGattieAssociatiStudioLegale 809 9
4 Gianni,Origoni,Grippo&Partners 442 7
5 GrimaldieAssociati 407 6
6 Allen&Overy 390 3
7 SciumeeAssociati 357 2
8 WeilGotshal&Manges 351 3
9 BonelliEredePappalardo 319 7
10 StudioVitaSamoryFabbrinieAssociati 315 4
Volume:
1 ChiomentiStudioLegale 1,300 19
2 LeganceStudioLegaleAssociato 1,156 13
3 d'UrsoGattieAssociatiStudioLegale 809 9
4 Gianni,Origoni,Grippo&Partners 442 7
5 BonelliEredePappalardo 319 7
6 GrimaldieAssociati 407 6
7 MBL&Partners 180 6
8 StudioVitaSamoryFabbrinieAssociati 315 4
9 CliffordChance 308 4
10 Simmons&Simmons 307 4
Source:mergermarket
Thelegaladviserleaguetablesbyvalueandvolumehavebeenrunfrom01January2008to31July2008andincludelapsedandwithdrawndeals.Thetablescoverallsectorsandarebasedonthegeographyofeitherthetarget,bidderorsellerbeingItaly
Top 10 mid-market legal Advisers – Italy (€10mto€250m)
Benelux
Monthly M&A report – 154
Getronics’ non-core business still on the sale• On30July2007,KPN,thelistedDutchmultimedia
company,announceditsintentiontoacquiretheentire
sharecapitalofGetronics,theDutchITcompany,fora
considerationof€6.25pershare,valuingthecompany
at€766m.Theproposedacquisitionwouldreinforce
theICTstrategyofKPN’sbusinesssegmentandfurther
transformKPNfromacommunicationserviceproviderto
anend-to-endproviderofICTservices.
• ThesuccessofKPN’sofferwasprobablyduetothefact
thatitdivestedsomenon-corebusinessesduringthe
yearpriortotheacquisition.Sincethecompletionofthis
transactionendofOctober2007,Getronicshashowever
followedthesamepathandsoldseveralofitsbusiness.
ThesedivestmentsalsocorrespondtoKPN’sstrategyto
allowittorecoverpartoftheacquisitionconsideration
paidforGetronics.
• OneofthefirstsalesoccurredbeginningofFebruary
2008withGetronicsAustraliaPtyLimited,theAustralian
providerofworkspacemanagement,communicationand
professionalICTservices,beingsoldtoUXCLimited,
thelistedAustralianproviderofbusinesssolutions,for
anundisclosedconsideration.Thetransactionisinline
withKPN’sstrategytoeffectivelydeliverservicestoits
internationalclientsasitispartofaarrangementtocreate
apartnershipintheAustralianICTservicesmarket.
• InJuly2008followedthesaleofGetronics’North
AmericanoperationstoCompuComSystemsInc,theUS
basedIToutsourcingcompanyandportfoliocompany
ofCourtSquareCapitalPartners,theUSbasedprivate
equityfirm.TheoperationsarebasedintheUSand
Canada,withaglobalservicecentreinMexico.
• InJune2008Getronicssolda65%stakeinEverest
BV,theNetherlandsbasedproviderofsolutionsfor
databasemanagement,toTotalSpecificSolutionsBV,the
Netherlandsbasedmanufacturer,developerandsellerof
softwaresolutionsforspecificEuropeanmarkets,foran
undisclosedconsideration.
• AlsoinJune,Capgemini,thelistedFrancebased
providerofinformationandcommunicationtechnology
services,agreedtoacquireGetronicsPinkRoccadeBV,
theNetherlandsbasedproviderofapplicationssoftware
services,foratotalconsiderationof€225m.
Segebel has to choose between two offers• Segebel,theBelgianbasedinvestmentholdingcompany,
findsitselfinthemiddleofabiddingwarfollowingthe
offermadebyCentrica,theUKbasedenergycompany,
inJuly,afterElectricitedeFrance(EdF),thelistedFrance
basedenergyservicescompany,madeanofferinJune.
Segebelisa50-50jointventurecompanybetweenGDF
SuezandCentricawhichwascreatedinJune2005to
acquireacontrolling51%stakeinSocietedeProduction
d’ElectriciteSA(SPE),theBelgiumbasedpower
generationcompany.Theremaining49%isownedby
ALG,PublilumandthehistoricalSPEshareholders,being
anumberofBelgianbanksandmunicipalities.
• On20June2008,EdFmadeanofferof515mforthe
50%stakeinSegebelheldbyGdFSuez.Anadditional
considerationcouldbepaidaftertheimplementationof
thecommitmentstakenbySuezElectrabelinfavourof
theBelgianState.
• AroundEdF’sofferannouncement,Centricaexpressedits
intentiontoexerciserightoffirstrefusalonGdF’sstake
inSPE.Finally,on23July2008,Centricaplc,throughits
subsidiaryCentricaOverseasHoldings,theUKbased
investmentholdingcompany,madeanoffertoGdFSuez
forthe50%stakeitdoesnotownfor€515m.Adeferred
considerationof€105mwillbepayablebasedonthe
finaltermsandthetimingofapprovalofthePaxElectrica
2agreement,underwhichSPEwillacquireadditional
powerofftakefromBelgiannuclearpowerplants.The
transactionwillenableCentricatoreachavaluable
controllingstakeinaBelgianpowergenerationand
energyretailingcompanyandthusincreaseitsmarket
shareinBelgiumandEurope.
• ThesaleofitsequityinterestinSegebelwillallowGaz
deFrancetofulfilloneofthecommitmentsitmadeto
theEuropeanCommissionassolutionsagainstcertain
competitionissueswithintheframeworkofplansto
mergeGazdeFranceandSuez.
Benelux
Benelux
Monthly M&A report – 155
Fortis: respecting commitments towards EC, but also potential target• FollowingthecompletionoftheacquisitionofABNAmro
bySantander,FortisandRoyalbankofScotland(RBS)in
October2007,theexecutionoftheconsortium’sinitial
planand/orEuropeanCommissionobligationtoselloff
someofitsacquiredbusinessesofABNAmroisalready
wellinplace.FortismadecommitmentstotheEuropean
Commissionon3October2007aimedataddressing
theEC’sconcernsregardingconcentrationintheDutch
bankingmarketresultingfromFortis’acquisitionofcertain
ABNAMROassets.Also,thesaleofcertainABNAmro
businesseswouldhelpSantander,FortisandRBSintheir
financingfortheirinitialacquisitionoftheDutchbank.
• Therefore,inFebruary2008,Fortissoldthejustacquired
BrazilianAssetManagementbusinessofABNAmroto
Santanderforanapproximateconsiderationof€209m.
FortiswillhoweverkeepallotherLatinAmericanAsset
Managementactivities.
• InMarch2008,RBSexpresseditswillingnesstosell
ABNAmro’sAustralianandNewZealandoperations
whichcouldbevaluedataroundA$1bn.Australia’sbig
fivebanks,includingCommonwealthBankofAustralia,
NationalAustraliaBank,ANZ,StGeorgeBank,and
Westpac,werethennamedaspotentialbuyersforABN
AmrosAustralianbusiness.
• InMay,Fortis,ABNAMROandDeltaLloydhavebegun
talksoverABNAMROVerzekeringen(AAV),theDutch
insuranceservicescompany.Fortiswantstotakeover
DeltaLloyd’s51%stakeinABNAMROVerzekeringen.
• BeginningofJuly2008,FortissoldsomeotherABNAmro
assets,andmoreparticularcertaincommercialbanking
activitiesofABNAmroBusinessUnitNetherlandsto
GermanybasedDeutscheBankAGforaconsiderationof
€w709m.Theseactivitiesrepresentapproximately10%
ofthetotalDutchcommercialbankingmarketintermsof
assetsandincome.
• Fortiscouldpursuethesaleofselectedassetsinorderto
improveitsbalancesheetandmaintainitsindependence.
Manyfinancialinstitutionsarerumouredtobecircling
theseassets.Ontheotherhandhowever,Fortishas
beenrumouredofbeingtargetedbyrivalssuchasING,
theDutchproviderofbanking,insuranceandasset
managementservices.Iftherumourswoulddevelop
intospecificactions,INGwouldfacebothregulatoryand
financinghurdlestoabid.AnyFortis-INGmergerwould
certainlybereviewedbytheEuropeanCommission,given
thesizeofbothgroups,withdivestiturestoberequired
acrossallareas.Atthesametime,however,theDutch
authoritieshadchosennottoreferFortis’acquisitionof
selectedABNAmrooperationstotheECin2007,afact
thatcouldsignalflexibilityvis-a-visanING-Fortismerger.
TheoverallcompetitivenessoftheDutchretailbanking
marketcouldalsolimittheregulatoryimpactonanING-
Fortisdeal.Competitionissuescouldplayaparticular
rolewithregardstobothbanks’Beneluxoperations
duetotheoverlapintheinsurancebusiness.Butthe
Belgianmarketinparticularcouldposeproblems,since
bothFortisandINGaremajorplayersinthatcountry.
Thestrongpositionsofbothplayersinthepaymentcard
issuingsectorandtheoverlapbetweenthetwogroups’
insurancebusinessesmaynecessitateremedies.Any
takeoverofFortiswouldalsobecomplicatedbydomestic
Belgianpolitics.TherumourscameafterFortiswas
downgradedbybothMoody’sandS&P,leavingitwithan
AA3/A/AA-ratingreflectingitsrecentdifficulties.INGis
ratedAA2/AA-/AA-.
Benelux
Benelux
Monthly M&A report – 156
Dealofthemonth
Target: ABNAMROGroupBUNL(Certaincommercialbankingactivities) Announced: 02July2008
Bidder: DeutscheBankAG Deal value: € 709m
Seller: FortisNV Deal nature: Divestment
• DeutscheBank,theGermanybasedinvestmentbank,
hasagreedtoacquirecertaincommercialbanking
activitiesofABNAMROintheNetherlands,fromFortis
NV,thelistedBelgium-Dutchfinancialservicesgroup,for
acashconsiderationof€709m
• ThebusinessestobeacquiredareapartofABNAMRO
NetherlandsUnitandincludetwocorporateclientunits,
13commercialadvisorybranches,partsofHollandsche
BankUnieNV,theNetherlandsbasedbank,andthe
factoringservicescompany,IFNFinanceBV.These
businessesemployaround1,400workersaltogether
andgeneratedproformapre-taxprofitsofapproximately
€140mfor2007
• ThetransactionispartofthecommitmentthatFortis
madetotheEuropeanCommissiontodivestsomeof
itsDutchassets.Underthetermsoftheagreement,
ABNAMROwillprovideinitialcreditriskcoverage
forapproximately€10bnofRiskWeightedAssets.
Thecapitalneededforthiscoveragewillbereleased
progressively.Uponcompletionthebusinesseswill
becomepartofDeutscheBank’sGlobalTransactions
Bankingbusiness
• TheacquisitionisinlinewithDeutscheBank’sstrategyto
improveitsglobalpositionasacorporateandinvestment
bankingservicesprovider.Itissubjecttoregulatory
approvalsfromtheEuropeanCommissionandother
regulatoryauthorities
Advisers
Target/Seller Bidder
Financial MerrillLynch FortisBank
Financial DeutscheBank
Legal FreshfieldsBruckhausDeringer DeBrauwBlackstoneWestbroek
Legal HengelerMuellerNautaDutilh
PR - PR -
Benelux
Monthly M&A report – 157
TopdealsTop 15 Benelux announced deals for YTD 31 July 2008Announced Status Target company Sector Bidder company Seller company Exit multiples (x) Bid premia
1-day beforeDeal value
(€m)Revenue EBITDA P/E
29-May-08 P DistrigazSA Energy,Mining&Utilities
EniG&PBelgiumSpA
SuezSA 0.9 8.9 16.3 8.3% 4,052
13-May-08 C CorporateExpressNV
Industrials&Chemicals
StaplesIncorporated
0.5 9.3 13.6 21.6% 2,771
02-Apr-08 P FortisInvestmentManagement(50%stake)
FinancialServices
PingAnInsuranceCompanyofChinaLtd
FortisNV n/a n/a 42.2 - 2,150
12-Mar-08 C SintoniaSA(3%stake)
Construction GICSpecialInvestmentsPteLtd
SintoniaSpA - 1,000
23-Apr-08 C SchuitemaNV(73.2%stake)
BusinessServices
CVCCapitalPartnersLimited
RoyalAholdNV 0.3 7.5 19.9 -11.2% 885
17-Jul-08 P TMFGroup(majoritystake)
BusinessServices
DoughtyHanson&Co
SilverfleetCapital - 750
21-Jun-08 P ABXLOGISTICSWorldwideSA/NV
Transportation DeSammensluttedeVognmaendAS
3iGroupPlc;andFortisPrivateEquity
- 750
02-Jul-08 P ABNAMROGroupBUNL(certaincommercialbankingactivities)
FinancialServices
DeutscheBankAG FortisNV n/a n/a - 709
25-Jun-08 P InterGenNV(50%stake)
Energy,Mining&Utilities
GMRInfrastructureLimited
AIGHighstarCapitalLP
1.2 3.4 - 707
31-Mar-08 C DeRuiterSeedsGroupBV
Pharma,Medical&Biotech
MonsantoCompany
5.1 - 546
23-Jul-08 P SegebelSA(50%stake)
Energy,Mining&Utilities
CentricaOverseasHoldingsLimited
GDFSuez - 620
20-Jun-08 P SegebelSA(50%stake)
Energy,Mining&Utilities
ElectricitedeFranceSA
GDFSuez - 515
11-Jun-08 C BurlingtonResourcesNederlandPetroleum
Energy,Mining&Utilities
nvNuon ConocoPhillipsCompany
- 443
14-Apr-08 P Intervision(Services)BV;andNetMedNV
TMT ForthnetAE MyriadInternationalHoldingBV;andTeletyposCyprusLtd
1.9 7.7 16.4 - 403
31-Mar-08 C ShurgardEurope(51%stake)
BusinessServices
NewYorkStateCommonRetirementFund
PublicStorageInc 7.4 - 383
C=Completed;P=Pending;L=Lapsed Source:mergermarket
Top 5 Benelux announced deals of the month (July 2008)Announced Status Target company Sector Bidder company Seller company Exit multiples (x) Bid premia
1-day beforeDeal value(€m)
Revenue EBITDA P/E
17-Jul-08 P TMFGroup(majoritystake)
BusinessServices
DoughtyHanson&Co
SilverfleetCapital - 750
2-Jul-08 P ABNAMROGroupBUNL(certaincommercialbankingactivities)
FinancialServices
DeutscheBankAG
FortisNV n/a n/a - 709
23-Jul-08 P SegebelSA(50%stake)
Energy,Mining&Utilities
CentricaOverseasHoldingsLimited
GDFSuez - 515
23-Jul-08 C LabcoDiagnosticsNetwork(16%stake)
Pharma,Medical&Biotech
3iGroupPlc;CICFinance;NatexisPrivateEquity;andTCRCapital
7.3 - 258
3-Jul-08 C FluxysSA(12.50%stake)
Energy,Mining&Utilities
EcofinLimited Suez-TractebelSA
4.2 10.0 23.7 6.6% 228
C=Completed;P=Pending;L=Lapsed Source:mergermarket
Benelux
Monthly M&A report – 158
Topdeals
Top 5 Belgium announced deals for YTD 31 July 2008Announced Status Target company Sector Target/seller
Financial advisor
Target/seller legal Adviser
Bidder company Bidder financial adviser
Bidder legal adviser
Seller company
Deal value(€m)
29-May-08 P DistrigazSA Energy,Mining&Utilities
BNPParibas;CALYON;MerrillLynch
DeBrauwBlackstoneWestbroek;HerbertSmith/GleissLutz/Stibbe;CliffordChance;FreshfieldsBruckhausDeringer;GideLoyretteNouel;Linklaters
EniG&PBelgiumSpA
ABNAMRO;Lazard
ALTIUS;BonelliEredePappalardo;SlaughterandMay
SuezSA 4,052
02-Apr-08 P FortisInvestmentManagement(50%stake)
FinancialServices
MerrillLynch
Allen&Overy PingAnInsuranceCompanyofChinaLtd
JPMorgan White&Case FortisNV 2,150
21-Jun-08 P ABXLOGISTICSWorldwideSA/NV
Transportation UBS Allen&Overy DeSammensluttedeVognmaendA/S
FIHPARTNERS
HengelerMueller;Plesner
3iGroupPlc;andFortisPrivateEquity
750
23-Jul-08 P SegebelSA(50%stake)
Energy,Mining&Utilities
MerrillLynch
CentricaOverseasHoldingsLimited
UBS Allen&Overy GDFSuez 620
20-Jun-08 P SegebelSA(50%stake)
Energy,Mining&Utilities
MerrillLynch
FreshfieldsBruckhausDeringer
ElectricitedeFranceSA
Citigroup Loyens&Loeff;Sullivan&Cromwell
GazdeFranceSA
515
C=Completed;P=Pending;L=Lapsed Source:mergermarket
Top 5 Netherlands announced deals for YTD 31 July 2008Announced Status Target company Sector Target/seller
Financial advisorTarget/seller legal Adviser
Bidder company Bidder financial adviser Bidder legal adviser
Seller company
Deal value(€m)
13-May-08 C CorporateExpressNV
Industrials&Chemicals
ABNAMRO;DeutscheBank;GoldmanSachs;JPMorgan
Allen&Overy
StaplesIncorporated
LehmanBrothers CliffordChance;HerbertSmith/GleissLutz/Stibbe(AdvisingLehmanBrothers);WeilGotshal&Manges;WilmerHale
2,771
23-Apr-08 C SchuitemaNV(73.20%stake)
BusinessServices
Allen&Overy;HouthoffBuruma;DeBrauwBlackstoneWestbroek
CVCCapitalPartnersLimited
Rabobank CliffordChance;Loyens&Loeff
RoyalAholdNV
885
17-Jul-08 P TMFGroup(majoritystake)
BusinessServices
UBS Allen&Overy;CliffordChance
DoughtyHanson&Co
PricewaterhouseCoopers CorpFin
SkaddenArpsSlateMeagher&Flom
SilverfleetCapital
750
02-Jul-08 P ABNAMROGroupBUNL(certaincommercialbankingactivities)
FinancialServices
FortisBank;MerrillLynch
FreshfieldsBruckhausDeringer;DeBrauwBlackstoneWestbroek
DeutscheBankAG
DeutscheBank HengelerMueller;NautaDutilh
FortisNV 709
25-Jun-08 P InterGenNV(50%stake)
Energy,Mining&Utilities
LehmanBrothers
Desai&Diwanji;SidleyAustin
GMRInfrastructureLimited
Rothschild MallesonsStephenJaques;White&Case
AIGHighstarCapitalLP
707
C=Completed;P=Pending;L=Lapsed Source:mergermarket
Benelux
Monthly M&A report – 159
Pipeline of Benelux expected dealsSituation Target company Sector Potential bidder
companyFinancial advisor to bidder (B); target (T); seller (S)
Seller company Market cap/ est. value (€m)
Comments
RumouredTakeoverTarget
MobistarNV TMT FranceTelecom 3,210 Mobistar,thelistedBelgianmobilephoneoperator,issubjecttooccasionalspeculationthat51.2%shareholderFranceTelecomcouldbuytheminoritiesorsellitsstake.
RumouredTakeoverTarget
Agfa-GevaertNV Consumer GoresTechnologyGroupLLC
Lazard(T) 2,182 AgfaGevaerthasappointedFrenchbusinessbankLazardtostudyallstrategicoptions,buthasabandoneditsplantosplitupinthreeindependentlistedcompaniesduetopensioncosts.AgfahasrecentlyattractedinterestsfromTheGoresTechnologyGroupLLC.
RumouredTakeoverTarget
USGPeopleNV BusinessServices
AdeccoSA 960 SharesinDutch-listedstaffing/recruitmentcompanyUSGPeoplemoved5%duetorumouredbidinterestfromAdecco.
Source:mergermarket
Expecteddeals
Benelux
Monthly M&A report – 160
Leaguetables
value
YTD 31-Jul-08
House Value (€m)
Deal count
1 MerrillLynch 46,997 12
2 GoldmanSachs 46,860 10
3 JPMorgan 44,312 12
4 BNPParibas 43,941 5
5 UBS 43,862 12
6 DeutscheBank 43,713 6
7 Lazard 42,083 9
8 Citigroup 39,120 5
9 Moelis&Company 37,041 1
10 ABNAMRO 7,958 14
11 LehmanBrothers 4,520 5
12 CALYON 4,052 1
13 Peters&Co 3,367 1
14 ABGSundalCollier 2,700 1
15 Rothschild 1,947 9
Source:mergermarket
volume
Thefinancialadviserleaguetablesbyvalueandvolumehavebeenrunfrom01January2008to31July2008andexcludelapsedandwithdrawndeals.Thetablescoverallsectorsandarebasedonthegeographyofeitherthetarget,bidderorsellerbeingBenelux.
YTD 31-Jul-08
House Value (€m)
Deal count
1 Deloitte 418 15
2 ABNAMRO 7,958 14
3 KPMGCorpFin 1,167 13
4 MerrillLynch 46,997 12
5 JPMorgan 44,312 12
6 UBS 43,862 12
7 ING 457 12
8 PricewaterhouseCoopersCorpFin 1,720 11
9 GoldmanSachs 46,860 10
10 Lazard 42,083 9
11 Rothschild 1,947 9
12 Rabobank 1,849 9
13 CloseBrothersGroup 812 8
14 Ernst&Young 648 7
15 M&AInternational 76 7
Source:mergermarket
Top 15 financial advisers - Benelux
value
YTD 31-Jul-08
House Value (€m)
Deal count
1 Allen&Overy 50,101 38
2 Linklaters 44,199 15
3 CliffordChance 43,382 17
4 WeilGotshal&Manges 40,227 5
5 Sullivan&Cromwell 39,150 6
6 SkaddenArpsSlateMeagher&Flom 38,625 7
7 Latham&Watkins 37,333 5
8 SimpsonThacher&Bartlett 37,126 3
9 PaulWeissRifkindWharton&Garrison 37,041 1
10 FreshfieldsBruckhausDeringer 10,849 24
11 HerbertSmith/GleissLutz/Stibbe 10,736 22
12 DeBrauwBlackstoneWestbroek 9,124 22
13 White&Case 8,616 16
14 BonelliEredePappalardo 5,052 2
15 ALTIUS 4,068 6
Source:mergermarket
volume
Thelegaladviserleaguetablesbyvalueandvolumehavebeenrunfrom01January2008to31July2008andincludelapsedandwithdrawndeals.Thetablescoverallsectorsandarebasedonthegeographyofeitherthetarget,bidderorsellerbeingBenelux.
YTD 31-Jul-08
House Value (€m)
Deal count
1 Allen&Overy 50,101 38
2 Loyens&Loeff 3,322 35
3 FreshfieldsBruckhausDeringer 10,849 24
4 HerbertSmith/GleissLutz/Stibbe 10,736 22
5 DeBrauwBlackstoneWestbroek 9,124 22
6 CliffordChance 43,382 17
7 CMS 2,804 17
8 White&Case 8,616 16
9 Linklaters 44,199 15
10 NautaDutilh 1,334 13
11 HouthoffBuruma 1,322 13
12 Baker&McKenzie 680 12
13 DLAPiper 526 10
14 Simmons&Simmons 1,912 8
15 ClearyGottliebSteen&Hamilton 1,408 8
Source:mergermarket
Top 15 legal advisers - Benelux
Benelux
Monthly M&A report – 161
Leaguetables
value
YTD 31-Jul-08
House Value (€m)
Deal count
1 GICSpecialInvestments 1,121 2
2 CVCCapitalPartners 885 1
3 DoughtyHanson&Co 750 1
4 RaboPrivateEquity 300 2
5= 3iGroup 258 1
5= CICFinance 258 1
5= NatexisPrivateEquity 258 1
5= TCRCapital 258 1
9 PlatinumEquity 155 1
10 TowerBrookCapitalPartners 150 1
Source:mergermarket
volume
TheprivateequitybuyoutactivitytablesbyvalueandvolumearebasedonprivateequityfirmsadvisingthebidderonbuyoutdealswherethedominantgeographyofthetargetcompanyisBenelux.Thetablesbyvalueandvolumehavebeenrunfrom01January2008to31July2008andexcludelapsedandwithdrawndeals.
YTD 31-Jul-08
House Value (€m)
Deal count
1 GIMV 35 3
2 NoorderHuysParticipaties - 3
3 GICSpecialInvestments 1,121 2
4 RaboPrivateEquity 300 2
5 FrieslandBankInvestments 16 2
6= AACCapitalPartners - 2
6= AnteaParticipaties - 2
6= BencisCapitalPartners - 2
6= VandenEnde&DeitmersVentureCapitalPartners
- 2
10 CVCCapitalPartners 885 1
Source:mergermarket
Activity table of private equity firms on Benelux buyouts
value
YTD 31-Jul-08
House Value (€m)
Deal count
1= 3iGroup 750 1
1= FortisPrivateEquity 750 1
1= SilverfleetCapital 750 1
4 AIGHighstarCapital 707 1
5 GoodEnergiesInvestments 300 1
6 GildeInvestmentManagement 232 2
7 GIMV 100 2
8= NPMCapital 100 1
8= Sofinim 100 1
10 LloydsTSBDevelopmentCapital 93 1
Source:mergermarket
volume
TheprivateequityexitactivitytablesbyvalueandvolumearebasedonprivateequityfirmsadvisingthevendoronexitdealswherethedominantgeographyofthetargetcompanyisBenelux.Thetablesbyvalueandvolumehavebeenrunfrom01January2008to31July2008andexcludelapsedandwithdrawndeals.
YTD 31-Jul-08
House Value (€m)
Deal count
1 GildeInvestmentManagement 232 2
2 GIMV 100 2
3= AACCapitalPartners - 2
3= CVCCapitalPartners - 2
5= 3iGroup 750 1
5= FortisPrivateEquity 750 1
5= SilverfleetCapital 750 1
8 AIGHighstarCapital 707 1
9 GoodEnergiesInvestments 300 1
10= NPMCapital 100 1
10= Sofinim 100 1
Source:mergermarket
Activity table of private equity firms on Benelux exits
Benelux
Monthly M&A report – 162
Trendgraphs
Benelux M&A quarterly trend
value volume
Movingaveragetrendline
0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
90,000
100,000
110,000
Q32008*
Q 2008
Q12008
Q42007
Q32007
Q22007
Q12007
Q42006
Q32006
Q22006
Q12006
Q42005
Q32005
Q22005
Q12005
Q42004
Q32004
Q22004
Q12004
Q42003
Q32003
Q22003
Q12003
valu
e €m
0
50
100
150
200
Q32008*
Q22008
Q12008
Q42007
Q32007
Q22007
Q12007
Q42006
Q32006
Q22006
Q12006
Q4 2005
Q3 2005
Q22005
Q12005
Q42004
Q32004
Q22004
Q12004
Q42003
Q32003
Q22003
Q12003
num
ber
of d
eals
Benelux M&A quarterly private equity trend
value volume
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
18,000
Q32008*
Q22008
Q12008
Q42007
Q32007
Q22007
Q12007
Q42006
Q32006
Q22006
Q12006
Q42005
Q32005
Q22005
Q12005
Q42004
Q32004
Q22004
Q12004
Q42003
Q32003
Q22003
Q12003
valu
e €m
Benelux buyouts
Benelux exits
0
5
10
15
20
25
30
35
40
Q3 2008*
Q22008
Q12008
Q42007
Q32007
Q22007
Q12007
Q42006
Q3 2006
Q22006
Q12006
Q42005
Q32005
Q22005
Q12005
Q42004
Q32004
Q22004
Q12004
Q42003
Q32003
Q22003
Q12003
num
ber
of d
eals
Benelux buyouts
Benelux exits
Benelux
Monthly M&A report – 163
Trendgraphs
A sector breakdown YTD 2008
value volume
0
20
40
60
80
100
120
140
160
180
2008 YTD20072006200520042003
valu
e €m
All Benelux M&A
Benelux buyouts
Benelux exits
0
100
200
300
400
500
600
2008 YTD20072006200520042003
num
ber
of d
eals
All Benelux M&A
Benelux buyouts
Benelux exits
Benelux M&A sector breakdown YTD 2008
value volume
14%
3.3%
0.4%
2.4%
31%
3.3%
4%
12.1%
5.7%
3.7%
20.2%
TMT
Industrials &Chemicals
Business Services
Consumer
Construction
Energy, Mining & Utilities
Financial Services
Transportation
Pharma, Medical & Biotech
Leisure
Agriculture
7.7%
6.9%
4%
0.4%
0.8%
3.6%
17.8%
8.9%
15.8%15%
16.6%
2.4%
Industrials &Chemicals
TMT
Business Services
Consumer
Construction
Energy, Mining & Utilities
Financial Services
Transportation
Pharma, Medical & Biotech
TMT
Industrials &Chemicals
Business Services
Consumer
Construction
Energy, Mining & Utilities
Financial Services
Transportation
Pharma, Medical & Biotech
Leisure
Defence
Agriculture
Benelux
Monthly M&A report – 164
Mid-marketdeals
Benelux M&A quarterly mid-market trend
value volume
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
Q3 2008*
Q22008
Q1 2008
Q42007
Q3 2007
Q22007
Q12007
Q42006
Q32006
Q2 2006
Q1 2006
Q42005
Q32005
Q22005
Q12005
Q42004
Q32004
Q22004
Q12004
Q42003
Q32003
Q22003
Q12003
valu
e €m
0
10
20
30
40
50
Q3 2008*
Q22008
Q12008
Q42007
Q32007
Q22007
Q12007
Q4 2006
Q32006
Q2 2006
Q12006
Q42005
Q32005
Q22005
Q12005
Q4 2004
Q32004
Q22004
Q12004
Q42003
Q32003
Q22003
Q12003
num
ber
of d
eals
Movingaveragetrendline
Benelux
Monthly M&A report – 165
Mid-marketdeals
Top 10 Benelux announced mid-market deals YTD 31 July 2008(€10mto€250m)
Announced Status Target company Sector Target/seller financial adviser
Target/seller legal adviser
Bidder company Bidder financial adviser
Bidder legal adviser
Seller company Deal Value(€m)
26-Jun-08 C StokvisTapes
GroupBV
Industrials&
Chemicals
ITWPerformance
Polymers&Fluids
GildeInvestment
ManagementBV
232
28-Jun-08 P Interkabel
Vlaanderen
TMT ING HerbertSmith/
GleissLutz/
Stibbe
TelenetHoldingNV Petercam Baker&
McKenzie
230
03-Jul-08 C FluxysSA(12.50%
stake)
Energy,Mining
&Utilities
BredinPrat EcofinLimited Suez-TractebelSA 228
25-Jul-08 P Getronics
PinkRoccade
NederlandBV
TMT CapgeminiSA Rabobank CliffordChance;
Latham&
Watkins;Lazard
GetronicsNV 225
25-Apr-08 P InnogeneticsNV
(93.23%stake)
Pharma,
Medical&
Biotech
CreditSuisse Baker&
McKenzie
Solvay
Pharmaceuticals
SA
Petercam Freshfields
Bruckhaus
Deringer
224
03-Jun-08 P InnogeneticsNV Pharma,
Medical&
Biotech
Gen-Probe
Incorporated
UBS CooleyGodward
Kronish;Dewey
&LeBoeuf
(AdvisingUBS);
Linklaters
219
13-Mar-08 C 2waytrafficNV TMT OakleyCapital DLAPiper 2JSProductions
BVJefferies&Company
Freshfields
Bruckhaus
Deringer;
Setterwalls
AtharvaInvestments;andGrupoContenidos
218
14-Feb-08 P LaPerlaInternational
Living
Financial
Services
Allen&Overy MandarineGroup Brandford-Griffith
BaverezCotty
216
26-Jun-08 P Tele2Liechtenstein;
andTele2
Luxembourg
TMT Lazard Linklaters BelgacomSA Tele2AB 207
27-Mar-08 C AirEnergysa Energy,Mining
&Utilities
ABNAMRO Linklaters EnecoHoldingNV Kempen&Co CliffordChance 188
C=Completed;P=Pending;L=Lapsed Source:mergermarket
Benelux
Monthly M&A report – 166
Mid-marketleaguetables
YTD 31-Jul-08
House value (€m)
Deal count
Value:
1 CreditSuisse 693 4
2 Rothschild 621 4
3 ABNAMRO 589 7
4 CloseBrothersGroup 554 5
5 Rabobank 520 3
6 MerrillLynch 513 3
7 Petercam 454 2
8 ING 449 4
9 PricewaterhouseCoopersCorpFin 424 5
10 Deloitte 418 7
Volume:
1 ABNAMRO 589 7
2 Deloitte 418 7
3 CloseBrothersGroup 554 5
4 PricewaterhouseCoopersCorpFin 424 5
5 Ernst&Young 348 5
6 KPMGCorpFin 248 5
7 CreditSuisse 693 4
8 Rothschild 621 4
9 ING 449 4
10 Rabobank 520 3
Source:mergermarket
Thefinancialadviserleaguetablesbyvalueandvolumehavebeenrunfrom01January2008to31July2008andexcludelapsedandwithdrawndeals.Thetablescoverallsectorsandarebasedonthegeographyofeitherthetarget,bidderorsellerbeingBenelux.
Top 10 Mid-market financial advisers – Benelux €10mto€250m)
YTD 31-Jul-08
House value (€m)
Deal count
Value:
1 Allen&Overy 1,017 10
2 Linklaters 979 7
3 FreshfieldsBruckhausDeringer 946 9
4 DeBrauwBlackstoneWestbroek 791 6
5 CliffordChance 679 5
6 Baker&McKenzie 675 7
7 DLAPiper 526 7
8 HerbertSmith/GleissLutz/Stibbe 513 7
9 Loyens&Loeff 440 6
10 HouthoffBuruma 432 5
Volume:
1 Allen&Overy 1,017 10
2 FreshfieldsBruckhausDeringer 946 9
3 Linklaters 979 7
4 Baker&McKenzie 675 7
5 DLAPiper 526 7
6 HerbertSmith/GleissLutz/Stibbe 513 7
7 DeBrauwBlackstoneWestbroek 791 6
8 Loyens&Loeff 440 6
9 CliffordChance 679 5
10 HouthoffBuruma 432 5
Source:mergermarket
Thelegaladviserleaguetablesbyvalueandvolumehavebeenrunfrom01January2008to31July2008andincludelapsedandwithdrawndeals.Thetablescoverallsectorsandarebasedonthegeographyofeitherthetarget,bidderorsellerbeingBenelux.
Top 10 mid-market legal advisers - Benelux(€10mto€250m)
Monthly M&A report – 167
Iberia – British Airways merger continues the consolidation in the airline industry• Thedistressedcurrenteconomicenvironmentcaused
byacombinationofrecessionandasurgeinoilprices
mayspurconsolidationintheEuropeanairlineindustry,
followingtherecentdealactivityintheUS.TheAmerican
aviationsectorhasseenairlinecompaniesmovingto
formnewalliancesfollowingthemergerbetweenDelta
AirlinesandNorthwestAirlinesCorpinAprilthisyear.
• Onthe29ofJuly,IberiaandBritishAirways(BA),
long-termpartnersinthemarketingOneworldAlliance,
announcedplanstomerge.Theannouncementhas
beenawelcomedmoveinthemidstoftheeconomic
downturnwhichiscausingairlinestostruggletomake
profits.Bothairlinespresentedtheirfinancialresultsfor
thefirstquarterwithconsiderablelosses.BAreported
profitsof€34.2m,90%lessthaninthesameperiodof
lastyear,whileIberiareporteda€28.3moperatingloss,
comparedtoa€13.1mprofitayearearlier.
• TheIberia-BAagreement,whichhasalreadybeengranted
approvalbytheEuropeanUnion,wouldcreateoneof
thelargestairlinesintermsofincome,valuedatmore
than€16.6bn.Itwouldalsohaveoneofthelargestfleet
intheworld,witharound450aircrafts.Iberianowneeds
theapprovalfromIberia’s23%shareholderCajaMadrid,
whichlastyearvetoedanapproachfromBAandUS
privateequityfirmTPG.However,thepressureofthe
currenteconomicsituationwillprobablymeanthistime
thedealwillgothrough.
• Underthetermsoftheagreement,thecompanieswill
joinforcesinanall-stocktransaction,thoughretaining
theirseparatebrands,asAirFranceandKLMhavedone.
ThenewentitywouldhaveduallistingsontheLondon
StockExchangeFTSE100andontheMadridStock
Exchange.
• ThemovewouldbringtogetherBA’sstrengthinNorth
AmericaandAsiawithIberia’sprivilegedpositionasthe
EuropeangatewaytoLatinAmericainMadrid-Barajas.
Together,theycouldcontrolabout45%oftheslots
atHeathrowairport,themainEuropeanhubtoNorth
America.
• Asasignoftheirmutualinterestandfurthercooperation,
Iberiarecentlyacquireda2.99%stakeinBAandfinancial
exposuretoafurther6.99%,whileBAincreaseditsstake
inIberiato13.2%.Theyalreadyhaveagreementson30
code-sharingroutesandsince2005haveajointbusiness
operationbetweenLondon-Madrid-Barcelona.
• ButplansdonotstopthereforIberiaandBA,asthey
wanttotakefulladvantageofthechangingconditions
ofthesectorandtheUnitedStates-EuropeanUnion
“openskies”agreementthatenablesairlinestooperate
toandfromanyairport.Iberia’schairmanFernando
Conteannouncedthatthecompanieswouldapplyfor
USantitrustimmunitytocloseatrans-Atlanticjoint
venturewithAmericanAirlines(AA)thatwouldcompete
withDeltaAirlinesandNorthwestAirlines,whichatthe
beginningoftheyearwonanantitrustlawsexemption
toworkcloselywithAirFranceandKLMonnew
Trans-Atlanticroutes.Thealliancewouldbringgreater
opportunitiesforIberia,whichcouldconsolidatenew
routeswiththeWestcoastoftheUS.
• FurtherevidenceofconsolidationintheEuropeansector
couldyetbeseeninthelastquarterof2008withthe
potentialacquisitionofAustrianAirlinesbyoftencited
Lufthansa.TheAustriangovernment,whichownsa43%
stakeinthecompany,hasrecentlyapprovedplanstosell
itsstaketoaforeignairline.Meanwhile,thegovernment
ofSerbiahasannouncedthesaleofamajoritystakein
JATwhileAlitaliaishopingtofindasolutiontoitsfinancial
situation.Assuch,itwouldbeinterestingtoseewhether
otherbiggerplayersinthesectorwouldfollowthesteps
ofIberiaandBAandlookforshelterinalliancesandmuch
biggercombinations.Sofar,VirginAtlantichaslaunched
anintensecampaigntostopthemerger,sayingitwould
meanBA’scontrolofHeathrowairport,lesschoicefor
consumersandhigherticketprices.Ontheotherhand,
AirBerlinandcharterairlineCondonhavedroppedplans
tomergeduetosoaringprices,whileIberiahasmade
anoffertoSpanishrivalSpanairinanattempttoreduce
competence.
Iberia
Iberia
Monthly M&A report – 168
Dealofthemonth
Target: UnionFenosaSA(formerlyUnionElectricaFenosaS.A Announced: 31July2007
Bidder: GasNaturalSDGSA Deal value: €22,839m
Sellers: ACS Deal nature: Acquisition,Domestic,Public
• GasNaturalhassignedanagreementwithACStoacquire
its45.3%stakeinUnionFenosaatapriceof€18.33per
shareincash.TheagreementwithUnionFenosavalues
100%ofthecapitalofUniónFenosaat€16,757m,and
impliesapremiumof15%overtheclosingpriceof
€15.94persharesasof30July2008.Accordingtothe
termsoftheagreement,GasNaturalwillacquireinthe
firstinstancea9.99%stakeinUniónFenosaforatotal
amountof€1,675m.
• Thetransferoftheremainingshares,foratotalamount
of€5,915m,issubjecttotheauthorizationbythe
CompetitionAuthorities,aswellastotheauthorization
bytheSpanishEnergyCommission,ortheconfirmation
thatsuchauthorizationisnotrequired.Uponexceeding
the30%thresholdofUniónFenosa’svotingrights,Gas
Naturalwillbeobliged,withinonemonth,tolauncha
publictenderofferfortheremainingsharesofUnión
Fenosa,atapriceof€18.33pershareincash.
Structure:
• Thetransactionwillbeconductedviaastakepurchase
andsubsequentmandatoryoffer.
Terms:
• UnionFenosashareholderswillreceive€18.33incash
pereachshareheld.
• TheoffervaluestheentiresharecapitalofUnionFenosa
at€16,754m
• Itrepresentsapremiumof14.99%toUnionFenosa’s
closingpriceof€15.94on30July2008,thelasttrading
pricepriortotheformalannouncement.
Holdings and Irrevocable:
• GasNaturalwillacquirethe45.3%stakeheldbyACSin
UnionFenosafor€18.33pershare,valuingthestakeat
EUR7,589.7m.
• FollowingthestakepurchaseGasNaturalshalllaunchan
offerfortheremainingsharesinUnionFenosa
Conditions:
• Relevantregulatoryauthorities
Mandatory Offer:
• Unconditional
Iberia
Monthly M&A report – 165
Dealofthemonth
Exit multiples – Y/E 31/12/2007 Premium analysis
Multiples Value (€m) Offer price per share (€) 18.33
Revenue 3.8 6010.6 1 day before 14.99%
EBITDA 11.1 2062.1 1 month before 48.54%
EBIT 15.6 1466 1 day after 7.44%
Earnings 17.0 986.4 Pre-rumour n/a
Advisers
Target/Seller Bidder
Financial MediobancaSpA/Lazard Financial UBS
Legal Legal ClearyGottliebSteen&HamiltonAllen&OveryFreshfieldsBruckhausDeringer
PR - PR MaitlandLlorente&Cuenca
Mergermarket/dealReporter Intelligence
18-Jul-08 ACStosellUnionFenosastakethroughauction
17-Jul-08 UnionFenosa:EDFconfirmsinterestinSpanishmarket,E.On'scampbelievesEDFwillbuyasset
02-Jul-08 MagnumCapitaloutoftherunning
23-Apr-08 UnionFenosaisnotanalysingEnelgasdistributionnetwork,chairmansays
23-Apr-08 UnionFenosahasEUR3bnforpossibleacquisitions
Timetable and expected events
Regulatory
Offer timetable Date Notes
CNE(Spain) (dRestimated)RefSpanishEnergyRegulator
SDC(Spain) (dRestimated)Refapprovaleofstakepurchase,Spanishcompetitionauthority,1monthforphase-1decision,further3monthsifreferredtoTribunaldeDefensadeCompetenciaforphase-2
Offer Timetable
StakePurchaseCompleted
Refpurchaseof45.3%stakeinUnionfenosafromACS
CNMVfiling
CNMVapproval 15calendardaysindicativedeadline,noformaldeadline,clockstopsfrequentlyifnewdatareq,issuedsame/nexttradingday
Offerdocumentissued
max5tradingdaysfromCNMVapprovalpublication(hostileoffers),sametradingdayforfriendlyoffers
Offerperiodcommences
sametradingday
Target'sresponse 10tradingdaysfromopeningofofferperiod
Lastdayforcompetingoffer
10tradingdaysfromopeningofofferperiodincludingSaturdays
Lastdayforrevisedoffer
20tradingdaysfromopeningofofferperiod(Saturdayscountastradingdays)
ClosingDate min1month-max2monthsafterfilingofoffer(setbyofferdocument)
CNMVnotifiesresult-transactiondate
nextworkingday
Settlement 3workingdaysaftertransactiondate
Company Events
UNF3Q08results 30-Oct-08 refpublicationofthirdquarterresults
GAS3Q08results 11-Nov-08 refpublicationofthirdquarterresults
Iberia
Monthly M&A report – 166
Top 15 Iberian announced deals for YTD 31 July 2008Announced Status Target company Sector Bidder company Seller company Exit multiples (x) Bid premia
1-day before
Deal value(€m)
Revenue EBITDA P/E
31-Jul-08 P UnionFenosaSA Energy,Mining&Utilities
GasNaturalSDGSA 3.8 15.6 11.1 15.0% 22,839
7-Jan-08 C MetrovacesaSA(29.48%stake)
FinancialServices
SanahujaGroup n/a n/a 12.2 1.7% 1,709
25-Jan-08 C CompaniadeDistribucionIntegralLogistaSA(40.38%stake)
Transportation ImperialTobaccoGroupplc
0.5 13.6 17.4 5.0% 939
29-May-08 C CompaniaLogisticadeHidrocarburosSA(CLH)(25%stake)
Energy,Mining&Utilities
AMPCapitalInvestorsLimited;DeutscheBankAG;PublicSectorPensionInvestmentBoard;andStichtingPensioenfondsZorgenWelzijn
EnbridgeInc 7.3 13.5 12.2 0.1% 876
11-Jul-08 P BanSabadellPensionesEGFPSA(50%stake);BanSabadellSegurosGeneralesSAdeSegurosyReaseguros(50%stake);BanSabadellVidaS.A.deSegurosyReaseguros(50%stake)
FinancialServices
ZurichFinancialServicesGroup
BancodeSabadellSA
n/a n/a - 750
30-May-08 P InbesosSA FinancialServices
HormigonesyConstruccionesdeAragonSL
62.3 (loss) (loss) -22.2% 732
16-Jul-08 C GrupoHispaniaS.A. FinancialServices
Grupo2002 TrinitarioCasanova(privateinvestor)
650
23-Jun-08 P BancoPopularEspanolSA(3.50%stake)
FinancialServices
BlueprimeLimited GrupoInversorHispaniaSA
n/a n/a 13.7 51.5% 604
28-Jan-08 C MorganStanleyWealthManagementSV
FinancialServices
LaCaixa MorganStanley n/a n/a - 600
27-Mar-08 C AbertisInfraestructurasSA(3%stake)
BusinessServices
CriteriaCaixaCorpSA Caixad'estalvisDeCatalunya
6.9 11.0 18.0 - 368
28-Apr-08 P InvinSA Transportation AbertisInfraestructurasSA
ActividadesdeConstruccionyServiciosSA
- 348
10-Mar-08 P CompanhiaProdutoradeConservasAlimentaresSA(80%stake)
Consumer CompanhiaIndustrialdeFrutaseBebidasSA
CaixaGeraldeDepositosSA
- 318
28-Feb-08 C GamesaSolarSA Energy,Mining&Utilities
FirstReserveCorporation
GamesaCorporacionTecnologicaSA
12.1 - 314
9-Apr-08 C EnergiasdePortugalSA(2%stake)
Energy,Mining&Utilities
InternationalPetroleumInvestmentCompany
2.4 10.2 14.9 27.0% 303
10-Mar-08 C AldeasaSA(49.95%stake)
Consumer AutogrillEspanaSA ImperialTobaccoGroupplc
0.7 - 275
C=Completed;P=Pending;L=LapsedSource:mergermarket
Topdeals
Iberia
Monthly M&A report – 167
Top 5 Iberian announced deals of the month (July 2008)Announced Status Target company Sector Bidder company Seller company Exit Multiples (x) Bid Premia
1-day beforeDeal ealue
(€m)Revenue EBITDA P/E
31-Jul-08 P UnionFenosaSA Energy,Mining&Utilities
GasNaturalSDGSA 3.8 11.1 17.0 15.0% 22,839
11-Jul-08 P BanSabadellPensionesEGFPSA(50%stake);BanSabadellSegurosGeneralesSAdeSegurosyReaseguros(50%stake);BanSabadellVidaS.A.deSegurosyReaseguros(50%stake)
FinancialServices
ZurichFinancialServicesGroup
BancodeSabadellSA
n/a n/a - 750
16-Jul-08 C GrupoHispaniaSA
FinancialServices
Grupo2002 TrinitarioCasanova
- 650
7-Jul-08 P ClickairSA Transportation VuelingAirlinesS.A CobraACS;IberiaLineasAereasdeEspanaSA;NefinsaSA;Orizonia;QuercusEquitySL
- 250
31-Jul-08 C FotowatioSL(49.50%stake)
Energy,Mining&Utilities
GEEnergyFinancialServicesInc;GrupoCorporativoLandonSL
- 225
C=Completed;P=Pending;L=LapsedSource:mergermarket
Topdeals
Iberia
Monthly M&A report – 168
Pipeline of Iberian expected dealsSituation Target
companySector Financial
adviser to bidder (B); target (T); seller (S)
Potential bidder company
Seller company
Market Ceap/
est. value (€m)
Comments
ExpectedDeal
IberdrolaSA Energy,Mining&Utilities
MorganStanley(T)
ElectricitedeFranceSA/ActividadesdeConstruccionyServiciosSA
46,090 ElectricitedeFrance(EdF)anACShavehadinitialdiscussionsregardingapotentialjointofferforIberdrola.
RumouredTakeoverTarget
CintraConcesionesdeInfrastructurasdeTransporteSA
Transportation FerrovialSA 5,983 Ferrovial,thelistedSpanishinfrastructuregroup,istoacquireafurther10%stakeinCintra,thelistedSpanishinternationalinfrastructurecompany,asperanannouncementmadebyFerrovialchairmanRafaeldelPinoandalsoaconfirmationatapressconferencebychiefexecutiveJoaquinAyuso.
RumouredTakeoverTarget
GamesaCorporacionTecnologicaSA
Energy,Mining&Utilities
IberdrolaSA 4,085 Iberdrola,thelistedSpanishelectricitycompany,nowowns24%inGamesaandisrumouredtobeplanningabidforthewindpowercompany.Theofferisexpectedtobeinexcessof€20pershare.
ExpectedDeal
IberiaLineasAereasdeEspanaSA
Transportation GoldmanSachs(T);andMorganStanley(T)
BritishAirwaysandLufthansa
2,411 CajaMadrid,theleadingshareholderinIberia,wantsto"resolve"thecarrier'sfuture,itwas"necessary"to"close"theairline'sfuturewithregardtowhetheritwouldbea"partner"withBritishAirways(BA)orLufthansawhotheyseeeasanequallygood,ifnotbetter,partnerthanBA.
RumouredTakeoverTarget
SogecableSA Consumer PromotoradeInformacionesS.A.
2,290 Prisa,thelistedSpanishmediagroup,planstorestructureitsaudiovisualdivisionfollowingthecompletionofitstakeoverofSogecable.
RumouredTakeoverTarget
EndesaSA Energy,Mining&Utilities
Undisclosedbidder 35,277 MarketrumoursthatAccionacouldsellitsstakeinEndesabeforeMarch2010.
RumouredTakeoverTarget
GrupoEbroPulevaSA(sugarDivision)
Consumer Undisclosedbidder 2,153 EbroPuleva,thelistedSpanishfoodcompany,islookingtosellitssugardivision,accordingtoitschairmanAntonioHernandezCallejas,citedatthecompany’sAGMinJune.Otheroptionsincludeaninitialpublicofferingforthebusiness,oraspinoff.RecentreportshavesuggestedTereos,SuedzuckerandNordzuckerareamonginterestedparties,andthatthesugardivisionisvaluedataround€400-700m.
RumouredTakeoverTarget
InmobiliariaColonialSA
FinancialServices
Undisclosedbidder 1,456 FollowingtheexpiredagreementbetweentheshareholdersofColonialandInvestmentCorporationofDubai(ICD),theshareholderswillcontinuetoseekalternativesforthecompany.ICDhasfailedtoreachanagreementwiththecreditorsofColonial.
ExpectedDeal
SpanairSA Transportation UBS(V) IberiaLineasAereasdeEspanaSA;ViajesMarsansSA;LongstockFinancialGroup;GrupoGestairandGadairEuropeanAirlines
ScandinavianAirlinesSystems
300 Spanairowner,theScandinavianAirlinesSystems(SAS),wouldhavesetadeadlineforitssaleinthesecondquarterofthisyear.JanssontheCEOofSAS,gavenodetailsofthebidders,whichcouldincludeIberia[withunlistedrivalGestair],theprivateoperatorGadair,thePortugueseinvestmentfundLongstockFinancialandtheSpanishtravelagencyViajesMarsans.
Source:mergermarket
Expecteddeals
Iberia
Monthly M&A report – 169
Leaguetables
value
YTD 31-Jul- 2008
House Value (€m)
Deal count
1 UBS 24,209 7
2 Lazard 24,157 8
3 Mediobanca 22,839 1
4 Rothschild 4,141 6
5 Citigroup 3,830 8
6 MorganStanley 3,444 4
7 BNPParibas 3,288 6
8 JPMorgan 2,769 4
9 MerrillLynch 2,699 2
10 LehmanBrothers 1,996 4
11 CALYON 1,927 4
12 DeutscheBank 1,626 3
13 SantanderGlobalBankingandMarkets 1,285 3
14 Deloitte 1,151 18
15 N+1 1,119 3
Source:mergermarket
volume
Thefinancialadviserleaguetablesbyvalueandvolumehavebeenrunfrom01January2008to31July2008andexcludelapsedandwithdrawndeals.Thetablescoverallsectorsandarebasedonthegeographyofeitherthetarget,bidderorsellerbeingIberia
YTD 31-Jul- 2008
House Value (€m)
Deal count
1 Deloitte 1,151 18
2 Lazard 24,157 8
3 Citigroup 3,830 8
4 Ernst&Young 1,107 8
5 UBS 24,209 7
6 AtlasCapitalCloseBrothers 660 7
7 Rothschild 4,141 6
8 BNPParibas 3,288 6
9 KPMGCorpFin 650 6
10 MorganStanley 3,444 4
11 LehmanBrothers 1,996 4
12 CALYON 1,927 4
13 JPMorgan 1,096 4
14 SociosFinancieros 218 4
15 PricewaterhouseCoopers 170 4
Source:mergermarket
Top 15 financial advisers – Iberia
value
YTD 31-Jul- 2008
House Value (€m)
Deal count
1 Allen&Overy 26,411 9
2 FreshfieldsBruckhausDeringer 24,938 11
3 ClearyGottliebSteen&Hamilton 23,283 3
4 UriaMenendez 6,824 25
5 Garrigues 3,508 20
6 Linklaters 3,358 8
7 SlaughterandMay 3,233 3
8 Cuatrecasas-GoncalvesPereira,CasteloBranco
2,705 26
9 DavisPolk&Wardwell 2,479 3
10 KPMGAbogados 2,478 18
11 CliffordChance 2,176 7
12 CMS 1,358 8
13 GideLoyretteNouel 1,282 4
14= Debevoise&Plimpton 1,026 1
14= PricewaterhouseCoopers 1,026 1
Source:mergermarket
volume
Thelegaladviserleaguetablesbyvalueandvolumehavebeenrunfrom01January2008to31July2008andincludelapsedandwithdrawndeals.Thetablescoverallsectorsandarebasedonthegeographyofeitherthetarget,bidderorsellerbeingIberia
YTD 31-Jul- 2008
House Value (€m)
Deal count
1 Cuatrecasas-GoncalvesPereira,CasteloBranco
2,705 26
2 UriaMenendez 6,824 25
3 Garrigues 3,508 20
4 KPMGAbogados 2,478 18
5 Araoz&Rueda 755 15
6 FreshfieldsBruckhausDeringer 24,938 11
7 Allen&Overy 26,411 9
8 Linklaters 3,358 8
9 CMS 1,358 8
10 CliffordChance 2,176 7
11 JonesDay 524 5
12 DLAPiper 92 5
13 GideLoyretteNouel 1,282 4
14 Baker&McKenzie 102 4
15 ClearyGottliebSteen&Hamilton 23,283 3
Source:mergermarket
Top 15 legal advisers – Iberia
Iberia
Monthly M&A report – 170
Leaguetables
TheprivateequitybuyoutactivitytablesbyvalueandvolumearebasedonprivateequityfirmsadvisingthebidderonbuyoutdealswherethedominantgeographyofthetargetcompanyisIberiaThetablesbyvalueandvolumehavebeenrunfrom01January2008to31July2008andexcludelapsedandwithdrawndeals
value
YTD 31-Jul- 2008
House Value (€m)
Deal count
1 AMPCapitalInvestorsLimited 876 1
2 3iGroup 316 2
3 FirstReserveCorporation 314 1
4 InversionesIbersuizas 215 1
5 MagnumCapitalIndustrialPartners 200 1
6 DinamiaCapitalPrivado 187 2
7 Mercapital 180 1
8 N+1 160 2
9= EspiritoSantoCapital 48 1
9= SESIberiaPrivateEquity 48 1
Source:mergermarket
volume
YTD 31-Jul- 2008
House Value (€m)
Deal count
1 3iGroup 316 2
2 DinamiaCapitalPrivado 187 2
3 N+1 160 2
4 AbraxaIntegratedFinancialSolutions 38 2
5 AMPCapitalInvestorsLimited 876 1
6 FirstReserveCorporation 314 1
7 InversionesIbersuizas 215 1
8 MagnumCapitalIndustrialPartners 200 1
9 Mercapital 180 1
10 EspiritoSantoCapital 48 1
Source:mergermarket
Activity table of private equity firms on Iberian buyouts
value
YTD 31-Jul- 2008
House Value (€m)
Deal count
1 QuercusEquity 250 1
2 3iGroup 233 4
3 EspigaCapitalInversion 30 1
4 CollerCapital 23 1
5 Partrouge 17 1
6 CorporacionFinancieraAlba 16 1
7 TaldeGroup 13 1
8 ARQUESIndustries 11 1
9 CorpfinCapital 7 1
10 BaringPrivateEquityPartners - 1
Source:mergermarket
volume
TheprivateequitybuyoutactivitytablesbyvalueandvolumearebasedonprivateequityfirmsadvisingthebidderonbuyoutdealswherethedominantgeographyofthetargetcompanyisIberiaThetablesbyvalueandvolumehavebeenrunfrom01January2008to31July2008andexcludelapsedandwithdrawndeals
YTD 31-Jul- 2008
House Value (€m)
Deal count
1 3iGroup 233 4
2 QuercusEquity 250 1
3 EspigaCapitalInversion 30 1
4 CollerCapital 23 1
5 Partrouge 17 1
6 CorporacionFinancieraAlba 16 1
7 TaldeGroup 13 1
8 ARQUESIndustries 11 1
9 CorpfinCapital 7 1
10 BaringPrivateEquityPartners - 1
Source:mergermarket
Activity table of private equity firms on Iberian exists
Iberia
Monthly M&A report – 171
Trendgraphs
Iberian M&A quarterly trend
value volume
Movingaveragetrendline
0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
Q3 2008*
Q2 2008
Q1 2008
Q42007
Q32007
Q2 2007
Q1 2007
Q4 2006
Q3 2006
Q2 2006
Q1 2006
Q4 2005
Q3 2005
Q22005
Q1 2005
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Q32004
Q22004
Q1 2004
Q42003
Q32003
Q2 2003
Q1 2003
valu
e (€
m)
0
30
60
90
120
150
Q3 2008*
Q2 2008
Q1 2008
Q4 2007
Q3 2007
Q2 2007
Q1 2007
Q4 2006
Q3 2006
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Q4 2005
Q3 2005
Q2 2005
Q1 2005
Q4 2004
Q3 2004
Q2 2004
Q1 2004
Q4 2003
Q3 2003
Q2 2003
Q12003
num
ber
of d
eals
Iberian M&A quarterly private equity trend
value volume
0
1,000
2000
3000
4,000
5,000
6000
Q3 2008*
Q2 2008
Q1 2008
Q4 2007
Q3 2007
Q2 2007
Q1 2007
Q4 2006
Q3 2006
Q2 2006
Q1 2006
Q4 2005
Q3 2005
Q2 2005
Q1 2005
Q4 2004
Q3 2004
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Q1 2004
Q4 2003
Q3 2003
Q2 2003
Q12003
valu
e (€
m)
Iberian buyouts
Iberian exits
0
5
10
15
20
25
Q3 2008*
Q2 2008
Q1 2008
Q42007
Q3 2007
Q2 2007
Q1 2007
Q4 2006
Q3 2006
Q2 2006
Q1 2006
Q4 2005
Q32005
Q22005
Q12005
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Q32004
Q22004
Q12004
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Q32003
Q2 2003
Q1 2003
num
ber
of d
eals
Iberia buyouts
Iberia exits
Iberia
Monthly M&A report – 172
Trendgraphs
Iberian M&A Annual Trends
value volume
0
20
40
60
80
100
120
140
2008YTD20072006200520042003
valu
e (€
bn)
All Iberian M&A
Iberian buyouts
Iberian exits
0
100
200
300
400
500
2008YTD20072006200520042003
num
ber
of d
eals
All Iberian M&A
Iberian buyouts
Iberian exits
Iberian M&A sector breakdown YTD 2008
value volume
Industrial & Chemicals
Business services
Consumer
Energy, Mining & Utilities
Construction
Financial services
TMT
Leisure
Transportation
Pharma, Medical & Biotech
Agriculture
5.5%
0.7%
15%
2.3%
2.4%
4.8%
67.3%
1.6%1.6%
0.1%
0.8%
12.4%
11%
14.3%
9%
9%
7.1%
9.5%
5.2%18.1%
3.8%0.5%
Industrial & Chemicals
Business services
Consumer
Energy, Mining & Utilities
Construction
Financial services
TMT
Leisure
Transportation
Pharma, Medical & Biotech
Agriculture
Iberia
Monthly M&A report – 173
Mid-marketdeals
Iberian M&A quarterly mid-market trend
value volume
0
10
20
30
40
50
60
Q3 2008*
Q2 2008
Q1 2008
Q4 2007
Q3 2007
Q2 2007
Q1 2007
Q4 2006
Q32006
Q22006
Q1 2006
Q4 2005
Q32005
Q22005
Q1 2005
Q4 2004
Q3 2004
Q2 2004
Q12004
Q42003
Q32003
Q22003
Q1 2003
num
ber
of d
eals
Movingaveragetrendline
Top 5 Iberian announced mid market deals of the month (July 2008) (€10mto€250m)Announced Status Target company Sector Target/seller
financial adviserTarget/seller legal adviser
Bidder company Bidder financial adviser
Bidder legal adviser
Seller company
Deal value(€m)
31-Jul-08 C FotowatioSL(49.50%stake)
Energy,Mining&Utilities
QualitasEquityPartners
Cuatrecasas-GoncalvesPereira,CasteloBranco
GEEnergyFinancialServicesInc;GrupoCorporativoLandonSL
Allen&Overy;Garrigues
225
30-Jul-08 C Sampletest-ConsultoriaeGestaodeLaboratoriosClinicasSA
Pharma,Medical&Biotech
Ambers&Co;AdvisortoSeller:Rothschild
AdvisortoSeller:Araoz&Rueda;Cuatrecasas-GoncalvesPereira,CasteloBranco
LabcoDiagnosticsNetwork
AtlasCapitalCloseBrothers
MayerBrown;RodesySala
3iGroupPlc 220
22-Jul-08 C MBAGrupo BusinessServices
DinamiaCapitalPrivadoSCRSA;N+1PrivateEquityFundII
160
21-Jul-08 P GaleriasPrimero Consumer SupermercadosSabecoSA
CajadeAhorrosdelaInmaculadadeAragon;NozarS.A.
200
17-Jul-08 P Aquapor Energy,Mining&Utilities
AlexandreBarbosaBorgesSA;DomingosdaSilvaTeixeiraSA
AguasdePortugal,SGPS,S.A.
63
C=Completed;P=Pending;L=Lapsed Source:mergermarket
0
500
1,000
1,500
2,000
2,500
3,000
3,500
Q3 2008*
Q22008
Q12008
Q42007
Q3 2007
Q2 2007
Q1 2007
Q4 2006
Q3 2006
Q2 2006
Q1 2006
Q4 2005
Q3 2005
Q2 2005
Q1 2005
Q42004
Q3 2004
Q2 2004
Q1 2004
Q4 2003
Q32003
Q22003
Q12003
valu
e (€
m)
Iberia
Monthly M&A report – 174
Mid-marketleaguetables
YTD 31-Jul- 2008
House Value (€m)
Deal count
Value:
1 Lazard 685 5
2 AtlasCapitalCloseBrothers 660 6
3 JPMorgan 463 3
4 Deloitte 386 5
5 Ambers&Co 327 3
6 Rothschild 275 2
7 CALYON 268 2
8 BNPParibasSA 259 2
9 LehmanBrothers 250 1
10 MorganStanley 232 1
Volume:
1 AtlasCapitalCloseBrothers 660 6
2 Lazard 685 5
3 Deloitte 386 5
4 Ernst&Young 225 4
5 JPMorgan 463 3
6 Ambers&Co 327 3
7 PricewaterhouseCoopers 170 3
8 BancoEspiritoSantodeInvestimento 143 3
9 Rothschild 275 2
10 CALYON 268 2
Source:mergermarket
Thefinancialadviserleaguetablesbyvalueandvolumehavebeenrunfrom01January2008to31July2008andexcludelapsedandwithdrawndeals.Thetablescoverallsectorsandarebasedonthegeographyofeitherthetarget,bidderorsellerbeingIberia
Top 10 mid-market financial advisers – Iberia (€10mto€250m)
YTD 31-Jul- 2008
House Value (€m)
Deal count
Value:
1 Cuatrecasas-GoncalvesPereira,CasteloBranco
1,809 18
2 Garrigues 1,411 12
3 UriaMenendez 878 11
4 Araoz&Rueda 755 8
5 Allen&Overy 685 4
6 KPMGAbogados 610 4
7 FreshfieldsBruckhausDeringer 492 4
8 CMS 412 3
9 Linklaters 318 3
10 BredinPrat 258 2
Volume:
1 Cuatrecasas-GoncalvesPereira,CasteloBranco
1,809 18
2 Garrigues 1,411 12
3 UriaMenendez 878 11
4 Araoz&Rueda 755 8
5 DLAPiper 92 5
6 Allen&Overy 685 4
7 KPMGAbogados 610 4
8 FreshfieldsBruckhausDeringer 492 4
9 CMS 412 3
10 Linklaters 318 3
Source:mergermarket
Top 10 mid-market legal advisers – Iberia (€10mto€250m)
Thelegaladviserleaguetablesbyvalueandvolumehavebeenrunfrom01January2008to31July2008andincludelapsedandwithdrawndeals.Thetablescoverallsectorsandarebasedonthegeographyofeitherthetarget,bidderorsellerbeingIberia
Monthly M&A Report – 179
Metro seen as attractive target• MetsoCorporation,theFinnishmachinetechnology
giant,isreportedlyseenasanattractivebuyforprivate
equityplayers.ThisisduetoMetsooperatinginthree
segments,wherebyeachdivisioncouldbeexpandedand
soldseparatelywithintherespectivemarkets.
• Thethreedivisionsaremining,whichhassalesof €2.6bn,
thepaperdivisionreportedturnoverof€2.5bn,andthe
automationbusinesshadsalesof €698m.
• Metsothisweekstatedthatthecompanymissedprofit
estimatesandhalveditssalesgrowthtarget,andhas
seenitsstockdropasmuchas19%.Thecompany
saidrevenuesatthepulpandpapermachinerydivision
declined2%afteritmissedoutonsomelargeorders
becauseofthepostponementofclients’projects.This
iswhereapotentialopportunityforaprivateequityfirm
wouldlieasthedivisioncanbeboughtupcheap,bebuilt
up,andthenresoldtoalargerplayerinthelikesofStora
EnsoorSappi.
• Therehavebeenseveralprivateequityfirmsthathave
showninterestoverthelasttwotothreeyears,butsofar
nodealhasbeenmade.Aplausiblereasonmaybethere
isnoprivateequitycompanylargeenoughintheNordic
regiontocarryoutsuchadeal,makingitnecessaryto
looktolargerhousesintheUKortheUS.Inconnection
withthis,theBlackstoneGrouphasbeenmentionedas
apotentialbidder.Alsothe €3.7bnSwedishindustrial
group,AtlasCopco,wasnamedasapossiblebuyerof
theminingarmMetsoMinerals.Thetwocompanies
wereintalksregardingasaleafewyearsago,but
discussionswerehaltedasMetsodecidednottosplit
thecompany.TheminingmachineryoperationisMetso’s
largestandmostprofitabledivision.Itrecentlyreceived
amajorcontractinPanamaandhasbeenprojectedby
severalsourcesforconsiderablegrowth.
Swedish shipping company looking forpotential bidders
• SvithoidTankers,theSwedishshippingcompany,is
lookingforapotentialbidderforthecompany.
• ItislistedontheOMXStockholmSmallCap,butis
consideringchangingthetradingplacetoOslo’sOMX.A
salecouldbethealternativetonewlisting.Accordingto
theCEOapotentialsalepricewouldliewithinthe€26-
31.5mbracket,includingpersonnelandships.
• Svithoidwouldbeagoodtargetforcompaniesalready
withinitssegmentthatarelookingforafleetthatcan
transportmorethanonekindofcargo.Svithoidcould
benefitcompaniesoperatingbiggerships,butlooking
forasmallerfleetwithvesselsthatcanaccesssmaller
harbours.ThecompanyisconsideringtolistontheOMX
inOslo,asthereisabiggeruniverseofbothpublicand
privateshippingcompaniesinNorwaythanSweden.
Initially,itwillbelistedinbothStockholmandOslo,but
lateritislikelytoleaveStockholm.ParetoSecuritiesin
Norwayhasbeenhiredtoadviseonthismatter.There
isalsoanongoingprojecttodivestthecompany’sthree
largestvesselstofocusonvesselsunder5,000dwt
(weightwithoutfuel,cargoorcrew).Themarketfor
productandchemicaltankersbelow10,000dwtisunder
consolidation,andtheactivityinthetransportationof
vegetableoilsandbiofuelsmarketisgrowing.Svithoid
islookingtoincreasemarketsharebyeithertaking
“command”oftheongoingmarketconsolidation,orby
being“invited”byalargerplayer.
• Svithoid’sshipsaredeployedprimarilyonlong-term
contractstoindustrialcustomers.Thecompanyhasabout
220employees,includingexternalpartiesandcrews.
ShareholdersincludeKlavenessInvest(20%)andFamily
Nygrenwithcompanies,(10%).70%ofthesharesare
tradedontheOMXandhalfoftheseareownedby
Norwegianinvestors.
Nordic Capital looking to exit Unomedicalinvestment
• NordicCapitalissettodivestUnomedical’swoundcare
andophthalmicneedlesbusinessesinautumnthisyear,a
sourceclosetothesituationsaid.Theprivateequityfirm
isnotyetintalkswithanybuyersbutisreportedlyaiming
tofindinterestedpartiesacrossEurope.Thepossibledeal
willbeasmallscaletransactionasthetwobusinesses
generatearound €12.6minrevenuesaltogether.Nordic
Capital,whichowns100%ofDanish-basedUnomedical,
hasnotappointedanadviseryet.
• HealthcareoperatorsColoplastandMolnlyckemightbe
potentialbidders.Coloplastisalistedworldwidesupplier
ofmedicalproducts,includingappliancesforostomy,
continenceandwoundcare.MolnlyckeisaSwedish
manufacturerofsingle-usesurgicalandwoundcare
products.
Nordic
Nordic
Monthly M&A Report – 180
• Danish-basedColoplastisthemostlikelybuyerasitis
activelylookingtoexpanditsmarketshareinthewound
caresegment.Despiteitssmalloperations,Coloplast
mightgettheopportunitytomakeafirstmoveinthe
market.ColoplastChiefExecutiveOfficerStenScheibye
hasconfirmedthatthemanagementislookingtoexpand
boththewoundcareandtheurology/continencecare
divisions.Thecompanyhasover € 500mtospendon
acquisitions.TheCEOdidnotwanttodisclosewhichof
thetwoactivitieswouldbefirstconsolidated,although
heimpliedthattherecouldbeongoingnegotiations
involvingboththewoundcareandtheurology/continence
businesses.AskedwhetherUnomedical’sassetscouldbe
anopportunityforstrategicgrowth,hesaidhewasaware
ofthedivestments,asColoplasttookanactiverolein
advisingtheEUcommissiononthesituation.“Wewere
officiallycontactedbytheEUCommissiontogetherwith
othermarketcompetitors,”hesaid.Scheibyeaddedthat
theEUremedywasnotamajorstepasthetwoassetsfor
saleareverysmallentities.
• NordicCapitalwillproceedwiththeassetsaleasrequired
bytheEuropeanCommission,whichhascompleted
competitionreviews.FollowingtherecenttakeoverofUS-
basedhealthcaregiant,ConvaTec,NordicCapitalwilldivest
non-coreoperationswithinUnomedicaltomergewith
ConvaTec.Nordichastocompletetherequireddivestment
procedureinordertofinaliseafullmergerbetween
UnomedicalandConvaTecintheshortterm.
Nordic
Monthly M&A Report – 181
Dealofthemonth
Target: AwilcoOffshoreASA Announced: 7July2008
Bidder: ChinaOilfieldServicesLimited Deal value: €2,401m
Seller: - Deal nature: Unsolicited;recommended
ChinaOilfieldServicesLimited,thelistedChineseoilfield
servicecompany,hasagreedtoacquireAwilcoOffshore
ASA,thelistedNorwegianinternationaloffshoredrillingcontractor.
Structure• Theacquisitionoftheremainingoutstandingsharecapital
willbecarriedoutviaarecommendedcashofferunder
NorwegianLaw.
Terms• Thecashofferis€10.59perAwilcoshare.
• TheoffervaluestheentiresharecapitalofAwilcoat
approximately€1,582m.
• Theofferrepresentsapremiumof18.72%toAwilco’s
NOK71.6closingpriceon4July2008,lasttradingday
priortothefirmannouncementoftheoffer.
• Theofferrepresentsapremiumof42.38%toAwilco’s
NOK59.70closingpriceon29May2008,lasttrading
daypriortotheannouncementthatAwilcohadbeen
approachedregardingapossibleofferforthecompany.
Holdings & Irrevocables• AwilcoASandAwecoHoldingAS,representingin
aggregate40.11%oftheoutstandingsharesinAWO,
haveundertakentoaccepttheOfferwithrespecttotheir
shareholdingsinAWO.
ConditionsTheproposedacquisitionissubjectto:
• 90%acceptances.
• RelevantapprovalsreceivedfromwithinthePeoples
RepublicofChina.
• AWOcomplyingwithcertaincovenants.
• 601808EGMapproval.
Nordic
Nordic
Monthly M&A Report – 182
Dealofthemonth
Exit multiples – Y/E 31/12/07 Premium analysis
Multiples Value (EURm ) Offer price per share (€) 10.59
Revenue 17.3x 138.45 1 day before 18.68%
EBITDA 37.8x 63.57 1 month before 15.45%
EBIT 50.2x 47.85 1 day after 2.76%
Earnings 86.5x 17.81 Pre-rumor 39.56%
Advisers
Target / Seller Bidder
Financial ParetoFearnleyFonds
Financial JPMorganLehmanBrothersChinaInternationalCapitalCorporation
Legal Wiersholm Legal CliffordChanceBAHRKing&Wood
PR - PR GambitHillandKnowlton
Mergermarket/dealReporter Intelligence
20-Jun-08 AwilcodeclinescommentonreportsofCNOOCtalks
08-May-08 Awilcokeenonparticipatinginoilservicesconsolidation,industrysourcesays
Timetable and expected events
Regulatory
Offer timetable Date Notes
NDRC NationalDevelopment&ReformCommission
SAFE StateAdministrationofForeignExchange
Regulatory
OsloStockExchangeapproval
necessarypriortopublication,noformaltimeframe
Offerdocissued expectedweekof14July2008,fromcompany,uponOsloStockExchangeapproval
Offerperiodcommences
samedaytopublication
Lastdayfortarget'sresponse
1weekpriortoFCD
Lastdayforrevised/competingoffer
FCD
FCD expectedSeptember/October,fromcompany,minimum4weeks-maximum6weeks
Preliminaryresults nexttradingdaytoFCD
Finalresults 1weekor4tradingdaysafterFCD
Settlement 14calendardaysafterFCD
Nordic
Monthly M&A Report – 183
Top 15 Nordic announced deals for YTD 31 July 2008Announced Status Target company Sector Bidder company Seller company Exit multiples (x) Bid premia
1-day beforeDeal value(€m)
Revenue EBITDA P/E
31-Mar-08 C Vin&SpritAB Consumer Pernod-RicardSA GovernmentofSweden
5.1 23.3 33.9 - 5,626
24-Jul-08 P E.OnSverigeAB(44.60%stake);andStatkraftAS(Swedishhydropowerplant)
Energy,Mining&Utilities
E.ONAG StatkraftAS - 4,500
3-Jul-08 P Vasakronan FinancialServices
APFastigheterAB
GovernmentofSweden
n/a n/a 5.3 - 3,990
3-Mar-08 C ScaniaAB(16.84%stake)
Industrials&Chemicals
VolkswagenAG InvestorAB;MarcusandAmaliaWallenbergFoundation;MarianneandMarcusWallenbergFoundation;andTheKnutandAliceWallenbergFoundation
2.0 10.7 18.8 17.4% 2,863
25-Jul-08 P Steen&StromASA Consumer ABPPensionFund;andKlepierreSA
CanicaAS - 2,700
28-Feb-08 C Fiedler&LundgrenAB;HouseofPrinceAS;andJLTiedemannsTobaksfabrikAS
Consumer BritishAmericanTobaccoPlc
SkandinaviskTobakskompagniA/S
11.2 - 2,668
7-Jul-08 P AwilcoOffshoreASA Energy,Mining&Utilities
ChinaOilfieldServicesLimited
17.3 37.8 86.5 18.7% 2,401
20-Mar-08 L TietoEnatorOyj(95.60%stake)
TMT NordicCapital 0.7 10.9 (loss) 37.5% 1,238
22-Apr-08 C OceanRigASA(65.70%stake)
Industrials&Chemicals
DryShipsInc 9.9 23.3 (loss) 4.9% 1,095
14-Jul-08 P DaniscoSugarA/S Consumer NordzuckerAG DaniscoA/S - 751
8-Jan-08 C FASTSearch&TransferASA
TMT MicrosoftCorporation
7.4 (loss) (loss) 43.5% 727
23-Jun-08 P AkerYardsASA(60.80%stake)
Industrials&Chemicals
STXNorwayAS 0.2 28.3 65.7 11.6% 691
19-Mar-08 C Skiptiehf(56.32%stake)
TMT Existaehf 2.7 9.3 26.3 0.0% 650
6-Mar-08 C PapyrusAB Industrials&Chemicals
AltorEquityPartners
StoraEnsoOyj 0.3 - 640
15-Apr-08 P TinfosAS Industrials&Chemicals
ErametSA 0.6 7.8 - 592
C=Completed;P=Pending;L=Lapsed Source:mergermarket
Topdeals
Nordic
Monthly M&A Report – 184
Topdeals
Top 5 Nordic announced deals of the month (July 2008)Announced Status Target
companySector Bidder
companySeller company Exit Multiples (x) Bid premia
1-day before
Deal value(€m)Revenue EBITDA P/E
24-Jul-08 P E.OnSverigeAB(44.60%stake);andStatkraftAS(Swedishhydropowerplant)
Energy,Mining&Utilities
E.ONAG StatkraftAS - 4,500
3-Jul-08 P Vasakronan FinancialServices
APFastigheterAB
GovernmentofSweden
n/a n/a 5.3 - 3,990
25-Jul-08 P Steen&StromASA
Consumer ABPPensionFund;andKlepierreSA
CanicaAS - 2,700
7-Jul-08 P AwilcoOffshoreASA
Energy,Mining&Utilities
ChinaOilfieldServicesLimited
17.3 37.8 86.5 18.7% 2,401
14-Jul-08 P DaniscoSugarA/S
Consumer NordzuckerAG
DaniscoA/S - 751
C=Completed;P=Pending;L=Lapsed Source:mergermarket
Top 5 Nordic buyouts for YTD 31 July 2008 Announced Status Target
companySector Target/
seller financial adviser
Target/seller legal adviser
Bidder company
Bidder financial adviser Bidder legal adviser
Seller company
Deal value (€m)
20-Mar-08 L TietoEnatorOyj(95.60%stake)
TMT DeutscheBank
Dittmar&Indrenius;Roschier
NordicCapital
MorganStanley;NordeaCorporateFinance
Linklaters(AdvisingNordeaCorporateFinance);White&Case
1,238
6-Mar-08 C PapyrusAB Industrials&Chemicals
AltorEquityPartners
PoyryCapital HannesSnellman;HerbertSmith/GleissLutz/Stibbe;MannheimerSwartling
StoraEnsoOyj
640
11-Jun-08 P LindorffGroupAB(50%stake)
BusinessServices
GoldmanSachs
TaylorWessing
InvestorAB Ernst&Young MannheimerSwartling
AltorEquityPartners
580
27-Jun-08 C SvendborgBrakesA/S
Industrials&Chemicals
DoughtyHanson&Co
PricewaterhouseCoopersCorpFin
Araoz&Rueda;Danders&More;SkaddenArpsSlateMeagher&Flom
SBFynHoldingApS
460
26-Feb-08 C AGRGroupASA(68.80%stake)
Energy,Mining&Utilities
RBCCapitalMarkets
AltorOilServiceInvest
SEBEnskilda Thommessen 377
C=Completed;P=Pending;L=Lapsed Source:mergermarket
Nordic
Monthly M&A Report – 185
Topdeals
Top 5 Nordic exits for YTD 31 July 2008Announced Status Target
companySector Target/
seller financial adviser
Target/seller legal adviser
Bidder company
Bidder financial adviser Bidder legal adviser
Seller company Deal value (€m)
3-Mar-08 C ScaniaAB(16.84%stake)
Industrials&Chemicals
SEBEnskilda;Erneholm&Haskel
Hammarskiold&Co;Vinge
VolkswagenAG
UBS BowmanGilfillan;CliffordChance;Linklaters;Roschier
InvestorAB;MarcusandAmaliaWallenbergFoundation;MarianneandMarcusWallenbergFoundation;andTheKnutandAliceWallenbergFoundation
2,863
25-Jul-08 P Steen&StromASA
Consumer ABGSundalCollier;DeutscheBank
Schjodt;Vinge ABPPensionFund;andKlepierreSA
BNPParibas;SEBEnskilda;UBS
HerbertSmith/GleissLutz/Stibbe;White&Case;Wiersholm
CanicaAS 2,700
11-Jun-08 P LindorffGroupAB(50%stake)
BusinessServices
GoldmanSachs
TaylorWessing;Thommessen
InvestorAB Ernst&Young MannheimerSwartling
AltorEquityPartners
580
8-Jan-08 C SonionA/S
Industrials&Chemicals
CreditSuisse
GorrissenFederspielKierkegaard
TechnitrolInc
MorganStanley JonasBruun ErhvervsinvestNordA/S;IntermediateCapitalGroup;NordicCapital;andPolarisManagementA/S
385
19-Mar-08 C ElfaAB Consumer AccessPartners
Accura;Vinge;WistrandAdvokatbyra
DaetwylerHoldingAG
PricewaterhouseCoopersCorpFin
Lindahl IKInvestmentPartners;andJensenfamily
226
C=Completed;P=Pending;L=Lapsed Source:mergermarket
Nordic
Monthly M&A Report – 186
Pipeline of Nordic expected dealsSituation Target
companySector Potential Bidder
companyFinancial adviser to target (T); seller (S)
Sellercompany
Market cap/ est.
value (€m)
Comments
Unconfirmedtakeoverrumour
NordeaAB FinancialServices
Sampo;Swedbank;orSEB
SwedishGovernment
28,011 Sampo,theFinnishfinancialconcern,isrumouredtobekeenonbuyingtheSwedishgovernment’ssharesintheNordicbankNordea.SampohasSEK45bn(€ 4.97bn)incashafterthesaleofitsbankingdivisiontotheDanskebank.
Takeovertarget StoraEnsoOyj
Industrials&Chemicals
Undisclosedbidder 8,026 StoraEnso,theFinnishpaperandpulpgroup,isreportedtobeinstrategicnegotiations,whichmayleadtoatakeoverofthecompany.
Possiblemerger OverseasShipholdingGroupInc
Industrials&Chemicals
FrontlineLtd 1,470 FrontlinehasexpresseditswishtostarttalkswithitsUSbasedrivalOverseasShipholding(OSH),accordingtoastatementbyFrontline,theOsloandNewYorklistedandBermuda-basedshippinggroupofNorwaybillionaireJohnFredriksen,totheUSAcompetitionauthorities(SEC).ThecompanyissaidtobeinterestedtodiscussalternativeplanswiththeOSHboard,managementandmainshareholders.
Unconfirmedtakeoverrumour
ProsafeProductionPublicLimited
Energy,Mining&Utilities
BWOffshoreAS 753 ProsafeProduction,aScandinavianoilservicescompanyrecentlyspunoutofalargeservicesunit,couldbeatakeovertargetforBWOffshore,aNorwegiangroupwhichalreadyholdsaround25%.AProsafeProductionminorityshareholdernotedthatthecompanywasnowtradingatNOK23(€2.85)pershare,significantlylowerthanwhenitwasfirstlistedseparatelyearlierthisyear.TheindividualnotedthatBWOffshorewaslookingtoexpandintheFloatingProductionStorageandOffload[FPSO]sectorinwhichProsafeProductionoperates,andthatabidforthecompanynowatarelativelycheappricewouldmakealotofsenseforBWOffshore.
Possiblemerger CardoAB Industrials&Chemicals
HQFonder;LanneboFonder;andPrior&Nilsson
517 SeveralshareholdersofthelistedSwedishindustrialcompanyCardo,whichincludeHQFonder,LanneboFonderandPrior&Nilsson,areunhappywithCardo’sdevelopmentandbelievethatCardoshouldbesplitup.
Unconfirmedtakeoverrumour
VikingMooringsGroupLimited
Industrials&Chemicals
HitecVisionPrivateEquityAS
Rothschild(T)
InflexionPrivateEquityPartnersLLP
224 HitecVision,theNorwegianbuyoutgroup,hasreportedinterestinVikingMoorings.Aninformationmemorandumwasissuedlastweek,indicatinganaskingpriceofaround€224m.whichmightbea”bigprice,”butHitecVisionisinterestedintheoilandgassector,andVikingisitselfapredominantlyNorwegianbusiness.
Source:mergermarket
Expecteddeals
Nordic
Monthly M&A Report – 187
Leaguetables
value
YTD 31-Jul- 2008
House Value (€m)
Deal count
1 DeutscheBank 30,163 10
2 UBS 22,364 12
3 JPMorgan 19,684 14
4 CreditSuisse 18,499 11
5 LehmanBrothers 15,728 3
6 FIHPARTNERS 14,102 10
7 Rothschild 13,312 5
8 MorganStanley 10,298 5
9 Ernst&Young 6,568 22
10 SEBEnskilda 6,000 15
11 SG 5,957 3
12= CALYON 5,626 1
12= PKPartners 5,626 1
14 Citigroup 4,115 6
15 GoldmanSachs 4,007 5
Source:mergermarket
volume
Thefinancialadviserleaguetablesbyvalueandvolumehavebeenrunfrom01January2008to31July2008andexcludelapsedandwithdrawndeals.Thetablescoverallsectorsandarebasedonthegeographyofeitherthetarget,bidderorsellerbeingNordic
YTD 31-Jul- 2008
House Value (€m)
Deal count
2 PricewaterhouseCoopersCorpFin 1,158 20
3 SEBEnskilda 6,000 15
4 JPMorgan 19,684 14
5 DanskeMarketsCorporateFinance 885 13
6 KPMGCorpFin 328 13
10 UBS 22,364 12
7 Deloitte 467 12
8 CreditSuisse 18,499 11
9 DeutscheBank 30,163 10
11 FIHPARTNERS 14,102 10
12 D.Carnegie&Co 1,324 10
13 NordeaCorporateFinance 567 10
14 Lazard 1,080 9
15 HandelsbankenCapitalMarkets 2,598 8
15 ABGSundalCollier 777 6
Source:mergermarket
Top 15 financial advisers – Nordic
value
YTD 31-Jul- 2008
House Value (€m)
Deal count
1 Vinge 26,738 46
2 Linklaters 24,975 24
3 Roschier 18,047 13
4 Allen&Overy 16,768 8
5 KromannReumert 16,254 11
6 Hammarskiold&Co 16,204 5
7 Plesner 14,291 17
8 FreshfieldsBruckhausDeringer 14,289 9
9 NortonRose 13,297 3
10 CliffordChance 13,247 13
11 Ashurst 13,027 3
12 ArthurCox 13,023 2
13= A&LGoodbody 13,007 1
13= MathesonOrmsbyPrentice 13,007 1
15 Gernandt&Danielsson 10,578 9
Source:mergermarket
volume
Thelegaladviserleaguetablesbyvalueandvolumehavebeenrunfrom01January2008to31July2008andincludelapsedandwithdrawndeals.Thetablescoverallsectorsandarebasedonthegeographyofeitherthetarget,bidderorsellerbeingNordic
YTD 31-Jul- 2008
House Value (€m)
Deal count
1 Vinge 26,738 46
2 MannheimerSwartling 3,014 40
3 Linklaters 24,975 24
4 White&Case 9,262 20
5 Plesner 14,291 17
6 Thommessen 3,664 16
7 Wiersholm 8,006 15
8 Roschier 18,047 13
9 CliffordChance 13,247 13
10 Selmer 1,158 13
11 HannesSnellman 993 12
12 Bech-Bruun 812 12
13 WistrandAdvokatbyra 570 12
14 KromannReumert 16,254 11
15 Lindahl 1,280 11
Source:mergermarket
Top 15 legal advisers – Nordic
Nordic
Monthly M&A Report – 188
Leaguetables
value
YTD 31-Jul- 2008
House Value (€m)
Deal count
1 AltorEquityPartners 1,017 3
2 Investor 580 1
3 DoughtyHanson&Co 460 1
4 3iGroup 270 2
5 SegulahAdvisor 250 2
6 TritonPartners 232 1
7 PolarisManagement 121 2
8 AtorkaGroup 106 1
9 Andlinger&Company 90 1
10 NordicCapital 81 3
Source:mergermarket
volume
TheprivateequitybuyoutactivitytablesbyvalueandvolumearebasedonprivateequityfirmsadvisingthebidderonbuyoutdealswherethedominantgeographyofthetargetcompanyisNordicThetablesbyvalueandvolumehavebeenrunfrom01January2008to31July2008andexcludelapsedandwithdrawndeals
YTD 31-Jul- 2008
House Value (€m)
Deal count
1 CapManGroup 11 7
2 AltorEquityPartners 1,017 3
3 NordicCapital 81 3
4 LitorinaKapital 42 3
5 Reiten&Co 30 3
6 SenticaPartners 26 3
7 EqvitecPartners - 3
8 3iGroup 270 2
9 SegulahAdvisor 250 2
10 PolarisManagement 121 2
Source:mergermarket
Activity table of private equity firms on Nordic buyouts
value
YTD 31-Jul- 2008
House Value (€m)
Deal count
1 Investor 2,863 1
2 Canica 2,700 1
3 AltorEquityPartners 580 1
4= ErhvervsinvestNord 385 1
4= IntermediateCapitalGroup 385 1
4= NordicCapital 385 1
4= PolarisManagement 385 1
8 IKInvestmentPartners 226 3
9 EQTPartners 170 1
10 Stodir 106 1
Source:mergermarket
volume
TheprivateequityexitactivitytablesbyvalueandvolumearebasedonprivateequityfirmsadvisingthevendoronexitdealswherethedominantgeographyofthetargetcompanyisNordicThetablesbyvalueandvolumehavebeenrunfrom01January2008to31July2008andexcludelapsedandwithdrawndeals
YTD 31-Jul- 2008
House Value (€m)
Deal count
1 IKInvestmentPartners 226 3
2 CapManGroup - 3
3 BrainHeartCapital 43 2
4 SenticaPartners - 2
5 Investor 2,863 1
6 Canica 2,700 1
7 AltorEquityPartners 580 1
8= ErhvervsinvestNord 385 1
8= IntermediateCapitalGroup 385 1
8= NordicCapital 385 1
8= PolarisManagement 385 1
Source:mergermarket
Activity table of private equity firms on Nordic exits
Nordic
Monthly M&A Report – 189
Trendgraphs
Nordic M&A quarterly trend
value volume
Movingaveragetrendline
0
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Nordic M&A quarterly private equity trend
value volume
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valu
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Q4 2003
Q3 2003
Q22003
Q1 2003
num
ber
of d
eals
Nordic buyouts
Nordic exits
Nordic
Monthly M&A Report – 190
0
100
200
300
400
500
600
700
800
2008 YTD20072006200520042003
num
ber
of d
eals
All Nordic M&A
Nordic buyouts
Nordic exits
Trendgraphs
Nordic M&A annual trends
value volume
0
20
40
60
80
100
2008 YTD20072006200520042003
valu
e (€
bn)
All Nordic M&A
Nordic buyouts
Nordic exits
Nordic M&A sector breakdown YTD 2008
value volume
Industrial and Chemicals
TMT
Consumer
Business services
Transportation
Financial services
Energy, Mining & Utilities
Construction
Pharma, Medical & Biotech
Leisure
Agriculture23.9%2.9%1%
8.9%
18.3%
0.1%
0.3%
20.7%
0.9%
0.4%
22.7%
14.3%
12%
5.9%
6.2%
6.4%
5.6%
4.5%
27.2%
15.7%
1.4% 0.8%
Industrial and Chemicals
TMT
Consumer
Business services
Transportation
Financial services
Energy, Mining & Utilities
Construction
Pharma, Medical & Biotech
Leisure
Agriculture
Nordic
Monthly M&A Report – 191
Top 5 Nordic announced mid-market deals of the month (June 2008) (€10mto€250m)Announced Status Target company Sector Target/seller
financial adviser
Target/seller legal adviser
Bidder company
Bidder financial adviser
Bidder legal adviser
Seller company
Deal value(€m)
22-Jul-08 P GunneboIndustrierAB
Industrials&Chemicals
HandelsbankenCapitalMarkets
Gernandt&Danielsson
SegulahStellataHoldingAB
D.Carnegie&Co
Cederquist;Hammarskiold&Co(AdvisingNordicMezzanine)
250
9-Jul-08 C MarathonOilCorporation(Heimdalandrelatedassets)
Energy,Mining&Utilities
ScotiaCapital Centricaplc MarathonOilCorporation
239
1-Jul-08 P SPRON FinancialServices
KaupthingBankhf
Logos 147
3-Jul-08 P VikSandvikAS BusinessServices
Notdisclosed Notdisclosed WartsilaCorporation
Notdisclosed Notdisclosed Sandvikfamily
132
7-Jul-08 P EDBGruppenA/S
TMT ABNAMRO GorrissenFederspielKierkegaard
CidronITA/S NordeaCorporateFinance
Accura IBMDanmarkA/S
81
C=Completed;P=Pending;L=Lapsed Source:mergermarket
Mid-marketdeals
Nordic M&A quarterly mid-market trend
value volume
0
500
1000
1500
2000
2500
3000
3500
4000
4500
5000
Q3 2008*
Q2 2008
Q1 2008
Q4 2007
Q3 2007
Q2 2007
Q1 2007
Q4 2006
Q3 2006
Q2 2006
Q1 2006
Q4 2005
Q3 2005
Q22005
Q1 2005
Q4 2004
Q3 2004
Q2 2004
Q1 2004
Q42003
Q32003
Q22003
Q1 2003
valu
e (€
m)
0
10
20
30
40
50
60
70
80
90
Q3 2008*
Q2 2008
Q1 2008
Q4 2007
Q3 2007
Q2 2007
Q1 2007
Q42006
Q3 2006
Q2 2006
Q1 2006
Q4 2005
Q3 2005
Q2 2005
Q1 2005
Q4 2004
Q3 2004
Q2 2004
Q1 2004
Q4 2003
Q3 2003
Q22003
Q1 2003
num
ber
of d
eals
Nordic
Monthly M&A Report – 192
Mid-marketleaguetables
YTD 31-Jul- 2008
House Value (€m)
Deal count
Value:
1 D.Carnegie&Co 782 5
2 PricewaterhouseCoopersCorpFin 692 7
3 SEBEnskilda 674 8
4 NordeaCorporateFinance 567 8
5 Lazard 556 4
6 Pareto 547 4
7 Deloitte 467 5
8 Citigroup 461 3
9 AccessPartners 419 5
10 CreditSuisse 419 2
Volume:
1 SEBEnskilda 674 8
2 NordeaCorporateFinance 567 8
3 Ernst&Young 346 8
4 PricewaterhouseCoopersCorpFin 692 7
5 D.Carnegie&Co 782 5
6 Deloitte 467 5
7 AccessPartners 419 5
8 Lazard 556 4
9 Pareto 547 4
10 HandelsbankenCapitalMarkets 365 4
Source:mergermarket
Thefinancialadviserleaguetablesbyvalueandvolumehavebeenrunfrom01January2008to31July2008andexcludelapsedandwithdrawndeals.Thetablescoverallsectorsandarebasedonthegeographyofeitherthetarget,bidderorsellerbeingNordic
Top 10 mid-market financial advisers – Nordic (€10mto€250m)
YTD 31-Jul- 2008
House Value (€m)
Deal count
Value:
1 Vinge 1,376 17
2 CliffordChance 930 6
3 MannheimerSwartling 734 14
4 Linklaters 585 8
5 WistrandAdvokatbyra 555 4
6 WikborgRein&Co 482 6
7 ClearyGottliebSteen&Hamilton 460 3
8 Gernandt&Danielsson 452 6
9 Thommessen 424 6
10 Lindahl 404 5
Volume:
1 Vinge 1,376 17
2 MannheimerSwartling 734 14
3 Linklaters 585 8
4 CliffordChance 930 6
5 WikborgRein&Co 482 6
6 Gernandt&Danielsson 452 6
7 Thommessen 424 6
8 Lindahl 404 5
9 HannesSnellman 353 5
10 WistrandAdvokatbyra 555 4
Source:mergermarket
Thelegaladviserleaguetablesbyvalueandvolumehavebeenrunfrom01January2008to31July2008andexcludelapsedandwithdrawndeals.Thetablescoverallsectorsandarebasedonthegeographyofeitherthetarget,bidderorsellerbeingNordic
Top 10 mid-market legal advisers – Nordic (€10mto€250m)
Monthly M&A report – 193
CEE and CIS
Echoes of Thatcher era in Eastern Europe• Privatise,privatise,privatise!Themantrawhich,under
MargaretThatcher’sleadership,transformedthe
landscapeofBritishindustryforeverinthe1980sappears
tobegrippingEasternEurope.Moldovaplanstoselloff
mostofTutun-CTC,atobaccomanufacturerwhilePivovar
Nachod,theCzechbrewer,isunderoffer.Meanwhile,
Romaniacontinuestostrugglewithitshighlypoliticised
disposalofAntibiotice,thelistedgenericsmanufacturer.
Providingtheexceptionthatprovestherule,Modern
TimesGroupofSwedenhassignedanagreementtobuy
Bulgaria’sNovaTelevisia.
• Moldova’sPublicOwnershipAgencyhasannounceditis
planningtosella91%stakeinTutun-CTC,thetobacco
producer,accordingtoDorinaCarburean,theagency’s
director.
• Carbureansaid“thestartingpriceforthe91%stake
isMLD300m(€20m)”andthetenderisscheduledfor
September22toSeptember26.Acompanysourceat
Tutun-CTCsaidturnoverfor2007wasMLD500madding
that“thevalueofTutun’sassetsstandsatMLD206m,
andweconsiderthatthecompany’smarketvalueisat
leastMLD500m”.
• BritishAmericanTobacco’sMoldovanoperationruled
itselfoutofthebiddingprocessonthegroundsthatit
alreadyownsanearbyUkranianfactory.Thiscomes
despiteanassertionbyaTutun-CTCsourcethatBAT
andJapanTobaccoInternationalwereinterestedinthe
privatisation.AJTIspokespersonsaiditisnotcompany
policytocommentonmattersconcerningmarket
strategy.
• TherewasnoreluctancefromLIFandPivovarHolbain
theCzechRepublic.Thetwocompanieshavesubmitted
writtenofferstobuy100%ofCzechbrewerPivovar
Nachod,whichisownedbytheNachodmunicipal
authority,asreportedbyHospodarskeNoviny.
• Accordingtothereport,Nachodcouncillorswilldecideon
thepossiblesaleofPivovaratameetingon8September
2008.Holba,aprivately-ownedCzechbrewer,hasoffered
CZK160m(€6.7m)forNachod,whileLIF,theCzech
privately-ownedbrewinggroup,hasofferedCZK135m.
• Romania’s highlypoliticizedsell-offofstate-owneddrug
makerAntibioticeIasimaybebackontrackbytheendof
theyear,orearlyin2009accordingtoasourcecloseto
thecompany.
• Thegovernmentdecidedtosuspendtheprivatisation,
scheduledforMarch18thisyear,inFebruaryafterthe
workers’unionofAntibioticewonacourtannulment
ofthelawthatenvisagedanopenbiddingprivatisation
methodforthefirm.
• AVAS,thestateassetsrecoveryagencybegan
procedurestosellits53%stakeinAntibioticelatelast
year,forastartingpriceofabout€136m.Anexecutive
atAlapis,whichhadbidforAntibioticepriortothe
suspensionoftheselloff,saidthecompanycouldbe
interestedinafuturebid.“Ifthesalebeginsagainwewill
certainlylookatit”hesaid.“However,therearenoactive
talksbetweenusandAntibioticeatthemoment”he
added.
• Anotherinterestedpartyisaconsortiumleadby
Biofarm,alistedRomanianpharmaceuticalscompany.
TheconsortiumismadeupofSIFOltenia,SIFBanat-
Crisana,SIFMoldova,aswellasSSIFBroker(aRomanian
brokeragehouse)andDumitruTudor(aRomanian
investor),oneofthemainshareholdersinBiofarm.
• TeodorCiurezu,vice-chairmanatSIFOltenia,criticised
AVAS’s“unilateraldecision”ofgoingforanopentender,
arguingthatthismethodofferednoguaranteefor
Antibiotice’sfutureasagenericsmaker.
• ManymembersofRomania’sparliamentwhoshared
Ciurezu’sdoubtscalledforahealthsub-commissionto
investigatetheprivatisationofwhattheydescribedas
“thelastjewelofRomania’spharmaceuticalssector.”
• Sweden’s ModernTimesGroup,theentertainment
broadcastingcompany,hadnosuchconcernsasitsigned
anagreementtoacquire100%ofNovaTelevisiaBulgaria
for€620mincash,onacashanddebtfreebasis.JP
MorganisactingasadvisortoMTG.
• MTGplanstofinancethedealfromexistingavailable
liquidfundsandfromnewdebtfinancing,andisinthe
processofarrangingapproximatelySEK3bn(€317m)of
additionaldebtfundingtofullyfinancethetransaction.
Thedealissubjecttoapprovalbyrelevantauthoritiesandis
expectedtobecompletedwithinaboutthreemonths.
• MTG’sstraightforwardacquisitionstandsoutinamonth
ofprivatisationfeverinEasternEurope.
Forthepurposesofthisreport Russiahasbeenexcludedinthedefinitionof CEE/CIS.
Monthly M&A report – 194
Dealofthemonth
Target: NovaTelevisionBulgaria Announced: 31July2008
Bidder: ModernTimesGroupMTGAB Deal value: €620m
Seller: AtennaGroup Deal nature: Recommended;Crossborder
• ModernTimesGroupMTGAB(MTG),thelistedSweden
basedbroadcastinggroup,hasagreedtoacquireNova
TelevisionBulgaria,theBulgariabasedbroadcaster,from
AntennaGroup,theGreecebasedradioandtelevision
group,foracashconsiderationof€620m($965.7m),ona
netdebt/cashfreebasis.
• Theconsiderationissubjecttoclosingadjustments.
ThetransactionwillbefundedbyMTG’sinternalcash
resourcesandfromthenewdebtfinancing.MTGis
arrangingapproximatelySEK3bn(€316.9m)ofadditional
debtfundingtosecurethefinancingofthetransaction.
MTGisoperatingDiemachannelsgroupinBulgaria
throughits50%controllinginterestinBalkanMedia
GroupLimited,whichwasacquiredfor€11.6min2007.
TheacquisitionispartofMTG’sstrategytoexpandits
operationinemergingmarketsandextenditsmulti
channelmulticountrybusinessmodel.
• Theacquisitionissubjecttoapprovalofregulatory
authoritiesanditisexpectedtobecompletedwithinthe
nextthreemonthsaftertheannouncement
CEE and CIS
Advisers
Target/Seller Bidder
Financial MorganStanley Financial JPMorgan
Legal CliffordChance Legal -
PR BrunswickGroup PR -
Monthly M&A report – 195
Top 15 CEE & CIS announced deals for YTD 31 July 2008Announced Status Target company Sector Bidder company Seller company Exit multiples (x) Bid Premia
1-day beforeDeal value
(€m)Revenue EBITDA P/E
18-Jun-08 P ZentivaNV(75.12%stake) Pharma,Medical&Biotech
Sanofi-AventisSA 3.4 16.1 31.2 0.8% 1,741
2-May-08 L ZentivaNV(80.90%stake) Pharma,Medical&Biotech
AnthiaroseLimited 3.1 14.5 27.0 3.1% 1,659
5-Feb-08 C AESEkibastuzLLP;andMaikubenWestLLP
Energy,Mining&Utilities
KazakhmysPlc AESCorporation 8.0 0.0% 1,011
20-Jun-08 P JSCKazkommertsbank(17.12%stake)
FinancialServices
AlnairCapital n/a n/a 18.1 0.0% 933
10-Mar-08 C MOLHungarianOilandGasPublicLimitedCompany(8%stake)
Energy,Mining&Utilities
OmanOilCompanySAOC
2.8 8.1 41.9 9.8% 842
13-Jun-08 C EuromedicInternationalNV
Pharma,Medical&Biotech
AresLifeSciences;andMerrillLynchGlobalPrivateEquity
WarburgPincusLLC
0.9 7.0 9.2 10.2% 831
18-Jan-08 C VakaruSkirstomiejiTinklai(97.10%stake)
Energy,Mining&Utilities
LEOLT NDXEnergija 5.8 28.6 0.0% 800
18-Jan-08 C LietuvosEnergijaAB(96.40%stake)
Energy,Mining&Utilities
LEOLT GovernmentofLithuania
2.1 11.9 53.0 -6.2% 706
31-Jul-08 P NovaTelevisionBulgaria TMT ModernTimesGroupMTGAB
AntennaGroup 0.0% 620
11-Feb-08 P OTPGaranciaInsuranceLtd
FinancialServices
GroupamaSA OTPBankPlc n/a n/a 0.0% 612
18-Jan-08 C RytuSkirstomiejiTinklaiAB(71.35%stake)
Energy,Mining&Utilities
LEOLT GovernmentofLithuania
1.8 12.7 92.9 18.8% 607
4-Feb-08 C Pravex-BankJointStockCommercialBank
FinancialServices
IntesaSanpaoloSpA
n/a n/a 149.5 0.0% 516
11-Mar-08 C CzechCoalGroup(80%stake)
Energy,Mining&Utilities
CzechCoalGroup 0.0% 459
12-Feb-08 C PivovarnaLasko(58%stake)
Consumer InfondHolding;andFidina
5.8% 438
17-Mar-08 P JSCBankCenterCredit(29.99%stake)
FinancialServices
KookminBank n/a n/a 0.0% 400
C=Completed;P=Pending;L=Lapsed Source:mergermarket
Topdeals
CEE and CISCEE and CIS
Monthly M&A report – 196
TopDeals
CEE and CIS
Top 5 CEE & CIS announced deals of the month (July 2008)Announced Status Target company Sector Bidder company Seller company Exit multiples (x) Bid Premia
1-day beforeDeal value
(€m)Revenue EBITDA P/E
31-Jul-08 P NovaTelevisionBulgaria TMT ModernTimesGroupMTGAB
AntennaGroup(Greece)
- 620
7-Jul-08 C LimnotexDevelopmentsLtd(25%stake)
TMT VimpelCom CrowellInvestmentsLimited
- 357
30-Jul-08 P BelarusTelecommunicationsNetwork(80%stake)
TMT TurkcellIletisimHizmetleriAS
GovernmentofBelarus
390.6 - 321
22-Jul-08 P AegonPTESA(49.70%stake)
FinancialServices
AegonWoningenNovaBV
BREBankSA n/a n/a - 150
28-Jul-08 P TopToneMediaHoldingsLimited(TV2channelandRingTVassets)(80%stake)
TMT CentralEuropeanMediaEnterprisesLtd
TopToneMediaHoldings
- 109
C=Completed;P=Pending;L=Lapsed Source:mergermarket
Monthly M&A report – 197
TopDeals
CEE and CIS
Top 5 Croatian announced deals for YTD 31July 2008Announced Status Target company Sector Target/seller
financial adviser
Target legal adviser
Bidder company
Bidder financial adviser
Bidder legal adviser
Seller company Deal value (€m)
30-Apr-08 C EuropaMilDOO Consumer WolfTheiss LUKOILEuropeHoldingsBV
WolfTheiss 40
26-Jun-08 C EuroFoodMarktdoo
Consumer Swisslion-Takovodoo
20
28-Apr-08 C ZagrebPlakatdoo(49%stake)
TMT Mediadoo MunicipalityofZagreb
15
8-Jul-08 C ArborInformatikadoo(70%stake)
TMT AssecoSouthEasternEuropeSA
11
7-Jan-08 C ZdenkaMlijecniProizvodidoo
Consumer CautioNasice;andGranoliodoo
IndependentAdvisor
Savoric&Partners
HrvatskaFondzaPrivatizacijuHFP(CroatianPrivatisationFund)
10
C=Completed;P=Pending;L=Lapsed Source:mergermarket
Top 5 Azerbaijan announced deals for YTD 31 July 2008Announced Status Target company Sector Target/
seller financial adviser
Target legal adviser
Bidder company Bidder financial adviser
Bidder legal adviser
Seller company Deal value (€m)
22-Feb-08 C KarasuOperatingCompany(85%stake);andKuraValleyOperatingCompany(80%stake)
Energy,Mining&Utilities
Notdisclosed
Notdisclosed
GlobalInvestmentEnergy
NationsPetroleumCompanyLtd
229
12-Feb-08 C AzercellTelekomBM(35.70%stake)
TMT AzertelTelekomunikasyonveYatirimDisTicaret
Baker&McKenzie
123
15-Apr-08 P Baku-CastelBreweryCompany(92.80%stake)
Consumer FreshfieldsBruckhausDeringer
JSCBaltikaBreweries
BrasseriesInternationalesHoldingLtd
32
18-Feb-08 C ConsolidatedSupplyManagementLtd(AzerbaijanandTrinidadbasedoilandgaslogisticsoperations)
Transportation ASCOplc KPMGCorpFin
ConsolidatedSupplyManagementLtd
20
2-Jul-08 C NikoilInvestmentCommercialBank(53.10%stake)
FinancialServices
TopazInvestments 9
C=Completed;P=Pending;L=Lapsed Source:mergermarket
Monthly M&A report – 198
ExpectedDeals
CEE and CIS
Situation Target company
Sector Potential bidder company
Financial adviser to bidder (B); target (T); seller (S)
Seller company Market cap/ est. value
(€m)
Comments
Takeovertarget GlobeTradeCentreSA
Construction KardanNV 2,323 IsraelilistedinvestmentandholdingcompanyKardanNVisconsideringanacquisitionoftheremainingstakelistedPolishrealestatecompanyGTC.KardanNVcurrentlyholds64.3%ofGTC.SofarnoinformationisavailableonthepriceoftheremainingsharesofGTC,oronwhetherthetransactionwouldinvolveanexchangeofshares.
Takeovertarget PoslovnisistemMercatordd
Consumer InfondHolding;PivovarnaLasko;andIstrabenz
1,224 InfondHolding,thelistedSlovenianprivateequityfund,ispreparingtolaunchamandatorypublicofferfortherestofsharesinMercator,thelistedfoodretailer.Infondhasa25%stake,whilePivovarnacontrolsastakeof20.76%intheretailer,aspostedontheLjubljanaStockExchange.
SignificantM&A StoczniaGdyniaSA;andStoczniaSzczecinskaNowa
IndustrialUnionofDonbassCorporation;PolishShipbuildingCompany;andMostostalChojniceSA
StateTreasuryofPoland
640 ThePolishTreasuryhasagreedtotheconditionsofthesaleofstate-controlledPolishshipyardStoczniaGdyniatoUkrainianindustrialgroupISD.GazetaWyborczareportedthis,citingunofficialsources,andaddedthatonlycertaintechnicalissuesremaintobesortedout.ThereportsaidthatGdyniawillreceiveadditionalgovernmentaidofPLN1.35bn(EUR421.3m).ThissumwasagreeduponduringnegotiationsbetweenthePolishTreasury(MSP)andISD.GazetaWyborczaalsowrotethatitisknownthatISDwillinvestaminimumofEUR320mintheshipyard,andthissumcouldgouptoasmuchasEUR640m.Thereportsaid,citingtheISDspokesperson,thatcertainaspectsofthetransaction,includingthefundstosecureit,andbankguarantees,havenotyetbeenestablished.AreportinGazetaPrawna,whichcitedthePolishdeputytreasuryministerZdzislawGawlik,saidthatfinalbidsforStoczniaGdyniaandstate-controlledshipyardStoczniaSzczecinskaNowa(SSN)canbesubmittedbythenextFriday(8August).BothshipyardshavetobeprivatisedbytheendofSeptember,thepaperadded.Thereportsaidthatprivately-heldPolishsteelworksMostostalChojnicehasconfirmedinterestinSSN.Gdyniaisallegedlybeingeyedbyprivately-ownedPolishshipyardPolishShipbuildingCompany,Gazetaadded.
Takeovertarget GedeonRichter Pharma,Medical&Biotech
MNV GovernmentofHungary
615 GedeonRichter,alistedHungarianpharmaceuticalfirm,willseeits25%state-ownedstakeputupforprivatisation.Thegovernmentholdsa25%stakeinGedeonRichter.ThesaleofthisstakecouldreacharoundEUR615andEUR820m.
Monthly M&A report – 199
ExpectedDeals
Situation Target company
Sector Potential bidder company
Financial adviser to bidder (B); target (T); seller (S)
Seller company Market cap/ est. value
(€m)
Comments
SignificantM&A ActionSA TMT ABCData 591 Action,oneofthelargestlistedPolishITgoodsdistributorsandcomputermanufacturers,wantstosignaletterofintentoveratakeoveroramergerwithalargecompany,bytheendofJuly,reportedPulsBiznesu.However,nonamesofthepartnershavebeenrevealed.Atpresent,ActionisnotintalkswithPolishrivalABCData,butitisthinkingofconsolidationwithothercompanies.
Takeovertarget BankOchronySrodowiska
FinancialServices
SkandinaviskaEnskildaBanken
GovernmentofPoland
350 ThePolishMinistryoftheEnvironmentwantslistedBankOchronySrodowiskaS.A.(BOS)privatisedagain.SwedishbankSkandinaviskaEnskildaBanken(SEB)isconsideringinvestinginBOSagain.BOS'mainshareholdersarecurrentlyNarodowyFunduszOchronyŒrodowiskaiGospodarkiWodnej(NFOSiGW)-77.54%,PanstwoweGospodarstwoLesneLasyPanstwowe(PGLLP)-5.74%andWojewódzkiFunduszOchronyŒrodowiskaiGospodarkiWodnejwKatowicach-5.6%.
SignificantM&A Antibiotice Pharma,Medical&Biotech
Biofarm;SIFOltenia;SIFBanat-Crisana;SIFMoldova;andSSIFBroker
157 Some27potentialbidders,includingBiofarm,havesubmittedlettersofintenttobuya53.02%AVAS'state-ownedstakeinAntibiotice,thelistedRomanianpharmaceuticalsmaker.DrReddy’sLaboratories,LupinandRanbaxyLaboratoriesofIndiaarepotentialbiddersfora53%holdinginAntibiotice.TheAntibiotice’sauctionreservedpriceofUSD200m(INR8bn).TheGovernmentofRomaniahasannulledthelawadoptedlastyeartosellAntibioticeviaopentender.HoweverAVAS,thestateassetsrecoveryagencywhichownsa53.0175%stakeinthelistedpharmacompany,saiditwouldcontinuewiththesale.LavrentiadesGroupwilllooktoacquireAntibioticewithin12months.
Takeovertarget ArtmanSA Consumer LPPSA CopernicusSecurities(B)
KrzysztofBajolek(individualinvestor);JanPilch(privateinvestor);andArkadiuszBajolek(privateinvestor)
116 LPPhasreceivedallexternalclearancesforitstakeoverofArtman,thelistedPolishclothinggroup,confirmedCFO,DariuszPachla.ThecompanyreceivedtherequiredapprovalfromthePolishcompetitionauthority(UOKiK)twoweeksago,aftermakingaformalrequestforclearanceinAprilfollowingthesigningofaletterofintent.
Source:mergermarket
Monthly M&A report – 200
Leaguetables
value
YTD 31-Jul-08
House Value (€m)
Deal count
1 MerrillLynch 5,204 5
2 BNPParibas 2,750 3
3 JPMorgan 2,381 4
4 EvliBank 2,182 4
5 HSBCBank 2,155 3
6 Rothschild 1,844 4
7 JPMorganCazenove 1,651 1
8 LehmanBrothers 1,521 3
9 RenaissanceCapital 1,328 4
10 CreditSuisse 1,057 2
11 RaiffeisenInvestment 1,044 8
12 MorganStanley 1,013 2
13 ABNAMRO 1,011 1
14 KBCSecurities 866 4
15 DeutscheBank 612 1
Source:mergermarket
volume
Thefinancialadviserleaguetablesbyvalueandvolumehavebeenrunfrom01January2008to31July2008andexcludelapsedandwithdrawndeals.Thetablescoverallsectorsandarebasedonthegeographyofeitherthetarget,bidderorsellerbeingCEE&CIS
YTD 31-Jul-08
House Value (€m)
Deal count
1 RaiffeisenInvestment 1,044 8
2 Deloitte 40 8
3 PricewaterhouseCoopers 157 7
4 MerrillLynch 5,204 5
5 JPMorgan 2,381 4
6 EvliBank 2,182 4
7 Rothschild 1,844 4
8 RenaissanceCapital 1,328 4
9 KBCSecurities 866 4
10 Ernst&Young 25 4
11 BNPParibas 2,750 3
12 HSBCBank 2,155 3
13 LehmanBrothers 1,521 3
14 Lazard 46 3
15 SEBEnskilda 40 3
Source:mergermarket
Top 15 financial Advisers - CEE & CIS
value
YTD 31-Jul-08
House Value (€m)
Deal count
1 CliffordChance 3,709 11
2 Linklaters 3,251 13
3 FreshfieldsBruckhausDeringer 2,992 6
4 White&CaseLLP 2,952 7
5 Sorainen 2,203 9
6 Allen&OveryLLP 1,995 6
7 Glatzova&Co 1,809 3
8 DeBrauwBlackstoneWestbroek 1,741 2
9 BrzobohatyBroz&Honsa(BBH) 1,659 1
10 Baker&McKenzie 1,593 8
11 GideLoyretteNouel 1,017 4
12 DordaBruggerJordis 1,011 2
13 WeilGotshal&MangesLLP 876 9
14 Vinson&ElkinsLLP 831 1
15 WolfTheiss 550 4
Source:mergermarket
volume
Thelegaladviserleaguetablesbyvalueandvolumehavebeenrunfrom01January2008to31July2008andincludelapsedandwithdrawndeals.Thetablescoverallsectorsandarebasedonthegeographyofeitherthetarget,bidderorsellerbeingCEE&CIS
Top 15 legal Advisers - CEE & CIS
CEE and CIS
YTD 31-Jul-08
House Value (€m)
Deal count
1 Linklaters 3,251 13
2 CliffordChance 3,709 11
3 Sorainen 2,203 9
4 WeilGotshal&MangesLLP 876 9
5 Baker&McKenzie 1,593 8
6= White&CaseLLP 2,952 7
6= FreshfieldsBruckhausDeringer 2,992 6
8 Allen&OveryLLP 1,995 6
9 CMS 208 5
10 GideLoyretteNouel 1,017 4
11 WolfTheiss 550 4
12 RaidlaLejins&Norcous 63 4
13 Glatzova&Co 1,809 3
14 Shearman&SterlingLLP 476 3
15 Dewey&LeBoeufLLP 412 3
Source:mergermarket
Monthly M&A report – 201
Activitytables
value
YTD 31-Jul-08
House Value (€m)
Deal count
1 AlnairPrivateEquityGroup 933 1
2= AresLifeSciences 800 1
2= MerrillLynchGlobalPrivateEquity 800 1
2= WarburgPincus 800 1
5 IconPrivateEquity 226 1
Source:mergermarket
volume
TheprivateequitybuyoutactivitytablesbyvalueandvolumearebasedonprivateequityfirmsadvisingthebidderonbuyoutdealswherethedominantgeographyofthetargetcompanyisCEE&CISThetablesbyvalueandvolumehavebeenrunfrom01January2008to31July2008andexcludelapsedandwithdrawndeals
YTD 31-Jul-08
House Value (€m)
Deal count
1 PentaInvestmentsLimited 108 5
2 ArcaInvestmentsa.s. 10 2
3 AlnairPrivateEquityGroup 933 1
4= AresLifeSciences 800 1
4= MerrillLynchGlobalPrivateEquity 800 1
Source:mergermarket
Activity table of private equity firms on CEE & CIS buyouts
value
YTD 31-Jul-08
House Value (€m)
Deal count
1= AresLifeSciences 800 1
1= MerrillLynchGlobalPrivateEquity 800 1
1= WarburgPincusLLC 800 1
4 EspigaCapitalInversionSCRSA 30 1
5 BaltCapManagement 27 1
Source:mergermarket
volume
TheprivateequityexitactivitytablesbyvalueandvolumearebasedonprivateequityfirmsadvisingthevendoronexitdealswherethedominantgeographyofthetargetcompanyisCEE&CISThetablesbyvalueandvolumehavebeenrunfrom01January2008to31July2008andexcludelapsedandwithdrawndeals
Activity table of private equity firms on CEE & CIS exits
CEE and CIS
YTD 31-Jul-08
House Value (€m)
Deal count
1= AresLifeSciences 800 1
1= MerrillLynchGlobalPrivateEquity 800 1
1= WarburgPincusLLC 800 1
4 EspigaCapitalInversionSCRSA 30 1
5 BaltCapManagement 27 1
Source:mergermarket
Monthly M&A report – 202
Trendgraphs
CEE and CIS M&A quarterly trend
value volume
Movingaveragetrendline
0
2,000
4,000
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8,000
10,000
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14,000
16,000
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Q22008
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valu
e €m
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num
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eals
CEE and CIS M&A quarterly private equity trend
value volume
0
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Q32005
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valu
e €m
CEE and CIS buyouts
CEE and CIS exits
0
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Q3 2008*
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Q32005
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Q22003
Q1 2003
num
ber
of d
eals
CEE and CIS buyouts
CEE and CIS exits
CEE and CIS
Monthly M&A report – 203
Trendgraphs
CEE and CIS M&A annual trends - value
value volume
0
10
20
30
40
50
2008 YTD20072006200520042003
valu
e €m
All CEE and CIS M&A
CEE and CIS buyouts
CEE and CIS exits
0
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600
2008 YTD20072006200520042003
num
ber
of d
eals
All CEE and CIS M&A
CEE and CIS buyouts
CEE and CIS exits
CEE and CIS M&A annual trends - volume
value volume
Industrial & Chemicals
Consumer
TMT
Energy, Mining & Utilities
Financial services
Business Services
Construction
Transportation
Leisure
Pharma/Medical/Biotech
Agriculture
7.4%
2.9%0.8%
4.7%
32.4%
22.3%
1.3%
2.5%
24.3%
0.9%
0.5%
10.1%
10.5%
7.5%
9.7%
4.5%
3.4%
1.9%2.2%
19.9%
19.1%
11.2%
Industrial & Chemicals
Consumer
TMT
Energy, Mining & Utilities
Financial services
Business Services
Construction
Transportation
Leisure
Pharma/Medical/Biotech
Agriculture
CEE and CIS
Monthly M&A report – 204
Mid-marketdeals
CEE and CIS
CEE & CIS M&A quarterly Mid-market trend
value volume
0
500
1,000
1,500
2,000
2,500
3,000
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4,000
Q32008*
Q2 2008
Q12008
Q42007
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Q3 2006
Q2 2006
Q12006
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Q3 2005
Q2 2005
Q1 2005
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Q32004
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Q4 2003
Q32003
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valu
e €m
0
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Q2 2008
Q12008
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Q32004
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Q1 2004
Q42003
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num
ber
of d
eals
Movingaveragetrendline
Monthly M&A report – 205
Top 10 CEE & CIS announced mid market deals of the month (July 2008)(€10mto€250m)Announced Status Target company Sector Target/
seller financial adviser
Target/seller legal adviser
Bidder company Bidder financial adviser
Bidder legal adviser
Seller company Deal value(€m)
22-Jul-08 P AegonPTESA(49.70%stake)
FinancialServices
AegonWoningenNovaBV
BREBankSA 150
28-Jul-08 P TopToneMediaHoldingsLimited(TV2channelandRingTVassets)(80%stake)
TMT CentralEuropeanMediaEnterprisesLtd
TopToneMediaHoldings
109
31-Jul-08 P Logosas TMT CorumGroup
NessTechnologiesInc
43
14-Jul-08 P Cemat-SiliconSA TMT TopsilSemiconductorMaterialsA/S
Cemat70SA;andInstituteofElectronicMaterialsTechnology
23
2-Jul-08 P GMACCommercialFinanceSpzoo
FinancialServices
SkandinaviskaEnskildaBankenAB
SEBEnskilda
Linklaters GMACCommercialFinanceLLC
22
15-Jul-08 P JSVArmila(92%stake)
Pharma,Medical&Biotech
DnBNORD
Sorainen Andreae-NorisZahnAG
20
31-Jul-08 P CinemaCityMallsAD(45%stake);andMOPlovdivAD(15%stake)
FinancialServices
ITSofia2007BV;andITSofiaBV
OcifInvestments&DevelopmentLtd
18
7-Jul-08 C Perla-BrowaryLubelskieSA(PerlaLublinBreweries)(52%stake)
Consumer SouthbeachDevelopment
SteadEnterprise
18
16-Jul-08 C AtlasGIPSA(86%stake)
Energy,Mining&Utilities
WeatherfordInternationalLtd
TenderGroup 17
9-Jul-08 C UkrainianBacon(80%stake)
Consumer MHPSA 16
C=Completed;P=Pending;L=Lapsed Source:mergermarket
Mid-marketdeals
CEE and CIS
Monthly M&A report – 206
Mid-marketleaguetables
YTD 31-Jul-08
House Value (€m)
Deal count
Value:
1 RenaissanceCapital 395 3
2 UniCreditGroup 302 2
3 RaiffeisenInvestment 282 3
4 AlegroCapital 250 1
5 AIBCorporateFinance 216 1
6 TroikaDialogGroup 194 1
7= BNPParibas 178 1
7= Rothschild 178 1
9 LehmanBrothers 160 1
10 PricewaterhouseCoopers 147 3
Volume:
1 RenaissanceCapital 395 3
2 RaiffeisenInvestment 282 3
3 PricewaterhouseCoopers 147 3
4 UniCreditGroup 302 2
5 Lazard 46 2
6 SEBEnskilda 40 2
7 AlegroCapital 250 1
8 AIBCorporateFinance 216 1
9 TroikaDialogGroup 194 1
10 BNPParibas 178 1
Source:mergermarket
Thefinancialadviserleaguetablesbyvalueandvolumehavebeenrunfrom01January2008to31July2008andexcludelapsedandwithdrawndeals.Thetablescoverallsectorsandarebasedonthegeographyofeitherthetarget,bidderorsellerbeingCEE&CIS
Top 10 Mid-market financial Advisers - CEE & CIS(€10mto€250m)
YTD 31-Jul-08
House Value (€m)
Deal count
Value:
1 WeilGotshal&Manges 876 9
2 Shearman&Sterling 476 2
3 Dewey&LeBoeuf 412 3
4 FreshfieldsBruckhausDeringer 322 3
5 Linklaters 274 5
6 Baker&McKenzie 246 2
7= Dimitrov,Tchompalov&Todorova 216 1
7= Kirkland&Ellis 216 1
7= SidleyAustin 216 1
10 CMS 208 4
Volume:
1 WeilGotshal&Manges 876 9
2 Linklaters 274 5
3 CMS 208 4
4 CliffordChance 191 4
5 Dewey&LeBoeuf 412 3
6 FreshfieldsBruckhausDeringer 322 3
7 Sorainen 48 3
8 Shearman&Sterling 476 2
9 Baker&McKenzie 246 2
10 VasilKisil&Partners 201 2
Source:mergermarket
Thelegaladviserleaguetablesbyvalueandvolumehavebeenrunfrom01January2008to31July2008andincludelapsedandwithdrawndeals.Thetablescoverallsectorsandarebasedonthegeographyofeitherthetarget,bidderorsellerbeingCEE&CIS
Top 10 Mid-market legal Advisers - CEE & CIS(€10mto€250m)
CEE and CIS
Russia
Monthly M&A report – 207
TNK-BP Rivalry• TNK-BP,oneofthelargestprivatelyownedoilcompanies
intheworldisbeingtornapartbyitsownersduetomanagementissuesanddisagreementsoverthecompany’sstrategy.Thestruggletowinthecontrolofthecompanyhasreachednewheights,bringingmoreharmthangoodtotheentityanditsstakeholders.
• Theconflictcomesasbadnewstooutsideinvestorswholooktotheventureforindicationofstabilityandgrowthintheforeigninvestmentsector.Unfortunately,therearenosignsofpeacefulresolutioninthenearfuture.BPhasalreadyredeployedthemajorityofitskeypersonneltootherprojectsandhasblockedthepaymentofdividendstotheshareholdersinanefforttoregainpower,stressingtheseverityoftheissues.
• TheoutcomeofthisbattlewillmostlikelyhaveanegativeaffectontheM&AactivityinRussia,whilewemayseeamildlossofconfidencefromtheinternationalinvestors,thedomesticacquisitionswillcontinuetogrow.
AAA Motors open to talks with investment funds for stake sale until end of August, adviser says • AAAMotors,aprivately-held,Russiancardealer,will
beopentotalkswithinvestmentfundsuntiltheendofAugust,saidVitalyBogomolovofVertexGroupwhoisadvisingonthedeal.Thecompanywouldbeinterestedinsellinga25%to50%stake.Bogomolovsaidthatthecompanyisplanningtoraisebetween$50mand$100mfromthesale.
• Thecurrentownerswillretainthecontrolofthecompany.
• Theadvisersaidthecompanywouldissueadditionalequitytoinvestors.AAAMotorsisfullycontrolledbyAAAGroup,aRussianprivatediversifiedholding,whichismainlyinvolvedinrealestateanddistribution.
Aleksiya open to sale talks, founder says
• OOOAleksiya,aprivate,Russianchainofpetrolstations,isforsale,saidfounderAlekseyTarubarov.Hesaidthecompanywaswortharound$30m.AleksiyaconsistsofsevenpetrolstationsintheBelgorodregionandoilstoragefacilitiesinKurskregion.ThecompanyispartofAleksiyaGroup,whichownspetrolstationsinKurskregion,hesaid.TarubarovplanstoinvesttheproceedsfromthesaleinhisrealestatebusinessinKursk.
• Hesaidhehadnopreferenceforeitherastrategicoffinancialinvestor,thoughafinancialbuyerwouldlikelyallowhimtocontinuemanagingthebusiness.Hesaidhedidnotwanttosellthepetrolstationsseparately,andwouldonlysellthemasaunit.
• Thecompanyrecentlylauncheditsownbrand,Antoil,forsomeofthepetrolstations.
• Thestationsoccupyanaverageofonehectareofland.Threeofthemhaveattachedcardealerships,whicharerentedouttoautoretailers.
• AleksiyaalsoownsanoilstoragefacilityintheKurskregionwhichisintheprocessofbeingbuilt.
• Tarubarovnotedthatthecompanyhadnotaxproblemsorotherdifficultieswiththeauthorities.Aleksiyahas80employees,whileAleksiyaGrouphas1000.Salesaregrowingat10%monthly.
• Tarubarovaddedthathewouldnotseekabuyerfortherealestatebusiness.
Russia
Russia
Monthly M&A report – 208
Grand interested in selling stake, CEO says
• Grand,aprivate,Russianteaandcoffeecompany,isinterestedinsellingastaketoastrategicinvestor,saidCEOAleksanderBorisov.Hesaidthatthecompanycouldpossiblysellaportionofitsteaandcoffeebusinessestooneorseveralseparateinvestors.In2004GrandcreatedajointventurewithGermanconsumercompany,Kruger,andfoundedaRussian-GermanenterprisethathadaseparatelegalunitinsideGrand.Thesamedealstructuremightbeadoptedforafutureacquisition,Borisovnoted.
• Whenaskedaboutsizeofthestake,hesaidthathewouldprefer50%,butdependingontheofferhewouldalsoconsidersellingacontrollingshare.BorisovsaidGrandisnotlookingtoexitthebusinessandisinterestedinpartnerswithlong-termdevelopmentplans.
• ItisunderstoodthatPricewaterhouseCooperswillactasanadviseronthedealandthatGrandhasalreadyhiredalegaladvisor.
• Grandexpectstopostaturnoverof$120min2008andhasover1,000employees.
• Grandisconsideredoneofthetop5teaandcoffeecompaniesinRussiaandhaspackagingfacilitiesinandaroundMoscowandIrkutks.Itcontrolsabout7%oftheteamarketand7%oftheinstantcoffeemarket.
• Whenaskedaboutthepossibilityofalisting,BorisovsaidthatitwasanoptionforacompanyofGrand’ssizewiththecurrentmarket.
• Grandhasestablishedtraderelationswithcoffeeandteaproducersandsuppliesitsproductstobothretailersandwholesalersthroughitsbroaddistributionnetwork.
Diaf is open to sale talks, source says • Diaf,aprivateRussianfishprocessingenterprise,isfor
sale,accordingtosourcefamiliarwiththesituation.ItisunderstoodthatBRMB(BankGotovogoBisnesa),aRussianinvestmentcompany,isactingasanexclusiveadvisoronthissale.Thesourcevaluedthecompanyataround$18.5m.
• Thesourcesaidtheownerisopentotalkswithbothfinancialinvestorsandstrategicbuyers,andheisexitingthebusinessashasdecidedtomovetoanotherregion.
• DiafislocatedinthecityofBarnaul,intheAltairegionofRussia.ItsuppliesitsproductstoshopsandrestaurantsoftheregionandalsohasclientsinMoscow,St.PetersburgandregionsofNovosibirsk,KemerovoandTomsk.Diafhasitsownshopsaswell.
• Thecompanymanufacturesfrozen,smokedandsaltedfishandalsopackagescaviar.Theenterprisehasalltherequiredlicensesforproduction,andtheregisteredbrandname.Itmanufacturessixtoeighttonsoffishproducedailyandtheproductionvolumescouldbeincreased,accordingtothesource.
Russia
Russia
Monthly M&A report – 209
Dealofthemonth
Target: ZAOBegun Announced: 18July2008
Bidder: GoogleInc Deal value: €88.34m
Seller: RamblerMediaLimited Deal nature: Recommended
Description • GoogleInc,thelistedUSbasedmediacompany,
hasagreedtoacquireZAOBegun,theRussiabased
advertisingfirm,fromRamblerMediaLimited,thelisted
Russiabasedinternetandmediacompany,foratotal
cashconsiderationof€88.34m.
Terms
• Underthetermsoftheagreement,Rambler,which
currentlyholdsa50.1%inBegun,willacquirethe
remaining49.9%stakefromBannatyneLimitedandthen
sellBegun’sentireissuedcapitaltoGoogle.
Rationale
• ThetransactionisinlinewithGoogle’sstrategytoexpand
itsadvertisingservicesintheRussianmarket.
Conditions• Thetransactionissubjecttocustomaryclosingconditions
andreceiptofapplicableregulatoryapproval.Itis
expectedtobecompletedinthethirdquarterof2008.
Advisers
Target/seller Bidder
Financial ING Financial Internal
PR CliffordChance PR White&Case
Russia
Monthly M&A report – 210
Topdeals
Top 15 Russian announced deals for YTD 31 July 2008Announced Status Target company Sector Bidder company Seller company Exit multiples (x) Bid premia
1-day beforeDeal value
(€m)Revenue EBITDA P/E
17-Apr-08 C KMInvestZAO(50%stake)
FinancialServices
InterrosCompany OneximGroup 4,641
29-Feb-08 C TGK-10 Energy,Mining&Utilities
FortumOyj UnifiedEnergySystemsofRussia
3.7 39.9 177.9 13.3% 2,283
02-May-08 P SiburHoldingJSC(50%stake)
Industrials&Chemicals
HidronHoldingsLtd GazprombankJSB
0.8 3.7 4.6 1,903
15-May-08 P VolzhskayaTGKOAO(77%stake)
Energy,Mining&Utilities
IntegratedEnergySystems
UnifiedEnergySystemsofRussia
27.5% 1,886
11-Feb-08 P TGK-8 Energy,Mining&Utilities
OAOLukoil FinancialGroupIFDCapital
244.6 1777.3 4.3% 1,508
16-Jun-08 C Polymetal(68.03%stake)
Energy,Mining&Utilities
InureEnterprisesLtd;PPFGroupNV;andQuotanInternationalLimited
AniketaInvestmentsLimited
8.8 84.3 1,306
20-Mar-08 P LebedyanskyJSC Consumer PepsiCoInc;andPepsiBottlingGroupInc
2.0 0.2 -3.8% 1,288
17-Feb-08 C NKAllianceOAO Energy,Mining&Utilities
WestSiberianResourcesLtd
Bazhaevfamily(PrivateInvestor)
0.9 10.8 19.6 1,026
07-Apr-08 P TGK-4 Energy,Mining&Utilities
OneximGroup UnifiedEnergySystemsofRussia
5.3% 1,019
14-Mar-08 P TGK-2 Energy,Mining&Utilities
RWEAG;andSintezGroupCoLimited
UnifiedEnergySystemsofRussia
2.0 25.5 1292.2 902
29-Feb-08 C AvtoVAZ(25%stake) Industrials&Chemicals
RenaultSA RussianTechnologiesStateCorporation
768
14-Mar-08 P TGK-6(80.14%stake) Energy,Mining&Utilities
IntegratedEnergySystems
UnifiedEnergySystemsofRussia
3.0 47.9 4.7 5.8% 746
22-Feb-08 L B.I.N.Bank(99%stake) FinancialServices
VadimNikolaevichMoshkovich(PrivateInvestor)
MikhailOsmanovichShishkhanov(PrivateInvestor)
60.8 674
11-Apr-08 C FormataHoldingBV Consumer X5RetailGroupNV 1.1 13.1 46.2 584
17-Apr-08 C JSCOpenInvestments(27.5%stake)
FinancialServices
OneximGroup KMInvestZAO 26.7 517
C=Completed;P=Pending;L=Lapsed Source:mergermarket
Russia
Monthly M&A report – 211
Topdeals
Top 5 Russian announced deals of the month (July 2008)Announced Status Target company Sector Bidder company Seller company Exit multiples (x) Bid premia
1-day beforeDeal value
(€m)Revenue EBITDA P/E
02-Jul-08 C ZAOSpasskiyeVorotaInsuranceGroup(75%stake)
FinancialServices
StolichnayaStrakhovayaGruppa
194
16-Jul-08 C ZAONova-Stroy Construction LSRGroupLimited
100
17-Jul-08 C SDM-Bank(78.00%stake)
FinancialServices
BankHapoalimBM
12.2 90
18-Jul-08 P ZAOBegun TMT GoogleInc RamblerMediaLimited
88
30-Jul-08 P CampoMos Consumer AtriaGroupPlc CampofrioAlimentacionSA
75
C=Completed;P=Pending;L=Lapsed Source:mergermarket
Russia
Monthly M&A report – 212
Pipeline of Russian expected dealsSituation Target company Sector Financial adviser Seller
companyPotential bidder company
Market cap/ est. value
(€m)
Comments
ExpectedDeal
NorilskNickelMMC(OJSC)
Energy,Mining&Utilities
ZAOHoldingCompanyMetalloinvest
VladimirPotanin(Privateinvestor)
26,974 NorilskNickelwouldonlyconsideramergerwithMetalloinvestifNorilskistobethe"base"forthetie-up.Themanagement'sproposalsaretospinofftheassetstotheshareholders.
ExpectedDeal
KAMAZInc. Automotive DaimlerAG TroikaDialog 3,071 TroikaDialoghasconfirmedthatthelistedGermancarproducerDaimleristheexclusivepartnerinnegotiationsoveracquiring42%ofKamAZ,fromTroika.
Expecteddeals
Russia
Monthly M&A report – 213
Leaguetables
value
YTD 31-Jul-2008
House Value (€m)
Deal count
1 DeutscheBank 7700 7
2 TroikaDialogGroup 7116 9
3 MerrillLynch 6354 8
4 CreditSuisse 4957 5
5 JPMorgan 4486 6
6 RenaissanceCapital 4405 7
8 ABNAMRO 4205 5
7 AlfaBank 3988 5
9 MorganStanley 3550 5
10 UBS 3259 4
11 Citigroup 3230 7
12 Rothschild 2643 7
13 DresdnerKleinwort 2636 3
14 HandelsbankenCapitalMarkets 2233 1
15 GoldmanSachs 2170 4
Source:mergermarket
volume
Thefinancialadviserleaguetablesbyvalueandvolumehavebeenrunfrom01January2008to31July2008andexcludelapsedandwithdrawndeals.Thetablescoverallsectorsandarebasedonthegeographyofeitherthetarget,bidderorsellerbeingRussia
YTD 31-Jul-2008
House Value (€m)
Deal count
1 TroikaDialogGroup 7116 9
2 MerrillLynch 6354 8
3 DeutscheBank 7700 7
4 RenaissanceCapital 4405 7
5 Citigroup 3230 7
6 Rothschild 2643 7
7 JPMorgan 4486 6
8 CreditSuisse 4957 5
9 ABNAMRO 4205 5
10 AlfaBank 3988 5
11 MorganStanley 3550 5
12 UBS 3259 4
13 GoldmanSachs 2172 4
14 DresdnerKleinwort 2636 3
15 ING 688 3
Source:mergermarket
Top 15 financial advisers - Russia
value
YTD 31-Jul-2008
House Value (€m)
Deal count
1 CliffordChance 8923 11
2 HerbertSmith/GleissLutz/Stibbe 4641 1
3 McCarthyTetrault 4466 1
4 AkinGumpStraussHauer&Feld 4395 6
5 White&Case 3899 11
6 Linklaters 3794 7
7 Dewey&LeBoeuf 3721 9
8 ClearyGottliebSteen&Hamilton 3572 8
9 Chadbourne&Parke 2529 3
10 SALANS 2503 2
11 Blake,Cassels&Graydon 2487 2
12 SkaddenArpsSlateMeagher&Flom 2343 5
13 BennettJones 2233 1
14 BakerBotts 1903 1
15 Debevoise&Plimpton 1886 1
Source:mergermarket
volume
Thelegaladviserleaguetablesbyvalueandvolumehavebeenrunfrom01January2008to31July2008andincludelapsedandwithdrawndeals.Thetablescoverallsectorsandarebasedonthegeographyofeitherthetarget,bidderorsellerbeingRussia
YTD 31-Jul-2008
House Value (€m)
Deal count
1 CliffordChance 8,923 11
2 White&Case 3,899 11
3 Dewey&LeBoeuf 3,721 9
4 ClearyGottliebSteen&Hamilton 3,572 8
5 Linklaters 3,794 7
6 AkinGumpStraussHauer&Feld 4,395 6
7 FreshfieldsBruckhausDeringer 1,488 6
8 SkaddenArpsSlateMeagher&Flom 2,343 5
9 Squire,Sanders&Dempsey 927 5
10 Chadbourne&Parke 2,529 3
11 Allen&Overy 1,758 3
12 Baker&MacKenzie 1,026 3
13 Hogan&Hartson 913 3
14 JonesDay 247 3
15 SALANS 2,503 2
Source:mergermarket
Top 15 legal advisers - Russia
Russia
Monthly M&A report – 214
YTD 31-Jul-2008
House Value (€m)
Deal count
1 TPG 509 1
2 LionCapital 381 1
3= GLGPartners 217 1
3= TroikaCapitalPartners 217 1
5 AlfaCapitalPartners 177 1
YTD 31-Jul-2008
House Value (€m)
Deal count
1 RenovaCapital 26 2
2 TPG 509 1
3 LionCapital 381 1
4= GLGPartners 217 1
4= TroikaCapitalPartners 217 1
YTD 31-Jul-2008
House Value (€m)
Deal count
1 CitigroupVentureCapitalEquityPartners
200 1
2= CapManGroup 50 1
2= FinamInvestment 50 1
2= UFGPrivateEquityFund 50 1
5 AhlstromCapital 0 1
YTD 31-Jul-2008
House Value (€m)
Deal count
1 CitigroupVentureCapitalEquityPartners
200 1
2= CapManGroup 50 1
2= FinamInvestment 50 1
2= UFGPrivateEquityFund 50 1
5 AhlstromCapital 0 1
TheprivateequitybuyoutactivitytablesbyvalueandvolumearebasedonprivateequityfirmsadvisingthebidderonbuyoutdealswherethedominantgeographyofthetargetcompanyisRussiaThetablesbyvalueandvolumehavebeenrunfrom01January2008to31July2008andexcludelapsedandwithdrawndeals
TheprivateequityexitactivitytablesbyvalueandvolumearebasedonprivateequityfirmsadvisingthevendoronexitdealswherethedominantgeographyofthetargetcompanyisRussiaThetablesbyvalueandvolumehavebeenrunfrom01January2008to31July2008andexcludelapsedandwithdrawndeals
Leaguetables
value
value
volume
volume
Activity table of private equity firms on Russian buyouts
Activity table of private equity firms on Russian exits
Russia
Monthly M&A report – 215
Trendgraphs
Russian M&A quarterly trend
value volume
Movingaveragetrendline
0
5,000
10,000
15,000
20,000
25,000
30,000
Q3 2008*
Q22008
Q12008
Q42007
Q32007
Q22007
Q12007
Q42006
Q32006
Q22006
Q12006
Q42005
Q32005
Q22005
Q12005
Q42004
Q32004
Q22004
Q12004
Q42003
Q32003
Q22003
Q12003
valu
e (€
m)
0
20
40
60
80
100
Q3 2008*
Q22008
Q12008
Q4 2007
Q32007
Q22007
Q12007
Q42006
Q32006
Q22006
Q12006
Q4 2005
Q32005
Q22005
Q12005
Q42004
Q32004
Q22004
Q12004
Q42003
Q32003
Q22003
Q12003
num
ber
of d
eals
Russian M&A quarterly private equity trend
value volume
0
500
1,000
1,500
2,000
2,500
3,000
3,500
Q3 2008*
Q22008
Q12008
Q42007
Q32007
Q22007
Q12007
Q42006
Q32006
Q22006
Q1 2006
Q42005
Q32005
Q22005
Q12005
Q42004
Q32004
Q22004
Q12004
Q42003
Q32003
Q22003
Q1 2003
valu
e €m
Russian buyouts
Russian exits
0
2
4
6
8
10
Q3 2008*
Q22008
Q12008
Q42007
Q32007
Q22007
Q12007
Q42006
Q32006
Q22006
Q1 2006
Q42005
Q32005
Q22005
Q12005
Q42004
Q32004
Q22004
Q12004
Q42003
Q3 2003
Q22003
Q12003
num
ber
of d
eals
Russian buyouts
Russian exits
Russia
Monthly M&A report – 216
Trendgraphs
Russian M&A annual trends
value volume
Russian M&A sector breakdown YTD 2008
value volume
5.1%
1.1%
5.6%
1.7%
16.4%
1.1%2.3%
9%
17.5%1.7%
27.7%
10.7%
Financial Services
Energy, Mining & Utilities
Industrials and Chemicals
Business Services
Consumer
Defence
Transportation
TMT
Pharma, Medical & Biotech
Construction
Agriculture
Leisure
0
10
20
30
40
50
60
70
80
2008 YTD2007 2006200520042003
valu
e €b
n
All Russian M&A
Russian buyouts
Russian exits
0
50
100
150
200
250
300
350
2008 YTD20072006200520042003
num
ber
of d
eals
All Russian M&A
Russian buyouts
Russian exits
Financial Services
Energy, Mining & Utilities
Industrials and Chemicals
Business Services
Consumer
Defence
Transportation
TMT
Pharma, Medical & Biotech
Construction
5.1%20.4%
41.7%
14.1%
0.9%
11.6%
1.8%
2.4% 1.5%
2.4%
Russia
Monthly M&A report – 217
Mid-marketdeals
Top 10 Russian announced mid-market deals of the month (July 2008) (€10mto€250m)
Announced Status Target company Sector Target/seller financial adviser
Target/seller legal adviser
Bidder company Bidder financial adviser
Bidder legal adviser
Seller company Deal value (€m)
02-Jul-08 C ZAOSpasskiyeVorotaInsuranceGroup(75%stake)
FinancialServices
StolichnayaStrakhovayaGruppa
194
16-Jul-08 C ZAONova-Stroy Construction LSRGroupLimited 100
17-Jul-08 C SDM-Bank(78%stake)
FinancialServices
BankHapoalimBM Internal White&Case
90
18-Jul-08 P ZAOBegun TMT ING CliffordChance
GoogleInc Internal White&Case
RamblerMediaLimited
88
30-Jul-08 P CampoMos Consumer AtriaGroupPlc CampofrioAlimentacionSA
75
18-Jul-08 C Saint-PetersburgCartonboardandPrintingMill(56%stake)
Industrials&Chemicals
Notdisclosed
Notdisclosed
KnaufGipsSt.PetersburgZAO
Notdisclosed
Notdisclosed
OAOGroupIlim 63
15-Jul-08 C K-Systems(50%stake)
TMT EduardVoronetsky(privateinvestor)
GeorgyGens (PrivateInvestor)
63
18-Jul-08 C OJSCNewsMedia(50%stake)
TMT NationalMediaGroup UFGPrivateEquityFund
50
17-Jul-08 C BukaEntertainmentCompany
TMT Internal Castren&Snellman
1CCompany Internal Internal FinamInvestmentHoldingCompany;andCapManGroup
50
07-Jul-08 C CJSCUralTelephoneCompany
TMT OAOComstarUnitedTeleSystems
31
C=Completed;P=Pending;L=Lapsed Source:mergermarket
Russia
Monthly M&A report – 218
Russian M&A quarterly mid-market trend
value volume
0
10
20
30
40
50
Q3 2008*
Q22008
Q12008
Q42007
Q32007
Q22007
Q12007
Q42006
Q32006
Q22006
Q12006
Q42005
Q32005
Q22005
Q12005
Q42004
Q32004
Q22004
Q12004
Q42003
Q32003
Q22003
Q12003
num
ber
of d
eals
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
Q3 2008*
Q22008
Q12008
Q42007
Q32007
Q22007
Q12007
Q42006
Q32006
Q22006
Q12006
Q42005
Q3 2005
Q22005
Q12005
Q42004
Q32004
Q2 004
Q12004
Q42003
Q32003
Q22003
Q12003
valu
e €m
Movingaveragetrendline
Mid-marketdeals
Russia
Monthly M&A report – 219
YTD 31-Jul-2008
House Value (€m)
Deal count
Value:
1 Rothschild 527 5
2 Citigroup 514 3
3 TroikaDialogGroup 411 2
4 RenaissanceCapital 316 3
5 IFKAlemar 243 1
6 UBS 217 1
7 Deloitte 216 2
8= Moelis&Company 212 1
8= RaymondJames&Associates 212 1
10= AlfaBank 202 1
10= MorganStanley 202 1
Volume:
1 Rothschild 527 5
2 Citigroup 514 3
3 RenaissanceCapital 316 3
4 TroikaDialogGroup 411 2
5 Deloitte 216 2
6 InvestmentCompanyAquilaCapitalPartners
167 2
7 UniCreditGroup 90 2
8 IFKAlemar 243 1
9 UBS 217 1
10= Moelis&Company 212 1
10= RaymondJames&Associates 212 1
Source:mergermarket
Thefinancialadviserleaguetablesbyvalueandvolumehavebeenrunfrom01January2008to31July2008andexcludelapsedandwithdrawndeals.Thetablescoverallsectorsandarebasedonthegeographyofeitherthetarget,bidderorsellerbeingRussia
Top 10 Mid-market financial advisers - Russia(€10mto€250m)
YTD 31-Jul-2008
House Value (€m)
Deal count
Value:
1 Dewey&LeBoeuf 849 6
2 White&Case 692 5
3 CliffordChance 533 3
4 FreshfieldsBruckhausDeringer 469 4
5 Squire,Sanders&Dempsey 402 3
6 SkaddenArpsSlateMeagher&Flom
292 2
7 NautaDutilh 282 2
8 Shearman&Sterling 226 1
9= KayeScholer 212 1
9= McDermottWill&Emery 212 1
9= Sullivan&Cromwell 212 1
Volume:
1 Dewey&LeBoeuf 849 6
2 White&Case 692 5
3 FreshfieldsBruckhausDeringer 469 4
4 CliffordChance 533 3
5 Squire,Sanders&Dempsey 402 3
6 SkaddenArpsSlateMeagher&Flom
292 2
7 NautaDutilh 282 2
8 Shearman&Sterling 226 1
9 KayeScholer 212 1
10= McDermottWill&Emery 212 1
10= Sullivan&Cromwell 212 1
Source:mergermarket
Thelegaladviserleaguetablesbyvalueandvolumehavebeenrunfrom01January2008to31July2008andincludelapsedandwithdrawndeals.Thetablescoverallsectorsandarebasedonthegeographyofeitherthetarget,bidderorsellerbeingRussia
Top 10 Mid-market legal advisers - Russia(€10mto€250m)
Mid-marketdeals
Australian M&A Forum The Establishment, Sydney, Australia................................................................................................................................................................. 21 August
Energy M&A Forum Houston, USA ...............................................................................................................................................................................................16 September
German M&A Forum Frankfurt, Germany .......................................................................................................................................................................................25 September
CEE M&A Forum Vienna, Austria ..............................................................................................................................................................................................30 September
Benelux M&A Forum Brussels, Belgium ..............................................................................................................................................................................................21 October
Japanese Pan Asian Cross-Border M&A Forum Four Seasons, Tokyo, Japan ..............................................................................................................................................................................28 October
Private Equity Forum London, UK .........................................................................................................................................................................................................November
Highlights include:
Mergermarket events08
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DisclaimerThis publication contains general information and is not intended to be comprehensive nor to provide financial, investment, legal, tax or other professional advice or services. This publication is not a substitute for such professional advice or services, and it should not be acted on or relied upon or used as a basis for any investment or other decision or action that may affect you or your business. Before taking any such decision you should consult a suitably qualified professional adviser. Whilst reasonable effort has been made to ensure the accuracy of the information contained in this publication, this cannot be guaranteed and neither Mergermarket nor any of its subsidiaries nor any affiliate thereof or other related entity shall have any liability to any person or entity which relies on the information contained in this publication, including incidental or consequential damages arising from errors or omissions. Any such reliance is solely at the user’s risk.
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t: +1 212 686-5606f: +1 212 [email protected]
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The following notes pertain to data contained in this publication:
• Dealsareincludedwherethedealvalueisgreater than or equal to EUR5m.
• Wherenodealvaluehasbeendisclosed,dealsare included if the turnover of the target is greater than or equal to EUR10m.
• DealsareincludedinthegraphsandTopDeals in each section based on the dominant geography and dominant sector of the target company. Data underlying the League Tables are based on deals where the bidder, target or parent geography of either is that of the geography in focus.
• Q3 2008* is from 1 June 2008 to 31 July 2008 2008* is from 1 January 2008 to 31 July 2008