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January 2009

Satyam acquisition news gets Spice-y

Posted on January 30, 2009 at 4:17 PM
Filed under: Acquisitions | Deal International | Information Technology
Tagged: , ,
India's Spice Group Inc. is offering about 20 billion rupees ($408 million) for a controlling stake in IT outsourcer Satyam Computer Services Ltd., which lost four directors earlier in this month after its founder admitted that Satyam's balance sheet was inflated by more than $1 billion, devaluing -- by about...  Continue reading
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Honeywell CFO: A different take on seller expectations

Posted on January 30, 2009 at 2:44 PM
Filed under: Acquisitions | Counterparties
Tagged: , ,
Friday morning we noted that one industrial exec -- David Speer, CEO of Illinois Tool Works Inc. -- expects that in 2009 that many targets will be resistant to selling at reduced prices.Now here comes another industrial exec with a different take. In an interview with Reuters published Friday, Dave...  Continue reading
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JVs get a closer look as companies adjust priorities

As companies realign their priorities to better reflect economic realities, joint ventures appear to be a popular area of focus. Over the past few weeks, we've seen a number of companies delay, restructure or abandon JVs altogether.   The most high profile in the group is Kuwait Petrochemical Industries Co., which...  Continue reading
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Toshiba deals to fight Japanese, world recession

Posted on January 30, 2009 at 12:16 PM
Filed under: Careers | Corporate Strategy | Deal International | Joint Ventures and Alliances | Movers & Shakers | Trends
Tagged: , , ,
Oversupply and weak demand in the semiconductor industry is strangling Tokyo's Toshiba Corp. It has been widely reported that Toshiba is in talks to merge part of its chip operations with the semiconductor unit of NEC Corp., the Japanese PC maker that just said it would cut 20,000 jobs. Industry...  Continue reading
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Illinois Tool Works CEO on M&A: Sellers are reluctant

Posted on January 30, 2009 at 9:08 AM
Filed under: Acquisitions | Corporate Strategy | Counterparties
Tagged:
Some serial acquirers say the recession is creating rare opportunities for them to buy attractive  targets at bargain prices. But not Illinois Tool Works Inc. CEO David Speer, who in 2008 oversaw the acquisition of 50 companies that added a total of $1.5 billion in revenue to the diversified manufacturer....  Continue reading
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Continental sets date to switch airline alliances

Posted on January 29, 2009 at 3:45 PM
Filed under: Joint Ventures and Alliances
Tagged:
Continental Airlines Inc. has set a date for its long-expected divorce from the international SkyTeam alliance, saying Thursday that it expects to leave a partnership with Delta Air Lines Inc., Air France SA and others on Oct. 24 to join the rival Star Alliance.With cross-border M&A limited in most of...  Continue reading
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New ConocoPhillips deal strategy: Don't do 'em

ConocoPhillips' M&A hopes have gone down with oil prices. After reporting a fourth-quarter net loss of $31.8 billion (mainly reflecting goodwill impairment on some assets)  the American oil major is playing it safe. "There is nothing in the $12.5 billion [2009 capital spending] program for acquisitions. We will live within...  Continue reading
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Auto suppliers align; others seek federal assistance

Auto suppliers Metaldyne Corp. and Kolbenschmidt Pierburg AG are teaming to develop powertrain component systems for fuel-efficient vehicles. The companies, which will remain independent operations but collaborate on design and marketing, aim to help automakers more quickly develop fuel-efficient vehicles. German giant Kolbenschmidt owns more than 20% of the global...  Continue reading
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Chinese-made Volvos? Maybe, maybe not

Posted on January 29, 2009 at 2:28 PM
Filed under: Corporate Strategy | Divesting and Restructuring
Tagged: ,
There's still plenty of money over there in China, and some ambitious manufacturing companies with obvious strategic needs. So lately, whenever a U.S. company needs to sell something big, Chinese buyers feature prominently on the list of prospects.That was the case for General Electric Co.'s appliance division, for example. But...  Continue reading
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Best Buy may buy Circuit City's vacant stores

Posted on January 29, 2009 at 2:10 PM
Filed under: Acquisitions | Corporate Strategy
Tagged: , , , ,
It looks like Best Buy Co. could scoop up the vacant stores bankrupt competitor Circuit City Inc. is leaving behind after its liquidation. Chief executive Brad Anderson told Reuters at the World Economic Forum in Davos, Switzerland, that while the priority is to remain "cash strong," his company would consider...  Continue reading
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