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Sunday, November 22, 
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Dealscape's rumor mill: Week ending May 30, 2008

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Windmill_Hamptons_NY.jpgTalk of InBev NV purchasing Anheuser-Busch Cos. may have started a week earlier, but the rumor was hopping all week long. The Belgian brewer is apparently on the prowl again, and it has reportedly prepared a $46 billion bid for St. Louis-based Anheuser-Busch. But in the event the Busch family doesn't open up to talks, it may also be preparing an alternative one for SABMiller plc. The speculation has led to some frothy discussion in the blogosphere and on the message boards.

InBev wasn't the only rumor sloshing around from Europe this week as deal talk centering around Deutsche Post AG, Infineon Technologies AG and LVMH Group bubbled up too. Of course with the dollar so week, and the euro so strong, it really comes as no surprise that Europe would fill the sails of the rumor mill. And for those who thought private equity was dead, guess again as talk of big deals involving Apollo Management LP, Kohlberg Kravis Roberts & Co. and Ripplewood Holdings LLC surfaced. See the full list of rumors and more after the jump. - Matthew Wurtzel

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Also on Dealscape

From Europe

Deutsche Post saying 'auf Wiedersehen' to DHL?

Since the beginning of the year, speculation surrounding the future of DHL International GmbH has bubbled up as parent Deutsch Post AG enters a period of restructuring. First the rumor was a deal with FedEx Corp., and now speculation centers around United Parcel Service Inc.

Will KKR take Infineon private?

The resignation of Infineon Technologies AG CEO Wolfgang Ziebart on Monday prompted the media and analysts to talk about M&A options for the German chipmaker. And at the top of the list was a merger with Kohlberg Kravis Roberts & Co. portfolio company NXP Semiconductor, a deal that Ziebart was reputedly against and that may have cost him his job.

Private Equity

Apollo leads in Fresh Market auction

The auction of Fresh Market Inc., a family-owned supermarket chain, has hit the second round with bids expected at roughly $800 million, sources said Thursday, May 29. Apollo Management LP, the private equity firm founded by Leon Black, is in the lead, sources said. "It's theirs to lose," one person said. (See full story for the other bidders.)

Ripplewood may make waves in bond insurer pool

Private equity firm Ripplewood Holdings LLC may be looking to dive into the troubled bond insurer sector. According to a Wednesday New York Post report, the firm is considering the launch of a bond insurance business. Discussions to start a monoline are in very early stages and may not materialize, the report added. When The Deal contact Ripplewood, a spokesman declined to comment.

Is Peltz digging for diamonds at Tiffany's?

Along with Tiffany & Co.'s announcement of its 12% increase in worldwide sales, Peter May, a founding partner of investment firm Trian Fund Management LP, has been elected to the board. May works alongside Nelson Peltz, and both are known for being activist shareholders that have aggressively pushed companies such as Wendy's International Inc., Cadbury Schweppes plc and H.J. Heinz Co. to change. The development has prompted talk of a possible sale to LVMH.

M&A

UAL abandons US Airways merger talks

The parent of United Airlines Inc. walked away from the altar on Thursday, abandoning merger talks with US Airways Group Inc. in favor of pursuing an alliance with Continental Airlines Inc. US Airways and United parent UAL Corp. since late April had been in discussions about a potential deal that could have cut significant capacity out of their combined route network, a step toward the airlines regaining pricing power in the face of climbing fuel prices.

Will Time Warner Cable acquire Charter?

Pali Research analyst Richard Greenfield said that Time Warner Cable Inc. may target Charter Communications Inc. after it splits from Time Warner Inc. at the end of the year.

From Washington

Would Dems put an end to M&A?

Recently, Dealscape noted that a number of Wall Street chiefs supported Democrats in the primary season through campaign contributions, so a post about possible antitrust changes under the next administration from Deal Journal caught us by surprise.

Paulson may have an ally in SEC, CFTC merger

Treasury Secretary Henry Paulson's plan to meld the Securities and Exchange Commission and the Commodities Futures Trading Commission is already experiencing a major backlash from key lawmakers and regulators, but a new commissioner expected to join one of these agencies has the kind of experience that could help the process move forward.

Wall Street prefers Democrats?

Last week both Carl Icahn and Warren Buffett announced their picks for the upcoming presidential sweepstakes. Icahn let his selection be known through an unexpected rant against Sen. Barack Obama, D-Ill., during an investor conference, and Buffett offered a seemingly offhand comment -- although is anything really offhand with Buffett? -- praising Obama to a journalist. But where does the rest of Wall Street stand?





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