Morning meeting: Monday merger mania
A DOSE of Monday merger mania swept across financial markets following a flurry of takeover deals on both sides of the Atlantic.
As we report, British companies were heavily involved, either as predator or prey.
There is renewed confidence among companies that survived the downturn in strong shape.
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Among those splashing the cash were Reckitt Benckiser, Yule Catto, GlaxoSmithKline, and Wood Group.
US buyers were GE, snapping up Britain’s Wellstream, and Thermo Fisher Scientific paying £1.3billion for rival Dionex. Lockmaker Assa Abloy paid £1billion for fellow Swede Cardo, while Galderma, jointly owned by L’Oreal and Nestlé, bid £617million for Swedish cosmetics firm Q-Med.
The rush of activity helped spur on global share prices, though it remains to be seen whether it was just coincidence, as bankers and advisers seek to close deals before the Christmas break, or a sign of what is to come in 2011.
Banknote printer De La Rue has made a wise choice in appointing Tim Cobbold as its new boss.
However, would you put money on him still being in the job a year from now?
Following a takeover approach from France’s Oberthur, his new employer is seen as a bid target.
Cobbold put some spark into Chloride, the power equipment company he led, driving its shares to a record high before it was taken over by Emerson of the US for just under £1billion. He is well qualified to head De La Rue, whether or not it retains its independence.
No doubt his pay deal, when it is disclosed, will reflect the uncertainty ahead.
Russia has always been attractive to invaders who inevitably fail to conquer it.
Asda owner Walmart is retreating and closing its Moscow office after failing to find a Russian merger partner.
Although hardly on the same scale as Napoleon’s defeat, it is a reminder of just how chilly a reception awaits western advances.
