Linux e Google: Deals Today

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Good Morning Postlinuxeg,

WED 26 May 2010

RiskMetrics has weighed in against Pru buying AIG's AIA Asian assets, saying $35.5 billion is too much. The risk advisory firm joins a chorus of analysts chirping away from Singapore to London about problems with a deal that would pay off a huge chunk of AIG's debt to Uncle Sam while transforming Pru into an Asian powerhouse.

Prudential holds a shareholders vote on June 7 to clear a $21 billion rights offer to fund the acquisition. One big issue is the price tag, which has drawn scrutiny given the fact that AIG has limited leverage to demand a big premium since it is selling the assets under duress. Pru's ability to hit its projected revenue "synergies" from the deal are a big concern too.

CLSA Asia Pacific Markets, a broker not involved with deal, said in a report last week that a plan keeping both AIA and Pru brands intact and competing with each other will negate such gains. "It is already a challenge to retain agents, let alone target a dramatic increase in sales," CLSA said.

The view of RiskMetrics, which itself was bought only a couple of months ago, could help to unravel a big deal just when the falling market looks set to start pulling the rug out from under the M&A market.
--Chris Kaufman

Foster's cheers with beer and wine split

Slim to merge Brazil fixed, mobile business: report

Australia coal miners bid $4 billion for rail network

Private equity groups fund credit-starved miners

Gulf spill could spur consolidation: bankers

Total eyeing asset deals, no corporate M&A

Telefonica could still make hostile bid for PT: report

Russian tycoon eyes oil and telecom acquisitions

Blockbuster's talks with creditors hit snag: report

Foster's cheers with beer and wine split

May 26, 2010 08:31 AM ET

SYDNEY (Reuters) - Foster's Group , Australia's largest brewer, said it will separate its struggling wine unit from its robust beer business, driving its shares up almost 9 percent as markets priced in potential takeover bids.

Full Article

Slim to merge Brazil fixed, mobile business: report

May 26, 2010 08:55 AM ET

SAO PAULO (Reuters) - Mexican billionaire Carlos Slim, the world's richest man, plans to merge his mobile and fixed-line businesses in Brazil in a bid to slash costs, Folha de S.Paulo newspaper reported on Wednesday, citing unnamed sources close to Slim.