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Tuesday Papers: Texas Instruments in $6.5bn acquisition - tips, comment and bids

Financial Times

* Texas Instruments announced its biggest deal in more than a decade with the $6.5 billion all-cash acquisition of Silicon Valley's National Semiconductor.

* Pfizer has agreed to sell its Capsugel business to private equity group KKR for $2.37 billion in cash.

* BP has agreed to sell its aluminium business for $680 million in cash.

* Belgian chemicals company Solvay made a sizeable bet on emerging markets on Monday with a €3.4 billion agreed bid for French rival Rhodia.

* The four-month takeover tussle for Mouchel ended without a deal on Monday.

* Google has bid $900 million for a stack of patents put up for sale by Nortel, the bankrupt Canadian communications equipment maker.

* Cheung Kong Holdings plans to raise $1.5 billion-$1.8 billion by spinning off its flagship Chinese property asset.

The Lex Column

* Ford: on top - it is hard to believe that Ford executives did not derive some satisfaction from edging their old rival.

* M&A: careful on the financing - in the first quarter of 2011, announced cash-only deals accounted for 53 per cent of the total deal value, the lowest proportion since 2001, according to Mergermarket.

* Vodafone / Vivendi: repeat feat - the danger is that all the extra cash could give Vodafone’s executives a rush of blood to the head. Think of all the big, bold and silly acquisitions they could make.

* Equities and inflation: investor victims - reported results resemble an old picture: they flatter to deceive.

* Minmetals / Equinox - the parallels between Minmetals’ proposed bid for Equinox and Chinalco’s move on Rio Tinto two years ago are irresistible.


* Vodafone's Colao is buoyed by fierce revisionism - challenge facing the chief executive is seen as diplomatic rather than transformative – negotiating the resumption of dividends from US joint venture Verizon Wireless.

Other comment

* After SFR sale, Vodafone should look to resolve the standoff with Verizon in the US over the resolutely dividend-free zone that is joint venture Verizon Wireless.

* Efficiency thrives on meritocracy, which is why family-dominated businesses feel the need, eventually, to bring in outside executive.

The Times

* Close Brothers acquires listed wealth management adviser Cavanagh Group.

* HGCapital has sold its German lighting business SLV to Cinven for more than €400 million.

* Barclays is buying the small-business credit card portfolio of MBNA Europe, consisting of 60,000 accounts with approximately £130 million of outstanding balances.

* The Nasdaq-listed software designer Epicor has agreed to sell itself to the private equity firm Apax Partners for about $976 million in cash.

* China’s largest metals trader Minmetals Resources has launched a $6.5bn bid for Equinox Minerals, the Australian-Canadian copper miner.

Tempus share tips

* Hold Vodafone and Cranswick; sell Alterian.


* Three major deals totalling $18 billion have landed since Sunday night and, in the process, ensured the second quarter of 2011 is off to a flyer.

* Those eager to read the report on Wall Street’s role in the sub-prime mortgage crisis, by the Senate Permanent Sub-committee on Investigations, do have not much longer to wait.

The Independent

* Romag Holdings, the troubled glassmaker, was sold to Gentoo Group yesterday after failing to agree new financing terms with its lender, Lloyds Banking Group.

Investment Column

* Buy Aggreko; hold Cranswick and YouGov.


* Call waiting... Colao has yet to make the big decisions at Vodafone.

The Guardian

Viewpoint Column

* A full-scale punch-up at Punch Taverns remains a distinct possibility - dissenting bondholders could unleash their lawyers to try to frustrate chief executive Ian Dyson's plan to sell 2,200 pubs.

* Vodafone's big call will be in the US - the company's £7 billion sale of a share in French mobile group SFR looks insignificant compared with the sums at stake in its Verizon Wireless joint venture.

The Daily Telegraph


* National Express's board has unanimously told shareholders to reject an attempt by Elliott Advisors to shake up the board in a move that appears to deal a blow to the aggressive hedge fund.

* Britain needs an injection of Thatcherite radicalism - once our debt to GDP ratio is set firmly on a downward path, what should be on the government's agenda for fundamental reform? The answer should constitute a modern version of Thatcherite radicalism.

Daily Mail


* COMMENT by ALEX BRUMMER: Obama's bare-knuckle fight - whatever amount of cash Obama eventually raises for his reelection campaign, it will be the economy which settles his fate.

* CITY FOCUS by TAMSIN BROWN: Browett battles to save Dixons - shareholders in Dixons Retail have suffered enormous losses since chief executive John Browett took the reins.

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