Wealth Manager - the site for professional investment managers

Register to get unlimited access to all of Citywire’s Fund Manager database. Registration is free and only takes a minute.

Black Tuesday for M&A as deals worth $120bn fall through

Black Tuesday for M&A as deals worth $120bn fall through

Takeover deals worth nearly $120 billion collapsed yesterday, raising concerns about the sustainability of the buoyant M&A market.

Rupert Murdoch abandoned 21st Century Fox's proposed $71 billion acquisition of Time Warner after the media magnate withdrew his offer, apparently put off by Time Warner's hostility to the deal and the fact Fox's had been sinking since the approach was announced. Fox's share priced rose by 6.7% on the news in after hours trading, while Time Warner's fell by 11%, reflecting investor sentiment on the deal.

Elsewhere, mobile phone operator Sprint, which is owned by Japanese telco giant Softbank, dropped its $32 billion pursuit of T-Mobile US, in the belief that the deal would be blocked on competition grounds. Sprint's shares sank by 15% on the news in after hours trading while T-Mobile's shares were off 9%.

Separately, T-Mobile US rejected a $15 billion bid for a division of its company from French telco Iliad.

On a brighter note for M&A, Walgreens is expected to continue with its $10 billion attempt to acquire the rest of Alliance Boots, which it bought a majority stake in last year.

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Citywire TV
Play JPM’s Negyal: Back divis to temper EM volatility

JPM’s Negyal: Back divis to temper EM volatility

Omar Negyal, co-manager of the JPMorgan Global Emerging Markets Income trust, says a dividend approach to emerging markets reduces the volatility of investing in the asset class.

Play WMR: Why Russia will lose this war

WMR: Why Russia will lose this war

Author and journalist Adam Lebor believes a perfect storm is brewing when it comes to the Russian economy. .

Play WMR: Gerard Lyons warns Asia is the real risk, not Russia & Ukraine

WMR: Gerard Lyons warns Asia is the real risk, not Russia & Ukraine

Chief economic adviser to London mayor Boris Johnson outlines the geo-political risks in Asia and explains why the risk of another eurozone crisis must not be underestimated.

Your Business: Cover Star Club

Profile: 'new normal' now is as dangerous as when it was applied to tech

Profile: 'new normal' now is as dangerous as when it was applied to tech

7IM's CIO Chris Darbyshire says he has been re-energised by his new role, but has little time for 'new normal' doom-mongers

Wealth Manager on Twitter