- RBS could use contract clause on ABN Amro deal if markets fall further
- OMX bid battle tests Greifeld’s leadership
- Buyers eye Nasdaq’s LSE stake
- Nasdaq set to extend LSE sale deadline
- Sony Ericsson’s Flint steps down as president
- Lindt CEO says considering buying Godiva: paper
RBS could use contract clause on ABN Amro deal if markets fall further
- The Times of London
The Royal Bank of Scotland-led consortium could invoke a “material adverse change [MAC]” clause to lower the price of its €70 billion offer (£47.2 billion) for ABN Amro if market conditions worsen.
Sources said that RBS and its partners have not yet had any discussions about using the so-called MAC clause, but it is an option if the credit crunch continues to wreak havoc.
A MAC clause allows an acquirer to try to reduce an agreed price for a target or walk away altogether if it can prove that there has been change that has had a material impact on the value of the target.
They are not often invoked and are very difficult to prove, especially in the UK, where the Takeover Panel has famously ruled against them in the past, most notably forcing WPP to press ahead with its acquisition of Tempus in 2001. However, given the extent of the turmoil in the credit markets, some companies and virtually all the top investment banks are talking to their lawyers about invoking the MAC as a way of wriggling out of overpriced deals…..
OMX bid battle tests Greifeld’s leadership
- Financial Times
Nasdaq is battling to save its agreed bid for Nordic exchanges operator OMX, using every tool at its disposal.
For Bob Greifeld, its chief executive, the stakes are high. Nasdaq’s bungled hostile bid for the London Stock Exchange has left it without a merger partner in a rapidly consolidating industry. To lose two potential partners, to paraphrase a cliché, could make Mr Greifeld appear guilty of the sort of carelessness that demands a change at the helm.
Mr Greifeld’s strategy has been two-pronged. First, he has made the rounds of shareholders and politicians, cementing the message that Nasdaq is a long term and proper custodian of local capital markets.
Second, Nasdaq has done as much as possible to raise questions about the suitability of its rival, Borse Dubai, as the custodian of an exchange. In this undertaking, analysts say, Mr Greifeld has the support of much of the Swedish political and business establishment in spite of the fact that Nasdaq’s rival is offering far more…..
Buyers eye Nasdaq’s LSE stake
- Financial Times
Nasdaq has received expressions of interest from potential buyers of its 31 per cent stake in the London Stock Exchange and has asked serious bidders to sign confidentiality agreements before proceeding with any discussions.
Nasdaq and its advisers have declined to comment. However, among those expressing an interest are several large sovereign funds that view a stake in the LSE as a trophy asset.
LSE shares closed at £13.66 on Friday after rising about 5 per cent over the week as speculation grew that a potential buyer would emerge.
Among sovereign funds understood to be interested are Temasek and Delta Two, the sovereign funds of Singapore and Qatar, respectively. Qatar, like its neighbour Dubai, is seeking to promote itself as an international financial centre between the time zones of the Tokyo and London markets….
Nasdaq set to extend LSE sale deadline
- Daily Telegraph
The race to buy a 31pc stake in the London Stock Exchange could continue into next week if Nasdaq, which is selling the shares, does not receive an offer it is willing to accept by the weekend.
The Daily Telegraph understands that although the American exchange set a September 7 deadline by which it wanted to divest the sizeable LSE share, the deadline could be extended.
Investment bank UBS, which is running the sale process for Nasdaq, is understood to be prepared to run the process on should the need arise.
Banking sources suggest that in spite of significant amounts of interest in the sizeable stake, Nasdaq has yet to receive a firm bid….
Sony Ericsson’s Flint steps down as president
- Reuters
Mobile handset maker Sony Ericsson said on Tuesday its president, Miles Flint, would step down and would be succeeded by Sony Electronics USA Chairman Hideki "Dick" Komiyama as of Nov. 1.
Flint’s resignation came as a surprise to analysts, who applauded his performance but highlighted the challenge his successor will face as the firm tries to stay profitable while stealing market share from entrenched rivals.
"He has done a very good job because of the market share gains and the profitability that Sony Ericsson has achieved," said Kulbinder Garcha, analyst at Credit Suisse in London.
Analysts said Flint had in no sense had been forced out, as the company’s owners were pleased with what he had achieved….
Lindt CEO says considering buying
Godiva: paper – Reuters
Swiss chocolate maker Lindt & Spruengli is considering buying Campbell Soup Co.’s Godiva Chocolatier brand, its chief executive told the Financial Times Deutschland newspaper.
"It is my duty towards the shareholders to analyze every potential acquisition," Chief Executive Ernst Tanner was quoted as saying in an interview published on Tuesday.
"It is a question of whether an acquisition would bring Lindt closer to its aim of becoming an even bigger global producer of premium chocolate," he added.
"We have to do this in the case of Godiva as well. Then we will make a decision," the CEO said…..
