On Dow Jones Investment Banker Today: Asia Spirits M&A, Daimler

2nd Jul 2010 16:08

LONDON (Dow Jones Investment Banker)--The following columns have been published exclusively on Dow Jones Investment Banker in recent days. Many Dow Jones Investment Banker columns contain spreadsheets, video, PDFs and other supporting material. To arrange access to the best of Dow Jones news and opinion on companies, sectors and deals for investment bankers, please contact [email protected]. To see more, visit: http://www.dowjones.com/banker THE MALL: Asia Spirits M&A Needs Local, Maybe Niche, Brands ?Bain HONG KONG--Diageo PLC (DGE.LN), Remy Cointreau SA (RCO.FR) and Pernod Ricard SA (RI.FR) all posted solid revenue growth in their last set of results. Much of that is being driven by emerging markets' growing taste for a stiff drink. Dow Jones Investment Banker caught up with Mike Booker, partner and head of Bain & Co.'s Consumer Goods practice in Asia, to talk about the spirits business in the region and the challenges that western players have in trying to get in on the party. Contact the columnist: [email protected] LANDSCAPE: M&A And Buybacks May Be Driven By Tax Worries LONDON--Recent data on U.S. stock buybacks and global M&A show that M&A is on a steady path and that buybacks are increasing. This could be partly because companies may be worried about impending tax regimes. Looking first at the recent data on deal activity, Dealogic reports that global M&A revenue for the first half of 2010 was up 13% compared with the same time last year at $7.0 billion, but down on the $7.6 billion in the second half of last year, that is, pretty flat for the past 18 months. Contact the columnist: [email protected] THE APPRAISER: U.S. Homebuilders' Foundations Are Still Shaky NEW YORK--U.S. homebuilders have managed to issue equity and debt at a feverish pace over the past year in an effort to survive the downturn. Because of their sizable cash chests, these companies are unlikely to become insolvent, even if housing sales remain at anemic levels. But given the continued distressed fundamentals, they will likely have to issue more debt and equity as their existing debt matures over the next five years. (Includes downloadable Excel spreadsheet: US homebuilders' cash and debt.) Contact the columnist: [email protected] HEAVY DUTY: Siemens' Banking Play LONDON/NEW YORK--Siemens AG's (SIE.XE) decision to set up its own bank won't make a noticeable difference in the bottom line of the German industrial conglomerate. It is important nonetheless for two reasons: It means the bellwether industrial group has a guarded view about the prospects for economic recovery, and it could serve as a template for other companies whose customers are having problems financing purchases. (Includes downloadable Excel spreadsheet: Candidates for internal finance arms.) Contact the columnists: [email protected]; [email protected] WHEELS: Do It Dieter: Daimler Truck Upside Can't Be Ignored LONDON--If a global credit crisis can't force strategic M&A within the auto industry then nothing can. Some manufacturers are therefore pruning their corporate trees or doing capital tie-ups to create value. Daimler AG (DAI.XE) can combine both. Here's how. Daimler must consider creating two separately listed companies by spinning off its commercial vehicle operations to existing shareholders. Its luxury and Smart vehicles should be tied to the maker's financing arm, and the commercial vehicles unit, which includes trucks, vans and buses, excised. (Includes downloadable Excel spreadsheets: The hidden value in Daimler's commercial vehicle operations and a breakdown of Daimler sales by region.) Contact the columnist: [email protected] THE REMEDY: Obesity Deals Offer Slim Pickings LONDON--Arena Pharmaceuticals Inc.'s (ARNA) surprise deal to license out its anti-obesity drug to Eisai Co. Ltd. (4523.TO) speaks volumes about prospects for the space and has implications for the other two U.S. developers in the field. For one thing, bankers working with Vivus Inc. (VVUS) and Orexigen Therapeutics Inc. (OREX) should be able to look to more lucrative licensing deals, given that these firms' projects are more efficacious than Arena's lorcaserin. For another, it's now clear that niche players are likelier partners than big pharma in an area which has proved a graveyard for drugs once touted as blockbusters. Contact the columnist: [email protected] TIER ONE: ECB Rollover Proves Anticlimactic, But The Bears Remain NEW YORK--The prospect of the European Central Bank unwinding its emergency liquidity measures spooked markets around the world this week. The event itself, as a Texas cowboy would say, was all hat and no cattle. There was enough liquidity to keep European banking from seizing up. But the global macro bears aren't covering -- they see plenty of rough riding ahead, and they have a point. Contact the columnist: [email protected] TIER ONE: Malaysian Banks Need To Merge For Scale NEW YORK/HONG KONG--The financial liberalization program Malaysia's government introduced last year opened the country to greater foreign banking competition. Look for consolidation soon among Malaysia's smaller banks, with opportunities for foreign banks to act as white knights. Contact the columnists: [email protected]; [email protected] (END) Dow Jones Newswires July 02, 2010 11:08 ET (15:08 GMT)