KKR’s $12 bln proposal has put the telco in play. The process is likely to involve multiple bidders and key actors including French shareholder Vivendi and the Italian government. As with Telecom Italia’s 1999 leveraged takeover, it’s a boon for bankers, lawyers and consultants.
Despite backing from proxy advisory firms, the $4 bln bank is dropping its defence plan. Without support from Tokyo as a big owner to block it, SBI can now lift its stake to 48% and effective control. It’s a stark reminder of how exposed the country’s minority shareholders are.
The 1999 buyout of Italy’s phone monopoly baptised Europe’s new single currency. The years since have been terrible for the company and its many trophy-seeking owners, who have lost some $23 bln. Here’s why the latest offer from private equity firm KKR offers hope for redemption.
Following its jumbo Malaysian merger, the Norwegian telecom operator plans to combine its Thai unit with a rival owned by conglomerate CP. There’s a 25% premium on offer to sell, but $2 bln of intended synergies from the first transaction suggest sticking around is a better call.
The Swiss lender picked Irishman Colm Kelleher to lead its board, while the German bank nominated Dutchman Alex Wynaendts. The former Morgan Stanley banker might bring some of the U.S. firm’s valuation magic to UBS. But M&A-hungry Deutsche could use more political heft in Berlin.