The Canada Pension Plan Investment Board (CPPIB) and Onex Corp are working together to propose a takeover of UK-based car parts maker, Tomkins Plc, just as the weakening British pound attracts more North American investors eager to take assets off of UK companies’ hands.
While the CPPIB and Toronto-based Onex have not released a formal bid, the companies have proposed a deal, which is worth over $4 billion.
After Tomkins reported receiving the proposal on July 19, 2010, the possible takeover lifted the car parts manufacturer’s shares 33.1% to 306.6 pence by mid-morning in London, thereby valuing Tomkins at approximately £2.7 billion ($4.1 billion).
The stock reached 314 pence - the highest Tomkins has obtained since 2006. However, it didn’t make it to the 325 pence cash offer that potential buyers considered.
In May 2010, Onex CEO Gerard Schwartz expected the current economic situation to create investment opportunities for Canada’s largest private equity firm. At that time, the company possessed about C$1 billion ($950 million) in cash, as well as third party uncalled capital worth C$3.9 billion ($3.8 billion) for acquisitions.
The CPPIB is Canada’s second largest pension fund manager and oversees assets worth C$127 billion. It is also one of the top private equity investors in the world.
Wednesday, September 8, 2010
Thursday, August 26, 2010
Survey: SMEs of Middle East Report High Business Confidence Level
Even in the midst of a global economic crisis, small businesses continue to exude confidence, especially those in Turkey and the Middle East. A recent survey revealed that Middle Eastern small and medium enterprises (SMEs) are planning to hire more people and boost investment.
HSBC’s semi-annual monitor on global small business confidence showed that 49% of SMEs in these areas keep a positive perspective of the next six months, while 50% are looking forward to increasing capital expenditure by the end of the year.
The data, which included results from UAE for the first time, suggested a positive outlook among many businesses in all Middle Eastern countries. Saudi Arabia ranked second (after Vietnam) in the global rankings, and for the second time, the Middle East scored higher compared to developing and emerging markets.
HSBC’s bi-annual Small Business Confidence Monitor looks at the outlook of SMEs regarding capital investment plans, local economic growth and recruitment. The latest monitoring session covered more than 6,300 SMEs in North America, Europe, Latin America, the Middle East and the rest of Asia.
Saudi Arabia scored 145, the highest among all Middle Eastern countries. While Qatar’s score dropped from 159 in 2009 to 137 in 2010, it’s still well above the regional average (132) and the global average (118).
HSBC’s semi-annual monitor on global small business confidence showed that 49% of SMEs in these areas keep a positive perspective of the next six months, while 50% are looking forward to increasing capital expenditure by the end of the year.
The data, which included results from UAE for the first time, suggested a positive outlook among many businesses in all Middle Eastern countries. Saudi Arabia ranked second (after Vietnam) in the global rankings, and for the second time, the Middle East scored higher compared to developing and emerging markets.
HSBC’s bi-annual Small Business Confidence Monitor looks at the outlook of SMEs regarding capital investment plans, local economic growth and recruitment. The latest monitoring session covered more than 6,300 SMEs in North America, Europe, Latin America, the Middle East and the rest of Asia.
Saudi Arabia scored 145, the highest among all Middle Eastern countries. While Qatar’s score dropped from 159 in 2009 to 137 in 2010, it’s still well above the regional average (132) and the global average (118).
Friday, August 20, 2010
UK Falling Behind in Energy Industry Investment
A government advisory organization said that the UK is falling behind other wealthy countries in terms of developing new technologies for energy, and this hampers the creation of green jobs in the country.
The Committee on Climate Change, a statutory body that provides emission reduction advice, said that the UK used up only 0.01% of GDP on energy in 2007, which is the latest year wherein comparative data is available, whereas Japan spent 0.09%, France 0.05%, and the US 0.03%
In 2009, the government spent about £550 million of public money for low carbon technologies. Only about £260 million of this money was used on energy.
The committee also quoted the International Energy Agency, saying that investment on energy should be two to five times more than the current levels so that climate targets can be met.
Furthermore, the committee called on UK’s government to focus on six areas, namely: wave and tidal power, offshore wind, carbon capture and storage, electric vehicles, smart grids and meters, and aviation.
The advisory group warned that without support from the government, an array of low carbon technologies will be trapped in a point termed as “valley of death,” a situation that the private sector isn’t willing to take the risk of investing in.
The Committee on Climate Change, a statutory body that provides emission reduction advice, said that the UK used up only 0.01% of GDP on energy in 2007, which is the latest year wherein comparative data is available, whereas Japan spent 0.09%, France 0.05%, and the US 0.03%
In 2009, the government spent about £550 million of public money for low carbon technologies. Only about £260 million of this money was used on energy.
The committee also quoted the International Energy Agency, saying that investment on energy should be two to five times more than the current levels so that climate targets can be met.
Furthermore, the committee called on UK’s government to focus on six areas, namely: wave and tidal power, offshore wind, carbon capture and storage, electric vehicles, smart grids and meters, and aviation.
The advisory group warned that without support from the government, an array of low carbon technologies will be trapped in a point termed as “valley of death,” a situation that the private sector isn’t willing to take the risk of investing in.
Tuesday, August 10, 2010
Sara Lee to Sell Bakery Unit
In line with Sara Lee’s plan of revamping the company, it is currently looking at selling its struggling North American bakery and bread business. Sara Lee, famous for producing Jimmy Dean foods, hopes that this move would bring about a broader change for the company.
Sara Lee, a major player in the food industry, has been courting possible buyers of the bread unit, which has been seeing dwindling sales throughout the recession, according to sources that refused to be mentioned, for this matter isn’t public. The company has obtained the services of Bank of America, Corp to get financial advice on the bakery unit, which includes one of the largest fresh bread brands in the country.
The formal transaction process hasn’t started and advisers have only begun to focus on interest from private equity funds.
Over the last decade, Sara Lee has been constantly developing the expansion of the unit. The company started with closing a $2.8 billion deal to acquire Earthgrains in 2001, and then a $72 million deal to obtain Butter Krust Baking in 2006. However, due to tighter competition, the bakery division encountered challenging times. Eventually, its profit and sales significantly dropped. In February 2010, company CEO Marcel Smits announced to investors that the bakery business isn’t the company’s main source of profit.
More info:
http://www.thestreet.com/story/10812216/1/sara-lee-examines-sale-of-bakery-unit.html?cm_ven=GOOGLEFI
http://articles.chicagotribune.com/2010-07-20/business/ct-biz-0721-sara-lee-bread-20100720_1_bakery-sales-sara-lee-bread-business
Sara Lee, a major player in the food industry, has been courting possible buyers of the bread unit, which has been seeing dwindling sales throughout the recession, according to sources that refused to be mentioned, for this matter isn’t public. The company has obtained the services of Bank of America, Corp to get financial advice on the bakery unit, which includes one of the largest fresh bread brands in the country.
The formal transaction process hasn’t started and advisers have only begun to focus on interest from private equity funds.
Over the last decade, Sara Lee has been constantly developing the expansion of the unit. The company started with closing a $2.8 billion deal to acquire Earthgrains in 2001, and then a $72 million deal to obtain Butter Krust Baking in 2006. However, due to tighter competition, the bakery division encountered challenging times. Eventually, its profit and sales significantly dropped. In February 2010, company CEO Marcel Smits announced to investors that the bakery business isn’t the company’s main source of profit.
More info:
http://www.thestreet.com/story/10812216/1/sara-lee-examines-sale-of-bakery-unit.html?cm_ven=GOOGLEFI
http://articles.chicagotribune.com/2010-07-20/business/ct-biz-0721-sara-lee-bread-20100720_1_bakery-sales-sara-lee-bread-business
Thursday, August 5, 2010
Apple’s Revenue Lifted Thanks to iPad, Mac Sales
The iPad’s strong debut and the new iPhone’s popularity helped gadget manufacturer Apple achieve its best quarter ever, the company reported.
Apple’s sales soared to an astonishing $15.7 billion, which is 61% greater compared to the same period last year. Net income increased up to $3.25 billion, which is higher by 78% from last year.
In the second quarter, the electronics company sold 3.47 million Mac computers - more computers than it has ever sold in a three-month span. Apple also sold 3.27 million iPad tablet computers, which was released into the market on April 3, 2010.
The iPad returned $2.17 billion in revenues, which represents about 14% of the California-based company’s total income for the second quarter.
As stated by Apple CEO Steve Jobs, users love the revolutionary iPad and the company has more products up its sleeves to hit the market this year. The CEO added that more people are purchasing Macs than ever before.
As for the iPhone, 8.4 million units were sold during the quarter, which is up by 61% from more than a year ago. The latest version of the touch screen smartphone, the iPhone 4, went on sale on June 24, 2010 in five countries, although Apple has been receiving complains about poor reception because of the mobile device’s unusual antenna styling.
Apple’s sales soared to an astonishing $15.7 billion, which is 61% greater compared to the same period last year. Net income increased up to $3.25 billion, which is higher by 78% from last year.
In the second quarter, the electronics company sold 3.47 million Mac computers - more computers than it has ever sold in a three-month span. Apple also sold 3.27 million iPad tablet computers, which was released into the market on April 3, 2010.
The iPad returned $2.17 billion in revenues, which represents about 14% of the California-based company’s total income for the second quarter.
As stated by Apple CEO Steve Jobs, users love the revolutionary iPad and the company has more products up its sleeves to hit the market this year. The CEO added that more people are purchasing Macs than ever before.
As for the iPhone, 8.4 million units were sold during the quarter, which is up by 61% from more than a year ago. The latest version of the touch screen smartphone, the iPhone 4, went on sale on June 24, 2010 in five countries, although Apple has been receiving complains about poor reception because of the mobile device’s unusual antenna styling.
Tuesday, August 3, 2010
BP to Sell Assets to Pay for Oil Leak
BP Plc, the British energy company in the midst of an oil spill crisis, agreed to sell some of its assets to Apache Corp for $7 billion to pay for one of the worst oil leaks in history. These assets include production and exploration facilities in Egypt, Canada and the US.
The $7 billion deal is part of BP’s plan of raising $10 billion by selling some of its assets. Apache will pay a cash deposit of $5 billion on July 30, 2010.
As of July 20, BP’s share price decreased 1.54% in New York. Earlier that day, the energy company reported that it would sell assets in Pakistan and Vietnam worth $1.7 billion.
The gruesome disaster in the Gulf of Mexico remains on the priority list of both British and American governments.
British Prime Minister David Cameron commended BP for its continuing efforts in plugging the leak and paying for the spill’s damages. On July 20, US officials reported BP’s latest step in stopping the spill – a cap that prevented oil from gushing out.
Fishing and tourism industries operating in the area around the Gulf have been devastated by the millions gallons of oil that hit marshes and beaches. Natural environments and habitats have been threatened and as a result, the Obama administration received negative feedback and ties with Britain were affected.
More sources:
http://finance.yahoo.com/news/BP-to-sell-assets-for-7-apf-3900764604.html?x=0&sec=topStories&pos=3&asset=&ccode=
http://www.google.com/hostednews/ap/article/ALeqM5g9wOfmmrQmVwnYqaM5OpN5B3mxXgD9H319B80
The $7 billion deal is part of BP’s plan of raising $10 billion by selling some of its assets. Apache will pay a cash deposit of $5 billion on July 30, 2010.
As of July 20, BP’s share price decreased 1.54% in New York. Earlier that day, the energy company reported that it would sell assets in Pakistan and Vietnam worth $1.7 billion.
The gruesome disaster in the Gulf of Mexico remains on the priority list of both British and American governments.
British Prime Minister David Cameron commended BP for its continuing efforts in plugging the leak and paying for the spill’s damages. On July 20, US officials reported BP’s latest step in stopping the spill – a cap that prevented oil from gushing out.
Fishing and tourism industries operating in the area around the Gulf have been devastated by the millions gallons of oil that hit marshes and beaches. Natural environments and habitats have been threatened and as a result, the Obama administration received negative feedback and ties with Britain were affected.
More sources:
http://finance.yahoo.com/news/BP-to-sell-assets-for-7-apf-3900764604.html?x=0&sec=topStories&pos=3&asset=&ccode=
http://www.google.com/hostednews/ap/article/ALeqM5g9wOfmmrQmVwnYqaM5OpN5B3mxXgD9H319B80
Thursday, July 29, 2010
Fiat Makes Second Quarter Profit
Fiat, the Italian automaker that controls Chrysler, returned to a second quarter profit due to improved sales of agricultural vehicles and equipment. The company also reported that it may raise its 2010 forecast later this year.
The carmaker reported a net income of $115.6 million (or €90 million) for the second quarter of 2010, whereas the company had a €168 million loss last year for the same period. Net revenues rose 12.5% to €14.8 billion. In addition to this, earnings before interest or trading profit, taxes, and one-time losses or gains more than doubled and reached €651 million, which significantly trumps the €359 million estimate of 11 business analyses gathered by Bloomberg.
Fiat produces cars under the Fiat, Alfa Romeo and Lancia names, as well as trucks, construction equipment and farming machines.
Revenues at agriculture and CNH construction increased 16% to €3.3 billion as improved sales in South and North America compensated for the weak markets in the former Soviet Union, Australia, and Europe, according to Fiat. Iveco trucks climbed 18.3% to €2.1 billion with the number of deliveries up 32% to 34,318 vehicles.
In a release, Fiat added that recovery in the lightweight commercial vehicle division compensated for the decrease in sales of passenger cars, especially in Germany and Italy, following a cease in European eco-incentive programs.
The carmaker reported a net income of $115.6 million (or €90 million) for the second quarter of 2010, whereas the company had a €168 million loss last year for the same period. Net revenues rose 12.5% to €14.8 billion. In addition to this, earnings before interest or trading profit, taxes, and one-time losses or gains more than doubled and reached €651 million, which significantly trumps the €359 million estimate of 11 business analyses gathered by Bloomberg.
Fiat produces cars under the Fiat, Alfa Romeo and Lancia names, as well as trucks, construction equipment and farming machines.
Revenues at agriculture and CNH construction increased 16% to €3.3 billion as improved sales in South and North America compensated for the weak markets in the former Soviet Union, Australia, and Europe, according to Fiat. Iveco trucks climbed 18.3% to €2.1 billion with the number of deliveries up 32% to 34,318 vehicles.
In a release, Fiat added that recovery in the lightweight commercial vehicle division compensated for the decrease in sales of passenger cars, especially in Germany and Italy, following a cease in European eco-incentive programs.
Subscribe to:
Posts (Atom)