Ravi Madhavan's A&D Blog

Welcome to my Acquisitions & Divestment blog!

Welcome to my Acquisitions & Divestment blog, which is primarily meant for the community of Katz students and ex-students (MBA, EMBA and Exec Education) who have taken my Acquisitions & Divestment course over the last few years. Given the amount of ongoing interest in M&A, I hope this will grow to be a communication platform for us to keep in touch and help each other keep abreast of new developments in the field. This blog will focus on the strategy and general management views of Acquisitions & Divestment (as opposed to the (technical) financial or legal aspects). I will post here links to M&A events, commentary and resources, as well as share observations about the changing landscape of M&A. Come back often and let me know how we can make this interesting and useful for everyone!

ABB, Thomas & Betts

ABB has done a nice job explaining the deal rationale behind this weekend's announcement of their proposed acquisition of Thomas & Betts. The presentation is detailed and clear, and video remarks by the CEO and division head provide more texture.

Role of private equity in US economy

PBS coverage of the role of private equity in the US economy here. 

Apple enters digital textbook market

Apple's news conference this morning focused on its entry into textbooks on the iPad. NYT story here.

The Eurozone's future

The Peterson Institute has a policy brief out on the likely resolution of the Euro crisis. The analysis is optimistic. Excerpt:

There are only two alternatives. Europe can jettison the monetary union. Or it can adopt a complementary economic union. This brief argues that, for all the turmoil, Europe is well on its way to completing the original concept of a comprehensive economic and monetary union, and that Europe will emerge from the crisis much stronger as a result.

 

Anti-trust review of Martin Marietta - Vulcan offer

WSJ reports that DoJ is drilling deeper into Martin Marietta's takeover offer for Vulcan.

Apple's new transparency

Apple has unveiled a new "Supplier Responsibility" page on its website, with links to a list of its suppliers, a progress report, and so on. I wonder if this is just a response that would have happened any way to its past Supplier issues, or a signal of a more transaprent Apple under Tim Cook...

This could be big...

WSJ reports that potential buyers, including Delta and US Airways, are circling American Airlines. Excerpt:

A deal for the carrier would represent perhaps the last major move in a wave of airline consolidation that has slashed the number of major national carriers to five from roughly triple that number two decades ago.

A looming verdict in India

This WSJ report points to a court verdict, expected soon, that has implications for inbound M&A deals into India. Excerpt:

India's Supreme Court is preparing to issue its decision on whether U.K.-based Vodafone Group PLC must pay about $2.6 billion in taxes on an $11.1 billion deal it struck in 2007 with a unit of Hong Kong's Hutchison Whampoa Ltd. to enter India.

A Vodafone loss would damp cross-border mergers and acquisitions here, many deal experts say, rendering standard transaction structures too risky and forcing foreign companies to weigh potentially new litigation and insurance costs. Some companies might simply decide that India isn't worth the headache. A ruling is expected in weeks.

 

Apple's acquisition in Flash memory

By way of NYT DealBook, here's a CNET report on Apple's acquisition of Israeli flash memory company Anobit. Samsung has been Apple's main supplier of flash technology for a while, but that relationship is probably somewhat strained now due to the worldwide legal battles the two firms have been fighting over iPhone IP. CNET says the deal is probably in the $400-500M range, which would make it one of Apple's largest acquisitions ever.

State of US manufacturing

Adam Davidson's take in The Atlantic Magazine, summarized by the following fact: "In the past decade, the flow of goods emerging from U.S. factories has risen by about a third. Factory employment has fallen by roughly the same fraction." Sober reading.