• Thu, Jan. 26, 9:43 AM
    • Cabela's (NYSE:CAB) had a rough session yesterday after Capital One (NYSE:COF) said it doesn't expect regulatory approval for the two's card deal.
    • This could present opportunity for others, says the team at Stephens, which suggests Synchrony Financial (NYSE:SYF), Bank of America (NYSE:BAC), Citigroup (NYSE:C) and TD Bank (NYSE:TD) may have interest in the portfolio.
    • In Synchrony's case, says Stephens, a purchase at a 10% premium to assets would be 5-10% accretive to earnings.
    • For now, Bass Pro is likely to manage the portfolio in-house and put it up for sale yesterday.
    • Source: Bloomberg
    • Previously: Capital One down 1.8% following earnings miss (Jan. 24)
    Thu, Jan. 26, 9:43 AM | 79 Comments
  • Tue, Jan. 24, 11:41 AM
    • Yesterday's court ruling against the $37B merger of Humana and Aetna alone could cost investment banks more than $100M, according to Compass Point's Charles Peabody, including $41M for Goldman (NYSE:GS), $45M for Citi (NYSE:C), and $15M for Lazard (NYSE:LAZ).
    • Then there's other pending deals like Anthem/Cigna, AT&T/Time Warner, Monsanto/Bayer, and their key advisors like Morgan Stanley (NYSE:MS), Bank of America (NYSE:BAC), and Citi.
    • In addition to what regulators might say, M&A animal spirits may retreat to the sidelines until potential corporate tax changes become clearer.
    • Bottom line: Q1 estimates at the money center banks are assuming improvement in capital markets results, not the lull that might instead be coming (Compass Point is expecting a 15% rise in announced M&A volumes this year to $4.2T).
    • Source: Bloomberg
    • ETFs: KCE
    Tue, Jan. 24, 11:41 AM | 2 Comments
  • Dec. 20, 2016, 3:15 AM
    • Increasing its share of the U.K. credit card market from about 15% to 26%, Lloyds (NYSE:LYG) has beaten other bidders to buy payment business MBNA from Bank of America (NYSE:BAC) for £1.9B.
    • "The acquisition... advances our strategic aim to deliver sustainable growth as a U.K. focused retail and commercial bank," CEO Antonio Horta-Osorio said in a statement.
    Dec. 20, 2016, 3:15 AM | 9 Comments
  • Oct. 28, 2016, 7:06 PM
    • To finance its $85B deal for Time Warner (NYSE:TWX) -- half of which is coming in cash -- AT&T's (NYSE:T) invited its "relationship banks" to join a $40B bridge loan, at around three ticket levels, Bloomberg reports.
    • Based on ratings of Baa1/BBB+ (and AT&T's ratings are on negative watch at the credit rating firms), the loan pricing may open at L+112.5 basis points, with a 10 bp commitment fee, and upfront fees of 20-30 bps.
    • The company has BofA Merrill Lynch (NYSE:BAC) and JPMorgan Chase (NYSE:JPM) on board to help finance the deal, though a $30B bond to help fund the deal won't be rushed as doubts remain about whether it will be completed.
    • There's no reason to finance early given that ambiguity, a senior banker says. CreditSight analysts: "The merger may ultimately not be approved ... we feel the odds are around 50/50 at this stage."
    • Some three-quarters of the financing is expected to take place in the investment-grade market. And doing the deal now rather than waiting for more regulatory certainty could end up more expensive for AT&T.
    Oct. 28, 2016, 7:06 PM | 17 Comments
  • May 15, 2015, 2:42 PM
    • Any talks between Charter Communications (NASDAQ:CHTR) and Time Warner Cable (NYSE:TWC) about a merger may be up in the air, but bankers won't be the bottleneck, as they're ready to talk about $25B or even more to make it happen.
    • Following previous reports that Charter could go for $25B-$30B in debt, the cableco is talking with the same four bankers that committed $24B to Charter's early-2014 bid: Bank of America Merrill Lynch (NYSE:BAC), Credit Suisse (NYSE:CS), Deutsche Bank (NYSE:DB) and Goldman Sachs (NYSE:GS).
    • As one banker noted, "it should be quick to move to next steps, as the banks know the company pretty well," and said the package should end up as two-thirds bonds.
    • Aside from any regulatory issues, leverage seems to be foremost on the mind of dealmakers (and investors). Liberty Broadband's (NASDAQ:LBRDA) Greg Maffei has gone public with the notion that Liberty could raise capital through rights offerings or tap $700M in cash to help with funding while maintaining its 25% stake in Charter.
    • Other banks could join in too, which could make such a deal one of the largest junk bonds ever. Time Warner's on the edge of junk status, rated BBB/Baa2 by S&P and Moody's.
    May 15, 2015, 2:42 PM | 2 Comments
  • Sep. 1, 2014, 1:56 AM
    • America Movil (NYSE:AMX) has hired Bank of America (NYSE:BAC) to sell a significant amount of its wireline/mobile assets, in order to lower its market share by less than 50%.
    • Potential buyers include AT&T (NYSE:T) and SoftBank (OTCPK:SFTBY), a source tells Bloomberg.
    • The move is in response to new Mexican regulation designed to curb the company's dominance. America Movil announced the sale in July.
    Sep. 1, 2014, 1:56 AM | 1 Comment
  • Sep. 12, 2013, 2:42 AM
    • Verizon Communications (VZ) received orders for $100B of new bonds from over 1,000 investors as it sold $49B worth of debt in the largest corporate-bond offering in U.S. history.
    • Everyone seems to have emerged happy from this deal. Verizon received a huge chunk of the money it needs - and at relatively low rates - to pay for the $130B acquisition of Vodafone's 45% stake in Verizon Wireless; the banks involved made $265M in fees, with Barclays (BCS), JPMorgan (JPM), Bank of America (BAC) and Morgan Stanley (MS) each earning about $41M; and investors received a higher-yielding debt from a strong U.S. company.
    Sep. 12, 2013, 2:42 AM
  • Sep. 11, 2013, 3:27 AM
    • The Canadian and Ontario governments are selling 30M common shares in GM (GM) in a block trade to Bank of America (BAC) and RBC Capital Markets (RY) in a deal valued at around $1.1B.
    • The transaction is part of the governments' plan to sell the holdings in the automaker that they received as part of its bailout in 2009. They will be left with over 110M GM common shares and over 16.1M preferred shares.
    Sep. 11, 2013, 3:27 AM
  • Sep. 3, 2013, 4:25 AM
    • Verizon Communications (VZ) has reportedly started syndicating a $61B one-year bridge loan that will support the company's $130B acquisition of 45% of Verizon Wireless from Vodafone.
    • Verizon intends to help pay for the deal with $49B in bonds and $14B in other debt, but might need the bridge loan if it can't issue the bonds by the time the transaction closes, which is expected in Q1 2014. The $63B in funding will replace the bridge loan.
    • JP Morgan (JPM), Morgan Stanley (MS), Bank of America (BAC) and Barclays (BCS) are leading the financing and underwriting the deal.
    • Meanwhile, Verizon has no plans to enter the Canadian market. The carrier had been linked with a couple of struggling wireless start-ups. The news should be positive for Canada's three largest telecom operators - BCE (BCE), Rogers Communications (RCI) and Telus (TU) - whose shares tumbled in response to Verizon's expansion plans in Canada and then climbed on initial reports of the Vodafone deal.
    Sep. 3, 2013, 4:25 AM | 1 Comment
  • Aug. 25, 2013, 2:45 AM
    • BATS Global Markets (BATS) is reportedly in advanced negotiations to merge with Direct Edge Holdings in an all-stock deal that would create the second-largest exchange operator in the U.S. in terms of shares traded, putting it behind the NYSE (NYX) but ahead of Nasdaq (NDAQ).
    • BATS CEO Joseph Ratterman is expected to become the head of the new firm, while Direct Edge boss William O'Brien would become president. The companies plan to continue operating all four of their U.S. stock-exchange platforms after the merger.
    • Both firms are profitable, with BATS earning EBITDA of $101M in 2012.
    • Direct Edge's owners include KCG Holdings (KCG), Goldman Sachs (GS), Citadel and the International Securities Exchange. Those of BATS include KCG also, as well as Bank of America (BAC), Citigroup (C), Credit Suisse (CS), Deutsche Bank (DB), JPMorgan (JPM) and Morgan Stanley (MS).
    Aug. 25, 2013, 2:45 AM | 1 Comment
  • May 30, 2013, 3:06 AM
    Fiat (FIATY.PK) is reportedly in negotiations with major banks to borrow up to $10B that the Italian carmaker would use to acquire the 41.5% of Chrysler it doesn't own and refinance the two companies' debt at lower interest rates. The banks include Bank of America (BAC), Deutsche Bank (DB), Goldman Sachs (GS) (GS) and BNP Paribas (BNOBF.PK). Fiat's purchase of the holding is being held up by a legal dispute over the value of the stake. May 30, 2013, 3:06 AM | 3 Comments
  • Mar. 7, 2013, 5:37 AM

    The WSJ highlights how Bank of America (BAC) made a net profit of around $1.14M on trading options in Constellation Brands (STZ) in the summer, around the time the latter said it was acquiring Crown Imports from AB InBev (BUD) as part of the Belgian brewer's acquisition of full control of Modelo. BofA was an adviser on the Modelo deal and played a crucial role in the funding of both transactions. BofA says that the Chinese wall between different parts of the bank was maintained.

    Mar. 7, 2013, 5:37 AM | 5 Comments
  • Feb. 15, 2013, 7:38 AM

    "The Goldilocks era of post-crisis M&A has never been an if, but a when," says JPMorgan (JPM) vice-chair James Lee. "CEOs are declaring that day has come." Including the Berkshire buy, $40B in deals were announced yesterday and $140B this month. Transaction volume is up 27% Y/Y vs. an 8% slump for 2012. It should mean sweet profits for the newly lean banks.

    Feb. 15, 2013, 7:38 AM | 8 Comments
  • Feb. 1, 2013, 6:00 AM

    The deal to take Dell (DELL) private could reportedly be finalized over the weekend and announced on Monday. As already speculated, Michael Dell will gain majority control, while Silver Lake and Microsoft (MSFT) will become minority shareholders, although there's no word on the final price. Barclays (BCS), Bank of America (BAC), Credit Suisse (CS) and RBC Capital (RY) will provide $15B of debt financing.

    Feb. 1, 2013, 6:00 AM | 2 Comments
  • Dec. 12, 2012, 5:41 AM

    Bank of America (BAC) is reportedly close to selling its 49% stake in its Japanese joint venture with Mitsubishi UFJ Financial (MTU) to the latter company for ¥39B ($471M). The deal could be announced tomorrow. BofA unit Merrill Lynch Japan Securities will continue to provide mutual funds, derivatives and structured products to the JV even after the sale is completed.

    Dec. 12, 2012, 5:41 AM | 4 Comments
  • Oct. 31, 2012, 5:13 AM

    Phillips-Van Heusen (PVH) agrees to acquire Warnaco (WRC) for about $2.9B in cash and stock in a deal that "reunites the House of Calvin Klein." Based on PVH's last closing stock price, the deal is worth $68.43 a share, representing a 34% premium over Warnaco's close on Friday. PVH has also received commitments for $4.33B in financing from Barclays (BCS), BofA (BAC) and Citigroup (C), some of which PVH will use for the merger. (PR)

    Oct. 31, 2012, 5:13 AM