the plunge in the Sterling may indeed help reshuffling the local M&A cards !
Why revisiting the Forex / M&A relationship now ?
Because :
• The amplifying selloff in the Pound is having particularly subtle effects :
- it has sent the Footsie Index to an all-time high on 10 October
- but it is also directly disrupting corporate earnings trends ,creating a sharp contrast between Forex winners and losers
• The camp of these losers currently regroups companies :
- which in recent month have often been mentioned as potential bid targets
the “usual suspects”
- whose theoretical acquisition price has been substantially deflated by the depression of the Sterling
the case of Aveva has just been reviewed in this recent Focus :
SPECIAL SITUATION FOCUS: SCHNEIDER for AVEVA ? Things come in threes, as the saying goes ..
• The fresh example of the AB Inbev – SABMiller transaction demonstrates that the Forex factor may have a decisive influence on offer outcomes
the surge in the Pound-denominated price of ABI inflated the demand for ABI certificates ,which consequently deflated the distribution to Altria and Santo Domingo Family
4 lists of “usual suspects”
• The note combines Exane BNPP’s updated M&A Targets list with those of companies :
- facing short-term expiries of sensitive bidding restrictions
- mentioned ,more or less frequently ,in the specialized Bloomberg columns
• Within these lists ,one may for instance :
- notice that the market is paying a rising attention to the Imagination and Sky cases
- remind that ICE will become soon re-entitled to potentially approach the LSE
- underscore the local cheapness of the Aveva
- point out that ICAP has just replaced Pennon in our in-house UK High Conviction list
both are members of our in-house M&A Targets list