Deutsche Bank's July trends
05 August 2014 London
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Convertible bond issuance and M&A volume picked substantially in July, according to recent research from Deutsche Bank.
The increase has been seen particularly in Europe, with “some interesting deals in Asia as well”.
Highlights included Dufry AG agreeing to purchase travel retailer Nuance Group for $1.7 billion, necessitating a capital raise.
European drugmaker Shire Plc rejected an approach from US pharmaceutical company AbbVie but the deal appears to remain in play, according to Deutsche Bank, as AbbVie considers raising its bid for a fourth time.
Also in July, German travel company Tui announced a proposed all-share merger with UK subsidiary Tui Travel which prompted some pre-positioning in the securities lending market.
Kakoa Corp, South Korea’s largest mobile messaging company, acquired Daum Communications Corp, which lead to a stock rally of more than 40 percent.
European convertible bond issuance was very active in July, with many companies tapping capital markets for equity. Det Norske Oljeselskap raised $500 million to finance the acquisition of Marathon Oil Corp’s Norwegian oil-and-gas business.
Volkswagen placed €2 billion in preference shares to finance its purchase of Swedish truck maker Scania as part of a broader effort to buy full control of the auto company.
Capital-raising was also a key theme in Asia in July. New World Development’s plan to buy-out New World China Land failed to receive a majority of votes as 66 percent of independent shareholders rejected the privatisation proposal.
The increase has been seen particularly in Europe, with “some interesting deals in Asia as well”.
Highlights included Dufry AG agreeing to purchase travel retailer Nuance Group for $1.7 billion, necessitating a capital raise.
European drugmaker Shire Plc rejected an approach from US pharmaceutical company AbbVie but the deal appears to remain in play, according to Deutsche Bank, as AbbVie considers raising its bid for a fourth time.
Also in July, German travel company Tui announced a proposed all-share merger with UK subsidiary Tui Travel which prompted some pre-positioning in the securities lending market.
Kakoa Corp, South Korea’s largest mobile messaging company, acquired Daum Communications Corp, which lead to a stock rally of more than 40 percent.
European convertible bond issuance was very active in July, with many companies tapping capital markets for equity. Det Norske Oljeselskap raised $500 million to finance the acquisition of Marathon Oil Corp’s Norwegian oil-and-gas business.
Volkswagen placed €2 billion in preference shares to finance its purchase of Swedish truck maker Scania as part of a broader effort to buy full control of the auto company.
Capital-raising was also a key theme in Asia in July. New World Development’s plan to buy-out New World China Land failed to receive a majority of votes as 66 percent of independent shareholders rejected the privatisation proposal.
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