Pfizer-Wyeth $68 billion deal Watch

uthinkilltellu
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#41
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(Original post by Breitling)
I'd say JPM will. They took more than double that of MS and they're the bank that is more suceptable to the worsening general economic climate, given the size of their loan book. They just won't want to pay it back until we see some signs of recovery.

Will we be seeing any jumbo consolidation deals in the European market besides Roche/Genentech? I'd guess at another Sanofi-Aventis offer for Bristol-Myers before 2009 ends.
The best scenario for me would be a glut of activity in the summer with my team being involved in the fair chunk of it. What's happening right now despite being very interesting from a future-IBD-intern perspective, doesn't really set a presedent for the future deals because I'd imagine that the healthcare situation is different from the other indutries.

The potential Sanofi-Aventis offer for Bristol-Myers, from what I've briefly read, will mostly depend on the outcome of the Plavix litigation. I'd imagine that there will be more big healthcare deals along the way. But in any other industry, who knows? A purely subbjective guess from me would say that industrials will be next to see some consolidation. But that's just an unsubstantiated guess.

What affect do you think will the Obama lifting Bush's restrictions on stem cell research have on IBD activity?

If you don't mind me asking, what team will you be joining in July? Or will they give you a list closer to the date?
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Sigma
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Merck Takeover Fuels Speculation of Drugmaker Mergers

http://www.bloomberg.com/apps/news?p...DMY&refer=home
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Breitling
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#43
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(Original post by uthinkilltellu)
The best scenario for me would be a glut of activity in the summer with my team being involved in the fair chunk of it. What's happening right now despite being very interesting from a future-IBD-intern perspective, doesn't really set a presedent for the future deals because I'd imagine that the healthcare situation is different from the other indutries.

The potential Sanofi-Aventis offer for Bristol-Myers, from what I've briefly read, will mostly depend on the outcome of the Plavix litigation. I'd imagine that there will be more big healthcare deals along the way. But in any other industry, who knows? A purely subbjective guess from me would say that industrials will be next to see some consolidation. But that's just an unsubstantiated guess.

What affect do you think will the Obama lifting Bush's restrictions on stem cell research have on IBD activity?

If you don't mind me asking, what team will you be joining in July? Or will they give you a list closer to the date?
If I had to put my money on anything, I'd put it on one or two big mergers in mining or retail. Retail is a strange one, the sector is continuing to exhibit the symptoms allied with a need for consolidation but there are very few retailers with the balance sheets to take on larger acquisitions. Tesco has the cash but the competition commission won't allow it to do much at all.

I don't know what team I'm going to be joining yet. Probably most interested in joining the healthcare, consumer or mining sector teams rather than the M&A group, which I did my internship in, despite the latter being more popular and supposedly having the better PE exit opps etc.
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love2learn
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So there are now three mega mergers on the table, representing significant consolidation. All citing similar reasons of needing to consolidate to strengthen position to weather downturn which you may or may not buy into. I guess one doing it mean the others needed to start looking too.

Anyway, this contrasts with earlier market thinking that currently large mergers within this sector represented bad value and were unnecessary and instead companies should focus on buying up smaller and midcap pharma and biotech companies as they would give the extra diversification / product development benefits without the difficulties / costliness of integration and many are thought to be already struggling with more to follow, and so better value at that end of the market.

Like Breitling, I'd see retail mergers likely, in fact I was wondering whether what were Safeway, Morrison, Co Op and Somerfield could merge. At the moment despite the most recent tie ups they're still too small to compete on a level with Tesco / Asda / Sainsburys. I wonder what Budgens are up too aswell actually.

Not sure about mining, but perhaps energy, natural gas, something like that.
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Inter-Company
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(Original post by love2learn)
Not sure about mining, but perhaps energy, natural gas, something like that.
Energy (and perhaps also Tech) will be the busiest sector(s) for M&A this year, Period. NB: Busy does not neccesairly equate to the highest value, but rather volume.

The premiums and thus valuations on some recent mining acquisitions are ridiculously low (with more room for consolidation given the strong correlation with commodities prices estimated over the year).
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