Merger Breakups Increase to Record -- WSJ
May 09 2016 - 3:02AM
Dow Jones News
By Stephen Grocer
For deal makers, 2016 is set to be another record year, just not
the type of record anyone wants.
Last week Halliburton Co. and Baker Hughes Inc. called off their
nearly $35 billion deal after facing resistance from regulators.
The transaction's failure brought the value of withdrawn U.S. deals
to $378 billion. That is not only the highest level year to date
for U.S. withdrawn deals, it is the highest total for a full year,
according to Dealogic.
World-wide buyers have canceled $489 billion of deals so far
this year, according to Dealogic, the second highest year-to-date
level since the $505 billion in 2007.
The failure of the Halliburton-Baker Hughes deal comes after
Pfizer Inc. called off its $150 billion tie-up with Allergan PLC
after the Treasury introduced new rules further curbing inversions.
Other deals were abandoned for more traditional reasons: Honeywell
International Inc. and Canadian Pacific Railway Ltd. dropped
unsolicited bids to buy United Technologies Corp. and Norfolk
Southern Corp., while China's Anbang Insurance Group Co. walked
away from a $14 billion proposal to buy Starwood Hotels &
Resorts Worldwide Inc.
The stream of withdrawn deals is likely to continue. There are a
number of large deals that face hurdles to closing. Just last week
Energy Transfer Equity LP Chief Executive Kelcy Warren told
investors his company's proposed $32 billion takeover of Williams
Cos. can't go forward as is.
There are also $114 billion in unsolicited or hostile bids that
are still pending, according to Dealogic.
--
Stephen Grocer
(END) Dow Jones Newswires
May 09, 2016 02:47 ET (06:47 GMT)
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