: " Buy out price of NN ". I think it is worth considering the following:
In 4/96 CSCO paid 4 bill for Stratacom and in 97 Ascend paid 3.7 bill for Cascade Comm, both of whose ATMs were significantly inferior/smaller to NNs and had nowhere near the stable of smaller cos that NN has. In those days few were envisioning the current telco/internet explosion.
The day after CSCO announced the buy of Stratacom, Stratacom shares went up 9 points to 47.
Thus NN should definitely command a premium.NN has a market cap of 4bill at current prices $26/sh. We sholud be getting a minimum of ~$39 and if Terrence makes a good deal, $45/ share. ERICY has a market cap of 57 bill.I am sure they can come up with 7-8 bill to pay for NN.
After the sale, I will join zsbyslaw in Europe. ::-))
TA
---------------------------------------------------------
7/29/99 - BROADVIEW: European technology companies launch unprecedented acquisition drive in the US
JUL 29, 1999, M2 Communications - London -- European IT, communications and media groups launched an aggressive and unprecedented M&A "blitz" in the U.S. during
the first half of 1999, to
compete for global leadership in their chosen markets, according to Broadview International's Technology M&A Report: First Half 1999.
European companies announced 94 deals in the United States worth U.S.$72.8 billion in the first half of 1999. "This reverses the traditional flow of U.S. buyers
coming into Europe," said Victor Basta, managing director and European head of Broadview, the global investment bank focused on the IT, communications and
media industries. "Across all sectors, the international, industry-defining acquisition is no longer the preserve of the Americans."
For the first time in at least a decade, more than half of the 10 largest technology deals worldwide were done by European buyers. In the first half of 1999, seven
major
European corporations have led the way into the U.S.: Siemens (four transactions), Alcatel (three), Ericsson (three), Philips (two), Nokia (two), GEC (two) and
Vodafone (one).
Some of the hunger for stateside deals has been driven by mature technology groups seeking to re-invent themselves by acquiring new technologies. "Many
European majors are facing unprecedented competition," said Basta. "They must roll out new products at a faster rate than they can develop them internally. They
have to look for younger, nimbler partners." British companies were responsible for the lions' share of U.S. acquisitions, accounting for almost 50% of European
purchases. France (17%) and Germany (11%) also made a significant number of U.S. acquisitions. In the first half of 1999, European technology companies also
made 232 divestitures, as part of a concerted effort to restructure and reposition themselves as global segment leaders. "We will see a wave of restructuring in
Europe over the next few years, similar to what has already happened in the U.S.," commented Basta.
Within Europe, M&A activity rose sharply over the same period in 1998. The number of technology deals in Europe rose from 867 to 1,095, and deal value increased
338%, from U.S.$44.2 billion to U.S.$193.4 billion, much of it driven by the digital media, IT services and telecommunications sectors. Worldwide, the total value of
technology deals doubled for the second year in a row, with 2,900 deals worth U.S.$544.8 billion, up from 2,467 deals worth U.S.$283.3 billion in the first half of
1998.
"Internet Fever" Spreading from the US to Europe
Internet fever has gripped the entire M&A world, with 447 digital media deals worldwide worth U.S.$37.5 billion in the first half of 1999 - up from 150 deals worth
U.S.$4.9 billion in the first half of 1998. "In the U.S., the gap between Internet 'winners' and 'losers' is starting to widen," said Basta. " Amongst leading Web sites,
the race to attract and retain users is intense. Acquisitions that give the buyer a new product or service that expands the user base are highly prized."
In Europe, the boom in digital media deals is just beginning, with the number of deals almost doubling year on year from 38 to 73, and total deal value reaching
U.S.$928 million, up from US$346 million in the first half of 1998. "We should see over 200 Internet M&A deals in Europe in the next year," predicted Basta.
However, Europe's Internet landscape is evolving differently from the U.S., with mature media and telecommunications groups dominating. Major groups, such as
Vivendi, are building substantial content and extending their consumer reach through deals like the recent U.S.$1.25 billion investment in BSkyB. Basta added:
"Unlike the U.S., in Europe the top 10 Web-sites in most countries are dominated by traditional media companies. European media companies are determined not to
cede the Internet to young Web-based companies, as has happened in the U.S." Retailing groups like Dixons, Darty and Kingfisher have established a foothold on
the Internet, many of them amongst more than 100 companies that have introduced free Internet access services since Freeserve's launch in September 1998.
"European retailers have a leadership opportunity no longer available to their U.S. counterparts because they are ahead of the curve here," commented Basta.
The rise in digital media deals is coinciding with a drop-off in print media deals, both globally and in Europe. European print media deals almost halved in value - from
116 worth U.S.$10.5 billion in the first half of 1998 to 91 deals worth U.S.$5.5 billion in the first half of 1999.
Commenting on the outlook for European digital media groups in the near future, Basta said: "The Internet M&A fire in Europe has only just been kindled. To
compete effectively, European media groups will need to partner with or acquire the best available Internet assets during the next 12 months."
Customer-Focused Technologies Catalyse Technology M&A
Pressure to unlock the spending power of on-line customers has led to a growing market for companies providing a whole range of Web-based services aimed at
getting closer to the customer. The number of Web services deals more than doubled, from 20 worth U.S.$96 million in the first half of 1998, to 41 deals worth
U.S.$248 million in the first half of 1999. "European companies see the Web as the new gateway for acquiring and retaining customers," said Basta. "As more
European companies invest in communicating with customers via the Internet, we will see accelerated M&A levels in this area."
At the same time, businesses are re-orienting themselves from an emphasis on big back-office systems such as SAP and Baan to front-office, customer-focused
software. The first half of 1999 witnessed a continued rise in acquisitions of software product companies, including customer relationship management software
companies. Deals in this segment rose from 81 deals worth U.S.$878 million in the first half of 1998 to 131 deals worth U.S.$2.6 billion in the first half of 1999. "The
whole concept of software is being redefined to encompass the potential of the Internet. Acquiring customers and retaining direct access to them is now the key to
success in an on-line world," commented Basta.
Broadview is a leading global investment bank focused on the IT, communications and media industries worldwide. Through a network of over 225 employees
operating across the United States, Europe and Asia, the firm assists clients with mergers and acquisitions, restructurings and private financings. The firm is also a
private equity investor in these industries in the U.S. and Europe.
-0-
(C)1994-99 M2 COMMUNICATIONS LTDCONTACT: Hamish Thompson
Tel: +44 (0)171 290 8500
e-mail: hthompson@broadview.com
Sarah Roberts
Tel: +44 (0)171 600 1392
e-mail: sarahroberts@gcifocus.co.uk
*M2 COMMUNICATIONS DISCLAIMS ALL LIABILITY FOR
INFORMATION PROVIDED WITHIN M2 PRESSWIRE. DATA
SUPPLIED BY NAMED PARTY/PARTIES.*
Forbes article on NN takeover by Ericsson for over $30/share :
forbes.com
I hope we get minimum upper 30's.
Good luck to all !!
D.Kan
|
