Winners & Losers From the Week That Was
Rohm & Haas shareholders: They easily rank as the biggest winners this week. Amid all the dismal news, Dow Chemical offered up this gift to Rohm shareholders–a $15.3 billion, all-cash deal for the specialty chemicals maker. Not only did that mark a 74% premium over where Rohm’s shares closed the day before, it was a 24% premium to the stock’s record high.
Carlos Brito: In the month-long fight for Anheuser-Busch, the InBev chief proved himself an expert deal maker. He played both the bad cop–moving to oust Anheuser’s board–and the good cop–adding $5 a share today to the already rich premium it had previously offered. All this to bring A-B to the negotiating table, and it worked. Now it seems as though A-B’s board will approve his latest offer.
BCE: Almost a year after the deal was announced, the battle over the largest buyout in history is settled. BCE, its private-equity buyers and the banks hammered out a final agreement that delays the closing of the deal until December but maintains the transaction’s original price struck one year ago. In the year of the busted LBO, that’s an impressive feat.
J.P. Morgan Chase: For much of the past year, the legendary bank has been the golden boy of Wall Street. (Remember that Bear Stearns acquisition.) But even a golden boy can stumble. J.P. Morgan lost out on a role advising Dow on the $18.8 billion purchase of Rohm & Haas. The investment bank’s absence from the advisory rolls follows its role in the nasty legal spat that erupted last year between Dow’s CEO and two former senior officials at the company who secretly explored a takeover of it. As Deal Journal wrote this week: “Whether or not there is a link between l’affair Dow and J.P. Morgan’s (non) role this deal, there is no disputing that the missed business will hurt.”
Dan Rooney: His father founded the Pittsburgh Steelers in 1933. Now ownership of the storied NFL franchise may fall out of his family’s control. Rooney’s plan to buy out part of the stakes held by his five co-owners, his four brothers and a cousin’s family, undervalued the team. Now his five co-owners have hired Goldman Sachs Group and are trying to shop the team. Stanley Druckenmiller, the billionaire chairman of Duquesne Capital Management, has confirmed interest.
Jean-Paul Votron: A year ago he helped grow the Belgian bank by joining with the Royal Bank of Scotland-led group to acquire ABN Amro. Today he joined the ranks of bank CEOs to lose their jobs during the credit crunch.
Every deal JP Morgan misses or every 1% drop in Lehman’s stock price makes news here. And every deal Goldman wins also makes news here. Common Deal Blog. See the market shares. Not quite 1-3% difference between the players. So it cannot be that one set are so bad and another so good
Deal Journal is an up-to-the-minute take on deals and deal-makers, updated frequently with exclusive running commentary, news flashes, profiles, data and more. The Wall Street Journal's Heidi N. Moore and Dennis Berman are the lead writers, with contributions from other Journal reporters. Send news items, comments and questions to