Last Friday Warren Buffett said he was anxious to pull the trigger on another large deal -- having only recently completed the Berkshire Hathaway (BRK.A and BRK.B) acquisition of the Burlington Northern Santa Fe Railroad. Since then, prognosticators far and wide have been making suggestions about his next possible moves.

Considering I wrote about the railroads the day before the BNSF announcement, I thought I would share a few ideas, old and new.

Continue reading Serious Money: What Should Warren Buffett Do Next?

Serious Money: What Should Warren Buffett Do Next? originally appeared on BloggingStocks on Wed, 02 Mar 2011 09:20:00 EST. Please see our terms for use of feeds.

Continue reading Kraft Sells Pizza So It Can Buy Chocolate

Kraft Sells Pizza So It Can Buy Chocolate originally appeared on BloggingStocks on Tue, 05 Jan 2010 09:00:00 EST. Please see our terms for use of feeds.

Continue reading Serious Money: Questions as Buffett's money & mouth converge on BNI

Serious Money: Questions as Buffett's money & mouth converge on BNI originally appeared on BloggingStocks on Wed, 04 Nov 2009 14:40:00 EST. Please see our terms for use of feeds.

Some people join wine-of-the-month clubs. There are plenty of other programs out there, too, where your credit card is hit every month, and your purchase is sent to you directly. If only such programs were available for Google (NASDAQ: GOOG). . . .

The company's CEO, Eric Schmidt, said Wednesday that Google plans to pick up a small company a month as a way to get its acquisition head back in the game. With the worst of the recession behind us, Google believes, this is a great way to get moving.

Continue reading Google's hungry, looking for a new company every month

Google's hungry, looking for a new company every month originally appeared on BloggingStocks on Thu, 24 Sep 2009 09:30:00 EST. Please see our terms for use of feeds.

Continue reading Will Kraft dump assets to sweeten the Cadbury bid?

Will Kraft dump assets to sweeten the Cadbury bid? originally appeared on BloggingStocks on Tue, 15 Sep 2009 16:40:00 EST. Please see our terms for use of feeds.

With litigation, it seems that the winners are usually the attorneys. Perhaps this is one of the key reasons that Dow Chemical (NYSE: DOW) and Rohm and Haas Co (NYSE: ROH) agreed to come back to the table and find a way to strike a merger. If not, both parties were on a destructive path to an unpredictable trial.

Interestingly enough, the new terms of the deal reinstate the $78 purchase price, but, of course, there are some wrinkles. The Haas Family Trust and Paulson & Co. will get as much as $3 billion preferred stock in Dow. This will be a much-needed infusion of capital.

Continue reading Dow Chemical, Rohm & Haas make nice in a $15 billion deal

Dow Chemical, Rohm & Haas make nice in a $15 billion deal originally appeared on BloggingStocks on Tue, 10 Mar 2009 07:00:00 EST. Please see our terms for use of feeds.

According to a report from Thomson Reuters, the global M&A market reached $4.2 billion in 2007. No doubt, this represented a lucrative source of fees for many financial institutions.

But last year, things dropped off significantly, with deal volume at $2.9 billion.

So, is dealmaking going to continue its deep descent in 2009? Well, BusinessWeek, writes this may not necessarily be the case.

Continue reading Is M&A going to rev up?

Is M&A going to rev up? originally appeared on BloggingStocks on Fri, 20 Feb 2009 11:00:00 EST. Please see our terms for use of feeds.

Sirius XM (SIRI) reaches 11th-hour deal originally appeared on BloggingStocks on Tue, 17 Feb 2009 09:45:00 EST. Please see our terms for use of feeds.

Genentech is among the leading biotech companies in the world. It is engaged in the discovery, development, manufacturing and commercialization of pharmaceutical products intended for treatment of previously untreatable illnesses.

In 1990, Roche acquired a 56% stake in the company. Since that time, the relationship between the two companies has been a model for similarly structured combinations.

Roche's offer of $89 per share for DNA was characterized by DNA as significantly undervaluing the company.

But this was hardly a "hit the road, Jack" response. DNA's board of directors has been encouraging the two sides to continue discussions, and recent comments suggest that the deal could come together soon.

Continue reading Don't sell your Genentech (DNA) stock just yet

Don't sell your Genentech (DNA) stock just yet originally appeared on BloggingStocks on Wed, 14 Jan 2009 11:05:00 EST. Please see our terms for use of feeds.

With the massive decline in equities, it would seem that M&A would be robust - as solid buyers find compelling deals. But, if you look at the history of M&A, recessionary environments tend to result in lower activity.

And yes, according to analysis from Bernstein Research, it looks like 2009 will remain a slow time for M&A. If anything, there won't be a comeback until 2010.

No doubt, this is bad news for deal shops like Goldman Sachs (NYSE: GS) and Greenhill (NYSE: GHL). Then again, the investment banking industry is undergoing lots of change right now (as top-tier firms becoming bank holding companies).

Essentially, Bernstein forecasts that M&A activity will be off by a quarter next year. If this happens, then the fall-off will be 45% from 2007 to 2010.

Sounds bad, huh? Well, this is actually normal stuff in the feast-or-famine M&A game.

Why? For the most part, companies do not want to take major risks during slow economic times. After all, how long will the recession last? If it continues for several more years, then making a commitment on a major deal could be harmful.

However, Bernstein still sees some positives. For example, counter-cyclical industries, such as healthcare, should still see strength in M&A. Oh, and expect distressed deals (where sellers have no choice but to sell out) as well as activity in the financial sector (as the federal government pumps up the sector with fresh cash).

Tom Taulli is the author of various books, including The Complete M&A Handbook and The Streetsmart Guide to Short Selling: Techniques the Pros Use to Profit in Any Market. He is also the founder of BizEquity, a valuation website.

M&A looking grim for 2009 originally appeared on BloggingStocks on Tue, 09 Dec 2008 10:25:00 EST. Please see our terms for use of feeds.

Lately it's been very difficult for investors to get their bearings, but I can tell you that the winners in this game will be companies with little or no debt. Forget what stock values are doing now and focus on the future. You can take it to the bank that stocks gaining in value will have started from a very solid balance sheet foundation.

That said, I want to talk about Yahoo (NASDAQ: YHOO).

Yesterday the company was in the news again with reports that former AOL chief Jon Miller is seeking capital to purchase YHOO outright for a price that is reported to be in the $20 range.

YHOO shares rocketed higher on the news, immediately jumping up by nearly $1 per share, or approximately 10%.

My initial reaction, as you might expect, was skeptical. Jump on this news as a chance to dump shares. Management at YHOO, with or without Chief Yahoo Jerry Yang, has destroyed shareholder value so much that it would be hard to believe that anyone would pay a premium for the stock.

How could it be that a lone ranger from the failed AOL model be considered a serious alternative to YHOO going it alone? It makes no sense until you take a closer look at YHOO fundamentals. There the story starts to get a little more interesting.

Continue reading Is Yahoo a screaming bargain without Jerry Yang?

Is Yahoo a screaming bargain without Jerry Yang? originally appeared on BloggingStocks on Wed, 03 Dec 2008 14:20:00 EST. Please see our terms for use of feeds.

Sheldon Liber is the CEO of a small private investment company and the principal for design and research at an architecture & planning firm. He writes the columns Chasing Value and Serious Money. Disclosure: I do not own shares of MSFT or YHOO.

MSFT/YHOO: Jerry Yang, are you kidding? originally appeared on BloggingStocks on Thu, 06 Nov 2008 14:54:00 EST. Please see our terms for use of feeds.

DineEquity loses CFO -- Applebee's acquisition haunts company originally appeared on BloggingStocks on Tue, 09 Sep 2008 13:00:00 EST. Please see our terms for use of feeds.

Continue reading Cramer on BloggingStocks: What an awful moment

Cramer on BloggingStocks: What an awful moment originally appeared on BloggingStocks on Fri, 05 Sep 2008 08:45:00 EST. Please see our terms for use of feeds.

Tom Taulli is the author of various books, including The Complete M&A Handbook and The Edgar Online Guide to Decoding Financial Statements. He also operates MergerBook.com.

Infosys flexes its M&A muscles originally appeared on BloggingStocks on Tue, 26 Aug 2008 10:49:00 EST. Please see our terms for use of feeds.

For financial markets, August is always a slow time as Wall Streeters head for their vacations. But this year, there was more than just seasonality. Simply put, it was a very tough month for M&A operators.

In fact, according to Reuters, August was the worst month since 1992.

It's been about a year since the credit crunch started, and it looks like things aren't getting better. If anything, it's a good bet we'll continue to see volatility and layoffs in the financial services space.

In August, the M&A volume in the U.S. came to about $28.5 billion, which is 53% off from the same period a year ago.

Ironically, while private equity funds have a huge amount of capital to put to work, there is not much bank financing. As a result, most of the private equity deals have been fairly small (below $2 billion or so).

Also, some of the recent mega deals - such as InBev's $45 billion acquisition for Anheuser-Busch Cos. (NASDAQ: BUD) - are crowding out the financing market.

In other words, investment bankers may need to wait until next year for things to warm up again.

Tom Taulli is the author of various books, including The Complete M&A Handbook and The Edgar Online Guide to Decoding Financial Statements. He also operates MergerBook.com.

August: A cruel month for M&A originally appeared on BloggingStocks on Mon, 25 Aug 2008 10:01:00 EST. Please see our terms for use of feeds.

Sheldon Liber is the CEO of a small private investment company and the principal for design and research at an architecture & planning firm. He writes the columns Chasing Value and Serious Money. Disclosure: I own shares of BRK.B.

If the dollar was stronger would BUD buy InBev? originally appeared on BloggingStocks on Mon, 14 Jul 2008 15:32:00 EST. Please see our terms for use of feeds.

Word has hit several media outlets that Microsoft Corp. (NASDAQ: MSFT) will drop the price of its bid for Yahoo! Inc. (NASDAQ: YHOO).

According to Reuters, "Microsoft Corp. is evaluating its offer for Yahoo Inc. in light of worsening market conditions." The odds are high that someone at Microsoft leaked the news. Yahoo! shares are down almost 5% after hours.

Microsoft would like nothing more than to have large shareholders in Yahoo! calling the board and management begging them to take the deal of threatening to sue them if they don't.

Microsoft knows Yahoo! has no other options, or they would be apparent by now.

Douglas A. McIntyre is an editor at 247walls.com.

Microsoft may be lowering Yahoo! offer originally appeared on BloggingStocks on Fri, 04 Apr 2008 17:20:00 EST. Please see our terms for use of feeds.

It's a scary thing for investment bankers: the "credit crunch." It has essentially depleted the industry, as dealmaking has shrunk significantly.

In fact, according to Bloomberg, there was a 35% drop in M&A fees for Q1.

True, the M&A business is known for its "feast-famine" cycles, but this time it looks like things could be particularly bleak - and perhaps long lasting. Just look at the break-down of the $19.5 billion buyout for Clear Channel Communications (NYSE: CCU).

Basically, financial institutions are in the process of repairing their balance sheets, and as a result, don't have the firepower to finance deals -- especially large ones. In fact, these firms need to find ways to deal with more than $200 billion in LBO loans.

There is also likely to be a slowdown in strategic acquisitions. That is, as the US economy slows down - which may impinge the global economy - where buyers are likely to get jittery. Why take big risks in such an environment?

Now, there are offsetting factors such as the emergence of mega sovereign wealth funds. However, they may get some political pushback.

In other words, don't expect a comeback anytime soon.

Tom Taulli is the author of various books, including The Complete M&A Handbook and The Edgar Online Guide to Decoding Financial Statements. He also operates DealProfiles.com.

Dude, where's my M&A fees? originally appeared on BloggingStocks on Mon, 31 Mar 2008 11:11:00 EST. Please see our terms for use of feeds.

It looks like we have now entered the when, not if, stage of Microsoft Corp. (NASDAQ: MSFT) acquiring Yahoo Inc. (NASDAQ: YHOO) and we will soon be saying good-bye to the Yahoo we know for something else.

You will find this splattered across the web today: Microsoft presents its vision of a combined company to Yahoo executives in what appears to be the first meeting since Microsoft made its unsolicited offer for Yahoo, reports The Wall Street Journal [subscription required].

On January 31, 2008, a buyout offer of $44.6 billion was made by the software giant to combine forces with Yahoo!, against the supposedly next evil empire, Google Inc. (NASDAQ: GOOG).

Google has stolen Yahoo's thunder, and try as it might, Yahoo has not been able to get it back. Its stock has stagnated. Even as GOOG shareholders have watched their stock plummet some 40% this year, Google is still the current web star when it comes to search and advertising revenue. Microsoft hopes to steal this mantle by combining MSN with Yahoo.

Continue reading Bye bye Yahoo!, it was nice knowing you

Bye bye Yahoo!, it was nice knowing you originally appeared on BloggingStocks on Fri, 14 Mar 2008 10:36:00 EST. Please see our terms for use of feeds.