Posted by: donmihaihai | October 30, 2010

Who is not doing M&A.

This few weeks must be M&A weeks. Deals are running around. Investment banks are smiling. Bloods is flowing faster. Analysts and reporters start a new article before the inks on old one dry. Sorry no one write with ink anymore.

Big deals like

1) EZRA big thrust into subsea
2) K-REIT followed by Suntec REIT acquisition of 1/3 interests each in MBFC phase 1
3) SGX acqusition of ASX

Now Peter Lim join in for the fun too. Well, maybe more will be coming.

For me the most interesting of all is actually the acquisition of MBFC which also linked to the acquisition of One Raffle Quay some years back. Of everything I know and I can see, the one that not doing M&A in these two world class office properties is doing very well. Despite that no one is writting about them right now, and if there is one party to be bullish about then it won’t be K-REIT, Suntec REIT or ARA. Too bad I am not vested.

The next interesting acquisition will be SGX buying of ASX. Assuming that this deal does goes through, then the only question left is price. When a monopolist buy another monopolist and when both can earn high return on equity, the world of synergy is not that important anymore. Stop all the bullshits to satisfy all the excitment. I am not sure why SGX is such a better operator of exchange as compare to other. But if ASX can reach anywhere near SGX, assuming all those numbers throw out by reporters are right, then many peoples may in for a surprise. Spoiler – price.

Telling myself. Stay clear of all excitment and company that will screw shareholders.

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