Thumbs(up)son!!!

In a deal that would create the world’s largest financial news and data firm; Canadian Publisher ‘Thomson’ has agreed to buy the news provider Reuters for $17.2 billion. Reuters Founders share company (which controls a special share in Reuters) and Woodbridge (The Thomson family-holding company, which controls 70% of Thomson) has irrevocably decided to vote in favour of the transaction. However, the combination of two companies will adopt a dual listed company structure. Though the companies will remain separate legal entities, but they will be managed as a single economic enterprise. Importantly, the dual listed company structure will allow the combined businesses to have listings in the US, UK and Canada and will also allow all the shareholders to actively participate in the further value-creation process.

“The combinations will create exceptional global information company, guided by Reuter Trust Principles,” said Tom Glocer, Chief Executive of Reuter on the merger of Thomson and Reuter. Tom Glocer will be heading the combined entity called Thomson-Reuter Company, while the President and CEO of Thomson, Richard Harrington, will retire. As a result of this deal, the two companies are expecting savings worth $500 million by the end of the third year.

United we will stand!
United Health Group has decided to acquire all the outstanding shares of Sierra healthcare services – a company based in Las Vegas – for a total equity value of $2.6 billion. The transaction, which has been approved by the Board of Directors of both the companies, is expected to close by the end of 2007. Sierra is a leading provider of health benefits and services in Nevada region of the US, and the combined business in the Nevada region will continue under the leadership of Sierra’s Chairman and CEO, Anthony M. Marlon, and his management team. United- Health Group feels that the combined business will create great opportunities in a number of areas.

What a lingo-friendly mailing?
Windows Live Hotmail has been launched worldwide by Microsoft. It is a new version of Microsoft’s existing e-mail service that is available in 36 languages. Inputs from more than 20 million beta testers have been incorporated in the new service. Subscribers of the latest Live Hotmail would be able to access their e-mail for free via Microsoft Office Outlook 2003 or Office Outlook 2007, using the new Microsoft Office Outlook Connector Beta. The evolved version would also deliver safer, more powerful and productive e-mail experience, and can be accessed not only via internet, but on a mobile phone as well.

Spiderman creates history; yet again!
Marking another glorious page in the history of Hollywood, Spiderman-3 has beaten all the previous records and captured the crown of ‘widest opening’, as it was launched in 4,252 theatres. It is also the highest first-day grosser in the North America. The previous record of The Pirates of the Caribbean: Dead Man’s Chest ($55.8 million) was outdone by Spiderman-3 as it amounted to a total collection worth $59.3 million. And yes, that’s not all, the aficionados have some more to look forward to from the kitty of Sony Pictures Entertainment, as already in plans is Spiderman-4.

Murdoch’s knockout punch
The Bancroft family and the directors of Dow Jones & Co. Inc. were accused of its failure to evaluate News Corp.’s bid for the company, by a lawsuit filed in the New York State court. Earlier in the week, Rupert Murdoch’s News Corp. made a $5 billion bid for the publisher of The Wall Street Journal. The board decided not to take any action on Murdoch’s $60 per share offer, soon after a majority of the Bancroft family, with a 64.2% control of Dow Jones voting stock indicated they would refuse the deal. A shareholder, in consequence to this, filed a suit accusing that the Bancroft family and company directors exercised poor business judgment and discarded Murdoch’s offer ‘in bad faith.’

No sighs in the ‘signing deal’!
Comcast Corporation and Yahoo have agreed upon entering into a multi-year partnership, in which Yahoo will supply web advertising to Comcast. The entire transaction covers online display and video advertising that will be featured on Comcast.net site, having 15 million monthly visitors, who jointly view 80 million videos every month. Yahoo’s advertising services will be part of a redesigned Comcast.net, planned sometime late in 2007. This step by Yahoo is a result of positioning itself as a barricade against its fierce competitor, Google Inc.’s encroachment. This deal will help Yahoo expand its online advertising services to cover NBC Universal properties companywide in the coming months, including NBC.com. Will this media friendly strategy help Yahoo at all, is a question that has been left unanswered.

The three musketeers...
Dell is the latest to join the Microsoft -Novell pact, that allows open source Linux soft ware to work with Windows. Announced in November, the Microsoft -Novell collaboration entails Microsoft offering its corporate customers a chance to license its Windows operating system, as part of a package that includes maintenance and support for Novell’s Suse Linux platform. Dell becomes the first major systems provider to do so. As per the agreement, Dell would buy Suse Linux Enterprise Server certificates. Novell’s operating system is Linux. The systems provider would also start a services and marketing strategy to entice existing Linux, but non-Dell Linux customers towards Suse Linux.

Delta is grounded to reality!
Delta Air Lines Inc. came out of bankruptcy, aft er being in a rigorous and efficient 19- month, $3 billion restructuring process, during which the carrier let down a hostile takeover, cut down its costs and jobs, and abolished some unprofitable routes. This third-largest airline of the United States also added some 60 international routes in its portfolio to counteract atrociously low-cost competition in the US market. The emergence from bankruptcy is not the end of a journey; instead, it is the beginning of a new and prosperous era at Delta. Along with peer airline companies like United and Northwest, the airline company was facing the heat of financial crises after the 9/11 attacks. The debacle lead to a lower propensity to fly among the American travellers, due to fears of a similar eventuality. “Many challenges are ahead, and thanks to our successful restructuring, we are stronger and better positioned to meet them,” Delta Chief Executive Officer, Gerald Grinstein boasted.

Boerse’s buy out operation
An amount of $2.8 billion will soon be involved to buy out US options market, International Securities Exchange (ISE), by German exchange operator Deutsche Boerse, which will help create the No. 1 transatlantic derivatives marketplace. Deutsche Boerse has been keen to expand its reach beyond Germany, particularly in derivatives. It stepped up its search for scale after being denied last year by pan-European bourse, Euro next, which later involved itself in a merger with the New York Stock Exchange. It’s also intimated that ISE will operate as a separate entity under the US regulation and under the ISE brand.

Cemex wins it ‘Perpetual’y
Mexico-based cement major Cemex has finally bowled over the biggest shareholder of Rinker Group by its $18 billion bid. Perpetual Ltd., the majority shareholder of the Australian building materials maker, has revealed that it would accept the revised offer from Cemex. Perpetual’s holding in Rinker is 10.32%, and it has been offered $15.85 per share by the world’s third biggest cement company in April this year. By this offer, valuation of Rinker stands at $14.25 billion. In October last year, Cemex had proposed a $13 per share bid, which was later rejected by Perpetual. This would be the biggest takeover in Australia’s corporate history if it takes shape.

Beware: Love has its side effects too!!!
HBO chairman and Chief Executive, Chris Albrecht, has been compelled to resign from the company after he was charged of assaulting his girlfriend in a Las Vegas parking lot. His removal comes at a vague time for HBO as he is closely involved with the important marquee series “The Sopranos” which ends its six season run in the month of June. Albrecht’s episode has also highlighted The Los Angeles Times report of 1991 which claimed that HBO had paid around $400,000 to a subordinate of Albrecht, who had charged him of choking her during an argument in her office. Whatever the case be, HBO officials are claiming it to be a right decision for the company.

Citi and Bisys expect to fit well!
Citigroup Inc. has agreed to invest $1.45 billion in a deal to buy Bisys Group Inc., the financial services provider. The transaction would include offering services to hedge funds and private equity firms. As a merger consideration, Bisys’ shareholders will be given $11.85 per share, and a special dividend of $0.15 will be paid at the closing of the transaction by Bisys. Citi is soon to become a leading market provider of hedge fund and mutual fund services, as well as a top-tiered administrator for the private equity industry, once this acquisition is done.

A saga of stake and sedan!
Maruti Udyog Limited (MUL) is definitely making heads turn in the market. Be it the launch of its long awaited sedan, Suzuki SX4, or the decision of government to sell its remaining 10.27% stake (for Rs.22.5 billion) in the company; India's leading car manufacturer is making its presence felt in the market and that too in style!

After the successful launch of the Zen Estilo and the launch of the diesel version of its Swift Model, Maruti has strategically launched the Suzuki SX4 to induce competition in the highly competitive A3 segment, which already boasts of cars like Hyundai Verna, Honda City, Ford Fiesta and Mahindra Renault. This launch also marks the transition of Maruti from being a leading small-car manufacturer to that of a complete car maker. Even before introducing the SX4 in Japan and Europe, MUL rolled out this bold, muscular and feature-packed car, powered by the global M-series engine, highlighting the increasing importance of Indian market in the world.

Jagdish Khattar, Managing Director & CEO, MUL said, “SX4 sedan is just the right car with which MUL can reinforce its presence in the A3 segment and enhance its leadership.” Not only this, the company has also revealed that it will soon expose the revamped version of its Sports Utility Vehicle (SUV) – the Grand Vitara in India. The refurbished version of the new Vitara will be a 5-seater SUV, with a 2-litre petrol engine and also having a competitive pricing range of Rs.1.6 million to Rs.1.7 million. Well, Maruti definitely seems to be in the top gear!