Industrials Lead Weekly M&a Activity
Led by the completion of the three-way split up of industrials conglomerate ITT Corp, deal making activity in the sector has reached $223.8 billion for year-to-date 2011, a 37% increase over year-to-date 2010, helping to keep worldwide M&a 18% above 2010 levels. Goldman Sachs remains the top year-to-date advisor for industrials M&a with a $74.4 billion in advisory assignments from 32 deals.
Asia Pacific cross-border M&a remained active with the acquisition of Canada’s Grande Cache Coal by a special purpose vehicle controlled by China’s Winsway Coking Coal Holdings and Japan’s Marubeni Corp. Global cross-border M&a is up a modest 3% this year while China cross-border M&a, driven by energy & power deals, is up 39%.
Groupon Brings US IPOs To $27.8 Billion
Ten initial public offerings tested the equity capital markets this week raising a combined $1.8 billion. Groupon’s widely anticipated offering raised $700 million on NASDAQ on Thursday evening, bringing the volume of US-domicile IPOs to $27.8 billion, an increase of 100% compared to year-to-date 2010. Groupon marks just the fifth US IPO listing so far this quarter.
Energy & power, healthcare and high tech IPOs account for nearly 65% of year-to-date activity for US issuers. Goldman Sachs, one of Groupon’s 11 bookrunners, commands a leading 15% of the market for US IPOs this year, followed by Morgan Stanley and Barclays Capital (12.6%). Morgan Stanley tops the ranking by number of deals, with 29.
US Municipal Bonds Down 34%
US municipal bond issuance reached $230.3 billion this week, registering a decline of over 34% compared to the same period in 2010, and the lowest dollar volume for municipal new issues for a year-to-date period since 2001. by number of deals, year-to-date 2011 volume is down 27% compared to last year at this time with to 8,268 new issues, the lowest levels since year-to-date 1995.
Issuers from California, new York and Texas account for 36% of year-to-date municipal bond activity, compared to 31% last year. JP Morgan tops the list for muni bond bookrunners this year with $33.7 billion or 14.6% of the overall market, a gain of 3.8 market share points.
Source – Thomson Reuters
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