U.S. companies vulnerable to foreign buyers

With a record volume of international takeovers of U.S. companies, it almost appears America itself is up for sale.

The weak dollar and slumping stock prices of U.S. companies has created a window of opportunity for international buyers to snatch up American icons such as beer brewer Anheuser-Busch Cos Inc (BUD.N: Quote, Profile, Research) and the landmark Chrysler Building in New York.

"The dollar has depreciated so much that America is on the sale rack," said Sung Won Sohn, a professor of economics at California State University.

"America has such an appetite for foreign goods -- Chinese imports and oil -- that U.S. dollars have gone overseas. Now, many Americans aren't happy that foreign companies are buying pieces of America with the money we gave them in the first place," Sohn said.

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U.S. companies vulnerable to foreign buyers

With a record volume of international takeovers of U.S. companies, it almost appears America itself is up for sale.

The weak dollar and slumping stock prices of U.S. companies has created a window of opportunity for international buyers to snatch up American icons such as beer brewer Anheuser-Busch Cos Inc (BUD.N: Quote, Profile, Research) and the landmark Chrysler Building in New York.

"The dollar has depreciated so much that America is on the sale rack," said Sung Won Sohn, a professor of economics at California State University.

"America has such an appetite for foreign goods -- Chinese imports and oil -- that U.S. dollars have gone overseas. Now, many Americans aren't happy that foreign companies are buying pieces of America with the money we gave them in the first place," Sohn said.

In the second quarter, acquisitions of U.S. companies by international buyers totaled $124.3 billion, marking the highest total for any second quarter on record and jumping 23 percent over the year-earlier quarter, according to research firm Dealogic.

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Abu Dhabi fund gains General Electric stake in $40bn partnership

The 130-year-old US industrial empire General Electric is cosying up to a Middle Eastern sovereign wealth fund in a commercial partnership that will make Abu Dhabi's government one of its biggest shareholders.

GE has struck a broad-ranging deal with Abu Dhabi's Mubadala fund to pool financial resources in finding $40bn (£20bn) of business opportunities in the Middle East and Africa, ranging from aviation and oil to clean technologies, green energy and water purification.

To cement the deal, Mubadala intends to buy sufficient stock on the open market to become one of GE's 10 biggest shareholders. GE's shares rose 66 cents to $28.35 in early New York trading yesterday.

GE chief executive Jeffrey Immelt said he saw similarities between his company and the Abu Dhabi fund. "When we look at Mubadala we see a kind of GE in the making, if you will. We see a company that is an industrial company and a financial company with a new generation of leaders."

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Weak economy may be Wal-Mart’s strong suit

There was a time when Betsy Baker would have been embarrassed to be seen shopping at Wal-Mart.

But that was a few years ago, before the price of gold shot up and the economy slowed, all but ruining her family jewelry business. And it was before her monthly house payments skyrocketed to $3,800 a month from $1,800, and she found herself trying to get rid of a house that is worth substantially less than she paid for it. It was before her family conceded that they could not escape their economic woes without filing for bankruptcy.

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InBev seeks new Bud board in takeover battle

InBev NV (INTB.BR: Quote, Profile, Research) increased pressure on reluctant takeover target Anheuser-Busch Cos Inc (BUD.N: Quote, Profile, Research) on Monday with a plan to replace the U.S. rival's board of directors, which had rejected its $46.3 billion takeover offer.

Belgium-based InBev filed a preliminary proposal with the U.S. Securities and Exchange Commission that would lead to Anheuser shareholders voting on the board's future.

"InBev is increasing the pressure with this move," said Kris Kippers, analyst at Petercam. "It has also referred to the current weak market conditions. I think the chances are less that it will increase its offer."

InBev, the world's second-largest brewer by volume, said it wanted to give shareholders a voice in its proposed $65 per share takeover of the Budweiser and Michelob brewer in the face of the Anheuser board's unwillingness to talk.

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Spurned InBev replies to Anheuser-Busch

InBev CEO Carlos Brito issued a statement Tuesday saying the Belgian brewer is committed to its $65-per-share offer price for Anheuser-Busch Cos. Inc. and said InBev "will pursue all available avenues" to allow A-B shareholders to have a direct voice in the process.

In his statement, Brito reiterated InBev's previous stance that $65 per share "reflects the full and fair value of the company." A-B formally rejected InBev's $46.3 billion takeover proposal on June 26, calling the $65-per-share offer "financially inadequate and not in the best interests of Anheuser-Busch shareholders." This is InBev's first response since the rejection.

Brito said in the statement he is skeptical of A-B's expanded cost-cutting plan, dubbed Blue Ocean, that the leading domestic brewer says will save more than $1 billion over the next four years.

"Our firm proposal was rejected in favor of a newly formulated management plan with significant execution risks," Brito said in the statement.

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EXL eyes mid-sized companies in US, India

Delhi-based EXL Services Holding is planning to acquire mid-sized companies with revenues ranging between $50 million and $100 million (around Rs 200-400 crore) as a part of its inorganic growth plan.

The company is looking at acquisition of firms in both the US and India. It plans to close at least one deal by the end of this financial year.
EXL has set the revenue for target firms in India in the range of $50-100 million, while it is eyeing multiple acquisitions of small firms offering business process outsourcing services in the US.
"Acquisitions are a core part of our growth strategy and these targets, here and abroad, will happen if we get the right kind of opportunity," said Rohit Kapoor, president and CEO, EXL Services.

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India's Tulip IT Eyeing buyouts in US, Europe

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Hardeep Singh Bedi, MD of Tulip IT Services that they are looking at acquiring the inorganic growth in the US and Europe.“We have identified some countries and we have given mandates and we are trying to see if any of these companies meet our requirements and going forward, we will be looking at acquisitions in the Europe countries and we will also be looking at tying up with some companies in the developing countries where we can roll out similar networks in partnerships with local partners,” he said.

Excerpts from CNBC-TV18’s exclusive interview with Hardeep Singh Bedi:

Q: Could you outline the growth triggers for your company going forward - the network integration is one of your key plays. But going forward, you have been looking at ramping up the data connectivity and your sworn projects, what’s the update there?

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France Telecom posts revenue growth, eyes acquisitions

PARIS—France Telecom SA on Wednesday reported growth in first-quarter revenue and profit margins and said it is ready to seek acquisitions to enhance its presence in both emerging markets and Western Europe.

"All the necessary conditions are in place for the group to take part in the consolidation of the European sector," Chief Executive Didier Lombard said in a statement.

France's dominant telecommunications operator said last month it was considering possible Nordic acquisitions including Swedish company TeliaSonera and Norway's Telenor.

France Telecom Chief Financial Officer Gervais Pellissier, speaking in a conference call, said France Telecom is still interested, but has not opened talks with TeliaSonera.

France Telecom said when it looks at possible acquisitions, it is seeking synergies, stronger positions in new products and services, increased activity in emerging countries, and compatibility with business models and strategic priorities.

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