Single-Malt Whiskey ... and other items of M&A news

Weekly Corporate Growth Report, Aug 30, 2004

Distillery Business for Sale

Investment Bank NM Rothschild & Sons has been retained to find a buyer for Glenmorangie, the distiller of Scotland's top selling single-malt whiskey. The MacDonald family of Edinburgh has announced its interest in selling its controlling 52 percent interest in the company for about $180 million. Under London takeover rules, the sale of the controlling stake would trigger a takeover bid for the whole company.

Pierre Cardin for Sale

French fashion designer Pierre Cardin has put his luxury clothing label's licensing unit up for sale with an asking price of 400 million euros, or about $484 million. The sale process is being handled by Multipartner SpA, a financial consultancy based in Rome. The licenses for sale include Pierre Cardin perfumes and cosmetics as well as the rights to use the Pierre Cardin brand name on clothing, eyewear, pens, and a range of other products.

Mr. Cardin is retaining control of his fashion business and intends to continue producing is twice yearly fashion collections. Cardin's property and restaurant assets are also excluded from the sale.

Sumitomo Makes Rival Bid for UFJ

Sumitomo Mitsui Financial Group Inc. has made a $29.2 billion hostile bid for UFJ Holdings Inc. Under Sumitomo's bid, each share of UFJ would be replaced by one share of Sumitomo. UFJ is currently involved in a merger deal with Mitsubishi Tokyo Financial Group Inc. Mitsubishi has not disclosed the share exchange ratio for its deal with UFJ.

UFJ responded to the new offer by stating it would proceed with the Mitsubishi deal but would "examine the offer prudently with outside experts."

Viacom Not Interested in Electronic Arts

A representative for Viacom Inc. stated that the company was not interested in acquiring video-game maker Electronic Arts and that Viacom has not entered into discussions with Electronic Arts or any other video-game company. The statement was made in response to a New York Times article that reported that Viacom had expressed interest in Electronic Arts.

Prime Hospitality Deal Carries Termination Fee

Termination fees have been disclosed for Blackstone Group's proposed acquisition of Prime Hospitality Corp. Blackstone faces a $27 million fee if it abandons the deal, while Prime would face a penalty of $23 million plus up to $4 million in expenses if it fails to complete the transaction.