monthly m&a insider - mergermarket

Monthly M&AInsiderA mergermarket report on global M&A activity

August 2008 Issue

ContentsIntroduction 3

Private equity in Europe: Royale with cheese - Goldman embarks on European private equity takeaway? 4

Chinese Paper sector: M&A in 2008 5

North American private equity: What a tangled web we weave 6

North America 7

Latin America 23

Asia-Pacific 36

China 46

Japan 61

Australia 72

Europe 86

UK 98

Germany 112

France 128

Italy 140

Benelux 154

Iberia 167

Nordic 179

CEE and CIS 193

Russia 207

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Monthly M&A Report – 3

Introduction

M&A full of Energy

The Energy Sector of late appears to be very active, with

several big deals coming into play since the beginning of

July. Between the beginning of July and the 19 August there

have been 81 deals in the Energy sector at a total value of

€47.1bn, according to mergermarket data. The largest of

these deals is Union Fenosa’s takeover by Gas Natural, the

Spanish gas company, for €22.8bn on 31 July. Gas Natural

reportedly acquired a 9.9% stake in listed Spanish electricity

group Fenosa from construction group ACS earlier on in

the piece, and in mid-August bought another 5.15% stake

in Fenosa from Spanish bank, de Ahorros del Mediterraneo

(CAM) at €18.33 per share.

In late July mergermarket reported that Electicite de France

(EdF) saw both the UK and Spain as growth markets, and it

was rumoured early in the Fenosa takeover process that they

were looking at a potential bid. The reason for this being its

obvious interest in European sector acquisitions through it bid

for 35% Government owned British Energy. British Energy,

the UK nuclear power company, is still likely to be sold to

France’s EdF because of the strong political imperatives for

a deal, despite the near-collapse of the deal in early August,

according to mergermarket. A person close to the deal

reiterated that EdF remained the only serious contender

for the company, despite the British Energy board rejecting

the latest EdF bid, believed to be valued at around 765p

per share, even when EdF had gone so far as to schedule a

press conference to announce the purchase. The decision

by the board to reject the offer reportedly came after major

shareholders requested EDF put more money on the table.

Meanwhile, E.ON, the listed German company involved

in energy, utilities, chemicals manufacturing, oil and gas

production, real estate, and telecommunications, has agreed

to acquire the remaining 44.6% stake it does not own in

E.On Sverige, the Swedish power and gas company, as well

as a hydropower plant located in Sweden from Statkraft, the

Norwegian power generation company, for approximately

€4.5bn. E.On is tipped to make further investments in the

strong Nordic Energy sector.

mergermarket is pleased to present you the August edition

of Monthly M&A Insider, a publication which provides you

with features by mergermarket journalists, and all monthly

potential deal activity and drivers. We hope you continue to

find it useful and informative.

by Anna Henderson, Remark

Head of Research – Elias Latsis

Managing Editor – Ed Lucas

Editor – Anna Henderson

Head of Production – Steve Jeal

For advertising opportunities contact: Simon Anam Tel: +44 (0)20 7059 6124 [email protected]

North America – Mo Hersi

Japan – Shunsuke Okano

Greater China – Chun Shek Chan

Asia – Wing Pun

Australia – Cicilie Lofsgard

UK – Virginia Christopanou

Germany – Sola Akinola

Iberia – Raul Andrade and Virginia Garcia Martinez

Benelux – Kathleen Van Aerden

CEE – Nulifer Sezer

LatAm – Raul Andrade

France – Linda Frosio

Italy – Virginia Christopanou and Zaynab Dost

Nordic – Laya Montelibano

Russia – Yasmin Salfati, Jennifer Ruiz, and Aksana Fitzpatrick

Europe – Elias Latsis


Features

Earlier this month PE activity saw shifting investment in fund

holdings within AAC Capital Partners, the European buyout

group with operations in Amsterdam, London and Stockholm.

TGI Friday, the American style dining chain was just one of

a range of portfolio companies in funds managed by AAC

Capital partners to change hands as a Goldman Sachs led

consortium injected €950m ($1.5bn) to take over the LP

holdings of RBS, Fortis and Santander.

Formerly called ABN Amro Capital, AAC Capital Partners has

been hived off by its new parents RBS, Fortis and Santander

as part of their ongoing digestion of the assets of ABN Amro,

the banking group they acquired in a €70bn deal last year.

According to the Financial Times, Goldman Sachs, Alpinvest

and the Canada Pension Plan are committing €500m of new

funding into AAC’s latest Northern Europe fund. At the same

time the buyers have pledged to provide a further €450m in

new funding for AAC.

In return the bidder consortium is receiving the controlling

interest from RBS, Santander and Fortis of a fund that holds

21 existing portfolio companies, coupled with 11 more

recent deals. Effectively the transaction comprises a portfolio

interest of 32 companies corroborated in a Wall Street

Journal article. A quick glance at mergermarket’s PE Portfolio

product reveals that AAC Capital Partners manages a total

series of fund holdings that includes 87 portfolio companies.

The deal is certainly the most significant secondary deal

for quite a while and underlines the ambition and belief of

Goldman and its partners in the significant underlying value

of many European private equity portfolios in the current

troubled market place. For the moment, however, it is worth

underlining that the deal marks a shift in investment backing

rather than a shift in direct control, with AAC continuing to

manage the funds directly. Certainly, in recent times the

financial clout of Goldman Sachs has allowed it to be an

active participant in the secondary investment in private

equity assets.

It is too early to say whether the deal presages a longer

term shift in the make-up of the European mid market

private equity landscape. However, it could be argued that it

presents a scenario where larger US private equity funds buy

extensive portfolios of smaller European mid market players

- effectively undertaking M&A in their industry. Certainly

the European private equity mid-market universe where

AAC operates (€50m-€500m) is a very congested space.

If so, coming months could see more moves like the AAC

investment played out as the opening gambits in the longer

term consolidation and institutionalisation of the European

private equity asset class.

by Ed Lucas, Editor, Remark

Royale with cheese - Goldman embarks on European private equity takeaway?

Could European private equity be on the cusp of a major round of consolidation among funds?


Features

Chinese Paper Sector M&A 2008: Companies eye out financial investors as corporate buyers hold back on bids

Meanwhile, the PRC government is encouraging

consolidation in this heated-up sector through M&A.

However, as corporate buyers appear to be holding back

on bids, and many are hunting for financial investors while

maintaining their market presence.

Private equity is taking the stage on M&A this year in the

sector. Hung Hing Printing Group, the Hong Kong listed

paper company has successfully brought in CVC Capital

Partners for financial assistance. Additionally, Hung Hing

Printing, companies like Shandong Chenming Paper, Lee and

Man Paper Manufacturing, Samson Paper, Hemu Technology,

Hubei Firsta New Packaging Material, Forest and Paper have

been either expressed interest in, or are already in talks with

financial buyers.

A large majority of paper companies, regardless of their sizes,

are in need of cash injections, and this offers opportunities

for private equity to enter this fast-growing industry, said

one analyst. “Given the capital intensive nature of Paper

manufacturing business, companies simply cannot expand

their production capacity through internal fund”.

So far the activity between domestic papermakers has not

seen an excessive amount of M&A. Companies such as

Shandong Sun Paper, Zhejiang Jingxing Paper and Yueyang

Paper made only one acquisition on 2007. More domestic

buys are yet to appear this year, another indication the

industry it looking to financial investors, rather than making

outright acquisitions.

The hard lending situation which resulted from the rise in

the bank reservation ratio, coupled with the government’s

guideline to keep debt level under 70%, are also contributing

factors driving papermakers to seek help from financial

investors, the analyst added. Dennis Lee, CEO of Samson

Paper, explains why industry players are not active buyers

as “Papermakers are currently making good money, as the

industry is on the rise, and the selling price is too high for

acquisition’s right now”. He said Samson Paper had made

a purchase last year, but it is holding back more buy due to

high cost. He adds, “and for the smaller paper mills, they

are too polluted and would be forced to close down soon; so

given this no company would bother to buy the companies

and turn them around.”

A second analyst explains that a good time for industry

acquirers is yet to come, “The paper sector is in

prosperity, but big papermakers will remain conservative

on investments.” He also pointed out the two biggest

containerboard manufacturers in China, Nine Dragons Paper

and Lee & Man Paper Manufacturing, are recessing on

domestic buys, and instead shifting their acquisition focus

outwards, towards Vietnam in particular.

The analyst believes “2009 would be a better time for

acquisitions to take place within the industry. When

economic growth starts to slowdown, we shall see a more

redundant supply and acquisitions could result as companies

face financial difficulties.”

“Demand of paper is heavily dependent on GDP growth and

retail situation”, Raymond Lee, Chief Executive Officer of

Lee and Man Paper Manufacturing said, observing that when

the GDP growth rate falls below 10% the industry is likely

to face a saturated demand. He said the GDP growth rate

has already dropped to near 10%, and the slowing trend has

become apparent when the company spotted an overflow of

paper supply in some provinces.

The analysts agreed on the tight relationship between the

industries with the overall economy, and explained most

major paper types are used for product packaging purposes

or printing for consumable products, thus demand is highly

reliant to the retail environment.

PRC government is promoting M&A to raise industry

concentration rate of the top 30 papermakers from 32% to

40% by end 2010. Papermakers with production capacity

higher than 3m tpa are particularly encouraged to acquire

their peers. And by 2010, it is to see 10 paper making giants

with around 1-3m tpa production capacity to emerge. As

Huatai Securities notes, only Nine Dragons and Shandong

Chenming Paper reached the 3m tpa production capacity

in 2007. Huatai Securities also states that more M&A is

necessary for the Chinese paper industry to grow.

by Edince Kun in Hong Kong

With the fast-growing Chinese economy, the paper industry is reaping the benefits and moving into a period of activity in 2008.


Features

North American private equity: What a tangled web we weave

In the past several months, banks have one by one revealed

their plans to detoxify their balance sheets in this fashion.

Swiss bank UBS sold mortgage bonds to the US-based

BlackRock investment fund for $15bn, marked down from

its $20bn face value, while Citigroup reportedly planned to

unload $12bn of its leveraged loans by courting private equity

firms like TPG and Apollo Management at 90 cents on the

dollar. And just weeks ago, Merrill Lynch sold $6.7bn worth

of CDOs to private equity firm Lone Star at a discount of 22

cents on the dollar.

Interestingly, the loans private equity funds are picking up at

bargain were once used to finance their debt-heavy buyouts.

According to mergermarket, private equity is indeed buying

these loans from banks who were were once underpinning

some of their most prominent LBOs. RBS and Citigroup

helped to finance the $27bn Clear Channel buyout by

Thomas H Lee and Bain Capital, which was announced in

2006 before the crunch took hold. RBS also provided debt

for the 2005 buyout of Toys R Us by KKR, Bain Capital and

Vornado Realty Trust and was one of several private equity

firms backing KKR’s buyout of Alliance Boots in 2007. Such

highly leveraged deals seem like endangered species today:

according to mergermarket, the $7.3bn Toys R Us deal was

funded by debt worth an estimated $6bn, while debt funding

accounted for $16.4bn of the $24.2bn Alliance Boots deal.

Banks appeared to be limitless sources of leverage during

these years, but today they seem eager to get rid of this

leverage, and more than willing to accommodate potential

buyers. For example, when Lone Star bought Merrill Lynch’s

loans, the bank funded 75% of the transaction, and when

BlackRock purchased $15bn worth of troubled mortgage debt

from UBS, the investment firm came up with just $3.75bn of

the purchase. UBS and sovereign wealth funds took care of

the rest.

These are indeed enticing offers, and as the Financial Times

aptly pointed out on Tuesday, the latest move from RBS

underscores private equity’s continuous “transformation

into investors” in buyout boom loans. But as the paper

also pointed out last month, much of this debt stems from

a time when the credit bubble was at its puffiest, when

faulty ratings were running high and when borrowers with

bad credentials were taking out mortgages they would later

default on. Consequently, most of the loans committed to

after 2005 are now contaminated with mortgage defaults and

have led to substantial write-downs on the banks’ behalf.

Only time will tell whether the recent bargains in the debt

market deserve as much praise as they have been getting

from private equity executives celebrating the potential for

high returns. Either way, the changing dynamic between

private equity and its former lenders will likely stay in the

spotlight until the worst of the credit crisis is cleaned up.

by Elizabeth Castro, Remark

Another bank joined its peers this month by selling loan packages to private equity firms at far less than their original value. RBS is reportedly poised to sell $8bn of loans to Apollo Management, TPG and GSO Capital at 80 cents on the dollar.

Monthly M&A report – 7

Genentech: Roche deal could be agreed in a month or two• Roche’scontroversial$89asharebidannouncedon

Mondaytoacquiretheremainingstakeitdoesnotown

inGenentech,couldmovefasterthantheestimated

threetoeightmonthswhichsomeanalystreportshave

suggested,sourcesfamiliarwiththesituationsaid.

• Onesourcefamiliarwiththesituationsaidadealbetween

thetwoshouldmovequickerbecausethereisonlyone

potentialbuyerwhichalreadycontrolsthecompany.“I

don’tthinkitwilldragout.Onewayortheother,itwillbe

resolvedinthenextmonthoroneandahalfmonths,”he

said.

• Asecondsource,whoalsoclaimstohavespokento

“wellinformed”peoplearoundthesituationsaidRoche

couldpotentiallyannounceitsfinancingstrategywithin

thenexttwoweeks.

• Additionally,bothcompaniesareliningupfurther

investmentbanks.OnThursdayGenentechannounced

ithasformedaspecialcommitteeandhasretained

GoldmanSachstoactasitsfinancialadviser,andLatham

&Watkinsasitslegalcounsel.WilsonSonsiniGoodrich&

RosatiisrepresentingGenentech.

• Rocheannouncedthatitretainedinvestmentbanking

advisorGreenhill&Co,anditsattorneysareDavisPolk

&Wardwell.ARochespokespersondeclinedtoidentify

banksinvolvedinthefinancingofthedeal.

• Thesecondsourcenotedthatthelistofotherinvestment

banksthatcouldgetinvolvedareUBS,CreditSuisse,

JPMorganandCitigroup,someofwhichcouldactas

lendersorworkalongsidethethreeindependentdirectors

convenedbyGenentech.

• ThedirectorsevaluatingRoche’sproposalincludeHerb

Boyer,co-founderofGenentech;DebraReed,CEOof

SanDiegoGas&ElectricandSouthernCaliforniaGas

Co;andCharlesSanders,formerchairmanandCEOof

GlaxoSmithKline.

• AGenentechspokespersonsaidtheindependent

directorswillassesstheproposalinconsultation

withfinancialandlegaladvisers.“Weexpectthatthe

independentdirectorswillpromptlyreviewtheofferand

respondtoRoche,”shesaid.

• However,thesourcesweremixedonwhetherRochewill

faceconstraintsonraisingthecashneededtoacquirethe

remaining44%stakeinGenentech.Somebelievedthat

consideringRoche’soperatingcashflowof$15.86bnin

2007,andwithsalesof$45.1bnandEBITDAof16.7bn,

raisingcapitalshouldnotbeproblematic.

• Alternatively,athirdsourcefamiliarwiththesituationsaid

finding$45bnincashwouldbeastretchinthecurrent

market.“Nobodywantstobeaherorightnow.Maybe

peoplestepuptofinance$10bnofthetotal,butthey’re

notgoingtostepupformorethanthat,”hesaid.He

addedseveralbanksmightjointhefraytoworkwith

Roche’sfinancing.

• Thereisastrongprobabilitythattheindependent

directorswillvotedownthedeal,infavorofahigher

price,thesourcesconcurred.Thesecondsourcenoted

thatBoyerhasclosetiestothecompanyandastrong

relationshipwithArthurLevinson,thecompany’sCEO,

whohasbehindcloseddoorsshownapprehensionbythe

offer.

• “Boyeristhedominantmemberofthatspecial

committeeandheistheguywhopicked[Levinson]as

CEO,heiscloseto[Levinson].Andif[Levinson]doesn’t

likethisdealthatmeansthespecialcommitteeisgoing

tofightveryhard,”heemphasized.

• AtpresentthesourcessaidLevinsonisdisappointed

thatRocheisforcingthisonGenentech,butatthesame

timeRocheisdisappointedbecauseGenentechhasbeen

sayingitisawhollyindependentcompany.“Rochelikes

thisvisionofabigfamily,”headded.

• Thesecondsourcesaidfromspeakingtoanumberof

topGenentechshareholders,theyareexpressingdisdain

towardsthecurrentproposalandexpectapricetagnorth

ofUSD100pershare.

• Anindustryinvestorpricedadealat$100-105pershare.

However,asecondindustryinvestorspeculatedthatby

observingRoche’sconservativenature,theofferwilllikely

beraisedtobetween$95and$100pershare.Roche

declinedtocommentonpricespeculation.

• Anex-Rocheexecutivepointedoutthatalikelyculture

clashcouldariseamongemployeesatSwiss-based

RocheandCalifornia-basedGenentechifthetieupgoes

ahead.Still,henoted“ifRocheissmart,itwon’ttake

longwiththeprocess,becausethelongertheprocess

dragson,thebesttalentwillleave.”

NorthAmerica

NorthAmerica


• AsforGenentech’sproducts,questionshavebeen

raisedoverwhethertheacquisitionpricewillreflectthe

anticipatedresultsfromAvastinintheadjuvantcolorectal

cancersetting(C-08trial)–Genentech’sleadoncology

therapydesignedtoinhibitangiogenesis.

• Theproposeddealcontemplatesriskadjustedfairvalue

forAvastin’spendingadjuvantinterimresultsexpected

in4Q2008,thesecondindustryinvestorsaid.This

newsservicehasshownthroughphysicianinterviews

thatAvastinintheadjuvantcolorectalcancersettingis

associatedwithanincreasedriskforgastrointestinal

side-effects,andtheadverseeventprofileneedscareful

evaluationasthedrugwillbeusedinamuchhealthier

patientpopulation.

• However,SueHellmann,PresidentofProduct

DevelopmentatGenentechdefendeditssafetyprofileina

recentearningscallbystatingthattheinterimsafetydata

presentedatASCO“onouradjuvantcoloncancerstudy,

C-08,lookedencouragingandweexpectthefinalanalysis

ofthisstudytobein2009.”

NorthAmerica


Dealofthemonth

Target: Anheuser-BuschCompaniesInc Announced: 14July2008

Bidder: InBevSA Deal value: $58,924

Seller: Deal nature: Recommended

Plan of Merger: Anheuser-BuschCompaniesInc(BUD),aDelawarecorporation,hassignedadefinitiveagreementto

beacquiredbyInBev(INBVF),aBelgiancorporation.The

boardsofdirectorsofbothcompanieshaveapprovedthe

merger.

Anheuser-Busch(BUD),aUSbasedcompanyheadquartered

inSt.Louis,Missouri,istheholdingcompanyofAnheuser-

Busch,Incorporated(ABI),abeerbrewer.

InBevNV(INB),aBelgiumbasedcompanyheadquarteredin

Leuven,isaglobalbrewer.

Synergies:Thecombinationwillcreateaglobalbeergiantwithsynergies,bothintermsofcostsavingsandrevenue

enhancementopportunities.Thecompaniesstatedinafiling

thattheyexpecttogeneratesynergiesofapprox.$1.5bnby

2011phasedequallyoverthreeyears.

Terms:$70.00pershareofBUD

• Theofferprovidesapremiumof5.26%basedon

Anheuser-Busch’sclosingsharepriceon13-Jul-08of

$66.50,and19.96%basedonthe11-Jun-08prerumor

closingsharepriceof$58.35.

• Theimpliedequityvalueofthetransactionisapprox.

$49.9bn.

• IfasuperiorofferweretoemergeforBUD,thecompany

wouldberequiredtogiveInBevatleast3business

daystomakeadjustmentstoitscurrentofferbefore

BUD’sboardofdirectorscouldeffectachangeof

recommendationofthedeal.

Financing:InBevhasreceivedfinancingcommitmentsfrom

financialinstitutionsincludingBancoSantander,Bankof

Tokyo-Mitsubishi,BarclaysCapital,BNPParibas,Deutsche

Bank,Fortis,INGBank,JPMorgan,MizuhoCorporate

BankandRoyalBankofScotland.Thetransactionwillbe

financedwith$45bninSeniorFacilitiesand$7bninbridge

financingfordivestituresofnon-coreassetsfromboththe

firms.InBevhasreceivedcommitmentsfora$9.8bnequity

bridgefinancingforuptosixmonthsafterclosing.There

arenoconditionsprecedentrelatedtothefundingunder

thefacilities,exceptthoseexpresslysetforthintheSenior

FacilitiesAgreementortheBridgeFacilitiesAgreement.

ExpectedClose:Thetransactionisexpectedtocloseby31-

Dec-08.

TerminationDate:Theterminationdateforthetransactionis

19-Mar-09.

TerminationFee:$1,250m,or2.78%basedontheimplied

equityvalueofthedeal.Theper-shareincreaserequired

tocoverthisfeeinasuperiorofferwouldbe$1.75.Under

certaincircumstances,therewouldbeareversetermination

feeandtheparentwouldowethecompany$1,250m

NorthAmerica


Exit multiples – Y/E 31/12/07 Premium analysis

Multiples Value ($m) Offer price per share ($)

70.00

Revenue 3.1x 18,989 1 day before 5.26%

EBITRADING DAYSA 15.1x 3,899.4 1 month before 14.53%

EBIT 20.3x 2,903.2 1 day after 4.63%

Earnings 25.1x 2,115 Pre-rumor 22.48%

Advisers

Target/Seller Bidder

Financial GoldmanSachsMerrillLynchCitigroupUBSMoelis&Company

Financial DeutscheBankBNPParibasLazardJPMorganCazenove

Legal WeilGotshal&MangesSimpsonThacher&BartlettSkaddenArpsSlateMeagher&FlomLatham&Watkins

Legal Allen&OveryCliffordChanceSullivan&CromwellPaulWeissRifkindWharton&GarrisonLinklaters;

PR KekstandCompany PR BrunswickGroupJoeleFrankWilkinsonBrimmerKatcher

mergermarket/dealReporter Intelligence

14-Jul-08 Anheuser-Busch:InBev’sfinancinghas'noouts';GrupoModelounlikelytohaveanyimpactondeal

03-Jul-08 Anheuser-Busch:InBevwouldbepayingfairvalueinlowUSD70s,shareholderssay;targetlikelytoexpectpremiumnorthofUSD80

19-Jun-08 HeinekenandSABMillercouldfacepressuretopursueconsolidationifInBev'sABtakeovermaterialises,bankersargue

18-Jun-08 Anheuser-BuschconsidersInBevbidasundervalued;InBevtobeginmeetingwithAnheuser-Buschshareholderslaterthisweek

09-Mar-07 InbevcouldmakeacquisitionsinEurope,saysWesternEuropepresident;mergerwithAnheuser-Buschis'purespeculation'

Dealofthemonth

Timetable and expected events

Regulatory Date Notes

HSR(USA) 30calendardayswaitingperiod;further30calendardaysfollowingcompliancewiththerequestforadditionalinformation

BelgianBanking,FinanceandInsuranceCommission

reapprovalbyBelgianBanking,FinanceandInsuranceCommission

EuronextBrussels reapprovalbyEuronextBrussels

Offer timetable

TerminationDate 19-Mar-09 redatebywhichmergermustbecompletedbeforeagreementmustbeamended

PrelimProxy repreliminaryproxystatementfiledwithSEC,reviewingprocesstypicallylastsatleast30calendardays,andcanbeaslongas60calendardays

DefProxy redefinitiveproxystatementdeclaredeffectivebySEC

EffectiveDate redatemergerbecomeseffective,normally2tradingdaysafterEGMapproval

SettlementDate redatepaymentcanbeexpectedby,normallywithin4businessdaysofEffectiveDateinstateofDelaware

Company events

BUDEGMrecorddate redatesharesmustbeheldbyinordertovoteattheEGM

BUDEGM reapprovalofmergerbytarget'sshareholders;normally1monthfromdefproxy

InBevEGMrecorddate redatesharesmustbeheldbyinordertovoteattheEGM

InBevEGM reapprovalofmergerbytarget'sshareholders;normally1monthfromdefproxy

NorthAmerica


Top 15 North American announced deals for 31 July 2008 YTDAnnounced Status Target company Sector Bidder company Seller company Exit multiples (x) Bid premia

1-day beforeDeal value

($m)Revenue EBITDA P/E

14-Jul-2008 P Anheuser-BuschCompaniesInc

Consumer InBevSA 3.1 15.1 25.1 5.3% 58,924

05-Jun-2008 P AlltelCorporationInc

TMT VerizonWirelessInc AtlantisHoldingsLLC

3.2 32.2 - 28,100

21-May-2008 C TimeWarnerCableInc(86.30%stake)

TMT TimeWarnerCableInc(Shareholders)

TimeWarnerInc 3.2 9.0 26.3 - 25,461

28-Apr-2008 P TheWmWrigleyJrCompany

Consumer MarsIncorporated 4.2 19.2 35.1 28.1% 22,638

11-May-2008 P EnCanaCorporation(IntegratedOilandCanadianPlainsdivisions)

Energy,Mining&Utilities

EnCanaCorporation(Shareholders)

EnCanaCorporation

21,545

10-Jul-2008 P RohmAndHaasLtd Industrials&Chemicals

TheDowChemicalCompany

2.0 12.2 24.9 74.0% 18,166

13-Apr-2008 P ElectronicDataSystemsCorporation

BusinessServices

Hewlett-PackardCompany(HP)

0.6 5.1 18.5 3.6% 13,044

23-May-2008 P AlliedWasteIndustriesInc

Industrials&Chemicals

RepublicServicesInc 2.0 7.7 19.8 3.5% 12,319

29-Jul-2008 P FordingCanadianCoalTrust


TeckComincoLimited 9.8 39.7 41.8 11.1% 11,097

15-Jan-2008 C Citigroup(undisclosedeconomicinterest)

Financialservices

GovernmentofSingaporeInvestmentCorporationPteLtd;andKuwaitInvestmentAuthority

9,880

17-Mar-2008 P NYMEXHoldingsInc

Financialservices

CMEGroupInc 14.1 22.3 42.5 5.2% 9,504

16-Jul-2008 P AlphaNaturalResourcesInc


Cleveland-CliffsInc 4.8 38.3 297.9 35.0% 9,164

18-Jul-2008 P BarrPharmaceuticalsInc

Pharma,Medical&Biotech

TevaPharmaceuticalIndustriesLtd

3.5 20.6 56.4 42.0% 8,757

10-Apr-2008 C MillenniumPharmaceuticalsInc


TakedaPharmaceuticalCompanyLimited

14.5 223.0 500.0 52.9% 7,659

07-Jul-2008 P SprintNextelCorporation(25GHzspectrumandWiMAXrelatedassets)

TMT ClearwireCorporation SprintNextelCorporation

7,400

12-Jun-08 P AppliedBiosystemsGroup


InvitrogenCorporation 2.8 23.2 42.2 17.0% 5,915

12-May-08 P DRSTechnologiesInc

Defence FinmeccanicaSpA 1.5 11.0 20.3 4.9% 4,897

21-Feb-08 P ChoicePointInc BusinessServices

ReedElsevierplc 4.2 21.3 58.8 48.5% 4,167

C=Completed;P=Pending;L=Lapsed Source:mergermarket

Topdeals

NorthAmerica


Topdeals

Top 5 North American announced deals for July 2008Announced Status Target company Sector Bidder company Seller company Exit multiples (x) Bid premia



14-Jul-2008 P Anheuser-BuschCompaniesInc

Consumer InBevSA 3.1 15.1 25.1 5.3% 58,924

10-Jul-2008 P RohmAndHaasLtd Industrials&Chemicals

TheDowChemicalCompany

2.0 12.2 24.9 74.0% 18,166

29-Jul-2008 P FordingCanadianCoalTrust


TeckComincoLimited 9.8 39.7 41.8 11.1% 11,097

16-Jul2008 P AlphaNaturalResourcesInc


Cleveland-CliffsInc 4.8 38.3 297.9 35.0% 9,164

18-Jul-2008 P BarrPharmaceuticalsInc


TevaPharmaceuticalIndustriesLtd

3.5 20.6 56.4 42.0% 8,757


NorthAmerica


Expecteddeals

Situation Target company

Sector Potential bidder company

Financial adviser to bidder (B); target (T); seller (S)

Seller company

Market cap/ est. value ($m)

Comments

Expecteddeal GenentechInc


RocheHoldingAG GoldmanSachs(T)

100,890 Genentech,Inc.announcedthatithasformedaspecialcommitteeofitsBoardofDirectorstoassesstheproposalfromRochetoacquirealloftheoutstandingsharesofGenentechstocknotownedbyRocheatapriceof$89.00incashpershare.Informingthespecialcommittee,theBoardofDirectorsofGenentechresolvedthattheBoardwouldnotrecommendtostockholdersorotherwiseapproveamergerorotherbusinesscombinationtransactionwithRochewithoutthepriorfavorablerecommendationofthespecialcommittee.

Expecteddeal CalpineCorporation


NRGEnergyInc GoldmanSachs(T)

9,577 CalpineCorporationtodayconfirmedthaton14May,2008,itreceivedanunsolicitedproposalfromNRGEnergy,regardingapotentialcombinationbetweenCalpineandNRG.ThetermsofNRG'sproposalincludedanall-stockmergertransactionatafixedexchangeratioof0.534x,whichimpliesapremiumof6.7%basedontheclosingpricesofbothcompanies'stocksasof21May2008.Consistentwithitsfiduciarydutiesandinconsultationwithitsfinancialadvisorandlegalcounsel,Calpine'sBoardofDirectorswillcontinuetoreviewtheNRGproposaltodetermineifitisinthebestinterestofCalpine'sshareholders.

Expecteddeal TransAltaCorporation


GlobalInfrastructurePartners;orLSPowerEquityPartners

7,015 TransAltaannouncedthatitsboardhasconcludedabidfromLSPowerEquityPartnersandGlobalInfrastructurePartnersundervaluesthecompany.ThelistedCanadianenergycompanystatedthatthebid,forCAD39pershare,undervaluesTransAlta.

Expecteddeal VirginMediaInc

TMT Undisclosedbidder GoldmanSachs(T)

5,306 VirginMedia,theUSincorporatedmultimediagroup,announcedthatithasreceivedaproposaltoacquire100%ofthecommonstockoftheCompany.TheCompanywouldnothaveengagedinnegotiationswiththeofferoryet.Theproposalisbasedonpublicinformationandissubjecttovariousconditions,includingaduediligenceexaminationandaperiodofexclusivity.Theproposalalsostatesthatitwillbewithdrawnifitstermsarepubliclydisclosed.

Expecteddeal EncoreAcquisitionCompany


Undisclosedbidder LehmanBrother(T)

3,604 EncoreAcquisitionCompanyannouncedthatitsBoardofDirectorshasauthorizedtheCompany’smanagementteamtoexploreabroadrangeofstrategicalternativestofurtherenhanceshareholdervalue,including,butnotlimitedto,asaleormergeroftheCompany.LehmanBrothersInc.hasbeenengagedastheCompany’sfinancialadvisorinthisprocess.

Expecteddeal NationalCityCorporation

FinancialServices

Undisclosedbidder GoldmanSachs(T)

3,387 NationalCityCorporationannouncedthatitsBoardofDirectorsisreviewingarangeofstrategicalternativesforthecompany.NationalCitysaidthattherecanbenoassurancethatthisreviewwillresultinthecompanyundertakinganyparticulartransaction.GoldmanSachshasbeenretainedasNationalCity'sadvisorforthisreview.

Expecteddeal DieboldIncorporated

BusinessServices

UnitedTechnologiesCorporation

2,602 Diebold,IncreceivedanunsolicitedproposalbyUnitedTechnologiesCorporationtoacquirethecompanyinanallcashtransactionvaluedat$40.00pershareofDiebold.DieboldrejectedtheunsolicitedproposalfromUnitedTechnologieson3March2008.

NorthAmerica


Expecteddeals




Seller company


Comments

Expecteddeal ConsecoInc FinancialServices

Undisclosedbidder MorganStanley(T)

2,030 ConsecodeclinedSteelPartnersrequestforboardseats,statingthattheyhavebeenworkingonstrategicalternativesoverthepastseveralmonths.On24March2008,SteelPartnets,ina13-DfilingwiththeSEC,discloseda9.4%stakeinConsecoInc.

Expecteddeal GreyWolfInc


PrecisionDrillingTrust(PDS)

UBS(T) 1,508 GreyWolf,Incwouldhaverecentlyopeneditsdataroomtopotentialbuyers.Sincethen,thecompanyhasreceivedsomeindicationsofinterest,withvariousbuyersalreadytablingnon-bindingoffers.

Expecteddeal AsystTechnologiesInc

TMT AquestSystemsCorp;orTheGoresGroup,LLC

MerrillLynch(T)

228 AsystTechnologiesInc.announcedthattheCompanyreceivedanunsolicitedletterfromAquestSystemsCorp.,California-basedmakerofsemiconductormanufacturingautomationequipment,expressinganinterestinexploringapotentialacquisitionofAsystfor$6.50incashpershare.Consistentwithitsfiduciaryduties,Asyst’sBoardofDirectorsisreviewingtheexpressionofinterestinconsultationwithitsfinancialandlegaladvisors.


NorthAmerica


Leaguetables

value

YTD 31-Jul- 2008

House Value ($m)

Deal count

1 GoldmanSachs 293,794 88

2 LehmanBrothers 229,238 46

3 Citigroup 220,238 50

4 JPMorgan 217,075 74

5 DeutscheBank 159,196 36

6 CreditSuisse 147,874 61

7 MorganStanley 143,266 68

8 CenterviewPartners 109,926 4

9 MerrillLynch 97,160 60

10 UBS 93,990 59

11 BancofAmericaSecurities 44,591 29

12 ABNAMRO 44,237 17

13 EvercorePartners 43,400 10

14 WachoviaCorporation 40,124 27

15 WilliamBlair&Company 36,277 25

16 Lazard 35,874 46

17 RoyalBankofScotlandGroup 30,163 2

18 ScotiaCapital 29,765 17

19 RBCCapitalMarkets 27,975 25

20 BNPParibas 26,177 3

Source:mergermarket

volume

Thefinancialadviserleaguetablesbyvalueandvolumehavebeenrunfrom01January2008to31July2008andexcludelapsedandwithdrawndeals.Thetablescoverallsectorsandarebasedonthegeographyofeitherthetarget,bidderorsellerbeingUSAandCanada

YTD 31-Jul- 2008

House Value ($m)

Deal count


2 JPMorgan 217,075 74


4 HoulihanLokey 8,875 62



7 UBS 93,990 59



10 Lazard 35,874 46

11 Jefferies&Company 10,407 43



14 Rothschild 11,498 28

15 WachoviaCorporation 40,124 27

16 WilliamBlair&Company 36,277 25

17 RBCCapitalMarkets 27,975 25

18 MacquarieGroup 4,324 23

19 CIBCWorldMarkets 24,548 22

20 KPMG 1,913 21

Source:mergermarket

Top 20 financial advisers

value

YTD 31-Jul- 2008

House Value ($m)

Deal count

1 GibsonDunn&Crutcher 172,628 42

2 McCarthyTetrault 135,125 35

3 SkaddenArpsSlateMeagher&Flom 123,189 70

4 Hunton&Williams 115,141 15

5 SimpsonThacher&Bartlett 108,501 43

6 SutherlandAsbill&Brennan 107,916 4

7 Latham&Watkins 99,003 91

8 ClearyGottliebSteen&Hamilton 88,413 43

9 WeilGotshal&Manges 84,651 53

10 PaulWeissRifkindWharton&Garrison 74,786 30

11 WachtellLiptonRosen&Katz 69,048 21

12 Debevoise&Plimpton 62,135 20

13 Sullivan&Cromwell 60,943 37

14 Dewey&LeBoeuf 54,269 46

15 CravathSwaine&Moore 52,966 24

16 StikemanElliott 37,378 36

17 Morrison&Foerster 37,175 26

18 JonesDay 36,906 118

19 DavisPolk&Wardwell 34,984 23

20 Ropes&Gray 34,784 21

Source:mergermarket

volume


YTD 31-Jul- 2008

House Value ($m)

Deal count

1 JonesDay 36,906 118


3 Kirkland&Ellis 25,380 82

4 DLAPiper 27,348 73



7 O'Melveny&Myers 20,320 48




11 Blake,Cassels&Graydon 15,730 43

12 WilsonSonsiniGoodrich&Rosati 5,095 43


14 Hogan&Hartson 18,521 40

15 MorganLewis&Bockius 3,599 38


17 StikemanElliott 37,378 36


19 CliffordChance 23,782 35

20 Baker&McKenzie 14,516 35

Source:mergermarket

Top 20 legal advisers

NorthAmerica


Leaguetables

value

YTD 31-Jul- 2008

House Value ($m)

Deal count

1 TheWhitehallFunds 5,443 1

2 TheCarlyleGroup 5,175 9

3 FirstReserve 4,574 6

4= AvistaCapitalPartners 4,100 1

4= NordicCapital 4,100 1

6 TPG 3,920 6

7 Hellman&Friedman 3,092 3

8 ApaxPartners 3,060 2

9 WarburgPincus 2,412 5

10 MatlinPattersonGlobalAdvisers 2,315 2

11 BainCapital 1,836 2

12= GroveInternationalPartners 1,797 1

12= JCFlowers&Co 1,797 1

14= MadisonDearbornPartners 1,715 1

14= TAAssociates 1,715 1

Source:mergermarket

volume


YTD 31-Jul- 2008

House Value ($m)

Deal count

1 TheCarlyleGroup 5,175 9

2 SunCapitalPartners 977 8

3 GSCapitalPartners 759 8

4 FirstReserve 4,574 6

5 TPG 3,920 6

6 TheRiversideCompany 252 6

7 WarburgPincus 2,412 5

8 H.I.G.Capital 121 5

9 AudaxPrivateEquityGroup - 5

10 OneEquityPartners 506 4

11 FalconheadCapital - 4

12 Hellman&Friedman 3,092 3

13 PlatinumEquity 777 3

14 LehmanBrothersPrivateEquity 516 3

15 KRGCapitalPartners 450 3

Source:mergermarket

Activity table of private equity firms on North American buyouts

value

YTD 31-Jul- 2008

House Value ($m)

Deal count

1= GSCapitalPartners 28,100 1

1= TPG 28,100 1

3= MSDCapital 1,710 1

3= PerryCapital 1,710 1

5 OdysseyInvestmentPartners 1,438 1

6 WarburgPus 1,235 2

7 CCMPCapitalAdvisers 1,123 1

8 PlatinumEquity 1,093 1

9 Welsh,Carson,Anderson&Stowe 1,052 2

10 HarbingerCapitalPartners 1,005 1

11 OntarioTeachersPensionPlan 867 1

12 MontaguPrivateEquity 805 1

13 AdamsStreetPartners 765 2

14 GoldenGateCapital 721 2

15 FranciscoPartners 720 3

Source:mergermarket

volume


YTD 31-Jul- 2008

House Value ($m)

Deal count

1 AmericanCapitalStrategies 650 8

2 AccelPartners 493 5

3 IntelCapital 7 4

4 FranciscoPartners 720 3

5 RedpointVentures 640 3

6 CharlesRiverVentures 203 3

7 NewburyVentures 127 3

8 TridentCapital 100 3

9 KendaCapital 92 3

10 VengrowthCapitalPartners 13 3

11 WarburgPus 1,235 2

12 Welsh,Carson,Anderson&Stowe 1,052 2

13 AdamsStreetPartners 765 2

14 GoldenGateCapital 721 2

15 TenaskaCapitalManagement 668 2

Source:mergermarket

Activity table of private equity firms on North American exits

NorthAmerica


Trendgraphs

North American M&A quarterly trend

value volume

Movingaveragetrendline

0

100,000

200,000

300,000

400,000

500,000

600,000

700,000

Q32008*

Q22008

Q12008

Q4 2007

Q3 2007

Q2 2007

Q12007

Q4 2006

Q32006

Q22006

Q12006

Q42005

Q32005

Q22005

Q1 2005

Q4 2004

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Q42003

Q32003

Q22003

Q12003

valu

e ($

m)

0

200

400

600

800

1000

1200

1400

1600

Q3 2008*

Q2 2008

Q12008

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Q32007

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Q22005

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Q42004

Q32004

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Q12004

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Q32003

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Q1 2003

num

ber

of d

eals

North American M&A quarterly private equity trend

value volume

0

50,000

100,000

150,000

200,000

250,000

300,000

Q3 2008*

Q2 2008

Q1 2008

Q4 2007

Q3 2007

Q2 2007

Q12007

Q42006

Q32006

Q2 2006

Q12006

Q42005

Q32005

Q2 2005

Q1 2005

Q42004

Q3 2004

Q22004

Q12004

Q4 2003

Q32003

Q2 2003

Q12003

valu

e ($

m)

North Americanbuyouts

North Americanexits

0

50

100

150

200

250

300

Q32008*

Q22008

Q1 2008

Q42007

Q32007

Q22007

Q12007

Q4 2006

Q32006

Q22006

Q12006

Q42005

Q32005

Q22005

Q12005

Q4 2004

Q32004

Q22004

Q12004

Q42003

Q32003

Q22003

Q12003

num

ber

of d

eals

North Americanbuyouts

North Americanexits

NorthAmerica


Trendgraphs

North American M&A annual trends

value volume

0

200

400

600

800

1000

1200

1400

1600

1800

2008YTD20072006200520042003

valu

e ($

bn)

All North American M&A

North American buyouts

North American exits

0

1000

2000

3000

4000

5000

6000

2008YTDY2007Y2006Y2005Y2004Y2003

num

ber

of d

eals

All North American M&A

North American buyouts

North American exits

North American M&A Sector Breakdown YTD 2008

value volume

Industrials & Chemicals

TMT

Business services

Energy, Mining & Utilites

Consumer

Financial services

Pharma, Medical & Biotech

Construction

Leisure

Transport

Defence

Agriculture

13.2%

8.4%

11.1%

1%

7.6%

1.7% 0.3%0.9%

19.3%

18.6%

16.5%

1.3%

Industrials and Chemicals

TMT

Business services

Consumer

Energy/Mining/Utilites

Financial services

Pharma/Medical/Biotech

Construction

Leisure

Transport

Defence

Agriculture

11.4%

16.9%

10.2%

9.2%

1.5%

9%

0.3%

20.2%

14.5%

3.2%2.9%

0.7%

NorthAmerica


Trendgraphs

North American M&A deal size breakdown

value volume

0

200

400

600

800

1000

valu

e ($

bn)

> $501m

$251m - $500m

$101m - $250m

$15m - $100m

$5m - $14.9m

H1 2003

H2 2003

H1 2004

H2 2004

H1 2005

H2 2005

H1 2006

H22007

H1 2007

H2 2006

H12008

0

200

400

600

800

1000

1200

1400

1600

1800

2000

2200

2400

2600

2800

num

ber

of d

eals

> $501m

$251m - $500m

$101m - $250m

$15m - $100m

$5m - $14.9m

Value not disclosed

H1 2003

H2 2003

H1 2004

H2 2004

H1 2005

H2 2005

H1 2006

H2 2007

H1 2007

H2 2006

H12008

NorthAmerica


Mid-marketdeals

Top 15 North American announced mid market deals for July 2008 ($10mto$250m)Announced Status Target company Sector Bidder company Seller company Exit multiples (x) Bid premia

1-day beforeDeal value($m)

Revenue EBITDA P/E

31/07/2008 P SignalHoldingsLLC BusinessServices

AssurantInc TridentIILP 0.8 - 250

22/07/2008 P QGXLtd Energy,Mining&Utilities

KerryHoldingsLimited;andMCSHoldingLLC

MongoliaHoldingsCorp

453.1 (loss) (loss) 11.1% 245

01/07/2008 P UTStarcomInc(PersonalCommunicationsDivision)

TMT AIGVantageCapital UTStarcomInc - 240

17/07/2008 C NorthstarExplorationandProductionInc


DynamicOffshoreResourcesLLC

- 235

22/07/2008 P LightTowerWirelessLLC

TMT SBACommunicationsCorporation

LightTowerLLC - 224

04/07/2008 P CorderoEnergyInc Energy,Mining&Utilities

EmberResourcesInc

4.2 6.2 66.1 17.7% 224

31/07/2008 P FirstAllmericaFinancialLifeInsuranceCompany

FinancialServices

CommonwealthAnnuityandLifeInsuranceCompany

TheHanoverInsuranceGroup

n/a n/a - 220

08/07/2008 P Stockamp&AssociatesInc

BusinessServices

HuronConsultingGroupInc

2.3 - 219

01/07/2008 C WhitingCleanEnergyPowerPlant


BPAlternativeEnergyInc

NiSourceInc - 210

28/07/2008 NationalDefaultExchangeLP

BusinessServices

AmericanProcessingCompanyLLC(APC)

NDExSBSInvestmentILP;THP/NDExAIVHoldingsLP;andTrinityHuntPartnersIIILP

- 209

24/07/2008 P ThekenDiscLLC;ThekenSpineLLC;andThericsLLC


IntegraLifeSciencesHoldingsCorporation

Theken - 200

30/07/2008 P VoltInformationSciences(directorysystems&servicesandpublishingoperations)

TMT YellowPagesIncomeFund

VoltInformationSciencesInc

2.6 - 178

09/07/2008 P StrataLightCommunicationsInc

TMT OpnextInc - 172

14/07/2008 P FluidPowerResource(distributionbusinesses)

BusinessServices

AppliedIndustrialTechnologiesInc

FluidPowerResourceLLC

0.7 - 169

21/07/2008 P BarnettShaleProperties(undisclosedstake)


WilliamsCompaniesInc

AspectAbundantShaleLP

- 166

Source:mergermarket

NorthAmerica


North American M&A quarterly mid-market trend

value volume

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

aQ32008*

Q2 2008

Q12008

Q4 2007

Q32007

Q2 2007

Q12007

Q4 2006

Q32006

Q2 2006

Q12006

Q4 2005

Q3 2005

Q2 2005

Q1 2005

Q4 2004

Q3 2004

Q2 2004

Q12004

Q42003

Q32003

Q22003

Q12003

valu

e ($

m)

0

100

200

300

400

500

600

Q3 2008*

Q2 2008

Q1 2008

Q42007

Q32007

Q22007

Q12007

Q42006

Q3 2006

Q2 2006

Q12006

Q4 2005

Q32005

Q2 2005

Q1 2005

Q4 2004

Q3 2004

Q2 2004

Q12004

Q42003

Q32003

Q2 2003

Q1 2003

num

ber

of d

eals


Mid-marketdeals

NorthAmerica


Mid-marketleaguetables

YTD 31-Jul- 2008

House Value ($m)

Deal count

Value:

1 JPMorgan 4,022 32





6 Lazard 2,210 21


8 UBS 2,133 15





13 PiperJaffray&Co 1,316 16

14 Deloitte 1,301 10


Volume:

1 JPMorgan 4,022 32




5 Lazard 2,210 21



8 PiperJaffray&Co 1,316 16

9 UBS 2,133 15



12 KPMGCorpFin 1,026 14




Source:mergermarket


Top 15 mid-market financial advisers – North America($10mto$250m)

YTD 31-Jul- 2008

House Value ($m)

Deal count

Value:


2 JonesDay 3,743 38



5 DLAPiper 2,947 33




9 GoodwinProcter 2,205 19

10 Vinson&Elkins 2,122 17






Volume:


2 JonesDay 3,743 38


4 DLAPiper 2,947 33








12 GoodwinProcter 2,205 19



15 Hogan&Hartson 1,531 18

Source:mergermarket


Top 15 mid-market legal advisers – North America($10mto$250m)


Latin America

Consolidation of the Brazilian residential real estate development industry• CyrelaBrazilRealty,theBrazilbasedcompanyengaged

inthedevelopment,lease,constructionandsaleof

residentialandcommercialrealestatepropertieshas

signedaMemorandumofUnderstandingtobuyits

competitorAgraEmpreendimentosImobiliarios,for

approximatelyBRL1.5bn($934m).

• Thetransactionisthefirstoflargesizeintheexpected

waveofconsolidationoftheBrazilianresidentialreal

estatedevelopmentindustry,withtheconclusionofthe

takeover,thecapitalofCyrelawillbeincreasedwiththe

newsharesissuedtobegiventoshareholdersofAgra.

Cyrelahasoffered0.425commonsharesperAEshare.

BasedonCB’sclosingstockpriceofBRL22.45($13.928)

on20June2008,thelastfulltradingdaypriortothe

announcement,eachAEsharewasvaluedat€9.541

($5.919).

• TheacquisitionwillconsolidatetheleadershipofCyrela

withthelaunchingofnewrealestatedevelopments

forecasttoreachaworthofaroundBRL10bn($6.3bn)

for2008.Theagreementissubjecttocustomaryauditing

ofaccountsofthesellerandtheapprovalatspecial

shareholdermeetings.BancodeInvestimentoCredit

SuissewasthefinancialadvisertoAgraandGoldman

SachsdoBrasilBancoMultiploadvisedCyrela.

• Agrahasbeenoperatinginrealestatedevelopments

inBrazilformorethan10years,withatrackrecordof

developmentof40realestateprojects.Agrareportsa

landbankwithanapproximateproprietarypotentialVGV

ofBRL11bninMarch2008,ofwhich44%islocatedin

thestateofSaoPauloand40%intheNortheastregion.

Agrahasfocusedonprojectsforthemiddleandupper

middleincomeclasses,operatinginthecitiesofSao

Paulo,Salvador,RiodeJaneiroandRecife,aswellas

othercitiesofthestateofSaoPaulo.

Venezuela to Nationalize Sidor• VenezuelanPresidentHugoChavezisexpectedtomeet

TechintpresidentPaoloRoccatoreachanagreement

overSidor,despitethenegotiationsdeadlineexpiring

on30June2008.TheArgentineconglomerateowns

a60%stakeinSidor,whichisoneofLatinAmerica’s

biggeststeelcompanieswithnearly15,000workersand

productionlastyearof4.3mtonesofliquidsteel.

• ThediscussioncontinuesbetweentheVenezuelan

governmentandsteelmakerSidor,overtheappropriate

priceforTernium’s60%stakeinthecompany.

Venezuela’snationalassemblyannouncedthe

nationalizationofSidor,ownedbyTernium,thesteelarm

ofArgentineindustrialgroupTechint,onApril30.Since

then,negotiationshavebeenongoingwithlittleprogress.

Terniumwantstomaintainaminorityshareinthe

companyandisrequestingnolessthan$2.4bnfora50%

stake.PresidentHugoChavezhasbelievesthe$2.4bn

isanunacceptableprice,andhassubsequentlyoffered

$1.2bnincashandtheremainingportioninproducts.

• VenezuelagovernmentwilltransformSidorintoasocialist

companybyraisingsalariesandimprovingbenefitsfor

thesteelmaker’s4,500employees,alsothegovernments

plantoreduceSidor’sexportsandincreasesteelsupplies

fordomesticconsumption.


Dealofthemonth

Target: AmnetTelecommunicationsHoldingLimited Announced: 27July2008

Bidder: MillicomInternationalCellularSA Deal value: $510m

Vendor: - Deal nature: Recommended;Transatlantic

• MillicomInternationalCellularS.A.,thelistedLuxembourg

basedglobaltelecommunicationscompany,hasagreed

toacquireAmnetTelecommunicationsHoldingLimited,

theCostaRicabasedproviderofbroadbandandcable

televisionservices,foranassumedcashconsiderationof

$510m

• In2007,Amnethadrevenuesof$143m.TheCentral

Americanmarketaccountsfor43%oftherevenuefor

Millicom,andwiththeacquisition,Millicomexpectsto

expanditsservicesandpositioninitscorebroadbandand

cabletelevisionmarket.Alsotheacquisitioncomesin

responsetogrowingdemandforbroadbandservicesin

theregion.ThetakeoverofAmnetgivesitanadditional

high-ARPUcustomerbaseaswellasanIPnetworkto

supportitslaunchof3Gservicesthisyear.Thedealis

subjecttocustomaryapprovalsandisexpectedtoclose

withinthreemonthsfromtheannouncement

Latin America

Advisers

Target/seller Bidder

Financial CreditSuisse Financial MorganStanleyDresdnerKleinwort

Legal Dewey&LeBoeuf Legal TorysBarros&ErrazurizAbogados

PR - PR -

Mergermarket/dealReporter Intelligence

11-Jan-08 Premiere:Amnetsaleexpectedtocloseimminently;TelefonicaandSlimamongfoursuitors,source

Exit multiples – Y/E 31/12/2007

Multiples Value (€m)

Revenue 3.6 143

EBITDA 9.1 56

EBIT - n/av

Earnings - n/av


Top 15 Latin American announced deals for YTD 31 July 2008Announced Status Target company Sector Bidder company Seller company Exit multiples (x) Bid premia



26-Mar-08 P BolsadeMercadoriaseFuturos

FinancialServices

BovespaHoldingSA - 7,320

31-Mar-08 P IronXMineracaoSA Energy,Mining&Utilities

AngloAmericanParticipacoesemMineracaoLtda

- 5,519

25-Apr-08 P BrasilTelecomParticipacoesSA(35.20%stake);andBrasilTelecomSA(18.08%stake)

TMT TelemarParticipacoesSA

11.9% 4,679

25-Apr-08 P BrasilTelecomParticipacoesSA(22.28%stake)

TMT TelemarParticipacoesSA

1.8 8.9 42.7 44.8% 3,535

4-Mar-08 P AnadarkoPetroleumCorporation(50%stake);andAnadarkoPetroleumCorporation(25%stake)


StatoilHydroASA AnadarkoPetroleumCorporation

- 1,800

5-Mar-08 C ArcelorMittalInoxBrasilSA(42.66%stake)


ArcelorMittalNV 1.6 6.0 9.0 2.2% 1,657

12-Feb-08 C SegurosIngSADeCV

FinancialServices

AXASA INGGroupNV n/a n/a - 1,500

5-Mar-08 C BancoBradescoSA(2.50%stake)

FinancialServices

CidadedeDeusCompanhiaComercialdeParticipacoes;andFundacaoBradesco

BancoBilbaoVizcayaArgentariaSA

n/a n/a 14.7 1.3% 1,485

24-Apr-08 P ElTesoro(30%stake);andEsperanza(miningproject30%stake)


MarubeniCorporation

Antofagastaplc - 1,310

17-Jun-08 C SociedadAustraldeElectricidadSA


MorganStanleyInfrastructure;andOntarioTeachersPensionPlan

PublicServiceEnterpriseGroup

- 1,287

24-Apr-08 P EssoBrasileiradePetroleoLimitada

Consumer CosanSAIndustriaeComercio

ExxonMobilCorporation

- 989

3-Jun-08 C SociedadConcesionariaAutopistadeAconcaguaSA;andSociedadConcesionariaAutopistadeItataSA

BusinessServices

GlobalViaInfraestructuras

BancoNacionalDeComercioExterior

- 958

2-Feb-08 C GlobalMineracaoLtda;MineracaoJ.MendesLtda;andSiderurgicaOestedeMinasLtda


UsinasSiderurgicasdeMinasGerais

- 925

17-Mar-08 C CaracaraProspect(70%stake)


CEPSAColombiaSA

HupecolCaracaraLLC

- 920

22-Feb-08 C CorporacionAcerosDM


GrupoSimecSAdeCV

- 850


Topdeals

CEE and CISLatin America


Topdeals

Latin America

Top 5 Latin American announced deals of the month (July 2008)Announced Status Target company Sector Bidder company Seller company Exit multiples (x) Bid premia



22-Jul-08 P Amnet TelecommunicationsHoldingLimited

TMT MillicomInternationalCellularSA

3.6 9.1 - 510

3-Jul-08 P SaoMarcosEmpreendimentosImobiliariosLtda

FinancialServices

Ancar EmpreendimentosComerciais

MarinhoFamily n/a n/a - 435

21-Jul-08 C HipotecariaSuCasitaSADECV(60%stake)

FinancialServices

CajaMadrid n/a n/a - 342

11-Jul-08 P HidropowerEnergiaSA;andTupanEnergiaEletricaSA


GamaParticipacoesLtda

- 195

8-Jul-08 P KappaEnergyHoldingsLtd


PacificRubialesEnergyCorp

- 168


Top 5 Chile announced deals for YTD 31 July 2008Announced Status Target

companySector Target

financial adviser

Target legal adviser

Bidder company Bidder financial adviser

Bidder legal adviser

Seller company

Deal value ($m)

24-Apr-08 P ElTesoro(30%stake);andEsperanza(30%stake)


Violy&Co FreshfieldsBruckhausDeringer

MarubeniCorporation

JPMorgan SkaddenArpsSlateMeagher&Flom

Antofagastaplc

1,310

17-Jun-08 C SociedadAustraldeElectricidadSA


Vinson&Elkins

MorganStanleyInfrastructure;andOntarioTeachersPensionPlan

DresdnerKleinwort;MorganStanley

Barros&ErrazurizAbogados;Torys

PublicServiceEnterpriseGroup

1,287

3-Jun-08 C SociedadConcesionariaAutopistadeAconcaguaSA;andSociedadConcesionariaAutopistadeItataSA

BusinessServices

GlobalViaInfraestructuras

Citigroup BancoNacionalDeComercioExteriorSNC

958

21-Feb-08 P MadecoSA(Cablebusiness)

TMT NexansSA EstudioEchecoparGarcia

MadecoSA 715

29-Apr-08 C SociedadproductoresdeLecheSA(42.6%stake)

Consumer FonterraCo-operativeGroupLtd

FundacionIsabelAninat

202



Topdeals

Top 5 Andean Community announced deals for YTD 31 July 2008Announced Status Target

companySector Target

financial adviser




Seller company

Deal value ($m)

17-Mar-08 C CaracaraProspect(70%stake)


CEPSAColombiaSA

BakerBotts HupecolCaracaraLLC

920

27-Mar-08 C CompaniaMineraMilpoSAA(26.12%stake)


VotorantimMetaisLtd

JPMorgan 422

13-May-08 C ScotiabankPeruSAA(20%stake)

FinancialServices

WeilGotshal&Manges

BankofNovaScotia

IntesaSanpaoloSpA

200

8-Jul-08 P KappaEnergyHoldingsLtd


Citigroup MayerBrown


GMPSecurities

168

2-May-08 C CryogasSA Industrials&Chemicals

InduraSA TheLindeGroup

139

C=Completed;P=Pending;L=LapsedFullmember’sAndeancommunity:Bolivia,Columbia,Ecuador,Peru.

Source:mergermarket

Latin America


Expecteddeals



Seller company

Financial adviser

Market cap/ est. value

($m)

Comments

RumouredTakeoverTarget

Cia.ValedoRioDoce


15,000 Valedisclosedthaton26May2008,itsseniormanagementapprovedaproposalofapublicofferingofcommonsharesandpreferredclassAshares,withamaximumvalueof$15bn.Itisrumoredthatthiscapitalhasbeenraisedforthepurposeofmakingacquisitions.


HupecolLLC Energy,Mining&Utilities


HoustonAmerican EnergyCorporation

173 PacificRubialesEnergyCorp,aColombianE&Pgroup,expectstoacquireoilfieldoperatorHupecol.

Expecteddeal

Alitalia Transportation Multi-LongCorp ItalianGovernments

1,500 Multi-LongCorp,theBrazilianrestructuringcompanyhasoffered€1billion(US$1.5billion)forItaly'stroubledAlitaliacarrier.ThecompanyhasproposedthepurchasetoItaly'sgovernmentandtoEuropeanregulators.

Expecteddeal

Entel TMT BolivianGovernment

Telecom - Bolivia'sPresidentEvoMoraleshasdecreedthenationalizationofthecompany'sleadingoperatorEntel,aunitofTelecomItalia.ThegovernmentsaysTelecomItaliahas60daystocometoanagreementwithitoverthevalueofthecompany'sshares.

Expecteddeal

AerolineasArgentinas

Transportation Buquebus GrupoMarsans

- GrupoMarsans,theprivateSpanishtravelgroup,wouldselltheentiretyofitsstakeinAerolineasArgentinasifitendsupwithlessthan52%.MarsanswouldinthemediumtermsellitsstakeintheArgentinianairline,ifcurrentnegotiationswiththeArgentinegovernmentmeantheSpanishcompany'sstakeisdilutedtolessthan52%.

Expecteddeal

GrupoInbursa FinancialServices

CriteriaLaCaixa CarlosSlim(privateinvestor)

2,300 GrupoFinancieroInbursa,thelistedMexico-basedfinancialservicesgroup,hasagreedtosellinprinciplea20%staketoSpain-basedbankinggroupLaCaixa,accordingtoanannouncementfiledtodaywiththeMexicanStockExchange(BMV).

Source:mergermarket

Latin America


Leaguetables

value

YTD 31- Jul-2008

House Value ($m)

Deal count




4 JPMorgan 13,293 10



7 UBS 9,505 11

8 BancoBradescoBBI 8,887 4

9 BancoItauHoldingFinanceira 8,214 2


11 ABNAMRO 3,692 5


13 DresdnerKleinwort 1,384 2

14 BNPParibas 958 1

15 HSBCBank 925 2

Source:mergermarket

volume

Thefinancialadviserleaguetablesbyvalueandvolumehavebeenrunfrom01January2008to31July2008andexcludelapsedandwithdrawndeals.Thetablescoverallsectorsandarebasedonthegeographyofeitherthetarget,bidderorsellerbeingLatinAmerica

YTD 31- Jul-2008

House Value ($m)

Deal count

1 UBS 9,505 11





6 MerrillLynch 870 6


8 ABNAMRO 3,692 5


10 BancoBradescoBBI 8,887 4

11 PricewaterhouseCoopersCorpFin 32 4


13 Rabobank 710 3

14 KPMGCorpFin - 3

15 BancoItauHoldingFinanceira 8,214 2

Source:mergermarket

Top 15 financial advisers - Latin America

value

YTD 31- Jul-2008

House Value ($m)

Deal count

1 Shearman&Sterling 11,291 5

2 White&Case 10,703 4



5= MachadoMeyerSendaczeOpice 6,199 2

5= MattosFilho,VeigaFilho,MarreyJr.eQuirogaAdvogados

6,199 2

7 Linklaters 5,633 3


9= DavisPolk&Wardwell 5,519 1

9= GibsonDunn&Crutcher 5,519 1

11 BakerBotts 3,520 2


13= Khaitan&Co 2,600 1

13= MilbankTweedHadley&McCloy 2,600 1

15 TozziniFreireTeixeiraESilvaAdvogado 2,188 4

Source:mergermarket

volume

Thelegaladviserleaguetablesbyvalueandvolumehavebeenrunfrom01January2008to31July2008andincludelapsedandwithdrawndeals.Thetablescoverallsectorsandarebasedonthegeographyofeitherthetarget,bidderorsellerbeingLatinAmerica

Top 15 legal advisers - Latin America

Latin America

YTD 31- Jul-2008

House Value ($m)

Deal count





5 TozziniFreireTeixeiraESilvaAdvogado 2,188 4

6 Baker&McKenzie 61 4


8 Vinson&Elkins 1,910 3

9 Barbosa,Muessnich&Aragao 1,854 3

10 FrankGaliciayRobles 1,154 3

11 EstudioEchecoparGarcia 811 3

12 PinheiroNetoAdvogados 670 3



15 MachadoMeyerSendaczeOpice 6,199 2

Source:mergermarket


Latin America

Leaguetables

value

YTD 31- Jul-2008

House Value ($m)

Deal count

1 OntarioTeachersPensionPlan 1,287 1

2 GPInvestments 335 2

3 NexxusCapital 200 1

4 AxxonGroup 184 1

5 EtonParkCapitalManagement 60 1

Source:mergermarket

volume

TheprivateequitybuyoutactivitytablesbyvalueandvolumearebasedonprivateequityfirmsadvisingthebidderonbuyoutdealswherethedominantgeographyofthetargetcompanyisLatinAmericaThetablesbyvalueandvolumehavebeenrunfrom01January2008to31July2008andexcludelapsedandwithdrawndeals

YTD 31- Jul-2008

House Value ($m)

Deal count

1 GPInvestments 335 2

2 OntarioTeachersPensionPlan 1287 1

3 NexxusCapital 200 1

4 AxxonGroup 184 1

5 EtonParkCapitalManagement 60 1

Source:mergermarket

Activity table of private equity firms on Latin American buyouts


Trendgraphs

Latin American M&A quarterly trends

value volume


0

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e $m

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Latin American M&A quarterly private equity trends

value volume

0

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valu

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CEE and CIS buyouts

CEE and CIS exits

0

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CEE and CIS buyouts

CEE and CIS exits

Latin America


Trendgraphs

Latin American M&A annual trends

value volume

0

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2008 YTD20072006200520042003

valu

e $b

n

All CEE and CIS M&A

CEE and CIS buyouts

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0

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num

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All CEE and CIS M&A

CEE and CIS buyouts

CEE and CIS exits

Latin American M&A sector breakdown YTD 2008

value volume


Consumer

Energy, Mining & Utilities

Financial services

Business services

TMT

Construction

Agriculture


Transport

Leisure

29.2%

17.9%

0.1%3.3%

0.5% 10.6%

7.1%

3.2%

26.2%

0.4%1.4%

13.5%

17.4%

5.2%

11.7%

3.5%

3.5%

3% 0.9%3%

19.1%

19.1%


Consumer


Financial services

Business services

TMT

Construction

Agriculture


Transport

Leisure

Latin America


Mid-marketdeals

Latin America

Latin American M&A quarterly mid-market trend

value volume

0

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Q3 2008*

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of d

eals



Mid-marketdeals

Top 10 Latin American announced mid market deals for YTD 31 July 2008($10mto$250m)

Announced Status Target company Sector Target/seller financial adviser

Target/seller legal adviser



Seller company Deal Value(€m)

7-Feb-08 C RodoviadasCataratas

Transportation PrimavEcorodovias SidecoAmericana SA

242

29-May-08 P UniversidadTecnologicadeMexico

BusinessServices

LaureateEducationInc 230

29-Apr-08 C SociedadproductoresdeLecheSA(42.6%stake)

Consumer Rothschild FonterraCo-operativeGroupLtd

FundacionIsabelAninat

202

13-May-08 C ScotiabankPeruSAA(20%stake)

FinancialServices

WeilGotshal&Manges

BankofNovaScotia IntesaSanpaoloSpA

200

28-Apr-08 C InstitutoHarmonHallDeMexicoSA(controllingstake)

BusinessServices

Galicia&Robles

NexxusCapitalSC 200

7-Apr-08 P AnadarkoVenezuelaCompany


FulbrightandJaworski

PetroFalconCorporation AnadarkoPetroleumCorporation

200

11-Jul-08 P HidropowerEnergiaSA;andTupanEnergiaEletricaSA


GamaParticipacoesLtda 195

11-Jun-08 P GuerraSA Industrials&Chemicals

ZulmarNevesAdvocacia

AxxonGroup;andDeutscheInvestitionsundEntwicklungsgesellschaftmbH

Neves,Soares&Battendieri;TozziniFreire TeixeiraESilvaAdvogado

184

14-Apr-08 P LaticiniosMorrinhosIndustriaeComercio

Consumer GPInvestmentsLimited 182

8-Feb-08 P Accor(50%stake)

BusinessServices

CompassGroupplc TozziniFreire TeixeiraESilvaAdvogado

AccorSA 172


Latin America



YTD 31- Jul-2008

House Value ($m)

Deal count

Value:

1 Rothschild 432 2

2 UBS 360 3

3 Citigroup 249 2

4 ABNAMRO 192 2

5 CreditSuisseGroup 172 1

6 GMPSecurities 168 1

7 SingularPartners 167 2

8 M&AInternational 165 2

9 Pareto 154 1

10 CreditSuisse 148 1

Volume:

1 UBS 360 3

2 Rothschild 432 2

3 Citigroup 249 2

4 ABNAMRO 192 2

5 SingularPartners 167 2



8 CreditSuisseGroup 172 1

9 GMPSecurities 168 1

10 Pareto 154 1

Source:mergermarket

Thefinancialadviserleaguetablesbyvalueandvolumehavebeenrunfrom01January2008to31July2008andexcludelapsedandwithdrawndeals.Thetablescoverallsectorsandarebasedonthegeographyofeitherthetarget,bidderorsellerbeingLatinAmerica

Top 10 mid-market financial advisers – Latin America($10mto$250m)

YTD 31- Jul-2008

House Value ($m)

Deal count

Value:

1 TozziniFreireTeixeiraESilvaAdvogado 388 3

2= FulbrightandJaworski 200 1

2= Galicia&Robles 200 1

2= WeilGotshal&Manges 200 1

5= Neves,Soares&Battendieri 184 1

5= ZulmarNevesAdvocacia 184 1

7 MayerBrown 168 1

8 SchulteRoth&Zabel 147 1

9 UriaMenendez 142 2

10 Linklaters 114 2

Volume:

1 TozziniFreireTeixeiraESilvaAdvogado 388 3


3 Linklaters 114 2

4 PinheiroNetoAdvogados 105 2

5 EstudioEchecoparGarcia 96 2


7= FulbrightandJaworski 200 1

7= Galicia&Robles 200 1

7= WeilGotshal&Manges 200 1

10 Neves,Soares&Battendieri 184 1

Source:mergermarket

Thelegaladviserleaguetablesbyvalueandvolumehavebeenrunfrom01January2008to31July2008andincludelapsedandwithdrawndeals.Thetablescoverallsectorsandarebasedonthegeographyofeitherthetarget,bidderorsellerbeingLatinAmerica

Top 10 mid-market legal advisers – Latin America($10mto$250m)

Latin America


Asia-Pacific

Top 15 Asia-Pacific announced deals for YTD 31 July 2008Announced Status Target company Sector Bidder company Seller company Exit multiples (x) Bid premia



2-Jun-08 P China Netcom Group Corporation (Hong Kong) Limited

TMT China Unicom Ltd 2.6 4.9 15.3 31.2% 29,589

13-May-08 P St George Bank Ltd Financial Services

Westpac Banking Corporation

n/a n/a 16.4 29.6% 17,936

24-Jun-08 P Origin Energy Limited


BG Group Plc 3.0 15.2 40.5 -0.1% 15,756

11-Jul-08 P GE Consumer Finance Co Ltd

Financial Services

Shinsei Bank Limited

General Electric Company

n/a n/a - 5,452

02-Jun-08 P Wing Lung Bank Limited

Financial Services

China Merchants Bank Co Ltd

n/a n/a 26.5 6.2% 4,655

11-Jun-08 P Ranbaxy Laboratories Limited (60.62% stake)


Daiichi Sankyo Company Limited

6.3 30.4 59.8 31.4% 4,625

03-Mar-08 C The Korea Express Co Ltd (60% stake)

Transportation Asiana Airlines Inc; Daewoo Engineering and Construction Company Limited; and Kumho Asiana Group

6.0 111.0 37.0 70.1% 4,357

08-Jun-08 P Indosat Tbk PT (75.49% stake)

TMT Qatar Telecom QSC

Singapore Technologies Telemedia

3.0 5.9 19.5 30.0% 4,192

03-Mar-08 C Zinifex Ltd Energy, Mining & Utilities

Oxiana Limited 2.3 3.3 8.3 13.9% 3,817

14-Mar-08 C Tuas Power Limited Energy, Mining & Utilities

SinoSing Power Pte Ltd

Temasek Holdings Pte Ltd

2.1 13.9 26.2 - 3,103

26-Mar-08 P Bank Internasional Indonesia Tbk

Financial Services

Malayan Banking Berhad

Sorak Financial Holdings Pte Ltd

n/a n/a 60.4 22.5% 2,710

07-May-08 P Beijing Pengrun Property Co Ltd

Financial Services

Beijing Centergate Technologies (Holding) Co Ltd

Beijing Pengkang Technology Co Ltd; and Beijing Pengtai Investment Co Ltd

- 2,576

11-Mar-08 C Dyno Nobel Limited (87% stake)


Incitec Pivot Ltd 2.0 20.5 61.8 19.4% 2,468

29-Feb-08 C Centurion Bank of Punjab

Financial Services

HDFC Bank Ltd n/a n/a 75.6 3.7% 2,378

31-Jan-08 C Mizuho Securities Ltd (4.35% stake)

Financial Services

Mizuho Corporate Bank Ltd

n/a n/a - 2,350

C = Completed; P = Pending; L = Lapsed Source: mergermarket

Asia-Pacific


Asia-Pacific

Top 5 Asia-Pacific announced deals of the month (July 2008)Announced Status Target company Sector Bidder

companySeller company Exit multiples (x) Bid premia

1-day before

Deal value($m)Revenue EBITDA P/E

11-Jul-08 P GE Consumer Finance Co Ltd

Financial Services

Shinsei Bank Limited

General Electric Company

n/a n/a - 5,452

16-Jul-08 P Anhui Xinda Real Estate Co Ltd; Hainan Yuanshicun Development; Hefei Runxin Real Estate Development Co Ltd; Jiaxing Cinda Jianshe Real Estate Development Co Ltd; Jilin Xinda Jindu Property; Ningbo Xinda Zhongjian Property; Qingdao Xinda Rongchang Property Group Co Ltd; Shanghai Liren Investment Management Co Ltd; Shanghai Xinda Yintai Property Co Ltd; Taizhou Cinda Property Co Ltd; and Xinjiang Cinda Yintong Property Co Ltd

Financial Services

Beijing Tianqiao Beida Jade Bird Science & Technology Co Ltd

Cinda Investment Co Ltd; Hainan Jianxin Investment Management Co Ltd; Jiangxi Ganyue Expressway Co Ltd; Shenzhen Jianxin Investment Development Co Ltd; and Zhengyuan Investment Co Ltd

n/a n/a - 925

24-Jul-08 P Oki Semiconductor Company Limited (95% stake)

TMT Rohm Co Ltd Oki Electric Industry Co Ltd

- 795

23-Jul-08 P NIWS Co Ltd (dealer business); and NIWS Co HQ Ltd (dealer business)

TMT LAC Holdings Inc

NIWS Co Ltd; and NIWS Co HQ Ltd

- 784

14-Jul-08 C CJ Investment & Securities Company (75% stake)

Financial Services

Hyundai Heavy Industries Co Ltd

CJ Corporation - 700


Top deals


Asia-Pacific

value

YTD 31-Jul-2008

House Value ($m)

Deal count

1 JPMorgan 247,863 25


3 Morgan Stanley 235,442 24

4 UBS 232,356 31


6 Deutsche Bank 220,403 21

7 Goldman Sachs 220,040 22

8 Macquarie Group 218,142 29

9 Credit Suisse 213,581 20

10 Lazard 213,391 9

11 Merrill Lynch 208,666 26

12 Gresham Advisory Partners 207,617 8

13 ABN AMRO 196,819 12

14 BNP Paribas 196,622 14

15 HSBC Bank 193,095 5

Source: mergermarket

volume

The financial adviser league tables by value and volume have been run from 01 January 2008 to 31 July 2008 and exclude lapsed and withdrawn deals. The tables cover all sectors andare based on the geography of either the target, bidder or seller being Asia-Pacifc excluding Japan.

YTD 31-Jul-2008

House Value ($m)

Deal count

1 UBS 232,356 31


3 KPMG Corp Fin 2,909 29

4 PricewaterhouseCoopers Corp Fin 8,986 27


6 JPMorgan 247,863 25


8 CIMB Group 6,107 23



11 Ernst & Young 4,169 21

12 Citigroup 245,847 20


14 Lehman Brothers 60,984 16



Top 15 financial advisers – Asia-Pacific excl Japan

League tables

value

YTD 31-Jul-2008

House Value ($m)

Deal count


2 Sullivan & Cromwell 238,241 10

3 Skadden Arps Slate Meagher & Flom 232,450 13

4 Allen & Overy 223,869 12

5 Slaughter and May 220,412 4

6 Allens Arthur Robinson 218,445 24

7 Freehills 212,515 34

8 Lovells 197,709 7

9 Herbert Smith/Gleiss Lutz/Stibbe 196,639 10

10 Blake Dawson 194,159 26

11 Davies Ward Phillips & Vineberg 191,888 5

12 McCarthy Tetrault 190,573 2

13 Johnson Winter & Slattery 190,524 4

14 Cravath Swaine & Moore 190,344 1

15 Freshfields Bruckhaus Deringer 46,034 17


volume

YTD 31-Jul-2008

House Value ($m)

Deal count

1 Mallesons Stephen Jaques 38,395 43


3 Baker & McKenzie 4,385 31


5 Jones Day 8,051 26

6 DLA Piper 6,932 26


8 Allen & Gledhill 10,223 23

9 Deacons 7,909 23

10 Minter Ellison 2,862 23

11 Clifford Chance 26,602 22


13 White & Case 15,992 21

14 WongPartnership 5,657 18



Top 15 legal advisers – Asia-Pacific excl Japan

The legal adviser league tables by value and volume have been run from 01 January 2008 to 31 July 2008 and include lapsed and withdrawn deals. The tables cover all sectors andare based on the geography of either the target, bidder or seller being Asia-Pacifc excluding Japan.


Asia-Pacific

League tables

value

YTD 31-Jul-2008

House Value ($m)

Deal count

1 Alnair Private Equity Group 1,457 1

2 CVC Capital Partners 1,213 2

3= JAFCO 1,212 1

3= Next Capital Partners 1,212 1

5 Morgan Stanley Private Equity Asia 933 2

6 Shinhan Financial Group 833 1

7 H&Q Asia Pacific 796 2

8 The Carlyle Group 666 4

9 Providence Equity Partners 640 1

10 Kohlberg Kravis Roberts 611 2


volume

The Private Equity buyout activity tables by value and volume are based on private equity firms advising the bidder on buyout deals where the dominant geography of the target company is Asia-Pacific. The tables by value and volume have been run from 01 January 2008 to 31 July 2008 and exclude lapsed and withdrawn deals

YTD 31-Jul-2008

House Value ($m)

Deal count

1 The Carlyle Group 666 4

2 SBI Holdings 76 3


4 Ashmore Group 1,100 2

5 Morgan Stanley Private Equity Asia 933 2

6 H&Q Asia Pacific 796 2

7 Kohlberg Kravis Roberts 611 2

8 Primus Pacific Partners 452 2

9 Ironbridge Capital 448 2

10 Citigroup Venture Capital Equity Partners

421 2


Activity Table of private equity firms on Asia-Pacific buyouts

value

YTD 31-Jul-2008

House Value ($m)

Deal count

1 Temasek Holdings 7,886 3

2 Affinity Equity Partners 2,853 2

3 CCMP Capital Asia 780 1

4 JAFCO 484 2

5 CHAMP Private Equity 416 1

6 CVC Capital Partners 392 1

7 SAIF Partners 306 1

8 Nikko Principal Investments Japan 195 1

9 Kaleido Holdings 108 1

10 Phoenix Capital 103 3


volume

The Private Equity exit activity tables by value and volume are based on private equity firms advising the vendor on exit deals where the dominant geography of the target company is Asia-Pacific. The tables by value and volume have been run from 01 January 2008 to 31 July 2008 and exclude lapsed and withdrawn deals

YTD 31-Jul-2008

House Value ($m)

Deal count

1 Temasek Holdings 7,886 3

2 Phoenix Capital 103 3

3 Affinity Equity Partners 2,853 2

4 JAFCO 484 2

5 CCMP Capital Asia 780 1

6 CHAMP Private Equity 416 1

7 CVC Capital Partners 392 1

8 SAIF Partners 306 1

9 Nikko Principal Investments Japan 195 1

10 Kaleido Holdings 108 1


Activity table of private equity firms on Asia-Pacific exits


Asia-Pacific

Trend graphs

Asia-Pacific M&A quarterly trend

value volume

Moving average trend line

0

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Asia-Pacific M&A quarterly private equity trend

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90

Q32008*

Q22008

Q12008

Q42007

Q32007

Q22007

Q12007

Q42006

Q32006

Q22006

Q12006

Q42005

Q3 2005

Q22005

Q12005

Q42004

Q32004

Q22004

Q12004

Q4 2003

Q 2003

Q22003

Q1 2003

num

ber

of d

eals

Asia-Pacificbuyouts

Asia-Pacificexits


Asia-Pacific

Trend graphs

Asia-Pacific M&A annual trends

value volume

0

50

100

150

200

250

300

350

400

450

2008YTD20072006200520042003

valu

e ($

bn)

All Asia-Pacific M&A

Asia-Pacific buyouts

Asia-Pacific exits

0

500

1000

1500

2000

2500

3000

2008YTD20072006200520042003

num

ber

of d

eals

All Asia-Pacific M&A

Asia-Pacific buyouts

Asia-Pacific exits

Asia-Pacific M&A Sector Breakdown YTD 2008

value volume


Financial services


Consumer

TMT

Business services


Construction

Leisure

Transport

Agriculture

Defence

10.5%

21.4%

6.3%

29.3%

2.6%

1.9%

3.8%

0.3%0.4%

3.2%

18.5%

2%


Financial services


Consumer

TMT

Business services


Construction

Leisure

Transport

Agriculture

Defence

20.8%

13.4%

13.9%

12.8%

11.3%

5.3%

4.7%

9.8%

3.6%

0.1%3.3%

1%


Asia-Pacific

Trend graphs

Asia-Pacific M&A Geographic Breakdown YTD 2008

value volume

China

Japan

Australia

India

South Korea

Other

Hong Kong

Singapore

Malaysia

Taiwan

New Zealand

Thailand

16.9%

13.7%

0.3%

0.5%

15.3%

5.1%

24.2%6.3%

6.2%

8.1%

1.3%2%

Asia-Pacific M&A deal size breakdown

value volume

0

50

100

150

200

250

valu

e ($

bn)

> $501m

$251m - $500m

$101m - $250m

$15m - $100m

$5m - $14.9m

H1 2003

H2 2003

H1 2004

H2 2004

H12005

H2 2005

H22007

H1 2007

H2 2006

H1 2006

H12008

> $501m

$251m - $500m

$101m - $250m

$15m - $100m

$5m - $14.9m

Value not disclosed

0

300

600

900

1200

1500

num

ber

of d

eals

H1 2003

H22003

H1 2004

H2 2004

H1 2005

H2 2005

H22007

H1 2007

H2 2006

H1 2006

H12008

18.2%

24.5%

16.6%

8.5%

7%

6.3%

5%

4.6%

3.4%

1.4%2.6%

2%

China

Japan

Australia

India

South Korea

Other

Hong Kong

Singapore

Malaysia

Taiwan

New Zealand

Thailand


Asia-Pacific

Mid-market deals

Top 10 Asia-Pacific announced mid-market deals for YTD 31 July 2008 ($10m to $250m)Announced Status Target company Sector Bidder company Seller company Exit multiples (x) Bid premia



6-Feb-08 C Bharti Infratel Limited (2% stake)

TMT Kohlberg Kravis Roberts & Co

Bharti Airtel Limited - 250

23-Jan-08 C First Philippine Union Fenosa Inc (40% stake)


First Philippine Holdings Corporation

Union Fenosa SA - 250

14-Feb-08 C Sophia Power Company (23.40% stake)


FIM Limited Indiabulls Real Estate Ltd

- 249

16-Jun-08 P Anzon Energy Ltd Energy, Mining & Utilities

Roc Oil Company Limited

2.7 4.6 4.8 36.6% 246

25-Apr-08 C JapanTelecom Invoice Co Ltd (85.1% stake)

Business Services

Softbank Telecom Co Ltd

Invoice Inc 0.9 11.3 - 245

17-Mar-08 C The greenfield coal mine


Reliance Power Ltd

- 245

18-Jun-08 P Riken Vitamin Co Ltd (29.99% stake)


Kikkoman Corporation

SFCG Co Ltd 1.0 10.6 36.3 14.4% 241

27-Jun-08 P Valin ArcelorMittal Automotive Steel Ltd (33% stake)


ArcelorMittal; Hunan Valin Iron & Steel Group Co Ltd; and Hunan Valin Steel Tube & Wire Co Ltd

- 240

17-Mar-08 C ConnectEast Group (14.79% stake)

Transportortation John Holland Infrastructure Nominees Pty Ltd; and Thiess Infrastructure Nominees Pty Ltd

n/a (loss) (loss) -7.3% 240

10-Jun-08 P Vikram Ispat Industrials & Chemicals

Welspun Power and Steel Limited

Grasim Industries Ltd 1.0 - 239



Asia-Pacific

Mid-market deals

Asia-Pacific M&A quarterly mid-market trend

value volume

0

5,000

10,000

15,000

20,000

25,000

30,000

Q3 2008*

Q2 2008

Q1 2008

Q42007

Q3 2007

Q2 2007

Q1 2007

Q4 2006

Q3 2006

Q2 2006

Q1 2006

Q4 2005

Q3 2005

Q22005

Q12005

Q42004

Q3 2004

Q2 2004

Q1 2004

Q4 2003

Q3 2003

Q2 2003

Q12003

valu

e ($

m)

0

100

200

300

400

500

Q3 2008*

Q2 2008

Q1 2008

Q4 2007

Q3 2007

Q2 2007

Q1 2007

Q4 2006

Q3 2006

Q22006

Q12006

Q4 2005

Q3 2005

Q22005

Q12005

Q42004

Q3 2004

Q2 2004

Q12004

Q42003

Q32003

Q22003

Q12003

num

ber

of d

eals



Asia-Pacific

Mid-market league tables

YTD 31-Jul-2008

House Value ($m)

Deal count

Value:





5 JPMorgan 1,248 8



8 UBS 932 7

9 Deloitte 931 9

10 Morgan Stanley 801 6

Volume:





5 Ernst & Young 483 10



8 Deloitte 931 9

9 JPMorgan 1,248 8

10 M&A International 393 8


The Financial adviser league tables by value and volume have been run from 01 January2008 to 31 July 2008 and exclude lapsed and withdrawn deals. The tables cover allsectors and are based on the geography of either the target, bidder or seller beingAsia-Pacific (excluding Japan).

Top 10 mid-market financial advisers – Asia-Pacific excl Japan ($10m to $250m)

YTD 31-Jul-2008

House Value ($m)

Deal count

Value:








8 King & Wood 856 9

9 Corrs Chambers Westgarth 839 7

10 Rajah & Tann 817 8

Volume:





5 DLA Piper 664 13




9 Deacons 630 11

10 Kim & Chang 594 10


The Legal adviser league tables by value and volume have been run from 01 January2008 to 31 July 2008 and include lapsed and withdrawn deals. The tables cover allsectors and are based on the geography of either the target, bidder or seller beingAsia-Pacific (excluding Japan).

Top 10 mid-market legal advisers – Asia-Pacific excl Japan($10m to $250m)


Greater China

New anti-monopoly law brings new implications to Chinese M&A• Ithasbeen14yearsinthemaking:China’snewAnti-

MonopolyLawfinallycameintoeffecton1August,2008.

Whilethenewlegislationislargelyseenasastepfor

Chinesecommercetomovetowardsamarketeconomy,

companiesbothdomesticandabroadwillnowhaveto

consultwidelyonwhatimplicationsthenewregimewill

haveonmergersandacquisitions.

• ThenewAnti-MonopolyLaw,modelledaftersimilar

lawsintheEUandtheUS,willlargelyleveltheplaying

fieldsbetweenChinaandotherworldeconomiesin

areassuchasM&Aactivity,pricefixingandday-to-day

businessagreements.Themostsignificantchangefrom

thepastregimeisthatwhiletheprevioussetofmerger

controllawsonlyappliedtoforeigncompaniesacquiring

astakeindomesticenterprises,thenewlawwillequally

scrutinisebothdomesticandforeigncompaniesmaking

acquisitions.

• The“RegulationonNotificationThresholdsof

ConcentrationofUndertakings”issuedbytheState

Councilon3Augustshedsnewlightonhowthenew

lawwillbeimplementedaswell.Theoldlawmandates

notificationofacross-borderacquisitionofadomestic

companybyaforeignenterpriseiftheChinarevenue

ofoneofthepartiesexceedsCNY1.5bn($219m),or

othervariousconditionsconcerningpreviousacquisition

activitiesormarketsharesaremet–whichcanbehard

toquantifyobjectively.Thenewlaw,ontheotherhand,

hasasimplerandmoreobjectivethreshold.Regardlessof

whetherthedealisdomesticorcross-border,notification

isrequirediftheChinarevenueforeachofatleasttwo

partiesexceedsCNY400m($58m),andthetotalglobal

revenuesforallpartiesexceedCNY10bn($1.46bn)or

thetotalChinarevenuesforallpartiesexceedCNY2bn

($292m).However,specialthresholdsforthefinancial

servicesindustryhaveyettobeannounced.

• Thethreeagenciespreviouslyinvolvedinanti-monopoly

lawenforcement–theMinistryofCommercefor

mergers,theNationalDevelopmentandReform

Commissionforpricing,andtheStateAdministration

forIndustryandCommerceforunfaircompetition–will

allnowreporttothenewly-createdAnti-Monopoly

Commission,whichisoverseendirectlybytheState

Councilandgivensubstantialdiscretionandinterpretive

authorityovertransactionsmeetingthenotification

thresholds.ThenewlawwillgivetheBeijinggovernment

thesamepowertoconductdiscretionaryinvestigations

ornationalsecurityreviewsoverM&AdealsinChinaas

WashingtonoverdealsconcerningtheUS,orBrussels

overdealsintheEU.

• Finesofupto10%ofthesalesrevenueswillbelevied

oncompaniesmakinganti-competitiveagreementsor

abusingadominantpositioninthemarket.Finesofup

toCNY500k($73k)willbeleviedoncompaniesfailing

tofollowmergerrulesorindustryassociationsbehaving

likecartels.Whilethesepenaltiesseemheftyby

Chinesestandards,theyareonparwithsimilarregimes

worldwide.

• However,severalkeyareasofimplementationofthenew

lawremainunclear.Therevenueclauseoftheregulation

providesnoindicationforinclusionoftherevenuesofa

principal’saffiliateswithinoroutsideChina.Itisunclear

howthenewlawwillapplytospecialpurposevehicles

incorporatedforaspecificacquisition.Itisalsounclear

whetherandhowtheBeijinggovernmentwillinterpret

“Chinarevenues”foroffshoretransactions.Major

overseastransactions,suchastheBHPBilliton–RioTinto

deal,mayverywellcomeunderChinesescrutinyunder

thenewlaw,muchliketransactionsbetweennon-EU

membersaresometimescaughtundertheEUMerger

ControlRegulation.

• ThoughthenewAnti-MonopolyLawandRegulation

marksthebeginningofanewerainChinesemerger

controlregimebyincludingdomestictransactionsand

moreobjectiveconditionsfornotification,theM&A

communityworldwidewillundoubtedlybemonitoring

theimplementationandenforcementofthenewlaw

veryclosely,focusingonthediscretionarypowerofthe

Anti-MonopolyCommissionanditsinterpretationofthe

ambiguityinthenewlawaswell.

1AlldollarvaluesareinUScurrencyunlessstatedotherwise


Greater China

China Eastern Airlines and Shanghai Airlines rumored to merge• Afterfailingtogainshareholdersapprovalfora

HK$7.16bn($920m)stakesaletoSingaporeInternational

Airlines(SIA)andTemasekHoldingsinJanuary2008,

ChinaEasternAirlines(CEA)isnowrumoredtobeintalks

withShanghaiAirlinesaboutapotentialmerger.

• Bothairlineshavepubliclydeniedreportsofthetalks,

however,theShanghaimunicipalgovernment,thestate

ownerofbothShanghaiAirlinesandCEA,hasbeen

reportedtobekeenonmergingthetwocompanies.

• CEA’splantointroduceSIAasastrategicinvestorwas

spoiledbyChinaNationalAviationCorp(CNAC),the

state-ownedparentofBeijingbasedrivalAirChina,

whichmadeaninformalbid,butdidnotfollowthrough.

ShanghaiAirlines’plantointroduceEuropeanairlinesas

strategicinvestorsviaaminoritystakesalelastyearhad

notcometofruitioneitherduetotheoverheatedequity

marketatthetime.

• AsSIAwillbeunlikelytoraiseitsoriginalbidofHK$3.8

($0.49)pershareforCEAandwiththeCEA-SIA

agreementduetoexpire,theShanghaigovernment,

eagertocreateaShanghaibasedaviationgiantto

competewithAirChinaandChinaSouthernAirlines,

decidedthatShanghaiAirlinesshouldnowmergewith

CEA,whosedebtratiohasrisento95%.

Greater China


Greater China

Dealofthemonth

Target: AnhuiXindaRealEstateCoLtd;HainanYuanshicunDevelopment;HefeiRunxinRealEstateDevelopmentCoLtd;JiaxingCindaJiansheRealEstateDevelopmentCoLtd;JilinXindaJinduProperty;NingboXindaZhongjianProperty;QingdaoXindaRongchangPropertyGroupCoLtd;ShanghaiLirenInvestmentManagementCoLtd;ShanghaiXindaYintaiPropertyCoLtd;TaizhouCindaPropertyCoLtd;andXinjiangCindaYintongPropertyCo.Ltd.

Announced: 16July2008

Bidder: BeijingTianqiaoBeidaJadeBirdScience&TechnologyCoLtd Deal value: CNY6,300m

Sellers: CindaInvestmentCoLtd;HainanJianxinInvestmentManagementCoLtd;JiangxiGanyueExpresswayCoLtd;ShenzhenJianxinInvestmentDevelopmentCoLtd;andZhengyuanInvestmentCoLtd

Deal nature: Recommended

• BeijingTianqiaoBeidaJadeBirdScience&Technology

CoLtd.(JadeBird),thelistedChinabasedprovision

informationtechnologyservicesprovider,hasagreedto

acquireShanghaiLirenInvestmentManagementCo.Ltd.,

theChinabasedinvestmentconsultantcompany,and10

Chinabasedrealestateservicesproviders,fromCinda

InvestmentCo.Ltd.,ZhengyuanInvestmentCo.Ltd.,

ShenzhenJianxinInvestmentDevelopmentCo.Ltd.and

HainanJianxinInvestmentManagementCo.Ltd.,thefour

Chinabasedinvestmentcompanies,andJiangxiGanyue

ExpresswayCo.Ltd.,thelistedChinabasedexpressway

constructioncompany,foraconsiderationofCNY6.3bn

($924.84m).

• The10realestateservicesprovidersincludeShanghai

XindaYintaiPropertyCo.Ltd.,AnhuiXindaRealEstate

Co.Ltd.,JilinXindaJinduPropertyCo.Ltd.,Ningbo

XindaZhongjianPropertyCo.Ltd.,HainanYuanshicun

DevelopmentCo.Ltd.,QingdaoXindaRongchang

PropertyGroupCo.Ltd.,XinjiangCindaYintongProperty

Co.Ltd.,JiaxingCindaJiansheRealEstateDevelopment

Co.Ltd.,HefeiRunxinRealEstateDevelopmentCo.Ltd.

andTaizhouCindaPropertyCo.Ltd.

• JadeBirdwillissueatotalof1.05bnsharesvaluedat

apriceofCNY6($0.88)pershare,worthCNY6.3bn,

representinga67.88%stake.Itincludes791.95m

sharestoCindaInvestment,27.47msharestoShenzhen

Jianxin,30.62msharestoHainanJianxin,100msharesto

ZhengyuanInvestmentand100.24msharestoGanyue

Expressway.

• JadeBirdwillacquire87.47%and12.53%stakesin

ShanghaiXindafromCindaInvestmentandZhengyuan

Investment,72.22%and27.78%stakesinAnhui

XindafromCindaInvestmentandGanyueExpressway,

51.17%and48.83%stakesinJilinXindafromCinda

InvestmentandGanyueExpressway,87.93%and

12.07%stakesinNingboXindafromCindaInvestment

andGanyueExpressway,64.45%and35.55%stakesin

HainanYuanshicunfromHainanJianxinandZhengyuan

Investment,67.51%and32.49%stakesinQingdao

XindafromCindaInvestmentandZhengyuanInvestment,

54.57%and45.43%stakesinXinjiangCindafromCinda

InvestmentandZhengyuanInvestment,76.42%and

23.58%stakesinJiaxingCindafromCindaInvestment

andZhengyuanInvestment,a100%stakeinShanghai

LirenandTaizhouCindabothfromCindaInvestmentand

a100%stakeinHefeiRunxinfromShenzhenJianxin.


Greater China

Dealofthemonth

• Priortothetransaction,CindaInvestmentholdsa12.07%

stakeinJadeBird.Uponcompletion,JiangxiGanyue

willownaminimum5%stakeinJadeBirdandCinda

Investmentwillownatotalof910mshares,representinga

58.82%stake.Threeofthecompanieshavegeneratednet

profitforthefirstfourmonthsperiodsin2008,including

ShanghaiXindawithCNY24.24m($3.56m),NingboXinda

eithCNY105.83m($15.54m)andJiaxingCindawithCNY

23.13m($3.4m).Theremainingeightcompaniesposted

netlossesforthefirstfourmonthsperiodsin2008,

comprisingAnhuiXindwithalossofCNY7.06m($1.04m),

QingdaoXindawithalossofCNY9.71m($1.43m),Xinjiang

CindawithalossofCNY22.98m($3.37m),TaizhouCinda

withalossofCNY1.3m($0.19m),JilinXindawithaloss

ofCNY0.78m($0.11m),HefeiRunxinwithalossofCNY

3.03m($0.44m),HainanYuanshicunwithalossofCNY

0.13m($0.02m)andShanghaiLirenwithalossofCNY

6.78m($1m).

• CindaInvestment’sshareholdershaverepelledthe

mandatoryofferforacquiringthestaketheydonotalready

owninJadeBird.TheacquisitionwillenableJadeBirdto

expanditsoperationsandstrengthenitspresenceinthe

realestatemarketslocally.

• ThetransactionissubjecttotheapprovalsbytheChinese

regulatoryauthoritiesandJadeBird’sshareholders.


Greater China

Dealofthemonth

Advisers


Financial - Financial GFSecurities

Legal - Legal GrandfieldLawFirm

PR - PR -


01-Aug-08 BeijingTianqiaoBeidaJadeBird:EGMapprovestheproposalsforassetsandstakesaledealwithCindaInvestment

16-Jul-08 BeijingTianqiaoBeidaJadeBirdtoacquire11realestatesubsidiariesofCindaInvestment,others


Greater China

Top 15 Greater China announced deals for YTD 31 July 2008Announced Status Target company Sector Bidder company Seller company Exit multiples (x) Bid premia



2-Jun-08 P ChinaNetcomGroupCorporation(HongKong)Limited

TMT ChinaUnicomLtd 2.6 4.9 15.3 31.2% 29,589

2-Jun-08 P WingLungBankLimited

FinancialServices

ChinaMerchantsBankCoLtd

n/a n/a 26.5 6.2% 4,655

7-May-08 P BeijingPengrunPropertyCoLtd

FinancialServices

BeijingCentergateTechnologies(Holding)CoLtd

BeijingPengkangTechnologyCoLtd;andBeijingPengtaiInvestmentCoLtd

n/a n/a - 2,576

20-Jun-08 P SanjiuMedical&PharmaceuticalCoLtd(71.35%stake)


NewSanjiuHoldingsCoLtd

SanjiuEnterpriseGroup;andShenzhenSanjiuPharmaceuticalCoLtd

5.6 56.8 89.6 - 1,947

27-May-08 P ChinaConstructionBankCorporation(2.57%stake)

FinancialServices

BankofAmericaCorporation

ChinaSAFEInvestmentsLimited

n/a n/a 7.5 - 1,860

18-Mar-08 P HuaXiaBankCoLtd(15.73%stake)

FinancialServices

DeutscheBankAG;ShougangGroup;andStateGridCorporationofChina

n/a n/a 30.4 1.2% 1,632

5-Jun-08 P ChinaJinMao(Group)CompanyLimited

FinancialServices

FranshionProperties(China)Limited

ConsortiumledbySinochemHongKong(Group)CompanyLimited

n/a n/a - 1,584

11-Jun-08 P CITICInternationalFinancialHoldingsLimited(30.25%stake)

FinancialServices

CITICGroup n/a n/a 20.2 16.8% 1,486

22-May-08 P ShanxiLiulinJinjiazhuangCoalCompanyLimited(65%stake);ShanxiLiulinXingwuCoalmineCompanyLimited(65%stake);andShanxiLiulinZhaiyadiCoalCompanyLimited(95%stake)


FushanInternationalEnergyGroupLimited

FortuneDragonGroupLimited

- 1,350

22-Jun-08 P SAIC(autocomponentsbusiness)


ShanghaiBashiIndustrial(Group)CoLtd

ShanghaiAutomotiveIndustryCorporation

- 1,282

4-May-08 P NingboCitongPropertyCoLtd;NingboCitySquareDevelopment&ManagementCoLtd;andNingboRealEstateCoLtd(74.84%stake)

FinancialServices

NingboFudaCompanyLimited

NingboUrbanConstructionInvestmentHoldingCoLtd

n/a n/a - 1,145

Topdeals


Greater China

Announced Status Target company Sector Bidder company Seller company Exit multiples (x) Bid premia1-day before


16-Jul-08 P AnhuiXindaRealEstateCoLtd;HainanYuanshicunDevelopment;HefeiRunxinRealEstateDevelopmentCoLtd;JiaxingCindaJiansheRealEstateDevelopmentCoLtd;JilinXindaJinduProperty;NingboXindaZhongjianProperty;QingdaoXindaRongchangPropertyGroupCoLtd;ShanghaiLirenInvestmentManagementCoLtd;ShanghaiXindaYintaiPropertyCoLtd;TaizhouCindaPropertyCoLtd;andXinjiangCindaYintongPropertyCoLtd

FinancialServices

BeijingTianqiaoBeidaJadeBirdScience&TechnologyCoLtd

CindaInvestmentCoLtd;HainanJianxinInvestmentManagementCoLtd;JiangxiGanyueExpresswayCoLtd;ShenzhenJianxinInvestmentDevelopmentCoLtd;andZhengyuanInvestmentCoLtd

n/a n/a - 925

16-Apr-08 P ZhengzhouCoalIndustryGroupCoLtd(6subsidiaries)


ZhengzhouCoalIndustry&ElectricPowerCoLtd

ZhengzhouCoalIndustryGroupCoLtd

- 884

19-Mar-08 P DragonSteelCorporation(52.01%stake)


ChinaSteelCorporation

30.8 - 824

6-May-08 C YingkouPort(sevenBayuquanberthsandotherassets)

Transportation YingkouPortLiabilityCoLtd

YingkouPortGroupCoLtd

- 822


Topdeals


Greater China

Top 5 Greater China announced deals of the month (July 2008)Announced Status Target company Sector Bidder


1-day beforeDeal value($m)

Revenue EBITDA P/E

16-Jul-08 P AnhuiXindaRealEstateCoLtd;HainanYuanshicunDevelopment;HefeiRunxinRealEstateDevelopmentCoLtd;JiaxingCindaJiansheRealEstateDevelopmentCoLtd;JilinXindaJinduProperty;NingboXindaZhongjianProperty;QingdaoXindaRongchangPropertyGroupCoLtd;ShanghaiLirenInvestmentManagementCoLtd;ShanghaiXindaYintaiPropertyCoLtd;TaizhouCindaPropertyCoLtd;andXinjiangCindaYintongPropertyCoLtd

FinancialServices

BeijingTianqiaoBeidaJadeBirdScience&TechnologyCoLtd

CindaInvestmentCoLtd;HainanJianxinInvestmentManagementCoLtd;JiangxiGanyueExpresswayCoLtd;ShenzhenJianxinInvestmentDevelopmentCoLtd;andZhengyuanInvestmentCoLtd

n/a n/a - 925

7-Jul-08 P HonitonEnergyHoldingsPlc


ArcapitaBankBSC;ColossusHoldings

- 500

25-Jul-08 P WumartStoresInc(40.8%stake)

Consumer YinchuanXinhuaDepartmentStoreCoLtd

WumeiHoldingsLtd 1.2 14.9 26.9 -8.5% 458

21-Jul-08 P BrightWorldPrecisionMachineryLimited


ChinaHoldingsAcquisitionCorporation

WorldShareholdLimited

4.4 13.5 10.3 85.9% 335

24-Jul-08 P BankofJilinCoLtd(19.67%stake)

FinancialServices

HanaBank n/a n/a - 324

C=Completed;P=Pending;L=Lapsed

Topdeals


Greater China

Pipeline of Greater China expected dealsSituation Target company Sector Potential bidder

companyFinancial advisers to bidder (B); target (T); seller (S)

Seller company

Market cap est.value

($m)

Comments

Potentialtakeovertarget

HighTechComputerCorp

TMT SonyEricsson 31,135 SonyEricssonhasbeenreportedinterestedinHighTechComputerCorp,theTaiwanlistedmobilemanufacturer.HighTechComputerissuedanannouncementdecliningtogiveanycomment.

Expecteddeal JiuquanIronandSteelGroup/InternationalMineralResources(jointventure)


3,090 JiuquanIronandSteelGroupwillforma51-49jointventurewithKazakhstanbasedInternationalMineralResources.ThenewcompanywillbeworthCNY21.169bn.

Expecteddeal TelevisionBroadcastsLimited

TMT YeungKwokKeung(privateinvestor)

ShawBrothers(Hong

Kong)Ltd.

2,717 TheChairmanofCountryGardenHoldingsCoLtd,theChineserealestatedeveloper,isexpectedtomakeabidforTVB.

SignificantM&A

HKTGroupHoldingsLimited

TMT ApaxPartners;BlackstoneGroupHoldingsLLC;ChinaInvestmentCorporation;GoldmanSachs,KohlbergKravisRoberts&Co;MacquarieGroupLimited;MBKPartners;ProvidenceEquityPartnersInc;TPGLLP

UBS(S) PCCWLimited

2,500 PCCW,theHongKonglistedtelecomoperator,planstoinjectitslocaltelecombusinessesintoHKTGroupHoldings,andsubsequentlydisposeofa45%staketointerestedparties.

SignificantM&A

ChinaYangtzeTransportation(Group)Corporation

Transport ChinaNationalForeignTradeTransportation(Group)Corporation

1,958 ChinaYangtzeTransportation(Group)Corporation,isconsideringapossiblemergerandreorganizationwithChinaNationalForeignTradeTransportation(Group)Corporation,astatecontrolledcompany.SinceSASACapprovalisstillrequired,therearelevelsofuncertaintyastowhethertheproposalwillmaterialize.

SignificantM&A

InsigmaTechnology TMT MicrosoftCorporation

1,387 InsigmaTechnology,theChineselistedITcompany,hasbeenreportedtobeindiscussionsoveraprivateplacementofnewsharestoMicrosoft.

SignificantM&A

TaiwanBusinessBank

FinancialServices

MegaFinancialHolding

1,327 TaiwanBusinessBankisreportedtohaveaforeigninvestorinterestedinacquiringa13.4%stake.

SignificantM&A

ShanghaiAirlinesCoLtd

Transport ChinaEasternAirlines

1,031 ShanghaiAirlinesCo,theShanghailistedairlinescompany,isrumouredtobegivingupitsoriginalplantobringinaforeignstrategicinvestorandrathermergewithChinaEasternAirlinesviaashareswap.


Expecteddeals


Greater China

Leaguetables

valueYTD

31-Jul-08House Value

($m)Deal

count


2 ChinaInternationalCapital 48,566 9

3 JPMorgan 43,388 9





8 UBS 8,166 9


10 Somerley 4,519 9

11= FearnleyFonds 3,777 1

11= Pareto 3,777 1


14 ShenyinWanguoSecurities 3,037 5


Source:mergermarket

volume

Thefinancialadviserleaguetablesbyvalueandvolumehavebeenrunfrom01January2008to31July2008andexcludelapsedandwithdrawndeals.Thetablescoverallsectorsandarebasedonthegeographyofeitherthetarget,bidderorsellerbeingGreaterChina.

YTD 31-Jul-08

House Value ($m)

Deal count


2 OptimaCapital 280 10

3 ChinaInternationalCapital 48,566 9

4 JPMorgan 43,388 9

5 UBS 8,166 9

6 Somerley 4,519 9




10 CIMBGroup 878 7



13 ShenyinWanguoSecurities 3,037 5

14 HaitongSecurities 1,856 5


Source:mergermarket

Top 15 financial advisers - Greater China

valueYTD


($m)Deal

count

1 FreshfieldsBruckhausDeringer 36,590 10




5= Shearman&Sterling 29,589 1

5= SlaughterandMay 29,589 1


8 Ashurst 13,205 2


10 MallesonsStephenJaques 13,034 4

11 Deacons 6,198 5

12 DLAPiper 5,895 12

13 Allen&Overy 5,721 3

14 King&Wood 5,287 12

15 JunHeLawOffices 4,910 4

Source:mergermarket

volume

Thelegaladviserleaguetablesbyvalueandvolumehavebeenrunfrom01January2008to31July2008andincludelapsedandwithdrawndeals.Thetablescoverallsectorsandarebasedonthegeographyofeitherthetarget,bidderorsellerbeingGreaterChina.

YTD 31-Jul-08

House Value ($m)

Deal count

1 DLAPiper 5,895 12

2 King&Wood 5,287 12




6 JonesDay 2,409 9


8 Haiwen&Partners 4,413 6

9 HerbertSmith/GleissLutz/Stibbe 3,645 6

10 LCS&Partners 135 6

11 Deacons 6,198 5

12 Allen&Gledhill 3,455 5

13 WongPartnership 1,799 5

14 NortonRose 1,388 5


Source:mergermarket

Top 15 legal advisers - Greater China


Greater China

Trendgraphs

Greater China M&A quarterly trend

value volume


0

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e ($

m)

0

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Greater China M&A quarterly private equity trend

value volume

0

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e ($

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Greater Chinaexits

0

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Greater China

Trendgraphs

Greater China M&A annual trends

value volume

0

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2008 YTD20072006200520042003

valu

e ($

m)

All Greater China M&A

Greater China buyouts

Greater China exits

0

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2008 YTD20072006200520042003

num

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of d

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All Greater China M&A

Greater China buyouts

Greater China exits

Greater China M&A sector breakdown YTD 2008

value volume



Financial services

Consumer

TMT

Business services


Construction

Transport

Leisure

Agriculture

12.2%

11.9%

26.6%

4.4%

38.4%

1.2%

0.9%

1.3%

2%

0.4%0.7%



Financial services

Consumer

TMT

Business services


Construction

Transport

Leisure

Agriculture

24.1%

17.6%

14.8%

11.8%

3.9%

5.3%

6.7%

10%

3.2%

0.9%1.6%


Greater China

Mid-marketdeals

Top 10 Greater China announced mid market deals for YTD 31 July 2008 ($10mto$250m)Announced Status Target company Sector Target

financial adviser




Seller company Deal value($m)

27-Jun-08 P ValinArcelorMittalAutomotiveSteelLtd(33%stake)


ArcelorMittal;HunanValinIron&SteelGroupCoLtd;andHunanValinSteelTube&WireCoLtd

240

28-Feb-08 C WuxiLittleSwanCompanyLtd(24.01%stake)

Consumer GuangdongMideaElectricAppliancesCoLtd

CITICSecurities

ZhongXinXieChengLawfirm

WuxiGuolianDevelopment(Group)CompanyLimited

236

16-Jul-08 P QinghaiBindiPotashCoLtd


JilinPharmaceuticalCoLtd

ChinaEuroSecuritiesLimited

FujianFuruiInvestmentCoLtd;GeermuEnnengdaInvestment;LenghuBindiPotashCoLtd;QinghaiHuiwangMineralInvestmentCoLtd;ShanghaiDajingCulturalCoLtd;ShanghaiShupaiIndustryCoLtd;andZhangleRongwaTradingCoLtd

235

28-Feb-08 P AnhuiPublishingGroupCoLtd(publishingandprintingassets)

TMT USTCChuangxin

HaitongSecurities

ChengyiLawFirm

AnhuiPublishingGroupCoLtd

235

3-Mar-08 P E-TENInformationSystemsCompanyLimited

TMT Noneused Noneused

AcerIncorporated

KPMGCorpFin

Notdisclosed 231

23-Jan-08 P YunnanXibuMiningCompanyLimited(80%stake)


GloryFutureGroupLtd

231

15-Jan-08 P RonganGroupCoLtd(8subsidiaries)

FinancialServices

ShenzhenZhouMingHaiXunInvestment

ZhejiangDOSLawFirm

SuccessInformationIndustryGroupCoLtd

GFSecurities ZheJiangHeYiLawOffice

RonganGroupCoLtd

229

22-Jul-08 P SilvertieHoldingCoLtd(42.85%stake)

BusinessServices

SealandSecurities

KangDaLawFirm

BeijingInfrastructureInvestmentCoLtd;andChinaYintaiInvestmentCoLtd

China Securities

JunZeJunLawOffices

220

23-Jul-08 P Ruiyuan(Fujian)EnterpriseCoLtd;Sakura(Fujian)Packaging&StationeryCoLtd;andSakura(Fujian)PlasticEnterpriseCoLtd


DMG&PartnersSecurities

ThaiVillageHoldingsLtd

OverseaChineseBanking

KhattarWong ChinaStationeryLimited

219

7-Apr-08 C ChongqingWaterGroup(15%stake)


NWSHoldingsLimited;andSuezEnvironment

CIMBGroup Notdisclosed 214

C=Completed;P=Pending;L=LapsedSource:mergermarket


Greater China

Mid-marketdeals

Greater China M&A quarterly mid-market trend

value volume

0

2,000

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Q3 2008*

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valu

e ($

m)

0

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Q32007

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num

ber

of d

eals



Greater China


YTD 31-Jul-08

House Value ($m)

Deal count

Value:

1 Somerley 686 6

2 BNPParibas 584 3

3 HaitongSecurities 574 4

4 CIMBGroup 528 4

5 ChinaSecurities 492 3

6 ShenyinWanguoSecurities 461 4

7 CITICSecurities 457 3

8 Commerzbank 439 3

9 UnitedSecurities 426 1

10 GFSecurities 422 2

Volume:

1 OptimaCapital 260 7

2 Somerley 686 6

3 HaitongSecurities 574 4

4 CIMBGroup 528 4

5 ShenyinWanguoSecurities 461 4

6 KPMGCorpFin 307 4


8 BNPParibas 584 3

9 ChinaSecurities 492 3

10 CITICSecurities 457 3

Source:mergermarket

Thefinancialadviserleaguetablesbyvalueandvolumehavebeenrunfrom01January2008to31July2008andexcludelapsedandwithdrawndeals.Thetablescoverallsectorsandarebasedonthegeographyofeitherthetarget,bidderorsellerbeingGreaterChina.

Top 10 mid-market financial advisers – Greater China ($10mto$250m)

YTD 31-Jul-08

House Value ($m)

Deal count

Value:

1 King&Wood 856 5

2 Morrison&Foerster 694 8

3 DLAPiper 476 7

4 KangDaLawFirm 451 3

5 O'Melveny&Myers 433 5

6 Rajah&Tann 403 3

7 HerbertSmith/GleissLutz/Stibbe 386 3

8 FreshfieldsBruckhausDeringer 376 2

9 Allen&Gledhill 352 2

10 MallesonsStephenJaques 294 4

Volume:

1 King&Wood 856 8

2 DLAPiper 476 7

3 Morrison&Foerster 694 5


5 Linklaters 278 4

6 K&LGates 263 4

7 JonesDay 160 4

8 KangDaLawFirm 451 3

9 O'Melveny&Myers 433 3

10 Rajah&Tann 403 3

Source:mergermarket

Thelegaladviserleaguetablesbyvalueandvolumehavebeenrunfrom01January2008to31July2008andincludelapsedandwithdrawndeals.Thetablescoverallsectorsandarebasedonthegeographyofeitherthetarget,bidderorsellerbeingGreaterChina.

Top 10 mid-market legal advisers – Greater China ($10mto$250m)


The management buyout by Tsumura Lifescience • ThemanagementteamofTsumuraLifescience(TLS)

hasannounceditwillacquirethecompanyinabuyout

transactionbackedbyWisePartnersforJPY4.5bn.Inthis

transaction,Tsumura&CowillfirstsellitsstakeinTSLto

aspecialacquisitionvehiclesetupbyWisePartners,and

thenbuybacka10%stakeinittokeeptheinfluenceon

TSL.Themanagementteamandemployeeswillalsotake

uppartofthesharesfromWisePartners.

• Tsumura&Coisauniquepharmaceuticalcompanywith

strengthsinOrientalherbalmedicinewithamarket

capitalisationofalmostJPY200bn.Inadversemarket

conditions,Tsumurahasshownstableperformance

inrecentyearsanditssharepricehasgoneupby

40%sinceJulylastyear.Withinthegroup,TSLwas

mostlyengagedinconsumerproductswithaturnover

ofJPY7.5bnintheyearendedMarch2007.Tsumura

decidedtosellitssharesasTSL’smainproduct,bath

additives,willnotgenerateanysynergieswiththe

Orientalmedicineproducts.

• WisePartnerswillretaintheincumbentmanagement

withtheaimoflistingTSLonthestockmarketinthenear

future.

Shinsei Bank acquires another consumer finance company• ShinseiBankhasannouncedon11July2008thatitwill

acquireGEConsumerFinance,theJapaneseconsumer

financedivisionofGEJapanHoldings.Theconsideration

ofJPY580bn($5.5bn)ispayableincashandmakesthis

thelargesttransactioninJapansofarthisyear.

• Theacquisitionhasbeenasurprisetosomeobservers,

partlybecausetheconsumerfinancemarkethasbeen

shrinkingsincethegovernmentintroducedanew

regulation.Thegovernmentnowrequiresconsumer

financecompaniestopaybacktheintereststhat

borrowersoverpaidinthepast,whichisputtingaburden

ontheirbalancesheets.Nevertheless,ShinseiBank

acquireda66%stakeinAplusforJPY35bnin2004,and

theacquiredbusinessrecordedanetlossofJPY29.3bn

inthefiscal2007.Whilesomefinancialinstitutionsare

retreatingfromthemarket,itwasamildsurprisethat

ShinseiBankdecidedtoexpanditsconsumerfinance

business.Thoughitisarisk-takingdecision,ShinseiBank

assumesprofitabilityispossibleasthemarketnowhas

fewerplayersthanbefore.

• ThegovernmentisamajorshareholderofShinseiBank

witha22.76%stake,andhasbeenlookingforatiming

todisposeofit.Sincethebeginningof2007,however,

ShinseiBankshareslostalmosthalfofitsvalue.Itislikely

thatthegovernmentwillretainthecontrolonShinsei

Bankforawhileatleastuntiltheacquisitionproducesa

positiveimpactforthebank.

Milestone buyout facing challenge• On30July2008,itwasreportedthatmajorshareholders

ofSkylarkweredemandingthechiefexecutiveofficer

tostepdown,holdinghimresponsibleforthelackluster

performanceofthecompany.

• SkylarkwasoriginallyacquiredbySNCInvestment,an

acquisitionvehicleultimatelyownedbyNomuraPrincipal

InvestmentsandCVCCapitalFinance,inamanagement

buyoutinitiatedbyKiwamuYokokawa,thechiefexecutive

officerofthecompany.Thedealwasthebiggestbuyout

transactionofalistedcompanyinJapan,andvalued

theentirecompanyatJPY295bn.Twoyearsafterthe

transaction,shareholdershavebecomedissatisfiedwith

theperformanceofSkylark,whichhasrecordednet

lossesinthelasttwoconsecutivefiscalyears.

• WhileNomuraandCVCown97%oftheissuedshare

capital,theyarerequiredtoaskforconsentsfrom

debtprovidersinordertoreplacethechiefexecutive

officer.Yokokawaisnowopposingthedemandfrom

shareholders,explainingtothebanksthatperformance

willimprovesoonbyclosingunprofitablerestaurants.

Partiesareexpectedtocometoconclusiononthematter

bytheendofAugust.

Japan

Japan


Dealofthemonth

Target: GEConsumerFinanceCoLtd Announced: 11July2008

Bidder: ShinseiBankLimited Deal value: JPY580bn

Seller: GEJapanHoldings Deal nature: Recommended

• ShinseiBankLimited,thelistedJapanbasedinstitutional

andcommercialbank,hasagreedtoacquireGE

ConsumerFinanceCoLtd,theJapanbasedconsumer

financeservicesprovider,fromGEJapanHoldings,the

Japanbasedproviderofconsumerfinancialservices,and

asubsidiaryofGeneralElectricCompany,thelistedUS

baseddiversifiedindustrialgroup,foracashconsideration

ofJPY580bn($5.39bn)

• ShinseiBankwillacquireGEConsumerFinance,along

withitssubsidiariesGEMoneyFinanceKabushikiKaisha,

GCYugenKaisha,KabushikiKaishaNCCardSendaiand

L-NetKabushikiKaisha.Thetransactionalsoincludesthe

Lakebrandconsumerlendingbusiness,creditcardunit

andthehousingloandivision

• Theagreementalsoincludesanindemnificationclause

thatlimitsShinsei’slossexposure.ShinseiBankwillcover

thegreyzonecostsuptoJPY203bn,whileriskwillbe

sharedbetweenShinseiBankandGEintherangeofJPY

203bntoJPY260bn.BeyondJPY260bn,thecostwillbe

coveredbyGE

• TheconsiderationwillbefundedbyShinseiBank’s

internalresources.PromiseCoLtd,theJapaneseprovider

ofconsumerfinance,andAcomCoLtd,theJapan

basedconsumerfinancebankingfirm,weretheother

companiesparticipatinginthebiddingprocessforGE

ConsumerFinance

• Theconsolidationoftheretailbankingbusinessand

consumerfinancebusinessesisexpectedtopositively

affectthecustomerandrevenuefactorofShinseiBank.

Thetransaction,whichissubjecttoregulatoryapprovals

andclosingconditions,isexpectedtocompleteby30

September2008

Advisers


Financial UBS Financial Noneused

Legal - Legal Noneused

PR - PR Noneused

Japan


Top 15 Japanese announced deals for YTD 31 July 2008Announced Status Target company Sector Bidder company Seller company Exit multiples (x) Bid premia



11-Jul-08 P GEConsumerFinanceCoLtd

FinancialServices

ShinseiBankLimited

GEJapanHoldingsGK

n/a n/a - 5,394

31-Jan-08 C MizuhoSecuritiesLtd(4.35%stake)

FinancialServices

MizuhoCorporateBankLtd

n/a n/a - 2,350

15-Jan-08 C SBIE*TradeSecuritiesCoLtd(47.74%stake)

FinancialServices

SBIHoldingsInc n/a n/a 25.4 -5.0% 1,362

13-Feb-08 C ToyamaChemicalCoLtd(63.95%stake)


FUJIFILMHoldingsCorp

14.1 (loss) (loss) 39.5% 1,296

28-May-08 C MitsubishiUFJNicosCoLtd(24.85%stake)

FinancialServices

MitsubishiUFJFinancialGroupInc

n/a n/a (loss) -8.1% 1,245

14-Mar-08 C AshikagaBankLimited FinancialServices

NomuraHoldings;NomuraFinancialPartnersCo;NextCapitalPartnersCoLtd;andJAFCOCoLtd

DepositInsuranceCorporationofJapan

n/a n/a 1.8 - 1,212

23-Apr-08 C BoschCorporation(38.52%stake)


RobertBoschGmbH

0.8 7.3 15.3 34.8% 1,005

31-Mar-08 C ShinseiBankLimited(13.7%stake)

FinancialServices

DepositInsuranceCorporationofJapan

n/a n/a (loss) 6.8% 979

12-May-08 P VictorCompanyofJapanLimited

Consumer KenwoodCorporation

0.1 6.1 (loss) 0.4% 924

23-May-08 C ChugaiPharmaceuticalCoLtd(9.8%stake)


RochePharmholdingBV

2.8 11.9 25.5 8.4% 922

24-Jul-08 P OkiSemiconductorCompanyLimited(95%stake)

TMT RohmCoLtd OkiElectricIndustryCoLtd

- 795

23-Jul-08 P NIWSCoLtd(dealerbusiness);andNIWSCoHQLtd(dealerbusiness)

BusinessServices

LACHoldingsInc NIWSCoLtd;andNIWSCoHQLtd

3.4 - 784

27-Mar-08 C TokyuStoreChain(60.4%stake)

Consumer TokyuCorporation 0.3 8.7 (loss) 28.3% 689

31-Mar-08 C ChiyodaCorporation(23.13%stake)

Construction MitsubishiCorporation

0.5 7.6 8.7 -3.3% 608

16-Jan-08 C NippeiToyamaCorporation(70.67%stake)


KomatsuLtd 1.1 7.9 11.7 54.3% 595


Topdeals

Japan


Top 5 Japanese announced deals of the month (July 2008)Announced Status Target Company Sector Bidder company Seller company Exit multiples (x) Bid premia



11-Jul-08 P GEConsumerFinanceCoLtd

FinancialServices ShinseiBankLimited

GEJapanHoldings.GK

n/a n/a - 5,394

24-Jul-08 P OkiSemiconductorCompanyLimited(95%stake)

TMT RohmCoLtd OkiElectricIndustryCoLtd

- 795

23-Jul-08 P NIWSCoLtd(dealerbusiness);andNIWSCoHQLtd(dealerbusiness)

BusinessServices LACHoldingsInc NIWSCoLtd;andNIWSCoHQLtd

3.4 - 784

29-Jul-08 P StylingLifeHoldingsInc(51%stake)

Consumer TokyoBroadcastingSystemInc

NikkoPrincipalInvestmentsJapanLtd

0.6 - 195

10-Jul-08 P IntelligenceLtd(62.36%stake)

BusinessServices UsenCorporation 0.4 3.8 5.7 - 190


Topdeals

Japan


Pipeline of Japanse expected dealsSituation Target Company Sector Potential bidder

companyFinancial adviser to bidder (B); target (T); seller (S)

Seller company


Comments

ExpectedDeal

CentralFinance/QUOQInc/OMCCard

FinancialServices

SumitomoMitsuiFinancialGroupInc

Citigroup(T) 23,000(2006turnoverofthethreecompaniestobemerged)

SumitomoMitsuiFinancialGrouphasannouncedabasicagreementonamergerofOMCCard,CentralFinanceandQuoq.SMFGholdsa33%stakeinOMC,23%inCFand32%inQuoq,butcurrentlyhasnointentiontoacquirethefullcontrol.Nodefinitiveplanhasbeenannouncedregardingthelistingofthenewlymergedcompany

ExpectedDeal

SapporoHoldingsLimited

Consumer SteelPartners MizuhoCorpBank,NikkoCitigroup(T)

3,045(49%stakeandnetdebt)

SteelPartnersJapanStrategicFund,thewhollyownedsubsidiaryofUSbasedinvestmentfundSteelPartners,hassubmittedarevisedofferon10March2008toraisetheofferpricetoJPY875persharetoacquire33.3%ofthevotingrightsofSapporoHoldings

ExpectedDeal

BankofIkeda FinancialServices

SenshuBank 741 BankofIkedahasannouncedanagreementwithSenshuBankonaplannedmergerwithanewholdingcompany.

ExpectedDeal

IntelligenceLtd BusinessServices

UsenCorporation 314 UsenhasannouncedabasicagreementtoturnIntelligenceintoawhollyownedsubsidiarythroughtheshareexchange.Aformalagreementisexpectedshorthly.

ExpectedDeal

ToshibaBuildingCoLtd

FinancialServices

NomuraRealEstateDevelopmentCoLtd

Nomura(B),MizuhoFinancialGroup(S)

742(60%stake)

NomuraRealEstateDevelopmenthasannouncedabasicagreementtoacquirea65%stakeinToshibaBuildingforJPY80bn.

ExpectedDeal

JasdaqSecuritiesExchangeInc

FinancialServices

OsakaSecuritiesExchangeCo

JapanSecuritiesDealers

Association

OsakaSecuritiesExchangeisrumoredtolaunchatenderofferforJasdaqSecuritiesExchangeinAugust

Takeovertarget

MaruichiSteelTubeCoLtd


SteelPartners 95 MaruichiSteelTubeLtd.theJapanbasedsteelproductsmanufacturer,isrumouredtobeatakeovertargetfromPEfirm,SteelPartners.


Expecteddeals

Japan


Leaguetables

valueYTD

31-Jul-08

House Value ($m)

Deal count

1 Nomura 20,599 44

2 UBS 18,306 9


4 DaiwaSecuritiesGroup 6,433 30

5 MizuhoFinancialGroup 5,956 26



8 MitsubishiUFJSecurities 5,136 22

9 ReligareCapitalMarkets 4,625 1

10 Fox-PittKeltonCochranCaroniaWaller 4,397 1



13 GCASavvian 2,957 14

14 SBIHoldings 2,724 1

15 Ernst&Young 2,090 7

Source:mergermarket

volume

Thefinancialadviserleaguetablesbyvalueandvolumehavebeenrunfrom01January2008to31July2008andexcludelapsedandwithdrawndeals.Thetablescoverallsectorsandarebasedonthegeographyofeitherthetarget,bidderorsellerbeingJapanese

YTD31-Jul-

08

House Value ($m)

Deal count

1 Nomura 20,599 44



4 MitsubishiUFJSecurities 5,136 22




8 UBS 18,306 9







15 OrixM&ASolutions 6 3

Source:mergermarket

Top 15 financial advisers - Japan

valueYTD

31-Jul-08

House Value ($m)

Deal count


2 Nishimura&Asahi 9,602 26


4= Dewey&LeBoeuf 7,659 1

4= EdwardsAngellPalmer&Dodge 7,659 1

4= WilmerHale 7,659 1



9 MoriHamada&Matsumoto 5,163 19

10 JonesDay 4,694 5

11= P&ALawOffices 4,625 1

11= VaishAssociates 4,625 1

13 Wolf,Block,SchorrandSolis-Cohen 4,397 1



Source:mergermarket

volume

Thelegaladviserleaguetablesbyvalueandvolumehavebeenrunfrom01January2008to31July2008andincludelapsedandwithdrawndeals.Thetablescoverallsectorsandarebasedonthegeographyofeitherthetarget,bidderorsellerbeingJapanese

YTD31-Jul-

08

House Value ($m)

Deal count


2 MoriHamada&Matsumoto 5,163 19

3 NagashimaOhno&Tsunematsu 2,221 14




7 JonesDay 4,694 5





12 White&Case 39 4


14 AndersonMori&Tomotsune 1,634 3

15 TMIAssociates 1,454 3

Source:mergermarket

Top 15 legal advisers - Japan

Japan


value

value

YTD31-Jul-

08

House Value ($m)

Deal count

1= JAFCO 1,212 1

1= NextCapitalPartners 1,212 1

3= BainCapital 576 1

3= RHJInternational 576 1

5 TheCarlyleGroup 564 1

6 CerberusCapitalManagement 416 1

7 PolarisPrincipalFinance 392 2

8 TokioMarineCapital 392 1

9 AdvantagePartners 230 2

10 MKPCapitalManagement 64 1

Source:mergermarket

YTD31-Jul-

08

House Value ($m)

Deal count

1 JAFCO 484 2

2 CVCCapitalPartners 392 1

3 NikkoPrincipalInvestmentsJapan 195 1

4 KaleidoHoldings 108 1

5 PhoenixCapital 103 3

6= NIFSMBCVentures 92 1

6= VisionCapitalCorporation 92 1


9 Nikkoantfactory 28 1

10 DaiwaSecuritiesSMBCPrincipalInvestments

14 1

Source:mergermarket

volume

volume

TheprivateequitybuyoutactivitytablesbyvalueandvolumearebasedonprivateequityfirmsadvisingthebidderonbuyoutdealswherethedominantgeographyofthetargetcompanyisJapaneseThetablesbyvalueandvolumehavebeenrunfrom01January2008to31July2008andexcludelapsedandwithdrawndeals

TheprivateequityexitactivitytablesbyvalueandvolumearebasedonprivateequityfirmsadvisingthevendoronexitdealswherethedominantgeographyofthetargetcompanyisJapaneseThetablesbyvalueandvolumehavebeenrunfrom01January2008to31July2008andexcludelapsedandwithdrawndeals

YTD31-Jul-

08

House Value ($m)

Deal count

1 PolarisPrincipalFinance 392 2

2 AdvantagePartners 230 2

3 SBIHoldings 52 2

4= JAFCO 1,212 1

4= NextCapitalPartners 1,212 1

6= BainCapital 576 1

6= RHJInternational 576 1


9 CerberusCapitalManagement 416 1


Source:mergermarket

YTD31-Jul-

08

House Value ($m)

Deal count

1 PhoenixCapital 103 3

2 JAFCO 484 2


4 NikkoPrincipalInvestmentsJapan 195 1

5 KaleidoHoldings 108 1

6= NIFSMBCVentures 92 1

6= VisionCapitalCorporation 92 1


9 Nikkoantfactory 28 1

10 DaiwaSecuritiesSMBCPrincipalInvestments

14 1

Source:mergermarket

Activity table of private equity firms on Japanese buyouts

Activity table of private equity firms on Japanese buyouts

Leaguetables

Japan


Trendgraphs

Japanese M&A quarterly trend

value volume


0

5,000

10,000

15000

20000

25,000

30,000

35,000

40,000

45,000

Q32008*

Q22008

Q12008

Q42007

Q32007

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Q32006

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Q22003

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valu

e ($

m)

0

20

40

60

80

100

120

140

Q32008*

Q22008

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Q32007

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Q32003

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num

ber

of d

eals

Japanese M&A quarterly private equity trend

value volume

0

1,000

2000

3,000

4,000

5000

6,000

7000

8,000

9,000

Q32008*

Q2 2008

Q1 2008

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valu

e ($

m)

Japanese buyouts

Japanese exits

0

2

4

6

8

10

12

14

16

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Q3 2008*

Q22008

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num

ber

of d

eals

Japanese buyouts

Japanese exits

Japan


Trendgraphs

Japanese M&A annual trends

value volume

0

20

40

60

80

100

120

2008 YTD20072006200520042003

valu

e ($

bn)

All Japanese M&A

Japanese buyouts

Japanese exits

0

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2008 YTD20072006200520042003

num

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of d

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All Japanese M&A

Japanese buyouts

Japanese exits

Japanese M&A sector breakdown YTD 2008

value volume

Consumer


Financial services

TMT

Business services


Leisure

Construction

Energy/Mining/Utilities

Transportation

43.6%

1.8%

3.6%

11.6%

0.7%

0.4%

16.9%

12%

4.4%

5%Consumer


Financial services

TMT

Business services


Leisure

Construction

Energy/Mining/Utilities

Transport

25.6%

1.6% 0.8%

21.1%

4.1%

13.4%

11%

4.5%

5.3%

12.6%

Japan


Mid-marketdeals

Japanese M&A quarterly mid-market trend

value volume

0

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1,000

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Q32008*

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Top 10 Japanese announced mid market deals for YTD 31 July 2008 ($10mto$250m)Announced Status Target company Sector Target/seller

financial adviser




Seller company

Deal value ($m)

25-Apr-08 C JapanTelecomInvoiceCoLtd(85.1%stake)

BusinessServices

SoftbankTelecomCoLtd

InvoiceInc 245

18-Jun-08 P RikenVitaminCoLtd(29.99%stake)


Nomura MoriHamada&Matsumoto

KikkomanCorporation

GCASavvian NagashimaOhno&Tsunematsu

SFCGCoLtd

241

23-May-08 P CosmoSecuritiesCompanyLimited(50.21%stake)

BusinessServices

Noneused Noneused CSKHoldingsCorp

Noneused Noneused 237

1-Feb-08 C NipponMailTransportationCoLtd(88.06%stake)

Transportation Noneused Noneused JapanPostHoldingsCoLtd

MitsubishiUFJSecurities

Nishimura&Asahi

228

6-Jun-08 C TheAsahiShimbunCompany(11.88%stake)

TMT Noneused Noneused TVAsahiCorporation

Noneused Noneused 227

3-Apr-08 C RikenVitaminCoLtd(30.07%stake)

Consumer Notdisclosed Notdisclosed

SFCGCoLtd Notdisclosed Notdisclosed

TZCSInc 219

29-Jul-08 P StylingLifeHoldingsInc(51%stake)

Consumer TokyoBroadcastingSystemInc

NikkoPrincipalInvestmentsJapan

CitigroupInc 195

11-Mar-08 P TheGoodwillGroupInc(16.54%stake)

BusinessServices

CerberusCapitalManagement

MorganStanley 194

10-Jul-08 P IntelligenceLtd(62.36%stake)

BusinessServices

MizuhoFinancialGroup

UsenCorporation DaiwaSecuritiesGroup

190

10-Jan-08 P GinzaCozyCornerCoLtd

Consumer MizuhoFinancialGroup

Nishimura&Asahi

LotteHoldingsCoLtd

MizuhoFinancialGroup

CASTItogaLaw

182


Japan



YTD31-Jul-

08

House Value ($m)

Deal count

Value:

1 Nomura 1,547 17




5 MitsubishiUFJSecurities 904 9

6 Citigroup 798 10

7 KPMGCorpFin 399 6

8 MorganStanley 374 3

9= DeutscheBank 233 1

9= GoldmanSachs 233 1

Volume:


2 Nomura 1,547 17


4 Citigroup 798 10


6 MitsubishiUFJSecurities 904 9

7 KPMGCorpFin 399 6


9 Ernst&Young 228 3

10 BNPParibas 228 2

Source:mergermarket

Thefinancialadviserleaguetablesbyvalueandvolumehavebeenrunfrom01January2008to31July2008andexcludelapsedandwithdrawndeals.Thetablescoverallsectorsandarebasedonthegeographyofeitherthetarget,bidderorsellerbeingJapanese

Top 10 mid-market financial advisers – Japan ($10mto$250m)

YTD31-Jul-

08

House Value ($m)

Deal count

Value:


2 NagashimaOhno&Tsunematsu 800 9

3 MoriHamada&Matsumoto 789 9

4 Shearman&Sterling 390 2

5 Sullivan&Cromwell 346 4

6 CASTItogaLaw 273 2

7 TMIAssociates 242 2

8= CMS 237 1

8= NortonRose 237 1

10= BowmanGilfillan 186 1

10= WebberWentzel 186 1

Volume:


2 NagashimaOhno&Tsunematsu 800 9

3 MoriHamada&Matsumoto 789 9

4 Sullivan&Cromwell 346 4


6 CASTItogaLaw 273 2

7 TMIAssociates 242 2

8 PaulHastingsJanofsky&Walker 115 2

9 Kitamura&Hiraga 114 2


Source:mergermarket

Thelegaladviserleaguetablesbyvalueandvolumehavebeenrunfrom01January2008to31July2008andexcludelapsedandwithdrawndeals.Thetablescoverallsectorsandarebasedonthegeographyofeitherthetarget,bidderorsellerbeingJapanese

Top 10 mid-market legal advisers – Japan ($10mto$250m)


Winter chill for Australian M&A• WhileQ2cameinwithastrongfinishdrivenbytwo

landmarktransactions;the$18bnmergerbetweenthe

AustralianbanksWestpacandStGeorge,andthe$15bn

unsolicitedofferbyBGGrouptoacquiretheentireshare

capitalofOriginEnergy,theAustralianM&Amarketcooled

downsignificantlyinJulywithonly$2.6bnworthofdeals

beingannounced.

• TheM&AvolumesseeninJulyhasalsobeeninlinewith

theslowdownseenthroughout2008,andwithjustover200

dealsannouncedsofarthisyear,wearemostlikelyseeing

theslowestM&Amarketinovertwoyears.Thelackof

M&AvolumesisalsoapparentforthePrivateEquities,with

justover$3bnworthofbuyoutsandonly6exitswithatotal

valueof$650mannouncedsofarthisyear.

• WiththemajorityofthedealsseeninJulycontinuingto

comeoutoftheEnergyandMiningsector,thepositionof

thesectorasthemainsourceofM&Avaluesintheregion

hasbeenfurtherstrengthened.Intotal,thesectorhas

accountedforalmost50%ofthetotalvalueofannounced

dealssofarin2008.

The combination of Westpac and St George moving closer• Thefinancialcommunityisnowincreasinglyofthebelief

thatamergerbetweenStGeorgeBankandWestpacis

likelytobesuccessfulandcertainanalystshasputthe

probabilityofcompletionashighas95%.

• TheACCCisexpectedtoreleaseitsfinalreviewofthe

proposedmergeron20August,buthasalreadygiven

itspreliminaryapprovalforamergertoproceed,and

generallyknockedbacksuggestionsregardingareductionin

competitionduetothemerger.TheStGeorgeshareholders

aresettovoteontheWestpacdealinNovemberandwith

recentfinancialprovisionsdemonstratedbyrivalsNational

AustraliaBankandANZ,manybankinginvestorsarelikelyto

bemorenervousandthereforelesslikelytoknockbackthe

mergerinhopeofahigherofferprice.

• Westpacisnowexpectedtodemonstratethatthebank

doesnothavesignificantexposuretocomplextrading

instrumentsandthatitsbalancesheetcontinuesto

bestrong,inordertokeepWestpac’ssharepricewell

supportedwhileStGeorge’sboardconsidersitsfinal

backingoftheofferaheadoftheshareholderapproval.

Increasing interest for Asciano• Asciano,the$3bnAustralianlistedtransportgroup,has

emergedasoneofthelargestandhottesttakeovertargets

intheAustralianmarket.Afterfirstsayingithasnodirect

explanationfortherecentsharpsharepriceincrease,

Asciano’sCEOMarkRowsthornrecentlyconfirmedthatthe

companyhasreceivedinterestfromseveralgroups,which

againwouldhelpthecompanyattractaminorityco-investor

initsassets.Ascianoisprimarilylookingtoraiseupto

A$1bn($909m)viaapartialassetsaletohelpreducedebts.

• Oneconfirmedunsolicitednon-bindingindicativeproposal

wassubmittedbyTPGCapitalandGlobalInfrastructure

Partnerstoacquire100%oftheissuedsecuritiesofthe

company.Thisproposalalsoincludedacashalternativeof

A$4.40pershare,butwasquicklyturneddownbyAsciano

basedonvaluation,followedbyacommentthatany

successfulproposalwouldhavetoofferasignificantcontrol

premiumaswellassufficientlyvaluingthecompany’s

“unique”assetportfolio.

• Analystsnowbelievethatanysuccessfulbidderforthe

companywouldlikelyneedtopayuptoA$7.30ashare,

valuingthecompanyatA$4.8bn($4.4bn).Meanwhile,

HutchisonWhampoa,theHongKongbasedconglomerate,

andPSA,theSingaporebasedgroup,havealsosurfaced

aspotentialplayersintheexpectedupcomingbattlefor

Asciano.

Australia

1AllvaluesareinUSdollarsunlessotherwisespecified

Australia


Dealofthemonth

Target: MacarthurCoalLimited Announced: 1July2008

Bidder: POSCO Deal value: $407m

Seller: TalbotGroupHoldingsPtyLtd Deal nature: Recommended

• POSCO,thelistedSouthKoreabasedsteelmanufacturer,

hasagreedtoacquirea10%stakeinMacarthurCoal

Limited,thelistedAustraliancoalminingcompany,from

TalbotGroupHoldingsPtyLtd,theAustralianinvestment

vehicleofKenTalbotinvestingintheminingandenergy

sectors,foraconsiderationof$406.74m(A$424.31m)

• Asperthetermsoftheagreement,POSCOwillacquire

20,215,700sharesatanofferpriceofA$20($19.17)per

share.Theofferpricerepresentsapremiumof11.11%

overtheMacarthurclosingpriceofA$18pershare

($17.25)asof27June2008,onedaypriortothedateof

announcement,andapremiumof1.78%overtheclosing

priceofA$19.65($18.83)asof30May2007,onemonth

priortotheannouncementdate.

• Inarelatedtransaction,ArcelorMittalhasincreasedits

stakeinMacarthurCoalfrom14.9%to19.9%atA$

20pershare.Withthesetwotransactions,Macarthur

Coalwillbeinapositiontoenhancethepotentialofits

projectsinordertodiversifyitscustomerbase.

• ThetransactionissubjecttoPoscoboardapproval.

Premium Analysis

Offerpricepershare($) 19.17

1daybefore 11.11%

1monthbefore 1.78%

1dayafter 18.55%

Pre-rumor 2.59%

Advisers


Financial Financial MerrillLynch

Legal Legal -

PR PR -

mergermarket/dealReporter Intellegence

30-Jul-08 ArcelorMittalwillnotupstakeinMacarthurCoal

25-Jun-08 MacarthurCoal:POSCOplansfundraisingasitreviewsstakepurchase,Xstratanotinterested

13-Jun-08 MacarthurCoal:ArcelorMittalstillonlybiddershowinghand,noformalproposalyet

28-May-08 MacarthurCoal:CITICResourcesalong-termholder,spokespersonsays

Australia


Top 15 Australian announced deals for YTD 31 July 2008Announced Status Target company Sector Bidder company Seller company Exit multiples (x) Bid premia



13-May-08 P StGeorgeBankLtd FinancialServices

WestpacBankingCorporation

n/a n/a 16.4 29.6% 17,936

24-Jun-08 P OriginEnergyLimited Energy,Mining&Utilities

BGGroupPlc 3.0 15.2 40.5 -0.1% 15,756

3-Mar-08 C ZinifexLtd Energy,Mining&Utilities

OxianaLimited 2.3 3.3 8.3 13.9% 3,817

11-Mar-08 C DynoNobelLimited(87%stake)


IncitecPivotLtd 2.0 20.5 61.8 19.4% 2,468

4-Feb-08 C StellaGroup(65%stake)

Leisure CVCAsiaPacificLtd OctaviarLimited 5.4 21.1 - 1,101

20-Mar-08 C EquigoldNL Energy,Mining&Utilities

LihirGoldLimited 10.5 19.2 31.7 24.0% 962

14-Mar-08 C MidwestCorporationLtd(80.31%stake)


SinosteelCorporation

34.7 (loss) (loss) 34.9% 879

31-Mar-08 C JustGroupLimited(99.1%stake)

Consumer PremierInvestmentsLimited

1.2 8.1 14.4 14.1% 815

18-Jan-08 C TenixDefencePtyLtd

Defence BAESystemsplc TheTenixGroup 1.1 14.3 - 682

4-Jul-08 C UranquintyPowerStation


OriginEnergyLimited

Babcock&BrownPowerLtd

- 673

19-Jun-08 C TransurbanGroup(10%stake)

Construction CanadaPensionPlanInvestmentBoard

14.3 17.4 (loss) 1.5% 627

1-Feb-08 C QueenslandGasCompanyLtd(9.90%stake);andQueenslandGasCompanyLtd(coalseamgasassetsintheSurat)(20%stake)


BGGroupPlc - 601

16-May-08 P RidleyCorporationLimited

Consumer GrainCorpLtd 0.5 9.0 19.8 13.2% 566

31-Mar-08 C AEDOilLimited(assetsincl.PuffinandTalbotfields)(60%stake)


SinopecInternationalPetroleumExplorationandProductionCorporation

AEDOilLimited - 561

21-Jul-08 P SymbionCPHoldingsPtyLimited

Consumer Sanofi-AventisSA SymbionHealthLimited

2.9 - 547


Topdeals

Australia


Top 5 Australian announced deals of the month (July 2008)Announced Status Target company Sector Bidder company Seller company Exit multiples (x) Bid premia



4-Jul-08 C UranquintyPowerStation


OriginEnergyLimited


- 673

21-Jul-08 P SymbionCPHoldingsPtyLimited

Consumer Sanofi-AventisSA SymbionHealthLimited

2.9 - 547

1-Jul-08 C MacarthurCoalLimited(10%stake)


POSCO TalbotGroupHoldingsPtyLtd

11.1% 407

18-Jul-08 C EcogenEnergyLimited(73%stake)


IndustryFundsManagementPtyLtd


- 175

23-Jul-08 P MitchellDrillingCorporation


AJLucasGroupLimited

- 147


Topdeals

Australia


Pipeline of Australian expected dealsSituation Target company Sector Potential bidder

companyFinancial adviser to bidder (B); target (T); seller (S)

Seller company

Market cap

est. value ($m)

Comments


SantosLtd Energy,Mining&Utilities

9,306 Santos,theAustralianlistedenergycompanyannouncedthatitisatapreliminarystageofconsideringvariouspotentialstrategicinitiatives.

Expecteddeal FelixResources Energy,Mining&Utilities

XstrataPlc Citigroup(T);WilsonHTMCorporateFinance(T)

3,537 FelixResources,theAustralianlistedcoalminer,hasreceivedseveraltakeoverapproachesandallowedsomepartiestoundertakelimitedduediligence.

Expecteddeal AscianoGroup Transport TPGCapital;GlobalInfrastructurePartners;HutchisonWhampoaLimited;andPSA

CreditSuisse(B)

2,978 Ascianohasreceivedanunsolicitednon-bindingindicativeproposalfromTPGCapitalandGlobalInfrastructurePartnertoacquire100%oftheissuedsecuritiesofthecompany.TheproposalincludesacashalternativeofA$4.40perAscianosecurity.

Expecteddeal MirvacGroup FinancialServices

LendLeaseCorporationLimited;andNakheelGroup

2,952 LendLease,theAustralian-listedpropertygroup,hasbeenrumouredtoteamupwithStockland,theAustralian-listedpropertygroup,tomakeabidforMirvac,theAustralian-listedpropertygroup.Meanwhile,MirvacGrouphasconfirmedastrategicpartnershipwithNakheel,theDubai-baseddeveloper,viaaA$300mplacement.


Babcock&Brown FinancialServices

KohlbergKravisRoberts;andHSBC

1,969 Babcock&BrownisrumoredtobethepotentialtakeovertargetofKohlbergKravisRobertsandHSBC.B&Bishighlyindebtandhasseenitssharesplummetingoverthepast12months,makingitanattractivetargetforKKR,whomareseekinginvestmentopportunitiesforitsnewlyestablishedinternationalinfrastructurefund.

Expecteddeal FKPLimited FinancialServices

LendLeaseCorporationLimited

1,195 FKPPropertyGrouphasbeenapproachedbyLendLeaseCorporationLimitedwithanunsolicited,highlyconditional,andincompleteproposaltoacquireallofthesecuritiesinFKPforA$5.00perFKPsecurityforamixtureofLLCscripandcash.TheFKPBoardhassofarrejectedtooffer.

Expecteddeals

Australia


Situation Target company Sector Potential bidder company


Seller company

Market cap

est. value ($m)

Comments

Expecteddeal AustralasianResourcesLimited


ResourceDevelopmentInternational

BDOKendallsCorporate(T);RCCapitalAdvisers(T);MacquarieGroup(B);UBS(B)

533 AustralasianResourcesLimited,thelistedAustralianironorecompanyhasreceivedaproposalfromResourceDevelopmentInternationalLtdregardingamergerofthetwocompanies


CapeLambertIronOreLimited


MerrillLynch(B)

292 CapeLambertisseenasatakeovertargetofEvrazGroup,theRussiangrouprunbyRomanAbramovich.EvrazwascalleduponbyCapeLambertforpreventingChinaMetallurgicalGroupfrombuyingCapeLambert’s$388mironoreproject.MerrillLynchrecentlylodgedasubstantialshareholdernoticereflectinga16%stakeinCapeLambertonbehalfofEvraz.

Expecteddeal AustralianPharmaceuticalIndustries


Citibank(T) 234 AustralianPharmaceuticalIndustries,theAustralia-listedpharma,wouldwaittheoutcomeoftakeovermovesaroundlistedpeerSymbionbeforetalkingaboutoptionsforfurtherconsolidation.

Expecteddeal FuntasticLimited Consumer ArcherCapitalconsortium

MinterEllison(T);Ernst&Young(T)

ABCLearningCentresLimited

100 TrustCompanyhasconfirmedthatitisinpreliminarydiscussionswithEquityTrusteesregardingapossiblemerger.Theboardofdirectorsisyettoconsideraproposalnorhavethepartiescommencedanyduediligence.

Source:mergermarke

Expecteddeals

Australia


Leaguetables

valueYTD


($m)Deal

count


2 UBS 217,330 14



5 GreshamAdvisoryPartners 207,617 8


7 Lazard 202,152 5



10 JPMorgan 192,035 7


12 ABNAMRO 191,412 4



15 HSBCBank 190,344 1

Source:mergermarket

volume

Thefinancialadviserleaguetablesbyvalueandvolumehavebeenrunfrom01January2008to31July2008andexcludelapsedandwithdrawndeals.Thetablescoverallsectorsandarebasedonthegeographyofeitherthetarget,bidderorsellerbeingAustralia

YTD31-Jul-08

House Value ($m)

Deal count


2 UBS 217,330 14


4 PricewaterhouseCoopersCorpFin 1,903 11


6 Deloitte 1,389 9




10 CaliburnPartnership 24,493 7




14 Lazard 202,152 5


Source:mergermarket

Top 15 financial adviserss

valueYTD


($m)Deal

count

1 AllensArthurRobinson 218,417 22




5 BlakeDawson 194,159 25



8 Lovells 190,751 3

9 DaviesWardPhillips&Vineberg 190,591 2

10 JohnsonWinter&Slattery 190,524 4

11= CravathSwaine&Moore 190,344 1

11= HerbertSmith/GleissLutz/Stibbe 190,344 1

11= McCarthyTetrault 190,344 1

11= SlaughterandMay 190,344 1


Source:mergermarket

volume

Thelegaladviserleaguetablesbyvalueandvolumehavebeenrunfrom01January2008to31July2008andincludelapsedandwithdrawndeals.Thetablescoverallsectorsandarebasedonthegeographyofeitherthetarget,bidderorsellerbeingAustralia

YTD31-Jul-08

House Value ($m)

Deal count



3 BlakeDawson 194,159 25

4 MinterEllison 2,862 23


6 Deacons 2,641 20

7 CorrsChambersWestgarth 3,750 17


9 DLAPiper 968 10

10 ClaytonUtz 21,142 8

11 Gilbert+Tobin 19,063 8

12 JonesDay 472 7

13 McCulloughRobertson 348 7

14 CochraneLishman 1,977 6


Source:mergermarket

Top 15 Legal advisers

Australia


Leaguetables

value

value

YTD31-Jul-08

House Value ($m)

Deal count

1 CVCCapitalPartners 1,101 1

2 IronbridgeCapital 448 2

3 CrosbyAssetManagement 410 1

4 ANZPrivateEquity 363 2

5 AMPCapitalInvestors 269 1

6 HastingsFundsManagement 260 1

7 GreshamPrivateEquity 186 1

8 IndustryFundsManagement 175 1

9 QuadrantPrivateEquity 93 1

10 SentientGlobalResources 35 1

Source:mergermarket

YTD31-Jul-08

House Value ($m)

Deal count

1 CHAMPPrivateEquity 416 1


3 ArcherCapital 73 1

4= DirectCapitalPrivateEquity 31 1

4= WatermanHoldings 31 1

Source:mergermarket

volume

volume

TheprivateequitybuyoutactivitytablesbyvalueandvolumearebasedonprivateequityfirmsadvisingthebidderonbuyoutdealswherethedominantgeographyofthetargetcompanyisAustraliaThetablesbyvalueandvolumehavebeenrunfrom01January2008to31July2008andexcludelapsedandwithdrawndeals

TheprivateequityexitactivitytablesbyvalueandvolumearebasedonprivateequityfirmsadvisingthevendoronexitdealswherethedominantgeographyofthetargetcompanyisAustraliaThetablesbyvalueandvolumehavebeenrunfrom01January2008to31July2008andexcludelapsedandwithdrawndeals

YTD31-Jul-08

House Value ($m)

Deal count

1 IronbridgeCapital 448 2

2 ANZPrivateEquity 363 2


4 CrosbyAssetManagement 410 1

5 AMPCapitalInvestors 269 1

6 HastingsFundsManagement 260 1

7 GreshamPrivateEquity 186 1

8 IndustryFundsManagement 175 1


10 SentientGlobalResources 35 1

Source:mergermarket

YTD31-Jul-08

House Value ($m)

Deal count

1 CHAMPPrivateEquity 416 1


3 ArcherCapital 73 1

4= DirectCapitalPrivateEquity 31 1

4= WatermanHoldings 31 1

Source:mergermarket

Activity table of private equity firms on Australian buyouts

Activity table of private equity firms on Australian buyouts

Australia


TrendGraphs

Australian M&A quarterly trends

value volume


0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40000

45,000

Q32008*

Q2 2008

Q1 008

Q4 2007

Q32007

Q2 2007

Q12007

Q4 2006

Q3 2006

Q22006

Q1 2006

Q4 2005

Q3 2005

Q22005

Q12005

Q4 2004

Q3 2004

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Q12004

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Q32003

Q2 2003

Q12003

valu

e ($

m)

0

20

40

60

80

100

120

140

160

180

Q32008*

Q22008

Q12008

Q42007

Q32007

Q2 2007

Q12007

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Q32006

Q2 2006

Q1 2006

Q42005

Q3 2005

Q22005

Q1 2005

Q4 2004

Q3 2004

Q2 2004

Q1 2004

Q4 2003

Q3 2003

Q22003

Q12003

num

ber

of d

eals

Australian M&A quarterly private equity trends

value volume

0

2,000

4,000

6,000

8,000

10,000

12000

14,000

Q3 2008*

Q22008

Q1 2008

Q42007

Q3 2007

Q22007

Q1 007

Q 2006

Q3 2006

Q2 2006

Q1 2006

Q4 2005

Q3 2005

Q2 2005

Q1 2005

Q4 2004

Q32004

Q2 2004

Q1 2004

Q4 2003

Q3 2003

Q22003

Q12003

valu

e ($

m)

Australia buyouts

Australia exits

0

5

10

15

20

25

Q32008*

Q2 2008

Q12008

Q42007

Q32007

Q22007

Q1 2007

Q4 2006

Q32006

Q2 2006

Q12006

Q42005

Q3 2005

Q2 2005

Q1 2005

Q4 2004

Q3 2004

Q22004

Q12004

Q42003

Q3 2003

Q2 2003

Q12003

num

ber

of d

eals

Australia buyouts

Australia exits

Australia


Trendgraphs

Australian M&A Annual Trends

value volume

0

20

40

60

80

100

2008 YTD20072006200520042003

valu

e ($

bn)

All Australia M&A

Australia buyouts

Australia exits

t

0

100

200

300

400

500

2008 YTD20072006200520042003

num

ber

of d

eals

All Australia M&A

Australia buyouts

Australia exits

Australian M&A Sector Breakdown YTD 2008

value volume


Business services

Consumer


Financial services

TMT


Leisure

Transport

Construction

Defence

Agriculture

31.5%

3.2%0.9%

1.2%48%

1.3%

1.1%1.3%

1.4%5.1%

1.4%


Business Services

Consumer


Financial services

TMT


Leisure

Transport

Construction

Defence

Agriculture

9.8%

6.5%

9.3%

5.6%

5.1%

0.9%

14%

20.6%

12.1%

10.3%

4.2%

1.4%

Australia


Mid-marketdeals

Top 10 Australian announced mid market deals for YTD 31 July 2008 ($10mto$250m)Announced Status Target company Sector Bidder company Seller company Exit Multiples (x) Bid premia

1-day before


16-Jun-08 P AnzonEnergyLtd Energy,Mining&Utilities

RocOilCompanyLimited

2.7 4.6 4.8 36.6% 244

17-Mar-08 C ConnectEastGroup(14.79%stake)

Transport JohnHollandInfrastructureNomineesPtyLtd;andThiessInfrastructureNomineesPtyLtd

(loss) (loss) -7.3% 240

16-Jun-08 P AnzonAustraliaLimited(48%stake)


RocOilCompanyLimited

2.9 23.3 5.4 26.4% 231

21-May-08 P BandannaCoalPtyLtd


EnterpriseEnergyLimited

ResolveGeoPtyLtd - 226

8-Feb-08 P Suncorp-MetwayLtd(creditcardportfolio)

FinancialServices

CitibankAustralia Suncorp-MetwayLtd n/a n/a - 206

30-Jun-08 P MacarthurCoalLimited(5%stake)


ArcelorMittal TalbotGroupHoldingsPtyLtd

13.2 48.9 62.9 11.1% 204

29-Jan-08 C MineralSecuritiesLimited


CopperCoLtd. 35.8 (loss) (loss) 2.1% 199

30-May-08 C GoreyandColeDrillersPtyLtd;NudrillPtyLtd;andSidesDrillingContractorsPtyLtd


IronbridgeFundII - 191

10-Apr-08 C BunkerFreightLinesPtyLtd;Doolan'sHeavyHaulage;HoffmanTransportInc;KaganLogistics;andWAFreightGroup

Transport GreshamPrivateEquity

- 186

4-Apr-08 P CracowMining(70%stake)


Beadell(Cracow)PtyLtd

NewcrestMiningLimited

- 181


Australia


Australian M&A quarterly Mid-market trend

value volume

0

1,000

2,000

3,000

4,000

5,000

6,000

Q32008*

Q2 2008

Q12008

Q42007

Q32007

Q22007

Q12007

Q4 2006

Q3 2006

Q22006

Q1 2006

Q4 2005

Q3 005

Q2 2005

Q12005

Q42004

Q32004

Q22004

Q12004

Q42003

Q3 2003

Q2 2003

Q12003

valu

e ($

m)

0

10

20

30

40

50

60

70

80

90

100

Q3 2008*

Q22008

Q12008

Q42007

Q32007

Q2 007

Q12007

Q42006

Q3 2006

Q2 2006

Q1 2006

Q42005

Q32005

Q22005

Q12005

Q42004

Q32004

Q2 2004

Q1 2004

Q4 2003

Q32003

Q2 2003

Q12003

num

ber

of d

eals


Mid-marketdeals

Australia


Top 10 Australian announced mid market deals for July 2008($10mto$250m)



Bidder company

Bidder financial adviser



18/07/2008 C EcogenEnergy

Limited(73%stake)

Energy,Mining

&Utilities

IndustryFunds

Management

PtyLtd

AllensArthur

Robinson

Babcock&Brown

PowerLtd

175

23/07/2008 P MitchellDrilling

Corporation

Energy,Mining

&Utilities

McCullough

Robertson

AJLucasGroup

Limited

147

28/07/2008 P StrikeResourcesLtd

(30.3%stake)

Energy,Mining

&Utilities

Cochrane

Lishman

Gallagher

HoldingsLtd

Blake

Dawson

99

01/07/2008 C HansonBuilding

ProductsPtyLtd

Construction AdelaideBrighton

Limited

Hansonplc 77

01/07/2008 P CorbettLifeScience

PtyLtd

Pharma,

Medical&

Biotech

QIAGENN.V. 70

01/07/2008 P AnzpacServices

(Australia)PtyLtd

Industrials&

Chemicals

NewToyo

International

HoldingsLtd;and

TienWahPress

HoldingsBerhad

AmInvestmentBank

Berhad;PMSecurities

SdnBhd

BritishAmerican

Tobacco(Australia)

Ltd.

57

07/07/2008 C MulgraveCentral

MillCoLtd

Agriculture GrantThornton

Corporate

Finance

TheMaryborough

SugarFactory

Limited

M&AInternational;

PricewaterhouseCoopers

CorpFin

Mallesons

Stephen

Jaques

56

09/07/2008 C ExtraTransport

GroupPtyLtd

Transport EGACorporate

Advisers

Clarendon

Lawyers

TollTransport

PtyLtd

MinterEllison 43

23/07/2008 P Sports&Outdoor

MediaPtyLtd

TMT OohmediaGroup

Limited

39

07/07/2008 C BuxtonGroup

(boutiqueRylands

retirementvillage

business)

Financial

Services

Stockland

Corporation

Limited

Internal Internal BuxtonGroup 33


Mid-marketdeals

Australia



YTD31-Jul-08

House Value ($m)

Deal count

Value:


2 Deloitte 877 7

3 JPMorgan 547 4

4 GreshamAdvisoryPartners 541 3

5 KPMGCorpFin 486 7


7 Citigroup 419 3

8 UBS 334 2

9 Rothschild 306 3


Volume:


2 Deloitte 877 7

3 KPMGCorpFin 486 7

6 JPMorgan 547 4

4 GreshamAdvisoryPartners 541 3

5 Citigroup 419 3

7 Rothschild 306 3



10 KidderWilliams 225 3

Source:mergermarket

Thefinancialadviserleaguetablesbyvalueandvolumehavebeenrunfrom01January2008to31July2008andexcludelapsedandwithdrawndeals.Thetablescoverallsectorsandarebasedonthegeographyofeitherthetarget,bidderorsellerbeingAustralia

Top 10 Mid-market financial adviserss – Australia ($10mto$250m)

YTD31-Jul-08

House Value ($m)

Deal count

Value:





5 CorrsChambersWestgarth 839 7

6 Deacons 630 11


8 BlakeDawson 506 10

9 JonesDay 466 3


Volume:




4 Deacons 630 11


6 BlakeDawson 506 10


8 CorrsChambersWestgarth 839 7


10 Gilbert+Tobin 177 4

Source:mergermarket

Thelegaladviserleaguetablesbyvalueandvolumehavebeenrunfrom01January2008to31July2008andincludelapsedandwithdrawndeals.Thetablescoverallsectorsandarebasedonthegeographyofeitherthetarget,bidderorsellerbeingAustralia

Top 10 Mid-market legal adviserss – Australia ($10mto$250m)


Top 15 European announced deals for YTD 31 July 2008Announced Status Target company Sector Bidder company Seller company Exit multiples (x) Bid

premia1-day before

Deal value(€m)Revenue EBITDA P/E

06-Feb-08 P Rio Tinto plc Energy, Mining & Utilities

BHP Billiton Ltd 6.4 17.8 19.4 3.2% 130,061

30-Jan-08 C Philip Morris International Inc Consumer Altria Group Inc (Shareholders)

Altria Group Inc 2.0 11.5 18.0 - 71,922

31-Jul-08 P Union Fenosa SA Energy, Mining & Utilities

Gas Natural SDG SA

3.8 11.1 17.0 15.0% 22,839

15-Jul-08 P Continental AG (97.03% stake) Industrials & Chemicals

Schaeffler KG 1.4 9.1 10.8 6.6% 22,225

25-Jan-08 C Scottish & Newcastle plc Consumer Carlsberg A/S; and Heineken NV

3.2 22.6 22.7 4.4% 13,007

01-Feb-08 C Rio Tinto plc (12% stake) Energy, Mining & Utilities

Alcoa Inc; and Aluminum Corporation of China

5.4 14.9 20.5 21.1% 9,458

07-Apr-08 C Alcon Inc (24.85% stake) Pharma, Medical & Biotech

Novartis AG Nestle SA 7.0 18.6 25.3 -3.5% 6,746

31-Mar-08 C Vin & Sprit AB Consumer Pernod-Ricard SA

Government of Sweden

5.1 23.3 33.9 - 5,626

11-Jun-08 P Landesentwicklungsgesellschaft Nordrhein-Westfalen

Financial Services

The Whitehall Funds

Federal State of Nordrhein-Westfalen

n/a n/a - 5,585

15-Apr-08 C Neuf Cegetel SA (60.32% stake) TMT SFR SA Louis Dreyfus & Cie SA

2.6 11.8 29.0 0.8% 5,558

11-Jul-08 P Citibank Privatkunden AG & Co KGaA

Financial Services

Credit Mutuel SA Citigroup Inc n/a n/a 13.4 - 4,900

17-Apr-08 C KM Invest ZAO (50% stake) Financial Services

Interros Company

Onexim Group n/a n/a - 4,641

12-Jun-08 P Angel Trains Limited Financial Services

Access Capital Advisers; AMP Capital Investors Limited; Babcock & Brown; and Deutsche Bank AG

Royal Bank of Scotland Group plc

- 4,539

24-Jul-08 P E.On Sverige AB (44.60% stake); and Statkraft AS (Swedish hydropower plant)


E.ON AG Statkraft AS - 4,500

29-May-08 P Distrigaz SA Energy, Mining & Utilities

Eni G&P Belgium SpA

Suez SA 0.9 8.9 16.3 8.3% 4,052


EuropeEurope

Europe


Top 5 European announced deals of the month (July 2008)Announced Status Target company Sector Bidder company Seller company Exit multiples (x) Bid

premia1-day before


31-Jul-08 P Union Fenosa SA Energy, Mining & Utilities

Gas Natural SDG SA

3.8 11.1 17.0 15.0% 22,839

15-Jul-08 P Continental AG (97.03% stake) Industrials & Chemicals

Schaeffler KG 1.4 9.1 10.8 6.6% 22,225

11-Jul-08 P Citibank Privatkunden AG & Co KGaA

Financial Services

Credit Mutuel SA Citigroup Inc n/a n/a 13.4 - 4,900

24-Jul-08 P E.On Sverige AB (44.60% stake); and Statkraft AS (Swedish hydropower plant)


E.ON AG Statkraft AS - 4,500

03-Jul-08 Vasakronan Financial Services

AP Fastigheter AB Government of Sweden

n/a n/a 5.3 - 3,990


Top deals

Europe


League tables

value

YTD 31-Jul-2008

House Value (€m)

Deal count


2 JPMorgan 335,086 79



5 UBS 268,866 84



8 Lazard 217,051 62




12 ABN AMRO 173,383 44

13 HSBC Bank 161,043 22


15 SG 142,789 18


17 Gresham Advisory Partners 140,183 3

18 Centerview Partners 71,922 1

19 Moelis & Company 37,253 2

20 Mediobanca 32,113 25


YTD 31-Jul-2008

House Value (€m)

Deal count


2 Allen & Overy 262,543 106

3 McCarthy Tetrault 210,071 10

4 Sullivan & Cromwell 203,122 27

5 Skadden Arps Slate Meagher & Flom 183,948 31


7 Slaughter and May 147,810 32

8 Cravath Swaine & Moore 146,897 11



11 Lovells 139,231 48

12 Davies Ward Phillips & Vineberg 131,240 3



15 Johnson Winter & Slattery 130,061 1


17 Gibson Dunn & Crutcher 77,266 13

18 Hunton & Williams 71,928 2

19 Sutherland Asbill & Brennan 71,922 1

20 Latham & Watkins 59,129 37


YTD 31-Jul-2008

House Value (€m)

Deal count






6 UBS 268,866 84

7 JPMorgan 335,086 79




11 Lazard 217,051 62


13 Citigroup 303,156 58


15 ABN AMRO 173,383 44



18 BDO Corporate Finance 374 33

19 Close Brothers Group 2,604 31

20 M&A International 780 30


YTD 31-Jul-2008

House Value (€m)

Deal count




4 Allen & Overy 262,543 106


6 CMS 7,005 75

7 White & Case 29,367 71

8 Eversheds 2,557 66




12 Lovells 139,231 48

13 Vinge 29,438 48

14 Ashurst 29,830 47

15 Mannheimer Swartling 3,514 46

16 Cleary Gottlieb Steen & Hamilton 42,250 45

17 SJ Berwin 4,109 40

18 Osborne Clarke 2,624 40

19 Pinsent Masons 1,336 40

20 Latham & Watkins 59,129 37


volume

The financial adviser league tables by value and volume have been run from 01 January 2008 to 31 July 2008 and exclude lapsed and withdrawn deals. The tables cover all sectors andare based on the geography of either the target, bidder or seller being Europe

Top 20 financial advisers - Europe

value volume

The legal adviser league tables by value and volume have been run from 01 January 2008 to 31 July 2008 and include lapsed and withdrawn deals. The tables cover all sectors andare based on the geography of either the target, bidder or seller being Europe

Top 20 legal advisers - Europe

Europe


League tables

value volume

The private equity buyout activity tables by value and volume are based on private equity firms advising the bidder on buyout deals where the dominant geography of the target company is EuropeThe tables by value and volume have been run from 01 January 2008 to 31 July 2008 and exclude lapsed and withdrawn deals

Activity table of private equity firms on European buyouts

value volume

The private equity exit activity tables by value and volume are based on private equity firms advising the vendor on exit deals where the dominant geography of the target company is EuropeThe tables by value and volume have been run from 01 January 2008 to 31 July 2008 and exclude lapsed and withdrawn deals

Activity table of private equity firms on European exits

YTD 31-Jul-2008

House Value (€m)

Deal count

1 The Whitehall Funds 5,585 1

2 AMP Capital Investors 5,415 2

3 GS Capital Partners 5,061 4

4 Babcock & Brown 4,802 4


6 AlpInvest Partners 2,437 2

7 Candover Partners 2,437 1

8 Barclays Private Equity 2,390 6

9 DeA Capital 2,192 2

10 Apax Partners 2,125 4

11 Turkven Private Equity 2,120 2

12 BC Partners 2,120 1

13= Global Infrastructure Partners 2,107 1

13= Montagu Private Equity 2,107 1

13= UCIL 2,107 1


YTD 31-Jul-2008

House Value (€m)

Deal count

1 Investor 2,863 1


3 Canica 2,700 1

4 Marfin Investment Group Holdings 2,549 1

5 3i Group 2,400 24

6 Permira 1,631 1

7 Ventizz Capital Partners Advisory 1,179 1

8 Wendel Investissement 1,026 1

9= Compagnie Nationale a Portefeuille / Nationale Portefeuillemaatschappij

836 1

9= Eurazeo 836 1

9= Lehman Brothers Private Equity 836 1

9= One Equity Partners 836 1

13 Warburg Pincus 800 1

14 Bridgepoint Capital 792 3

15 EQT Partners 756 2


YTD 31-Jul-2008

House Value

Deal count

1 The Whitehall Funds 5,585 1

2 AMP Capital Investors 5,415 2

3 GS Capital Partners 5,061 4

4 Babcock & Brown 4,802 4


6 AlpInvest Partners 2,437 2

7 Candover Partners 2,437 1


9 DeA Capital 2,192 2

10 Apax Partners 2,125 4

11 Turkven Private Equity 2,120 2

12 BC Partners 2,120 1

13= Global Infrastructure Partners 2,107 1

13= Montagu Private Equity 2,107 1

13= UCIL 2,107 1


YTD 31-Jul-2008

House Value (€m)

Deal count

1 3i Group 2,400 24


3 LGV Capital 601 4

4 HgCapital 431 4

5 CapMan Group 50 4

6 Initiative et Finance 28 4

7 Bridgepoint Capital 792 3

8 Waterland Private Equity Investments 346 3

9 Lloyds TSB Development Capital 235 3

10 IK Investment Partners 226 3

11 BS Private Equity 200 3

12 ISIS Private Equity Partners 115 3

13 AtriA Capital Partenaires 73 3

14 LBO France 53 3

15 Argos Soditic 24 3


Europe


Trend graphs

European M&A quarterly trend

value volume


0

50,000

100,000

150,000

200,000

250,000

300,000

350,000

400,000

450,000

Q3 2008*

Q22008

Q12008

Q42007

Q32007

Q22007

Q12007

Q42006

Q32006

Q22006

Q12006

Q42005

Q3 2005

Q22005

Q12005

Q42004

Q32004

Q22004

Q12004

Q42003

Q32003

Q22003

Q12003

valu

e (€

m)

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

Q3 2008*

Q22008

Q12008

Q4 2007

Q32007

Q22007

Q12007

Q42006

Q32006

Q22006

Q12006

Q42005

Q32005

Q22005

Q12005

Q42004

Q32004

Q22004

Q12004

Q42003

Q32003

Q22003

Q12003

num

ber

of d

eals

European M&A quarterly private equity trend

value volume

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

90,000

100,000

Q3 2008*

Q22008

Q12008

Q42007

Q32007

Q22007

Q12007

Q42006

Q32006

Q22006

Q12006

Q42005

Q32005

Q22005

Q12005

Q42004

Q32004

Q22004

Q12004

Q42003

Q32003

Q22003

Q12003

valu

e (€

m)

European buyouts

European exits

0

50

100

150

200

250

300

350

400

Q3 2008*

Q22008

Q12008

Q42007

Q32007

Q22007

Q12007

Q42006

Q32006

Q22006

Q12006

Q42005

Q32005

Q22005

Q12005

Q42004

Q32004

Q22004

Q12004

Q42003

Q32003

Q22003

Q12003

num

ber

of d

eals

European buyouts

European exits

Europe


22.1%

5.9%

38.3%

1.8%

0.1%11.6%

0.7% 0.2%

2.8%


Consumer

TMT

Business Services

Financial Services


Construction


Leisure

Transportation

Agriculture

Defence

2.9%

12.2%

1.4%

Trend graphs

European M&A annual trends

value volume

0

200

400

600

800

1,000

1,200

2008 YTD20072006200520042003

valu

e (€

bn)

All European M&A

European buyouts

European exits

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

2008 YTD20072006200520042003

num

ber

of d

eals

All European M&A

European buyouts

European exits

European M&A sector breakdown YTD 2008

value volume


Consumer

TMT

Business services

Financial services


Construction


Leisure

Transportation

Agriculture

Defence

13.4%

10%

12.2%

7%

4.6%

5.9%

4.1%3.7%

0.8%0.3%

22.1%

15.9%


Consumer

TMT

Business Services

Financial Services


Construction


Leisure

Transport

Agriculture

Defence

Europe


Trend graphs

European M&A geographic breakdown YTD 2008

value volume

UK & Ireland

CEE

Nordic

Germany

France

Benelux

Italy

Iberia

SEE

Other

37.9%

8.4%

3.9%

4%

3.2%

15.5%

7.2%

10.3%

6.7%

3%

European M&A deal size breakdown

value volume

0

50

100

150

200

250

300

350

400

450

500

550

600

650

700

H22008*

H12008

H22007

H12007

H22006

H12006

H22005

H12005

H22004

H12004

H2 2003

H12003

valu

e (€

bn)

> €501m

€251m - €500m

€101m - €250m

€15m - €100m

€5m - €14.9m

0

500

1,000

1,500

2000

2,500

3,000

3,500

H22008*

H12008

H22007

H1 2007

H22006

H12006

H22005

H12005

H22004

H12004

H22003

H12003

num

ber

of d

eals

> €501m

€251m - €500m

€101m - €250m

€15m - €100m

€5m - €14.9m

Value not disclosed

UK & Ireland

CEE

Nordic

Germany

France

Benelux

Italy

Iberia

SEE

Other

25.4%

14%

11.5%9.8%

8.3%

6.8%

7.9%

7.2%

4.3%4.8%

Europe


Trend graphs

Transatlantic deals

value volume

0

20,000

40,000

60,000

80,000

100,000

120,000

Q3 2008*

Q22008

Q12008

Q42007

Q32007

Q22007

Q12007

Q42006

Q32006

Q22006

Q12006

Q42005

Q32005

Q22005

Q12005

Q42004

Q32004

Q22004

Q12004

Q42003

Q32003

Q22003

Q12003

valu

e (€

m)

Value deals European bidder acq North American target

Value deals Nth American bidder acq European target

Total Transatlantic activity

0

50

100

150

200

250

300

Q3 2008*

Q22008

Q12008

Q42007

Q32007

Q22007

Q12007

Q42006

Q32006

Q22006

Q12006

Q42005

Q32005

Q22005

Q12005

Q42004

Q32004

Q22004

Q12004

Q42003

Q32003

Q22003

Q12003

Num

ber

of d

eals

Value deals European bidder acq North American target

Value deals Nth American bidder acq European target

Total Transatlantic activity

Europe


Mid-market deals

Top 15 European announced mid-market deals of the month (July 2008) (€10m to €250m)





Seller company

Deal value(€m)

22-Jul-08 P Gunnebo Industrier AB


Handelsbanken Capital Markets

Gernandt & Danielsson

Segulah Advisor AB

D. Carnegie & Co

Cederquist; Hammarskiold & Co (Advising Nordic Mezzanine)

250

07-Jul-08 P Clickair SA Transportation Lazard Allen & Overy; Freshfields Bruckhaus Deringer

Vueling Airlines SA

Lehman Brothers

Cobra ACS; Iberia Lineas Aereas de Espana SA; Nefinsa SA; Orizonia; and Quercus Equity SL

250

21-Jul-08 P CompAir UK Ltd Industrials & Chemicals

Rothschild Eversheds; Macfarlanes

Gardner Denver Inc

Internal Baker & McKenzie; Bowman Gilfillan; Pinsent Masons

Alchemy Partners

249

09-Jul-08 C Marathon Oil Corporation (Heimdal and related assets)


Scotia Capital Centrica plc Marathon Oil Corporation

239

04-Jul-08 P Nord Anglia Education Plc

Business Services

Hawkpoint Partners

Addleshaw Goddard

Barings Private Equity Asia

UBS Clifford Chance

234

03-Jul-08 C Fluxys SA (12.50% stake)


Bredin Prat Ecofin Limited Suez-Tractebel SA

228

04-Jul-08 P TDG Plc (78% stake)

Business Services

Rothschild Linklaters Laxey Partners Ltd

Mayer Brown 227

31-Jul-08 C Fotowatio SL (49.50% stake)


Qualitas Equity Partners

Cuatrecasas - Goncalves Pereira, Castelo Branco

GE Energy Financial Services Inc; and Grupo Corporativo Landon SL

Allen & Overy; Garrigues

225

25-Jul-08 P Getronics PinkRoccade Nederland BV

Business Services

Capgemini SA Rabobank Clifford Chance; Latham & Watkins; Lazard

Getronics NV

225

30-Jul-08 C Sampletest-Consultoria e Gestao de Laboratorios Clinicas SA


Ambers & Co; Rothschild

Araoz & Rueda; Cuatrecasas - Goncalves Pereira, Castelo Branco

Labco Diagnostics Network

Atlas Capital Close Brothers

Mayer Brown; Rodes y Sala

3i Group Plc

220

21-Jul-08 P Galerias Primero Consumer Supermercados Sabeco SA

Caja de Ahorros de la Inmaculada de Aragon; and Nozar SA

200

02-Jul-08 C ZAO Spasskiye Vorota Insurance Group (75% stake)

Financial Services

Stolichnaya Strakhovaya Gruppa

194

Europe


Mid-market deals





Seller company

Deal value(€m)

09-Jul-08 P Banca Monte Parma Spa (49.27% stake)

Financial Services

Rothschild Gianni, Origoni, Grippo & Partners

Banca Sella Holding SpA; Cba Vita SpA; Fondazione di Piacenza e Vigevano; Fondazione Monte di Parma; and HDI Assicurazioni SpA

Studio Legale Avvocato Nicola Bianchi

Banca Monte dei Paschi di Siena SpA

192

28-Jul-08 P Utimaco Safeware AG

TMT Sophos Inc Deutsche Bank; UBS

Freshfields Bruckhaus Deringer (Advising Deutsche Bank)

Investcorp Technology Partners

185

01-Jul-08 P Metal Industry of Arcadia - C Rokas SA (47.30% stake)


Iberdrola Renovables SA

Credit Suisse Group

Uria Menendez

174


Europe


European M&A quarterly mid-market trend

value volume

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

45,000

Q3 2008*

Q22008

Q12008

Q42007

Q32007

Q22007

Q12007

Q42006

Q32006

Q22006

Q12006

Q4 2005

Q32005

Q22005

Q12005

Q42004

Q32004

Q22004

Q12004

Q42003

Q32003

Q22003

Q12003

valu

e (€

m)

0

100

200

300

400

500

600

700

Q3 2008*

Q22008

Q12008

Q42007

Q32007

Q22007

Q12007

Q42006

Q32006

Q22006

Q12006

Q42005

Q32005

Q22005

Q12005

Q42004

Q32004

Q22004

Q12004

Q42003

Q32003

Q22003

Q12003

num

ber

of d

eals


Mid-market deals

Europe


Mid-market league tables

YTD 31-Jul-2008

House Value (€m)

Deal count

value:



3 Deloitte 3,206 43



6 Lazard 2,777 29



9 UBS 2,272 16






15 ABN AMRO 1,354 16

volume:



3 Deloitte 3,206 43



6 Lazard 2,777 29



9 JPMorgan 2,127 20



12 UBS 2,272 16


14 ABN AMRO 1,354 16



YTD 31-Jul-2008

House Value (€m)

Deal count

value:




4 Allen & Overy 3,383 36



7 Weil Gotshal & Manges 2,247 21


9 CMS 1,995 29

10 Norton Rose 1,938 21

11 Travers Smith 1,820 22


13 Cuatrecasas - Goncalves Pereira, Castelo Branco

1,809 18

14 Dewey & LeBoeuf 1,803 15

15 Cleary Gottlieb Steen & Hamilton 1,752 13

volume:






6 Allen & Overy 3,383 36

7 CMS 1,995 29


9 Travers Smith 1,820 22

10 Mayer Brown 1,747 22

11 Weil Gotshal & Manges 2,247 21

12 Norton Rose 1,938 21

13 SJ Berwin 1,678 21

14 Ashurst 1,487 21



The financial adviser league tables by value and volume have been run from 01 January2008 to 31 July 2008 and exclude lapsed and withdrawn deals. The tables cover allsectors and are based on the geography of either the target, bidder or seller being Europe

Top 15 mid-market financial advisers – Europe(€10m to €250m)

The legal adviser league tables by value and volume have been run from 01 January2008 to 31 July 2008 and include lapsed and withdrawn deals. The tables cover allsectors and are based on the geography of either the target, bidder or seller being Europe

Top 15 mid-market legal advisers – Europe (€10m to €250m)


Taylor Nelson Sofres• On9July2008,WPP,thelistedUKbased

communicationsservicesgroup,launchedahostile

offertoacquireTNSfor£1.73incashplus0.1889

newWPPsharesforeachshareheld,valuingTNS’

entiresharecapitalatapproximately£1bn.Duetothe

unsolicitedoffer,GfK,thelistedGermany-basedmarket

researchgroupdroppeditsplansforamergerwithTNS

andinsteadconsideredanallcashoffer,involvingthe

GermanbusinessmanGuenterHerzandthelending

banksbehinditsabandonedmerger.Furthermore,a

Frankfurt-basedanalystwasreportedtohaveestimated

thatGfKwouldrequire€1.6bn($2.5bn)indebtfinancing

tomatchWPP’sbid,basedonGfKtakinga51%

shareholdingintheenlargedgroup.Asecondreport

predictedthatGfKneededacapitalincreaseandcredit

worth€315mtocompeteWPP’s€1.4bnoffer.

• However,itwasfarfromcertainthattheHerzfamily

couldaloneprovidetherequiredleveloffundingandis

rumouredthatGfKisconsideringapotentialjointbid

forTaylorNelsonSofreswithanumberofprivateequity

firmswhichwouldbeinthepositiontoprovidesufficient

financingforthedealtohappen.

Alliance & Leicester• On14July,BancoSantander,theSpanish-listed

commercialbank,launchedanoffertoacquireAlliance

&Leicester,thetroubledmortgagebank.Underthe

termsoftheagreement,A&Lshareholderswillreceive

1newSantandershareforeach3sharesheldexcluding

dividends.Buttheywillalsoreceiveaninterimdividend

ofGBp18forthefinancialyear2008.Theoffervalues

theentiresharecapitalofAlliance&Leicesterat

approximately£1.3bnandrepresentsapremiumof

36.4%toAlliance&Leicester’sclosingpriceof£2per

shareasof11July2008,thelasttradingpricepriorto

theformalannouncement.Alliance&Leicester’sshare

priceonedayaftertheannouncementrepresenteda

premiumofapproximately13%overtheofferprice.The

increasecanpartlybeexplainedtomarketspeculations

foracounterbidhelpedbyA&LshareholderStandard

Life,whichsaidthattheofferwasongiveawayterms

andislikelytoattractarivalbid.However,Credit

Agricole,whichpreviouslyheldtalkswithA&L,has

saidthatitsfreezeonnewacquisitionsstillstands.

Meanwhile,Santander’scampissaidtobeconfident

thatLloydsTSBwillnotbid.Resolutionhasruleditself

out.AcombinationofA&LandAbbeywillresultin959

branches,whichwillrepresentashareof7.6%inthe

UKmarket.Itisalsoexpectedtohavecombinedmarket

sharesinsavingsandunsecuredpersonalloansinthe

UKinexcessof8%.Adetailedanalysisconductedby

SantandersuggeststhattheacquisitionofA&Lwilllead

toannualisedcostsavings,ofmorethan£180mbefore

taxbytheendof2011.

UK’s Retail Sector• PhoenixEquityPartnersandSiriusEquity,theUKbased

privateequityfirms,haveacquiredanapproximate70%

stakeinL.K.Bennett,theUKbasedfashionbrandfor

anestimatedconsiderationbetween£80mand£100m,

fromLindaBennett,theownerofL.K.Bennett.Linda

Bennettwillremainasanonexecutivedirectorandwill

alsoretaina30%stakeinthecompany.Aspartofthe

transaction,RobertBensoussan,co-founderofSirius,will

joinLKBennettasChairman.Phoenixwillusealowlevel

ofleverageinthedeal,whichisbeingfinancedwithonly

30percentofdebtfromasinglebank.

• ThissaleincombinationwithSomerfields’saleto

Co-operativeGroupfor£1.5bnreflectswillingnessfor

investmentsintheretailsectordespitethegloomy

market.SinceJanuary2008,therehavebeen43deals

intheretailsector,valuedatapproximately€5.4bn.

Somerfieldoperatesaround900groceryoutlets,andhas

reportedunauditedrevenuesof£4.2bn($8.4bn)forthe

financialyearendingApril2008.

UK

UK


Dealofthemonth

Target: TaylorNelsonSofresPlc Announced: 9July2008

Bidder: WPPGroupPlc Deal value: €1,801m

Seller: Deal nature: Contested,Hostile,DomesticPublic

Description• WPPGroupPlc,theUK-listedcommunicationsservices

grouphasmadeanoffertoacquireTaylorNelson

SofresPlc,theUK-listedmarketinformationandinsight

company.

Terms• TNSshareholderswillreceiveGBp173incashplus

0.1889newWPPsharesforeachshareheld.

• TheofferisvaluedatGBp260.6persharebasedupon

WPP’sGBp464closingpriceon8July2008,lasttrading

daypriortotheannouncementoftheoffer.

• TheoffervaluestheentiresharecapitalofTNSat

£1,076m.

• Itrepresentsapremiumof5.08%toTNS’closingprice

ofGBp248on08July2008,thelasttradingpricepriorto

theformalannouncement.

• Itrepresentsapremiumof21.21%totheclosingpriceof

GBp215on2April2008,thelasttradingdaypriortothe

dateoftheannouncementbyTNSthatithadreceivedan

approachregardingapossibleofferforTNS.

Financing

• ThecashconsiderationpayableundertheWPPOfferis

beingfinancedbynewdebtfacilitieswhichhavebeen

arrangedwithWPP’srelationshipbanks.

Background• On29April2008,TNSandGfKAG,theGermanlisted

marketinformationgroup,announcedtheywereintalks

regardingapossiblemergerofequals;

• On5May2008,TNSmadeanannouncementthatit

hadreceivedanunsolicitedproposalfromWPPthatit

subsequentlyrejected;

• On2July2008WPPmadearevisedproposaltoTNS,the

termswerethesameasthosecurrentlyannounced;

• On3July2008TNSannouncedanil-premiummerger

ofequalswithGfKAG,theGermanlistedmarket

informationgroup.

Conditions• Min90%acceptances

• TNSshareholdersrejectingtheproposedGfK/TNSmerger

• ECRegulatoryapproval

• HSRregulatoryapproval

• Relevantregulatoryapprovals

UK


Dealofthemonth

Advisers


Financial JPMorganCazenove Financial GoldmanSachsMerrillLynchPerellaWeinbergPartner

Legal FreshfieldsBruckhausDeringer Legal Allen&OveryCliffordChance

PR BrunswickGroup PR BuchananCommunicationsBarabino&PartnersCNC


Multiples Value (€m) Offer price per share (€m) 3.28

Revenue 1.2x 1453.44 1 day before 5.08%

EBITDA 10.0x 179.69 1 month before 1.5%

EBIT 12.9x 139.8 1 day after -5.15%

Earnings 18.4x 79.64 Pre-rumour 20%


06-Aug-08 TNS:WPPquestionsbenefitofraisingbidtogainTNSrecommendation,expectstoextendacceptancedeadline

11-Jul-08 TNS:GfKconsideringbidinvolvingGuenterHerzandbanksbehindabandonedmerger,mayneedsupportfromfamilywealthfundsorprivateequity-sources

08-Jul-08 TNS:WPPwilllooktohedgefundsifitgoeshostiletomorrow;otheroptionistowalkaway

04-Jul-08 TNS:WPPtolditmayneedtoraisebidbeforegoinghostile;mix-and-matchfacilitypossible,sourcessay

03-Jul-08 TNSshareholdersprefersubstantialcashcomponentfromWPP,bankersandshareholderssay

26-Jun-08 TNS:WPPunmovedbyTNSprospectus;willannouncenextmovewithinfortnight

20-Jun-08 WPPnextmoveexpectedafterGfK/TNSprospectus

11-Jun-08 TNSdeliversinformationtoWPP;believedtobesufficientforbid

10-Jun-08 TNStoprovideWPPwithcertainduediligenceinformationwithindays;TNSEGMexpectedtobeheldthreeweeksafterprospectuspublishedinlateJune

06-Jun-08 TNSbidraisestalkofpotentialWPPconvertiblebond,butlessfavourabletermscastdoubt

09-May-08 TNS:WPPcouldappealTakeoverPanelruling,independentlawyersays;AllenandOveryprovidinglegaladvice

08-May-08 GfK/TNSboardsarearoundtwoweeksfromagreeingterms;WPPfirstapproachedTNSinlateMarch

UK



Offer timetable Date Notes

HSR(USA) 30calendardayswaitingperiod;further30calendardaysfollowingcompliancewiththerequestforadditionalinformation

ECNotification 25/35tradingdaysforphase-1decision,further90/105tradingdaysifreferredtophase-2

LastdateforArt.9/Art.22request

15tradingdaysfromECnotification

Lastdayforremedieswithinphase1

20tradingdaysfromECnotification,willcause10tradingdaysextensionifremediessubmitted

Art.9/Art.22decision 10tradingdaysfromrequest

ECDecision 25/35tradingdaysforphase1decision,further90/105tradingdaysifreferredtophase2

Offer Timetable

Putuporshutup 09-Jul-08 y referstotakeoverpaneldeadlinetomakeaformalofferorwithdraw,formaloffermade

Announcement 09-Jul-08 y Fromcompany

Offerperiodcommences

01-Aug-08 y latest28calendardaysfromfirmannouncement,offerdocumentissuedsameday

Day21 22-Aug-08 minimumpermittedclosingdate

Day39 09-Sep-08 lastdayfortarget'sstatement

Day46 16-Sep-08 lastdayforcompetingofferorrevisedoffer

Day60 30-Sep-08 lastdaytodeclareofferunconditionalastoacceptances

Offerresults 01-Oct-08 nexttradingdaysfromclosingdate

Settlement 14-Oct-08 latest14calendardaysafterclosingdate

Day81 21-Oct-08 lastdaytodeclareofferwhollyunconditional

Offer Timetable

TNSex-div 21-May-08 Y referstoPreliminarydividendofGBp3.90pershare

WPPex-div 04-Jun-08 Y referstoPreliminarydividendofGBp9.13pershare

TNSdividendpayment

04-Jul-08 Y referstoPreliminarydividendofGBp3.90pershare

WPPdividendpayment

07-Jul-08 Y referstoPreliminarydividendofGBp9.13pershare

TNSInterimReport08

29-Aug-08 referstointerimresults2008

Dealofthemonth

UK


Topdeals

Top 15 UK announced deals for YTD 31 July 2008Announced Status Target Company Sector Bidder company Seller company Exit multiples (x) Bid premia


(€m)Revenue EBITDA P/E

6-Feb-08 P RioTintoplc Energy,Mining&Utilities

BHPBilliton 6.4 17.8 19.4 3.2% 130,061

25-Jan-08 C Scottish&Newcastleplc

Consumer CarlsbergAS;andHeinekenNV

3.2 22.6 22.7 4.4% 13,007

1-Feb-08 C RioTintoplc(12%stake)


AlcoaInc;andAluminumCorporationofChina

5.4 14.9 20.5 21.1% 9,458

12-Jun-08 P AngelTrainsLimited FinancialServices

AccessCapitalAdvisers;AMPCapitalInvestorsLimited;Babcock&BrownEuropeanInfrastructureFund;andDeutscheBankAG

RoyalBankofScotlandGroupplc

- - - - 4,539

25-Jun-08 C Barclaysplc(10%stake)

FinancialServices

ChallengerUniversalLimited;andQatarInvestmentAuthority

n/a n/a 3.9 -9.3% 2,896

17-Apr-08 C ExproInternationalGroupPlc


AlpInvestPartnersNV;CandoverPartnersLimited;andGSCapitalPartners

3.2 12.6 33.3 22.2% 2,473

8-Feb-08 C BiffaPlc Industrials&Chemicals

MontaguPrivateEquityLLP;GlobalInfrastructurePartners;andUCIL

1.9 9.4 19.9 6.7% 2,107

16-Jul-08 P SomerfieldLtd Consumer TheCo-operativeGroupLimited

0.4 8.1 - - 1,973

9-Jul-08 P TaylorNelsonSofresPlc

BusinessServices

WPPGroupPlc 1.2 10.0 18.4 5.1% 1,796

14-Jul-08 P Alliance&LeicesterPlc

FinancialServices

SantanderCentralHispanoSA

n/a n/a 4.6 36.4% 1,672

14-Apr-08 P EnodisPlc Industrials&Chemicals

ManitowocCompanyInc

1.4 13.6 27.7 42.0% 1,663

10-Jun-08 P EurasianNaturalResourcesCorporationPlc(7.7%stake)


Kazakhmysplc GovernmentofKazakhstan

7.3 17.5 30.9 -0.2% 1,651

8-May-08 L EnodisPlc Industrials&Chemicals

IllinoisToolWorksInc

1.3 12.0 24.0 15.0% 1,465

26-Mar-08 C JaguarLimited;andLandRoverLimited


TataMotorsLimited FordMotorCompany

- - - - 1,452

8-May-08 P TheCarphoneWarehouseGroupPlc(retailbusiness)(50%stake)

Consumer BestBuyCoInc TheCarphoneWarehouseGroupPlc

0.6 7.1 10.6 - 1,381

C=Completed;P=Pending;L=Lapsed Energy,Mining&Utilities

UK


Top 5 UK announced deals of the month (July 2008)Announced Status Target company Sector Bidder company Seller company Exit multiples (x) Bid premia



16-Jul-08 P SomerfieldLtd Consumer TheCo-operativeGroupLimited

0.4 8.1 - - 1,973

9-Jul-08 P TaylorNelsonSofresPlc

BusinessServices

WPPGroupPlc 1.2 10.0 18.4 5.1% 1,796

14-Jul-08 P Alliance&LeicesterPlc

FinancialServices


n/a n/a 4.6 36.4% 1,672

28-Jul-08 P TescoPersonalFinance(50%stake)

FinancialServices

TescoPlc RoyalBankofScotlandGroupplc

n/a n/a 8.6 - 1,203

28-Jul-08 P DeticaGroupPlc BusinessServices

BAESystemsPlc 2.6 16.6 34.1 18.2% 657


Topdeals

UK


Pipeline of UK expected dealsSituation Target company Sector Potential

bidder company


Seller company Market cap/est. value (€m)

Comments

Expecteddeal

BritishEnergy Energy,Mining&Utilities

ElectricitedeFranceSA;

UBS(T);NMRothschild(T);MerrillLynch(B);GleacherPartners/GleacherShacklock;

6,520 ElectricitedeFrance(EdF)isthepreferredbidderforBritishEnergyonbehalfofboththeUKgovernment(BE'slargestshareholder)andBritishEnergyitself,accordingtopeoplefamiliarwiththesituation.

Expecteddeal

LonminPlc Energy,Mining&Utilities

XstrataPlc DeutscheBank(B);MacquarieGroup(B);Citigroup(T)

6,499 XstrataannouncedanunsolicitedhostileproposedcashoffertoacquireLonmin,forGBP33pershare.

Expecteddeal

InfineumInternational


JPMorgan(T) 2,000 TheprivateequitygroupsTPGCapital,CarlyleGroup,CinvenandKohlbergKravisRoberts(KKR)areamongthepartiestohaveeithersubmittedGBP1.5bn(EUR1.8bn)offerforInfineumorarelikelytodososoon.ApolloManagement,BainCapital,BCPartnersandVestarCapitalPartners,thebuyoutgroups,arealsosaidtobeinterestedinbiddingforInfineum.On16June,TheTimesreportedthatthejointventureisonthevergeofsalecompletion.

Expecteddeal

TaylorNelsonSofresPlc

GFKGroup GoldmanSachs(B);MerrillLynch(B);PerellaWeinbergPartners(B);DeutscheBank(T);JPMorganCazenove(T)

1,297 GfK,theGermanmarketresearchgroup,haddiscussionswithApaxPartnersregardingfinancingforatakeoverbidforTaylorNelsonSofres(TNS),accordingtotheonlineeditionofTheTimesreported.On5August,GFKissuedtoTNSshareholdersadefencedocument,whichexplainstheTNSboard'srationaleforturningdowntheWPPbid.

Expecteddeal

InformaPlc TMT TheCarlyleGroup;Hellman&FriedmanLLC;ProvidenceEquityPartnersInc;CinvenLtdandCandoverInvestmentsplc

Greenhill&Co(T);JefferiesGroup,Inc.(B);JPMorgan(B);UBS(B)

2,713 On26June2008,ProvidenceEquityLLP,TheCarlyleGroupandHellman&FriedmanmadeaproposalforInforma,atapriceofGBp506penceperInformaordinaryshare.

Expecteddeal

CollinsStewart FinancialServices

287 On6August,CollinsStewartreceivedapreliminaryapproachfromathirdpartywhichitisconsidering.

Expecteddeal

WhiteYoungGreenplc(WHY)

"FinancialServices

Rothschild(T) 222 Grontmij,theNetherlands-basedconsultinggroup,wasmentionedasapotentialbidderfortheUK-listedrivalWhiteYoungGreen,accordingtoaTimesreport.


Expecteddeals

UK


Leaguetables

value

YTD 31- Jul-2008

House Value (€m)

Deal count


2 UBS 163,801 33


4 JPMorganCazenove 158,049 30








12 ABNAMRO 135,635 14

13 Lazard 135,403 10

14 HSBCBank 133,937 8


Source:mergermarket

volume

Thefinancialadviserleaguetablesbyvalueandvolumehavebeenrunfrom01January2008to31July2008andexcludelapsedandwithdrawndeals.Thetablescoverallsectorsandarebasedonthegeographyofeitherthetarget,bidderorsellerbeingUK

YTD 31- Jul-2008

House Value (€m)

Deal count



3 Deloitte 4,073 46



6 UBS 163,801 33


8 BDOCorporateFinance 356 27





13 Citigroup 141,073 19

14 GrantThorntonCorporateFinance 1,038 19


Source:mergermarket

Top 15 financial advisers - UK

value

YTD 31- Jul-2008

House Value (€m)

Deal count




4 SlaughterandMay 142,433 28




8 Lovells 135,424 27

9 CravathSwaine&Moore 134,076 5


11 DaviesWardPhillips&Vineberg 131,205 2


13= BlakeDawson 130,061 1

13= JohnsonWinter&Slattery 130,061 1


Source:mergermarket

volume

Thelegaladviserleaguetablesbyvalueandvolumehavebeenrunfrom01January2008to31July2008andincludelapsedandwithdrawndeals.Thetablescoverallsectorsandarebasedonthegeographyofeitherthetarget,bidderorsellerbeingUK

YTD 31- Jul-2008

House Value (€m)

Deal count

1 DLAPiper 2,640 60






7 OsborneClarke 2,882 40

8 PinsentMasons 1,336 39

9 Ashurst 28,471 36

10 TraversSmith 4,419 35

11 AddleshawGoddard 3,857 31

12 Hammonds 2,232 30


14 JonesDay 4,943 28

15 Olswang 823 28

Source:mergermarket

Top 15 legal advisers - UK

UK


Leaguetables

value

YTD 31- Jul-2008

House Value (€m)

Deal count

1 Babcock&Brown 4,802 2

2 AMPCapitalInvestors 4,539 1

3= AlpInvestPartners 2,437 1

3= CandoverPartners 2,437 1


6= GlobalInfrastructurePartners 2,107 1

6= MontaguPrivateEquity 2,107 1

6= UCIL 2,107 1

9 CharterhouseCapitalPartners 906 2

10 3iGroup 814 6

Source:mergermarket

volume

TheprivateequitybuyoutactivitytablesbyvalueandvolumearebasedonprivateequityfirmsadvisingthebidderonbuyoutdealswherethedominantgeographyofthetargetcompanyisUKThetablesbyvalueandvolumehavebeenrunfrom01January2008to31July2008andexcludelapsedandwithdrawndeals

YTD 31- Jul-2008

House Value (€m)

Deal count

1 LloydsTSBDevelopmentCapital 170 8

2 3iGroup 814 6

3 ISISPrivateEquityPartners 82 5

4 PhoenixEquityPartners 297 4

5 InvestecGroup - 4

6 ECIPartners 185 3

7 RJDPartners 85 3

8 BankofScotlandCorporate 67 3

9 Endless 44 3

10 AberdeenAssetManagers 26 3

Source:mergermarket

Activity table of private equity firms on UK buyouts

value

YTD 31- Jul-2008

House Value (€m)

Deal count

1 BridgepointCapital 792 2

2 CCMPCapitalAdvisors 719 1

3 Investcorp 619 1

4 LGVCapital 601 4

5 HgCapital 431 4

6 3iGroup 343 9

7 Gresham 263 2

8 AlchemyPartners 249 1

9 ElectraPartners 237 1

10 PhoenixEquityPartners 200 1

Source:mergermarket

volume

TheprivateequityexitactivitytablesbyvalueandvolumearebasedonprivateequityfirmsadvisingthevendoronexitdealswherethedominantgeographyofthetargetcompanyisUKThetablesbyvalueandvolumehavebeenrunfrom01January2008to31July2008andexcludelapsedandwithdrawndeals

YTD 31- Jul-2008

House Value (€m)

Deal count

1 3iGroup 343 9

2 LGVCapital 601 4

3 HgCapital 431 4

4 ISISPrivateEquityPartners 115 3

5 BridgepointCapital 792 2

6 Gresham 263 2


8 BPMarsh&Partners 110 2

9 NBGIPrivateEquity 104 2

10 PrimaryCapital 98 2

Source:mergermarket

Activity table of private equity firms on UK exits

UK


Trendgraphs

UK M&A quarterly trends

value volume


0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

180,000

Q32008*

Q2 2008

Q1 2008

Q42007

Q32007

Q22007

Q12007

Q42006

Q32006

Q22006

Q12006

Q4 2005

Q32005

Q22005

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Q22004

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Q3 2003

Q22003

Q12003

valu

e (€

m)

0

50

100

150

200

250

300

350

400

Q32008*

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Q42007

Q32007

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Q4 2004

Q3 2004

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Q22003

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num

ber

of d

eals

UK M&A quarterly private equity trends

value volume

0

10,000

20,000

30,000

40,000

50,000

Q32008*

Q22008

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valu

e (€

m)

UK buyouts

UK exits

0

20

40

60

80

100

Q3 2008*

Q22008

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Q32007

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Q1 2004

Q42003

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num

ber

of d

eals

UK buyouts

UK exits

UK


Trendgraphs

UK M&A annual trends

value volume

0

50

100

150

200

250

300

2008 YTD20072006200520042003

valu

e (€

bn)

All UK M&A

UK buyouts

UK exits

0

300

600

900

1200

1500

2008YTD2007 2006200520042003

num

ber

of d

eals

All UK M&A

UK buyouts

UK exits

UK M&A sector breakdown YTD 2008

value volume

69.9%

0.5% 3.2%

1.9%4.8%

9.7%

7.5%

0.7%

1.5%

0.2%

Transportation

Business services

Industrial & Chemicals

TMT

Consumer

Financial services

Leisure

Construction



Transportation

Business services


TMT

Consumer

Financial services

Leisure

Construction



Defence

5.3%

5.4%

4.9%

2.4%2.9%0.4%

17.4%

17.9%

14.4%11.7%

6.3%

UK


Mid-marketdeals

Top 10 UK announced mid market deals of the month (July 2008)(€10mto€250m)Announced Status Target company Sector Target/seller financial

adviserTarget/seller legal adviser



Seller company

Deal Value(€m)

21-Jul-08 P CompAirUKLtd Industrials& Chemicals

Rothschild Eversheds;Macfarlanes

GardnerDenver,Inc

Internal Baker&McKenzie;BowmanGilfillan;PinsentMasons

AlchemyPartnersLLP

249

4-Jul-08 P NordAngliaEducationPlc

BusinessServices

HawkpointPartners AddleshawGoddard

BaringsPrivateEquityAsia

UBS CliffordChance

234

4-Jul-08 P TDGPlc(78%stake)

BusinessServices

Rothschild Linklaters LaxeyPartnersLtd MayerBrown

227

28-Jul-08 P BonarFloorsLimited

Consumer ABNAMRO FreshfieldsBruckhausDeringer

ForboHoldingAG Internal HerbertSmith/GleissLutz/Stibbe;Internal

Low&BonarPlc

156

9-Jul-08 C Education&AdventureTravelGroupLtd.

Leisure LivingstonePartners DLJMerchantBankingPartners

CreditSuisse;Deloitte

Eversheds BowmarkCapital

126

9-Jul-08 P RavenRussiaPropertyAdvisorsLimited;RavenRussiaPropertyManagementLimited

FinancialServices

PricewaterhouseCoopersCorpFin

RavenRussiaLimited

NumisSecurities RavenMountplc

124

19-Jul-08 C L.K.BennettLtd(70%stake)

Consumer AresCapital;Rothschild BerwinLeightonPaisner;Hammonds;Lovells

PhoenixEquityPartnersLimited;SiriusEquity

HawkpointPartners

TraversSmith

LindaBennett(Privateinvestor)

101

22-Jul-08 P F&CREITAssetManagementLLP(70%stake)

FinancialServices

Olswang F&CAssetManagementPlc

FenchurchAdvisoryPartners

NortonRose

76

1-Jul-08 P VitacressSaladsLimited

Agriculture RAR-SociedadedeControle(Holding)S.A.

66

11-Jul-08 P nCipherPlc. BusinessServices

Jefferies&Company;PanmureGordon&Co

SlaughterandMay

ThalesHoldingsUKPlc

Rothschild Lovells HermesFocusAssetManagersLimited;Legal&GeneralInvestmentManagement

63


UK


UK M&A quarterly Mid-market trend

value volume

0

2,a000

4,000

6,000

8,000

10,000

12,000

Q32008*

Q2 2008

Q1 008

Q42007

Q3 2007

Q2 007

Q 2007

Q42006

Q3 2006

Q2 2006

Q12006

Q4 2005

Q3 005

Q2 2005

Q1 2005

Q4 2004

Q32004

Q2 2004

Q1 2004

Q4 2003

Q3 2003

Q2 2003

Q1 2003

valu

e (€

m)

0

50

100

150

200

250

Q3 2008*

Q22008

Q1 2008

Q42007

Q32007

Q22007

Q12007

Q4 2006

Q3 2006

Q2 2006

Q1 2006

Q4 2005

Q3 2005

Q2 2005

Q12005

Q4 2004

Q3 004

Q2 2004

Q1 004

Q4 2003

Q3 2003

Q2 2003

Q12003

num

ber

of d

eals


Mid-marketdeals

UK



YTD 31- Jul-2008

House Value (€m)

Deal count

Value:


2 Deloitte 2,270 28




6 UBS 1,310 8

7 Jefferies&Company 956 10

8 CloseBrothersGroup 879 7

9 DeutscheBank 843 6

10 HawkpointPartners 760 7

Volume:

1 Deloitte 2,270 28





6 InvestecInvestmentBanking 674 13

7 GrantThorntonCorporateFinance 421 12

8 CenkosSecurities 364 11

9 Jefferies&Company 956 10

10 UBS 1,310 8

Source:mergermarket

Thefinancialadviserleaguetablesbyvalueandvolumehavebeenrunfrom01January2008to31July2008andexcludelapsedandwithdrawndeals.Thetablescoverallsectorsandarebasedonthegeographyofeitherthetarget,bidderorsellerbeingUK

Top 10 mid-market financial advisers - UK(€10mto€250m)

YTD 31- Jul-2008

House Value (€m)

Deal count

Value:


2 DLAPiper 2,065 38





7 Macfarlanes 1,326 13

8 Ashurst 1,228 17



Volume:

1 DLAPiper 2,065 38




5 Hammonds 516 20

6 OsborneClarke 648 18

7 Ashurst 1,228 17

8 Olswang 778 17



Source:mergermarket

Thelegaladviserleaguetablesbyvalueandvolumehavebeenrunfrom01January2008to31July2008andincludelapsedandwithdrawndeals.Thetablescoverallsectorsandarebasedonthegeographyofeitherthetarget,bidderorsellerbeingUK

Top 10 mid-market legal advisers - UK(€10mto€250m)


Germany

Schaeffler’s “sneaky” low-ball bid for Continental highlights significant loophole in German takeover law• Germanyandhostilebidarenottermsonewould

considerassynonymous.Wewouldhavetoturnbackthe

clockto1991,whenGermansteeltitanKrupptookover

itslocalrivalHoesch,tofindthelasttrulyhostiletakeover

inGermany.Thesecompanieswouldhitthelimelight

againinthelate90’swhenthecombinedKrupp-Hoesch

groupannouncedplansforahostiletakeoverofitsmain

competitor,Thyssen.Aftersufferingthebacklashof

employeesandthepublic,thecompanieshadtoagreeto

a“friendly”merger.Acountryrifewithpoliticalandunion

intervention,Germanyisdefinitelynotreadyforhostility

aroundthe“merger-table”.

• Thistrendisbeginningtoturn,notbecausethemoodhas

suddenlygonehostile-butbywayofclevermanoeuvring

bylargecorporationswhichsomehavelikenedtothe

dealingprowessusuallyonlyassociatedwithprivate

equityhouses.UpstepsportscarmakerPorsche–the

companyamassedacontrollinginterestinlargerpeer

Volkswagenbyusingderivativestogainitsstranglehold

withouthavingtodiscloseitsactualshareholdinginits

target.

• NowSchaeffler,theGermanball-bearingcompany,has

builta36%stakeintires-to-brakesfirmContinentalby

wayofcash-settledequity-swapderivatives.Should

Schaefflerbesuccessfulintakingoveracompany

aboutthreetimesitssize,Maria-ElisabethSchaeffler

wouldcreatethelargestauto-partssupplierintheworld.

ContinentalwasquicktorejectSchaeffler’s“sneaky”

approach,withManfredWennemer,Conti’schief

executive,dismissingtheofferas“egoistic,high-handed

andirresponsible”–leadingtothebidgoinghostile.

• Schaefflerownsapproximately13mContinentalshares,

orabout8%ofthesharecapital,andwiththeswap

contracts,arrangedbetweenMarch25andMay23

ofthisyearbyMerrillLynch(incidentallythesame

investmentbankusedbyPorscheinits“creeping

takeover”ofVolkswagen)canincreaseitsstaketo36%.

AccordingtoGermantakeoverlaw,onceashareholding

surpasses30%amandatoryofferforalloftheshares

mustbelaunched-buthavingalreadylaunchedaformal

offerforallofContinentalsshares-Schaefflerwill

subsequentlybeabletokeepstakebuildingwithout

havingtodiscloseitsshareholding.Thecurrentoffer,

whichisthelowestpossibleamountallowedunder

Germanlaw,istheaverageclosingpriceofContishares

overthelastthreemonthsandstandsat€70.12pershare

valuingContinentalatapproximately€11.3bn.Schaeffler

hasbeenabletosidestepGermandisclosurelaws,thus

avoidinganyeffectthatnewsofitsstakebuildingwould

havehadonContinental’sshareprice.Again,wecan

drawparallelsherewithPorsche’spurposelylowball

bidforVolkswagen,whichendedupfailing,allowingthe

companytokeepstakebuildingunchallenged.

• Schaefflerhasstatedveryclearlythatitdoesnot

aimtotakefullcontrolofContinentalatthispoint–

especiallyconsideringthatdoingsowouldresultintax

disadvantagesaswellashigherrefinancingcostsfor

the€12bncreditlineContinentalarrangedtobuyauto

electronicsbusinessSiemensVDOlastyear.Infact,it

appearsthatitisexactlythispurchasewhichhasthrown

Continentalintoitscurrentpredicament.Thecompany’s

sharepricehassufferedastonishinglosses,fallingfrom

aclosingpriceof€108.5pershareonedaypriortothe

purchaseofVDOto€65.3pershareonedaypriorto

Schaefflermakingitsintentionspublic.Thisisanamazing

dropofalmost40%,allowingSchaefflertolaunchits

offeronthecheap–aidedofcoursebythefactthat

theydonothavetopayapremiumbecauseoftheswap

positionsheld.

• AlthoughContinentalhashiredanarmadaofthetop

investmentbankstodefendagainstwhatitdescribes

asan“illegal”movebySchaeffler–itwouldappearthat

alltheyaredoingisprolongingtheinevitable,leaving

thecompanyintheuncomfortablepositionofhaving

toexplaintoitsshareholderswhytheyhavespentvast

sumsofmoneyonadvisoryfeesfornodefenceplan.

PotentialwhiteknightslikeJapan’sBridgestoneseem

fewandfarbetween;ascompetitorsarebusyensuring

theirbalancesheetsarenotstretchedgiventhedifficult

marketconditions.Privateequitycompanieswould

nothavebeenabletoofferanysignificantpremiums

inanexpensivecreditmarket,especiallyconsidering

thatSchaeffleralreadyhasonefootupwithapotential

controllinginterestofabout36%.Socouldtheadvisors

realisticallyhavebeenexpectedtofindadifferentsuitor

forContinental?Highlyunlikely.

Germany


• Apoisonpillthen?Again,thisdoorseemsfirmlyshut

–andhasalreadybeenruledoutbyContinental.Not

surprisingasacapitalincreasetotryanddiluteSchaeffler’s

stakewouldnotgodownverywellwithalreadyirritated

investors;whilesellingoffkeypartsofthebusiness

ormakingyetanotherexpensiveacquisitioncannotbe

consideredasrealisticpossibilities–leavingContinental

virtuallydefenceless.

Despitethis,therehavebeenwhispersthatSchaefflermight

considerraisingitsbidto€75pershare–anofferthat

surelymustbeconsideredawasteofmoney.Continental

hasnopossiblewayofdefendingagainstSchaeffler,

whichhaspromisednolayoffsorsubstantialchangesto

Continentalscurrentstrategy,takingacontrollingstake

inthebusiness.Sowhyincreasetheoffer?Anymove

increasingtheofferpricemustbeconsideredasan

attempttohelpContinentalsaveface–orperhapsfriendly

mergersarestilltheorderofthedayinGermany,with

Schaefflerseeminglyreadytopaya“friendlypremium”for

itsGermancounterpart.

• Whateverthereason,examplessuchasPorsche/VW,

andnowSchaefflerandContinentalareclearcasesfor

arevampofGermandisclosurerules,whichcurrently

seemtobeallowingforcompaniestotakecontrolof

targetsbyinexpensivemeans.Continentalhasreported

Schaeffler’sswapoptionstoBaFin,Germany’sregulatory

body,inanattempttopreventSchaefflerfromexecuting

theswaps.ItwouldseemthatBaFinisContinental’slast

hopeofavoidingadealshouldtheregulatorcomedown

heavyonSchaefflerforabreachinreportingrequirements.

Continentalshareholdersshouldhoweverbeawareofthe

factthatsuchbreacheshaveusuallygoneunpunishedin

Germany,andarebetteroffjumpingatanofferof€75per

share;providedtherumoursofSchaefflerincreasingitsbid

areindeedtrue.

Germany


Target: ContinentalAG Announced: 15July2008

Bidder: SchaefflerKG Deal value: € 22,225m

Seller: - Deal nature: Recommended;Domestic;Public

Description• SchaefflerKG,theprivatelyownedGermanmanufacturer

ofprecisionproducts,haslaunchedavoluntarypublic

offerforContinentalAG,theGermanlistedautomotive

group

Structure

• Thetransactionwillbeconductedviaavoluntarypublic

offer

Terms

• ContinentalAGshareholderswillreceive€70.12incash

pereachshareheld

• TheoffervaluestheentiresharecapitalofContinentalat

€11,341m

• Itrepresentsapremiumof6.57%toContinental’sclosing

priceof€65.80on14July2008,thelasttradingprice

priortotheformalannouncement

Holdings and Irrevocables

• SchaefflerKGcurrentlyholds2.97%ofthesharesin

Continental

• SchaefflerKGisentitledtoacquireafurther4.95%of

Continentalunderfinancialinstruments

• SchaefflerKGhasenteredintoswaptransactions

regardingapproximately28%ofthesharesin

Continental.Theseswaptransactionsmaybeterminated

bySchaefflerKGatanytime.SchaefflerKGhasnotyet

decidedifandwhentheywillbeterminated.Ifitdecides

toterminatetheswaptransactionsduringtheacceptance

periodortheadditionalacceptanceperiod,upto28%of

thesharesinContinentaltherefromcouldbeofferedtoit

underthetakeoverofferfollowingsuchtermination

Conditions

• Relevantregulatoryauthorities

Germany

Dealofthemonth

Germany


Dealofthemonth

Exit multiples – Y/E 31/12/2007

Multiples Value (€m)

Revenue 1.4x 16,619

EBITDA 9.1x 2,491

EBIT 13.5x 1,676

Earnings 10.8x 1,050

Advisers


Financial GoldmanSachsDeutscheBankJPMorganPerellaWeinbergPartners

Financial ABNAMRO

Legal CliffordChance(AdvisingJPMorgan)FreshfieldsBruckhausDeringer

Legal -

PR Maitland(AMO)HeringSchuppenerConsulting(AMO)

PR -


06-Aug-08 ContinentalpollinginvestorsforviewsonSchaeffleroffer,defenceoptions

05-Aug-08 Continentalhas50-50chanceofusingEGMtodelaySchaeffler,personsays

04-Aug-08 Continental:Wranglesoverlegalityofswapagreementswillnotbustdeal,independentlawyersclaim

31-Jul-08 Continental:Schaefflerwillexerciseitsswapagreementsoncetalkshavetakenplaceduringthetenderperiod,sourcessay

30-Jul-08 Continental'sonlydefenceagainstSchaefflerisacapitalincrease;wouldstruggletofindsupport,sourcessay

24-Jul-08 Continental:Schaefflerseesnoreasontoincreaseoffer,sourcessay

18-Jul-08 ContinentalintalkswithCarlyleGrouptoselltyredivision,insidersays

17-Jul-08 Continental:Pirellinotinterestedinbuyingwholecompanyortyrebusiness,companysays

17-Jul-08 Continental:Schaeffleraimingtopublishofferdocumentthisweek;willreiteratethatitislookingonlyforupto50%stake,sourcesays

16-Jul-08 Continental:SchaefflerhasnotbeencontactedbyBaFin,butexpectstalksinafewdays

16-Jul-08 Continental:ABNAmroandAllen&OveryadvisingSchaeffler

15-Jul-08 Continental:Schaefflernothellbentontakingfullcontrol-conferencecallroundup

14-Jul-08 Continental/SchaefflerdealhingesonchangeofcontrolclausesreSiemensVDOfinancing,sourcessay

Germany



Regulatory Date Notes

ECNotification (dRestimate)25/35tradingdaysforphase1decision,further90/105tradingdaysifreferredtophase2

LastdateforArt.9/Art.22request

15tradingdaysfromECnotification

Lastdayforremedieswithinphase1

20tradingdaysfromECnotification,willcause10tradingdayextensionifremediessubmitted

Art.9/Art.22decision 10tradingdaysfromrequest

ECDecision 25/35tradingdaysforphase1decision,further90/105tradingdaysifreferredtophase2

Offer timetable

Announcement 15-Jul-08 Y

BaFinnotification 16-Jul-08 Y max4weeksfromannouncementofoffer,datedRestimate

BaFinapproval 30-Jul-08 Y max10tradingdaysfromnotification

Offerdocumentissued 30-Jul-08 Y sametradingday

Offerperiodcommences 30-Jul-08 Y sametradingday

Publicationoftarget'sresponse

13-Aug-08 2weeksfrompublicationofofferdoc

Latestdayforbidder'sshareholderapproval

20-Aug-08 5tradingdaypriortoofferclosing

Lastdayforrevised/competingoffer

26-Aug-08 1tradingdayfromclosingdate

ClosingDate 27-Aug-08 min4weeks-max10weeks

FinalOfferresults 03-Sep-08 5tradingdaysafterclosingdate

SubsequentOfferPeriodcommences

04-Sep-08 nexttradingdayofprovisionalresults

SubsequentOfferPeriodclosingdate

18-Sep-08 2weekofferperiod

Settlement 29-Sep-08 3to7tradingdaysafterofferdeclaredwhollyunconditional

Company events

Continental1H08results Refersto1H2008resultspublication

Germany


Top 15 German announced deals for YTD 31 July 2008 Announced Status Target company Sector Bidder company Seller company Exit multiples (x) Bid

premia 1-day before


15-Jul-08 P ContinentalAG(97.03%stake) Industrials&Chemicals

SchaefflerKG 1.4 9.1 10.8 6.6% 22,225

11-Jul-08 P CitibankPrivatkundenAG&CoKGaA

FinancialServices

CreditMutuelSA CitigroupInc n/a n/a 13.4 - 4,900

11-Jun-08 P LandesentwicklungsgesellschaftNordrhein-Westfalen

FinancialServices

TheWhitehallFunds

FederalStateofNordrhein-Westfalen

n/a n/a (loss) - 3,500

18-Jun-08 P VolkswagenAG(3.62%stake) Industrials&Chemicals

PorscheAutomobilHoldingSE

0.9 6.4 15.2 - 2,595

3-Jun-08 P EvonikIndustriesAG(25.01%stake)


CVCCapitalPartnersLimited

RAGFoundation 1.0 6.7 11.0 - 2,400

15-Jul-08 P XellaPorenbetonAG Construction GSCapitalPartners;andPAIPartners

FranzHaniel&CieGmbH

1.5 - 2,011

10-Jul-08 P EWEAG(26%stake) Energy,Mining&Utilities

EnBWEnergieBaden-WuerttembergAG

2.0 13.5 25.7 - 2,000

3-Jun-08 L GfKAG BusinessServices

TaylorNelsonSofresPlc

1.6 9.5 0.2 27.5% 1,882

27-Apr-08 C DebitelAG TMT FreenetAG Debitel(Netherlands)HoldingBV

0.5 6.4 - 1,631

31-Jul-08 P EPCOSAG Industrials&Chemicals

TDKCorporation 1.0 7.4 19.2 16.7% 1,402

2-Jun-08 P ErsolSolarEnergyAG Energy,Mining&Utilities

RobertBoschGmbH

VentizzCapitalPartnersAdvisoryAG

7.4 34.8 118.8 63.3% 1,179

16-Apr-08 P HypoRealEstateHoldingAG(24.90%stake)

FinancialServices

J.CFlowers&CoLLC;andGroveInternationalPartnersLLP

n/a n/a 7.5 21.8% 1,127

2-Jan-08 C OttoGroup(25%stake) Consumer OTTOAktiengesellschaftfuerBeteiligungen

WAZMediaGroup 0.7 12.5 11.1 - 1,000

15-Apr-08 C D+SeuropeAG TMT ApaxPartners 2.6 12.5 31.0 31.3% 593

30-Apr-08 P TognumGmbH(22.30%stake) Industrials&Chemicals

DaimlerAG EQTPartnersAB 1.0 6.1 11.8 12.0% 586


Topdeals

Germany


Top 5 German announced deals of the month (July 2008)Announced Status Target company Sector Bidder


1-day before

Deal value(€m)

Revenue EBITDA P/E

15-Jul-08 P ContinentalAG(97.03%stake) Industrials&Chemicals

SchaefflerKG 1.4 9.1 10.8 6.6% 22,225

11-Jul-08 P CitibankPrivatkundenAG&CoKGaA

FinancialServices

CreditMutuelSA

CitigroupInc n/a n/a 13.4 - 4,900

15-Jul-08 P XellaPorenbetonAG Construction GSCapitalPartners;andPAIPartners

FranzHaniel&CieGmbH

1.5 - 2,011

10-Jul-08 P EWEAG Energy,Mining&Utilities

EnBWEnergie Baden- WuerttembergAG

2.0 13.5 25.7 - 2,000

31-Jul-08 P EPCOSAG Industrials&Chemicals

TDKCorporation

1.0 7.4 19.2 16.7% 1,402


Topdeals

Germany



Seller company Financial adviser Market cap/ est.

value (€m)

Comments

Significantbusinessevents

DaimlerAG Industrials&Chemicals

Undisclosedbidder

36,000 Daimlerisseeingstakebuildingfromforeignhedgefunds,accordingtoareportinGermanweeklyFocus.Daimlerissaidtobebuyingbackitsownsharesasadefencemeasure,thereportcontinued.AspokesmanforDaimlerwasunwillingtocommentinthearticleandexplainedthatDaimlerdoesnotseeitselfasatakeovertarget,butcannotruleoutbeingtakenover.ThisnewsservicereportedthatDaimlercouldbecomeatargetbutcouldremainindependentsimplybecauseofalackoftradebuyers.Daimlerwouldbea"cheap"buyatthemomentasitssharehaslostaround45%ofitsvaluethisyeartogivethecompanyamarketcapitalizationof€36bn.

SignificantM&A

DresdnerBankAG;andDresdnerKleinwort

FinancialServices

CommerzbankAG;Sberbank;andChinaDevelopmentBank

AllianzSE 7,500 CommerzbankhassofarbeenseenasthefavouriteinalineofpartiessaidtoalsobeinterestedinDresdnerBank.IfCDBbidsforDresdnerKleinwortitcouldalsofinditselfupagainstRussianbankSberbank,whichhastakenaninterest,andwhichonesourcesaidwaslookingatacquiringastakeintheinvestmentbankingdivision,withAllianzkeepingaholding.Sberbankdeclinedtocommentonwhatitdescribedas"marketrumours".DresdnerBankwillonlybesubjecttoaChinaDevelopmentBank(CDB)bidifthemoveisapprovedbytheChineseStateCouncil,asourcefamiliarwiththesituationsaid.

Takeovertarget

DeutschePostbankAG FinancialServices

DeutscheBank;INGGroupNV;LloydsTSBGroupPlc;andSantanderCentralHispanoSA

UBSAG(T);MorganStanley(S)

GovernmentofGermany;andDeutschePostAG

7,300 ThetradeunionrepresentativesoflistedGermanDeutscheBankwouldsupportatakeoveroflistedlocalrivalDeutschePostbank,EuroamSonntagreported.AnotherDeutscheBanksupervisoryboardmemberwascitedinthearticleassayingthatDeutscheBankisintheDeutschePostbankdataroomandisevaluatingamerger.ThereportsuggestedthatthosepartieswithinDeutscheBankthatwantaDeutschePostbanktakeoverhavestrengthenedtheirpositionafterRainerNeske,theheadoftheDeutscheBankprivatecustomerdivision,gaveapersuasivespeechinfrontoftheDeutscheBanksupervisoryboardinfavourofthedeal.

Takeovertarget

SolarWorldAG Energy,Mining&Utilities

GeneralElectricCompany

Asbeckfamily 3,300 RobertBosch’s€546.4macquisitionofphotovoltaicscompanyErsolSolarcouldstartmajorconsolidationinGermany’ssolarindustry,thisnewsservicereported.Solon,SolarworldandQ-Cellsareconsideredprimetargets.

Expecteddeals

Germany



Seller company Financial adviser Market cap/ est.

value (€m)

Comments

Takeovertarget

Kloeckner&CoAG Industrials&Chemicals

ArcelorMittal;andBerkshireHathawayInc

1,454 ThomasLudgwig,theCEOoflistedGermansteeltraderKloeckner&Co,hastoldthisnewsservicethecompany’s100%freefloatandlackofaprotectiveshareholdercouldmakeitatarget.HeaddedthatthecompanyhasnotbeenapproachedbyUSinvestorWarrenBuffet,whohadbeenreportedasinterestedinthecompany.SeparatelythecompanyhasbeennamedasapotentialtargetforIndiansteelcompanyArcelorMittal.

Takeovertarget

IKBDeutscheIndustriebankAG

FinancialServices

SkandinaviskaEnskildaBankenAB;RipplewoodHoldingsLLC;andLoneStarFunds

MerrillLynch(S) KfWBankengruppe;andGovernmentofGermany

500 ThesaleofGermanbankIKBDeutscheIndustriebank,willbedecidedfollowinganEUdecisiondueinOctober,FrankfurterAllgemeineZeitungreported.ThereportcitedobserverswhosaidadecisionwillcomeaftertheEuropeanCommissiondecideswhethertoapproveIKB'scapitalincrease.SwedishbankSEB,andfinancialinvestorsLoneStarandRipplewoodtabledbindingoffersinJune,thereportnoted.Arecentpressreporthadsaidthatthesalepricecouldbearound€500m.

Expecteddeals

Germany


Leaguetables

value

YTD 31-Jul-08

House Value (€m)

Deal count



3 UBS 35,484 16


5 ABNAMRO 22,461 4

6 PerellaWeinbergPartners 22,225 1


8 Citigroup 6,685 8





13 SalOppenheimjr&Cie 4,253 12


15 MetzlerCorporateFinance 4,015 5

Source:mergermarket

volume

Thefinancialadviserleaguetablesbyvalueandvolumehavebeenrunfrom01January2008to31July2008andexcludelapsedandwithdrawndeals.Thetablescoverallsectorsand arebasedonthegeographyofeitherthetarget,bidderorsellerbeingGermany

YTD 31-Jul-08

House Value (€m)

Deal count


2 UBS 35,484 16


4 SalOppenheimjr&Cie 4,253 12



7 Lazard 3,349 11







14 Deloitte 2,236 8

15 UniCreditGroup 2,013 7

Source:mergermarket

Top 15 financial advisers - Germany

value

YTD 31-Jul-08

House Value (€m)

Deal count




4 HengelerMueller 13,038 26




8 Poellath&Partners 5,319 17

9 BredinPrat 4,900 1

10 Gernandt&Danielsson 4,500 1



13 WillkieFarr&Gallagher 3,952 4


15 Roschier 3,183 3

Source:mergermarket

volume

Thelegaladviserleaguetablesbyvalueandvolumehavebeenrunfrom01January2008to31July2008andincludelapsedandwithdrawndeals.Thetablescoverallsectorsand arebasedonthegeographyofeitherthetarget,bidderorsellerbeingGermany

YTD 31-Jul-08

House Value (€m)

Deal count



3 CMS 693 28

4 HengelerMueller 13,038 26


6 Poellath&Partners 5,319 17





11 NoerrStiefenhofer&Lutz 219 11

12 DLAPiper 275 10

13 SJBerwin 178 9


15 MilbankTweedHadley&McCloy 2,817 7

Source:mergermarket

Top 15 legal advisers - Germany

Germany


Leaguetables

value

YTD 31-Jul-08

House Value (€m)

Deal count

1 TheWhitehallFunds 3,500 1



3= PAIPartners 2,011 1

5= GroveInternationalPartners 1,127 1

5= JCFlowers&Co 1,127 1

7 ApaxPartners 593 1

8 Paine&Partners 550 1


10 NordwindCapital 448 1

Source:mergermarket

volume

TheprivateequitybuyoutactivitytablesbyvalueandvolumearebasedonprivateequityfirmsadvisingthebidderonbuyoutdealswherethedominantgeographyofthetargetcompanyisGermanyThetablesbyvalueandvolumehavebeenrunfrom01January2008to31July2008andexcludelapsedandwithdrawndeals

TheprivateequityexitactivitytablesbyvalueandvolumearebasedonprivateequityfirmsadvisingthevendoronexitdealswherethedominantgeographyofthetargetcompanyisGermanyThetablesbyvalueandvolumehavebeenrunfrom01January2008to31July2008andexcludelapsedandwithdrawndeals

YTD 31-Jul-08

House Value (€m)

Deal count

1 GranvilleBaird 150 3

2 BarclaysPrivateEquity 97 3

3 HeidelbergCapital 20 3

4 WaterlandPrivateEquityInvestments - 3

5 BIPINVESTMENTPARTNERS 20 2

6 Argantis 19 2

7 AureliusInvestkapital 10 2

8= AUCTUSManagement - 2

8= EQTPartners - 2

8= EquitaManagement - 2

Source:mergermarket

Activity table of private equity firms on German buyouts

value

YTD 31-Jul-08

House Value (€m)

Deal count

1 Permira 1,631 1

2 VentizzCapitalPartnersAdvisory 1,179 1

3 EQTPartners 586 1


5 WaterlandPrivateEquityInvestments 346 2

6 CorsairCapital 290 1

7 InvestcorpTechnologyPartners 185 1

8= AltaPartners 150 1

8= AtlasVenture 150 1

8= EdmonddeRothschildInvestmentPartners

150 1

Source:mergermarket

volume

YTD 31-Jul-08

House Value (€m)

Deal count

1 3iGroup - 4

2 Argantis - 3

3 WaterlandPrivateEquityInvestments 346 2

4 EFFEuropeanFoundersFund 95 2

5 EquitaManagement 90 2

6 L-EigenkapitalAgentur - 2

7 Permira 1,631 1

8 VentizzCapitalPartnersAdvisory 1,179 1

9 EQTPartners 586 1


Source:mergermarket

Activity table of private equity firms on German exits

Germany


Trendgraphs

German M&A quarterly trend

value volume


0

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Q42006

Q32006

Q22006

Q12006

Q42005

Q32005

Q22005

Q12005

Q42004

Q32004

Q22004

Q12004

Q42003

Q32003

Q22003

Q12003

num

ber

of d

eals

German buyouts

German exits

Germany


Trendgraphs

German M&A annual trends

value volume

0

20

40

60

80

100

ytd 2008ytd 2007ytd 2006ytd 2005ytd 2004ytd 2003

valu

e €b

n

All German M&A

German buyouts

German exits

0

100

200

300

400

500

600

700

YTD 2008*20072006200520042003

num

ber

of d

eals

All German M&A

German buyouts

German exits

German M&A sector breakdown YTD 2008

value volume


TMT

Consumer

Business Services

Financial Services


Construction

Transport


Leisure9.8%

18.8%

57.2%

0.8%

4.0%4.9%

1.8%

<0.1%

0.8%

2.0%

10.8%

7.8%

37.3%

11.4%

10.8%

0.7%2.6%

5.2%

3.3%

2.3%

7.8%


TMT

Consumer

Business Services

Financial Services


Construction

Transport


Leisure

Agriculture

Germany


German M&A quarterly mid-market trend

value volume

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

Q32008*

Q22008

Q12008

Q42007

Q32007

Q22007

Q12007

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Q32006

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Q12006

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Q32003

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valu

e €m

0

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40

50

60

Q32008*

Q22008

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Q32007

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num

ber

of d

eals

Mid-marketdeals


Germany


Mid-marketdeals

Top 5 German announced mid-market deals of the month (July 2008)(€10mto€250m)






28-Jul-08 P UtimacoSafeware

AG

TMT SophosInc DeutscheBank

AG;UBS

Freshfields

Bruckhaus

Deringer

(Advising

DeutscheBank

AG)

Investcorp

TechnologyPartners

185

21-Jul-08 P OegerToursGmbH

(76%stake)

Leisure AlpstreamAG 100

31-Jul-08 P AltaFidesAG

(85.80%stake)

Financial

Services

Goethe

InvestmentsSarl

91

4-Jul-08 P MediclinAG(70%

stake)

Pharma,

Medical&

Biotech

ERGO

Versicherungsgruppe

AG

MetzlerCorporate

Finance

HerbertSmith/

GleissLutz/

Stibbe

67

14-Jul-08 P PulcraChemicals

GmbH

Industrials&

Chemicals

Lincoln

International

Freshfields

Bruckhaus

Deringer

FashionChemicals

GmbH&CoKGDeloitte OrthKluth

Rechtsanwalte

CognisDeutschland

GmbH&CoKG

26


Germany



YTD 31-July-08

House Value (€m)

Deal count

Value:

1 Citigroup 568 4


3 Lazard 408 5


5 SalOppenheimjr&Cie 321 3

6 AlegroCapital 320 2


8 JPMorgan 239 2

9 ABNAMRO 236 2

10 Deloitte 225 3

Volume:


2 Lazard 408 5

3 Citigroup 568 4

4 CorporateFinancePartners 213 4


6 SalOppenheimjr&Cie 321 3

7 Deloitte 225 3


9 KPMGCorpFin 152 3


Source:mergermarket

Thefinancialadviserleaguetablesbyvalueandvolumehavebeenrunfrom01January2008to31July2008andexcludelapsedandwithdrawndeals.Thetablescoverallsectorsandarebasedonthegeographyofeitherthetarget,bidderorsellerbeingGermany

Top 10 mid-market financial advisers – Germany (€10mto€250m)

YTD 31-July-08

House Value (€m)

Deal count

Value:


2 CliffordChance 880 9

3 Linklaters 588 7


5 CMS 385 6

6 HergunerBilgenOzeke 353 2


8 BeitenBurkhardt 313 5

9 HengelerMueller 299 5

10 Allen&Overy 297 4

Volume:



3 Linklaters 588 7


5 CMS 385 6

6 BeitenBurkhardt 313 5

7 HengelerMueller 299 5

8 Allen&Overy 297 4

9 DLAPiper 275 4

10 Poellath&Partners 269 4

Source:mergermarket

Thelegaladviserleaguetablesbyvalueandvolumehavebeenrunfrom01January2008to31July2008andincludelapsedandwithdrawndeals.Thetablescoverallsectorsandarebasedonthegeographyofeitherthetarget,bidderorsellerbeingGermany

Top 10 mid-market legal advisers – Germany (€10mto€250m)


Gerard Darel sells majority stake to Advent International; senior and mezzanine financing underwritten by six

• FrenchretailerGérardDarelandAdventInternational,theglobalprivateequityfirm,haveannouncedastrategicandfinancialpartnershipagreement.Theagreementisintendedtosupportthecompany’sinternationalexpansionplans.

AdventInternationalhastakenamajoritystakeinGérardDarel.

• AdventInternational’scoreexpertiseindevelopingbusinessesinternationallywillsupportthenextstageofthecompany’sdevelopment:positioningGérardDarelasaglobalplayer.

Thestrategyistodoublethegroup’sturnoverthroughgrowingthenumberofown-storesinFrancefrom40to80aswellasstrengtheningthegroup’scompetitivenessandnetworkglobally.

• LaurentGerbi,CEOofGérardDarel,said:“InselectingAdventInternationalasourpartner,ourgrouphasaccessnotonlytotheexpertiseofarenownedglobalprivateequityplayertoadvancethecompany’sinternationaldevelopment,butalsothefinancialresourcestosupportourambitiousgrowthstrategy.WehavegreatconfidenceinthiscollaborationwhichwillenableustotaketheGérardDarelbrandtoitsnextlevel.”

PascalStefani,ManagingDirectorofAdventInternationalinFrance,commented:“Wearedelightedtosupportthemanagementteamwhoseambitionsandvaluesweshare,inthisnewphaseinthecompany’sdevelopment.WehavebeenimpressedbythequalityofGérardDarel’sproductsanditsexcellentpositioningintheaffordableluxurygoodsmarket.Thecompany’sfuturegrowthprospectsarestrongand,theperformanceofitsretailandwholesalenetwork,aswellastheprofessionalismofitsmanagementteamareequallyimportantassetswhichwillallowGérardDareltobecomealeadingclothingandleathergoodsbrandworldwide.”

• GérardDarelcurrentlyemploys600peopleinmorethan40countriesandgeneratedsalesofaround€158min2007,up12%fromthepreviousyear.Withmorethan30%ofitsturnovercomingfrominternationalmarkets,thebusinessbenefitsfromaworldwidenetworkofover90“ownbrand”shops,140departmentstoreconcessionsand1200multi-brandboutiques,providingastrongplatformforcross-bordergrowth.

• EdmonddeRothschildCorporateFinanceandthelawfirmBredinPratadvisedGérardDarel.CalyonandthelawfirmWeilGotshal&MangesadvisedAdventInternational.

SeniordebtfinancingisunderwrittenbyFortis,IKBDeutscheIndustriebankAGandWestLBAG.ThemezzaninefinancingisprovidedbyAresManagementLLC,Mezzanis(partofCreditAgricole’sprivateequityarm)andOaktreeCapitalManagement.

France Telecom could buy out Mobistar

• FranceTelecom,theFrenchlistedcompanydoesnotplantomakeamajoracquisitionintheshortterm.

GervaisPelissierdeclaredthegroupwasnotplanningtoacquireacompanyasbigasTeliaSonera,forwhichFranceTelecommadeanapproachbutlaterdecidedtowithdrawit.

• AreportsaidFranceTelecomisunlikelytosetitseyesontargetssuchasSouthAfrica’sMTN,Netherlands’KPN,orNorway’sTelenor.

PelissieraddedthatthegroupwasconsideringexpandingitspresenceinemergingmarketsandcountriessuchasGhana,Vietnam,andAlgeria.

• But,theFrenchgroupcouldmakeseveralsmallacquisitionsratherthanabigone.FranceTelecomcouldlookattheSwissandBelgianmarkets.AccordingtobrokerOddo,FranceTelecomcouldconsiderbuyingouttheminoritiesinBelgium’sMobistar,inwhichFranceTelecomalreadyowns50.2%stake.AnalystsbelieveFranceTelecomcouldseektoenteranagreementwithEgypt-basedOrascom,whoseoperationsincludeassetsinBangladeshandPakistan.

• AlsoFranceTelecomcouldhavetowaitforthefirsthalfofnextyeartotakepartintheprivatisationofVietnam’sMobifone.PelissieralsosaidthattheprivatisationofGhanaTelecomseemedtobeonthevergeofbeingre-activatedwhereastheprivatisationofAlgerieTelecomhasbeenpostponedonceagainandisnotexpectedtore-openbeforenextyear.

France

France


Geodis: SNCF owns more than 95%• FrenchstockmarketregulatorAMFannouncedthe

provisoryresultsofthetakeoverofferlaunchedbySNCF

forGeodis.On4July2008,SNCFParticipationsowned

7,723,389sharesand8,882,529votingrightsinGeodis,

representing98.09%and98.22%ofthesharesand

votingrightsinthecompanyrespectively.AMFsaidthat

theconditionrequiredbySNCF,whichwastocontrolat

least66.67%ofGeodis’sharesandvotingrights,has

beenmet.Onafullydilutedbasis,SNCFcontrols95.24%

ofthesharesand95.72%ofthevotingrightsinGeodis.

• Thedefinitiveresultsoftheofferwillbepublishedon10

Julyatthelatest.

SUEZ - Gaz de France: Shareholders approve merger and approve listing of SUEZ Environment

• TheCombinedOrdinaryandExtraordinarySUEZ

Shareholders’Meeting,chairedbyGerardMestrallet,

ChairmanandCEO,washeldJuly16,2008todeliberate

anddecideupontransactionsnecessarytothemergerof

SUEZandGazdeFrance.

• TheShareholders’Meetingapprovedtheresolutions

presentedonthemeeting’sagenda,including:themerger

ofSUEZwithGDF;andthemarketlistingofSUEZ

EnvironmentanddistributiontoSUEZshareholdersof

65%ofthecapitalofSUEZEnvironment.

• ThemergerbetweenSUEZandGDFwillcreateaworld

energyleaderwithtopflightpositionsinnaturalgasand

electricity.

GDFSUEZwillhaveaworkforceofcloseto200,000

employeesthroughouttheworld,with2007revenuesof

€74.3bn.

• ThemergerwaseffectiveonJuly22,2008.Thefirstday

oftradinginGDFSUEZandSUEZEnvironmentshares

tookplacethesameday.

Pernod Ricard working on sale of local ‘marginal’ brands

• PernodRicard,thelistedFrenchdrinkscompany,is

workingonasaleoflocalbrands.ButPernod,didnot

identifywhichbrandsweretobeputupforsale.

• Thecompanydescribedthebrandsinquestionas

“relativelymarginal”.Thebrandsshouldworth€1bn.

Proceedsfromthesalesareearmarkedforpayingdown

debttakenonbyPernodRicardtofinanceits€5.7bn

acquisitionofVin&Sprit.

France

France


Dealofthemonth

Target: BanqueChaixS.A;BanquedeSavoieSA;BanqueDupuydeParsevalS.A;BanqueMarzeS.A;BanquePelletierS.A.;CreditCommercialduSudOuest;andSocieteMarseillaisedeCredit

Announced: 2July2008

Bidder: LeGroupeBanquePopulaire Deal value: €2,100m

Seller: HSBCFrance Deal nature: Recommended

Terms • BanqueFédéraledesBanquesPopulaires(BFBP)S.A,

theFrancebasedmutualbank,hasacquiredSociete

MarseillaisedeCredit(SMC),BanquedeSavoie,Banque

ChaixS.A.,BanqueMarzeS.A.,BanqueDupuyde

ParsevalS.A,BanquePelletierS.A,CreditCommercial

duSudOuest(CCSO),fromHSBCFranceSA,theFrance

basedbankandasubsidiaryofHSBCHoldingplc,the

listedUKbasedbankingandfinancialservicesgroup,fora

considerationof€2.1bn

• AccordingtothetermsoftheagreementBFBPwill

holdtheentireequityofSociétéMarseillaisedeCredit,

while51%oftheothersixbankswillbetransferredon

alaterdatetothelocalregionalauthoritieswithinthe

BFBPgroup.Thepartieshavebeeninnegotiationssince

February2008.Thesevenbankshaveapproximately

2,950employeesin400branches,andaccordingtothe

agreementtheywillretaintheirbrandsandoperatewithin

BFBP’smanagement

Background

• In2007,theygeneratedacombinedoperatingincome

ofapproximately€440mandnetincomeof€100m.Total

assetswereat€8,380m

Funding• AssumedCash

Advisers


Financial GoldmanSachs HSBCBank

Financial Citigroup LazardRothschild

Legal Linklaters Legal BredinPrat

PR - PR EuroRSCGC&O

mergermarket/dealReporter Intelligence

29-Feb-08 HSBCreceives€2.1bncashofferforFrenchregionalbanksfromBanquesPopulaires;entersexclusivediscussions

28-Feb-08 HSBCFrance:offersforregionalbanksworth€1bn–report

27-Feb-08 CreditMutuel’sCICmayenterexclusivetalkswithHSBCforacquisitionofFrenchregionalbanks–report

France


Top 15 French announced deals for YTD 31 July 2008Announced Status Target company Sector Bidder company Seller company Exit multiples (x) Bid premia



23-Apr-08 C NeufCegetelSA(60.32%stake)

TMT SFRSA 2.6 11.8 29.0 0.8% 5,558

02-Jul-08 C BanqueChaixSA;BanquedeSavoieSA;BanqueDupuydeParsevalSA;BanqueMarzeSA;BanquePelletierSA.;CreditCommercialduSudOuest;andSocieteMarseillaisedeCredit

FinancialServices

LeGroupeBanquePopulaire

HSBCFranceSA n/a n/a n/a - 2,100

21-May-08 P LyrecoSAS Industrials&Chemicals

CorporateExpressNV

0.8 9.6 - 1,731

23-Jan-08 C YSLBeaute Consumer L'OrealSA PPRSA - 1,150

17-Jun-08 C ConverteamGroupSAS


LBOFrance BarclaysPrivateEquityLimited

1.3 8.1 16.6 - 1,100

30-May-08 C EditisSA TMT GrupoPlaneta WendelInvestissement

1.3 - 1,026

26-Mar-08 C CompagniedeSaint-GobainSA(5.10%stake)


WendelInvestissement

0.7 4.9 12.8 - 969

28-May-08 P AlmaSA(49%stake) Consumer OtsukaPharmaceuticalCoLtd

RoxInvest 2.0 - 750

04-Jul-08 P Clarins(37.26%stake)

Consumer FinanciereFC 2.4 16.7 24.1 26.9% 742

13-Jun-08 C EpoliaSAS BusinessServices

Q-ParkNV CharterhouseCapitalPartnersLLP

- 700

17-Apr-08 C EiffageSA(10.95%stake)

Construction CaissedesDepotsetConsignations

SacyrVallehermosoSA

0.4 5.8 3.2% 633

28-Apr-08 P GeodisSA(57.63%stake)

Transport SNCFParticipations

0.2 5.0 19.3 1.2% 630

30-Jan-08 C BUTInternational Consumer DecomeublesPartnersSAS

KesaElectricalsPlc 1.3 25.4 81.6 - 550

01-Apr-08 C Petit-Couronnerefinery;andReichstettrefinery


PetroplusHoldingsAG

RoyalDutchShellplc - 503

27-Mar-08 C MaisonsduMonde Consumer ApaxPartners;andLBOFrance

BarclaysPrivateEquityLimited;andNatexisIndustrie

- 415


Top 5 French announced deals of the month (July 2008)Announced Status Target company Sector Bidder company Seller company Exit multiples (x) Bid premia



02-Jul-08 C BanqueChaixSA;BanquedeSavoieSA;BanqueDupuydeParsevalSA;BanqueMarzeSA;BanquePelletierSA.;CreditCommercialduSudOuest;andSocieteMarseillaisedeCredit

FinancialServices

LeGroupeBanquePopulaire

HSBCFranceS.A. n/a n/a n/a - 2,100

04-Jul-08 P Clarins(37.26%stake)

Consumer FinanciereFC 2.4 16.7 24.1 - 742

28-Jul-08 P ILOGSA TMT IBMCorporation 1.5 66 526 - 169

02-Jul-08 C L'Avion Transportation BritishAirwaysplc

SocietedeParticipationAerienne

- 68

31-Jul-08 P PrevoyanceetReassurance

FinancialServices

SCORSA MalakoffMedericgroup

n/a n/a - 53


TopDeals

France


Pipeline of French expected dealsSituation Target

CompanySector Financial adviser to

bidder (B); target (T); seller (S)

Potential bidder company

Seller company Market cap/ est.

value (€m)

Comments


L'OrealSA Consumer NestleSA 33,695 SharesinlistedFrenchcosmeticsgroupL'Orealwentup1.20%onrumoursthatSwissgroupNestlecouldmakeabidforthecompany


SchneiderElectricSA


ABBLimited 23,211 AnalystsbelieveABB,thelistedSwisstechnologygiant,couldbeinterestedintheFrenchgroup.ABBsawitssharesup1.3%followingspeculationitisinterestedinFrenchcompetitorSchneidervaluedat€24bn.


VallourecGroupSA


Gazprom;andMetalloinvest

10,104 Vallourec,ispreparedtoacceptacashtakeoverbidofapproximately€389persharefromGazprom.Vallourecsharesrose4%to€148.6onspeculationthatRussianinvestorAlisherUsmanov,theownerofmetalsholdingMetalloinvest,isconsideringabidat€194.3pershare.Vallourechasbeenrecentlyreportedtohaveamarketcapitalisationof€11.12bn.


HermesInternationalSA

Consumer LVMH 8,078 HermeshasseenrumoursofpotentialinterestfromcompetitorLVMH.


SafranSA Defence MerrillLynch(T) Thales;Zodiac;andAlstom

7,373 RumoursarethatSafrancouldjoinforceswithFrenchcompaniesThales,ZodiacorAlstom.


AeroportsdeParis

Transportation VinciSA;FraportAG;MacquarieAirports;BridgepointCapitalLimited;BalfourBeattyPlc;FlughafenWienAG;andHochtiefAG

Frenchgovernment

6,423 AeroportsdePariscouldbesoldbytheFrenchgovernment.TheFrenchgovernmentcoulddecidetodisposeofits68.4%stake.


Mobistar TMT FranceTelecom 3,160 Mobistar,thelistedBelgianmobilephoneoperator,issubjecttooccasionalspeculationthat51.2%shareholderFranceTelecomcouldbuytheminoritiesorsellitsstake.


Thales TMT Dassault;andEADS

AlcatelLucent 1,714 AlcatelLucent,thelistedFrenchtelecomequipmentandservicescompany,couldconsidersellingits21%shareholdinginlistedFrenchdefenceandelectronicsgroupThales.


AREVASA Industrials&Chemicals

Bain(T);Calyon(T);Lazard(T);HSBCBank(T)

EDF;Total;andAlstom

Frenchgovernment;andCommissariatal'EnergieAtomique

1,011 FrenchpresidentNicolasSarkozywouldliketoreducethestakeofthegovernmentinArevatolessthan50%,andmaybetryapotentialalliancewithelectricitygroupEDForoilgroupTotal.

Source:mergermarke

Expecteddeals

France


Leaguetables

value

YTD 31-Jul-08

House Value (€m)

Deal count

1 CALYON 18,417 11



4 Lazard 14,124 18

5 SG 12,728 15







12 Natixis 6,709 7


14 RicoletLasteyrieetAssocies 5,723 2

15 Fortis 5,636 2

Source:mergermarket

volume

Thefinancialadviserleaguetablesbyvalueandvolumehavebeenrunfrom01January2008to31July2008andexcludelapsedandwithdrawndeals.Thetablescoverallsectorsandarebasedonthegeographyofeitherthetarget,bidderorsellerbeingFrance

YTD 31-Jul-08

House Value (€m)

Deal count


2 UBS 4,537 20

3 Lazard 14,124 18


5 SG 12,728 15


7 CALYON 18,417 11




11 AforgeFinance 600 11

12 KPMGCorpFin 225 10


14 Deloitte 99 9


Source:mergermarket

Top 15 financial advisers - France

value

YTD 31-Jul-08

House Value (€m)

Deal count


2 GideLoyretteNouel 13,249 22






8 DeBrauwBlackstoneWestbroek 7,524 4



11 Vinge 5,702 4

12 Dechert 5,638 3


14= Macfarlanes 5,626 1

14= McDermottWill&Emery 5,626 1

Source:mergermarket

volume

Thelegaladviserleaguetablesbyvalueandvolumehavebeenrunfrom01January2008to31July2008andincludelapsedandwithdrawndeals.Thetablescoverallsectorsandarebasedonthegeographyofeitherthetarget,bidderorsellerbeingFrance

YTD 31-Jul-08

House Value (€m)

Deal count






6 CMS 3,137 14

7 JonesDay 2,190 14

8 MayerBrown 2,347 13

9 SJBerwin 1,800 13





14 WillkieFarr&Gallagher 2,101 9


Source:mergermarket

Top 15 legal advisers

France


Leaguetables

value

value

YTD 31-Jul-08

House Value (€m)

Deal count

1 BarclaysPrivateEquity 2,200 1

2 LBOFrance 1,753 5

3 WendelInvestissement 969 1

4 ColonyCapital 550 2

5= GSCapitalPartners 550 1

5= MerchantEquityPartners 550 1

7 ApaxPartners 415 1

8 Hellman&Friedman 310 1

9 IKInvestmentPartners 255 1

10 GroupeAlpha 215 2

Source:mergermarket

YTD 31-Jul-08

House Value (€m)

Deal count


2 WendelInvestissement 1,026 1

3 CharterhouseCapitalPartners 700 1

4 NatexisIndustrie 415 1

5 3iGroup 274 5

6 21Investimenti 180 1

7 AtriACapitalPartenaires 73 3

8 Aurinvest 69 1

9 LBOFrance 53 3

10 MBOPartenaires 40 1

Source:mergermarket

volume

volume

TheprivateequitybuyoutactivitytablesbyvalueandvolumearebasedonprivateequityfirmsadvisingthebidderonbuyoutdealswherethedominantgeographyofthetargetcompanyisFranceThetablesbyvalueandvolumehavebeenrunfrom01January2008to31July2008andexcludelapsedandwithdrawndeals

TheprivateequityexitactivitytablesbyvalueandvolumearebasedonprivateequityfirmsadvisingthevendoronexitdealswherethedominantgeographyofthetargetcompanyisFranceThetablesbyvalueandvolumehavebeenrunfrom01January2008to31July2008andexcludelapsedandwithdrawndeals

YTD 31-Jul-08

House Value (€m)

Deal count

1 LBOFrance 1,753 5

2 EdmonddeRothschildCapitalPartners - 4


4 NaxicapPartners 31 3

5= ActivaCapital - 3

5= MBOPartenaires - 3

7 ColonyCapital 550 2

8 GroupeAlpha 215 2

9 OfiPrivateEquity 65 2

10 OFIPrivateEquityCapital 50 2

Source:mergermarket

YTD 31-Jul-08

House Value (€m)

Deal count

1 3iGroup 274 5

2 InitiativeetFinance 28 4

3 AtriACapitalPartenaires 73 3

4 LBOFrance 53 3


6= IrisCapital 18 2

6= I-SourceGestion 18 2

8= ArgosSoditic - 2

8= AXAPrivateEquity - 2

8= CaissedesDepotsetConsignations - 2

Source:mergermarket

Activity table of private equity firms on French buyouts

Activity table of private equity firms on French exits

France


Trendgraphs

French M&A quarterly trend

value volume


0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

90,000

Q32008*

Q22008

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valu

e €b

n

0

20

40

60

80

100

120

140

160

180

Q3 2008*

Q2 2008

Q1 2008

Q4 2007

Q3 2007

Q2 2007

Q1 2007

Q4 2006

Q3 2006

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Q1 2006

Q4 2005

Q3 2005

Q2 2005

Q1 2005

Q4 2004

Q3 2004

Q2 2004

Q1 2004

Q4 2003

Q3 2003

Q2 2003

Q1 2003

num

ber

of d

eals

French M&A quarterly private equity trend

value volume

0

3,000

6,000

9,000

12,000

15,000

Q32008*

Q22008

Q12008

Q42007

Q32007

Q22007

Q12007

Q42006

Q32006

Q22006

Q12006

Q42005

Q32005

Q22005

Q12005

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Q32004

Q22004

Q12004

Q42003

Q32003

Q22003

Q12003

valu

e €b

n

France buyouts

France exits

0

10

20

30

40

50

60

70

Q32008*

Q22008

Q12008

Q42007

Q32007

Q22007

Q12007

Q42006

Q32006

Q22006

Q12006

Q42005

Q32005

Q22005

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Q42004

Q32004

Q22004

Q12004

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Q32003

Q22003

Q12003

num

ber

of d

eals

France buyouts

France exits

France


Trendgraphs

French M&A annual trends

value volume

0

30

60

90

120

150

2008 YTD20072006200520042003

valu

e €b

n

All France M&A

France buyouts

France exits

0

100

200

300

400

500

600

2008 YTD20072006200520042003

num

ber

of d

eals

All France M&A

France buyouts

France exits

French M&A sector breakdown YTD 2008

value volume

Consumer


TMT

Business services

Financial services

Construction

Leisure



Transportation

Agriculture

17.9%1.4%

7.6%

8.9%

30.9%

11.9%

11.3%

0.4%

6.3%

0.3%3.2%

15.9%

21.7%

3.9%

4.3%

5.8%

5.0%

10.9%

2.7%3.5%

24.4%

1.6% 0.4%

Consumer


TMT

Business services

Financial services

Construction

Leisure



Transportation

Agriculture

Defence

France


Mid-marketdeals

Top 10 French announced mid-market deals of the month (July 2008) (€10mto€250m)Announced Status Target company Sector Target/seller

financial adviser


Bidder company Bidder finanical adviser


Seller company Deal value(€m)

13-Jun-08 C WKNWindkraftNordAG(Frenchwindmillparks)


EnelErelisSAS WKNWindkraftNordAG

200

30-May-08 C AverysSA Industrials&Chemicals

AforgeFinance;LehmanBrothers;SG

MayerBrown

LBOFrance Rothschild LefevrePelletier&Associes;MayerBrown

21CentralePartners

180

17-Apr-08 C EiffageSA(3%stake)

Construction BNPParibas;Lazard;Natixis;CALYON;Citigroup;JPMorgan

BredinPrat;DarroisVilleyMaillotBrochier;DavisPolk&Wardwell

GroupamaSA SacyrVallehermosoSA

173

01-Feb-08 C FrialSA Consumer AforgeFinance

HocheSocieteD'Avocats;MayerBrown;SarrauThomasCouderc

GroupeAlpha BarclaysBank EYLaw;FieldFisherWaterhouse;Linklaters

170

28-Jul-08 P ILOGSA TMT JPMorgan PaulHastingsJanofsky&Walker

IBMCorporation

UBS CravathSwaine&Moore

169

19-Feb-08 C GenesysSA(91.90%stake)

TMT HoulihanLokey;RicoletLasteyrieetAssocies

ClearyGottliebSteen&Hamilton;WeilGotshal&Manges

QuadrangleGroupLLC;andThomasHLeePartnersLP

LehmanBrothers Linklaters;WeilGotshal&Manges

165

22-Feb-08 C DoctissimoSA TMT Lazard Fidufrance LagardereSCA HSBCBank BredinPrat 136

25-Feb-08 C LOGIXGroup TMT CloseBrothersGroup

JeantetAssocies

ArrowElectronicsInc

GoldmanSachs GroupeOPENSA

135

09-Jan-08 C DefiModeSAS Consumer BNPParibas;KPMGCorpFin

SarrauThomasCouderc

VivarteSA Ashurst 3iGroupPlc 130

14-Feb-08 C Thalese-TransactionsEspanaSA;ThalesE-TransactionsGmbH;ThalesE-TransactionsLtd;andThalesE-TransactionsSA

TMT WillkieFarr&Gallagher

HypercomCorporation

DLAPiper ThalesSA 102

Source:mergermarket

France


Mid-marketdeals

French M&A Quarterly Mid-market Trend

value volume

0

1,000

2,000

3,000

4,000

5,000

Q32008*

Q2 2008

Q12008

Q42007

Q 2007

Q2 2007

Q12007

Q42006

Q32006

Q22006

Q12006

Q42005

Q32005

Q22005

Q12005

Q42004

Q32004

Q22004

Q12004

Q42003

Q32003

Q22003

Q12003

valu

e €b

n

0

1,000

2,000

3,000

4,000

5,000

Q32008*

Q22008

Q12008

Q42007

Q32007

Q22007

Q12007

Q42006

Q32006

Q22006

Q12006

Q42005

Q32005

Q22005

Q12005

Q42004

Q32004

Q22004

Q12004

Q42003

Q32003

Q22003

Q12003

num

ber

of d

eals


France


YTD 31-Jul-08

House Value (€m)

Deal count

Value:

1 Rothschild 907 13

2 Citigroup 786 4

3 SG 656 8


5 Lazard 597 4

6 LehmanBrothers 540 3


8 BNPParibas 407 4

9 JPMorgan 342 2

10 CALYON 268 2

Volume:

1 Rothschild 907 13

2 SG 656 8



5 Citigroup 786 4

6 Lazard 597 4

7 BNPParibas 407 4

8 KPMGCorpFin 225 4

9 Ernst&Young 164 4


Source:mergermarket

Thefinancialadviserleaguetablesbyvalueandvolumehavebeenrunfrom01January2008to31July2008andexcludelapsedandwithdrawndeals.Thetablescoverallsectorsandarebasedonthegeographyofeitherthetarget,bidderorsellerbeingFrance

Top 10 mid-market financial advisers – French (€10mto€250m)

YTD 31-Jul-08

House Value (€m)

Deal count

Value:

1 BredinPrat 885 9

2 MayerBrown 832 9

3 GideLoyretteNouel 764 12

4 ClearyGottliebSteen&Hamilton 534 4

5 Linklaters 484 6


7 Allen&Overy 411 2

8 SarrauThomasCouderc 345 3

9 WeilGotshal&Manges 330 1

10 EYLaw 328 3

Volume:

1 GideLoyretteNouel 764 12

2 BredinPrat 885 9

3 MayerBrown 832 9

4 Linklaters 484 6

5 SJBerwin 285 5

6 JonesDay 101 5



9 Eversheds 131 4


Source:mergermarket

Thelegaladviserleaguetablesbyvalueandvolumehavebeenrunfrom01January2008to31July2008andincludelapsedandwithdrawndeals.Thetablescoverallsectorsandarebasedonthegeographyofeitherthetarget,bidderorsellerbeingFrance

Top 10 mid-market legal advisers – French (€10mto€250m)



SOS Cuetara’s acquisition of Bertolli strengthens its position as a world leader in olive oil sector • InJuly,SOSCuetara,thelistedSpanishfoodgroup,

announceditsagreementwithUnilever,thelistedUK

manufacturerofconsumergoods,onthepurchaseofthe

latter’sBertolliolive-oilandvinegarbusinessfor€630m.

SOSCuetaracalledtheacquisitionofItaly’swell-known

olive-oilbranda“transactionofgreatstrategicvalue”.

SOSCuetaraisnowexpectedtocoverthemarketwith

allolive-brandshavingnowaworld-licensetousethe

Bertolliname.

• Unilever’ssoldoilsandvinegarbusinessesinclude

Bertolli,Maya,DanteandSanGiorgioaswellasa

productionfacilityinInveruno,Italy.Thevendorwillretain

ownershipofBertollimargarine,pastasauceandfrozen

mealsbrands.

• ItmaynotbethebestnewsforItalianstoknowthat

anotheroliveoilproducerhasbeensoldtoaSpanish

company.ThisacquisitionisthecontinuationofSOS

Cuetara’sadvanceonItalianoliveoilproducers.Before

signingagreementwithUnilever,thegroupboughtFriol,

SassaandCrapelli.SOSCuetara’slastacquisitionmaybe

asignaltheItaliansarelosinggroundinthesector,which

priortothelastfewyearwasseenasexclusivelylocal.

• AtthesametimetheacquisitionofBertollimaybecome

stimulifortheItalianfirmstotrytore-launchthe

sector.AccordingtothePresidentofItalianOliveOil

ConsortiumMassimoGargano,Italianoliveoilcompanies

demonstratetheirwilltogrow,toproduceandto

returntoinvesting.AccordingtoUnaproldata,38%of

thecompaniesoperatinginthesectorintendtomake

newinvestmentsand44%wanttoinvestincultivation

techniques,14%intraceabilityand18%inmarketing.

• Thefuturehoweverseemstobeofferingbrighter

perspectivestotheacquirerdespitepossible

complicationsinthebeginning.Theacquisitionisfinanced

withabridgeloanwhichmaycausedifficultiesinthelight

ofunstablecreditmarkets.Inaddition,thehighpriceof

thedeal(SOSCuetaraisbelievedtospendaround35%

or40%ofitscurrentaverageannualgrossrevenues

ofthelastfewyears)couldleadtoagreatshareholder

dilution.

• Bybuildingitsempire(since2003itistheseventh

acquisitionforgroup)SOSCuetarawillbecontrollingthe

bottlingandmarketingof25%or30%ofworldwideolive

oilsales.Itmaynotbegoodforotheroliveoilbrands,

butcouldbebeneficialtoconsumers.Onemaysaythat

byinvestingintomoderatelypricedvirginoliveoil,SOS

Cuetaraforeseesthebenefitsofoliveoildistributionat

alowerpricetocustomers.Itisyetunknownwhenthe

customerswillbeabletofullyenjoythegoodquality

productsforalesserprice.InthelightofFAECA’s

(Spanishagriculturalco-opassociation)estimates,oliveoil

productionforthenexttwoyearswillfallbyabout9%in

Spain.Highoilpricesmaybelessthanencouragingnews

fortheloversofMediterraneandiet,yetitwillbenefit

SOSCuetara.

Bridgepoint Capital Limited is determined toincrease its role in Italian fragrances market.

• BridgepointCapitalLimited,thelistedUKprivate

equitygroupissettostrengthenitspositionsinItalian

fragrancesmarket.On8July,Bridgepointannounced

it’sacquisitionofLineaBellezzaandBeautyStar,Italian

perfumerychains,comprising50outletsandwortha

turnoverof€40m.

• AcquiredfrombrothersSalvatore,PaoloandPieroPilloni

forundisclosedconsiderationestimatedinrangeof€30m

to€40m,thismanagementbuyouttransactionisanother

stepofBridgepointintoperfumessectorafteracquisition

ofLimonitwoyearsago.

• AdvisedbyKPMGandStudioLegaleNCTM,Bridgepoint

financedthetransactionthroughadebtfromGruppo

BancaPopolaredell’EmiliaRomagna.SalvatorePilloni,will

remainasmanagingdirector.

• TheoperationisbelievedtostrengthenBridgepoint

Capitalpresenceinthemarket.Accordingtopartner

LucioRanaudocurrentfragrancessectorinItalyisvery

fragmented.Thefirstfiveplayersarebelievedtoown

35%ofthemarketwhiletherestremainsinhandsof

mediumsizechainsandindependentoutlets.Determined

tocontributetoitsconsolidation,Bridgepointisnow

interestedinacquiringLaGardenia.LaGardeniais

anotherItalianperfumerieschainwith150outletsowned

byLCapitalandErgonCapital.

Italy

Italy


• Possibleacquisitioncouldbeanimportantsteptosatisfy

Bridgepoint’sambitions.Howeveritmaymeetcompetition

inabidforLaGardenia.BridgepointCapitalisshortlistedby

LaGardenia’sadvisersalongwithInvestcorp,LionCapital,

AdventInternational,LehmanBrothersandCharterhouse.

Potential sale of La Gardenia• Accordingtothreesourcesclosetothesituation,five

privateequityfundshavebeenselectedforLaGardenia,

theItalianperfumechainwhichisputforsalebyL-Capital

andErgonPartners,withtheassistanceofCreditSuisse

asafinancialadviser.Accordingtothesources,the

potentialbiddersincludeInvestcorp,LionCapital,Lehmann

PrivateEquity,BridgepointandCharterhouse.LaGardenia

reportedaturnoverof€94mandEBITDAof€20mforthe

financialyear2007andexpectsEBITDAof€27min2008.

Thecompanyisrumouredtobevaluedat9.5xto10.5x

theprojectedFY08EBITDA.AccordingtoIlMondo,the

bidders’listalsoincludesindustrialgroupssuchasLimoni,

anItaliancompetitorofLaGardeniaandNocibe,aFrench

perfumerychain.Thedeadlineforbindingofferswas18

July,butnowitispostponed.TwosourcessaidthatIntesa

SanPaoloisarrangingstaplefinancingfortheoperation.

However,thefirstsourcesaidthefinancinghasnotyet

beencommittedtoandaddedthatotherbankscouldjoin

theconsortium.

Italy


Dealofthemonth

Target: NavigazioneMontanariSpA Announced: 21July2008

Bidder: G.&A.Montanari&Co Deal value: €340m

Seller: - Deal nature: Recommended

• G.&A.Montanari&Co,theItalybasedholdingcompany,

hasagreedtoacquirethe33.54%stakeitdoesnot

alreadyowninNavigazioneMontanariS.p.A.,thelisted

Italybasedshippingcompany,foranofferpriceof€3.1

pershare,valuingtheentireequitycapitalat€380.86m.

• Theconsiderationisbasedon41,206,646sharesof

NavigazioneMontanari.Thesharepricerepresentsa

premiumof14%overNavigazioneMontanari’sclosing

priceof€2.73pershareasof18July2008,oneday

beforetheannouncementandapremiumof18%over

thecompany’sclosingpriceof€2.612pershareasof20

June2008,onemonthbeforetheannouncementdate.

G.&A.MontanariwillreceivedebtfundingfromBNP

Paribas.G.&A.Monatanaricurrentlyholds66.46%in

NavigazioneMontanari.Followingtheacquisition,

G.&A.Montanariplanstodelistthecompanyfrom

BorsaItaliana.

• Thetransactionissubjecttoapprovalofminimum90%of

theshareholders.

Italy


Dealofthemonth

Advisers


Financial UniCreditGroup Financial BNPParibas

Legal - Legal PirolaPennutoZeiAssociati

Legance Studio Legale Associato (Advising BNP Paribas)

- PR LeganceStudioLegaleAssociato

PR - PR Barabino&Partners


06-Mar-08 NavigazioneMontanaridelistingpossibleifsharepricefallsfurther,chairmansays

25-Feb-08 NavigazioneMontanaridelistingnotanimpossibility,butnocurrentplansforit,CFOsays


Multiples Value (EURm ) Offer price per share (€) 3.1



EBIT 18.2x 32.62 1 day after 2.31%

Earnings 14.8x 25.76 Pre-rumor -

Italy


Top 15 Italian announced deals for YTD 31 July 2008Announced Status Target company Sector Bidder company Seller company Exit multiples (x) Bid premia



16-Mar-08 L AlitaliaSpA Transportation AirFrance-KLMSA 0.3 0.3 -81.5% 1,418

24-Jun-08 P ISABrefinery(49%stake)


OAOLukoil ERGSpA - 1,348

5-Jun-08 C WeatherInvestmentsSpA(10%stake)

TMT ApaxPartners;MadisonDearbornPartnersLLC;andTAAssociatesInc

- 1,100

2-Jun-08 P InterbancaSpA FinancialServices

GECommercialFinance


n/a n/a - 1,000

29-Apr-08 P BipitaliaDucatoSpA FinancialServices

AgosItafincoSpA BancoPopolare n/a n/a - 1,000

11-Mar-08 C SpeedSpA Industrials&Chemicals

Pirelli&CSpA CapitaliaSpA;GruppoBancaLeonardoSpA;IntesaSanpaoloSpA;LehmanBrothersHoldingsIncorporated;MediobancaSpA;andOneEquityPartnersLLC

- 836

27-Mar-08 C LudicaSpA Consumer GiochiPreziosiSpA;IntesaSanpaoloSpA;andClessidraSGR

3iGroupPlc 1.1 - 800

17-Jun-08 P GualaClosuresSpA Consumer DLJMerchantBankingPartners

1.7 8.5 21.1 4.9% 564

21-Jul-08 P UnileverNV(Bertollioliveoilandpremiumvinegarsbusiness)

Consumer SOSCuetaraSA UnileverPLC 1.5 - 560

13-May-08 C Duferdofin-NucorSrl(50%stake)


NucorCorporation - 424

19-Feb-08 C DucatiMotorHoldingSpA(71%stake)


InvestindustrialSpA 1.4 10.3 42.1 0.2 407

30-Jun-08 P TechnogymGroupSpA(40%stake)

Consumer CandoverInvestmentsplc

NerioAlessandri;andPierluigiAlessandri

2.6 - 400

13-May-08 P MarazziGroupSpA(48.84%stake)


Finceramica;Permira;andPrivateEquityPartners

1.0 5.6 12.3 0.1 357

21-Jul-08 P NavigazioneMontanariSpA(33.54%stake)

Transportation G.&A.Montanari&Co

5.0 11.0 14.8 13.6% 340

23-Apr-08 C So.Ge.ParSpA Industrials&Chemicals

OutokumpuOyj 0.6 - 335


Topdeals

Italy


Top 5 Italian announced deals of the month (July 2008)Announced Status Target company Sector Bidder company Seller company Exit multiples (x) Bid premia



21-Jul-08 P UnileverNV(Bertollioliveoilandpremiumvinegarsbusiness)

Consumer SOSCuetaraSA UnileverPLC 1.5 - 560

21-Jul-08 P NavigazioneMontanariSpA(33.54%stake)

Transportation G.&A.Montanari&Co

5.0 11.0 14.8 - 340

9-Jul-08 P BancaMonteParmaSpa(49.27%stake)

FinancialServices BancaSellaHoldingSpA;CbaVitaSpA;FondazionediPiacenzaeVigevano;FondazioneMontediParma;andHDIAssicurazioniSpA

BancaMontedeiPaschidiSienaSpA

n/a n/a - 192

18-Jul-08 C Microtecnicasrl Industrials&Chemicals

StirlingSquareCapitalPartners

HamiltonSundstrandCorporation

0.8 - 100

21-Jul-08 P OfficineLovatoSpA


LandiRenzoSpA FondoDimensioneNetwork

1.6 7.4 - 63


Topdeals

Italy


Expecteddeals




Seller company Market cap/est.

value (€m)

Comments

Expecteddeal

EniaSpA Energy,Mining&Utilities

HeraSpA;andIrideSpA

MerrillLynch(B);BNPParibas(B);BancaIMI/IntesaSanpaolo(B);UniCreditGroup(B);LehmanBrothers(T);Mediobanca(T);CreditSuisse(T)

5,000 Enia,HeraandIride,thelistedItalianutilities,haveappointedadvisorsfortheirthree-waymergerproject,MilanoFinanzareported.TheunsourcedreportsaidthatMediobancawouldactasIride'sadvisor,BancaImiwouldcounselEniaandUnicreditwouldadviseHera.Aspreviouslyreported,thereportwouldcreateagroupwithturnoverof€5bn.


BMPS(realestatenewco)

FinancialServices

AssicurazioniGeneraliSpA;BeniStabiliSpA;SansedoniSpA;andFimit

1,500 BMPS,thelistedItalianbank,hasattractedfourbiddersforitsrealestatenewco,Finanza&Mercatireported.Thereportcitedfinancialsourceswhosaidthatthebiddersforthe49%beingsoldareGenerali,Sansedoni,FimitandBeniStabili.

Expecteddeal

TiscaliSpA TMT BTGroupPlc;TheCarphoneWarehouseGroupPlc;OrangeSA;SwisscomAG;andWindTelecomunicazioniSpA

BancaIMI/IntesaSanpaolo(T);Borghesi,ColomboeAssociati(T);JPMorgan(T)

1,169 VodafonehasnolongerinterestinmakingabidforTiscali,butCarphoneWarehouse,andItalybasedWindTelecomunicazioni,andSwisscomarestillinterestedinaTiscalideal.

Expecteddeal

SnaiSpA Leisure CVCCapitalPartnersLimited

454 Snai,thelistedItalianbookmaker,hasreceivedinterestfromprivateequityfirmCVCandotherparties.


IPISpA(AttivitaImmobilariaSpA)

FinancialServices

BancaIntermobiliare 142 IPI,thelistedItalianrealestategroup,maybethesubjectofapublicofferbytheprincipalshareholdersofBancaIntermobiliare.Thebidcancomefrom,amongothers,theSegrefamily,whoistheprincipalshareholderinIntermobiliare,whichholds29%ofIPI.OthermajorshareholdersinIntermobiliarecouldalsoformpartoftheconsortium.TheIPIboardhasproposeda€200mrightsissueforIPI.

Source:mergermarket

Pipeline of Italian expected deals

Italy


Leaguetables

value

YTD 31-Jul- 2008

House Value (€m)

Deal count




4 Lazard 5,288 8

5 ABNAMRO 5,152 2

6 CALYON 5,052 2



9 JPMorgan 4,419 6



12 BancaIMI/IntesaSanpaolo 4,069 10

13 UniCreditGroup 3,825 11


15 UBS 2,220 8

Source:mergermarket

volume

Thefinancialadviserleaguetablesbyvalueandvolumehavebeenrunfrom01January2008to31July2008andexcludelapsedandwithdrawndeals.Thetablescoverallsectorsandarebasedonthegeographyofeitherthetarget,bidderorsellerbeingItaly

YTD 31-Jul- 2008

House Value (€m)

Deal count

1 ChiomentiStudioLegale 7,264 28

2 Gianni,Origoni,Grippo&Partners 4,808 19

3 BonelliEredePappalardo 7,793 17

4 LeganceStudioLegaleAssociato 6,898 17

5 d'UrsoGattieAssociatiStudioLegale 2,223 17


7 MBL&Partners 188 13

8 Simmons&Simmons 1,233 12

9 GrimaldieAssociati 3,173 10




13 NCTMStudioLegaleAssociato 644 8


15 StudioLegalePavesiGittiVerzoni 2,005 6

Source:mergermarket

Top 15 financial advisers - Italy

value

YTD 31-Jul- 2008

House Value (€m)

Deal count











11 ALTIUS 4,068 3

12= DeBrauwBlackstoneWestbroek 4,052 2

12= HerbertSmith/GleissLutz/Stibbe 4,052 2



Source:mergermarket

volume

Thelegaladviserleaguetablesbyvalueandvolumehavebeenrunfrom01January2008to31July2008andincludelapsedandwithdrawndeals.Thetablescoverallsectorsandarebasedonthegeographyofeitherthetarget,bidderorsellerbeingItaly

YTD 31-Jul- 2008

House Value (€m)

Deal count





5 d'UrsoGattieAssociatiStudioLegale 2,223 17








13 NCTMStudioLegaleAssociato 644 8


15 StudioLegalePavesiGittiVerzoni 2,005 6

Source:mergermarket

Top 15 legal advisers - Italy

Italy


Leaguetables

value

YTD 31-Jul- 2008

House Value (€m)

Deal count

1= ApaxPartners 1,100 1

1= MadisonDearbornPartners 1,100 1

1= TAAssociates 1,100 1

4 IntesaSanpaolo 832 2

5 Clessidra 800 1

6 Investindustrial 768 3

7 DLJMerchantBankingPartners 564 1

8 CandoverInvestments 400 1

9 PrivateEquityPartners 357 2

10 Permira 357 1

Source:mergermarket

volume

TheprivateequitybuyoutactivitytablesbyvalueandvolumearebasedonprivateequityfirmsadvisingthebidderonbuyoutdealswherethedominantgeographyofthetargetcompanyisItalyThetablesbyvalueandvolumehavebeenrunfrom01January2008to31July2008andexcludelapsedandwithdrawndeals

YTD 31-Jul- 2008

House Value (€m)

Deal count

1 Investindustrial 768 3

2 StirlingSquareCapitalPartners 240 3

3 PalladioFinanziaria 100 3

4 NatexisCape 57 3

5 IntesaSanpaolo 832 2

6 PrivateEquityPartners 357 2

7 MandarinCapitalPartners 271 2

8 Mittel 82 2


10 OrlandoManagement 30 2

Source:mergermarket

Activity table of private equity firms on Italian buyouts

value

YTD 31-Jul- 2008

House Value (€m)

Deal count

1= CompagnieNationaleaPortefeuille/NationalePortefeuillemaatschappij

836 1

1= Eurazeo 836 1

1= LehmanBrothersPrivateEquity 836 1

1= OneEquityPartners 836 1

5 3iGroup 800 1

6 BSPrivateEquity 200 3

7 CentrobancaSviluppoImpresa 200 1

8 AltoPartners 105 1

9 AlettiPrivateEquity 63 1

10 Kohlberg&Company 35 1

Source:mergermarket

volume

TheprivateequityexitactivitytablesbyvalueandvolumearebasedonprivateequityfirmsadvisingthevendoronexitdealswherethedominantgeographyofthetargetcompanyisItalyThetablesbyvalueandvolumehavebeenrunfrom01January2008to31July2008andexcludelapsedandwithdrawndeals

YTD 31-Jul- 2008

House Value (€m)

Deal count

1 BSPrivateEquity 200 3

2 MPSVentures - 2

3= CompagnieNationaleaPortefeuille/NationalePortefeuillemaatschappij

836 1

3= Eurazeo 836 1

3= LehmanBrothersPrivateEquity 836 1

3= OneEquityPartners 836 1

7 3iGroup 800 1

8 CentrobancaSviluppoImpresa 200 1

9 AltoPartners 105 1

10 AlettiPrivateEquity 63 1

Source:mergermarket

Activity table of private equity firms on Italian exits

Italy


Trendgraphs

Italian M&A quarterly trend

value volume


0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

45,000

Q32008*

Q22008

Q12008

Q42007

Q32007

Q22007

Q12007

Q42006

Q32006

Q22006

Q12006

Q42005

Q32005

Q22005

Q12005

Q42004

Q32004

Q22004

Q12004

Q42003

Q32003

Q22003

Q12003

valu

e (€

m)

0

30

60

90

120

150

Q32008*

Q22008

Q12008

Q42007

Q32007

Q22007

Q12007

Q42006

Q32006

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Q32005

Q22005

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Q32004

Q22004

Q12004

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Q32003

Q22003

Q12003

num

ber

of d

eals

Italian M&A quarterly private equity trend

value volume

0

1,000

2,000

3,000

4,000

5,000

6,000

Q32008*

Q22008

Q12008

Q42007

Q32007

Q22007

Q12007

Q42006

Q32006

Q22006

Q12006

Q42005

Q32005

Q22005

Q12005

Q42004

Q32004

Q22004

Q12004

Q42003

Q32003

Q22003

Q12003

valu

e (€

m)

Italian buyouts

Italian exits

0

5

10

15

20

25

30

Q32008*

Q22008

Q12008

Q42007

Q32007

Q22007

Q12007

Q42006

Q32006

Q22006

Q12006

Q42005

Q32005

Q22005

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Q22004

Q12004

Q42003

Q32003

Q22003

Q12003

num

ber

of d

eals

Italian buyouts

Italian exits

Italy


Trendgraphs

Italian M&A annual trends

value volume

0

20

40

60

80

100

120

2008 YTDY2007Y2006Y2005Y2004Y2003

valu

e (€

bn)

All Italian M&A

Italian buyouts

Italian exits

0

50

100

150

200

250

300

350

400

450

2008 YTDY2007Y2006Y2005Y2004Y2003

num

ber

of d

eals

All Italian M&A

Italian buyouts

Italian exits

Italian M&A sector breakdown YTD 2008

value volume


Consumer

Financial services

TMT



Business services

Construction

Leisure

Transport

22.3%

19.8%

28.3%

8.2%

14%

2.5%0.3%0.3%

3.8%0.5%

32.1%

21.3%

5.0%

18.1%

4.1%

10.0%

3.6%

1.8%1.8%

2.3%


Consumer

Financial services

TMT


Business services


Construction

Leisure

Transport


Consumer

Financial services

TMT



Business services

Construction

Leisure

Transport

Italy


Mid-marketdeals

Top 15 Italian announced mid-market deals for YTD 31 July 2008 (€10mto€250m)Announced Status Target company Sector Target/seller

financial adviser


Bidder company



Seller company

Deal value (€m)

9-Jul-08 P BancaMonteParmaSpA(49.27%stake)

FinancialServices

Rothschild Gianni,Origoni,Grippo&Partners

BancaSellaHoldingSpA;CbaVitaSpA;FondazionediPiacenzaeVigevano;FondazioneMontediParma;andHDIAssicurazioniSpA

StudioLegaleAvvocatoNicolaBianchi


192

30-Jul-08 P CassadiRisparmiodiFanoSpA(30%stake)

FinancialServices

CreditoValtellineseSpA

IntesaSanpaoloSpA

100

18-Jul-08 C Microtecnicasrl Industrials&Chemicals

Jefferies&Company

ClearyGottliebSteen&Hamilton

StirlingSquareCapitalPartners

EidosPartners

Ashurst;Gianni,Origoni,Grippo&Partners(AdvisingBancaNazionaledelLavoro;UniCreditGroup);PaviaeAnsaldo

Hamilton Sundstrand Corporation

100

21-Jul-08 P OfficineLovatoSpA


Lazard StudioVitaSamoryFabbrinieAssociati

LandiRenzoSpA

EidosPartners;Mediobanca

CliffordChance FondoDimensioneNetwork

63

23-Jul-08 P MPSGestioneCreditiBancaSpA(30%stake)

FinancialServices

LeganceStudioLegaleAssociato;StudioVitaliRomagnoliPiccardieAssociati

CAFSpA;andLehmanBrothersInternational

BonelliEredePappalardo;StudioLegaleLombardiMolinarieAssociati


30

8-Jul-08 C BeautyStar;andLineaBellezza

Consumer BridgepointCapitalLimited

KPMGCorpFin

NCTMStudioLegaleAssociato

30

1-Jul-08 C ParchiEoliciUlassaiSrl(30%stake)


SarasSpA Babcock&BrownWindPartnersLtd

30

24-Jul-08 P PGTPhotonicsSpA


Lazard WeilGotshal&Manges

CyOpticsIncorporation

MariniSalsi&Associati;WilsonSonsiniGoodrich&Rosati

Pirelli&CSpA

26

27-Jun-08 C BeddingSrl Consumer StudioLegaleAvvocatoLodovicoFabrisEAssociatiDrProc

HildingAndersInternationalAB

BonelliEredePappalardo;MannheimerSwartling

25

12-Jun-08 C GPPIndustrieGraficheSpA


d'UrsoGattieAssociatiStudioLegale

21InvestimentiSpA

StarPackagingSA

24

Basedonannounceddeals,includinglapsedandwithdrawnbids.Source:mergermarket

Basedondominantgeographyoftargetcompany

Italy


Mid-marketdeals

Italian M&A quarterly mid-market trend

value volume

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

Q32008*

Q22008

Q12008

Q42007

Q32007

Q22007

Q12007

Q42006

Q32006

Q22006

Q12006

Q42005

Q32005

Q22005

Q12005

Q42004

Q32004

Q22004

Q12004

Q42003

Q32003

Q22003

Q12003

valu

e (€

m)

0

10

20

30

40

50

60

Q32008*

Q22008

Q12008

Q42007

Q32007

Q22007

Q12007

Q42006

Q32006

Q22006

Q12006

Q42005

Q32005

Q22005

Q12005

Q42004

Q32004

Q22004

Q12004

Q42003

Q32003

Q22003

Q12003

num

ber

of d

eals


Italy



YTD 31-Jul- 2008

House Value (€m)

Deal count

Value:






6 UniCreditGroup 722 5



9 Lazard 382 4

10 BancaIMI/IntesaSanpaolo 345 2

Volume:








8 Lazard 382 4

9 Ernst&Young 267 3

10 EidosPartners 209 3

Source:mergermarket

Thefinancialadviserleaguetablesbyvalueandvolumehavebeenrunfrom01January2008to31July2008andexcludelapsedandwithdrawndeals.Thetablescoverallsectorsandarebasedonthegeographyofeitherthetarget,bidderorsellerbeingItaly

Top 10 mid-market financial Advisers – Italy (€10mto€250m)

YTD 31-Jul- 2008

House Value (€m)

Deal count

Value:



3 d'UrsoGattieAssociatiStudioLegale 809 9

4 Gianni,Origoni,Grippo&Partners 442 7

5 GrimaldieAssociati 407 6

6 Allen&Overy 390 3

7 SciumeeAssociati 357 2


9 BonelliEredePappalardo 319 7

10 StudioVitaSamoryFabbrinieAssociati 315 4

Volume:



3 d'UrsoGattieAssociatiStudioLegale 809 9

4 Gianni,Origoni,Grippo&Partners 442 7

5 BonelliEredePappalardo 319 7

6 GrimaldieAssociati 407 6


8 StudioVitaSamoryFabbrinieAssociati 315 4


10 Simmons&Simmons 307 4

Source:mergermarket

Thelegaladviserleaguetablesbyvalueandvolumehavebeenrunfrom01January2008to31July2008andincludelapsedandwithdrawndeals.Thetablescoverallsectorsandarebasedonthegeographyofeitherthetarget,bidderorsellerbeingItaly

Top 10 mid-market legal Advisers – Italy (€10mto€250m)

Benelux


Getronics’ non-core business still on the sale• On30July2007,KPN,thelistedDutchmultimedia

company,announceditsintentiontoacquiretheentire

sharecapitalofGetronics,theDutchITcompany,fora

considerationof€6.25pershare,valuingthecompany

at€766m.Theproposedacquisitionwouldreinforce

theICTstrategyofKPN’sbusinesssegmentandfurther

transformKPNfromacommunicationserviceproviderto

anend-to-endproviderofICTservices.

• ThesuccessofKPN’sofferwasprobablyduetothefact

thatitdivestedsomenon-corebusinessesduringthe

yearpriortotheacquisition.Sincethecompletionofthis

transactionendofOctober2007,Getronicshashowever

followedthesamepathandsoldseveralofitsbusiness.

ThesedivestmentsalsocorrespondtoKPN’sstrategyto

allowittorecoverpartoftheacquisitionconsideration

paidforGetronics.

• OneofthefirstsalesoccurredbeginningofFebruary

2008withGetronicsAustraliaPtyLimited,theAustralian

providerofworkspacemanagement,communicationand

professionalICTservices,beingsoldtoUXCLimited,

thelistedAustralianproviderofbusinesssolutions,for

anundisclosedconsideration.Thetransactionisinline

withKPN’sstrategytoeffectivelydeliverservicestoits

internationalclientsasitispartofaarrangementtocreate

apartnershipintheAustralianICTservicesmarket.

• InJuly2008followedthesaleofGetronics’North

AmericanoperationstoCompuComSystemsInc,theUS

basedIToutsourcingcompanyandportfoliocompany

ofCourtSquareCapitalPartners,theUSbasedprivate

equityfirm.TheoperationsarebasedintheUSand

Canada,withaglobalservicecentreinMexico.

• InJune2008Getronicssolda65%stakeinEverest

BV,theNetherlandsbasedproviderofsolutionsfor

databasemanagement,toTotalSpecificSolutionsBV,the

Netherlandsbasedmanufacturer,developerandsellerof

softwaresolutionsforspecificEuropeanmarkets,foran

undisclosedconsideration.

• AlsoinJune,Capgemini,thelistedFrancebased

providerofinformationandcommunicationtechnology

services,agreedtoacquireGetronicsPinkRoccadeBV,

theNetherlandsbasedproviderofapplicationssoftware

services,foratotalconsiderationof€225m.

Segebel has to choose between two offers• Segebel,theBelgianbasedinvestmentholdingcompany,

findsitselfinthemiddleofabiddingwarfollowingthe

offermadebyCentrica,theUKbasedenergycompany,

inJuly,afterElectricitedeFrance(EdF),thelistedFrance

basedenergyservicescompany,madeanofferinJune.

Segebelisa50-50jointventurecompanybetweenGDF

SuezandCentricawhichwascreatedinJune2005to

acquireacontrolling51%stakeinSocietedeProduction

d’ElectriciteSA(SPE),theBelgiumbasedpower

generationcompany.Theremaining49%isownedby

ALG,PublilumandthehistoricalSPEshareholders,being

anumberofBelgianbanksandmunicipalities.

• On20June2008,EdFmadeanofferof515mforthe

50%stakeinSegebelheldbyGdFSuez.Anadditional

considerationcouldbepaidaftertheimplementationof

thecommitmentstakenbySuezElectrabelinfavourof

theBelgianState.

• AroundEdF’sofferannouncement,Centricaexpressedits

intentiontoexerciserightoffirstrefusalonGdF’sstake

inSPE.Finally,on23July2008,Centricaplc,throughits

subsidiaryCentricaOverseasHoldings,theUKbased

investmentholdingcompany,madeanoffertoGdFSuez

forthe50%stakeitdoesnotownfor€515m.Adeferred

considerationof€105mwillbepayablebasedonthe

finaltermsandthetimingofapprovalofthePaxElectrica

2agreement,underwhichSPEwillacquireadditional

powerofftakefromBelgiannuclearpowerplants.The

transactionwillenableCentricatoreachavaluable

controllingstakeinaBelgianpowergenerationand

energyretailingcompanyandthusincreaseitsmarket

shareinBelgiumandEurope.

• ThesaleofitsequityinterestinSegebelwillallowGaz

deFrancetofulfilloneofthecommitmentsitmadeto

theEuropeanCommissionassolutionsagainstcertain

competitionissueswithintheframeworkofplansto

mergeGazdeFranceandSuez.

Benelux

Benelux


Fortis: respecting commitments towards EC, but also potential target• FollowingthecompletionoftheacquisitionofABNAmro

bySantander,FortisandRoyalbankofScotland(RBS)in

October2007,theexecutionoftheconsortium’sinitial

planand/orEuropeanCommissionobligationtoselloff

someofitsacquiredbusinessesofABNAmroisalready

wellinplace.FortismadecommitmentstotheEuropean

Commissionon3October2007aimedataddressing

theEC’sconcernsregardingconcentrationintheDutch

bankingmarketresultingfromFortis’acquisitionofcertain

ABNAMROassets.Also,thesaleofcertainABNAmro

businesseswouldhelpSantander,FortisandRBSintheir

financingfortheirinitialacquisitionoftheDutchbank.

• Therefore,inFebruary2008,Fortissoldthejustacquired

BrazilianAssetManagementbusinessofABNAmroto

Santanderforanapproximateconsiderationof€209m.

FortiswillhoweverkeepallotherLatinAmericanAsset

Managementactivities.

• InMarch2008,RBSexpresseditswillingnesstosell

ABNAmro’sAustralianandNewZealandoperations

whichcouldbevaluedataroundA$1bn.Australia’sbig

fivebanks,includingCommonwealthBankofAustralia,

NationalAustraliaBank,ANZ,StGeorgeBank,and

Westpac,werethennamedaspotentialbuyersforABN

AmrosAustralianbusiness.

• InMay,Fortis,ABNAMROandDeltaLloydhavebegun

talksoverABNAMROVerzekeringen(AAV),theDutch

insuranceservicescompany.Fortiswantstotakeover

DeltaLloyd’s51%stakeinABNAMROVerzekeringen.

• BeginningofJuly2008,FortissoldsomeotherABNAmro

assets,andmoreparticularcertaincommercialbanking

activitiesofABNAmroBusinessUnitNetherlandsto

GermanybasedDeutscheBankAGforaconsiderationof

€w709m.Theseactivitiesrepresentapproximately10%

ofthetotalDutchcommercialbankingmarketintermsof

assetsandincome.

• Fortiscouldpursuethesaleofselectedassetsinorderto

improveitsbalancesheetandmaintainitsindependence.

Manyfinancialinstitutionsarerumouredtobecircling

theseassets.Ontheotherhandhowever,Fortishas

beenrumouredofbeingtargetedbyrivalssuchasING,

theDutchproviderofbanking,insuranceandasset

managementservices.Iftherumourswoulddevelop

intospecificactions,INGwouldfacebothregulatoryand

financinghurdlestoabid.AnyFortis-INGmergerwould

certainlybereviewedbytheEuropeanCommission,given

thesizeofbothgroups,withdivestiturestoberequired

acrossallareas.Atthesametime,however,theDutch

authoritieshadchosennottoreferFortis’acquisitionof

selectedABNAmrooperationstotheECin2007,afact

thatcouldsignalflexibilityvis-a-visanING-Fortismerger.

TheoverallcompetitivenessoftheDutchretailbanking

marketcouldalsolimittheregulatoryimpactonanING-

Fortisdeal.Competitionissuescouldplayaparticular

rolewithregardstobothbanks’Beneluxoperations

duetotheoverlapintheinsurancebusiness.Butthe

Belgianmarketinparticularcouldposeproblems,since

bothFortisandINGaremajorplayersinthatcountry.

Thestrongpositionsofbothplayersinthepaymentcard

issuingsectorandtheoverlapbetweenthetwogroups’

insurancebusinessesmaynecessitateremedies.Any

takeoverofFortiswouldalsobecomplicatedbydomestic

Belgianpolitics.TherumourscameafterFortiswas

downgradedbybothMoody’sandS&P,leavingitwithan

AA3/A/AA-ratingreflectingitsrecentdifficulties.INGis

ratedAA2/AA-/AA-.

Benelux

Benelux


Dealofthemonth

Target: ABNAMROGroupBUNL(Certaincommercialbankingactivities) Announced: 02July2008

Bidder: DeutscheBankAG Deal value: € 709m

Seller: FortisNV Deal nature: Divestment

• DeutscheBank,theGermanybasedinvestmentbank,

hasagreedtoacquirecertaincommercialbanking

activitiesofABNAMROintheNetherlands,fromFortis

NV,thelistedBelgium-Dutchfinancialservicesgroup,for

acashconsiderationof€709m

• ThebusinessestobeacquiredareapartofABNAMRO

NetherlandsUnitandincludetwocorporateclientunits,

13commercialadvisorybranches,partsofHollandsche

BankUnieNV,theNetherlandsbasedbank,andthe

factoringservicescompany,IFNFinanceBV.These

businessesemployaround1,400workersaltogether

andgeneratedproformapre-taxprofitsofapproximately

€140mfor2007

• ThetransactionispartofthecommitmentthatFortis

madetotheEuropeanCommissiontodivestsomeof

itsDutchassets.Underthetermsoftheagreement,

ABNAMROwillprovideinitialcreditriskcoverage

forapproximately€10bnofRiskWeightedAssets.

Thecapitalneededforthiscoveragewillbereleased

progressively.Uponcompletionthebusinesseswill

becomepartofDeutscheBank’sGlobalTransactions

Bankingbusiness

• TheacquisitionisinlinewithDeutscheBank’sstrategyto

improveitsglobalpositionasacorporateandinvestment

bankingservicesprovider.Itissubjecttoregulatory

approvalsfromtheEuropeanCommissionandother

regulatoryauthorities

Advisers


Financial MerrillLynch FortisBank

Financial DeutscheBank

Legal FreshfieldsBruckhausDeringer DeBrauwBlackstoneWestbroek

Legal HengelerMuellerNautaDutilh

PR - PR -

Benelux


TopdealsTop 15 Benelux announced deals for YTD 31 July 2008Announced Status Target company Sector Bidder company Seller company Exit multiples (x) Bid premia



29-May-08 P DistrigazSA Energy,Mining&Utilities

EniG&PBelgiumSpA

SuezSA 0.9 8.9 16.3 8.3% 4,052

13-May-08 C CorporateExpressNV


StaplesIncorporated

0.5 9.3 13.6 21.6% 2,771

02-Apr-08 P FortisInvestmentManagement(50%stake)

FinancialServices

PingAnInsuranceCompanyofChinaLtd

FortisNV n/a n/a 42.2 - 2,150

12-Mar-08 C SintoniaSA(3%stake)

Construction GICSpecialInvestmentsPteLtd

SintoniaSpA - 1,000

23-Apr-08 C SchuitemaNV(73.2%stake)

BusinessServices


RoyalAholdNV 0.3 7.5 19.9 -11.2% 885

17-Jul-08 P TMFGroup(majoritystake)

BusinessServices

DoughtyHanson&Co

SilverfleetCapital - 750

21-Jun-08 P ABXLOGISTICSWorldwideSA/NV

Transportation DeSammensluttedeVognmaendAS

3iGroupPlc;andFortisPrivateEquity

- 750

02-Jul-08 P ABNAMROGroupBUNL(certaincommercialbankingactivities)

FinancialServices

DeutscheBankAG FortisNV n/a n/a - 709

25-Jun-08 P InterGenNV(50%stake)


GMRInfrastructureLimited

AIGHighstarCapitalLP

1.2 3.4 - 707

31-Mar-08 C DeRuiterSeedsGroupBV


MonsantoCompany

5.1 - 546

23-Jul-08 P SegebelSA(50%stake)


CentricaOverseasHoldingsLimited

GDFSuez - 620

20-Jun-08 P SegebelSA(50%stake)


ElectricitedeFranceSA

GDFSuez - 515

11-Jun-08 C BurlingtonResourcesNederlandPetroleum


nvNuon ConocoPhillipsCompany

- 443

14-Apr-08 P Intervision(Services)BV;andNetMedNV

TMT ForthnetAE MyriadInternationalHoldingBV;andTeletyposCyprusLtd

1.9 7.7 16.4 - 403

31-Mar-08 C ShurgardEurope(51%stake)

BusinessServices

NewYorkStateCommonRetirementFund

PublicStorageInc 7.4 - 383


Top 5 Benelux announced deals of the month (July 2008)Announced Status Target company Sector Bidder company Seller company Exit multiples (x) Bid premia

1-day beforeDeal value(€m)

Revenue EBITDA P/E


BusinessServices

DoughtyHanson&Co

SilverfleetCapital - 750


FinancialServices

DeutscheBankAG

FortisNV n/a n/a - 709




GDFSuez - 515

23-Jul-08 C LabcoDiagnosticsNetwork(16%stake)


3iGroupPlc;CICFinance;NatexisPrivateEquity;andTCRCapital

7.3 - 258

3-Jul-08 C FluxysSA(12.50%stake)


EcofinLimited Suez-TractebelSA

4.2 10.0 23.7 6.6% 228


Benelux


Topdeals

Top 5 Belgium announced deals for YTD 31 July 2008Announced Status Target company Sector Target/seller

Financial advisor

Target/seller legal Adviser



Seller company

Deal value(€m)

29-May-08 P DistrigazSA Energy,Mining&Utilities

BNPParibas;CALYON;MerrillLynch

DeBrauwBlackstoneWestbroek;HerbertSmith/GleissLutz/Stibbe;CliffordChance;FreshfieldsBruckhausDeringer;GideLoyretteNouel;Linklaters

EniG&PBelgiumSpA

ABNAMRO;Lazard

ALTIUS;BonelliEredePappalardo;SlaughterandMay

SuezSA 4,052

02-Apr-08 P FortisInvestmentManagement(50%stake)

FinancialServices

MerrillLynch

Allen&Overy PingAnInsuranceCompanyofChinaLtd

JPMorgan White&Case FortisNV 2,150

21-Jun-08 P ABXLOGISTICSWorldwideSA/NV

Transportation UBS Allen&Overy DeSammensluttedeVognmaendA/S

FIHPARTNERS

HengelerMueller;Plesner

3iGroupPlc;andFortisPrivateEquity

750



MerrillLynch


UBS Allen&Overy GDFSuez 620

20-Jun-08 P SegebelSA(50%stake)


MerrillLynch

FreshfieldsBruckhausDeringer

ElectricitedeFranceSA

Citigroup Loyens&Loeff;Sullivan&Cromwell

GazdeFranceSA

515


Top 5 Netherlands announced deals for YTD 31 July 2008Announced Status Target company Sector Target/seller

Financial advisorTarget/seller legal Adviser

Bidder company Bidder financial adviser Bidder legal adviser

Seller company

Deal value(€m)

13-May-08 C CorporateExpressNV


ABNAMRO;DeutscheBank;GoldmanSachs;JPMorgan

Allen&Overy

StaplesIncorporated

LehmanBrothers CliffordChance;HerbertSmith/GleissLutz/Stibbe(AdvisingLehmanBrothers);WeilGotshal&Manges;WilmerHale

2,771

23-Apr-08 C SchuitemaNV(73.20%stake)

BusinessServices

Allen&Overy;HouthoffBuruma;DeBrauwBlackstoneWestbroek


Rabobank CliffordChance;Loyens&Loeff

RoyalAholdNV

885


BusinessServices

UBS Allen&Overy;CliffordChance

DoughtyHanson&Co

PricewaterhouseCoopers CorpFin

SkaddenArpsSlateMeagher&Flom

SilverfleetCapital

750


FinancialServices

FortisBank;MerrillLynch

FreshfieldsBruckhausDeringer;DeBrauwBlackstoneWestbroek

DeutscheBankAG

DeutscheBank HengelerMueller;NautaDutilh

FortisNV 709

25-Jun-08 P InterGenNV(50%stake)


LehmanBrothers

Desai&Diwanji;SidleyAustin

GMRInfrastructureLimited

Rothschild MallesonsStephenJaques;White&Case

AIGHighstarCapitalLP

707


Benelux


Pipeline of Benelux expected dealsSituation Target company Sector Potential bidder

companyFinancial advisor to bidder (B); target (T); seller (S)

Seller company Market cap/ est. value (€m)

Comments


MobistarNV TMT FranceTelecom 3,210 Mobistar,thelistedBelgianmobilephoneoperator,issubjecttooccasionalspeculationthat51.2%shareholderFranceTelecomcouldbuytheminoritiesorsellitsstake.


Agfa-GevaertNV Consumer GoresTechnologyGroupLLC

Lazard(T) 2,182 AgfaGevaerthasappointedFrenchbusinessbankLazardtostudyallstrategicoptions,buthasabandoneditsplantosplitupinthreeindependentlistedcompaniesduetopensioncosts.AgfahasrecentlyattractedinterestsfromTheGoresTechnologyGroupLLC.


USGPeopleNV BusinessServices

AdeccoSA 960 SharesinDutch-listedstaffing/recruitmentcompanyUSGPeoplemoved5%duetorumouredbidinterestfromAdecco.

Source:mergermarket

Expecteddeals

Benelux


Leaguetables

value

YTD 31-Jul-08

House Value (€m)

Deal count





5 UBS 43,862 12


7 Lazard 42,083 9


9 Moelis&Company 37,041 1

10 ABNAMRO 7,958 14


12 CALYON 4,052 1

13 Peters&Co 3,367 1

14 ABGSundalCollier 2,700 1


Source:mergermarket

volume

Thefinancialadviserleaguetablesbyvalueandvolumehavebeenrunfrom01January2008to31July2008andexcludelapsedandwithdrawndeals.Thetablescoverallsectorsandarebasedonthegeographyofeitherthetarget,bidderorsellerbeingBenelux.

YTD 31-Jul-08

House Value (€m)

Deal count

1 Deloitte 418 15

2 ABNAMRO 7,958 14




6 UBS 43,862 12

7 ING 457 12



10 Lazard 42,083 9


12 Rabobank 1,849 9


14 Ernst&Young 648 7


Source:mergermarket

Top 15 financial advisers - Benelux

value

YTD 31-Jul-08

House Value (€m)

Deal count









9 PaulWeissRifkindWharton&Garrison 37,041 1






15 ALTIUS 4,068 6

Source:mergermarket

volume

Thelegaladviserleaguetablesbyvalueandvolumehavebeenrunfrom01January2008to31July2008andincludelapsedandwithdrawndeals.Thetablescoverallsectorsandarebasedonthegeographyofeitherthetarget,bidderorsellerbeingBenelux.

YTD 31-Jul-08

House Value (€m)

Deal count


2 Loyens&Loeff 3,322 35





7 CMS 2,804 17



10 NautaDutilh 1,334 13

11 HouthoffBuruma 1,322 13


13 DLAPiper 526 10



Source:mergermarket

Top 15 legal advisers - Benelux

Benelux


Leaguetables

value

YTD 31-Jul-08

House Value (€m)

Deal count

1 GICSpecialInvestments 1,121 2


3 DoughtyHanson&Co 750 1

4 RaboPrivateEquity 300 2

5= 3iGroup 258 1

5= CICFinance 258 1

5= NatexisPrivateEquity 258 1

5= TCRCapital 258 1

9 PlatinumEquity 155 1

10 TowerBrookCapitalPartners 150 1

Source:mergermarket

volume

TheprivateequitybuyoutactivitytablesbyvalueandvolumearebasedonprivateequityfirmsadvisingthebidderonbuyoutdealswherethedominantgeographyofthetargetcompanyisBenelux.Thetablesbyvalueandvolumehavebeenrunfrom01January2008to31July2008andexcludelapsedandwithdrawndeals.

YTD 31-Jul-08

House Value (€m)

Deal count

1 GIMV 35 3

2 NoorderHuysParticipaties - 3

3 GICSpecialInvestments 1,121 2

4 RaboPrivateEquity 300 2

5 FrieslandBankInvestments 16 2

6= AACCapitalPartners - 2

6= AnteaParticipaties - 2

6= BencisCapitalPartners - 2

6= VandenEnde&DeitmersVentureCapitalPartners

- 2


Source:mergermarket

Activity table of private equity firms on Benelux buyouts

value

YTD 31-Jul-08

House Value (€m)

Deal count

1= 3iGroup 750 1

1= FortisPrivateEquity 750 1

1= SilverfleetCapital 750 1

4 AIGHighstarCapital 707 1

5 GoodEnergiesInvestments 300 1

6 GildeInvestmentManagement 232 2

7 GIMV 100 2

8= NPMCapital 100 1

8= Sofinim 100 1


Source:mergermarket

volume

TheprivateequityexitactivitytablesbyvalueandvolumearebasedonprivateequityfirmsadvisingthevendoronexitdealswherethedominantgeographyofthetargetcompanyisBenelux.Thetablesbyvalueandvolumehavebeenrunfrom01January2008to31July2008andexcludelapsedandwithdrawndeals.

YTD 31-Jul-08

House Value (€m)

Deal count

1 GildeInvestmentManagement 232 2

2 GIMV 100 2

3= AACCapitalPartners - 2

3= CVCCapitalPartners - 2

5= 3iGroup 750 1

5= FortisPrivateEquity 750 1

5= SilverfleetCapital 750 1

8 AIGHighstarCapital 707 1

9 GoodEnergiesInvestments 300 1

10= NPMCapital 100 1

10= Sofinim 100 1

Source:mergermarket

Activity table of private equity firms on Benelux exits

Benelux


Trendgraphs

Benelux M&A quarterly trend

value volume


0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

90,000

100,000

110,000

Q32008*

Q 2008

Q12008

Q42007

Q32007

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valu

e €m

0

50

100

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Q32008*

Q22008

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Q32007

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Q22005

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num

ber

of d

eals

Benelux M&A quarterly private equity trend

value volume

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

18,000

Q32008*

Q22008

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Q32007

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valu

e €m

Benelux buyouts

Benelux exits

0

5

10

15

20

25

30

35

40

Q3 2008*

Q22008

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Q32007

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Q22006

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Q32005

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Q32003

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num

ber

of d

eals

Benelux buyouts

Benelux exits

Benelux


Trendgraphs

A sector breakdown YTD 2008

value volume

0

20

40

60

80

100

120

140

160

180

2008 YTD20072006200520042003

valu

e €m

All Benelux M&A

Benelux buyouts

Benelux exits

0

100

200

300

400

500

600

2008 YTD20072006200520042003

num

ber

of d

eals

All Benelux M&A

Benelux buyouts

Benelux exits

Benelux M&A sector breakdown YTD 2008

value volume

14%

3.3%

0.4%

2.4%

31%

3.3%

4%

12.1%

5.7%

3.7%

20.2%

TMT

Industrials &Chemicals

Business Services

Consumer

Construction


Financial Services

Transportation


Leisure

Agriculture

7.7%

6.9%

4%

0.4%

0.8%

3.6%

17.8%

8.9%

15.8%15%

16.6%

2.4%


TMT

Business Services

Consumer

Construction


Financial Services

Transportation


TMT


Business Services

Consumer

Construction


Financial Services

Transportation


Leisure

Defence

Agriculture

Benelux


Mid-marketdeals

Benelux M&A quarterly mid-market trend

value volume

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

Q3 2008*

Q22008

Q1 2008

Q42007

Q3 2007

Q22007

Q12007

Q42006

Q32006

Q2 2006

Q1 2006

Q42005

Q32005

Q22005

Q12005

Q42004

Q32004

Q22004

Q12004

Q42003

Q32003

Q22003

Q12003

valu

e €m

0

10

20

30

40

50

Q3 2008*

Q22008

Q12008

Q42007

Q32007

Q22007

Q12007

Q4 2006

Q32006

Q2 2006

Q12006

Q42005

Q32005

Q22005

Q12005

Q4 2004

Q32004

Q22004

Q12004

Q42003

Q32003

Q22003

Q12003

num

ber

of d

eals


Benelux


Mid-marketdeals

Top 10 Benelux announced mid-market deals YTD 31 July 2008(€10mto€250m)






26-Jun-08 C StokvisTapes

GroupBV

Industrials&

Chemicals

ITWPerformance

Polymers&Fluids

GildeInvestment

ManagementBV

232

28-Jun-08 P Interkabel

Vlaanderen

TMT ING HerbertSmith/

GleissLutz/

Stibbe

TelenetHoldingNV Petercam Baker&

McKenzie

230

03-Jul-08 C FluxysSA(12.50%

stake)

Energy,Mining

&Utilities

BredinPrat EcofinLimited Suez-TractebelSA 228

25-Jul-08 P Getronics

PinkRoccade

NederlandBV

TMT CapgeminiSA Rabobank CliffordChance;

Latham&

Watkins;Lazard

GetronicsNV 225

25-Apr-08 P InnogeneticsNV

(93.23%stake)

Pharma,

Medical&

Biotech

CreditSuisse Baker&

McKenzie

Solvay

Pharmaceuticals

SA

Petercam Freshfields

Bruckhaus

Deringer

224

03-Jun-08 P InnogeneticsNV Pharma,

Medical&

Biotech

Gen-Probe

Incorporated

UBS CooleyGodward

Kronish;Dewey

&LeBoeuf

(AdvisingUBS);

Linklaters

219

13-Mar-08 C 2waytrafficNV TMT OakleyCapital DLAPiper 2JSProductions

BVJefferies&Company

Freshfields

Bruckhaus

Deringer;

Setterwalls

AtharvaInvestments;andGrupoContenidos

218

14-Feb-08 P LaPerlaInternational

Living

Financial

Services

Allen&Overy MandarineGroup Brandford-Griffith

BaverezCotty

216

26-Jun-08 P Tele2Liechtenstein;

andTele2

Luxembourg

TMT Lazard Linklaters BelgacomSA Tele2AB 207

27-Mar-08 C AirEnergysa Energy,Mining

&Utilities

ABNAMRO Linklaters EnecoHoldingNV Kempen&Co CliffordChance 188


Benelux



YTD 31-Jul-08

House value (€m)

Deal count

Value:


2 Rothschild 621 4

3 ABNAMRO 589 7


5 Rabobank 520 3


7 Petercam 454 2

8 ING 449 4


10 Deloitte 418 7

Volume:

1 ABNAMRO 589 7

2 Deloitte 418 7



5 Ernst&Young 348 5

6 KPMGCorpFin 248 5


8 Rothschild 621 4

9 ING 449 4

10 Rabobank 520 3

Source:mergermarket

Thefinancialadviserleaguetablesbyvalueandvolumehavebeenrunfrom01January2008to31July2008andexcludelapsedandwithdrawndeals.Thetablescoverallsectorsandarebasedonthegeographyofeitherthetarget,bidderorsellerbeingBenelux.

Top 10 Mid-market financial advisers – Benelux €10mto€250m)

YTD 31-Jul-08

House value (€m)

Deal count

Value:


2 Linklaters 979 7


4 DeBrauwBlackstoneWestbroek 791 6



7 DLAPiper 526 7


9 Loyens&Loeff 440 6

10 HouthoffBuruma 432 5

Volume:



3 Linklaters 979 7


5 DLAPiper 526 7


7 DeBrauwBlackstoneWestbroek 791 6

8 Loyens&Loeff 440 6


10 HouthoffBuruma 432 5

Source:mergermarket

Thelegaladviserleaguetablesbyvalueandvolumehavebeenrunfrom01January2008to31July2008andincludelapsedandwithdrawndeals.Thetablescoverallsectorsandarebasedonthegeographyofeitherthetarget,bidderorsellerbeingBenelux.

Top 10 mid-market legal advisers - Benelux(€10mto€250m)


Iberia – British Airways merger continues the consolidation in the airline industry• Thedistressedcurrenteconomicenvironmentcaused

byacombinationofrecessionandasurgeinoilprices

mayspurconsolidationintheEuropeanairlineindustry,

followingtherecentdealactivityintheUS.TheAmerican

aviationsectorhasseenairlinecompaniesmovingto

formnewalliancesfollowingthemergerbetweenDelta

AirlinesandNorthwestAirlinesCorpinAprilthisyear.

• Onthe29ofJuly,IberiaandBritishAirways(BA),

long-termpartnersinthemarketingOneworldAlliance,

announcedplanstomerge.Theannouncementhas

beenawelcomedmoveinthemidstoftheeconomic

downturnwhichiscausingairlinestostruggletomake

profits.Bothairlinespresentedtheirfinancialresultsfor

thefirstquarterwithconsiderablelosses.BAreported

profitsof€34.2m,90%lessthaninthesameperiodof

lastyear,whileIberiareporteda€28.3moperatingloss,

comparedtoa€13.1mprofitayearearlier.

• TheIberia-BAagreement,whichhasalreadybeengranted

approvalbytheEuropeanUnion,wouldcreateoneof

thelargestairlinesintermsofincome,valuedatmore

than€16.6bn.Itwouldalsohaveoneofthelargestfleet

intheworld,witharound450aircrafts.Iberianowneeds

theapprovalfromIberia’s23%shareholderCajaMadrid,

whichlastyearvetoedanapproachfromBAandUS

privateequityfirmTPG.However,thepressureofthe

currenteconomicsituationwillprobablymeanthistime

thedealwillgothrough.

• Underthetermsoftheagreement,thecompanieswill

joinforcesinanall-stocktransaction,thoughretaining

theirseparatebrands,asAirFranceandKLMhavedone.

ThenewentitywouldhaveduallistingsontheLondon

StockExchangeFTSE100andontheMadridStock

Exchange.

• ThemovewouldbringtogetherBA’sstrengthinNorth

AmericaandAsiawithIberia’sprivilegedpositionasthe

EuropeangatewaytoLatinAmericainMadrid-Barajas.

Together,theycouldcontrolabout45%oftheslots

atHeathrowairport,themainEuropeanhubtoNorth

America.

• Asasignoftheirmutualinterestandfurthercooperation,

Iberiarecentlyacquireda2.99%stakeinBAandfinancial

exposuretoafurther6.99%,whileBAincreaseditsstake

inIberiato13.2%.Theyalreadyhaveagreementson30

code-sharingroutesandsince2005haveajointbusiness

operationbetweenLondon-Madrid-Barcelona.

• ButplansdonotstopthereforIberiaandBA,asthey

wanttotakefulladvantageofthechangingconditions

ofthesectorandtheUnitedStates-EuropeanUnion

“openskies”agreementthatenablesairlinestooperate

toandfromanyairport.Iberia’schairmanFernando

Conteannouncedthatthecompanieswouldapplyfor

USantitrustimmunitytocloseatrans-Atlanticjoint

venturewithAmericanAirlines(AA)thatwouldcompete

withDeltaAirlinesandNorthwestAirlines,whichatthe

beginningoftheyearwonanantitrustlawsexemption

toworkcloselywithAirFranceandKLMonnew

Trans-Atlanticroutes.Thealliancewouldbringgreater

opportunitiesforIberia,whichcouldconsolidatenew

routeswiththeWestcoastoftheUS.

• FurtherevidenceofconsolidationintheEuropeansector

couldyetbeseeninthelastquarterof2008withthe

potentialacquisitionofAustrianAirlinesbyoftencited

Lufthansa.TheAustriangovernment,whichownsa43%

stakeinthecompany,hasrecentlyapprovedplanstosell

itsstaketoaforeignairline.Meanwhile,thegovernment

ofSerbiahasannouncedthesaleofamajoritystakein

JATwhileAlitaliaishopingtofindasolutiontoitsfinancial

situation.Assuch,itwouldbeinterestingtoseewhether

otherbiggerplayersinthesectorwouldfollowthesteps

ofIberiaandBAandlookforshelterinalliancesandmuch

biggercombinations.Sofar,VirginAtlantichaslaunched

anintensecampaigntostopthemerger,sayingitwould

meanBA’scontrolofHeathrowairport,lesschoicefor

consumersandhigherticketprices.Ontheotherhand,

AirBerlinandcharterairlineCondonhavedroppedplans

tomergeduetosoaringprices,whileIberiahasmade

anoffertoSpanishrivalSpanairinanattempttoreduce

competence.

Iberia

Iberia


Dealofthemonth

Target: UnionFenosaSA(formerlyUnionElectricaFenosaS.A Announced: 31July2007

Bidder: GasNaturalSDGSA Deal value: €22,839m

Sellers: ACS Deal nature: Acquisition,Domestic,Public

• GasNaturalhassignedanagreementwithACStoacquire

its45.3%stakeinUnionFenosaatapriceof€18.33per

shareincash.TheagreementwithUnionFenosavalues

100%ofthecapitalofUniónFenosaat€16,757m,and

impliesapremiumof15%overtheclosingpriceof

€15.94persharesasof30July2008.Accordingtothe

termsoftheagreement,GasNaturalwillacquireinthe

firstinstancea9.99%stakeinUniónFenosaforatotal

amountof€1,675m.

• Thetransferoftheremainingshares,foratotalamount

of€5,915m,issubjecttotheauthorizationbythe

CompetitionAuthorities,aswellastotheauthorization

bytheSpanishEnergyCommission,ortheconfirmation

thatsuchauthorizationisnotrequired.Uponexceeding

the30%thresholdofUniónFenosa’svotingrights,Gas

Naturalwillbeobliged,withinonemonth,tolauncha

publictenderofferfortheremainingsharesofUnión

Fenosa,atapriceof€18.33pershareincash.

Structure:

• Thetransactionwillbeconductedviaastakepurchase

andsubsequentmandatoryoffer.

Terms:

• UnionFenosashareholderswillreceive€18.33incash

pereachshareheld.

• TheoffervaluestheentiresharecapitalofUnionFenosa

at€16,754m

• Itrepresentsapremiumof14.99%toUnionFenosa’s

closingpriceof€15.94on30July2008,thelasttrading

pricepriortotheformalannouncement.

Holdings and Irrevocable:

• GasNaturalwillacquirethe45.3%stakeheldbyACSin

UnionFenosafor€18.33pershare,valuingthestakeat

EUR7,589.7m.

• FollowingthestakepurchaseGasNaturalshalllaunchan

offerfortheremainingsharesinUnionFenosa

Conditions:

• Relevantregulatoryauthorities

Mandatory Offer:

• Unconditional

Iberia


Dealofthemonth


Multiples Value (€m) Offer price per share (€) 18.33

Revenue 3.8 6010.6 1 day before 14.99%

EBITDA 11.1 2062.1 1 month before 48.54%

EBIT 15.6 1466 1 day after 7.44%

Earnings 17.0 986.4 Pre-rumour n/a

Advisers


Financial MediobancaSpA/Lazard Financial UBS

Legal Legal ClearyGottliebSteen&HamiltonAllen&OveryFreshfieldsBruckhausDeringer

PR - PR MaitlandLlorente&Cuenca


18-Jul-08 ACStosellUnionFenosastakethroughauction

17-Jul-08 UnionFenosa:EDFconfirmsinterestinSpanishmarket,E.On'scampbelievesEDFwillbuyasset

02-Jul-08 MagnumCapitaloutoftherunning

23-Apr-08 UnionFenosaisnotanalysingEnelgasdistributionnetwork,chairmansays

23-Apr-08 UnionFenosahasEUR3bnforpossibleacquisitions


Regulatory


CNE(Spain) (dRestimated)RefSpanishEnergyRegulator

SDC(Spain) (dRestimated)Refapprovaleofstakepurchase,Spanishcompetitionauthority,1monthforphase-1decision,further3monthsifreferredtoTribunaldeDefensadeCompetenciaforphase-2

Offer Timetable

StakePurchaseCompleted

Refpurchaseof45.3%stakeinUnionfenosafromACS

CNMVfiling

CNMVapproval 15calendardaysindicativedeadline,noformaldeadline,clockstopsfrequentlyifnewdatareq,issuedsame/nexttradingday

Offerdocumentissued

max5tradingdaysfromCNMVapprovalpublication(hostileoffers),sametradingdayforfriendlyoffers


sametradingday

Target'sresponse 10tradingdaysfromopeningofofferperiod

Lastdayforcompetingoffer

10tradingdaysfromopeningofofferperiodincludingSaturdays

Lastdayforrevisedoffer

20tradingdaysfromopeningofofferperiod(Saturdayscountastradingdays)

ClosingDate min1month-max2monthsafterfilingofoffer(setbyofferdocument)

CNMVnotifiesresult-transactiondate

nextworkingday

Settlement 3workingdaysaftertransactiondate

Company Events

UNF3Q08results 30-Oct-08 refpublicationofthirdquarterresults

GAS3Q08results 11-Nov-08 refpublicationofthirdquarterresults

Iberia


Top 15 Iberian announced deals for YTD 31 July 2008Announced Status Target company Sector Bidder company Seller company Exit multiples (x) Bid premia

1-day before

Deal value(€m)

Revenue EBITDA P/E

31-Jul-08 P UnionFenosaSA Energy,Mining&Utilities

GasNaturalSDGSA 3.8 15.6 11.1 15.0% 22,839

7-Jan-08 C MetrovacesaSA(29.48%stake)

FinancialServices

SanahujaGroup n/a n/a 12.2 1.7% 1,709

25-Jan-08 C CompaniadeDistribucionIntegralLogistaSA(40.38%stake)

Transportation ImperialTobaccoGroupplc

0.5 13.6 17.4 5.0% 939

29-May-08 C CompaniaLogisticadeHidrocarburosSA(CLH)(25%stake)


AMPCapitalInvestorsLimited;DeutscheBankAG;PublicSectorPensionInvestmentBoard;andStichtingPensioenfondsZorgenWelzijn

EnbridgeInc 7.3 13.5 12.2 0.1% 876

11-Jul-08 P BanSabadellPensionesEGFPSA(50%stake);BanSabadellSegurosGeneralesSAdeSegurosyReaseguros(50%stake);BanSabadellVidaS.A.deSegurosyReaseguros(50%stake)

FinancialServices

ZurichFinancialServicesGroup

BancodeSabadellSA

n/a n/a - 750

30-May-08 P InbesosSA FinancialServices

HormigonesyConstruccionesdeAragonSL

62.3 (loss) (loss) -22.2% 732

16-Jul-08 C GrupoHispaniaS.A. FinancialServices

Grupo2002 TrinitarioCasanova(privateinvestor)

650

23-Jun-08 P BancoPopularEspanolSA(3.50%stake)

FinancialServices

BlueprimeLimited GrupoInversorHispaniaSA

n/a n/a 13.7 51.5% 604

28-Jan-08 C MorganStanleyWealthManagementSV

FinancialServices

LaCaixa MorganStanley n/a n/a - 600

27-Mar-08 C AbertisInfraestructurasSA(3%stake)

BusinessServices

CriteriaCaixaCorpSA Caixad'estalvisDeCatalunya

6.9 11.0 18.0 - 368

28-Apr-08 P InvinSA Transportation AbertisInfraestructurasSA

ActividadesdeConstruccionyServiciosSA

- 348

10-Mar-08 P CompanhiaProdutoradeConservasAlimentaresSA(80%stake)

Consumer CompanhiaIndustrialdeFrutaseBebidasSA

CaixaGeraldeDepositosSA

- 318

28-Feb-08 C GamesaSolarSA Energy,Mining&Utilities

FirstReserveCorporation

GamesaCorporacionTecnologicaSA

12.1 - 314

9-Apr-08 C EnergiasdePortugalSA(2%stake)


InternationalPetroleumInvestmentCompany

2.4 10.2 14.9 27.0% 303

10-Mar-08 C AldeasaSA(49.95%stake)

Consumer AutogrillEspanaSA ImperialTobaccoGroupplc

0.7 - 275


Topdeals

Iberia


Top 5 Iberian announced deals of the month (July 2008)Announced Status Target company Sector Bidder company Seller company Exit Multiples (x) Bid Premia

1-day beforeDeal ealue


31-Jul-08 P UnionFenosaSA Energy,Mining&Utilities

GasNaturalSDGSA 3.8 11.1 17.0 15.0% 22,839

11-Jul-08 P BanSabadellPensionesEGFPSA(50%stake);BanSabadellSegurosGeneralesSAdeSegurosyReaseguros(50%stake);BanSabadellVidaS.A.deSegurosyReaseguros(50%stake)

FinancialServices

ZurichFinancialServicesGroup

BancodeSabadellSA

n/a n/a - 750

16-Jul-08 C GrupoHispaniaSA

FinancialServices

Grupo2002 TrinitarioCasanova

- 650

7-Jul-08 P ClickairSA Transportation VuelingAirlinesS.A CobraACS;IberiaLineasAereasdeEspanaSA;NefinsaSA;Orizonia;QuercusEquitySL

- 250

31-Jul-08 C FotowatioSL(49.50%stake)


GEEnergyFinancialServicesInc;GrupoCorporativoLandonSL

- 225


Topdeals

Iberia


Pipeline of Iberian expected dealsSituation Target

companySector Financial

adviser to bidder (B); target (T); seller (S)

Potential bidder company

Seller company

Market Ceap/

est. value (€m)

Comments

ExpectedDeal

IberdrolaSA Energy,Mining&Utilities

MorganStanley(T)

ElectricitedeFranceSA/ActividadesdeConstruccionyServiciosSA

46,090 ElectricitedeFrance(EdF)anACShavehadinitialdiscussionsregardingapotentialjointofferforIberdrola.


CintraConcesionesdeInfrastructurasdeTransporteSA

Transportation FerrovialSA 5,983 Ferrovial,thelistedSpanishinfrastructuregroup,istoacquireafurther10%stakeinCintra,thelistedSpanishinternationalinfrastructurecompany,asperanannouncementmadebyFerrovialchairmanRafaeldelPinoandalsoaconfirmationatapressconferencebychiefexecutiveJoaquinAyuso.


GamesaCorporacionTecnologicaSA


IberdrolaSA 4,085 Iberdrola,thelistedSpanishelectricitycompany,nowowns24%inGamesaandisrumouredtobeplanningabidforthewindpowercompany.Theofferisexpectedtobeinexcessof€20pershare.

ExpectedDeal

IberiaLineasAereasdeEspanaSA

Transportation GoldmanSachs(T);andMorganStanley(T)

BritishAirwaysandLufthansa

2,411 CajaMadrid,theleadingshareholderinIberia,wantsto"resolve"thecarrier'sfuture,itwas"necessary"to"close"theairline'sfuturewithregardtowhetheritwouldbea"partner"withBritishAirways(BA)orLufthansawhotheyseeeasanequallygood,ifnotbetter,partnerthanBA.


SogecableSA Consumer PromotoradeInformacionesS.A.

2,290 Prisa,thelistedSpanishmediagroup,planstorestructureitsaudiovisualdivisionfollowingthecompletionofitstakeoverofSogecable.


EndesaSA Energy,Mining&Utilities

Undisclosedbidder 35,277 MarketrumoursthatAccionacouldsellitsstakeinEndesabeforeMarch2010.


GrupoEbroPulevaSA(sugarDivision)

Consumer Undisclosedbidder 2,153 EbroPuleva,thelistedSpanishfoodcompany,islookingtosellitssugardivision,accordingtoitschairmanAntonioHernandezCallejas,citedatthecompany’sAGMinJune.Otheroptionsincludeaninitialpublicofferingforthebusiness,oraspinoff.RecentreportshavesuggestedTereos,SuedzuckerandNordzuckerareamonginterestedparties,andthatthesugardivisionisvaluedataround€400-700m.


InmobiliariaColonialSA

FinancialServices

Undisclosedbidder 1,456 FollowingtheexpiredagreementbetweentheshareholdersofColonialandInvestmentCorporationofDubai(ICD),theshareholderswillcontinuetoseekalternativesforthecompany.ICDhasfailedtoreachanagreementwiththecreditorsofColonial.

ExpectedDeal

SpanairSA Transportation UBS(V) IberiaLineasAereasdeEspanaSA;ViajesMarsansSA;LongstockFinancialGroup;GrupoGestairandGadairEuropeanAirlines

ScandinavianAirlinesSystems

300 Spanairowner,theScandinavianAirlinesSystems(SAS),wouldhavesetadeadlineforitssaleinthesecondquarterofthisyear.JanssontheCEOofSAS,gavenodetailsofthebidders,whichcouldincludeIberia[withunlistedrivalGestair],theprivateoperatorGadair,thePortugueseinvestmentfundLongstockFinancialandtheSpanishtravelagencyViajesMarsans.

Source:mergermarket

Expecteddeals

Iberia


Leaguetables

value

YTD 31-Jul- 2008

House Value (€m)

Deal count

1 UBS 24,209 7

2 Lazard 24,157 8



5 Citigroup 3,830 8



8 JPMorgan 2,769 4



11 CALYON 1,927 4


13 SantanderGlobalBankingandMarkets 1,285 3


15 N+1 1,119 3

Source:mergermarket

volume

Thefinancialadviserleaguetablesbyvalueandvolumehavebeenrunfrom01January2008to31July2008andexcludelapsedandwithdrawndeals.Thetablescoverallsectorsandarebasedonthegeographyofeitherthetarget,bidderorsellerbeingIberia

YTD 31-Jul- 2008

House Value (€m)

Deal count

1 Deloitte 1,151 18

2 Lazard 24,157 8

3 Citigroup 3,830 8


5 UBS 24,209 7

6 AtlasCapitalCloseBrothers 660 7



9 KPMGCorpFin 650 6



12 CALYON 1,927 4

13 JPMorgan 1,096 4

14 SociosFinancieros 218 4

15 PricewaterhouseCoopers 170 4

Source:mergermarket

Top 15 financial advisers – Iberia

value

YTD 31-Jul- 2008

House Value (€m)

Deal count




4 UriaMenendez 6,824 25

5 Garrigues 3,508 20



8 Cuatrecasas-GoncalvesPereira,CasteloBranco

2,705 26


10 KPMGAbogados 2,478 18


12 CMS 1,358 8


14= Debevoise&Plimpton 1,026 1

14= PricewaterhouseCoopers 1,026 1

Source:mergermarket

volume

Thelegaladviserleaguetablesbyvalueandvolumehavebeenrunfrom01January2008to31July2008andincludelapsedandwithdrawndeals.Thetablescoverallsectorsandarebasedonthegeographyofeitherthetarget,bidderorsellerbeingIberia

YTD 31-Jul- 2008

House Value (€m)

Deal count


2,705 26

2 UriaMenendez 6,824 25


4 KPMGAbogados 2,478 18

5 Araoz&Rueda 755 15




9 CMS 1,358 8


11 JonesDay 524 5

12 DLAPiper 92 5




Source:mergermarket

Top 15 legal advisers – Iberia

Iberia


Leaguetables

TheprivateequitybuyoutactivitytablesbyvalueandvolumearebasedonprivateequityfirmsadvisingthebidderonbuyoutdealswherethedominantgeographyofthetargetcompanyisIberiaThetablesbyvalueandvolumehavebeenrunfrom01January2008to31July2008andexcludelapsedandwithdrawndeals

value

YTD 31-Jul- 2008

House Value (€m)

Deal count

1 AMPCapitalInvestorsLimited 876 1

2 3iGroup 316 2

3 FirstReserveCorporation 314 1

4 InversionesIbersuizas 215 1

5 MagnumCapitalIndustrialPartners 200 1

6 DinamiaCapitalPrivado 187 2

7 Mercapital 180 1

8 N+1 160 2

9= EspiritoSantoCapital 48 1

9= SESIberiaPrivateEquity 48 1

Source:mergermarket

volume

YTD 31-Jul- 2008

House Value (€m)

Deal count

1 3iGroup 316 2

2 DinamiaCapitalPrivado 187 2

3 N+1 160 2

4 AbraxaIntegratedFinancialSolutions 38 2

5 AMPCapitalInvestorsLimited 876 1

6 FirstReserveCorporation 314 1

7 InversionesIbersuizas 215 1

8 MagnumCapitalIndustrialPartners 200 1

9 Mercapital 180 1

10 EspiritoSantoCapital 48 1

Source:mergermarket

Activity table of private equity firms on Iberian buyouts

value

YTD 31-Jul- 2008

House Value (€m)

Deal count

1 QuercusEquity 250 1

2 3iGroup 233 4

3 EspigaCapitalInversion 30 1

4 CollerCapital 23 1

5 Partrouge 17 1

6 CorporacionFinancieraAlba 16 1

7 TaldeGroup 13 1

8 ARQUESIndustries 11 1

9 CorpfinCapital 7 1

10 BaringPrivateEquityPartners - 1

Source:mergermarket

volume

TheprivateequitybuyoutactivitytablesbyvalueandvolumearebasedonprivateequityfirmsadvisingthebidderonbuyoutdealswherethedominantgeographyofthetargetcompanyisIberiaThetablesbyvalueandvolumehavebeenrunfrom01January2008to31July2008andexcludelapsedandwithdrawndeals

YTD 31-Jul- 2008

House Value (€m)

Deal count

1 3iGroup 233 4

2 QuercusEquity 250 1

3 EspigaCapitalInversion 30 1

4 CollerCapital 23 1

5 Partrouge 17 1

6 CorporacionFinancieraAlba 16 1

7 TaldeGroup 13 1

8 ARQUESIndustries 11 1

9 CorpfinCapital 7 1

10 BaringPrivateEquityPartners - 1

Source:mergermarket

Activity table of private equity firms on Iberian exists

Iberia


Trendgraphs

Iberian M&A quarterly trend

value volume


0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

Q3 2008*

Q2 2008

Q1 2008

Q42007

Q32007

Q2 2007

Q1 2007

Q4 2006

Q3 2006

Q2 2006

Q1 2006

Q4 2005

Q3 2005

Q22005

Q1 2005

Q4 2004

Q32004

Q22004

Q1 2004

Q42003

Q32003

Q2 2003

Q1 2003

valu

e (€

m)

0

30

60

90

120

150

Q3 2008*

Q2 2008

Q1 2008

Q4 2007

Q3 2007

Q2 2007

Q1 2007

Q4 2006

Q3 2006

Q2 2006

Q1 2006

Q4 2005

Q3 2005

Q2 2005

Q1 2005

Q4 2004

Q3 2004

Q2 2004

Q1 2004

Q4 2003

Q3 2003

Q2 2003

Q12003

num

ber

of d

eals

Iberian M&A quarterly private equity trend

value volume

0

1,000

2000

3000

4,000

5,000

6000

Q3 2008*

Q2 2008

Q1 2008

Q4 2007

Q3 2007

Q2 2007

Q1 2007

Q4 2006

Q3 2006

Q2 2006

Q1 2006

Q4 2005

Q3 2005

Q2 2005

Q1 2005

Q4 2004

Q3 2004

Q2 2004

Q1 2004

Q4 2003

Q3 2003

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Q12003

valu

e (€

m)

Iberian buyouts

Iberian exits

0

5

10

15

20

25

Q3 2008*

Q2 2008

Q1 2008

Q42007

Q3 2007

Q2 2007

Q1 2007

Q4 2006

Q3 2006

Q2 2006

Q1 2006

Q4 2005

Q32005

Q22005

Q12005

Q42004

Q32004

Q22004

Q12004

Q42003

Q32003

Q2 2003

Q1 2003

num

ber

of d

eals

Iberia buyouts

Iberia exits

Iberia


Trendgraphs

Iberian M&A Annual Trends

value volume

0

20

40

60

80

100

120

140

2008YTD20072006200520042003

valu

e (€

bn)

All Iberian M&A

Iberian buyouts

Iberian exits

0

100

200

300

400

500

2008YTD20072006200520042003

num

ber

of d

eals

All Iberian M&A

Iberian buyouts

Iberian exits

Iberian M&A sector breakdown YTD 2008

value volume


Business services

Consumer


Construction

Financial services

TMT

Leisure

Transportation


Agriculture

5.5%

0.7%

15%

2.3%

2.4%

4.8%

67.3%

1.6%1.6%

0.1%

0.8%

12.4%

11%

14.3%

9%

9%

7.1%

9.5%

5.2%18.1%

3.8%0.5%


Business services

Consumer


Construction

Financial services

TMT

Leisure

Transportation


Agriculture

Iberia


Mid-marketdeals

Iberian M&A quarterly mid-market trend

value volume

0

10

20

30

40

50

60

Q3 2008*

Q2 2008

Q1 2008

Q4 2007

Q3 2007

Q2 2007

Q1 2007

Q4 2006

Q32006

Q22006

Q1 2006

Q4 2005

Q32005

Q22005

Q1 2005

Q4 2004

Q3 2004

Q2 2004

Q12004

Q42003

Q32003

Q22003

Q1 2003

num

ber

of d

eals


Top 5 Iberian announced mid market deals of the month (July 2008) (€10mto€250m)Announced Status Target company Sector Target/seller

financial adviserTarget/seller legal adviser



Seller company

Deal value(€m)

31-Jul-08 C FotowatioSL(49.50%stake)


QualitasEquityPartners

Cuatrecasas-GoncalvesPereira,CasteloBranco

GEEnergyFinancialServicesInc;GrupoCorporativoLandonSL

Allen&Overy;Garrigues

225

30-Jul-08 C Sampletest-ConsultoriaeGestaodeLaboratoriosClinicasSA


Ambers&Co;AdvisortoSeller:Rothschild

AdvisortoSeller:Araoz&Rueda;Cuatrecasas-GoncalvesPereira,CasteloBranco

LabcoDiagnosticsNetwork

AtlasCapitalCloseBrothers

MayerBrown;RodesySala

3iGroupPlc 220

22-Jul-08 C MBAGrupo BusinessServices

DinamiaCapitalPrivadoSCRSA;N+1PrivateEquityFundII

160

21-Jul-08 P GaleriasPrimero Consumer SupermercadosSabecoSA

CajadeAhorrosdelaInmaculadadeAragon;NozarS.A.

200

17-Jul-08 P Aquapor Energy,Mining&Utilities

AlexandreBarbosaBorgesSA;DomingosdaSilvaTeixeiraSA

AguasdePortugal,SGPS,S.A.

63


0

500

1,000

1,500

2,000

2,500

3,000

3,500

Q3 2008*

Q22008

Q12008

Q42007

Q3 2007

Q2 2007

Q1 2007

Q4 2006

Q3 2006

Q2 2006

Q1 2006

Q4 2005

Q3 2005

Q2 2005

Q1 2005

Q42004

Q3 2004

Q2 2004

Q1 2004

Q4 2003

Q32003

Q22003

Q12003

valu

e (€

m)

Iberia



YTD 31-Jul- 2008

House Value (€m)

Deal count

Value:

1 Lazard 685 5


3 JPMorgan 463 3

4 Deloitte 386 5

5 Ambers&Co 327 3

6 Rothschild 275 2

7 CALYON 268 2

8 BNPParibasSA 259 2



Volume:


2 Lazard 685 5

3 Deloitte 386 5

4 Ernst&Young 225 4

5 JPMorgan 463 3

6 Ambers&Co 327 3


8 BancoEspiritoSantodeInvestimento 143 3

9 Rothschild 275 2

10 CALYON 268 2

Source:mergermarket

Thefinancialadviserleaguetablesbyvalueandvolumehavebeenrunfrom01January2008to31July2008andexcludelapsedandwithdrawndeals.Thetablescoverallsectorsandarebasedonthegeographyofeitherthetarget,bidderorsellerbeingIberia

Top 10 mid-market financial advisers – Iberia (€10mto€250m)

YTD 31-Jul- 2008

House Value (€m)

Deal count

Value:


1,809 18



4 Araoz&Rueda 755 8

5 Allen&Overy 685 4

6 KPMGAbogados 610 4


8 CMS 412 3

9 Linklaters 318 3

10 BredinPrat 258 2

Volume:


1,809 18



4 Araoz&Rueda 755 8

5 DLAPiper 92 5

6 Allen&Overy 685 4

7 KPMGAbogados 610 4


9 CMS 412 3

10 Linklaters 318 3

Source:mergermarket

Top 10 mid-market legal advisers – Iberia (€10mto€250m)

Thelegaladviserleaguetablesbyvalueandvolumehavebeenrunfrom01January2008to31July2008andincludelapsedandwithdrawndeals.Thetablescoverallsectorsandarebasedonthegeographyofeitherthetarget,bidderorsellerbeingIberia


Metro seen as attractive target• MetsoCorporation,theFinnishmachinetechnology

giant,isreportedlyseenasanattractivebuyforprivate

equityplayers.ThisisduetoMetsooperatinginthree

segments,wherebyeachdivisioncouldbeexpandedand

soldseparatelywithintherespectivemarkets.

• Thethreedivisionsaremining,whichhassalesof €2.6bn,

thepaperdivisionreportedturnoverof€2.5bn,andthe

automationbusinesshadsalesof €698m.

• Metsothisweekstatedthatthecompanymissedprofit

estimatesandhalveditssalesgrowthtarget,andhas

seenitsstockdropasmuchas19%.Thecompany

saidrevenuesatthepulpandpapermachinerydivision

declined2%afteritmissedoutonsomelargeorders

becauseofthepostponementofclients’projects.This

iswhereapotentialopportunityforaprivateequityfirm

wouldlieasthedivisioncanbeboughtupcheap,bebuilt

up,andthenresoldtoalargerplayerinthelikesofStora

EnsoorSappi.

• Therehavebeenseveralprivateequityfirmsthathave

showninterestoverthelasttwotothreeyears,butsofar

nodealhasbeenmade.Aplausiblereasonmaybethere

isnoprivateequitycompanylargeenoughintheNordic

regiontocarryoutsuchadeal,makingitnecessaryto

looktolargerhousesintheUKortheUS.Inconnection

withthis,theBlackstoneGrouphasbeenmentionedas

apotentialbidder.Alsothe €3.7bnSwedishindustrial

group,AtlasCopco,wasnamedasapossiblebuyerof

theminingarmMetsoMinerals.Thetwocompanies

wereintalksregardingasaleafewyearsago,but

discussionswerehaltedasMetsodecidednottosplit

thecompany.TheminingmachineryoperationisMetso’s

largestandmostprofitabledivision.Itrecentlyreceived

amajorcontractinPanamaandhasbeenprojectedby

severalsourcesforconsiderablegrowth.

Swedish shipping company looking forpotential bidders

• SvithoidTankers,theSwedishshippingcompany,is

lookingforapotentialbidderforthecompany.

• ItislistedontheOMXStockholmSmallCap,butis

consideringchangingthetradingplacetoOslo’sOMX.A

salecouldbethealternativetonewlisting.Accordingto

theCEOapotentialsalepricewouldliewithinthe€26-

31.5mbracket,includingpersonnelandships.

• Svithoidwouldbeagoodtargetforcompaniesalready

withinitssegmentthatarelookingforafleetthatcan

transportmorethanonekindofcargo.Svithoidcould

benefitcompaniesoperatingbiggerships,butlooking

forasmallerfleetwithvesselsthatcanaccesssmaller

harbours.ThecompanyisconsideringtolistontheOMX

inOslo,asthereisabiggeruniverseofbothpublicand

privateshippingcompaniesinNorwaythanSweden.

Initially,itwillbelistedinbothStockholmandOslo,but

lateritislikelytoleaveStockholm.ParetoSecuritiesin

Norwayhasbeenhiredtoadviseonthismatter.There

isalsoanongoingprojecttodivestthecompany’sthree

largestvesselstofocusonvesselsunder5,000dwt

(weightwithoutfuel,cargoorcrew).Themarketfor

productandchemicaltankersbelow10,000dwtisunder

consolidation,andtheactivityinthetransportationof

vegetableoilsandbiofuelsmarketisgrowing.Svithoid

islookingtoincreasemarketsharebyeithertaking

“command”oftheongoingmarketconsolidation,orby

being“invited”byalargerplayer.

• Svithoid’sshipsaredeployedprimarilyonlong-term

contractstoindustrialcustomers.Thecompanyhasabout

220employees,includingexternalpartiesandcrews.

ShareholdersincludeKlavenessInvest(20%)andFamily

Nygrenwithcompanies,(10%).70%ofthesharesare

tradedontheOMXandhalfoftheseareownedby

Norwegianinvestors.

Nordic Capital looking to exit Unomedicalinvestment

• NordicCapitalissettodivestUnomedical’swoundcare

andophthalmicneedlesbusinessesinautumnthisyear,a

sourceclosetothesituationsaid.Theprivateequityfirm

isnotyetintalkswithanybuyersbutisreportedlyaiming

tofindinterestedpartiesacrossEurope.Thepossibledeal

willbeasmallscaletransactionasthetwobusinesses

generatearound €12.6minrevenuesaltogether.Nordic

Capital,whichowns100%ofDanish-basedUnomedical,

hasnotappointedanadviseryet.

• HealthcareoperatorsColoplastandMolnlyckemightbe

potentialbidders.Coloplastisalistedworldwidesupplier

ofmedicalproducts,includingappliancesforostomy,

continenceandwoundcare.MolnlyckeisaSwedish

manufacturerofsingle-usesurgicalandwoundcare

products.

Nordic

Nordic


• Danish-basedColoplastisthemostlikelybuyerasitis

activelylookingtoexpanditsmarketshareinthewound

caresegment.Despiteitssmalloperations,Coloplast

mightgettheopportunitytomakeafirstmoveinthe

market.ColoplastChiefExecutiveOfficerStenScheibye

hasconfirmedthatthemanagementislookingtoexpand

boththewoundcareandtheurology/continencecare

divisions.Thecompanyhasover € 500mtospendon

acquisitions.TheCEOdidnotwanttodisclosewhichof

thetwoactivitieswouldbefirstconsolidated,although

heimpliedthattherecouldbeongoingnegotiations

involvingboththewoundcareandtheurology/continence

businesses.AskedwhetherUnomedical’sassetscouldbe

anopportunityforstrategicgrowth,hesaidhewasaware

ofthedivestments,asColoplasttookanactiverolein

advisingtheEUcommissiononthesituation.“Wewere

officiallycontactedbytheEUCommissiontogetherwith

othermarketcompetitors,”hesaid.Scheibyeaddedthat

theEUremedywasnotamajorstepasthetwoassetsfor

saleareverysmallentities.

• NordicCapitalwillproceedwiththeassetsaleasrequired

bytheEuropeanCommission,whichhascompleted

competitionreviews.FollowingtherecenttakeoverofUS-

basedhealthcaregiant,ConvaTec,NordicCapitalwilldivest

non-coreoperationswithinUnomedicaltomergewith

ConvaTec.Nordichastocompletetherequireddivestment

procedureinordertofinaliseafullmergerbetween

UnomedicalandConvaTecintheshortterm.

Nordic


Dealofthemonth

Target: AwilcoOffshoreASA Announced: 7July2008

Bidder: ChinaOilfieldServicesLimited Deal value: €2,401m

Seller: - Deal nature: Unsolicited;recommended

ChinaOilfieldServicesLimited,thelistedChineseoilfield

servicecompany,hasagreedtoacquireAwilcoOffshore

ASA,thelistedNorwegianinternationaloffshoredrillingcontractor.

Structure• Theacquisitionoftheremainingoutstandingsharecapital

willbecarriedoutviaarecommendedcashofferunder

NorwegianLaw.

Terms• Thecashofferis€10.59perAwilcoshare.

• TheoffervaluestheentiresharecapitalofAwilcoat

approximately€1,582m.

• Theofferrepresentsapremiumof18.72%toAwilco’s

NOK71.6closingpriceon4July2008,lasttradingday

priortothefirmannouncementoftheoffer.

• Theofferrepresentsapremiumof42.38%toAwilco’s

NOK59.70closingpriceon29May2008,lasttrading

daypriortotheannouncementthatAwilcohadbeen

approachedregardingapossibleofferforthecompany.

Holdings & Irrevocables• AwilcoASandAwecoHoldingAS,representingin

aggregate40.11%oftheoutstandingsharesinAWO,

haveundertakentoaccepttheOfferwithrespecttotheir

shareholdingsinAWO.

ConditionsTheproposedacquisitionissubjectto:

• 90%acceptances.

• RelevantapprovalsreceivedfromwithinthePeoples

RepublicofChina.

• AWOcomplyingwithcertaincovenants.

• 601808EGMapproval.

Nordic

Nordic


Dealofthemonth


Multiples Value (EURm ) Offer price per share (€) 10.59



EBIT 50.2x 47.85 1 day after 2.76%

Earnings 86.5x 17.81 Pre-rumor 39.56%

Advisers

Target / Seller Bidder

Financial ParetoFearnleyFonds

Financial JPMorganLehmanBrothersChinaInternationalCapitalCorporation

Legal Wiersholm Legal CliffordChanceBAHRKing&Wood

PR - PR GambitHillandKnowlton


20-Jun-08 AwilcodeclinescommentonreportsofCNOOCtalks

08-May-08 Awilcokeenonparticipatinginoilservicesconsolidation,industrysourcesays


Regulatory


NDRC NationalDevelopment&ReformCommission

SAFE StateAdministrationofForeignExchange

Regulatory

OsloStockExchangeapproval

necessarypriortopublication,noformaltimeframe

Offerdocissued expectedweekof14July2008,fromcompany,uponOsloStockExchangeapproval


samedaytopublication

Lastdayfortarget'sresponse

1weekpriortoFCD

Lastdayforrevised/competingoffer

FCD

FCD expectedSeptember/October,fromcompany,minimum4weeks-maximum6weeks

Preliminaryresults nexttradingdaytoFCD

Finalresults 1weekor4tradingdaysafterFCD

Settlement 14calendardaysafterFCD

Nordic


Top 15 Nordic announced deals for YTD 31 July 2008Announced Status Target company Sector Bidder company Seller company Exit multiples (x) Bid premia

1-day beforeDeal value(€m)

Revenue EBITDA P/E

31-Mar-08 C Vin&SpritAB Consumer Pernod-RicardSA GovernmentofSweden

5.1 23.3 33.9 - 5,626

24-Jul-08 P E.OnSverigeAB(44.60%stake);andStatkraftAS(Swedishhydropowerplant)


E.ONAG StatkraftAS - 4,500

3-Jul-08 P Vasakronan FinancialServices

APFastigheterAB

GovernmentofSweden

n/a n/a 5.3 - 3,990

3-Mar-08 C ScaniaAB(16.84%stake)


VolkswagenAG InvestorAB;MarcusandAmaliaWallenbergFoundation;MarianneandMarcusWallenbergFoundation;andTheKnutandAliceWallenbergFoundation

2.0 10.7 18.8 17.4% 2,863

25-Jul-08 P Steen&StromASA Consumer ABPPensionFund;andKlepierreSA

CanicaAS - 2,700

28-Feb-08 C Fiedler&LundgrenAB;HouseofPrinceAS;andJLTiedemannsTobaksfabrikAS

Consumer BritishAmericanTobaccoPlc

SkandinaviskTobakskompagniA/S

11.2 - 2,668

7-Jul-08 P AwilcoOffshoreASA Energy,Mining&Utilities

ChinaOilfieldServicesLimited

17.3 37.8 86.5 18.7% 2,401

20-Mar-08 L TietoEnatorOyj(95.60%stake)

TMT NordicCapital 0.7 10.9 (loss) 37.5% 1,238

22-Apr-08 C OceanRigASA(65.70%stake)


DryShipsInc 9.9 23.3 (loss) 4.9% 1,095

14-Jul-08 P DaniscoSugarA/S Consumer NordzuckerAG DaniscoA/S - 751

8-Jan-08 C FASTSearch&TransferASA

TMT MicrosoftCorporation

7.4 (loss) (loss) 43.5% 727

23-Jun-08 P AkerYardsASA(60.80%stake)


STXNorwayAS 0.2 28.3 65.7 11.6% 691

19-Mar-08 C Skiptiehf(56.32%stake)

TMT Existaehf 2.7 9.3 26.3 0.0% 650

6-Mar-08 C PapyrusAB Industrials&Chemicals

AltorEquityPartners

StoraEnsoOyj 0.3 - 640

15-Apr-08 P TinfosAS Industrials&Chemicals

ErametSA 0.6 7.8 - 592


Topdeals

Nordic


Topdeals

Top 5 Nordic announced deals of the month (July 2008)Announced Status Target

companySector Bidder

companySeller company Exit Multiples (x) Bid premia

1-day before


24-Jul-08 P E.OnSverigeAB(44.60%stake);andStatkraftAS(Swedishhydropowerplant)


E.ONAG StatkraftAS - 4,500

3-Jul-08 P Vasakronan FinancialServices

APFastigheterAB

GovernmentofSweden

n/a n/a 5.3 - 3,990

25-Jul-08 P Steen&StromASA

Consumer ABPPensionFund;andKlepierreSA

CanicaAS - 2,700

7-Jul-08 P AwilcoOffshoreASA


ChinaOilfieldServicesLimited

17.3 37.8 86.5 18.7% 2,401

14-Jul-08 P DaniscoSugarA/S

Consumer NordzuckerAG

DaniscoA/S - 751


Top 5 Nordic buyouts for YTD 31 July 2008 Announced Status Target

companySector Target/

seller financial adviser


Bidder company

Bidder financial adviser Bidder legal adviser

Seller company

Deal value (€m)

20-Mar-08 L TietoEnatorOyj(95.60%stake)

TMT DeutscheBank

Dittmar&Indrenius;Roschier

NordicCapital

MorganStanley;NordeaCorporateFinance

Linklaters(AdvisingNordeaCorporateFinance);White&Case

1,238

6-Mar-08 C PapyrusAB Industrials&Chemicals

AltorEquityPartners

PoyryCapital HannesSnellman;HerbertSmith/GleissLutz/Stibbe;MannheimerSwartling

StoraEnsoOyj

640

11-Jun-08 P LindorffGroupAB(50%stake)

BusinessServices

GoldmanSachs

TaylorWessing

InvestorAB Ernst&Young MannheimerSwartling

AltorEquityPartners

580

27-Jun-08 C SvendborgBrakesA/S


DoughtyHanson&Co


Araoz&Rueda;Danders&More;SkaddenArpsSlateMeagher&Flom

SBFynHoldingApS

460

26-Feb-08 C AGRGroupASA(68.80%stake)


RBCCapitalMarkets

AltorOilServiceInvest

SEBEnskilda Thommessen 377


Nordic


Topdeals

Top 5 Nordic exits for YTD 31 July 2008Announced Status Target

companySector Target/



Bidder company

Bidder financial adviser Bidder legal adviser

Seller company Deal value (€m)

3-Mar-08 C ScaniaAB(16.84%stake)


SEBEnskilda;Erneholm&Haskel

Hammarskiold&Co;Vinge

VolkswagenAG

UBS BowmanGilfillan;CliffordChance;Linklaters;Roschier

InvestorAB;MarcusandAmaliaWallenbergFoundation;MarianneandMarcusWallenbergFoundation;andTheKnutandAliceWallenbergFoundation

2,863

25-Jul-08 P Steen&StromASA

Consumer ABGSundalCollier;DeutscheBank

Schjodt;Vinge ABPPensionFund;andKlepierreSA

BNPParibas;SEBEnskilda;UBS

HerbertSmith/GleissLutz/Stibbe;White&Case;Wiersholm

CanicaAS 2,700

11-Jun-08 P LindorffGroupAB(50%stake)

BusinessServices

GoldmanSachs

TaylorWessing;Thommessen

InvestorAB Ernst&Young MannheimerSwartling

AltorEquityPartners

580

8-Jan-08 C SonionA/S


CreditSuisse

GorrissenFederspielKierkegaard

TechnitrolInc

MorganStanley JonasBruun ErhvervsinvestNordA/S;IntermediateCapitalGroup;NordicCapital;andPolarisManagementA/S

385

19-Mar-08 C ElfaAB Consumer AccessPartners

Accura;Vinge;WistrandAdvokatbyra

DaetwylerHoldingAG


Lindahl IKInvestmentPartners;andJensenfamily

226


Nordic


Pipeline of Nordic expected dealsSituation Target

companySector Potential Bidder

companyFinancial adviser to target (T); seller (S)

Sellercompany

Market cap/ est.

value (€m)

Comments

Unconfirmedtakeoverrumour

NordeaAB FinancialServices

Sampo;Swedbank;orSEB

SwedishGovernment

28,011 Sampo,theFinnishfinancialconcern,isrumouredtobekeenonbuyingtheSwedishgovernment’ssharesintheNordicbankNordea.SampohasSEK45bn(€ 4.97bn)incashafterthesaleofitsbankingdivisiontotheDanskebank.

Takeovertarget StoraEnsoOyj


Undisclosedbidder 8,026 StoraEnso,theFinnishpaperandpulpgroup,isreportedtobeinstrategicnegotiations,whichmayleadtoatakeoverofthecompany.

Possiblemerger OverseasShipholdingGroupInc


FrontlineLtd 1,470 FrontlinehasexpresseditswishtostarttalkswithitsUSbasedrivalOverseasShipholding(OSH),accordingtoastatementbyFrontline,theOsloandNewYorklistedandBermuda-basedshippinggroupofNorwaybillionaireJohnFredriksen,totheUSAcompetitionauthorities(SEC).ThecompanyissaidtobeinterestedtodiscussalternativeplanswiththeOSHboard,managementandmainshareholders.


ProsafeProductionPublicLimited


BWOffshoreAS 753 ProsafeProduction,aScandinavianoilservicescompanyrecentlyspunoutofalargeservicesunit,couldbeatakeovertargetforBWOffshore,aNorwegiangroupwhichalreadyholdsaround25%.AProsafeProductionminorityshareholdernotedthatthecompanywasnowtradingatNOK23(€2.85)pershare,significantlylowerthanwhenitwasfirstlistedseparatelyearlierthisyear.TheindividualnotedthatBWOffshorewaslookingtoexpandintheFloatingProductionStorageandOffload[FPSO]sectorinwhichProsafeProductionoperates,andthatabidforthecompanynowatarelativelycheappricewouldmakealotofsenseforBWOffshore.

Possiblemerger CardoAB Industrials&Chemicals

HQFonder;LanneboFonder;andPrior&Nilsson

517 SeveralshareholdersofthelistedSwedishindustrialcompanyCardo,whichincludeHQFonder,LanneboFonderandPrior&Nilsson,areunhappywithCardo’sdevelopmentandbelievethatCardoshouldbesplitup.


VikingMooringsGroupLimited


HitecVisionPrivateEquityAS

Rothschild(T)

InflexionPrivateEquityPartnersLLP

224 HitecVision,theNorwegianbuyoutgroup,hasreportedinterestinVikingMoorings.Aninformationmemorandumwasissuedlastweek,indicatinganaskingpriceofaround€224m.whichmightbea”bigprice,”butHitecVisionisinterestedintheoilandgassector,andVikingisitselfapredominantlyNorwegianbusiness.

Source:mergermarket

Expecteddeals

Nordic


Leaguetables

value

YTD 31-Jul- 2008

House Value (€m)

Deal count


2 UBS 22,364 12




6 FIHPARTNERS 14,102 10




10 SEBEnskilda 6,000 15

11 SG 5,957 3

12= CALYON 5,626 1

12= PKPartners 5,626 1



Source:mergermarket

volume

Thefinancialadviserleaguetablesbyvalueandvolumehavebeenrunfrom01January2008to31July2008andexcludelapsedandwithdrawndeals.Thetablescoverallsectorsandarebasedonthegeographyofeitherthetarget,bidderorsellerbeingNordic

YTD 31-Jul- 2008

House Value (€m)

Deal count


3 SEBEnskilda 6,000 15


5 DanskeMarketsCorporateFinance 885 13

6 KPMGCorpFin 328 13

10 UBS 22,364 12

7 Deloitte 467 12



11 FIHPARTNERS 14,102 10

12 D.Carnegie&Co 1,324 10

13 NordeaCorporateFinance 567 10

14 Lazard 1,080 9

15 HandelsbankenCapitalMarkets 2,598 8

15 ABGSundalCollier 777 6

Source:mergermarket

Top 15 financial advisers – Nordic

value

YTD 31-Jul- 2008

House Value (€m)

Deal count

1 Vinge 26,738 46


3 Roschier 18,047 13


5 KromannReumert 16,254 11

6 Hammarskiold&Co 16,204 5

7 Plesner 14,291 17




11 Ashurst 13,027 3

12 ArthurCox 13,023 2

13= A&LGoodbody 13,007 1

13= MathesonOrmsbyPrentice 13,007 1


Source:mergermarket

volume

Thelegaladviserleaguetablesbyvalueandvolumehavebeenrunfrom01January2008to31July2008andincludelapsedandwithdrawndeals.Thetablescoverallsectorsandarebasedonthegeographyofeitherthetarget,bidderorsellerbeingNordic

YTD 31-Jul- 2008

House Value (€m)

Deal count

1 Vinge 26,738 46

2 MannheimerSwartling 3,014 40



5 Plesner 14,291 17

6 Thommessen 3,664 16

7 Wiersholm 8,006 15

8 Roschier 18,047 13


10 Selmer 1,158 13

11 HannesSnellman 993 12

12 Bech-Bruun 812 12

13 WistrandAdvokatbyra 570 12

14 KromannReumert 16,254 11

15 Lindahl 1,280 11

Source:mergermarket

Top 15 legal advisers – Nordic

Nordic


Leaguetables

value

YTD 31-Jul- 2008

House Value (€m)

Deal count

1 AltorEquityPartners 1,017 3

2 Investor 580 1

3 DoughtyHanson&Co 460 1

4 3iGroup 270 2

5 SegulahAdvisor 250 2

6 TritonPartners 232 1

7 PolarisManagement 121 2

8 AtorkaGroup 106 1

9 Andlinger&Company 90 1

10 NordicCapital 81 3

Source:mergermarket

volume

TheprivateequitybuyoutactivitytablesbyvalueandvolumearebasedonprivateequityfirmsadvisingthebidderonbuyoutdealswherethedominantgeographyofthetargetcompanyisNordicThetablesbyvalueandvolumehavebeenrunfrom01January2008to31July2008andexcludelapsedandwithdrawndeals

YTD 31-Jul- 2008

House Value (€m)

Deal count

1 CapManGroup 11 7

2 AltorEquityPartners 1,017 3

3 NordicCapital 81 3

4 LitorinaKapital 42 3

5 Reiten&Co 30 3

6 SenticaPartners 26 3

7 EqvitecPartners - 3

8 3iGroup 270 2

9 SegulahAdvisor 250 2

10 PolarisManagement 121 2

Source:mergermarket

Activity table of private equity firms on Nordic buyouts

value

YTD 31-Jul- 2008

House Value (€m)

Deal count

1 Investor 2,863 1

2 Canica 2,700 1

3 AltorEquityPartners 580 1

4= ErhvervsinvestNord 385 1

4= IntermediateCapitalGroup 385 1

4= NordicCapital 385 1

4= PolarisManagement 385 1


9 EQTPartners 170 1

10 Stodir 106 1

Source:mergermarket

volume

TheprivateequityexitactivitytablesbyvalueandvolumearebasedonprivateequityfirmsadvisingthevendoronexitdealswherethedominantgeographyofthetargetcompanyisNordicThetablesbyvalueandvolumehavebeenrunfrom01January2008to31July2008andexcludelapsedandwithdrawndeals

YTD 31-Jul- 2008

House Value (€m)

Deal count


2 CapManGroup - 3

3 BrainHeartCapital 43 2

4 SenticaPartners - 2

5 Investor 2,863 1

6 Canica 2,700 1

7 AltorEquityPartners 580 1

8= ErhvervsinvestNord 385 1

8= IntermediateCapitalGroup 385 1

8= NordicCapital 385 1

8= PolarisManagement 385 1

Source:mergermarket

Activity table of private equity firms on Nordic exits

Nordic


Trendgraphs

Nordic M&A quarterly trend

value volume


0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

45,000

Q3 2008*

Q2 2008

Q1 2008

Q42007

Q32007

Q22007

Q12007

Q42006

Q3 2006

Q2 2006

Q1 2006

Q42005

Q32005

Q2 2005

Q1 2005

Q42004

Q3 2004

Q2 2004

Q1 2004

Q4 2003

Q3 2003

Q22003

Q1 2003

valu

e (€

m)

0

50

100

150

200

250

Q3 2008*

Q2 2008

Q1 2008

Q4 2007

Q3 2007

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Q32006

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Q32005

Q22005

Q1 2005

Q4 2004

Q3 2004

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Q1 2004

Q4 2003

Q32003

Q22003

Q1 2003

num

ber

of d

eals

Nordic M&A quarterly private equity trend

value volume

0

2,500

5,000

75,00

10,000

12,500

15,000

17,500

Q3 2008*

Q2 2008

Q1 2008

Q4 2007

Q3 2007

Q22007

Q1 2007

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Q12006

Q4 2005

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Q22005

Q1 2005

Q4 2004

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Q12003

valu

e (€

m)

Nordic buyouts

Nordic exits

0

10

20

30

40

50

60

Q3 2008*

Q2 2008

Q1 2008

Q42007

Q32007

Q2 2007

Q1 2007

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Q22005

Q1 2005

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Q22003

Q1 2003

num

ber

of d

eals

Nordic buyouts

Nordic exits

Nordic


0

100

200

300

400

500

600

700

800

2008 YTD20072006200520042003

num

ber

of d

eals

All Nordic M&A

Nordic buyouts

Nordic exits

Trendgraphs

Nordic M&A annual trends

value volume

0

20

40

60

80

100

2008 YTD20072006200520042003

valu

e (€

bn)

All Nordic M&A

Nordic buyouts

Nordic exits

Nordic M&A sector breakdown YTD 2008

value volume

Industrial and Chemicals

TMT

Consumer

Business services

Transportation

Financial services


Construction


Leisure

Agriculture23.9%2.9%1%

8.9%

18.3%

0.1%

0.3%

20.7%

0.9%

0.4%

22.7%

14.3%

12%

5.9%

6.2%

6.4%

5.6%

4.5%

27.2%

15.7%

1.4% 0.8%

Industrial and Chemicals

TMT

Consumer

Business services

Transportation

Financial services


Construction


Leisure

Agriculture

Nordic


Top 5 Nordic announced mid-market deals of the month (June 2008) (€10mto€250m)Announced Status Target company Sector Target/seller

financial adviser


Bidder company



Seller company

Deal value(€m)

22-Jul-08 P GunneboIndustrierAB


HandelsbankenCapitalMarkets

Gernandt&Danielsson

SegulahStellataHoldingAB

D.Carnegie&Co

Cederquist;Hammarskiold&Co(AdvisingNordicMezzanine)

250

9-Jul-08 C MarathonOilCorporation(Heimdalandrelatedassets)


ScotiaCapital Centricaplc MarathonOilCorporation

239

1-Jul-08 P SPRON FinancialServices

KaupthingBankhf

Logos 147

3-Jul-08 P VikSandvikAS BusinessServices

Notdisclosed Notdisclosed WartsilaCorporation

Notdisclosed Notdisclosed Sandvikfamily

132

7-Jul-08 P EDBGruppenA/S

TMT ABNAMRO GorrissenFederspielKierkegaard

CidronITA/S NordeaCorporateFinance

Accura IBMDanmarkA/S

81


Mid-marketdeals

Nordic M&A quarterly mid-market trend

value volume

0

500

1000

1500

2000

2500

3000

3500

4000

4500

5000

Q3 2008*

Q2 2008

Q1 2008

Q4 2007

Q3 2007

Q2 2007

Q1 2007

Q4 2006

Q3 2006

Q2 2006

Q1 2006

Q4 2005

Q3 2005

Q22005

Q1 2005

Q4 2004

Q3 2004

Q2 2004

Q1 2004

Q42003

Q32003

Q22003

Q1 2003

valu

e (€

m)

0

10

20

30

40

50

60

70

80

90

Q3 2008*

Q2 2008

Q1 2008

Q4 2007

Q3 2007

Q2 2007

Q1 2007

Q42006

Q3 2006

Q2 2006

Q1 2006

Q4 2005

Q3 2005

Q2 2005

Q1 2005

Q4 2004

Q3 2004

Q2 2004

Q1 2004

Q4 2003

Q3 2003

Q22003

Q1 2003

num

ber

of d

eals

Nordic



YTD 31-Jul- 2008

House Value (€m)

Deal count

Value:

1 D.Carnegie&Co 782 5


3 SEBEnskilda 674 8


5 Lazard 556 4

6 Pareto 547 4

7 Deloitte 467 5

8 Citigroup 461 3

9 AccessPartners 419 5


Volume:

1 SEBEnskilda 674 8


3 Ernst&Young 346 8


5 D.Carnegie&Co 782 5

6 Deloitte 467 5

7 AccessPartners 419 5

8 Lazard 556 4

9 Pareto 547 4

10 HandelsbankenCapitalMarkets 365 4

Source:mergermarket

Thefinancialadviserleaguetablesbyvalueandvolumehavebeenrunfrom01January2008to31July2008andexcludelapsedandwithdrawndeals.Thetablescoverallsectorsandarebasedonthegeographyofeitherthetarget,bidderorsellerbeingNordic

Top 10 mid-market financial advisers – Nordic (€10mto€250m)

YTD 31-Jul- 2008

House Value (€m)

Deal count

Value:

1 Vinge 1,376 17


3 MannheimerSwartling 734 14

4 Linklaters 585 8


6 WikborgRein&Co 482 6


8 Gernandt&Danielsson 452 6

9 Thommessen 424 6

10 Lindahl 404 5

Volume:

1 Vinge 1,376 17

2 MannheimerSwartling 734 14

3 Linklaters 585 8


5 WikborgRein&Co 482 6

6 Gernandt&Danielsson 452 6

7 Thommessen 424 6

8 Lindahl 404 5

9 HannesSnellman 353 5


Source:mergermarket

Thelegaladviserleaguetablesbyvalueandvolumehavebeenrunfrom01January2008to31July2008andexcludelapsedandwithdrawndeals.Thetablescoverallsectorsandarebasedonthegeographyofeitherthetarget,bidderorsellerbeingNordic

Top 10 mid-market legal advisers – Nordic (€10mto€250m)


CEE and CIS

Echoes of Thatcher era in Eastern Europe• Privatise,privatise,privatise!Themantrawhich,under

MargaretThatcher’sleadership,transformedthe

landscapeofBritishindustryforeverinthe1980sappears

tobegrippingEasternEurope.Moldovaplanstoselloff

mostofTutun-CTC,atobaccomanufacturerwhilePivovar

Nachod,theCzechbrewer,isunderoffer.Meanwhile,

Romaniacontinuestostrugglewithitshighlypoliticised

disposalofAntibiotice,thelistedgenericsmanufacturer.

Providingtheexceptionthatprovestherule,Modern

TimesGroupofSwedenhassignedanagreementtobuy

Bulgaria’sNovaTelevisia.

• Moldova’sPublicOwnershipAgencyhasannounceditis

planningtosella91%stakeinTutun-CTC,thetobacco

producer,accordingtoDorinaCarburean,theagency’s

director.

• Carbureansaid“thestartingpriceforthe91%stake

isMLD300m(€20m)”andthetenderisscheduledfor

September22toSeptember26.Acompanysourceat

Tutun-CTCsaidturnoverfor2007wasMLD500madding

that“thevalueofTutun’sassetsstandsatMLD206m,

andweconsiderthatthecompany’smarketvalueisat

leastMLD500m”.

• BritishAmericanTobacco’sMoldovanoperationruled

itselfoutofthebiddingprocessonthegroundsthatit

alreadyownsanearbyUkranianfactory.Thiscomes

despiteanassertionbyaTutun-CTCsourcethatBAT

andJapanTobaccoInternationalwereinterestedinthe

privatisation.AJTIspokespersonsaiditisnotcompany

policytocommentonmattersconcerningmarket

strategy.

• TherewasnoreluctancefromLIFandPivovarHolbain

theCzechRepublic.Thetwocompanieshavesubmitted

writtenofferstobuy100%ofCzechbrewerPivovar

Nachod,whichisownedbytheNachodmunicipal

authority,asreportedbyHospodarskeNoviny.

• Accordingtothereport,Nachodcouncillorswilldecideon

thepossiblesaleofPivovaratameetingon8September

2008.Holba,aprivately-ownedCzechbrewer,hasoffered

CZK160m(€6.7m)forNachod,whileLIF,theCzech

privately-ownedbrewinggroup,hasofferedCZK135m.

• Romania’s highlypoliticizedsell-offofstate-owneddrug

makerAntibioticeIasimaybebackontrackbytheendof

theyear,orearlyin2009accordingtoasourcecloseto

thecompany.

• Thegovernmentdecidedtosuspendtheprivatisation,

scheduledforMarch18thisyear,inFebruaryafterthe

workers’unionofAntibioticewonacourtannulment

ofthelawthatenvisagedanopenbiddingprivatisation

methodforthefirm.

• AVAS,thestateassetsrecoveryagencybegan

procedurestosellits53%stakeinAntibioticelatelast

year,forastartingpriceofabout€136m.Anexecutive

atAlapis,whichhadbidforAntibioticepriortothe

suspensionoftheselloff,saidthecompanycouldbe

interestedinafuturebid.“Ifthesalebeginsagainwewill

certainlylookatit”hesaid.“However,therearenoactive

talksbetweenusandAntibioticeatthemoment”he

added.

• Anotherinterestedpartyisaconsortiumleadby

Biofarm,alistedRomanianpharmaceuticalscompany.

TheconsortiumismadeupofSIFOltenia,SIFBanat-

Crisana,SIFMoldova,aswellasSSIFBroker(aRomanian

brokeragehouse)andDumitruTudor(aRomanian

investor),oneofthemainshareholdersinBiofarm.

• TeodorCiurezu,vice-chairmanatSIFOltenia,criticised

AVAS’s“unilateraldecision”ofgoingforanopentender,

arguingthatthismethodofferednoguaranteefor

Antibiotice’sfutureasagenericsmaker.

• ManymembersofRomania’sparliamentwhoshared

Ciurezu’sdoubtscalledforahealthsub-commissionto

investigatetheprivatisationofwhattheydescribedas

“thelastjewelofRomania’spharmaceuticalssector.”

• Sweden’s ModernTimesGroup,theentertainment

broadcastingcompany,hadnosuchconcernsasitsigned

anagreementtoacquire100%ofNovaTelevisiaBulgaria

for€620mincash,onacashanddebtfreebasis.JP

MorganisactingasadvisortoMTG.

• MTGplanstofinancethedealfromexistingavailable

liquidfundsandfromnewdebtfinancing,andisinthe

processofarrangingapproximatelySEK3bn(€317m)of

additionaldebtfundingtofullyfinancethetransaction.

Thedealissubjecttoapprovalbyrelevantauthoritiesandis

expectedtobecompletedwithinaboutthreemonths.

• MTG’sstraightforwardacquisitionstandsoutinamonth

ofprivatisationfeverinEasternEurope.

Forthepurposesofthisreport Russiahasbeenexcludedinthedefinitionof CEE/CIS.


Dealofthemonth

Target: NovaTelevisionBulgaria Announced: 31July2008

Bidder: ModernTimesGroupMTGAB Deal value: €620m

Seller: AtennaGroup Deal nature: Recommended;Crossborder

• ModernTimesGroupMTGAB(MTG),thelistedSweden

basedbroadcastinggroup,hasagreedtoacquireNova

TelevisionBulgaria,theBulgariabasedbroadcaster,from

AntennaGroup,theGreecebasedradioandtelevision

group,foracashconsiderationof€620m($965.7m),ona

netdebt/cashfreebasis.

• Theconsiderationissubjecttoclosingadjustments.

ThetransactionwillbefundedbyMTG’sinternalcash

resourcesandfromthenewdebtfinancing.MTGis

arrangingapproximatelySEK3bn(€316.9m)ofadditional

debtfundingtosecurethefinancingofthetransaction.

MTGisoperatingDiemachannelsgroupinBulgaria

throughits50%controllinginterestinBalkanMedia

GroupLimited,whichwasacquiredfor€11.6min2007.

TheacquisitionispartofMTG’sstrategytoexpandits

operationinemergingmarketsandextenditsmulti

channelmulticountrybusinessmodel.

• Theacquisitionissubjecttoapprovalofregulatory

authoritiesanditisexpectedtobecompletedwithinthe

nextthreemonthsaftertheannouncement

CEE and CIS

Advisers


Financial MorganStanley Financial JPMorgan

Legal CliffordChance Legal -

PR BrunswickGroup PR -


Top 15 CEE & CIS announced deals for YTD 31 July 2008Announced Status Target company Sector Bidder company Seller company Exit multiples (x) Bid Premia



18-Jun-08 P ZentivaNV(75.12%stake) Pharma,Medical&Biotech

Sanofi-AventisSA 3.4 16.1 31.2 0.8% 1,741

2-May-08 L ZentivaNV(80.90%stake) Pharma,Medical&Biotech

AnthiaroseLimited 3.1 14.5 27.0 3.1% 1,659

5-Feb-08 C AESEkibastuzLLP;andMaikubenWestLLP


KazakhmysPlc AESCorporation 8.0 0.0% 1,011

20-Jun-08 P JSCKazkommertsbank(17.12%stake)

FinancialServices

AlnairCapital n/a n/a 18.1 0.0% 933

10-Mar-08 C MOLHungarianOilandGasPublicLimitedCompany(8%stake)


OmanOilCompanySAOC

2.8 8.1 41.9 9.8% 842

13-Jun-08 C EuromedicInternationalNV


AresLifeSciences;andMerrillLynchGlobalPrivateEquity

WarburgPincusLLC

0.9 7.0 9.2 10.2% 831

18-Jan-08 C VakaruSkirstomiejiTinklai(97.10%stake)


LEOLT NDXEnergija 5.8 28.6 0.0% 800

18-Jan-08 C LietuvosEnergijaAB(96.40%stake)


LEOLT GovernmentofLithuania

2.1 11.9 53.0 -6.2% 706

31-Jul-08 P NovaTelevisionBulgaria TMT ModernTimesGroupMTGAB

AntennaGroup 0.0% 620

11-Feb-08 P OTPGaranciaInsuranceLtd

FinancialServices

GroupamaSA OTPBankPlc n/a n/a 0.0% 612

18-Jan-08 C RytuSkirstomiejiTinklaiAB(71.35%stake)


LEOLT GovernmentofLithuania

1.8 12.7 92.9 18.8% 607

4-Feb-08 C Pravex-BankJointStockCommercialBank

FinancialServices

IntesaSanpaoloSpA

n/a n/a 149.5 0.0% 516

11-Mar-08 C CzechCoalGroup(80%stake)


CzechCoalGroup 0.0% 459

12-Feb-08 C PivovarnaLasko(58%stake)

Consumer InfondHolding;andFidina

5.8% 438

17-Mar-08 P JSCBankCenterCredit(29.99%stake)

FinancialServices

KookminBank n/a n/a 0.0% 400


Topdeals

CEE and CISCEE and CIS


TopDeals

CEE and CIS

Top 5 CEE & CIS announced deals of the month (July 2008)Announced Status Target company Sector Bidder company Seller company Exit multiples (x) Bid Premia



31-Jul-08 P NovaTelevisionBulgaria TMT ModernTimesGroupMTGAB

AntennaGroup(Greece)

- 620

7-Jul-08 C LimnotexDevelopmentsLtd(25%stake)

TMT VimpelCom CrowellInvestmentsLimited

- 357

30-Jul-08 P BelarusTelecommunicationsNetwork(80%stake)

TMT TurkcellIletisimHizmetleriAS

GovernmentofBelarus

390.6 - 321

22-Jul-08 P AegonPTESA(49.70%stake)

FinancialServices

AegonWoningenNovaBV

BREBankSA n/a n/a - 150

28-Jul-08 P TopToneMediaHoldingsLimited(TV2channelandRingTVassets)(80%stake)

TMT CentralEuropeanMediaEnterprisesLtd

TopToneMediaHoldings

- 109



TopDeals

CEE and CIS

Top 5 Croatian announced deals for YTD 31July 2008Announced Status Target company Sector Target/seller

financial adviser


Bidder company




30-Apr-08 C EuropaMilDOO Consumer WolfTheiss LUKOILEuropeHoldingsBV

WolfTheiss 40

26-Jun-08 C EuroFoodMarktdoo

Consumer Swisslion-Takovodoo

20

28-Apr-08 C ZagrebPlakatdoo(49%stake)

TMT Mediadoo MunicipalityofZagreb

15

8-Jul-08 C ArborInformatikadoo(70%stake)

TMT AssecoSouthEasternEuropeSA

11

7-Jan-08 C ZdenkaMlijecniProizvodidoo

Consumer CautioNasice;andGranoliodoo

IndependentAdvisor

Savoric&Partners

HrvatskaFondzaPrivatizacijuHFP(CroatianPrivatisationFund)

10


Top 5 Azerbaijan announced deals for YTD 31 July 2008Announced Status Target company Sector Target/






22-Feb-08 C KarasuOperatingCompany(85%stake);andKuraValleyOperatingCompany(80%stake)


Notdisclosed

Notdisclosed

GlobalInvestmentEnergy

NationsPetroleumCompanyLtd

229

12-Feb-08 C AzercellTelekomBM(35.70%stake)

TMT AzertelTelekomunikasyonveYatirimDisTicaret

Baker&McKenzie

123

15-Apr-08 P Baku-CastelBreweryCompany(92.80%stake)

Consumer FreshfieldsBruckhausDeringer

JSCBaltikaBreweries

BrasseriesInternationalesHoldingLtd

32

18-Feb-08 C ConsolidatedSupplyManagementLtd(AzerbaijanandTrinidadbasedoilandgaslogisticsoperations)

Transportation ASCOplc KPMGCorpFin

ConsolidatedSupplyManagementLtd

20

2-Jul-08 C NikoilInvestmentCommercialBank(53.10%stake)

FinancialServices

TopazInvestments 9



ExpectedDeals

CEE and CIS




Seller company Market cap/ est. value

(€m)

Comments

Takeovertarget GlobeTradeCentreSA

Construction KardanNV 2,323 IsraelilistedinvestmentandholdingcompanyKardanNVisconsideringanacquisitionoftheremainingstakelistedPolishrealestatecompanyGTC.KardanNVcurrentlyholds64.3%ofGTC.SofarnoinformationisavailableonthepriceoftheremainingsharesofGTC,oronwhetherthetransactionwouldinvolveanexchangeofshares.

Takeovertarget PoslovnisistemMercatordd

Consumer InfondHolding;PivovarnaLasko;andIstrabenz

1,224 InfondHolding,thelistedSlovenianprivateequityfund,ispreparingtolaunchamandatorypublicofferfortherestofsharesinMercator,thelistedfoodretailer.Infondhasa25%stake,whilePivovarnacontrolsastakeof20.76%intheretailer,aspostedontheLjubljanaStockExchange.

SignificantM&A StoczniaGdyniaSA;andStoczniaSzczecinskaNowa

IndustrialUnionofDonbassCorporation;PolishShipbuildingCompany;andMostostalChojniceSA

StateTreasuryofPoland

640 ThePolishTreasuryhasagreedtotheconditionsofthesaleofstate-controlledPolishshipyardStoczniaGdyniatoUkrainianindustrialgroupISD.GazetaWyborczareportedthis,citingunofficialsources,andaddedthatonlycertaintechnicalissuesremaintobesortedout.ThereportsaidthatGdyniawillreceiveadditionalgovernmentaidofPLN1.35bn(EUR421.3m).ThissumwasagreeduponduringnegotiationsbetweenthePolishTreasury(MSP)andISD.GazetaWyborczaalsowrotethatitisknownthatISDwillinvestaminimumofEUR320mintheshipyard,andthissumcouldgouptoasmuchasEUR640m.Thereportsaid,citingtheISDspokesperson,thatcertainaspectsofthetransaction,includingthefundstosecureit,andbankguarantees,havenotyetbeenestablished.AreportinGazetaPrawna,whichcitedthePolishdeputytreasuryministerZdzislawGawlik,saidthatfinalbidsforStoczniaGdyniaandstate-controlledshipyardStoczniaSzczecinskaNowa(SSN)canbesubmittedbythenextFriday(8August).BothshipyardshavetobeprivatisedbytheendofSeptember,thepaperadded.Thereportsaidthatprivately-heldPolishsteelworksMostostalChojnicehasconfirmedinterestinSSN.Gdyniaisallegedlybeingeyedbyprivately-ownedPolishshipyardPolishShipbuildingCompany,Gazetaadded.

Takeovertarget GedeonRichter Pharma,Medical&Biotech

MNV GovernmentofHungary

615 GedeonRichter,alistedHungarianpharmaceuticalfirm,willseeits25%state-ownedstakeputupforprivatisation.Thegovernmentholdsa25%stakeinGedeonRichter.ThesaleofthisstakecouldreacharoundEUR615andEUR820m.


ExpectedDeals




Seller company Market cap/ est. value

(€m)

Comments

SignificantM&A ActionSA TMT ABCData 591 Action,oneofthelargestlistedPolishITgoodsdistributorsandcomputermanufacturers,wantstosignaletterofintentoveratakeoveroramergerwithalargecompany,bytheendofJuly,reportedPulsBiznesu.However,nonamesofthepartnershavebeenrevealed.Atpresent,ActionisnotintalkswithPolishrivalABCData,butitisthinkingofconsolidationwithothercompanies.

Takeovertarget BankOchronySrodowiska

FinancialServices

SkandinaviskaEnskildaBanken

GovernmentofPoland

350 ThePolishMinistryoftheEnvironmentwantslistedBankOchronySrodowiskaS.A.(BOS)privatisedagain.SwedishbankSkandinaviskaEnskildaBanken(SEB)isconsideringinvestinginBOSagain.BOS'mainshareholdersarecurrentlyNarodowyFunduszOchronyŒrodowiskaiGospodarkiWodnej(NFOSiGW)-77.54%,PanstwoweGospodarstwoLesneLasyPanstwowe(PGLLP)-5.74%andWojewódzkiFunduszOchronyŒrodowiskaiGospodarkiWodnejwKatowicach-5.6%.

SignificantM&A Antibiotice Pharma,Medical&Biotech

Biofarm;SIFOltenia;SIFBanat-Crisana;SIFMoldova;andSSIFBroker

157 Some27potentialbidders,includingBiofarm,havesubmittedlettersofintenttobuya53.02%AVAS'state-ownedstakeinAntibiotice,thelistedRomanianpharmaceuticalsmaker.DrReddy’sLaboratories,LupinandRanbaxyLaboratoriesofIndiaarepotentialbiddersfora53%holdinginAntibiotice.TheAntibiotice’sauctionreservedpriceofUSD200m(INR8bn).TheGovernmentofRomaniahasannulledthelawadoptedlastyeartosellAntibioticeviaopentender.HoweverAVAS,thestateassetsrecoveryagencywhichownsa53.0175%stakeinthelistedpharmacompany,saiditwouldcontinuewiththesale.LavrentiadesGroupwilllooktoacquireAntibioticewithin12months.

Takeovertarget ArtmanSA Consumer LPPSA CopernicusSecurities(B)

KrzysztofBajolek(individualinvestor);JanPilch(privateinvestor);andArkadiuszBajolek(privateinvestor)

116 LPPhasreceivedallexternalclearancesforitstakeoverofArtman,thelistedPolishclothinggroup,confirmedCFO,DariuszPachla.ThecompanyreceivedtherequiredapprovalfromthePolishcompetitionauthority(UOKiK)twoweeksago,aftermakingaformalrequestforclearanceinAprilfollowingthesigningofaletterofintent.

Source:mergermarket


Leaguetables

value

YTD 31-Jul-08

House Value (€m)

Deal count



3 JPMorgan 2,381 4

4 EvliBank 2,182 4

5 HSBCBank 2,155 3




9 RenaissanceCapital 1,328 4


11 RaiffeisenInvestment 1,044 8


13 ABNAMRO 1,011 1

14 KBCSecurities 866 4


Source:mergermarket

volume

Thefinancialadviserleaguetablesbyvalueandvolumehavebeenrunfrom01January2008to31July2008andexcludelapsedandwithdrawndeals.Thetablescoverallsectorsandarebasedonthegeographyofeitherthetarget,bidderorsellerbeingCEE&CIS

YTD 31-Jul-08

House Value (€m)

Deal count

1 RaiffeisenInvestment 1,044 8

2 Deloitte 40 8



5 JPMorgan 2,381 4

6 EvliBank 2,182 4


8 RenaissanceCapital 1,328 4

9 KBCSecurities 866 4

10 Ernst&Young 25 4


12 HSBCBank 2,155 3


14 Lazard 46 3

15 SEBEnskilda 40 3

Source:mergermarket

Top 15 financial Advisers - CEE & CIS

value

YTD 31-Jul-08

House Value (€m)

Deal count




4 White&CaseLLP 2,952 7

5 Sorainen 2,203 9

6 Allen&OveryLLP 1,995 6

7 Glatzova&Co 1,809 3


9 BrzobohatyBroz&Honsa(BBH) 1,659 1



12 DordaBruggerJordis 1,011 2

13 WeilGotshal&MangesLLP 876 9

14 Vinson&ElkinsLLP 831 1

15 WolfTheiss 550 4

Source:mergermarket

volume

Thelegaladviserleaguetablesbyvalueandvolumehavebeenrunfrom01January2008to31July2008andincludelapsedandwithdrawndeals.Thetablescoverallsectorsandarebasedonthegeographyofeitherthetarget,bidderorsellerbeingCEE&CIS

Top 15 legal Advisers - CEE & CIS

CEE and CIS

YTD 31-Jul-08

House Value (€m)

Deal count



3 Sorainen 2,203 9

4 WeilGotshal&MangesLLP 876 9


6= White&CaseLLP 2,952 7

6= FreshfieldsBruckhausDeringer 2,992 6

8 Allen&OveryLLP 1,995 6

9 CMS 208 5


11 WolfTheiss 550 4

12 RaidlaLejins&Norcous 63 4

13 Glatzova&Co 1,809 3

14 Shearman&SterlingLLP 476 3

15 Dewey&LeBoeufLLP 412 3

Source:mergermarket


Activitytables

value

YTD 31-Jul-08

House Value (€m)

Deal count

1 AlnairPrivateEquityGroup 933 1

2= AresLifeSciences 800 1

2= MerrillLynchGlobalPrivateEquity 800 1

2= WarburgPincus 800 1

5 IconPrivateEquity 226 1

Source:mergermarket

volume

TheprivateequitybuyoutactivitytablesbyvalueandvolumearebasedonprivateequityfirmsadvisingthebidderonbuyoutdealswherethedominantgeographyofthetargetcompanyisCEE&CISThetablesbyvalueandvolumehavebeenrunfrom01January2008to31July2008andexcludelapsedandwithdrawndeals

YTD 31-Jul-08

House Value (€m)

Deal count

1 PentaInvestmentsLimited 108 5

2 ArcaInvestmentsa.s. 10 2

3 AlnairPrivateEquityGroup 933 1



Source:mergermarket

Activity table of private equity firms on CEE & CIS buyouts

value

YTD 31-Jul-08

House Value (€m)

Deal count



1= WarburgPincusLLC 800 1

4 EspigaCapitalInversionSCRSA 30 1

5 BaltCapManagement 27 1

Source:mergermarket

volume

TheprivateequityexitactivitytablesbyvalueandvolumearebasedonprivateequityfirmsadvisingthevendoronexitdealswherethedominantgeographyofthetargetcompanyisCEE&CISThetablesbyvalueandvolumehavebeenrunfrom01January2008to31July2008andexcludelapsedandwithdrawndeals

Activity table of private equity firms on CEE & CIS exits

CEE and CIS

YTD 31-Jul-08

House Value (€m)

Deal count



1= WarburgPincusLLC 800 1

4 EspigaCapitalInversionSCRSA 30 1

5 BaltCapManagement 27 1

Source:mergermarket


Trendgraphs

CEE and CIS M&A quarterly trend

value volume


0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

Q3 2008*

Q22008

Q12008

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valu

e €m

0

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ber

of d

eals

CEE and CIS M&A quarterly private equity trend

value volume

0

1,000

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5,000

Q3 2008*

Q2 2008

Q1 2008

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valu

e €m

CEE and CIS buyouts

CEE and CIS exits

0

5

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25

Q3 2008*

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CEE and CIS buyouts

CEE and CIS exits

CEE and CIS


Trendgraphs

CEE and CIS M&A annual trends - value

value volume

0

10

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2008 YTD20072006200520042003

valu

e €m

All CEE and CIS M&A

CEE and CIS buyouts

CEE and CIS exits

0

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num

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All CEE and CIS M&A

CEE and CIS buyouts

CEE and CIS exits

CEE and CIS M&A annual trends - volume

value volume


Consumer

TMT


Financial services

Business Services

Construction

Transportation

Leisure


Agriculture

7.4%

2.9%0.8%

4.7%

32.4%

22.3%

1.3%

2.5%

24.3%

0.9%

0.5%

10.1%

10.5%

7.5%

9.7%

4.5%

3.4%

1.9%2.2%

19.9%

19.1%

11.2%


Consumer

TMT


Financial services

Business Services

Construction

Transportation

Leisure


Agriculture

CEE and CIS


Mid-marketdeals

CEE and CIS

CEE & CIS M&A quarterly Mid-market trend

value volume

0

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Q32008*

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valu

e €m

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ber

of d

eals



Top 10 CEE & CIS announced mid market deals of the month (July 2008)(€10mto€250m)Announced Status Target company Sector Target/





Seller company Deal value(€m)

22-Jul-08 P AegonPTESA(49.70%stake)

FinancialServices

AegonWoningenNovaBV

BREBankSA 150

28-Jul-08 P TopToneMediaHoldingsLimited(TV2channelandRingTVassets)(80%stake)

TMT CentralEuropeanMediaEnterprisesLtd

TopToneMediaHoldings

109

31-Jul-08 P Logosas TMT CorumGroup

NessTechnologiesInc

43

14-Jul-08 P Cemat-SiliconSA TMT TopsilSemiconductorMaterialsA/S

Cemat70SA;andInstituteofElectronicMaterialsTechnology

23

2-Jul-08 P GMACCommercialFinanceSpzoo

FinancialServices

SkandinaviskaEnskildaBankenAB

SEBEnskilda

Linklaters GMACCommercialFinanceLLC

22

15-Jul-08 P JSVArmila(92%stake)


DnBNORD

Sorainen Andreae-NorisZahnAG

20

31-Jul-08 P CinemaCityMallsAD(45%stake);andMOPlovdivAD(15%stake)

FinancialServices

ITSofia2007BV;andITSofiaBV

OcifInvestments&DevelopmentLtd

18

7-Jul-08 C Perla-BrowaryLubelskieSA(PerlaLublinBreweries)(52%stake)

Consumer SouthbeachDevelopment

SteadEnterprise

18

16-Jul-08 C AtlasGIPSA(86%stake)


WeatherfordInternationalLtd

TenderGroup 17

9-Jul-08 C UkrainianBacon(80%stake)

Consumer MHPSA 16


Mid-marketdeals

CEE and CIS



YTD 31-Jul-08

House Value (€m)

Deal count

Value:

1 RenaissanceCapital 395 3


3 RaiffeisenInvestment 282 3


5 AIBCorporateFinance 216 1

6 TroikaDialogGroup 194 1

7= BNPParibas 178 1

7= Rothschild 178 1



Volume:


2 RaiffeisenInvestment 282 3



5 Lazard 46 2

6 SEBEnskilda 40 2


8 AIBCorporateFinance 216 1


10 BNPParibas 178 1

Source:mergermarket

Thefinancialadviserleaguetablesbyvalueandvolumehavebeenrunfrom01January2008to31July2008andexcludelapsedandwithdrawndeals.Thetablescoverallsectorsandarebasedonthegeographyofeitherthetarget,bidderorsellerbeingCEE&CIS

Top 10 Mid-market financial Advisers - CEE & CIS(€10mto€250m)

YTD 31-Jul-08

House Value (€m)

Deal count

Value:



3 Dewey&LeBoeuf 412 3


5 Linklaters 274 5


7= Dimitrov,Tchompalov&Todorova 216 1

7= Kirkland&Ellis 216 1

7= SidleyAustin 216 1

10 CMS 208 4

Volume:


2 Linklaters 274 5

3 CMS 208 4




7 Sorainen 48 3



10 VasilKisil&Partners 201 2

Source:mergermarket

Thelegaladviserleaguetablesbyvalueandvolumehavebeenrunfrom01January2008to31July2008andincludelapsedandwithdrawndeals.Thetablescoverallsectorsandarebasedonthegeographyofeitherthetarget,bidderorsellerbeingCEE&CIS

Top 10 Mid-market legal Advisers - CEE & CIS(€10mto€250m)

CEE and CIS

Russia


TNK-BP Rivalry• TNK-BP,oneofthelargestprivatelyownedoilcompanies

intheworldisbeingtornapartbyitsownersduetomanagementissuesanddisagreementsoverthecompany’sstrategy.Thestruggletowinthecontrolofthecompanyhasreachednewheights,bringingmoreharmthangoodtotheentityanditsstakeholders.

• Theconflictcomesasbadnewstooutsideinvestorswholooktotheventureforindicationofstabilityandgrowthintheforeigninvestmentsector.Unfortunately,therearenosignsofpeacefulresolutioninthenearfuture.BPhasalreadyredeployedthemajorityofitskeypersonneltootherprojectsandhasblockedthepaymentofdividendstotheshareholdersinanefforttoregainpower,stressingtheseverityoftheissues.

• TheoutcomeofthisbattlewillmostlikelyhaveanegativeaffectontheM&AactivityinRussia,whilewemayseeamildlossofconfidencefromtheinternationalinvestors,thedomesticacquisitionswillcontinuetogrow.

AAA Motors open to talks with investment funds for stake sale until end of August, adviser says • AAAMotors,aprivately-held,Russiancardealer,will

beopentotalkswithinvestmentfundsuntiltheendofAugust,saidVitalyBogomolovofVertexGroupwhoisadvisingonthedeal.Thecompanywouldbeinterestedinsellinga25%to50%stake.Bogomolovsaidthatthecompanyisplanningtoraisebetween$50mand$100mfromthesale.

• Thecurrentownerswillretainthecontrolofthecompany.

• Theadvisersaidthecompanywouldissueadditionalequitytoinvestors.AAAMotorsisfullycontrolledbyAAAGroup,aRussianprivatediversifiedholding,whichismainlyinvolvedinrealestateanddistribution.

Aleksiya open to sale talks, founder says

• OOOAleksiya,aprivate,Russianchainofpetrolstations,isforsale,saidfounderAlekseyTarubarov.Hesaidthecompanywaswortharound$30m.AleksiyaconsistsofsevenpetrolstationsintheBelgorodregionandoilstoragefacilitiesinKurskregion.ThecompanyispartofAleksiyaGroup,whichownspetrolstationsinKurskregion,hesaid.TarubarovplanstoinvesttheproceedsfromthesaleinhisrealestatebusinessinKursk.

• Hesaidhehadnopreferenceforeitherastrategicoffinancialinvestor,thoughafinancialbuyerwouldlikelyallowhimtocontinuemanagingthebusiness.Hesaidhedidnotwanttosellthepetrolstationsseparately,andwouldonlysellthemasaunit.

• Thecompanyrecentlylauncheditsownbrand,Antoil,forsomeofthepetrolstations.

• Thestationsoccupyanaverageofonehectareofland.Threeofthemhaveattachedcardealerships,whicharerentedouttoautoretailers.

• AleksiyaalsoownsanoilstoragefacilityintheKurskregionwhichisintheprocessofbeingbuilt.

• Tarubarovnotedthatthecompanyhadnotaxproblemsorotherdifficultieswiththeauthorities.Aleksiyahas80employees,whileAleksiyaGrouphas1000.Salesaregrowingat10%monthly.

• Tarubarovaddedthathewouldnotseekabuyerfortherealestatebusiness.

Russia

Russia


Grand interested in selling stake, CEO says

• Grand,aprivate,Russianteaandcoffeecompany,isinterestedinsellingastaketoastrategicinvestor,saidCEOAleksanderBorisov.Hesaidthatthecompanycouldpossiblysellaportionofitsteaandcoffeebusinessestooneorseveralseparateinvestors.In2004GrandcreatedajointventurewithGermanconsumercompany,Kruger,andfoundedaRussian-GermanenterprisethathadaseparatelegalunitinsideGrand.Thesamedealstructuremightbeadoptedforafutureacquisition,Borisovnoted.

• Whenaskedaboutsizeofthestake,hesaidthathewouldprefer50%,butdependingontheofferhewouldalsoconsidersellingacontrollingshare.BorisovsaidGrandisnotlookingtoexitthebusinessandisinterestedinpartnerswithlong-termdevelopmentplans.

• ItisunderstoodthatPricewaterhouseCooperswillactasanadviseronthedealandthatGrandhasalreadyhiredalegaladvisor.

• Grandexpectstopostaturnoverof$120min2008andhasover1,000employees.

• Grandisconsideredoneofthetop5teaandcoffeecompaniesinRussiaandhaspackagingfacilitiesinandaroundMoscowandIrkutks.Itcontrolsabout7%oftheteamarketand7%oftheinstantcoffeemarket.

• Whenaskedaboutthepossibilityofalisting,BorisovsaidthatitwasanoptionforacompanyofGrand’ssizewiththecurrentmarket.

• Grandhasestablishedtraderelationswithcoffeeandteaproducersandsuppliesitsproductstobothretailersandwholesalersthroughitsbroaddistributionnetwork.

Diaf is open to sale talks, source says • Diaf,aprivateRussianfishprocessingenterprise,isfor

sale,accordingtosourcefamiliarwiththesituation.ItisunderstoodthatBRMB(BankGotovogoBisnesa),aRussianinvestmentcompany,isactingasanexclusiveadvisoronthissale.Thesourcevaluedthecompanyataround$18.5m.

• Thesourcesaidtheownerisopentotalkswithbothfinancialinvestorsandstrategicbuyers,andheisexitingthebusinessashasdecidedtomovetoanotherregion.

• DiafislocatedinthecityofBarnaul,intheAltairegionofRussia.ItsuppliesitsproductstoshopsandrestaurantsoftheregionandalsohasclientsinMoscow,St.PetersburgandregionsofNovosibirsk,KemerovoandTomsk.Diafhasitsownshopsaswell.

• Thecompanymanufacturesfrozen,smokedandsaltedfishandalsopackagescaviar.Theenterprisehasalltherequiredlicensesforproduction,andtheregisteredbrandname.Itmanufacturessixtoeighttonsoffishproducedailyandtheproductionvolumescouldbeincreased,accordingtothesource.

Russia

Russia


Dealofthemonth

Target: ZAOBegun Announced: 18July2008

Bidder: GoogleInc Deal value: €88.34m

Seller: RamblerMediaLimited Deal nature: Recommended

Description • GoogleInc,thelistedUSbasedmediacompany,

hasagreedtoacquireZAOBegun,theRussiabased

advertisingfirm,fromRamblerMediaLimited,thelisted

Russiabasedinternetandmediacompany,foratotal

cashconsiderationof€88.34m.

Terms

• Underthetermsoftheagreement,Rambler,which

currentlyholdsa50.1%inBegun,willacquirethe

remaining49.9%stakefromBannatyneLimitedandthen

sellBegun’sentireissuedcapitaltoGoogle.

Rationale

• ThetransactionisinlinewithGoogle’sstrategytoexpand

itsadvertisingservicesintheRussianmarket.

Conditions• Thetransactionissubjecttocustomaryclosingconditions

andreceiptofapplicableregulatoryapproval.Itis

expectedtobecompletedinthethirdquarterof2008.

Advisers


Financial ING Financial Internal

PR CliffordChance PR White&Case

Russia


Topdeals

Top 15 Russian announced deals for YTD 31 July 2008Announced Status Target company Sector Bidder company Seller company Exit multiples (x) Bid premia



17-Apr-08 C KMInvestZAO(50%stake)

FinancialServices

InterrosCompany OneximGroup 4,641

29-Feb-08 C TGK-10 Energy,Mining&Utilities

FortumOyj UnifiedEnergySystemsofRussia

3.7 39.9 177.9 13.3% 2,283

02-May-08 P SiburHoldingJSC(50%stake)


HidronHoldingsLtd GazprombankJSB

0.8 3.7 4.6 1,903

15-May-08 P VolzhskayaTGKOAO(77%stake)


IntegratedEnergySystems

UnifiedEnergySystemsofRussia

27.5% 1,886

11-Feb-08 P TGK-8 Energy,Mining&Utilities

OAOLukoil FinancialGroupIFDCapital

244.6 1777.3 4.3% 1,508

16-Jun-08 C Polymetal(68.03%stake)


InureEnterprisesLtd;PPFGroupNV;andQuotanInternationalLimited

AniketaInvestmentsLimited

8.8 84.3 1,306

20-Mar-08 P LebedyanskyJSC Consumer PepsiCoInc;andPepsiBottlingGroupInc

2.0 0.2 -3.8% 1,288

17-Feb-08 C NKAllianceOAO Energy,Mining&Utilities

WestSiberianResourcesLtd

Bazhaevfamily(PrivateInvestor)

0.9 10.8 19.6 1,026

07-Apr-08 P TGK-4 Energy,Mining&Utilities

OneximGroup UnifiedEnergySystemsofRussia

5.3% 1,019

14-Mar-08 P TGK-2 Energy,Mining&Utilities

RWEAG;andSintezGroupCoLimited


2.0 25.5 1292.2 902

29-Feb-08 C AvtoVAZ(25%stake) Industrials&Chemicals

RenaultSA RussianTechnologiesStateCorporation

768

14-Mar-08 P TGK-6(80.14%stake) Energy,Mining&Utilities

IntegratedEnergySystems


3.0 47.9 4.7 5.8% 746

22-Feb-08 L B.I.N.Bank(99%stake) FinancialServices

VadimNikolaevichMoshkovich(PrivateInvestor)

MikhailOsmanovichShishkhanov(PrivateInvestor)

60.8 674

11-Apr-08 C FormataHoldingBV Consumer X5RetailGroupNV 1.1 13.1 46.2 584

17-Apr-08 C JSCOpenInvestments(27.5%stake)

FinancialServices

OneximGroup KMInvestZAO 26.7 517


Russia


Topdeals

Top 5 Russian announced deals of the month (July 2008)Announced Status Target company Sector Bidder company Seller company Exit multiples (x) Bid premia



02-Jul-08 C ZAOSpasskiyeVorotaInsuranceGroup(75%stake)

FinancialServices

StolichnayaStrakhovayaGruppa

194

16-Jul-08 C ZAONova-Stroy Construction LSRGroupLimited

100

17-Jul-08 C SDM-Bank(78.00%stake)

FinancialServices

BankHapoalimBM

12.2 90

18-Jul-08 P ZAOBegun TMT GoogleInc RamblerMediaLimited

88

30-Jul-08 P CampoMos Consumer AtriaGroupPlc CampofrioAlimentacionSA

75


Russia


Pipeline of Russian expected dealsSituation Target company Sector Financial adviser Seller

companyPotential bidder company

Market cap/ est. value

(€m)

Comments

ExpectedDeal

NorilskNickelMMC(OJSC)


ZAOHoldingCompanyMetalloinvest

VladimirPotanin(Privateinvestor)

26,974 NorilskNickelwouldonlyconsideramergerwithMetalloinvestifNorilskistobethe"base"forthetie-up.Themanagement'sproposalsaretospinofftheassetstotheshareholders.

ExpectedDeal

KAMAZInc. Automotive DaimlerAG TroikaDialog 3,071 TroikaDialoghasconfirmedthatthelistedGermancarproducerDaimleristheexclusivepartnerinnegotiationsoveracquiring42%ofKamAZ,fromTroika.

Expecteddeals

Russia


Leaguetables

value

YTD 31-Jul-2008

House Value (€m)

Deal count





5 JPMorgan 4486 6


8 ABNAMRO 4205 5

7 AlfaBank 3988 5


10 UBS 3259 4

11 Citigroup 3230 7

12 Rothschild 2643 7

13 DresdnerKleinwort 2636 3

14 HandelsbankenCapitalMarkets 2233 1

15 GoldmanSachs 2170 4

Source:mergermarket

volume

Thefinancialadviserleaguetablesbyvalueandvolumehavebeenrunfrom01January2008to31July2008andexcludelapsedandwithdrawndeals.Thetablescoverallsectorsandarebasedonthegeographyofeitherthetarget,bidderorsellerbeingRussia

YTD 31-Jul-2008

House Value (€m)

Deal count





5 Citigroup 3230 7

6 Rothschild 2643 7

7 JPMorgan 4486 6


9 ABNAMRO 4205 5

10 AlfaBank 3988 5


12 UBS 3259 4

13 GoldmanSachs 2172 4

14 DresdnerKleinwort 2636 3

15 ING 688 3

Source:mergermarket

Top 15 financial advisers - Russia

value

YTD 31-Jul-2008

House Value (€m)

Deal count



3 McCarthyTetrault 4466 1

4 AkinGumpStraussHauer&Feld 4395 6

5 White&Case 3899 11

6 Linklaters 3794 7



9 Chadbourne&Parke 2529 3

10 SALANS 2503 2

11 Blake,Cassels&Graydon 2487 2

12 SkaddenArpsSlateMeagher&Flom 2343 5

13 BennettJones 2233 1

14 BakerBotts 1903 1

15 Debevoise&Plimpton 1886 1

Source:mergermarket

volume

Thelegaladviserleaguetablesbyvalueandvolumehavebeenrunfrom01January2008to31July2008andincludelapsedandwithdrawndeals.Thetablescoverallsectorsandarebasedonthegeographyofeitherthetarget,bidderorsellerbeingRussia

YTD 31-Jul-2008

House Value (€m)

Deal count






6 AkinGumpStraussHauer&Feld 4,395 6



9 Squire,Sanders&Dempsey 927 5

10 Chadbourne&Parke 2,529 3


12 Baker&MacKenzie 1,026 3

13 Hogan&Hartson 913 3

14 JonesDay 247 3

15 SALANS 2,503 2

Source:mergermarket

Top 15 legal advisers - Russia

Russia


YTD 31-Jul-2008

House Value (€m)

Deal count

1 TPG 509 1

2 LionCapital 381 1

3= GLGPartners 217 1

3= TroikaCapitalPartners 217 1

5 AlfaCapitalPartners 177 1

YTD 31-Jul-2008

House Value (€m)

Deal count

1 RenovaCapital 26 2

2 TPG 509 1

3 LionCapital 381 1

4= GLGPartners 217 1

4= TroikaCapitalPartners 217 1

YTD 31-Jul-2008

House Value (€m)

Deal count

1 CitigroupVentureCapitalEquityPartners

200 1

2= CapManGroup 50 1

2= FinamInvestment 50 1

2= UFGPrivateEquityFund 50 1

5 AhlstromCapital 0 1

YTD 31-Jul-2008

House Value (€m)

Deal count

1 CitigroupVentureCapitalEquityPartners

200 1

2= CapManGroup 50 1

2= FinamInvestment 50 1

2= UFGPrivateEquityFund 50 1

5 AhlstromCapital 0 1

TheprivateequitybuyoutactivitytablesbyvalueandvolumearebasedonprivateequityfirmsadvisingthebidderonbuyoutdealswherethedominantgeographyofthetargetcompanyisRussiaThetablesbyvalueandvolumehavebeenrunfrom01January2008to31July2008andexcludelapsedandwithdrawndeals

TheprivateequityexitactivitytablesbyvalueandvolumearebasedonprivateequityfirmsadvisingthevendoronexitdealswherethedominantgeographyofthetargetcompanyisRussiaThetablesbyvalueandvolumehavebeenrunfrom01January2008to31July2008andexcludelapsedandwithdrawndeals

Leaguetables

value

value

volume

volume

Activity table of private equity firms on Russian buyouts

Activity table of private equity firms on Russian exits

Russia


Trendgraphs

Russian M&A quarterly trend

value volume


0

5,000

10,000

15,000

20,000

25,000

30,000

Q3 2008*

Q22008

Q12008

Q42007

Q32007

Q22007

Q12007

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Q32006

Q22006

Q12006

Q42005

Q32005

Q22005

Q12005

Q42004

Q32004

Q22004

Q12004

Q42003

Q32003

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valu

e (€

m)

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100

Q3 2008*

Q22008

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Q32007

Q22007

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Q32006

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Q4 2005

Q32005

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Q32004

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Q32003

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num

ber

of d

eals

Russian M&A quarterly private equity trend

value volume

0

500

1,000

1,500

2,000

2,500

3,000

3,500

Q3 2008*

Q22008

Q12008

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Q32007

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Q32006

Q22006

Q1 2006

Q42005

Q32005

Q22005

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Q32004

Q22004

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Q42003

Q32003

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Q1 2003

valu

e €m

Russian buyouts

Russian exits

0

2

4

6

8

10

Q3 2008*

Q22008

Q12008

Q42007

Q32007

Q22007

Q12007

Q42006

Q32006

Q22006

Q1 2006

Q42005

Q32005

Q22005

Q12005

Q42004

Q32004

Q22004

Q12004

Q42003

Q3 2003

Q22003

Q12003

num

ber

of d

eals

Russian buyouts

Russian exits

Russia


Trendgraphs

Russian M&A annual trends

value volume

Russian M&A sector breakdown YTD 2008

value volume

5.1%

1.1%

5.6%

1.7%

16.4%

1.1%2.3%

9%

17.5%1.7%

27.7%

10.7%

Financial Services



Business Services

Consumer

Defence

Transportation

TMT


Construction

Agriculture

Leisure

0

10

20

30

40

50

60

70

80

2008 YTD2007 2006200520042003

valu

e €b

n

All Russian M&A

Russian buyouts

Russian exits

0

50

100

150

200

250

300

350

2008 YTD20072006200520042003

num

ber

of d

eals

All Russian M&A

Russian buyouts

Russian exits

Financial Services



Business Services

Consumer

Defence

Transportation

TMT


Construction

5.1%20.4%

41.7%

14.1%

0.9%

11.6%

1.8%

2.4% 1.5%

2.4%

Russia


Mid-marketdeals

Top 10 Russian announced mid-market deals of the month (July 2008) (€10mto€250m)






02-Jul-08 C ZAOSpasskiyeVorotaInsuranceGroup(75%stake)

FinancialServices

StolichnayaStrakhovayaGruppa

194

16-Jul-08 C ZAONova-Stroy Construction LSRGroupLimited 100

17-Jul-08 C SDM-Bank(78%stake)

FinancialServices

BankHapoalimBM Internal White&Case

90

18-Jul-08 P ZAOBegun TMT ING CliffordChance

GoogleInc Internal White&Case

RamblerMediaLimited

88

30-Jul-08 P CampoMos Consumer AtriaGroupPlc CampofrioAlimentacionSA

75

18-Jul-08 C Saint-PetersburgCartonboardandPrintingMill(56%stake)


Notdisclosed

Notdisclosed

KnaufGipsSt.PetersburgZAO

Notdisclosed

Notdisclosed

OAOGroupIlim 63

15-Jul-08 C K-Systems(50%stake)

TMT EduardVoronetsky(privateinvestor)

GeorgyGens (PrivateInvestor)

63

18-Jul-08 C OJSCNewsMedia(50%stake)

TMT NationalMediaGroup UFGPrivateEquityFund

50

17-Jul-08 C BukaEntertainmentCompany

TMT Internal Castren&Snellman

1CCompany Internal Internal FinamInvestmentHoldingCompany;andCapManGroup

50

07-Jul-08 C CJSCUralTelephoneCompany

TMT OAOComstarUnitedTeleSystems

31


Russia


Russian M&A quarterly mid-market trend

value volume

0

10

20

30

40

50

Q3 2008*

Q22008

Q12008

Q42007

Q32007

Q22007

Q12007

Q42006

Q32006

Q22006

Q12006

Q42005

Q32005

Q22005

Q12005

Q42004

Q32004

Q22004

Q12004

Q42003

Q32003

Q22003

Q12003

num

ber

of d

eals

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

Q3 2008*

Q22008

Q12008

Q42007

Q32007

Q22007

Q12007

Q42006

Q32006

Q22006

Q12006

Q42005

Q3 2005

Q22005

Q12005

Q42004

Q32004

Q2 004

Q12004

Q42003

Q32003

Q22003

Q12003

valu

e €m


Mid-marketdeals

Russia


YTD 31-Jul-2008

House Value (€m)

Deal count

Value:

1 Rothschild 527 5

2 Citigroup 514 3



5 IFKAlemar 243 1

6 UBS 217 1

7 Deloitte 216 2

8= Moelis&Company 212 1

8= RaymondJames&Associates 212 1

10= AlfaBank 202 1

10= MorganStanley 202 1

Volume:

1 Rothschild 527 5

2 Citigroup 514 3



5 Deloitte 216 2

6 InvestmentCompanyAquilaCapitalPartners

167 2


8 IFKAlemar 243 1

9 UBS 217 1

10= Moelis&Company 212 1

10= RaymondJames&Associates 212 1

Source:mergermarket

Thefinancialadviserleaguetablesbyvalueandvolumehavebeenrunfrom01January2008to31July2008andexcludelapsedandwithdrawndeals.Thetablescoverallsectorsandarebasedonthegeographyofeitherthetarget,bidderorsellerbeingRussia

Top 10 Mid-market financial advisers - Russia(€10mto€250m)

YTD 31-Jul-2008

House Value (€m)

Deal count

Value:


2 White&Case 692 5




6 SkaddenArpsSlateMeagher&Flom

292 2

7 NautaDutilh 282 2


9= KayeScholer 212 1

9= McDermottWill&Emery 212 1

9= Sullivan&Cromwell 212 1

Volume:


2 White&Case 692 5




6 SkaddenArpsSlateMeagher&Flom

292 2

7 NautaDutilh 282 2


9 KayeScholer 212 1

10= McDermottWill&Emery 212 1

10= Sullivan&Cromwell 212 1

Source:mergermarket

Thelegaladviserleaguetablesbyvalueandvolumehavebeenrunfrom01January2008to31July2008andincludelapsedandwithdrawndeals.Thetablescoverallsectorsandarebasedonthegeographyofeitherthetarget,bidderorsellerbeingRussia

Top 10 Mid-market legal advisers - Russia(€10mto€250m)

Mid-marketdeals

Australian M&A Forum The Establishment, Sydney, Australia................................................................................................................................................................. 21 August

Energy M&A Forum Houston, USA ...............................................................................................................................................................................................16 September

German M&A Forum Frankfurt, Germany .......................................................................................................................................................................................25 September

CEE M&A Forum Vienna, Austria ..............................................................................................................................................................................................30 September

Benelux M&A Forum Brussels, Belgium ..............................................................................................................................................................................................21 October

Japanese Pan Asian Cross-Border M&A Forum Four Seasons, Tokyo, Japan ..............................................................................................................................................................................28 October

Private Equity Forum London, UK .........................................................................................................................................................................................................November

Highlights include:

Mergermarket events08

If you would like to find out more about The Mergermarket Group’s events, talk about sponsorship, or have any other ideas you would like to discuss, please contact: Simon Anam Tel: +44 (0)20 7059 6124 Email: [email protected]

DisclaimerThis publication contains general information and is not intended to be comprehensive nor to provide financial, investment, legal, tax or other professional advice or services. This publication is not a substitute for such professional advice or services, and it should not be acted on or relied upon or used as a basis for any investment or other decision or action that may affect you or your business. Before taking any such decision you should consult a suitably qualified professional adviser. Whilst reasonable effort has been made to ensure the accuracy of the information contained in this publication, this cannot be guaranteed and neither Mergermarket nor any of its subsidiaries nor any affiliate thereof or other related entity shall have any liability to any person or entity which relies on the information contained in this publication, including incidental or consequential damages arising from errors or omissions. Any such reliance is solely at the user’s risk.

80 StrandLondon, WC2R 0RLUnited Kingdom

t: +44 (0)20 7059 6100f: +44 (0)20 7059 [email protected]

895 Broadway #4New York, NY 10003USA

t: +1 212 686-5606f: +1 212 [email protected]

Suite 2001Grand Millennium Plaza181 Queen’s Road, CentralHong Kong

t: +852 2158 9700f: +852 2158 [email protected]

www.mergermarket.comPart of The Mergermarket Group

The following notes pertain to data contained in this publication:

• Dealsareincludedwherethedealvalueisgreater than or equal to EUR5m.

• Wherenodealvaluehasbeendisclosed,dealsare included if the turnover of the target is greater than or equal to EUR10m.

• DealsareincludedinthegraphsandTopDeals in each section based on the dominant geography and dominant sector of the target company. Data underlying the League Tables are based on deals where the bidder, target or parent geography of either is that of the geography in focus.

• Q3 2008* is from 1 June 2008 to 31 July 2008 2008* is from 1 January 2008 to 31 July 2008

monthly m&a insider - mergermarket

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