Private Equity Set to Sweep Up £18 Billion in 2007

Strategic Insights -

The UK market is on track for a substantial increase in leveraged buyouts, with private equity players expected to spend at least an additional £18 billion in 2007, according to Goldman Sachs. Several major companies have been identified as potential takeover targets, including British Airways, GKN, and Inter-Continental Hotels. The increased activity in the market has been driven by a combination of factors, including a flood of private equity money and a perceived undervaluation of certain stocks.

Key Takeaways:

  • Private equity players are expected to spend at least £18 billion in 2007, a significant increase from previous years.
  • Several major UK companies have been identified as potential takeover targets, including British Airways, GKN, and Inter-Continental Hotels.
  • The increased activity in the market has been driven by a combination of factors, including a flood of private equity money and a perceived undervaluation of certain stocks.
  • Goldman Sachs has identified several companies, including Carphone Warehouse, Persimmon, and Vanco, as potential targets for private equity money.
  • The FTSE 100 index rose 5.6 points to 6250.8, driven by record-breaking performances in other markets.
  • ICI, the paint maker, has been identified as a potential takeover target following the sale of its Quest subsidiary for £1.2 billion.

Statistics:

  • £18 billion: minimum expected spend by private equity players in 2007.
  • 41/4p: rise in British Airways' share price.
  • £5 billion: estimated value of Inter-Continental Hotels if Permira and a Dubai consortium make a bid.
  • 10%: increase in Inter-Continental Hotels' share price over the past week.
  • £1.8 billion: writeoffs on Royal Dutch Shell's Sakhalin-2 project.
  • 45.6 million: number of shares placed by Cosmedia in its AIM listing.
  • $130.2 million: value of Cosmedia following its AIM listing.
  • 102.94: rise in the Dow Jones Industrial Average.
  • 20,000: level breached by the Hang Seng index in Hong Kong.

Sources:

  • Goldman Sachs (no date mentioned)
  • BBC News (no date mentioned)
  • Citywire (no date mentioned)
  • The Share Centre Limited (www.thisismoney.co.uk)
  • City Wire (www.citywire.co.uk)