Deals That Didn’t Make It

An area that does not get reviewed frequently is deals that never reach completion, for whatever reason. It may not be something that those involved wish to dwell on but a closer look at the figures since 2000 reveals that 1,152 offers for European targets have been withdrawn in that time, valued at Euro865.12bn (US$1.2tr).

In terms of the total value and number of deals, 2001 saw the highest number of failed European offers. A total of 243 offers were abandoned in that year with a value of Euro121.87bn (US$168.3bn).

On the value scale, 2007 has already topped the annual total for withdrawn offers over the last seven years, but with EON and Gas Natural's failed attempts to take over Spanish utility Endesa, it may not be surprising that so far this year the 74 withdrawn deals amount to Euro218.8bn (US$302.4bn) and this figure is set to grow massively when the current race for ABN Amro reaches a final conclusion.

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Top 5 Withdrawn Deals for European Targets since 2000
Date Withdrawn Target Name Acquiror Name Value (EURmil)
02/04/2007 Endesa SA E ON AG 61,539.09
01/02/2007 Endesa SA Gas Natural SDG SA 38,759.12
23/02/2001 Abbey National PLC Lloyds TSB Group PLC 31,255.25
05/04/2000 Dresdner Bank AG Deutsche Bank AG 27,967.67
05/05/2003 Iberdrola SA Gas Natural SDG SA 25,937.94
Source: Thomson Financial
Offers by German utility E.ON and Spanish pipeline group Gas Natural for Spanish utility Endesa account currently, for the two largest failed deals since 2000. E.ON and Gas Natural's Euro61.5bn (US$85.0bn) and