Initial public offering

Volume of initial public offering (IPO) in the world since January till November 2006 has made 227 billion dollars against about 167 billion dollars for all 2005. It means increase at 35 %. For the mentioned period in 2006 it has been accomplished 1 thousand 559 transactions. As well as in 2005, a major factor of growth became large transactions, thus in 2006 the most large-scale distribution took place within the limits of IPO. It is referred to listing of ICBC in China during which it was possible to involve almost 22 billion dollars. On the second and third places - IPO Bank of China Ltd. and Public limited company "Rosneft", during each of which it has been involved about 10 billion dollars. Thus, in such way a last year's record of the largest IPO bank China Construction Bank has been broken. Among the transactions heading the list of largest IPO, 4 of 10 and 6 of 20 took place on developing markets. During each of these 20 transactions have been involved more than 1.3 billion dollars.

Ernst and Young Global’s Vice-president Greg Eriksen has commented on conclusions of the company: "In 2006 globalization of the capital markets has proceeded. We observed growth of quantity of the international distributions and toughening of a competition between stock exchanges that creates unprecedented before opportunities both for investors, and for the companies, intending to enter the open market".

In opinion of the expert, developing markets will keep leadership in 2007, too. On the first place on volume of the capital involved as a result IPO all over the world was the Hong Kong stock exchange (HKSE) - has borrowed 17% from total amount of the capital. The second place occupied at the London stock exchange (LSE) - 15%. London has declared itself as about the center of the international transactions and on the basic platform, and in the market of alternative investments (AIM). On the third place was New-York stock exchange (NYSE) - 11 % from total amount of the involved capital.

The fact that two largest transactions are connected with the Chinese banks, means, that the Asian-Pacific region has taken the second place, having typed 34% of total amount of the involved capital. Europe, Near East and Africa (EMEA) - 42% and Northern America and the Central/southern America (including islands of Caribbean basin) - 20 % and 4 % from total amount of the capital accordingly.

In 2006 the maximum quantity of transactions was observed in sectors of technologies, materials, financial services, and also consumer goods and services. On volume of the involved capital among 20 leading transactions IPO were in the lead spheres of thermal power station and financial services.

Westfield Group and Queensland Investment Corp.

The Australian operator of trading areas Westfield Group has sold 50 % of British shopping center Merry Hill to financial company Queensland Investment Corp.

On terms of the deal the sum of which has made 524 million pounds (1 billion dollars), Westfield will continue to control a rent policy and development of shopping center. The proceeds obtained from sale it is planned to direct for others developer projects. Shopping center Merry Hill, which area is about 150 thousand m², is located in Birmingham suburbs. Well-known retail chains Marks and Spencer Group Plc. and J Sainsbury Plc are among tenants of the center. We shall remind that Westfield Group’s net profit for the first half-year 2006 has risen on 120% and has reached a value of 3.38 billion Australian dollars (2.58 billion dollars). Company’s cost is about 57 billion Australian dollars (43 billion dollars).

Harrah's Entertainment Inc, Apollo Management and Texas Pacific Group

Board of directors of the world's largest operator of casino Harrah's Entertainment Inc has voted for purchase of the company by investment funds Apollo Management and Texas Pacific Group (TPG) for 17.1 billion dollars. Investment funds will pay to shareholders Harras's 90 dollars for one common stock (6.4 billion dollars), and also will accept company’s liabilities for 10.7 billion dollars.

On October, 2nd Apollo Management LP and Texas Pacific Group have proposed purchase Harrah's. Funds intended to pay on 81 dollars for each Harrah's share. Thus, a total sum of the offer should was make 15 billion dollars.

On December, 18th there was an informal information that Apollo Management and Texas Pacific Group are close to the conclusion of the deal on purchase Harrah's Entertainment Inc. First supposed that investors can offer Harrah's shareholders 90 dollars for the share, which is about 16.7 billion dollars.

Expomedia Group Plc. and BBPG Conventions

British media-group Expomedia Group Plc. and Russian conference-operator BBPG Conventions have announced about the merger.

BBPG Conventions becomes a part of Expomedia according to the deal’s terms, and two businesses unite the resources in the sphere of administrative technologies, databases for development of business under the brands BBPG and Infor-media. The shareholder and manager of BBPG Conventions, Alexey Filatov enlarges the share in business and reserves a post of the managing director.

Expomedia as a result of the deal receives a controlling block of shares of the joint company. Konstantin Bridzhman becomes the head of the company.

In opinion of parties of the deal, the market of business actions and conferences in Russia is estimated in 75-100 million euros a year. As it is marked, cumulative number of participants of BBPG - Expomedia Plc. business actions has exceeded 9 thousand persons in 2006 in Russia.

As a result of merger BBPG plans to expand presence at such sectors as "the retail market", "consumer goods and services", "market HoReCE" and professional audiences. Moreover BBPG plans to enter the new markets and to develop sector of annual international conferences in Russia and Europe.

BBPG Conventions is engaged in the organization of business-forums, the summits in Russia and in territory of the former USSR in the field of retailing, FMNG, the industries of a feed, services and entertainments, telecommunications, bank and insurance activity, the industry, marketing, the corporate finance, PR and HR technologies.

Media-group Expomedia Group was found in 1999, since December 2001 shares of the company bargain in section of the alternative investment market (AIM) at the London stock exchange.

Expomedia Group controls a chain of exhibitions and conference centers EXPO XXI International Expocentres, organizes conferences through division infor-media, with the help of media-partner Mash Media Group publishes specialized magazines (Exhibition Bulletin, Exhibition News, Exhibition World, Conference News and others). In Russia the company is known as Infor-media.

Delta Air Lines Inc. and Airways Group

The American air carrier Delta Air Lines Inc. has refused the offer of competitor US Airways Group, which wished to buy it for 8.3 billion dollars. At the same time, Delta Air Lines has informed details of the project which was made to prevent company’s bankruptcy.

"We believe, that project Delta Air Lines will bring more benefits, than that has offered or can offer US Airways", - Delta Air Lines’ financial director Edward Bastian has told. Moreover Edward Bastian has told, that the five years' business-plan approved by the American bankruptcy court, means, that cost of actives of the company will be from 9.4 billion dollars up to 12 billion dollars.

The project also will provide increase in the company’s net profit up to 1.2 billion dollars in 2010. Such results will be reached by attraction of external investors which will agree to accept liabilities of Delta Air Lines, Edward Bastian has itemized.

On December, 18th American airline US Airways has announced the increase in sum for 100% of shares of the competitor - Delta Air Lines - from 8 up to 8.4 billion dollars. As a result of the deal offered by US Airways, creditors of Delta Air Lines should receive 4 billion dollars in cash and not less than 78.5 million shares of US Airways for the sum about 4 billion dollars. The suggested price is above the sum of Delta Air Lines’ liabilities for 25 %. According to US Airways, as a result of merge would be reached synergetic effect at a rate of 1.65 billion dollars a year. Delta Air Lines since September 2005 is on the verge of bankruptcy. Net losses of the company were 3.84 billion dollars in 2005.

Kinder Morgan Inc.

Shareholders of Kinder Morgan Inc., the operator of both mains gas and oil-pipe line in the USA and Canada, have approved purchase of the company by group of investors for 22 billion dollars. Security holders have agreed with the offer of group of investors led by executive director and one of the company’s founders Richard Kinderom. The deal is carried out also with the participation of financial company Goldman Sachs Capital Partners, insurance company American International Group Inc., and investment companies Carlyle Group, Riverstone Holdings LLC, AIG Financial Products, AIG Highstar Capital. These companies are ready to pay 107.5 dollars for one common stock (the total value is 15 billion dollars).

Shareholders also have considered in reaching decision, that the group of investors will accept company’s liabilities at a rate of 7 billion dollars. It is expected, that the deal will be completed in the beginning of 2007.

On August, 28th 2006 Kinder Morgan has declared signing of the agreement. It was the agreement about purchases of the company for 22 billion dollars by group of investors. The offer has been supported by board of directors which also recommended shareholders to accept this offer.

In May 2006 the group of investors in the same structure has suggested to buy the company for 13.4 billion dollars (100 dollars for the stock).

The company Kinder Morgan has been created in July 1999. R.Kinder, former employee of Enron Corp., with partners purchased pipeline operator KN Energy, and later - actives of Enron on manufacture liquetied natural gas. Kinder Morgan owns pipeline system, the length of which is nearby 70 thousand km.

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