51-70_Data.qxd 1/12/09 3:02 PM Page 70Deal FailuresMajor Deal Failures of 2008PriceBidder Target ($bil) Reason for FailureMicrosoft Corp. Yahoo! 41.9 Withdrew bidNRG Energy Calpine Corp. 16.5 Withdrew bidInves<strong>to</strong>r Group Pennsylvania Turnpike 12.8 Withdrew bidEDF Constellation Energy Group 10.6 Withdrew bidHexion Specialty Chemicals Huntsman Corp. 10.1 Withdrew bidMidAmerican Energy Holdings Constellation Energy Group 9.7 Withdrew bidPetrochemical Industries Co KSC Dow Chemical - Petrochemicals unit 9.5 Withdrew bidCleveland-Cliffs Alpha Natural Resources 9.2 Withdrew bidWaste Management Republic Services 8.6 Withdrew bidInves<strong>to</strong>r Group TransAlta Corp. 7.8 Withdrew bidSamsung Electronics Co. SanDisk Corp. 5.8 Withdrew bidBunge Corn Products International 4.7 Withdrew bidBris<strong>to</strong>l-Myers Squibb Co. ImCl<strong>one</strong> Systems 4.3 Withdrew hostile bidNovolipetsk Steel OJSC John Maneely Co. 3.5 Withdrew definitive agreementInves<strong>to</strong>r Group Post Properties 3.2 Withdrew offerWalgreen Co Longs Drug S<strong>to</strong>res Corp. 3.0 Withdrew offerUnited Technologies Corp. Diebold 3.0 Withdrew offerCitigroup Wachovia Corp. 2.2 Withdrew bidGrey Wolf Basic Energy Services 2.1 Withdrew definitive agreementElectronic Arts Take-Two Interactive Software 1.9 Withdrew hostile tender offerFirst Data Corp InComm 1.9 Withdrew bidMicrochip Technology Atmel Corp. 1.8 Withdrew offerInves<strong>to</strong>r Group PHH Corp. 1.7 Withdrew bidEur<strong>one</strong>t Worldwide M<strong>one</strong>yGram International 1.7 Withdrew bidVishay Intertechnology International Rectifier Corp. 1.3 Terminated hostile tender offer70 MERGERS & ACQUISITIONS February 2009
84-88_ChangingScenes.qxd 4/6/09 5:52 PM Page 72The Changing SceneCorporates Build Out M&A CapabilitiesAlbemarle, BAE Systems and MTV were just a few of the corporates adding M&Acapabilities, plus other personnel news in the deal marketIf hiring trends reflect possible deal activity, strategic buyerscould be gearing up <strong>to</strong> take advantage of the low valuationsin the market, as a number of corporates filled M&A roles.Chemicals producer Albermarle Corp. tapped Milan Shah,a former Deutsche Bank direc<strong>to</strong>r, <strong>to</strong> head its business developmentactivities, while BAE Systems promoted DougBelair <strong>to</strong> serve as senior VP for defense and planning, a rolethat oversees the unit’s strategic planning efforts. Viacom’sMTV also made a move along these lines, naming RichardGay as executive vice president of strategy and operations,a role that will have him pursuing external partnerships andacquisitions.Meanwhile, restructuring stayed in focus for the investmentbanks as Piper Jaffray brought in former Morgan Joseph& Co. veteran Vic<strong>to</strong>r Caruso, while Lazard poached SkaddenArps at<strong>to</strong>rney Timothy Pohl <strong>to</strong> serve as a managing direc<strong>to</strong>rin its restructuring group. MorrisAnderson also promotedDavid Bagley <strong>to</strong> managing direc<strong>to</strong>r. At the firm,Bagley focuses on financially distressed and under-performingcompanies.Albemarle Corporation — The chemicalscompany has named a Deutsche Bank investmentbanker <strong>to</strong> lead its business developmentactivities; it brought on Milan R. Shahas vice president of the company.While at Deutsche Bank, Shah was direc<strong>to</strong>rof global chemicals. In his new position,he will lead the company’s strategic initiatives,partnerships, and joint ventures. Shahwill report <strong>to</strong> Richard J. Diemer, chief financialofficer and senior vice president. He willbe based in the company’s Ba<strong>to</strong>n Rouge,Louisiana headquarters.Shah’s hire is part of a string of personnelchanges that Albemarle has initiated. It alsobrought on board Jim W. Nokes, a former executiveof Hous<strong>to</strong>n-based energy company ConocoPhillips,<strong>to</strong> the board of direc<strong>to</strong>rs and namedDarian K.Rich vice president of human resources.BAE Systems — The aerospace and defensecompany appointed Doug Belair <strong>to</strong> itssenior vice president role for defense andplanning; he is presently president of the defenseand aerospace company’s technologysolutions and services business.Belair joined the company in 2002, andbecame vice president of the Undersea WarfareSystems Integration Division in February2003. In his new position, Belair will lead theunit’s business development initiatives andwill lead the strategic planning efforts. Hereplaces Ralph Meoni, who served in the positionfor less than a year. Meoni will becomeexecutive vice president of the electronics, intelligenceand support group.Bank of America — The investment banknamed Brian Moynihan as general counsel.He previously served as the bank’s presiden<strong>to</strong>f global corporate and investment banking.Moynihan’s appointment as general counselwas effective Dec. 10 and his previousresponsibilities will be assumed by other executives.He will continue <strong>to</strong> serve as chiefexecutive of the company’s Banc of AmericaSecurities arm throughout the transition periodfollowing the Merrill Lynch acquisition.As general counsel, Moynihan will continue<strong>to</strong> report <strong>to</strong> Ken Lewis, BofA chairmanand CEO. Moynihan replaces Timothy Mayopoulos,who is leaving the firm.Moynihan joined BofA in 2004 as presiden<strong>to</strong>f global wealth and investment managementvia the firm’s acquisition of Fleet-Bos<strong>to</strong>n Financial. He started at FleetFinancialas deputy general counsel in April 1993.The Blackst<strong>one</strong> Group — The private equitygiant is planning <strong>to</strong> lay off roughly 70staffers amidst the credit crunch, a source<strong>to</strong>ld sister publication IDD.The New York private equity firm employed93 senior managing direc<strong>to</strong>rs and more than780 additional investment and advisory professionalsthrough September.The layoffs, initially reported by Bloomberg,come on the heels of disappointing resultsfor the firm’s various business segments in thethird quarter. It reported negative revenuesfor its private equity business of $68.3 million,negative $273.7 million of revenues forits real estate business, and negative revenuesof $48 million for its alternative assetmanagement business.Officials from Blackst<strong>one</strong> declined <strong>to</strong> commen<strong>to</strong>n the matter.Blue Wolf Capital Management LLC —The New York-based private equity firmmade a pair of appointments; <strong>Michael</strong> Ransonbecame a partner and Haran Narulla,asenior associate at the firm, was promoted<strong>to</strong> vice president.72 MERGERS & ACQUISITIONS February 2009
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