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Deals of the year 2006: Six deals that changed the market
by Alex Chambers, Chris Leahy, Peter Lee, Louise Bowman
Which are the financings that defined the capital markets in 2006? This year, Euromoney recognizes half a dozen deals that will for ever be associated with the previous 12 months.
These may not have been the most successful deals
launched last year. But they all share a common characteristic
– they stretched and redrew the boundaries of what is
possible in the capital market.
Washington Mutual went out on a limb and broke the
mould to become the first US-based issuer of covered bonds.
ABN Amro structured the first constant proportion dynamic
obligation (CPDO), creating a wave of copycat
transactions and arguably the most important innovation in
credit markets since the single-tranche CDO.
ICBC showed how an IPO can cement a
country’s position in the international capital
markets as it drew overwhelming demand – in stark
contrast to the other emerging market IPO that caught
everyone’s attention in 2006, from
of UK airport operator BAA by a consortium led by
Spain’s Ferrovial showed not only the growing
investor appetite for infrastructure assets, but also how
advisers are coming up with ever more complex deal structures
for M&A activity.
As the private equity boom gathered pace, the perceived
wisdom held that buyout firms would be unable to break into
financial services. Cerberus
Capital Management’s $7 billion acquisition of
GMAC blew such preconceptions out of the water.
But no deal demonstrated the new world order of finance
– and that, in 2006 at least, anything was possible
– better than the hostile acquisition
of Arcelor by Mittal Steel. The deal had everything
– intrigue, an industry-reshaping rationale, the wall
of national interest, clashes of corporate governance cultures
and the clearest sign yet that companies originating from the
developing markets are now predators as much as prey.
Mittal Steel’s takeover of
ICBC’s initial public
Washington Mutual’s covered
Cerberus FIM Investors’ acquisition of
ABN Amro’s Surf constant proportion dynamic
Airport Development and Investment acquisition of