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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 countrys
position in the international capital markets as it drew
overwhelming demand in stark contrast to the other
emerging market IPO that caught everyones attention in
2006, from Russias Rosneft.
of UK airport operator BAA by a consortium led by
Spains 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
As the private equity boom gathered pace, the perceived
wisdom held that buyout firms would be unable to break into
financial services. Cerberus
Capital Managements $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 Steels takeover of
ICBCs initial public
Washington Mutuals covered
Cerberus FIM Investors acquisition of
ABN Amros Surf constant proportion dynamic
Airport Development and Investment acquisition of