No it’s an art form! Like Ravi’s performance at Hong Leong Green last Sunday. Err I think. I’d better explain.
Reuters, citing unidentified people with knowledge of the matter, reports: “Japan’s Kirin Holdings Ltd has hired Deutsche Bank to examine all options as it prepares to defend its interest in Singapore conglomerate Fraser and Neave.” Kirin has 15% of F&N, the second largest shareholder. (The largest shareholder was OCBC Bank who agreed to sell to cos connected to ThaiBev.)
And with Goldman Sachs being appointed to advise F&N, it’s feeding time for investment banks.
One of the skills they are supposed to bring to the table is how to value a deal. So this is funny: Citi and Morgan Stanley are in negotiations for Morgan Stanley to boost its controlling stake in their wealth management joint venture by 14% to 65%. But their valuations for the business are US$13.5 billion apart.
Sounds irrational, but there are gd sound technical reasons. I kid you not.