James Halliday has never been busier, though he admits his commitments have made him a bit grumpy.
Every year, the former lawyer and winemaker churns out 'Australian Wine Companion,' his ever-expanding guide to wines in the region. The 2012 edition is his biggest yet: At 776 pages, it contains tasting notes for more than 6,000 wines and profiles of more than 1,000 wineries. A favorite among oenophiles, the book is the best-selling wine guide in Australia.
This year, in what he calls 'a moment of madness,' he agreed to write a second guide called '1001 Wines Under $20.' The book is slated to come out in November.
'I thought, 'Well, it's only 1,000 wines, I'll do that very quickly,' he says. 'It turns out it was murder.'
Mr. Halliday spoke with the Journal's Jason Chow about his new 2012 guide, the state of the Australian wine market, and how Australia can capitalize on the growing Chinese audience. The following interview has been edited.
The Wall Street Journal: What's your process for updating the guide?
James Halliday: I start my tastings in early June, but my peak tasting period is in early September. For 12 to 14 days, I'll be tasting every day from 7 a.m. to 7 p.m., two breaks during the day, for an annual Top 100 wines that I write for the Weekend Australian newspaper. I'll have tasted 1,200 to 1,400 wines for that. I taste 120 wines a day for 14 days. All wineries in Australia are invited to submit. The bulk of the wine notes comes from this.
My other source of tasting notes is from wine judging, mostly at regional wine shows. I deliberately judge smaller regional shows, because I pick up on small wineries that won't surface at capital-city wine shows.
The real ugly time for us is from January to late March, where we send emails to every winery in Australia to update their information. Winemakers come and go, and we have to update our database.
WSJ: What has changed the most about Australia's wine scene over the years?
Mr. Halliday: Back in our 2000 guide, there were only 1,000 wineries. Today, there's 2,400 active wineries. The industry has grown almost 1.5 times in the past 11 years. Even in this edition, we've added 105 new wineries.
WSJ: In Australia, there's still a massive wine glut and yet more wineries are still popping up. Tell us your take on the local industry today.
Mr. Halliday: It's paradoxical, isn't it? But the wine lake [the excess wine produced] is a byproduct of the dramatic increase of the wine industry, due to exporters, not those who were producing for domestic consumption.
Back in 1995, I was on a thinktank panel that did a 30-year vision for the wine industry, and we predicted that in 2025, we'd see the industry become a 4.5 billion Australian dollar (US$4.5 billion) industry with A$2.5 billion in exports and A$2 billion in domestic sales. But in fact, we hit those numbers in 2002. What we projected to happen in 30 years actually occurred in seven years.
Then in 2004, 2005 and 2006, we had three vintages that were all very good vintages ─ very good weather conditions ─ and three very huge vintages. They created this excess of wine. And the industry since then hasn't taken enough steps to remove vines and rationalize itself since.
The contrary argument is this: If we held market share of the world as we had in 2002, we wouldn't have a wine lake. It's not simple matter of overproduction, but it's also falling export demand. The reason for the falling demand is a number of things. The strong Australian dollar plays a big factor.
And the competition is harder too. There was a diaspora [of Australian winemakers] that went across Europe, mainly Southern France. Australian winemakers went there and started making better-quality wine, and showed them how. In the 1980s and 1990s, we were producing wine in Australia that was clearly better that any comparable wine out of Europe in terms of price. We were killing France. France was the top exporter to the U.K., and we pushed them down the list. But now, the Europeans have come up in quality.
WSJ: How does Australia break into the Chinese market?
Mr. Halliday: By persistence. It will require us taking a Chinese view of things and plan for the long-term.
Australia already has 20% market share of the Chinese imported wine market, only trailing France at 40%. And China is Australia's largest market for wines that are sold at more than US$10. And by volume, China is the fourth-largest market, after the U.K., U.S. and Canada.
History tells you that whenever you have a strong trading relationship between two countries ─ and here it's about coal and iron ore ─ other things will get sucked into the proposition. Australia could do nothing and sit on its hands, and wine exports would still increase. But of course, we're not just going to sit on our hands.
Tuesday, October 18, 2011
Monday, July 4, 2011
"Little Prince" classic warmth Quotations
You know — one loves the sunset, when one is so sad…
If someone loves a flower, of which just one single blossom grows in all the millions and millions of stars, it is enough to make him happy just to look at the stars. He can say to himself, "Somewhere, my flower is there…" But if the sheep eats the flower, in one moment all his stars will be darkened… And you think that is not important!
Flowers are so inconsistent! But I was too young to know how to love her…
For she did not want him to see her crying. She was such a proud flower…
My flower is ephemeral, and she has only four thorns to defend herself against the world. And I have left on my planet, all alone!
His flower had told him that she was only one of her kind in all universe. And here were five thousand of them, all alike, in one single garden!
I thought that I was rich, with a flower that was unique in all the world; and all I had was a common rose. A common rose…
To me, you are still nothing more than a little boy who is just like a hundred thousand other little boys. And I have no need of you. And you, on your part, have no need of me. To you, I am nothing more than a fox like a hundred thousand other foxes. But if you tame me, then we shall need each other. To me, you will be unique in all the world. To you, I shall be unique in all the world.
The wheat fields have nothing to say to me. And that is sad. But you have hair that is the color of gold. Think how wonderful that will be when you have tamed me! The grain, which is also golden, will bring me back the thought of you. And I shall love to listen to the wind in the wheat.
It is your own fault, I never wished you any sort of harm; but you wanted me to tame you... but now you are going to cry! Then it has done you no good at all!
It has done me good, because of the color of the wheat fields. Go and look again at the roses. You will understand now that yours is unique in all the world.
And now here is my secret, a very simple secret. It is only with the heart that one can see rightly; what is essential is invisible to the eyes.
It is the time you have wasted for your rose that makes your rose so important.
Men have forgotten this truth. But you must not forget it. You become responsible, forever, for what you have tamed. You are responsible for your rose…
Only the children know what they are looking for. They waste their time over a rag doll and it becomes very important to them; and if anybody takes it away from them, they cry…
If someone loves a flower, of which just one single blossom grows in all the millions and millions of stars, it is enough to make him happy just to look at the stars. He can say to himself, "Somewhere, my flower is there…" But if the sheep eats the flower, in one moment all his stars will be darkened… And you think that is not important!
Flowers are so inconsistent! But I was too young to know how to love her…
For she did not want him to see her crying. She was such a proud flower…
My flower is ephemeral, and she has only four thorns to defend herself against the world. And I have left on my planet, all alone!
His flower had told him that she was only one of her kind in all universe. And here were five thousand of them, all alike, in one single garden!
I thought that I was rich, with a flower that was unique in all the world; and all I had was a common rose. A common rose…
To me, you are still nothing more than a little boy who is just like a hundred thousand other little boys. And I have no need of you. And you, on your part, have no need of me. To you, I am nothing more than a fox like a hundred thousand other foxes. But if you tame me, then we shall need each other. To me, you will be unique in all the world. To you, I shall be unique in all the world.
The wheat fields have nothing to say to me. And that is sad. But you have hair that is the color of gold. Think how wonderful that will be when you have tamed me! The grain, which is also golden, will bring me back the thought of you. And I shall love to listen to the wind in the wheat.
It is your own fault, I never wished you any sort of harm; but you wanted me to tame you... but now you are going to cry! Then it has done you no good at all!
It has done me good, because of the color of the wheat fields. Go and look again at the roses. You will understand now that yours is unique in all the world.
And now here is my secret, a very simple secret. It is only with the heart that one can see rightly; what is essential is invisible to the eyes.
It is the time you have wasted for your rose that makes your rose so important.
Men have forgotten this truth. But you must not forget it. You become responsible, forever, for what you have tamed. You are responsible for your rose…
Only the children know what they are looking for. They waste their time over a rag doll and it becomes very important to them; and if anybody takes it away from them, they cry…
Thursday, May 26, 2011
China Pushes Hon Hai, Peers to Improve Safety
China's government said Hon Hai Precision Industry Co. and other Taiwan companies operating on the mainland should strengthen safety measures after a deadly explosion at one of the electronics manufacturer's plants, a facility where labor activists have criticized working conditions.
In a news briefing in Beijing on Wednesday, Fan Liqing, spokeswoman for the State Council's Taiwan Affairs Office, said the explosion at a workshop in one of Hon Hai's Chengdu factories, which killed three and injured 15, has been recognized as a 'product-safety accident.' She said Beijing hopes Hon Hai and other Taiwan-funded companies 'draw lessons from the accident,' strengthen internal monitoring and take precautions to ensure safe production.
The official's comments weren't so harsh as to suggest additional trouble for Hon Hai, which makes iPads and iPhones for Apple Inc. as well as devices for Sony Corp., Hewlett-Packard Co. and others. Hon Hai, which uses the trade name Foxconn, has suspended production at polishing workshops like the one where the accident occurred. Officials at that plant said they are cooperating fully with a government probe of the blast.
Still, Ms. Fan's comments marked a rare public chiding by the government for a company that is one of China's biggest employers, with about a million workers at sites across the country.
In a written statement, Hon Hai said, 'We have a shared commitment with the government to doing everything possible to ensure the health and safety of all Foxconn workers.'
Ms. Fan's remarks follow allegations from a Hong Kong-based labor-rights group that the explosion, which Hon Hai says was likely caused by combustible dust, could have been prevented if Hon Hai had better ventilation systems within its polishing workshops. The group, Students & Scholars Against Corporate Misbehavior, or Sacom, said it warned Hon Hai before the explosion to take measures to protect workers from inhaling dust in its polishing workshops.
Sacom on Tuesday released a video made before the accident showing men covered in silver-colored dust. The group said the men worked at another of Hon Hai's Chengdu facilities.
Hon Hai has rejected Sacom's criticism, saying in response to the video and allegations that it is 'addressing this challenge through improvements in workshop ventilation and the air-conditioning system,' among other changes to its policies and practices. The company added that the cause of the explosion is still under investigation, and that it would 'not hesitate to immediately implement' any specific measures where enhancements can be made to its facilities.
The explosion isn't expected to have a significant impact on Hon Hai's output unless the investigation of its facilities leads to a prolonged suspension. Hon Hai said this week that tests of the affected workshops could be finished in a matter of days, and Sony said the incident 'will have no impact' on its PlayStation and television businesses, for which it uses Hon Hai as a contract manufacturer.
Hon Hai is the world's largest contract manufacturer, with more than $80 billion in revenue last year.
Experts say industrial combustible dust is a common problem in China. Five accidental polishing-related explosions occurred in the country last year, resulting in several deaths, according to Zhong Shengjun, associate professor at the Industrial Explosion Protection Institute of Northeastern University in Shenyang. The U.S. has also had a number of combustible-dust accidents, with the U.S. Occupational Safety and Health Administration listing at least 10 deaths from more than 100 accidents since 2002.
China's State Administration of Work Safety publishes warnings on its website about combustible dust, including one as recently as this month, but Mr. Zhong said national fire-protection standards are inadequate for preventing such accidents. 'Many corporate leaders and operations staff do not have any knowledge of dust explosions,' he said.
In a news briefing in Beijing on Wednesday, Fan Liqing, spokeswoman for the State Council's Taiwan Affairs Office, said the explosion at a workshop in one of Hon Hai's Chengdu factories, which killed three and injured 15, has been recognized as a 'product-safety accident.' She said Beijing hopes Hon Hai and other Taiwan-funded companies 'draw lessons from the accident,' strengthen internal monitoring and take precautions to ensure safe production.
The official's comments weren't so harsh as to suggest additional trouble for Hon Hai, which makes iPads and iPhones for Apple Inc. as well as devices for Sony Corp., Hewlett-Packard Co. and others. Hon Hai, which uses the trade name Foxconn, has suspended production at polishing workshops like the one where the accident occurred. Officials at that plant said they are cooperating fully with a government probe of the blast.
Still, Ms. Fan's comments marked a rare public chiding by the government for a company that is one of China's biggest employers, with about a million workers at sites across the country.
In a written statement, Hon Hai said, 'We have a shared commitment with the government to doing everything possible to ensure the health and safety of all Foxconn workers.'
Ms. Fan's remarks follow allegations from a Hong Kong-based labor-rights group that the explosion, which Hon Hai says was likely caused by combustible dust, could have been prevented if Hon Hai had better ventilation systems within its polishing workshops. The group, Students & Scholars Against Corporate Misbehavior, or Sacom, said it warned Hon Hai before the explosion to take measures to protect workers from inhaling dust in its polishing workshops.
Sacom on Tuesday released a video made before the accident showing men covered in silver-colored dust. The group said the men worked at another of Hon Hai's Chengdu facilities.
Hon Hai has rejected Sacom's criticism, saying in response to the video and allegations that it is 'addressing this challenge through improvements in workshop ventilation and the air-conditioning system,' among other changes to its policies and practices. The company added that the cause of the explosion is still under investigation, and that it would 'not hesitate to immediately implement' any specific measures where enhancements can be made to its facilities.
The explosion isn't expected to have a significant impact on Hon Hai's output unless the investigation of its facilities leads to a prolonged suspension. Hon Hai said this week that tests of the affected workshops could be finished in a matter of days, and Sony said the incident 'will have no impact' on its PlayStation and television businesses, for which it uses Hon Hai as a contract manufacturer.
Hon Hai is the world's largest contract manufacturer, with more than $80 billion in revenue last year.
Experts say industrial combustible dust is a common problem in China. Five accidental polishing-related explosions occurred in the country last year, resulting in several deaths, according to Zhong Shengjun, associate professor at the Industrial Explosion Protection Institute of Northeastern University in Shenyang. The U.S. has also had a number of combustible-dust accidents, with the U.S. Occupational Safety and Health Administration listing at least 10 deaths from more than 100 accidents since 2002.
China's State Administration of Work Safety publishes warnings on its website about combustible dust, including one as recently as this month, but Mr. Zhong said national fire-protection standards are inadequate for preventing such accidents. 'Many corporate leaders and operations staff do not have any knowledge of dust explosions,' he said.
Monday, May 9, 2011
'Thor' Wins At US Box Office
'Thor,' the newest comic-book adaptation from Marvel Studios, powered its way to the top of the box office with a $66 million opening weekend in North America, according to early studio estimates. Internationally, the film grossed $46 million in 60 markets, bringing its worldwide cumulative gross to $242 million after 11 days of release.
Starring relative newcomer Chris Hemsworth as the titular Norse god of thunder, the $150 million film was distributed by Viacom Inc.'s (VIA, VIAB) Paramount Pictures and represents the third-highest start for a Marvel character launch. The debut trails the respective $114.8 million and $98.6 million openings for the higher-profile 'Spider-Man' and 'Iron Man' films, but it is ahead of the openings for the first 'X-Men' film and the Incredible Hulk films.
Paramount will also distribute 'Captain America,' another Marvel comic-book adaptation, this July. Walt Disney Co. (DIS), which bought Marvel for $4.3 billion in 2009, will begin distributing Marvel films starting with the superhero film 'The Avengers' in 2012.
The first major event film of the summer movie season, with 2,737 of its 3,955 locations screening in 3-D, saw 60% of its gross come from the premium-priced option. The film also played to its base, with males accounting for 63% of the audience.
'Thor' has kicked off the summer season in a big way,' Paramount Pictures Vice Chairman Rob Moore said in an interview Sunday. 'Both culturally and for the movie industry, the first week of May is when you can start to feel summer, and it's when schools start to let out and you can play into that window.'
Given its solid but not stellar opening, 'Thor' will depend for its long-term success on its box-office momentum in coming weeks, as the further installments in popular film franchises such as 'Pirates of the Caribbean' and 'Harry Potter' are also released in live-action 3-D.
'Fast Five,' last weekend's top-grossing film from Comcast Corp.'s (CMCSA, CMCSK) Universal Pictures, dropped to second place with $32.5 million. The action film's domestic cumulative gross is now $139.9 million. Internationally, the film continued to louis vuitton diaper bag, grossing $86.6 million and bringing its world-wide total to $324.7 million.
Appealing to the non-comic-fan demographic, the new romantic comedies 'Jumping the Broom' and 'Something Borrowed' from Sony Corp.'s (SNE, 6758.TO) TriStar Pictures and Time Warner Inc.'s (TWX) Warner Bros., grossed $13.7 million and $13.2 million, respectively.
Starring relative newcomer Chris Hemsworth as the titular Norse god of thunder, the $150 million film was distributed by Viacom Inc.'s (VIA, VIAB) Paramount Pictures and represents the third-highest start for a Marvel character launch. The debut trails the respective $114.8 million and $98.6 million openings for the higher-profile 'Spider-Man' and 'Iron Man' films, but it is ahead of the openings for the first 'X-Men' film and the Incredible Hulk films.
Paramount will also distribute 'Captain America,' another Marvel comic-book adaptation, this July. Walt Disney Co. (DIS), which bought Marvel for $4.3 billion in 2009, will begin distributing Marvel films starting with the superhero film 'The Avengers' in 2012.
The first major event film of the summer movie season, with 2,737 of its 3,955 locations screening in 3-D, saw 60% of its gross come from the premium-priced option. The film also played to its base, with males accounting for 63% of the audience.
'Thor' has kicked off the summer season in a big way,' Paramount Pictures Vice Chairman Rob Moore said in an interview Sunday. 'Both culturally and for the movie industry, the first week of May is when you can start to feel summer, and it's when schools start to let out and you can play into that window.'
Given its solid but not stellar opening, 'Thor' will depend for its long-term success on its box-office momentum in coming weeks, as the further installments in popular film franchises such as 'Pirates of the Caribbean' and 'Harry Potter' are also released in live-action 3-D.
'Fast Five,' last weekend's top-grossing film from Comcast Corp.'s (CMCSA, CMCSK) Universal Pictures, dropped to second place with $32.5 million. The action film's domestic cumulative gross is now $139.9 million. Internationally, the film continued to louis vuitton diaper bag, grossing $86.6 million and bringing its world-wide total to $324.7 million.
Appealing to the non-comic-fan demographic, the new romantic comedies 'Jumping the Broom' and 'Something Borrowed' from Sony Corp.'s (SNE, 6758.TO) TriStar Pictures and Time Warner Inc.'s (TWX) Warner Bros., grossed $13.7 million and $13.2 million, respectively.
Sunday, April 10, 2011
How to Deal With a Bad Performance Review
Are you ready for a verdict on your performance?
For many employees in corporate India, late March, which coincides with end of the financial year, is when they find out if they'll get the raise or promotion they have been hoping for.
But what if your performance review fails to meet your expectations? It may upset you - and may even make you want to quit - but that could do more harm than good.
Instead, it's best to keep your cool and consider the following steps when dealing with a poor review:
Prepare, Prepare, Prepare: In advance of the annual appraisal meeting, it's a good idea to maintain a log of your achievements and failures throughout the year. This can save you from becoming a victim of critical appraisal just because you didn't perform well in a recent project.
If needed, bring a list -- along with any documentary evidence -- to support your accomplishments to the meeting. The appraisal meeting 'is a time for you to highlight (your) successes,' says Debbie Meech, people director at information and technology services firm Cable&Wireless Worldwide Plc.
As much as possible, you should 'highlight the achievements that have had the maximum impact on the company,' says Veena Padmanabhan, general manager at Wipro Technologies Ltd., an information technology firm.
Analyze: In case your company provides you a written review in advance of the meeting, read it thoroughly and calmly. If it includes some criticism of your work which you don't agree with, first try to understand why the reviewer has made that criticism.
Although we may think we are doing a great job, it's important to be critical of our own performance and aware of our shortcomings. 'Try to be more objective,' says Ms. Padmanabhan.
Have a clear idea of what your performance has been like, before trying to convince your bosses.
At the meeting: On the day of the appraisal meeting it's essential that you come prepared and bring a calm, receptive mind. Be sure to hear out your manager fully, before saying anything.
If you realize that you've made a mistake or could improve your performance, own up to that. But if you feel you are being wrongly criticized, than you should stand up for yourself.
Some companies have two appraisal meetings. This allows you some time to prepare your case. But if your company has only one meeting, you'll have to think of your defense pretty quickly.
It's best to stick to facts when arguing you deserve a better review. 'Do not be defensive, as that can be detrimental,' saysNirmal Rana, head of human resources at Ozone Group, a firm providing healthcare products.
Whatever you do, don't lose your cool and don't react with 'hostility or anger, as that will not go down well with the management,' says Bhasker Bhandary, director human resources at Acer India Pvt., a firm providing information technology services.
If you feel like you didn't make a good case for yourself, you could try going back to your manager within the next day or two.
What's next? You've made your case, but your performance review stands. What should you do next - live with it, or hand in your resignation?
Don't make this decision immediately after the appraisal meeting. A critical review might leave you upset and emotionally charged, which is not the best state of mind in which to take decisions on your future.
Remember that quitting is not always the ideal answer, because there's no guarantee you'll get better recognition at your next job. 'Moving from one place to another reflects (poorly) on the career of the person,' says Mr. Rana of Ozone. 'So, you should try and work it out first.'
Give yourself time to absorb the feedback. 'Step back and let yourself ponder over it for a week or ten days,' says Ms. Padmanabhan. 'Time mellows down reactions'
New targets: If you have decided to stay at your company, make the best of the feedback you received from your bosses.
Talk with your manager about a list of targets you need to achieve in the coming year, and how to go about achieving them. Maybe you need to upgrade your skills. It's important to keep building your soft skills and your relationship with your manager.
'Communicate often to get a clear idea of what the manager expects,' says Mr. Rana. Developing this regular feedback system can not only help you achieve your goals but also help you get a better performance review next time around.
For many employees in corporate India, late March, which coincides with end of the financial year, is when they find out if they'll get the raise or promotion they have been hoping for.
But what if your performance review fails to meet your expectations? It may upset you - and may even make you want to quit - but that could do more harm than good.
Instead, it's best to keep your cool and consider the following steps when dealing with a poor review:
Prepare, Prepare, Prepare: In advance of the annual appraisal meeting, it's a good idea to maintain a log of your achievements and failures throughout the year. This can save you from becoming a victim of critical appraisal just because you didn't perform well in a recent project.
If needed, bring a list -- along with any documentary evidence -- to support your accomplishments to the meeting. The appraisal meeting 'is a time for you to highlight (your) successes,' says Debbie Meech, people director at information and technology services firm Cable&Wireless Worldwide Plc.
As much as possible, you should 'highlight the achievements that have had the maximum impact on the company,' says Veena Padmanabhan, general manager at Wipro Technologies Ltd., an information technology firm.
Analyze: In case your company provides you a written review in advance of the meeting, read it thoroughly and calmly. If it includes some criticism of your work which you don't agree with, first try to understand why the reviewer has made that criticism.
Although we may think we are doing a great job, it's important to be critical of our own performance and aware of our shortcomings. 'Try to be more objective,' says Ms. Padmanabhan.
Have a clear idea of what your performance has been like, before trying to convince your bosses.
At the meeting: On the day of the appraisal meeting it's essential that you come prepared and bring a calm, receptive mind. Be sure to hear out your manager fully, before saying anything.
If you realize that you've made a mistake or could improve your performance, own up to that. But if you feel you are being wrongly criticized, than you should stand up for yourself.
Some companies have two appraisal meetings. This allows you some time to prepare your case. But if your company has only one meeting, you'll have to think of your defense pretty quickly.
It's best to stick to facts when arguing you deserve a better review. 'Do not be defensive, as that can be detrimental,' saysNirmal Rana, head of human resources at Ozone Group, a firm providing healthcare products.
Whatever you do, don't lose your cool and don't react with 'hostility or anger, as that will not go down well with the management,' says Bhasker Bhandary, director human resources at Acer India Pvt., a firm providing information technology services.
If you feel like you didn't make a good case for yourself, you could try going back to your manager within the next day or two.
What's next? You've made your case, but your performance review stands. What should you do next - live with it, or hand in your resignation?
Don't make this decision immediately after the appraisal meeting. A critical review might leave you upset and emotionally charged, which is not the best state of mind in which to take decisions on your future.
Remember that quitting is not always the ideal answer, because there's no guarantee you'll get better recognition at your next job. 'Moving from one place to another reflects (poorly) on the career of the person,' says Mr. Rana of Ozone. 'So, you should try and work it out first.'
Give yourself time to absorb the feedback. 'Step back and let yourself ponder over it for a week or ten days,' says Ms. Padmanabhan. 'Time mellows down reactions'
New targets: If you have decided to stay at your company, make the best of the feedback you received from your bosses.
Talk with your manager about a list of targets you need to achieve in the coming year, and how to go about achieving them. Maybe you need to upgrade your skills. It's important to keep building your soft skills and your relationship with your manager.
'Communicate often to get a clear idea of what the manager expects,' says Mr. Rana. Developing this regular feedback system can not only help you achieve your goals but also help you get a better performance review next time around.
Wednesday, April 6, 2011
Big Deals Roar Back As Spirits Rebound
The deals market is back in a big way.
In just the past 48 hours, new mergers popped up across the globe -- including Texas Instruments' $6.5 billion purchase of venerable National Semiconductor, an unsolicited $6.5 billion offer by a state-owned Chinese mining company for a Canadian-Australian firm, KKR's $2.4 billion deal for a Pfizer unit, and a consortium of Japanese metal companies paying $680 million for Kentucky-based Arco Aluminum.
So far this year, companies around the world have announced $784.1 billion worth of deals, up from $637.9 billion over the same period in 2010, according to Dealogic. That marks the largest year-to-date volume since 2007, when $1.1 trillion worth of transactions were announced in the same stretch.
The deals show a renewed confidence by corporate executives and private-equity firms -- many in the developing nations of Asia -- who are sitting on $2.4 trillion in cash. With rates held low by the U.S. Federal Reserve, financing rates remain at some of the cheapest on record. The deals also reflect the unleashing of years of pent-up demand, as mergers across the globe largely came to a halt at the end of 2007, and worries that inflation might pick up, boosting rates.
All this has happened while evidence mounts that mergers often fail. Nonetheless, a change in psyche has pushed corporations to make deals -- if only for fear that a rival may strike first. Nowhere is that more clear than in the financial-exchanges business, where seven global players -- in the U.S., Germany, Canada, England, Singapore, and Australia -- are fighting for primacy of the world's financial markets. 'There are certain situations if you don't act now, you've lost your chance,' said Bruce Evans, head of Americas M&A at Deutsche Bank.
Deal makers may be further encouraged by stockholders, who are tending to reward companies that make acquisitions, pushing shares higher after deal announcements. Typically, shareholders punish companies that make big deals. Shares of Nasdaq OMX Group, for instance, rose 9% on Friday, after it announced an unsolicited $11.3 billion for NYSE Euronext Group last week.
Chip maker Texas Instruments on Monday announced its all-cash purchase of rival National Semiconductor, bringing together two big makers of devices used in cell phones, industrial equipment and consumer electronics. The price represented a nearly 80% premium over what National shares traded at on Friday.
The scope of this year's deals has been larger than in years past, with three so far valued at more than $15 billion each, compared to four at those heights in all of 2010, said Antonio Weiss, Lazard's global mergers-and-acquisitions chief.
The latest deals are bypassing traditional hot spots in the U.S. and Europe. In nearly a third of all deals last year, at least one party came from an emerging market, Mr. Weiss said. Emerging-markets deals are at their highest ever, says Dealogic, at around $210 billion during 2011.
China is now the third-most active nation for cross-border deals, with volume about one-third that of the U.S. and more than half that of the United Kingdom, according to Dealogic. Chinese firms have targeted oil and gas deals most avidly, followed by mining and chemicals.
One of the boldest moves this week came from China's Minmetals Resources Ltd., which said Monday it was making a $6.5 billion bid for Canadian-Australian Equinox Minerals Ltd. Minmetals is part of a Chinese state-owned mining conglomerate, whose previous interest in Canadian companies in 2004 received widespread derision among Canadian politicians at the time. Sentiment in Canada has changed since then, as politicians view Chinese deals as a necessary part of raising capital for new natural-resources investment.
The proposed deal represents China's largest acquisition bid since China Petrochemical offered $7.1 billion for a 40% stake in Repsol Brasil last October, according to Dealogic.
Despite turmoil in the Japanese economy, companies there haven't shied away from transactions. On Monday, Japan's Sumitomo Light Metal Industries announced it was leading a group of Japanese firms to buy Kentucky-based Arco Aluminum from BP PLC for $680 million.
Companies and private equity firms see the next several months as a window of opportunity, especially if inflation picks up. Private equity firms also need to put money to work as funds wind down and they embark on new fundraising rounds.
On Monday, Pfizer Inc. announced it was selling its Capsugel unit, which makes hard capsules, to Kohlberg, Kravis & Roberts in a $2.4 billion deal. Also, private equity firm Apax Partners announced it was acquiring Epicor Software Corp. and Activant Solutions Inc., both software providers, in deals totaling about $2 billion.
In just the past 48 hours, new mergers popped up across the globe -- including Texas Instruments' $6.5 billion purchase of venerable National Semiconductor, an unsolicited $6.5 billion offer by a state-owned Chinese mining company for a Canadian-Australian firm, KKR's $2.4 billion deal for a Pfizer unit, and a consortium of Japanese metal companies paying $680 million for Kentucky-based Arco Aluminum.
So far this year, companies around the world have announced $784.1 billion worth of deals, up from $637.9 billion over the same period in 2010, according to Dealogic. That marks the largest year-to-date volume since 2007, when $1.1 trillion worth of transactions were announced in the same stretch.
The deals show a renewed confidence by corporate executives and private-equity firms -- many in the developing nations of Asia -- who are sitting on $2.4 trillion in cash. With rates held low by the U.S. Federal Reserve, financing rates remain at some of the cheapest on record. The deals also reflect the unleashing of years of pent-up demand, as mergers across the globe largely came to a halt at the end of 2007, and worries that inflation might pick up, boosting rates.
All this has happened while evidence mounts that mergers often fail. Nonetheless, a change in psyche has pushed corporations to make deals -- if only for fear that a rival may strike first. Nowhere is that more clear than in the financial-exchanges business, where seven global players -- in the U.S., Germany, Canada, England, Singapore, and Australia -- are fighting for primacy of the world's financial markets. 'There are certain situations if you don't act now, you've lost your chance,' said Bruce Evans, head of Americas M&A at Deutsche Bank.
Deal makers may be further encouraged by stockholders, who are tending to reward companies that make acquisitions, pushing shares higher after deal announcements. Typically, shareholders punish companies that make big deals. Shares of Nasdaq OMX Group, for instance, rose 9% on Friday, after it announced an unsolicited $11.3 billion for NYSE Euronext Group last week.
Chip maker Texas Instruments on Monday announced its all-cash purchase of rival National Semiconductor, bringing together two big makers of devices used in cell phones, industrial equipment and consumer electronics. The price represented a nearly 80% premium over what National shares traded at on Friday.
The scope of this year's deals has been larger than in years past, with three so far valued at more than $15 billion each, compared to four at those heights in all of 2010, said Antonio Weiss, Lazard's global mergers-and-acquisitions chief.
The latest deals are bypassing traditional hot spots in the U.S. and Europe. In nearly a third of all deals last year, at least one party came from an emerging market, Mr. Weiss said. Emerging-markets deals are at their highest ever, says Dealogic, at around $210 billion during 2011.
China is now the third-most active nation for cross-border deals, with volume about one-third that of the U.S. and more than half that of the United Kingdom, according to Dealogic. Chinese firms have targeted oil and gas deals most avidly, followed by mining and chemicals.
One of the boldest moves this week came from China's Minmetals Resources Ltd., which said Monday it was making a $6.5 billion bid for Canadian-Australian Equinox Minerals Ltd. Minmetals is part of a Chinese state-owned mining conglomerate, whose previous interest in Canadian companies in 2004 received widespread derision among Canadian politicians at the time. Sentiment in Canada has changed since then, as politicians view Chinese deals as a necessary part of raising capital for new natural-resources investment.
The proposed deal represents China's largest acquisition bid since China Petrochemical offered $7.1 billion for a 40% stake in Repsol Brasil last October, according to Dealogic.
Despite turmoil in the Japanese economy, companies there haven't shied away from transactions. On Monday, Japan's Sumitomo Light Metal Industries announced it was leading a group of Japanese firms to buy Kentucky-based Arco Aluminum from BP PLC for $680 million.
Companies and private equity firms see the next several months as a window of opportunity, especially if inflation picks up. Private equity firms also need to put money to work as funds wind down and they embark on new fundraising rounds.
On Monday, Pfizer Inc. announced it was selling its Capsugel unit, which makes hard capsules, to Kohlberg, Kravis & Roberts in a $2.4 billion deal. Also, private equity firm Apax Partners announced it was acquiring Epicor Software Corp. and Activant Solutions Inc., both software providers, in deals totaling about $2 billion.
Monday, March 21, 2011
Kate did not forget the wedding of William Charity, fundraising refuse gifts
Kate Middleton has asked her wedding guests to donate to an anti-bullying charity, in a tacit admission she was a victim at school. Former classmates have previously revealed how then 13-year-old Kate was forced to leave a private school after being targeted by bullies. Her parents are said to have removed her after just two terms, before sending their daughter to the exclusive Marlborough College part-way through the academic year.
Now the Beatbullying charity has been included in a list of good causes that ‘resonate with’ Kate, 29, and Prince William. While most couples set up a gift list ahead of their big day, the royal couple yesterday asked their 1,900 guests and tens of thousands of well-wishers to donate to one of 26 chosen charities instead.
They include a London Zoo project to save the black rhino in Kenya, where William proposed, and several military charities linked to William’s work as an RAF search and rescue pilot and his new role as a colonel in the Irish Guards.
Now the Beatbullying charity has been included in a list of good causes that ‘resonate with’ Kate, 29, and Prince William. While most couples set up a gift list ahead of their big day, the royal couple yesterday asked their 1,900 guests and tens of thousands of well-wishers to donate to one of 26 chosen charities instead.
They include a London Zoo project to save the black rhino in Kenya, where William proposed, and several military charities linked to William’s work as an RAF search and rescue pilot and his new role as a colonel in the Irish Guards.
Subscribe to:
Comments (Atom)