THis is why LAZ worth at least $26.5
THis is why LAZ worth at least $26.5
Take a look at this link and you will know why LAZ target is $26.5. However my target is not just based on these analyst opinion, but from FA my model.
http://finance.yahoo.com/q/ao?s=LAZ
Article from WJS:
U.S. deal makers still lead the M&A world
July 14th 2005
AFX Asia
(c) 2005, AFX Asia. All rights reserved.
NEW YORK (XFN-ASIA) - When Chinese oil company CNOOC Ltd. Stunned the markets by making a $18.5 billion bid for Unocal Corp. last month, it didn't lean on China's burgeoning banking industry.
Nor did the company go to any Asian-based firm to advise them on the deal. Instead, like many foreign companies, it sought American-made advice from Goldman Sachs Group Inc. , J.P. Morgan Chase and legal advice from Davis Polk & Wardwell.
As CNOOC's choice suggests, Chinese mergers and acquisitions may be grabbing headlines, but U.S. investment banks continue to be grabbing the fees for advising on deals.
"They have a vast wealth of experience, detailed home country knowledge and are very adroit at hiring people from every country," said James Owers, a Harvard University associate and finance professor at Georgia State University. "When you overlay that with the traditional experience you have competitive advantage."
Indeed, though M&A is up in countries around the world, including Japan, the United Kingdom, Italy, Germany, Spain and Russia, the U.S. market remains the hottest with $593 billion in deals through the first half of the year, up 35%, according to Dealogic.
China's M&A market is actually having a slower year through the first half, down 15% to $23 billion. That puts the People's Republic 11th globally behind countries like Canada, Australia and the Netherlands.
U.S. leaders
Through the first half of 2005, four of the top five global advisers were U.S.-based firms: Morgan Stanley , Goldman Sachs, Merrill Lynch & Co. and J. P. Morgan ranked one through four. Swiss bank UBS placed fifth.
Owers cautions that U.S. banks and sellers such as Unocal may learn a lesson from the late 1980s and early 1990s. At that time, foreign buyers, including many from Japan, bought U.S. assets. The fear about foreign ownership incited nationalism and protectionism, Owers said. But, in the end, the sellers and bankers were the ones who profited.
"If someone offers you more than market price, give them the keys and let them drive it away," Owers said.
Shrinking competition
It was only a few years ago when firms such as Lazard Ltd., Cazenove, and Schroeders were considered top competitors emerging from Europe.
But Lazard booted its European management for U.S. banker Bruce Wasserstein and went public on the New York Stock Exchange. J.P. Morgan bought a 50% stake in Cazenove in 2004 and Schroeders was acquired by Citigroup for $2.2 billion in 2000.
In their place, banks such as HSBC Holdings under John Studzinski, Deutsche Bank , Dresdner Kleinwort Wasserstein and Nomura remain second-tier players with bigger ambitions.
Even in Europe
U.S. banks remain the heavyweights in Europe taking advising roles in the two biggest deals of the year. When Bayerische Hypo Vereinsbank agreed to be acquired by UniCredito Italiano in June for $18.6 billion, J.P. Morgan, Citigroup, and Deutsche Bank advised the target. Merrill Lynch and Goldman advised the buyer.
Likewise when Pernod Richard and Fortune Brands agreed to buy Allied Domecq in April for $17.7 billion, Goldman advised Allied, three U.S. banks advised the buyer with Deutsche Bank, CSFB and BNP Paribas.
That U.S. firms are leading the deals isn't new and isn't likely to change.
"They are aggressive in their strategy," Owers said. "If you're good at something and have a good strategy...you will be dominant."
This story was supplied by MarketWatch. For further information see www. marketwatch.com.
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