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ANALYSIS

Sagging Index no longer reflects what’s going on in the market, some say, Replacements? Google it, to start.
 
Downward price spiral will actually boost the cost of capital for most companies. CFOS, take note.
 
The latest bailout at AIG could be a preview of how the president will deal with Wall Street.
 
No corporate defaults. Big debt offerings. Percolating CP issuance. Things may be looking up in the capital markets.
 
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Big Deals


Lafarge agreed to buy Orascom Construction Industries’ Egyptian cement unit for $12.9 billion, to become the biggest producer of cement in the Middle East.

Eisai, the Tokyo-based maker of the world’s best-selling Alzheimer’s medicine, agreed to acquire U.S. drugmaker MGI Pharma for $3.9 billion to gain more cancer drugs.

Steelmaker ArcelorMittal agreed to take over China Oriental Group to gain a foothold in the fastest-growing steel market and valued the company at a minimum of $2.4 billion.

Reckitt Benckiser, the British maker of Strepsils throat lozenges, agreed to purchase Adams Respiratory Therapeutics for $2.3 billion to gain Mucinex expectorants and Delsym cough medicine.

Crown, Australian billionaire James Packer’s gambling company, agreed to buy Cannery Casino Resorts for $1.75 billion in cash, doubling its gambling investments in North America.

Allco Finance Group, the Sydney-based manager of ships and aircraft, and an Australian pension fund manager agreed to buy power plants in the U.S. Northeast from Consolidated Edison for $1.48 billion.

TSX Group agreed to buy Montreal Exchange for about $1.3 billion in cash and stock, combining Canada’s equity and derivatives exchanges to compete with new trading platforms and international bourses.

U.S. fertilizer maker Agrium sold $1.25 billion of common shares to help finance its purchase of UAP Holding. The company may also sell an additional 2.16 million shares at $58 each.

Prudential Financial acquired Round Hill Capital Partners Kabushiki Kaisha, a Japanese real estate management firm. Round Hill previously provided asset management services to Prudential Real Estate Investors and has arranged 19 investments for Prudential totaling $1.5 billion.

Write to the editors at fw_editor@financialweek.com.
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