Telecom M&A Down 2% Over 2011 Levels

T-Mobile USA's $3.9 billion bid for MetroPCS Communications, the third largest telecom deal this year, pushes the volume of worldwide merger activity in the telecommunications sector so far this year to $80.7 billion, a 2% decline from year-to-date 2011. Telecom companies in China, the United States and Russia account for 59% of overall deal making in the sector this year, up from 25% during year-to-date 2011. China Telecom's $18.0 billion purchase of China Telecommunication's 3G assets in August ranks as the largest worldwide telecom deal this year and the second largest all-time telecom deal in China.

UBS leads the financial advisory league tables for telecom M&A with $27.9 billion, followed by Morgan Stanley, Goldman Sachs and Deutsche Bank.

Global Convertible Bonds Fall to 17-Year Low

Global convertible bond issuance totals $45.4 billion for year-to-date 2012, a 23% decline from last year at this time and the slowest year-to-date period for convertible bond issuance since 1995 ($34.8 billion). WellPoint Inc's $1.5 billion convertible bond offering this week brings the volume of US activity to $17.6 billion, or one-third of year-to-date volume, which has declined 26% over the year ago period. European issuers account for 27% of activity this year, up 25% compared to 2011 levels.

Financials, technology, industrials and healthcare account for 71% of convertible offerings this year, up from 55% last year at this time. JP Morgan leads all convertible bond underwriters this year with 10.3% market share, an increase of 0.6 points, while Goldman Sachs has fallen to second place with a loss of 2.3 market share points.

Malaysia IPOs Break All-Time Record

The $1.5 billion initial public offering from broadcast TV operator, Astro Malaysia Holdings Bhd, became Malaysia's third multi-billion dollar listing this year and pushed the volume of IPOs from Malaysian companies to $7.3 billion for year-to-date 2012, already besting the all-time annual record set in 2010 ($6.9 billion). Bolstered by a flurry of offerings, Kuala Lumpur listings now rank fourth globally behind Nasdaq, the New York Stock Exchange and Tokyo First Section, by proceeds raised.

CIMB Group Sdn Bhd leads the ranking for Malaysia IPO underwriting this year with proceeds of $1.4 billion for 20.1% market share, followed by Deutsche Bank and Malayan Bank Bhd, each with 12.2% market share this year. JP Morgan and Morgan Stanley round out the top five.

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Thomson Reuters
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