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- First Step to Final Offer 4/15/25
First Step to Final Offer 4/15/25
Brooks Gammill
April 15, 2025
Your weekly round-up of an M&A deal walkthrough, insightful market news summaries, technical quiz questions, and various internships, events, and diversity programs. A key resource to best prepare yourself for finance recruiting. If someone sent you the newsletter subscribe below!
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Rabobank Group Corporate Finance Summer 2026 Analyst Link
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Class of 2028 Finance Opportunities
Citi Freshman Discovery Program, Virtual – US, 2025 Link
TECHNICAL QUESTION OF THE WEEK:
A company issues $100 in Preferred Stock to purchase $50 of PP&E. How do Equity Value and Enterprise Value change? |
MARKET NEWS
T. Rowe Price Investment Management Backs Starboard in Autodesk Proxy Battle
T. Rowe Price Investment Management, one of Autodesk’s largest shareholders, plans to support activist investor Starboard Value's slate of director nominees in the upcoming proxy contest at the software company. As of the fourth quarter of 2024, the firm held 1.08% of Autodesk's shares, ranking as the 14th largest shareholder. This decision comes ahead of the June shareholder meeting and prior to the filing of final proxy materials. Starboard, which holds a $500 million stake in Autodesk, has criticized the company's underperformance and nominated three directors, including its CEO Jeff Smith. The proxy fight is among the most significant of the year, highlighting ongoing debates over corporate governance and performance.
Source: Reuters
Global Bond Funds See Largest Weekly Outflows in Over Five Years
In the week ending April 9, 2025, global bond funds experienced their most significant weekly outflows since April 2020, with investors withdrawing a net $25.71 billion. This mass exodus was driven by escalating recession fears and heightened U.S.-China trade tensions, particularly after President Donald Trump increased tariffs on Chinese imports to 145%, prompting China to retaliate with 125% tariffs on U.S. goods. U.S. bond funds bore the brunt, losing $15.64 billion, while European funds saw $12.72 billion in outflows. High-yield and loan participation funds were notably affected, with outflows of $15.92 billion and $6.69 billion, respectively. Conversely, money market funds attracted $25.8 billion, and gold and precious metals funds continued their positive streak with $1.03 billion in inflows, as investors sought safer assets amid the turmoil.
Source: Reuters
M&A DEAL OVERVIEW
Silver Lake Acquires Majority Stake in Intel’s Altera Unit in $8.75 Billion Deal
Intel has agreed to sell a 51% stake in its Altera programmable chip business to private equity firm Silver Lake for $4.46 billion, valuing Altera at $8.75 billion. This move, announced on April 14, 2025, is part of CEO Lip-Bu Tan's strategy to streamline operations and focus on Intel's core business. Intel will retain a 49% stake in Altera, allowing it to benefit from the unit's future growth while strengthening its balance sheet. Raghib Hussain, formerly of Marvell Technology, will succeed Sandra Rivera as Altera's CEO effective May 5, 2025. The transaction is expected to close in the second half of 2025.
Source: Intel
ADDITIONAL RESOURCES
LAST WEEK TECHNICAL QUESTION OF THE WEEK ANSWER:
Correct Answer: B, Yes, it would mean the company has been unprofitable, repeatedly, or it has paid out more in dividends than it has earned. — Could a company have negative Common Shareholders’ Equity (CSE) on its Balance Sheet? If no, why not? If yes, what would it mean?
Explanation: Yes, a company can have negative Common Shareholders’ Equity (CSE) on its balance sheet. This typically means the company has either accumulated significant losses over time—resulting in negative retained earnings—or has paid out more in dividends than it has earned. In essence, it reflects that the liabilities exceed the assets attributable to common shareholders, which can signal financial distress or aggressive financial strategies.