On Dow Jones Investment Banker Today: Genzyme, Kirin, Booz Allen

LONDON (Dow Jones Investment Banker)--The following columns have been published exclusively on Dow Jones Investment Banker in recent days. Many Dow Jones Investment Banker columns contain spreadsheets, video, PDFs and other supporting material. To arrange access to the best of Dow Jones news and opinion on companies, sectors and deals for investment bankers, please contact investmentbanker@dowjones.com. To see more, visit: http://www.dowjones.com/banker THE REMEDY: Deal Fever Is No Rare Disease NEW YORK--Sanofi-Aventis SA (SAN.FR) should buy Genzyme Corp. (GENZ). And so should GlaxoSmithKline PLC (GSK.LN). And Johnson & Johnson (JNJ). And AstraZeneca PLC (AZN.LN). Many have argued that Sanofi ought to snap up the biotech and rare disease specialist, a possibility first reported Friday. The catch is that the arguments given apply to many of the French pharmaceuticals giant's peers, as well. Indeed, if other companies enter the fray, the winner of a bidding war will not be the company best positioned to wring value out of the acquisition. The bidders will hardly be differentiated there. Instead, the winner will be the company with the most potent combination of desperation for new revenue and financial capacity to pay for it. (Includes supporting graphic.) Contact the columnist: robert.armstrong@dowjones.com TIER ONE: Wishy-Washy Capital Rules Follow The Cozy Stress Tests LONDON--Everybody expected it, but the dilution of Basel III proposals for new bank regulations is still shocking -- as is the gleeful reaction from banks and from banking analysts who work for banks. Banks are reaping what they sowed with their massive lobbying activities and the cascade of objections they lodged with the Basel committee when it published its first proposals in December 2009. Contact the columnist: joe.ortiz@dowjones.com THE MALL: Kirin Goes For Drinks In Singapore HONG KONG--The rationale behind Kirin Holdings Co. Ltd. (2503.TO) of Japan taking a 14.7% stake in Singapore's Fraser & Neave Ltd. (F99.SG) from sovereign wealth fund Temasek Holdings is clear enough. But to drive synergies, it needs to push for a restructuring of the assets, with one path being to spin off the company's beverage units from its real estate unit. Contact the columnist: jamie.miyazaki@dowjones.com THE SIGNAL: Global Crossing Sees Price Stabilization LONDON--In much of telco-land, price elasticities are the name of the game, and perhaps nowhere more so than when you're selling capacity and managed services to carriers and enterprises on fixed networks. Dow Jones Investment Banker caught up with Global Crossing Ltd. (GLBC) CFO John Kritzmacher and CFO of North America Gary Breauninger to discuss the company's second-quarter results and the state of the market. Contact the columnist: paul.sharma@dowjones.com THE MALL: The Bargain Is Dillard's NEW YORK--Dillard's Inc.'s (DDS) valuation seems out of style. The retail chain trades at a paltry 4.7 times trailing Ebitda, at the low end of publicly traded U.S. department store chains. This compares to 5.3 times for J.C. Penney Co. (JCP), 5.4 times for Macy's Inc. (M) and 6.1 times for Kohl's Corp. (KSS). The low valuation coupled with the company's sizable and arguably under-appreciated real estate holdings make it an attractive leveraged buyout target. Contact the columnist: sameer.bhatia@dowjones.com THE SHIELD: Booz IPO Leaves Investors Guessing NEW YORK--Thanks to The Washington Post, anyone thinking seriously of investing in Booz Allen Hamilton Inc.'s IPO has fresh questions about how fast Booz can grow revenue. They should demand answers before reaching for their wallets. No one who follows the defense industry will be surprised by the central idea driving the Post's much-read "Top Secret America" series: The post-9/11 explosion in contracting for U.S. intelligence, defense and homeland security came with wasteful duplication and questionable outsourcing of "inherently government functions." The upshot of the series is that there will be cutbacks in contracting. The issue is not whether but where and when. Contact the columnists: gregory.millman@dowjones.com; robert.armstrong@dowjones.com TIER ONE: People's United - Good Steps For An Over-Capitalized Bank NEW YORK--What a difference four months make. Since we last checked in on People's United Financial Inc. (PBCT), the New England bank has replaced its CEO, made two acquisitions, opened de novo banks and repurchased shares. Still, with about $2 billion in excess capital, People's United needs to keep making acquisitions, focusing especially on M&A in its current footprint, to achieve a decent return on capital. (Includes supporting graphic.) Contact the columnist: lisa.lee@dowjones.com THE SIGNAL: LightSquared In Spectrum Play LONDON--After much rumbling in the market, the plans for wireless network company LightSquared, owned by private-equity firm Harbinger Capital Partners, were announced last Tuesday. The ambitious project involves installing 40,000 wireless base stations and launching two satellites, with a goal of covering 92% of the U.S. population by 2015 and reaching the remaining areas by satellite. Its business model is wholesale-only, and it will be interesting to see whether any others follow this path. Contact the columnist: paul.sharma@dowjones.com (END) Dow Jones Newswires July 27, 2010 15:08 ET (19:08 GMT)