Special Reports for 2006

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Eighteen months after joining the European Union, the eight countries of central Europe and the Baltics continue to experience the benefits from EU accession, while south-eastern Europe remains in the waiting room, with uncertain prospects regarding an accession date for some countries. Henry Gibbon reports

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Not only do the rapidly growing economies of Central and Eastern Europe offer better opportunities for growth, but their location also makes them key potential hubs for the import of future fuel supplies from Russia and the Caspian region. Andrew Cavenagh reports

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Airports have become a big focus of interest for both established operators and financial buyers, as economic growth across the region and the expansion of the European Union promises to boost air travel over the next decade.

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Liquidity increases as private equity in Central and Eastern Europe finally brings home the bacon. Ben Harding reports

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After a spectacular 2005, no one is expecting Turkish M&A volumes in 2006 to maintain that same level. However, with EU negotiations now in process there is a sense that the country has turned the corner as far as foreign direct investment is concerned.

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Despite expecting fewer blockbusters, the deal pipeline is looking healthy, driven by deals valued at €1bn to €5bn. Alexander Wessendorff reports

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Bank of Ireland’s Acquisition Finance unit was established in 1996 and has dedicated equity sponsor coverage teams in Dublin, London, Paris, Frankfurt and Greenwich Connecticut.

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The leveraged finance market in Germany has grown dramatically in recent years and further steady growth is likely, writes Maurice FitzGerald Director, Bank of Ireland's Acquisition Finance team, Germany.

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Blackstone’s stake in Deutsche Telekom may lead to more public minority investments by private equity locusts. Angela Sormani reports

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With purchase price multiples at an all-time high in Germany, private equity firms need to work harder than ever to employ strategies that ensure sufficient value creation and maintain returns. Dr Sebastian Kern and Guido May of PPM Capital Munich look at Germany’s challenging mid-market

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In the first half of 2006, Thomson Financial recorded 59 leveraged buyouts involving German targets, with a total transaction value of about US$4.1bn. The true figure is likely to be considerably higher because a number of transactions with an undisclosed deal value are estimated to be in excess of US$1bn.

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When in October 2002 Société Générale Corporate & Investment Banking’s (SG CIB) René de Laigue, global head of leveraged finance and acquisition finance, initiated a leveraged finance presence in Germany, this was seen as a logical step in completing SG CIB’s increasingly pan-European footprint in this product range.

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Claus Peter, Managing Director Leveraged Finance Group, Frankfurt, and Thomas Racky, Managing Director Financial Sponsor Coverage, Frankfurt, look at the changing face of LBO structures in Germany

To show how the sector has developed over recent years, we present case studies of successful private equity deals in Germany – discussing how the deals came about, what made them work and how successful exits were achieved.

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Russia is seen as an increasingly safe market despite Yukos and state-interference. Adam Durchslag reports from Moscow.

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The two companies are set to become the world’s largest aluminium enterprise

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The residual assets divide – crucially – between those inside Russia and those outside. Andrew Cavenagh reports

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Russians might try and buy a blocking stake in Europe’s largest aerospace and defence company

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Private equity is still only for Russians, but international players are lining up to enter the fray. Nick Davies reports from Moscow

KPMG’s Moscow Financial Advisory Services group is part of KPMG’s global network of over 7,000 financial advisory professionals in 60 countries, and provides a range of advisory services that help the firm’s clients develop and achieve their financial strategies in Russia and the CIS.

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In less than a century Russia has undergone a full-circle transition from the existence of a form of private ownership under the Tsar, abolishment of private property by the newly-founded state after the October Revolution, back to the privatisation of state assets by individuals and, once again, private ownership. Marc Van der Plas, partner, head of corporate finance, KPMG in Russia and CIS traces the more recent phases of this development and looks to the future.