Rising valuations discourage take-private trend

Despite Alibaba’s recent bid for AutoNavi, M&A specialists expect fewer Chinese companies to leave the US after share prices surged in 2013.

Enthusiasm for take-private transactions could be on the wane in 2014 as the list of potential candidates dries up due to tougher financing conditions and rising US share prices.

“We aren't seeing as many announcements compared to 18 months ago,” said Gregory Puff, a Hong Kong-based partner at US law firm Akin Gump who has worked on more than a dozen going-private transactions.

Some deals are still happening. Alibaba bid this week to buy AutoNavi, a Chinese online map company, and the take-private of AsiaInfo-Linkage finally closed in January.

However, these deals do not fit the trend of earlier transactions. “Typically you...

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