Austria

Osram hedge-fund latecomers face a rude awakening

9 December 2019

Austria’s AMS has won its battle for the German lighting group, after receiving sufficient backing from the latter’s army of speculators. Even more hedge funds are betting that quirky domestic M&A rules will help them secure a higher exit price. But that wager could yet go wrong.

Osram M&A traps hedge funds in prisoner’s dilemma

3 December 2019

Speculators now own up to 45% of the German lighting group. If they can be enlightened enough to work together, there’s a way to make would-be acquirer AMS pay more than $5 bln. But if they revert to self-interested type, the deal will fall through and they will all lose money.

Osram sequel risks Pyrrhic victory for AMS

21 October 2019

The Austrian sensor maker launched another bid for the German lighting group. Though the 4.5 bln euro price is the same, a lower acceptance threshold improves its chances of success. But if AMS can’t take control of the remaining shares later, it may struggle to pay down debt.

AMS has tricky route out of M&A cul-de-sac

15 October 2019

The Austrian sensor maker has no good options after its failed bid for lighting group Osram. But German regulators have given it a least-bad exit via a sneaky loophole. It’s not perfect but is better than selling down its Osram stock at a loss or ditching its strategic ambitions.

German lighting mess has glimmer at end of tunnel

7 October 2019

AMS’s failed bid for Osram leaves the Munich-based group looking friendless and saddled with a blocking stake that might deter private equity. Yet Bain and Advent could afford to offer more without destroying their returns. If they do, it may suit seller, unions and even AMS.

Osram bidding war triggers flashing red lights

27 September 2019

Austrian sensor specialist AMS is upping its bid for the German bulb and LED maker to 4 bln euros. The 17% premium to a formal Bain-Carlyle offer will probably see off the private equity challengers. But it adds another turn to the deal’s already stretched finances.

Apple’s Austrian vassal solves one of its problems

30 April 2019

Shares in chipmaker AMS soared 20 pct after it forecast better second-quarter sales and implied it was relying less on the iPhone maker for business. But it still has a heavy debt pile and low margins. Greater detail on new revenue sources would make the bounce more durable.

Chrysler Building can ape its Midtown rival

20 March 2019

New York City’s art deco tower is being sold for $150 mln, a fraction of what it fetched a decade ago. An onerous ground lease, renovation needs and drift away from Midtown explain much of the discount. But the Empire State Building shows how to restore luster to fading icons.

Raiffeisen is stalked by spectre of Danske

5 March 2019

Shares in the Austrian lender and two Dutch banks fell after media reports of money-laundering allegations. The former is the hardest hit since investors think the latter have stronger defences. Fears of a Danske-style U.S. probe mean they are in no mood to defer judgment.

Apple’s Austrian roadkill looks like an M&A target

5 February 2019

Chipmaker AMS is being squeezed by the U.S. tech giant, its biggest customer. A heavy debt pile and rising investment needs have scuppered its dividend. With shares down 70 pct in six months, investors’ best hope may be a sale to a fellow Apple supplier, like STM.

Abu Dhabi’s $6 bln oil deal is a three-way hedge

29 January 2019

The emirate has sold 35 pct of its oil group’s refining arm to two European producers. Italy’s Eni gets to offset a heavy reliance on exploration, while Austria’s OMV gets non-European refining. Abu Dhabi hedges its dependency on crude by turning crown jewels into cash.

Germany gets a chastening exit from HSH Nordbank

28 February 2018

The public sector owners of the battered lender are selling out for 1 billion euros, after pumping in 10 times that. Despite restructuring, HSH remains a ropey asset. But Cerberus and its fellow acquirers are buying in at a low enough level to make a healthy return.

Steinhoff reminds creditors they are not all equal

1 February 2018

The scandal-hit retailer is planning early repayment of a $1.3 bln South African bond in return for releasing funds to cash-strapped European brands. Other mainly international creditors will be asked for waivers. It’s an early indicator of the unofficial pecking order.

Europe poorly placed for Austria’s rightward drift

16 October 2017

The far-right Freedom Party scored well in the country’s election and may enter government. It has been in power before. However, its presence could make Europe’s immigration problem harder to manage, and further integration harder to agree. Centrifugal forces have not gone away.

Cerberus tests demand with long-awaited Bawag exit

27 September 2017

The U.S. buyout firm is planning an IPO of the Austrian lender it bought, damaged by the Refco trading scandal, in 2006. For Cerberus and its partners, it has been a drawn-out turnaround. For new investors, Bawag is temptingly digital and efficient. The caveat: it’s still a bank.

Europe and U.S. clash over who bullies the bullies

16 June 2017

Germany has bristled at draft U.S. sanctions against Russia, claiming the global policeman is overplaying its clout. Europe is readying a big fine for tech giant Google for doing something similar. Bullies aren’t easily toppled, but countries are harder to rein in than companies.

Where to put Europe’s bank regulator? Try Bulgaria

26 May 2017

Brussels has invited member states to bid to host the European Banking Authority when its current host, Britain, quits the EU. The EBA hasn’t exactly dazzled in its handling of bank stress tests. But it could be a decent trophy for a non-euro country that feels unloved by the bloc.

Austria’s “nein” to far-right buys time for reform

4 December 2016

The presidential election ended in a clear defeat for Norbert Hofer's Freedom Party. Chancellor Christian Kern has just under two years to deliver a "new deal" including lower tax and more infrastructure spending. His right-wing opponents have taken a knock, but remain strong.

Europe’s long weekend presents a triple threat

1 December 2016

In the space of just 48 hours Italy's premier will face a make-or-break referendum, Austria could elect a far-right president, and Greek debt talks will reach a head. All three have the potential to revive the centrifugal forces that could send Europe spinning out of control.

Erste sobers up over-ebullient investors

4 November 2016

The Austrian lender warned of flat revenue next year, despite its presence in fast-growing European economies. Fast deposit growth cut Erste's loan margin by 5 pct in the third quarter. The bank's valuation was too rosy, but investments in digital should eventually bear fruit.