Austria

Fertiliser makers face long wait for free lunch

11 Apr 2022

Soaring gas prices are making products of crop nutrient producers like Norway’s Yara and Austria’s Borealis unaffordable for farmers. Subsidising the companies might be the least bad way to avoid a food inflation crisis. Waiting for grains to fail will store up bigger problems.

Selfridges’ buyer has hedge against retail risks

24 Dec 2021

Thailand’s Central Group and Austria’s Signa are paying a pricey $5 bln to acquire the department store group. With the future of retail uncertain post-pandemic, they’re taking a risk. Yet the scale of that punt is reduced by the fact this is also a prime real estate deal.

Europe’s vaccine bazooka is more like sniper rifle

18 Nov 2021

Germany may join Austria in imposing curbs on the unvaccinated to tackle soaring Covid-19 infections. Restricting freedoms is harsh but worked in France and the United States, which both saw inoculation rates pick up. It also avoids the economic pain of blanket lockdowns.

Europe lockdown easings are hard act to follow

6 Apr 2020

Austria hopes to reopen some shops next week, with Germany following suit from mid-April. Britain and America, with inferior testing and higher virus transmission rates, are well behind. And compared with China’s timetable, the West’s guinea pigs might still be jumping the gun.

Hedge funds’ German M&A pleasure flips to pain

31 Mar 2020

Covid-19 has turned the tables on speculators buzzing round AMS’ 4.6 bln euro takeover of Munich-based Osram. The Austrian group may struggle to buy out minority investors. That leaves funds using a well-worn legal loophole to squeeze out a premium facing hefty losses instead.

Banks limber up for next round of AMS self-harm

11 Mar 2020

HSBC and UBS are underwriting the Austrian sensor maker’s 1.7 bln euro rights issue. Doing so amid a market meltdown sounds masochistic. But given the banks are owed 4.4 bln euros from AMS’ tortuous purchase of German group Osram, you can see why they’re taking the risk.

Osram hedge-fund latecomers face a rude awakening

9 Dec 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 Dec 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 Oct 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 Oct 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 Oct 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 Sep 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 Apr 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 Mar 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 Mar 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 Feb 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 Jan 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 Feb 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 Feb 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 Oct 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.