Danske cash gusher faces regulatory blockage 4 Jul 2018 The Danish lender may have helped launder 53 billion Danish crowns ($8 bln) in its Estonian business. The group’s healthy balance sheet helps, but a fine of 8 billion crowns or more could take the bank’s leverage ratio down to 4 percent, and risk generous shareholder distributions.
Macquarie takes bold dive into Danish telecoms 12 Feb 2018 Teaming up with local pension funds to buy TDC for $6.7 bln is a bet on ultra-fast broadband. It’ll be hard to cut costs at the former private equity-owned firm. Stiff competition for infrastructure assets is forcing the Aussie bank to take risks. Financial engineering may help.
Heineken’s number two status brings marginal costs 12 Feb 2018 The Dutch brewer is one of the few global groups still increasing beer volumes. However, acquisitions will weigh on operating margins in 2018. Heineken needs to invest in its new Brazilian brands to take on market leader AB Inbev. That limits the scope for boosting profitability.
TDC has narrow bandwidth for takeover defence 8 Feb 2018 Denmark’s biggest telco rebuffed a $6 bln approach from a buyout group including local pension funds and Macquarie. The infrastructure-focused consortium’s logic is odd: TDC has been through private equity ownership, and is moving into media. But the chunky premium may be enough.
Sanofi’s M&A bloodlust comes at a high price 29 Jan 2018 The French group is buying blood disorder biotech Ablynx for 3.9 bln euros. That’s 50 pct more than rival Novo Nordisk bid, including protections against drug flops. Combined with last week’s $11.6 bln purchase of a haemophilia group, Sanofi’s new acquisitiveness lacks caution.
Novo can pump its $3.1 bln blood bid even higher 8 Jan 2018 The Danish pharma group offered to buy Belgium’s Ablynx, which is developing a bleeding-disorder treatment. The returns look healthy for Novo Nordisk, which will also get a cheap option on two other potential drugs. That suggests rival bidders may not be far behind.
Scandinavian payments buyout faces long payback 25 Sep 2017 Hellman & Friedman is buying Danish group Nets for $6.6 bln including debt. It’s the latest private equity firm to ride the switch to online payments. Nets has been through the buyout machine before, and faces threats. There are few easy wins in the current hot market.
Lego slams into virtual wall 5 Sep 2017 The Danish toymaker is packing away 1,400 jobs after its decade-long sales boom faltered. Attaching itself to hit movies like "Star Wars" cemented strong growth, including from nerdy adults. As toy-market competition intensifies, Lego’s success requires an augmented-reality shift.
Total gives Maersk a crude $7.5 bln exit from oil 21 Aug 2017 The Danish conglomerate will get a 3.8 pct stake in French energy major Total in return for its oil assets. While the price looks good, Total’s stock has underperformed Maersk’s. At least Maersk investors may retain exposure to the rich synergies Total is predicting.
DONG Energy is proof that green and greed mix well 10 Aug 2017 The Danish wind operator’s earnings are up more than expected in the second quarter. This is no flash in the pan and CEO Henrik Poulsen may hand back more cash to investors in the next year or so. DONG’s valuation deserves to catch up with its European green energy peers.
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.
DONG’s green energy premium is a work in progress 24 May 2017 By hiving off its North Sea oil and gas assets for $1.3 bln, the state-owned Danish utility is now one of the biggest clean energy pure-plays. Yet its stock market value does not reflect this unique position. A 20 pct discount to German rival Innogy seems excessive.
Volvos plus FX trading defies even Chinese logic 11 May 2017 Geely, the Chinese owner of the sensible Swedish cars, is buying into a Danish trading platform. Mainland companies are pouring money into foreign finance and Saxo Bank’s fintech knowhow has allure. It's hard to see what use Geely’s carmaking experience will be here, though.
New captain can steer Maersk into calmer waters 8 Feb 2017 The ailing Danish shipping and oil conglomerate reported disappointing fourth-quarter results, halved its dividend and replaced its chairman. Yet a rising oil price, recovering freight rates and Maersk’s coming split mean former SAP boss Jim Snabe is boarding at a turning point.
Carlsberg boss grapples with stubbornly flat pint 8 Feb 2017 The Danish brewer’s full-year results show Cees ‘t Hart’s turnaround plan is helping profit margins. He also closed a valuation gap with Heineken and beat AB InBev on investor return since taking over. But Carlsberg’s presence in tough markets caps how much more can be done.
No cure for Big Pharma’s diabetes problem 28 Oct 2016 Sanofi and Novo Nordisk’s earnings from diabetes drugs are collapsing. Financial remedies are scant. Novo is cutting costs and scraping investment, while Sanofi is buying back shares and prowling for acquisitions. At least the latter’s stock is already cheap.
Shrink to greatness? It’s not always that simple 22 Sep 2016 Danish conglomerate Maersk just said it will break up. The shares barely moved. Carving up a complex corporate beast can make great sense - think HP. But some hybrid companies that resist being split, like Rolls-Royce, ABB and AB Foods, may have a point.
Nets payment IPO calls for point-of-sale discount 13 Sep 2016 The top end of the Danish payments firm's price range would see it valued at 16 times 2016 EBITDA. That would be a premium to rival Worldpay, which is growing its revenue faster. Nets is throwing off buckets of cash. But the cyber risk surrounding payments calls for caution.
Nets IPO offers defensive front in payments war 1 Sep 2016 The Nordic payments firm is listing after just two years of private equity ownership. Valued alongside card network and processing peers, its equity could be worth $5 bln. New rules on digital banking may explain the timing, but Nets is less at risk than more niche players.
Vestas is one blade short of a full turbine 18 Aug 2016 After a much better second quarter, the resurrected Danish wind turbine maker has increased its operating profit forecast for 2016. Successful cost cuts and rising demand for green power create strong tailwinds. It’s time for the $16 bln group to ditch a parsimonious dividend policy.