Pandora’s rapid growth is no longer a charm 9 Feb 2016 Growth of the Danish jeweller’s sales of trinkets and charm bracelets will halve to 14 percent in 2016. The stock, which doubled in a year, has fallen a fifth in a week. When expectations are high, a little disappointment goes a long way, especially for discretionary products.
Maersk adrift in oversupplied shipping sector 23 Oct 2015 Freight rates are collapsing faster than the Danish container shipping company can cut costs. The $34 bln group has lowered its earnings guidance for 2015 by 15 pct. Amid weak trade and overcapacity in the sector, even efficient operators like Maersk can’t fight the tide.
Thwarted Danish deal dials up risk for EU telcos 11 Sep 2015 Heat from Europe’s competition czar has scuppered a merger between TeliaSonera and Telenor. Unlike the commission’s attack on Google, the logic here looks sound. Yet with telecoms valuations high this year, a rebuff like this could dampen the buzz.
Novo Nordisk can stay on Glaxo’s level 27 Mar 2015 The Danish drugmaker’s shares jumped 10 pct on hopes of drug approval. That puts its market cap above $140 bln: firmly in pharma’s big league and now well above GlaxoSmithKline. Novo’s much higher earnings multiple is deserved, given its inventiveness and focus on diabetes.
Danish FX battle carries collateral damage risks 12 Feb 2015 Denmark’s latest tactic to curb its currency’s strength against the euro is a refusal to sell treasury bills. The central bank says lower market liquidity would be just a “cost of war.” Pension funds and banks might well find that it is the least of their worries.
Denmark’s currency peg can avoid Swiss fate 5 Feb 2015 Traders are testing Copenhagen’s determination to keep the crown tethered to the euro. In response, the central bank has cut rates and is amassing reserves. It sounds like Switzerland, which abruptly abandoned its franc cap in January. But history need not repeat itself.
Putin may find more appeal in Arctic than ex-USSR 27 Mar 2014 The eight-member Arctic Council meeting this week may only talk about environmental issues. But the region holds some $17 trln of energy resources. Canada, Denmark and Russia all claim much of it. And Putin has upped his country’s military presence. A storm may lie ahead.
Pricey Nets LBO gives banks big payment to process 24 Mar 2014 Advent and Bain are buying Nets, a card-payments firm, from nearly 200 Nordic lenders for $3.2 bln with a dividend. The rich 12.8 times EBITDA multiple reflects private equity’s hunger for “carve-outs.” But applying sector knowhow and commercial nous could lead to decent returns.
Lego clan beats Goldman in $1.5 bln ISS float 14 Mar 2014 An investment by the toymaker’s founding family helped cleaning giant ISS cut debt in 2012. At IPO this brought a 41 pct annual return. That beats the result for EQT and Goldman Sachs. They can just be glad to be out after over eight years of ownership and several failed exits.
Cleaned-up ISS is finally ready to go public 18 Feb 2014 A $1.5 bln-plus IPO would amend for previous failed sales and listings. The private equity-backed “facility services” firm is a tidier story today. Luckily it’s also springtime in the markets. The Danish group’s sheer scale is a management challenge, and it still has big debts.
Goldman shows commerce and governments don’t mix 30 Jan 2014 Danish politicians are angry the U.S. bank is lead investor in the recapitalisation of state-run Dong Energy. It shows that banks can’t be too commercial with government business. And Goldman’s reputation for always being on the better side of deals can backfire.
Investors remain too sweet on Novo Nordisk 31 Oct 2013 Danish diabetes-treatment giant Novo Nordisk suffered a rare earnings miss, and dropped its double-digit growth target. Generic competition and a cancer scare both hurt. Investors promptly erased 6 percent of Novo’s value. But they are still being generous.
Danske’s new broom commences timely deep clean 31 Oct 2013 The Danish bank’s capital, leadership and even advertising have been questioned of late. A new CEO is correct to focus on more cost cuts and throttling back in Ireland. Investors won’t like the hacking back of return goals, but will like signs that Danske is getting a grip.
Hybrids trapped by fickle agencies and firm issuers 11 Jun 2013 Investors are smarting after Dong Energy said it would redeem a hybrid bond below its market price because S&P decided the security was no longer equity. The episode has cost Dong too - and it faces punishment when it sells its next hybrid. This immature market has growing pains.
Carlsberg will struggle to close gap with rivals 18 Feb 2013 The Danish brewer has scrapped margin targets and given a lean profit outlook. Carlsberg binged less on M&A than rivals, but now looks awkwardly reliant on western Europe and Russia. A costly integration plan could narrow, but not close, the shares’ discount to peers.
Even after the knock, Novo Nordisk’s rating is fat 11 Feb 2013 The Danish drugmaker lost about $14 bln in market value after U.S. regulators held off approving a new insulin treatment. As the world grows obese, the diabetes specialist should profit handsomely. But the shares look rich, even after the 13 pct markdown.
ISS deal clears path towards fresh listing 16 Aug 2012 Previous attempts to sell or float the Danish cleaning giant flopped. Now two blue-chip investors are taking 500 mln euros of equity in a private deal. ISS will use the proceeds to get rid of costly junk bonds. That means any future listing becomes a smaller, simpler task.
Denmark is another costly refuge 21 Jun 2012 In search of a safe haven? Denmark ticks the boxes. The economy is strong and the krone isn’t the euro, but shadows it. Tempted investors should think hard. The central bank is against them and two-year yields are negative. Investors only win if Germany exits the euro.
Danish bank rescues highlight EU’s bail-in dilemma 26 Apr 2012 The country has forced two small lenders into mergers. It’s a shift from previous rescues, when senior creditors took a haircut. That should calm bondholders’ nerves about Danish bank paper. But it underlines the difficulties of pushing through a new resolution framework.
UK investors still on guard against hubris in M&A 1 Nov 2011 Britain’s worst shareholder revolt since Pru-AIA has nixed G4S’s $8 bln move into cleaning. The security group’s management couldn’t sell a strategic shift funded by a jumbo share issue. Failure sullies the record of CEO Nick Buckles. But he can probably keep his post.