Finland

Nokia CEO’s to-do list starts with spring clean

2 March 2020

The Finnish telecom-kit maker’s new boss Pekka Lundmark needs to hit the ground running. Improving the 19 bln euro firm’s profitability is the first step. That will help him navigate choppy waters between Washington and Beijing, and prepare for the next wave of software-based 5G.

Kone may hold trump card in Thyssenkrupp endgame

13 February 2020

The Finnish lift maker could waive a requirement for its 17 bln euro German elevator bid to hinge on the upshot of antitrust probes. Kone’s plan can fly if it sells any forced disposals to partner CVC. Either way, Thyssenkrupp will find it harder to reject its premium offer.

Uncle Sam’s 5G telecom fantasy is M&A nightmare

7 February 2020

Attorney General William Barr thinks the U.S. could buy Nokia or Ericsson to counter China’s Huawei. But making private firms do the state’s bidding is not how America works. Wrapping suppliers in the flag would also destroy value. Selling shareholders would be the only winners.

Nokia misses yawning Huawei open goal

24 October 2019

The phone-kit maker’s shares dropped by a fifth as it slashed profit forecasts and cancelled its dividend. Increased competition for 5G networks suggests its Chinese rival is cutting prices. But if Nokia can’t cash in on Donald Trump’s anti-China push, the future looks grim.

New Nordea CEO bets on predictable mediocrity

24 October 2019

A 1.3 bln euro charge for defunct IT systems and cost-cutting dragged the $30 bln Nordic lender to a third-quarter loss. New CEO Frank Vang-Jensen’s modest 10% return on equity target is hardly inspiring compared to more profitable rivals in the region. At least it’s achievable.

Some Uniper investors now more equal than others

8 October 2019

Finland’s Fortum is buying the 20.5% of the German utility held by activists Knight Vinke and Elliott for 2.3 bln euros. Pushing its own holding above 70% gives Fortum effective control. But it makes second-class citizens of Uniper shareholders that don’t get the same deal.

New Nordea boss faces déjà vu cost-cutting test

5 September 2019

The $25 billion Nordic bank is changing gears, replacing its CEO earlier than expected with Frank Vang-Jensen, who successfully slashed expenses at Swedish rival Handelsbanken. To meet its new financial targets and keep activist Cevian happy, Nordea will need the same treatment.

Lowball Nordic IT sale gives Apax a better exit

18 June 2019

The buyout firm accepted a lowly 1.3 bln euro cash-and-shares offer for Norwegian computer services firm Evry from Finnish rival Tieto. The measly 15% premium is less than half the value created by cost savings. Still, a 20% stake in the combined group should be easier to sell.

Huawei’s EU friends will stay on the line for now

30 May 2019

BT and Vodafone paused sales of some of the Chinese group’s phones after America put it on a blacklist. Yet Huawei equipment still pervades European telecom networks. Ripping it out now would be costly and disruptive. Better to wait and see whether the U.S. pressure persists.

Nordic $3.2 bln telco deal makes little sense

9 April 2019

Norway’s Telenor is buying a majority stake in Finland’s DNA and will offer to buy the rest for a total price tag of 2.8 bln euros. The financial returns of this odd move into a mature market will be so slim that CEO Sigve Brekke may do better by handing more cash to investors.

Nokia valuation lacks Huawei boost

31 January 2019

Like Sweden’s Ericsson, the Finnish telecom-kit maker will gain if the Chinese rival is shut out of more markets. Yet Nokia’s valuation is lower than for much of last year and CEO Rajeev Suri expects a so-so 2019. A European ban on Huawei would change that.

Cevian, Nordea dangle truce in bank activism feud

21 December 2018

Lenders and shareholder activists rarely gel. But the Nordic bank welcomed the Swedish fund’s 2.3 pct stake. Cevian’s proposals for cost cuts are less radical than, say, a breakup, but could push Nordea’s return on equity to 14 pct. Its surplus capital could be a sweetener.

Anta deal enters arena of extreme financial sports

13 December 2018

Instead of a straightforward acquisition, the Chinese company structured a $5.2 bln LBO of Finland’s Amer. Partners like Lululemon’s founder may help accelerate sales of workout apparel and Salomon skis, but hefty debt also implies a risky race for private equity-style returns.

Ericsson debacle exposes costs of anti-Huawei push

7 December 2018

The Swedish group’s glitchy software crashed some telecom networks. Yet it may grab market share, with its rival’s CFO under arrest and governments backing away from the Chinese company’s kit. A more concentrated market would mean higher prices and a risk of further big outages.

Anta deal would be a marathon not a sprint

19 November 2018

Tencent may join the Chinese sportswear company and others in their $5.3 bln approach for Salomon owner Amer. The price, plus initial hits to the margin and dividend, worry shareholders. And yet if Anta could replicate what it did with Fila, the acquisition might pay off in time.

Chinese $5 bln winter sports bid is hard to beat

11 September 2018

Fujian-based Anta has approached Finnish ski-wear maker Amer. The offer values the group at a hefty 17 times EBITDA. Anta’s need to fend off U.S. peers in its home turf suggests it will pay more than any rival. Still, the target’s share price suggests investors aren’t convinced.

EasyJet’s winning streak relies on rivals’ pain

15 May 2018

The UK airline reported its best ever first-half revenue and turned a pre-tax loss into a small profit after stripping out Berlin expansion costs. Problems that plagued Ryanair and Air France flattered the results. The 6.7 bln pound carrier could use a more reliable propellant.

Nordea is safer on edge of Swedish property frenzy

25 April 2018

Aggressive new entrants have taken a chunk out of the Swedish bank’s mortgage share with hyper-low rates. Nordea and big domestic peers will feel tempted to join in to protect market share. That would be a bad idea – even if Swedish property values weren’t already falling.

“Angry Birds” belongs in a bigger gaming henhouse

22 February 2018

Finland’s Rovio, maker of the addictive mobile game, lost half its market value after saying 2018 revenue would be flat at best. That’s what happens when a company puts all its eggs in one basket. Like “Candy Crush” maker King, a sale to a larger player may be the logical finale.

Fortum’s Uniper bid has bigger issues than Elliott

13 December 2017

Hedge funds including Paul Singer’s group want the Finnish energy company to pay more for its German peer. Appeasing them would weaken Fortum’s rationale for buying fossil fuel-heavy Uniper. The shift to clean energy and the lapse of generous Russian subsidies may destroy it.