Finland

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.

Elliott’s usual playbook is unsuited to Uniper

6 December 2017

Paul Singer’s activist fund has a 5.3 percent stake in the German energy group that is being targeted by Finland’s Fortum. Unusually, the buyer may be willing to live with less than full ownership for a while. That could reduce the scope for Elliott to hold the bidder to ransom.

Nokia joins Ericsson in Nordic doldrums

26 October 2017

The Finnish telecoms-kit maker’s shares slumped 15 pct after poor third-quarter results. They are trading at a discount to Ericsson’s stock despite improving margins. A warning on weak demand for its mobile-networks products shows tough market conditions trump good management.

New Ericsson chair half-solves governance problems

9 October 2017

Ronnie Leten had a successful eight-year run at Atlas Copco. His arrival as chairman of the embattled Swedish telecom group will help make up for the CEO’s relative lack of experience. But both men’s links to long-term shareholder Investor AB make a radical overhaul less likely.

Uniper bid lacks spark for all bar E.ON

20 September 2017

Finnish utility Fortum’s plan to buy its German rival for 8 billion euros may create more losers than winners. Uniper's top shareholder E.ON has reasons to accept a 4.5 percent premium but its other investors will rightly grumble. Nor does the deal make much sense for the bidder.

“Angry Birds” may struggle to float on thin air

15 September 2017

Rovio, known for the popular mobile game, plans to list with a value up to 900 mln euros. Though the price is more sensible than initial reports, it’s still flighty for a one-game franchise. Another warning sign is that many existing investors are using the offering to fly off.

Nordea shows governments who rules the roost

6 September 2017

The Swedish bank is moving to Finland. The move will save $1.3 bln and lower capital charges, but the real winner is Europe’s regulator, which was the main draw. It’s a tangible demonstration that banks and investors want common rules, and a warning to governments that go it alone.

“Angry Birds” maker preps dubious market catapult

6 September 2017

Rovio, known for the popular mobile game, is planning a Helsinki IPO. At a mooted $2 bln valuation it would struggle to defy gravity, as investors are effectively betting on one franchise. Like peers King and Supercell, the more logical end-point may be a sale to a larger group.

Finnish-German utility would make odd couple

1 June 2017

Shares in Uniper jumped on a report that Finland’s Fortum is considering buying E.ON’s 47 pct stake in the 6.3 bln euro power group. Yet Uniper’s big carbon footprint would tarnish the Finns’ clean energy strategy, and its lackluster earnings make the financial logic a stretch.

Nokia-Apple spat lays bare tech law of the jungle

23 May 2017

The two groups settled a patent row with a deal that includes the U.S. giant buying extra kit, and selling Nokia products in Apple stores. Patent wars may appear to be about legal rights and wrongs. They’re really just a fight over who gets what share of the value chain.