Nordea is safer on edge of Swedish property frenzy 25 Apr 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 Feb 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 Dec 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 Dec 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 Oct 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 Oct 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 Sep 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 Sep 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 Sep 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 Sep 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 Jun 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.
Nokia’s sole consolation: it’s not Ericsson 2 Feb 2017 The Finnish networks firm reported gross margins above expectations, but revenue fell 13 pct after a telecom spending slowdown battered its stock. Nokia looks better placed than peer Ericsson. Still, the best it can do now is take a slightly larger slice of a shrinking pie.
Nokia’s new patents war dials up disappointment 22 Dec 2016 The Finnish group is countersuing Apple for patent abuse after antitrust accusations. Recent cost cuts have boosted Nokia's margins, but drawn-out lawsuits could hurt a business that is a third of operating profit. With network sales weak ahead of 5G adoption, it's a bad signal.
Greedy CEOs and lazy investors get Nobel treatment 10 Oct 2016 Economists Oliver Hart and Bengt Holmstrom shared the prize for their work on contracts. It helps explain why companies find it easier to borrow than raise equity, and why executive pay is so tricky. Those unfamiliar with abstract models will nonetheless recognise their ideas.
Terex turns controversial M&A fight into group hug 16 May 2016 The crane maker scrapped its merger with Finland’s Konecranes after new U.S. tax rules killed the deal’s logic. Konecranes is now just buying the ports business, the unit that raised security fears about a rival bid from China’s Zoomlion. It’s now free to buy the rest of Terex.
Nokia could spend a year on hold 10 May 2016 The Finnish telecoms group saw a 9 percent year-on-year drop in Q1 sales, in the first combined set of numbers since its 15.6 billion euro Alcatel-Lucent tie-up. Gross margin improved and synergies have been revised up. But slow mobile equipment sales remain a standout.
Ericsson’s Nokia-Alcatel fear rings in new changes 21 Apr 2016 The $30 bln Swedish mobile equipment maker is tinkering with its restructuring after a bad first-quarter miss. Ericsson promises no new savings, just higher costs for reorganisation this year. It looks desperate, but may help Ericsson square up to the newly merged Nokia-Alcatel.
France will labour to copy Finns’ reform progress 7 Mar 2016 The Nordic country is a step closer to shifting away from centralised wage bargaining. French efforts to do the same are running into problems. True, the Gallic economy hasn’t suffered as much as the Finnish one. But low union membership may be more to blame.
Finns seize the moment in $6.2 bln crane deal 11 Aug 2015 Finland’s crane maker Konecranes is joining forces with U.S. peer Terex in an all-share merger. The deal stacks up strategically, but the timing is opportunistic for Konecranes. Its shares are up 23 percent in a year, while much bigger Terex has lost 40 percent.