Big cost cuts strengthen case for Fnac-Darty deal 26 Oct 2015 French retailer Fnac probably will have to improve its 800 mln euro offer to win its bid for homeware specialist Darty. The bidder’s estimate that the merged company will secure 85 mln euros of annual cost savings suggests a takeover is worth doing at a higher price.
Publicis a great advert for media-sector anxieties 22 Oct 2015 The French ad giant’s shares dropped more than 9 pct after cutting full-year guidance on organic growth. Publicis says some clients are reducing ad spend in the U.S. Yet rivals are doing better. With an uncertain media outlook, investors have little tolerance for underperformers.
Hugo Dixon: European populism can be tamed 12 Oct 2015 Demagogic movements of the left and right have gained traction in most European Union countries in recent years. A mixture of competence, fairness and leadership can combat them. There are signs that the fightback is succeeding.
Bollore’s TI stake hike hints at true intentions 7 Oct 2015 The French corporate raider has increased his stake in the Italian telco to 20 pct. His recent purchases could be a defensive move to avoid dilution, or to profit from cross-border consolidation. But it could also be part of a more activist plan to shake up Italian pay-TV.
Air France staff can beat bosses but not reality 6 Oct 2015 The assault on the troubled national airline’s HR director isn’t the first French use of unconventional negotiating techniques. It’s not totally irrational, as the government often yields to direct action. But with its swollen cost base, Air France can’t afford to be cowed.
Darty may squeeze more from French suitor 1 Oct 2015 The electricals retailer is mulling a merger with French rival Fnac. Darty would get 45 pct of the merged group, ease its strained balance sheet and enjoy some cost savings. Even though 14 pct shareholder Knight Vinke supports the plan, there’s room for improvement on price.
Hollande risks political hara-kiri for French good 29 Sep 2015 France’s Socialist government is trying to push through the sort of spending cuts and regulatory reforms which have eluded centre-right predecessors in the past. President Francois Hollande may have to wait for posterity to thank him. Today’s voters probably won’t.
Deezer’s IPO strikes a discordant note 22 Sep 2015 The music streaming service is to list in Paris, possibly at a valuation of 1 bln euros. Deezer is profitable in France and has big music labels as shareholders. But it doesn’t make money in its 180 other markets, and mixed trends in subscriber numbers could turn off investors.
French central bank spat shows Hollande’s tin ear 18 Sep 2015 ECB policymaker Benoit Coeuré has an issue with the way top jobs are filled in his native France. He missed out on heading the national central bank. But his critique is spot on. President Francois Hollande could have easily avoided the conflict brewing over this nomination.
Dolan family’s bet against dumb pipes a no-brainer 17 Sep 2015 Selling Cablevision to Altice leaves the clan with Madison Square Garden and choice content like “Breaking Bad” and the New York Knicks. The move to make the cable holdings separate years ago looks smart. Dumping them as more viewers buy programming à la carte seems even smarter.
Altice keeps powder dry in $18 bln Cablevision bid 17 Sep 2015 Patrick Drahi’s telecoms group is buying its second U.S. cable operator to become the fourth-largest player. The valuation looks high but savings will help. Importantly, Altice isn’t contributing much cash. Possible co-investment with private equity could reduce costs further.
Breakdown: Migrant crisis reshapes Europe politics 8 Sep 2015 The number of people flooding into the continent is only a small part of the story. More worrying: old political anxieties are being rekindled. While migration won’t immediately affect economic issues like Greece’s bailout or the euro, it could jeopardise European cohesion.
LVMH’s bite out of Apple is digital coming-of-age 2 Sep 2015 The French luxury group has poached a top Apple music executive to head its online operations. It’s a significant move in a sector that has been wary of the net. It also cranks up the heat on the sector’s e-commerce leader Burberry and recently merged Yoox/Net-a-Porter.
Hermes shows real luxury is a scarce asset 28 Aug 2015 Despite quadrupling sales in 10 years, the French group has kept supply below demand better than listed rivals. An operating profit margin of almost 33 percent has helped it dismiss sector woes with a Gallic shrug. The 50 percent premium to peers looks steep but justified.
French housing weakness builds up trouble 17 Aug 2015 Gallic households are hardy consumers but poor investors. Reluctance to buy new housing – which counts as investment, unlike purchases of old homes – is offsetting a recovery in business spending. With demographics partly to blame, such weakness will continue to hold back growth.
Review: Euro was the path of least embarrassment 14 Aug 2015 Valerie Caton’s history of French policy around the single currency could be read as a chronicle of meetings, position papers and fuzzy compromises. It is better to see a tale of European leaders grudgingly living up to their historic destiny. More of that, and the euro can survive.
SocGen adds caution to racy business mix 5 Aug 2015 A bumper second quarter in equities trading pushed earnings at France’s second-largest listed bank above estimates. But SocGen is also cutting 850 mln euros of costs and boosting capital. It should make investors more relaxed about a heady focus on Russia and investment banking.
Credit Agricole gets nasty reminder of ECB’s teeth 4 Aug 2015 The French bank’s shares slumped 9 pct after it cited Frankfurt’s opposition to a planned structural rejig. While peer BPCE enacted a similar overhaul in 2013, that predates the ECB’s new supervisory remit. Credit Agricole could have done with being less presumptuous.
BNP Paribas’ M&A machine spits out growth and risk 31 Jul 2015 France’s top bank by assets cranked out resurgent second-quarter earnings of 2.6 bln euros. Three takeovers in 2014 are delivering results. Yet dealmaking sprawl has tripped up rivals in the past. It might be a good time for the Belgian state to trim its 10 pct stake.
Carrefour suggests Tesco can retain global goals 31 Jul 2015 The French retailer is performing better in Latin America and Asia than at home, while its similarly sized UK rival might sell foreign assets to relieve balance-sheet strain. But if Tesco can live with the debt, it might be emboldened by Carrefour’s global shopping experience.