Irish mogul fails to connect with IPO investors 7 Oct 2015 Denis O’Brien has shelved plans for a $2 billion listing of Digicel, his Caribbean telco. Markets haven’t treated recent IPOs kindly. But Digicel’s undemocratic voting structure, high debt and exposure to the Haitian gourde required an especially strong stomach.
Chinese plane-hire deal survives market turbulence 4 Sep 2015 Bohai Leasing’s $2.6 bln bid for Dublin-based Avolon confirms China’s desire to grow in aircraft rental. The $31-a-share offer is slightly below Bohai’s indicative bid a month ago. But rising interest rates and the falling yuan could have been reasons to drive a harder bargain.
Gamblers’ $8 bln tie-up raises odds for rivals 26 Aug 2015 Paddy Power and Betfair have agreed to a possible all-share merger. The two look evenly balanced: the Irish group is big in traditional betting, its UK peer in online exchanges. Greater scale should offer some defence against industry consolidation and rising taxes.
Shire can’t easily pay more for Baxalta 14 Aug 2015 The pharma group’s all-stock $75 bln merger approach has been rejected by its rival. Shire’s bid relies on aggressive claims to boost revenue, which Baxalta disputes. Breakingviews’ model shows Shire chief Flemming Ornskov can’t dig much deeper without bold assumptions.
Shire M&A machine stumbles on $30 bln Baxalta bid 4 Aug 2015 The onetime Irish target for AbbVie is planning a mega-deal of its own. Unlike the previous combination, Shire’s Baxalta purchase has industrial logic as well as tax benefits. Shareholders, though, might have preferred being bought out to assuming all the risks of a takeover.
Latest pharma roll-up leaves lots of room to grow 7 Jul 2015 Horizon’s $1.75 bln unsolicited offer for U.S. rival Depomed continues the sector’s M&A rave fueled by tax savings and cost cuts. The Irish bidder is a recent entrant on the scene, so its low debt load and small size means it can easily expand. That portends more deals ahead.
Amazingly, Irish homebuilder float looks a hit 9 Jun 2015 Ireland may be the real estate basket case of Europe, but a Dublin-based housebuilder is planning a London float. With most of its competitors bankrupt, strong demographics driving demand and prices in the Irish capital up 22 pct last year, Cairn Homes could be on to a winner.
BA owner flies in no-frills bid for Aer Lingus 27 May 2015 The Irish government has backed British Airways’ parent in its 1.4 bln euro offer for Aer Lingus. The 40 pct premium is less generous than it looks, given the wider rise in airline shares. Key shareholder Ryanair could push for more, but other investors shouldn’t bank on it.
Ryanair can afford to delay long-haul take-off 23 Mar 2015 Europe’s top no-frills carrier has confused investors with ambiguous statements about its intentions toward the transatlantic market. It’s easy to see why Ryanair might be in two minds. One problem is a lack of planes. And “low-cost long-haul” is a model full of contradictions.
AbbVie CEO may have overpaid again in $21 bln deal 5 Mar 2015 Richard Gonzalez, the pharma firm’s boss, shelled out $1.6 bln last year to get out of a hard-won bid for Shire. Now he has come out on top in an intensely competitive biotech auction. AbbVie may get a blockbuster drug, but at a high cost: It must share profits with rival J&J.
CRH’s $7.4 bln buy reveals M&A tolerance 2 Feb 2015 It’s a big bet. The Irish building group will increase leverage – even with a big equity issue – to buy surplus assets from Lafarge worth a third of its market cap. CRH got sucked into an auction too. Yet investors cheered. It’s how things work in a low-return, low-growth world.
Ryanair finds it harder to get “always better” 2 Feb 2015 Europe’s largest low-cost carrier upped its fiscal-year forecast again, eyeing a 60 pct net profit jump. But sober days lie ahead. Hedges limit the impact of lower oil prices. Other costs will rise. After gaining nearly 50 pct lately, the richly valued stock looks vulnerable.
BA owner’s new pitch to Aer Lingus is nearly there 26 Jan 2015 British Airways owner IAG lifted its bid proposal by another 6 pct to 1.4 bln euros. It’s still not generous. But given the conditions Ireland is likely to impose, which will limit the value of Heathrow slots, this might be enough for the Irish carrier’s board to start talking.
IAG can pay more for Aer Lingus 12 Jan 2015 The UK airline’s sweetened 1.3 bln euro offer for the Irish national carrier is still too low. The price covers the value of the target’s fleet, its Heathrow slots and net cash. But the modest 32 pct premium ascribes little worth to Aer Lingus’ growing operating business.
Aer Lingus attractive yet tricky target for IAG 18 Dec 2014 The Irish carrier has rebuffed an approach by the owner of British Airways. At the right price, Aer Lingus looks like a natural partner for IAG. But its unwieldy shareholder structure – including a large holding by Ryanair – and anti-trust concerns will be obstacles.
Ryanair can get more from its be-nice strategy 3 Nov 2014 A policy to improve customer service helped stimulate demand at Europe’s largest low-cost carrier, prompting raised guidance. Ryanair has also benefitted from rivals’ woes. Historically strained labour relations are a risk. But the airline could try a new approach here too.
Chiquita inversion slips on cash appeal 27 Oct 2014 The banana company’s shareholders voted down a stock deal to acquire Irish produce distributor Fyffes, a decision that now points to a sale to Brazilian buyers. Ailing arbs, a crackdown on tax-driven M&A and economic ructions didn’t help. The path of least uncertainty wins again.
Two useful AbbVie inversions to pay for failed one 20 Oct 2014 Turning tail on the $54 bln Shire deal exposes the U.S. drugmaker’s folly chasing a lower tax bill. Investors facing a $1.6 bln break fee should push for other AbbVie flips: boss Richard Gonzalez’s compensation and the company’s governance in the form of an independent chairman.
Three cheers for the end of the Double Irish 14 Oct 2014 Dublin is to annul one of the tech sector’s favourite tax ruses. The Double Irish was a distortion that allowed companies to discount entirely the costs of intellectual property. Even if Apple, Facebook et al gripe now, the simplification should ultimately benefit all companies.
Governments are real targets in Apple’s tax case 30 Sep 2014 The European Commission thinks that the iPhone maker has received preferential treatment from the Irish government. Both Apple and Dublin beg to differ. At least Brussels has put member governments on notice that tax leniency could amount to state aid.