CVC insiders’ delayed payday is still pretty sweet 22 Apr 2024 The soon-to-list buyout shop will bar employees from selling stakes for three years, and then only let them do so slowly. It helps get IPO investors on board, and suits bosses too. By the time they cash out, CVC should be worth a lot more than its 13 to 15 bln euro float price.
CVC may leave some money on the table – for once 15 Apr 2024 Valued in line with private-market peers EQT and Blackstone, the group could be worth 20 bln euros. Yet its IPO is raising little new money, and selling shareholders will keep big stakes. That gives CVC a reason to play it safe, unlike when it’s selling portfolio companies.
TikTok and Universal will stage reunion tour soon 5 Feb 2024 The music giant’s decision to yank its catalog off the social-media app hurts singers and bands more than either business. And yet mixing tunes, both new and old, with a powerful algorithm is harmonious. There are plenty of financial reasons for the duo to get back together.
CVC’s German perfume float may fail the smell test 15 Jan 2024 The buyout fund wants to list beauty retailer Douglas in Frankfurt, valuing its equity at roughly 7 bln euros. It’s time for CVC to offload an asset it’s held since 2015. But high debt and slower online sales than peers are reasons for investors to turn up their noses.
CVC may have guard rails against choppy IPO waters 20 Oct 2023 The European buyout firm is prepping a float valued at over 10 bln euros. Market jitters make it an odd time to do so. Yet securing a share-based M&A currency may matter as much as the IPO price, and the buyers could be sovereign funds that can live with post-listing price dips.
UK race to the bottom spreads to credit safeguards 19 May 2023 German property group Adler has managed to push a restructuring through London courts that violates normal principles of debtholder fairness. That might encourage other companies to follow suit. But as with watering down equity listing standards, it carries a cost.
Satellite M&A may just create more space debris 11 Apr 2023 Luxembourg-based SES is in talks about a possible $10 bln combination with US rival Intelsat. Both companies need scale and cost savings to compete with a new breed of giants like Elon Musk’s SpaceX. But they also risk doubling down on slower-growing parts of the market.
Adler gifts German watchdog a shot at redemption 4 May 2022 BaFin’s probe into the property group has gained added weight after KPMG’s refusal to approve its 2021 accounts. The mess is an important test for new boss Mark Branson after the regulator’s Wirecard failings. Adler’s patchy disclosure and shaky governance make it an easy target.
Spotify sings out of tune on earnings, governance 28 Feb 2018 The streaming-music firm cued up a poor playlist of falling revenue growth and rising costs in its filing to go public. And refusing to call insiders’ extra voting rights a class of stock sounds like bad karaoke. Spotify’s performance doesn’t deserve a round of applause.
Italy’s web tax is wrong solution to real problem 21 Dec 2017 Parliament is backing a 3 pct levy on web transactions to grab more from global U.S. tech titans. The digital economy requires new tax thinking. But an EU-wide approach would carry more force. And low projected revenue doesn’t justify the added burden on domestic internet firms.
Legend spins Silk Road yarn for Europe bank deal 4 Sep 2017 The firm behind Lenovo will pay $1.8 bln for Luxembourg’s BIL. That highlights corporate China’s continued appetite for foreign finance, even amid an M&A crackdown. Tying the deal to Beijing’s overseas goals may be politically astute, but will in reality be a bit of a stretch.
SoftBank satellite bid orbits optimistic creditors 28 Feb 2017 The Japanese telecom group wants to merge its OneWeb startup with industry titan Intelsat. A combination depends on bondholders accepting haircuts on much of the $14 bln in debt. There's a juicy quid pro quo: long-term backing from Masayoshi Son’s giant tech fund.
Europe’s lock on hostile M&A faces rare exception 14 Oct 2016 Frankfurt-listed construction group Braas Monier is under siege from U.S. rival Standard Industries. The offered 12 pct premium looks stingy, and hostile takeovers in Europe rarely succeed. Yet by targeting a Luxembourg-based group, the family-owned bidder may have a workaround.
Paris emerges as enemy of M&A mediocrity 5 Oct 2016 France's market watchdog has blocked an all-share buyout offer for French telecom group SFR by majority shareholder Altice. Why is a mystery. But the low-ball offer was cheeky. It was not a must-have for either side.
Arcelor does more than needed, less than enough 5 Feb 2016 After a $7.9 bln net loss for 2015 and big writedowns, the steelmaker has launched a $3 bln rights issue. It buys time for a cost-cutting programme, but ArcelorMittal’s real issue is outside its control: the aggressive supply tactics of Chinese steelmakers and Australian miners.
Starbucks and Fiat dragged along in fair tax tide 21 Oct 2015 The European Commission’s classification of corporate tax favours as unfair state aid makes sense, even if the two companies broke no laws. Corporate treasurers should note the trend. Following bank tax secrecy, corporate tax havens are very gradually heading for extinction.
Aggressive tax planning is retreating, not beaten 7 Nov 2014 The details of Luxembourg’s “comfort letters” will add to the pressure on companies which push profits into low-tax jurisdictions. Personal tax havens are also looking much less safe. But national arbitrage will continue as long as countries have different tax rates and rules.
EU can move forward after unneeded Juncker drama 27 Jun 2014 The UK-created conflict on the appointment of the former Luxembourg PM as European Council president is coming to an end. Europe’s leaders now have to sort out the somewhat confusing British demands for change. Once that is done, there will be room for compromise.
EU shows tax dodging is a government business 12 Jun 2014 Brussels will probe three member states for their favourable tax rulings on multinationals. It alleges the decisions might have amounted to illegal state aid. That is a clever way to clamp down on tax evasion – by acknowledging that governments are aiding and abetting.
Satellite IPO launches risk tolerance into orbit 9 Apr 2013 Intelsat is seeking a valuation on a par with listed rivals for equity worth $2.4 bln. However, the company, backed by BC Partners and Silver Lake, carries over $15 bln of debt. Growth also has been slow. If investors are ready to buy, it suggests confidence is heading sky-high.