Netherlands

Ziggo’s best defence against Malone is the market

16 Oct 2013

The $8 bln Dutch cable company has rebuffed an “inadequate” approach from John Malone’s Liberty Global. But the cable tycoon has already opportunistically bagged 29 pct of Ziggo, so a white knight defence is out. It’s up to the market to bid up the shares against him.

Doubling down on Alitalia bad idea for Air France

3 Oct 2013

After having burnt 1.1 billion euros since its 2009 “fresh start”, the loss-making Italian carrier is once again close to the brink. It is trying to convince Air France-KLM to add to its 25 percent stake. The French group isn’t overly excited at the prospect - for good reasons.

Unilever’s emerging weakness is a strategic hazard

1 Oct 2013

The Anglo-Dutch consumer products outfit is suffering from slower growth in the developing world. Brazil and India are tricky and currency swings are hurting too. Unilever has to be wary of complacency. But its broad plan, to run hard at faster-growing markets, remains right.

Carlos Slim can pay more for KPN

11 Sep 2013

Absent a friendly deal, a poison pill is likely to stop Slim’s America Movil buying the rest of KPN. That would hurt the tycoon’s existing investment in the Dutch telco and slow his push into Europe. Slim’s 7.2 bln euro offer is cheap. He can justify upping it by 13 pct, at least.

KPN poison pill is odious but tactically useful

30 Aug 2013

A stakeholder foundation has blocked America Movil’s planned bid for the Dutch telco, before a hard offer has been made. That’s not the free market way. But the no could just possibly lead to an agreed deal – if Movil lifts its 7.2 bln euro proposal, and KPN responds sensibly.

Dull Dutch economy is euro zone’s newest drag

15 Aug 2013

Triple-A rated Netherlands is starting to stand out, in a bad way. The 0.2 pct GDP fall in the second quarter provided an unhealthy reminder of the slow recovery from a housing boom and bust. The country is fundamentally sound, but there’s more pain to come.

Carlos Slim offers escape route to KPN investors

9 Aug 2013

America Movil, controlled by the Mexican mogul, intends to offer 7.2 bln euros to buy out the 70 pct of the Dutch telco it doesn’t own. Shares in KPN jumped to price in a deliverable deal. KPN could push Slim higher. But with all the doubts, investors who can take profits should.

Shell faces reality: it’s not about the barrels

1 Aug 2013

Disappointing results at the Anglo-Dutch energy giant partly reflect an outdated way of thinking. Oil majors have long obsessed simultaneously over reserve replacement, production growth and profit. Shell’s decision to ditch medium-term production targets shows it’s wising up.

Carlos Slim needs more than pique to stop KPN

24 Jul 2013

The biggest investor in the Dutch telco has failed to bless its $11 bln German selloff. That’s awkward. Whether strategic or financial, the depth of the Mexican mogul’s misgivings is unclear. Still, blocking the sale would be hard unless Slim can offer a sound alternative deal.

KPN’s 8.1 bln euro German retreat is at full value

23 Jul 2013

Telefonica of Spain is buying the Dutch group’s German unit, E-Plus, in a cash and shares deal equating to 9 times EBITDA. That is a big multiple by the depressed standards of European mobile. KPN is getting a large slice of the deal’s hefty synergies.

Linking German arms of Telefonica and KPN is sound

22 Jul 2013

Merging the German units of the Spanish and Dutch mobile giants would create a 16 bln euro business, yielding 4 bln euros of synergies. The market is tough, a spectrum auction looms, and neither parent is financially strong. Provided Brussels isn’t too harsh, it makes good sense.

New Shell CEO has right skills for tough times

9 Jul 2013

The best CEOs combine charisma and vision with operational nous. Ben van Beurden’s CV suggests he’ll work more on efficiency gains than corporate re-imagining. That suits a huge company in today’s resource industry, where reliability is crucial and mega-projects are the norm.

How lucky SNS wasn’t based in Nicosia

6 Jun 2013

The Dutch bank has at last released its 2012 results, months after it was nationalised. Had SNS been headquarted in Cyprus, its hideous property losses might have warranted a depositor haircut. Bail-in’s champion, Jeroen Dijsselbloem, was much less gung-ho in his own back yard.

KPN rights issue is just start of fightback

25 Apr 2013

The Dutch telco is asking shareholders for 3 bln euros of fresh funds. A sizeable 35 percent discount is justified by the deal’s size. KPN is moving decisively to shore up its balance sheet. But it still cannot breathe easily: brutal competition will continue at home and abroad.

Thai tycoon rediscovers joy of debt in $6.6 bln bid

23 Apr 2013

Fresh from the leveraged purchase of a stake in insurer Ping An, Dhanin Chearavanont is borrowing $6 billion to buy cash-and-carry group Siam Makro. For Thailand’s richest man, a combination with his convenience stores makes sense – as long as Asia’s boom keeps the cash flowing.

Bart Becht’s $10 bln coffee run has dash of Buffett

12 Apr 2013

The former Reckitt chief is leading a buyout of D.E Master Blenders 1753, the Douwe Egberts coffee house. The hot drinks world should get a jolt. Like Warren Buffett’s recent mega-bid for Heinz, this deal mixes consumer goods, cheap debt and billionaire backers.

Malone swoop frees Barclays but traps Ziggo

28 Mar 2013

Liberty Global has a paper profit of over 40 mln euros after buying 13 pct of Dutch cable company Ziggo from Barclays. It’s typically shrewd of Liberty owner John Malone - Barclays was desperate following a botched share sale. But Ziggo shareholders should have mixed feelings.

Brotherhood faceoff with Sawiris is bad for Egypt

11 Mar 2013

The country’s Islamist rulers have escalated a tax probe on billionaire Nassef Sawiris as he seeks to shift his construction group’s primary listing to Amsterdam. A fight between Egypt and its top entrepreneurial family is the last thing the country needs now.

Carlos Slim takes least-worst option at KPN

20 Feb 2013

The Mexican mogul has belatedly agreed to help the Dutch telco raise 4 bln euros of capital. Slim’s near-28 pct stake is way out of the money. But the alternatives to raising the losing bet were even uglier: a quixotic full bid; heavy dilution; or leaving KPN over-levered.

Dutch bank expropriation ties CDS in knots

12 Feb 2013

The subordinated bondholders of SNS Bank who used credit derivatives as a hedge may be denied a payout after the lender’s nationalisation. It’s not the first time the crisis has shown CDS language to be lacking. Governments’ unpredictability doesn’t help.