Altice IPO asks cable investors to get bolder 7 Jan 2014 The cable and telecoms operator wants help to de-gear and then buy more assets. Good job Europe’s IPO market is hot, as is the sector. Owner and Chairman Patrick Drahi has a good track record. But an odd mix of businesses makes Altice a harder sell than rivals.
Uruguay’s weed spoils could get even higher 12 Dec 2013 The country is first to legalize marijuana trade, with production from co-ops, sales to locals only and prices fixed. Relaxing such restrictions, however, could really spark up the economy. The Dutch did well from cannabis tourism, but agribusiness could be the winner in Uruguay.
Ziggo has ways to put pressure on Liberty 12 Dec 2013 The Dutch cable firm is in bid talks with Liberty Global, already a big shareholder. Liberty is prudent and patient, and could seek creeping control via a low offer. But synergies would suffer. And there is value in moving quickly: brilliant debt markets won’t last forever.
BNP Paribas pays up for Polish promise 5 Dec 2013 The $1.4 bln deal for Rabobank’s retail business in Poland is what cross-border banking M&A looks like post-crisis. BNP is paying a premium to book value for a business with low returns. The French bank avoided a costly auction but needs synergies and growth to make the deal pay.
Dutch downgrade is a lagging indicator 29 Nov 2013 The Netherlands’ loss of triple-A status stems from weaker growth. The economy is recovering slowly from a housing bust that has pulverised household finances. But property prices are bottoming, debt is low and reform is underway. Other euro zone members are bigger worries.
Europe’s pay populism makes a useful distinction 27 Nov 2013 Swiss voters rejected broad salary limits for top executives. Yet the Dutch are plotting a banker bonus cap that makes existing EU curbs seem generous. The discrepancy is understandable. While pay shouldn’t be regulated, the taxpayer-rescued finance industry isn’t showing much restraint.
DSM’s pill deal oddly blends carve-out and LBO 19 Nov 2013 The world’s top vitamin maker is merging its drug-production arm with a private equity-backed rival. The unit was a subscale distraction. But the cost benefits of the $2.6 bln tie-up are hard to fathom. And DSM cedes control of the unit without cutting its economic exposure.
ING solves first of its two home-grown problems 6 Nov 2013 The Dutch bancassurer is on course to repay 2008 state bailout money with interest, and restructure itself sooner than others that overstretched themselves. But with its own government keener than most to bash banks, ING still faces more regulatory curveballs than European peers.
Conoco shows rivals splitting up is great to do 31 Oct 2013 The driller had a bumper Q3 thanks to hiving off refining and pipelines 18 months ago. Shares in Conoco and its two spinoffs have also bested its full-service brethren, despite similar overall performance. The benefit of a breakup is getting harder for Exxon and Shell to ignore.
Local difficulties dent Heineken’s world view 23 Oct 2013 The Dutch brewer has centred its strategy around owning one of the few global brands in beer. Yet disappointing quarterly results reveal country-specific problems in Russia and elsewhere. Management would do well to lavish more attention on local markets.
Philips can only go so far with cost-cutting 21 Oct 2013 The Dutch electronics group trebled Q3 profit after slashing costs. The shares are up 25 pct since June. Yet revenue growth was tepid. The biggest of Philips’ three businesses, healthcare, looks the most infirm. Peers have done better and Obamacare reforms could pile on the pain.
Carlos Slim dented, not defeated, in KPN tussle 16 Oct 2013 Facing a poison pill, the tycoon dropped a buyout bid for the Dutch telco. Slim has been clumsy, and his 30 pct stake in KPN has lost money. But this is a tactical retreat showing financial discipline. He can return later. For now this usefully frees up funds to spend elsewhere.
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.