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reality: it’s not about the barrels 1 Aug 2013 Disappointing results at the Anglo-Dutch energy giant partly reflect an outdated way of thinking.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.
KPN’s $5.4 bln cash call avoids breaking junk taboo 5 Feb 2013 The Dutch operator is the first European telco to ask shareholders for fresh funds in this cycle, with a colossal rights issue. A big spectrum bill, failed disposals, and tough competition left few options. Debt is cheap but losing investment-grade status remains a step too far.
Philips: a credible recovery story at a full price 29 Jan 2013 The Dutch electronics giant reported solid results and is selling its home entertainment unit. This represents the latest evidence of a successful overhaul. But after a sustained rally, the stock looks richly priced - despite the promise of a brighter future in lighting and healthcare.
Dutch headed for good old, 2008-style bank bailout 24 Jan 2013 SNS Reaal is running out of road to address big property loan losses. That gives the Dutch government a chance to try out its new bank intervention powers. These should help, but the Netherlands will struggle to achieve the holy grail of bailouts: one that wouldn’t punish taxpayers.
Europe brings the pain for UPS and TNT 14 Jan 2013 Competition watchdogs are barking again, after killing DB-NYSE last year. A likely EU veto has led the U.S. courier to drop a $7 bln bid for its Dutch peer. TNT’s stock is down 50 pct. If the group’s strategy since its demerger has been to get bought, it needs to think again.