Netherlands

Carlos Slim pays up for foothold in Europe

8 May 2012

The Mexican tycoon wants to boost his stake in KPN to 28 pct and offers a 23.5 percent premium in a $3 bln-plus deal. Investors in the ailing Dutch telecoms operator haven’t had such good news in a while. But Slim’s move is hard to read: KPN stock is cheap for good reasons.

Dutch government felled by austerity boomerang

23 Apr 2012

The country’s right-of-centre coalition has collapsed after failing to agree cuts that would reduce the deficit to the euro-wide target of 3 pct of GDP. A temporary budget may avert immediate crisis. But the splintering politics bodes ill for longer-term economic stability.

Activists land rare European win with TNT

19 Mar 2012

The Dutch courier’s $6.8 bln sale to UPS is a rare victory for activist investors after a lean patch in Europe. They are likely to score again with the $2 bln buyout of Britain’s Misys. Corporate stragglers: beware. Results like these will embolden troublemakers.

Ziggo should accept modest IPO price tag

15 Mar 2012

Europe’s new issues market is fragile, and the Dutch cable firm plans several share sales. Ziggo’s private-equity owners shouldn’t be too greedy first time round. A 3.4 bln euro equity value, just below the middle of the price range, should be enough to warm up cold IPO buyers.

ING victory may be game-changer for 2008 fall guys

2 Mar 2012

An EU court has found in favour of the Dutch bank in its battle against the European Commission over state aid penalties imposed after its 2008 bailout. That’s good for ING. But it could also ease the burden on other crisis casualties like RBS, Lloyds and Commerzbank.

Dutch houses are another euro zone drag

2 Mar 2012

Which country outside the euro zone periphery is in recession? It’s the Netherlands. A house price bubble is deflating. Tax deductibility for mortgages needs to go, but that’s another concern for consumers. The Dutch burst bubble is a troubling drag on euro zone growth.

Dutch cable IPO shouldn’t want for subscribers

29 Feb 2012

Ziggo dominates Dutch cable TV and generates lots of cash. That’s why the company, worth maybe 7.5 bln euros with debt, is a clear IPO candidate. The record of peer Kabel Deutschland helps too. But a decent discount may be required to re-open Europe’s fragile new-issues market.

UPS could be bidding against itself for TNT

22 Feb 2012

The huge available synergies mean the $73 bln U.S. parcel giant could sweeten its takeover offer for its Dutch rival. TNT shareholders are for now expecting at least 9 pct more. But with rivals FedEx and DHL inhibited in varying ways, they may not get the bidding war they’d like.

Shell pays up for a foothold in Mozambique gas

22 Feb 2012

The oil giant has offered $1.6 bln for gas explorer Cove Energy – a 70 pct premium but loose change for Shell. The assets are attractive and Shell has the know-how to exploit them. If Asian gas prices stay high and exploration projects deliver, the toppy price could be worth it.

UPS love letter validates TNT’s earlier break-up

19 Feb 2012

Long-term suitor UPS made a $6.4 bln proposal to the Dutch courier just before Valentine’s day. For now TNT is being rightly coy. And FedEx may yet disrupt the courtship. But clearly TNT’s break from dowdy domestic mail unit PostNL is achieving the desired effect.

Swiss private bank stress forcing consolidation

24 Nov 2011

The strong Swiss franc, tax deals and market turmoil are squeezing the industry. That’s prompted Dutch lender Rabobank to weigh bids for its 46 pct stake in Sarasin. Any buyer risks culture clash and customer loss. But the benefits of size may outweigh those of independence.

Air France-KLM will struggle to gain altitude

18 Oct 2011

The Franco-Dutch carrier is being squeezed on all sides. It has high costs, stiff competition and large debts. Market conditions are poor, too. Changes to the boardroom crew will help if they approach restructuring seriously. But investors are right to be sceptical.