Viewsroom: Big Oil’s global blow 27 May 2021 A small activist fund upended Exxon Mobil’s board while Shell was dealt a setback in a Dutch courtroom. At the same time, Chevron shareholders backed a proposal to cut more emissions. The interests of both stakeholders and shareholders are rapidly aligning in fossil fuels.
Dutch court hands Shell chairman shakeup stick 26 May 2021 A Hague judge has told the oil giant to toughen up its targets for cutting carbon emissions. Besides appealing, Shell could try to dodge the ruling by moving its headquarters. Alternatively, new chair Andrew Mackenzie could shunt the group in the direction of rivals BP and Total.
Naspers goes all-in to crush South Africa discount 12 May 2021 The $100 bln internet group will swap shares with Dutch offshoot Prosus, removing some pressure on its stock. The resulting cross-shareholding is as far as CEO Bob van Dijk can go. Shrinking Prosus’ persistent shortfall to its $212 bln stake in China’s Tencent is a harder task.
KPN LBO looks doomed by arithmetic, nationalism 3 May 2021 The 12 bln euro Dutch phone company flatly rejected takeover approaches by buyout shops EQT and KKR, smacking its share price. Paying more would curb so-so prospective returns. Overcoming potential Dutch government resistance to a debt-laden bid is another challenge entirely.
Total is least-bad pick for confused oil investors 29 Apr 2021 First-quarter results show the French group and rivals BP and Royal Dutch Shell rebounding from last year’s woes. Yet BP’s turn to wind and solar may be too sharp and Shell’s too relaxed. For now, Total’s balanced green ambition and fat dividend look more appealing.
Naspers remains strapped to Tencent roller coaster 8 Apr 2021 Selling a $14.6 bln stake in the Chinese internet giant restocks the South African group’s war chest. But its residual $220 bln shareholding towers over other investments. The best hope for investors is that Naspers finds a way to shrink its weighting on the Johannesburg bourse.
Air France-KLM’s latest rescue tests marriage bond 6 Apr 2021 The European carrier is swapping a loan from the French state for hybrid equity and raising 1 bln euros from investors. The capital rejig should help it stay aloft if the recovery is delayed. But Paris’ increased stake will strain its already tricky relationship with the Dutch.
Naspers can tackle one-third of Tencent problem 19 Mar 2021 Despite listing a Dutch subsidiary in 2019, the South African company still trades at a big discount to its $239 bln stake in the Chinese internet giant. Its inability and unwillingness to sell are enduring factors. An outsize weight on the Johannesburg bourse is easier to fix.
JDE Peet’s spilt milk has lessons for IPO hopefuls 9 Mar 2021 Shares in the $19 bln JAB-backed coffee group dived after weak 2021 guidance. Rivals Illy and Unilever, which may spin off its tea arm, will shudder at the L’OR maker trading below its May IPO. More marketing spends and premium drinks could set them apart in any future listings.
Carlos Slim’s KPN cash call includes buyout cover 24 Feb 2021 The Mexican mogul raised 2.1 bln euros from negative-yield bonds that can flip into a 16% stake in the Dutch telecom operator. If KPN treads water, Slim can keep his stock and repay less than he borrowed. If it’s snapped up by a predator, he still gets some of the upside.
Shell’s new plan tests investors’ green resolve 11 Feb 2021 The Anglo-Dutch group’s decarbonisation strategy will see it stay big in oil longer than BP. European investors now have a choice between Shell’s walking pace and its rival’s handbrake turn into wind and solar. It could become a gauge of how seriously investors take green issues.
Europe’s payments king faces fight to keep throne 10 Feb 2021 Netherlands-based Adyen is one of the region’s few successful listed fintechs, giving it scarcity appeal. Its reliance on large customers like Facebook could one day be a problem, and competition in the bloc is hotting up. A rich $76 bln valuation leaves little room for error.
Europe’s chip darling may fall victim to its hype 20 Jan 2021 ASML’s market value has risen by two-thirds in the past year to $230 bln, helped by surging demand for its kit. Yet CEO Peter Wennink will struggle to meet investors’ heady growth hopes. A drawn-out trade war between China and America would make his job even harder.
Akzo’s Finnish paint splurge is no Rembrandt 18 Jan 2021 The European chemicals group bid $1.7 bln for Helsinki-based Tikkurila, trumping an offer from PPG. It comes just three years after the firm led by Thierry Vanlancker fended off a takeover by its U.S. rival. Whoever wins this fight will struggle to gloss over the hefty price tag.
Philips’ cardiac deal carries heart-stopping price 18 Dec 2020 CEO Frans van Houten agreed to buy U.S. group BioTelemetry for $2.8 bln including debt. It’s wise to push further into “telehealth”, where doctors treat and monitor patients remotely rather than in hospital. But the valuation he’s paying will make it hard to earn a good return.
Drahi’s hedge fund spat ends in acceptable defeat 16 Dec 2020 The telecoms mogul raised his lowball offer to buy out shareholders in his group Altice to 6.4 bln euros. That has won support from activists including Elliott, avoiding a legal tussle. Still, a final valuation below some peers suggests the gambit has partially succeeded.
Del Vecchio channels Arnault spirit on eyewear bid 10 Dec 2020 Like the LVMH founder, the Ray-Ban billionaire is suffering from buyer’s remorse. His EssilorLuxottica may rethink its pre-pandemic 7 bln euro bid for GrandVision. The glasses retailer won’t easily find another buyer. As with Tiffany, a lower price is the most likely outcome.
Activists shove Unibail towards chastening Plan B 10 Nov 2020 French mogul Xavier Niel blocked the mall owner’s planned $4 bln rights issue. That’s embarrassing enough for Unibail boss Christophe Cuvillier. But the only realistic way to fix the balance sheet holes from the Westfield acquisition he masterminded is to sell valued U.S. assets.
European rivals give SocGen a lesson in efficiency 5 Nov 2020 Like the French bank, ING and UniCredit saw third-quarter net profit fall due to reduced revenue and more bad debt. Low interest rates will keep squeezing income. That puts SocGen, whose costs ate up 75% of its top line this year, at a disadvantage to its Dutch and Italian peers.
Naspers finds one bargain internet stock: its own 30 Oct 2020 The $82 bln South African group and its Amsterdam-listed offshoot have lagged behind a surge in big technology stocks this year. A $5 bln buyback highlights the discount to its stake in China’s Tencent and shows it won’t chase overpriced deals. Other investors should take notice.