Qualcomm’s future stuck on slow boat to China 16 Apr 2018 The chipmaker’s strategy depends heavily on closing its $44 bln NXP deal. A possible trade war leaves Chinese regulators in no mood to approve the U.S. company’s purchase, though. Qualcomm does have one bright spot: its long-running spat with Apple may be coming to a head.
Review: America’s founding was all about the money 13 Apr 2018 “New World, Inc.” explores the role of British merchant adventurers in laying the groundwork for the colonial settlements in Virginia and Plymouth. The book is a prequel of sorts to the Pilgrim creation myth that suggests Mammon, not religious freedom, drove America's creation.
DSM has ingredients for long-term health 12 Apr 2018 Shares in the Dutch vitamin and chemicals group hit a record high after it reported strong first-quarter sales. A fire at German rival BASF’s plant cut supply, prompting a spike in vitamin E prices. A healthy underlying business shows the valuation boost needn’t be temporary.
Cerberus Alitalia carve-up would not fly with Rome 11 Apr 2018 The private equity firm is reported to be plotting a three-headed bid for the Italian airline. It would see easyJet take short-haul routes and Air France-KLM long ones, while Cerberus puts up the cash. But a breakup plan will not pass muster with a new nationalist government.
Dutch lawmakers give Ahold backup in activist spat 10 Apr 2018 Activist CIAM wants the supermarket to scrap its foundation that can be used to block takeovers. But with the Netherlands eyeing new laws to stymie hostile bidders, companies may not need these arcane tools much longer. Shareholders will suffer either way.
Unilever-FTSE standoff is test of index power 28 Mar 2018 The benchmark compiler must decide whether to keep the Marmite maker in the FTSE 100 after it opted for a Dutch head office. Recent tax changes and activist pressure may prompt similar rejigs at heavyweights Shell and BHP. The index may have to bend its rules to retain its clout.
Carlyle’s $12.6 bln Akzo deal has good chemistry 27 Mar 2018 The U.S. private equity group is buying a speciality chemical unit that the Dutch company put on the block after a failed PPG bid. Carlyle knows the industry and has slashed costs at Axalta. While there may be less scope for huge cuts this time, decent returns are still on offer.
Altice investors require a stomach of steel 16 Mar 2018 Patrick Drahi’s telecom group has lost half its market value in less than five months. Spinning off the U.S. arm is sensible. But the slimmed-down parent’s 31 billion euros of net debt is almost 15 times its implied equity value. That is a recipe for wild share price swings.
Unilever exit is double setback for London 15 Mar 2018 The Dove soap maker has picked Rotterdam as its global base in a corporate streamlining. Scrapping its Dutch trust office will help reassure investors that the move is not a takeover defence. However, the reshuffle may also rob the FTSE 100 index of one of its larger members.
ING pay fiasco confirms banking’s utility status 13 Mar 2018 The Dutch lender has withdrawn a 50 percent salary hike for its CEO following a public outcry. Political opprobrium stems from past state support for banks. The inevitable consequence is that bosses become glorified civil servants. Directors and shareholders take a back seat.
Shell investors could live with a BHP shale punt 9 Mar 2018 The Anglo-Dutch oil major may bid with Blackstone for the miner’s $10 bln U.S. shale assets, Sky says. The business would be less risky for Shell’s balance sheet than drilling for traditional oil. And private equity’s high return targets could reduce the danger of overpaying.
AB InBev is one step short of a strong footing 1 Mar 2018 The world’s top brewer served up better-than-expected EBITDA in the fourth quarter and a welcome chaser of volume growth. That will soothe investor worries that ruthless cost cuts are hurting sales. Now it needs to reverse falling market share in its most important U.S. market.
Vodafone-Liberty can appeal to Europe’s size envy 12 Feb 2018 The telco may buy some of John Malone’s European cable assets. European regulators blocked past telecom M&A, like Hutchison’s bid for O2. They might look more favourably on a deal that creates a viable rival to Deutsche Telekom and adds cross-border scale to a fragmented market.
Heineken’s number two status brings marginal costs 12 Feb 2018 The Dutch brewer is one of the few global groups still increasing beer volumes. However, acquisitions will weigh on operating margins in 2018. Heineken needs to invest in its new Brazilian brands to take on market leader AB Inbev. That limits the scope for boosting profitability.
Shell is flush enough to afford mistakes 1 Feb 2018 After negative free cash flow in 2016, the energy giant is back in the black. Shell can both comfortably pay shareholders and invest to ensure its survival after demand for oil peaks. The margin for error is welcome – it’s hard to predict how soon crude will fall out of favour.
Unilever success hinges on quick house-cleaning 1 Feb 2018 The Dove soap owner is on track to meet sales and profit targets that it set after rejecting Kraft Heinz’s $143 billion bid. Its next big tasks are to pick a new head office and the next CEO. Getting both out of the way quickly will allow the company to focus on taking on rivals.
Philips still waiting for valuation health-check 30 Jan 2018 The Dutch group has shed its consumer electronics legacy and now earns almost all its income from health technology. Low profitability means CEO Frans van Houten has yet to be rewarded with a valuation worthy of the sector. Full-year results for 2017 at least show he’s on track.
Unilever’s $47 bln Indian arm is real beauty spot 17 Jan 2018 India is set to become the consumer giant’s largest market by sales. Hindustan Unilever dominates sales of soap and is well positioned to fight off rivals. A multiple of almost 50 times forward earnings – more than twice its parent’s valuation – reflects that promise.
Drahi U-turn makes Altice’s problems easier to see 9 Jan 2018 Patrick Drahi is spinning off his cable group’s U.S. unit, raiding it for 900 million euros, and re-organising a struggling European business. The new structure will show whether he is doing enough to tackle slow growth, high debt, and a questionable content strategy.
Anti-euro debate rears its head in Italy 5 Jan 2018 Northern League leader Matteo Salvini has reiterated his opposition to the single currency. Growing Italian discontent with the EU could make an anti-euro stance a vote-winner in upcoming elections. Despite Europe’s economic revival, monetary union remains a political target.