Akzo is emblem for new “fortress Europe” 1 Jun 2017 The Dutch maker of Dulux paint thwarted a generous 25 bln euro takeover attempt from U.S. rival PPG without putting forward a convincing financial defence. As European governments reach for more power to fend off unwanted mergers, Akzo has shown how shareholders can lose out.
Shareholders are best judges of PPG’s Akzo bid 30 May 2017 A Dutch court threw out activist Elliott’s attempt to force talks between the paint maker and U.S. suitor PPG. That still leaves the other option: for PPG to appeal directly to shareholders. The 25 bln euro price looks attractive, and there is little downside in going hostile.
Moody’s pays A-level price for B-scale acquisition 15 May 2017 At $3.3 bln, the credit-rating agency is paying a whopping 21 times EBITDA for financial-data publisher Bureau van Dijk. It broadens the portfolio, but both the cost savings and potential revenue uplift are small. At least Moody’s has a plan to keep its own balance sheet intact.
PPG might as well go hostile on Akzo 11 May 2017 It has little to lose by taking its $27 bln bid for the Dutch paint maker straight to shareholders. If Akzo invokes its poison pill, the deal falls away anyway. And if the U.S. suitor wins shareholder support, Akzo’s board will face enormous pressure to make the tie-up friendly.
Shareholder battle weakens Akzo’s standalone case 9 May 2017 Activist investor Elliott is taking the Dutch paint maker to court in an attempt to oust chairman Antony Burgmans. Akzo’s defence against suitor PPG rests on its stock trading on a higher multiple after a corporate rejig. But bad governance could cancel out any upside.
Akzo board has painted itself into a corner 8 May 2017 The Dutch paint maker’s categorical rejection of rival PPG’s 24.6 bln euro bid creates two glaring problems for boss Ton Buechner. His self-imposed targets are fanciful, and many shareholders doubt his judgement on the deal. Should PPG go hostile, two battles will become three.
Shell nears midway point in turnaround 4 May 2017 Recovering prices boosted the Anglo-Dutch group’s first-quarter earnings. Judging by the downstream performance of Shell’s chemicals unit and improved efficiency, its diversification is paying off. The second half of the challenge is to convince markets to look beyond crude.
PPG raised offer kicks hole in Akzo’s door 24 Apr 2017 With a 50 pct premium, guarantees for European workers and a big break fee, the U.S. paint maker’s third approach for its Dutch rival leaves CEO Ton Buechner no choice but to engage. The onus would then be on PPG to explain how this rich 24.6 bln euro deal makes financial sense.
Reinvention of Philips is on a healthy track 24 Apr 2017 The Dutch group’s transformation from a conglomerate into a focused maker of health kit is in its final stage. After carving out lighting, boss Frans van Houten is making headway in lifting poor margins. The surgery is needed to close the valuation gap with pure-play rivals.
Unilever wins battle in shareholder value war 20 Apr 2017 Consensus-beating first quarter results add impetus to the Anglo-Dutch group’s goal of a 20 pct operating margin by 2020. Hitting the target would help justify a share price above the spurned offer from Kraft Heinz. That hinges on it cutting fat rather than bone, though.
Akzo’s go-it-alone plan has a rose-tinted hue 19 Apr 2017 The besieged maker of Dulux paint is wooing investors by breaking itself up and becoming more profitable. On paper, the strategy is superior to merging with U.S. rival PPG. In reality, lifting margins by a quarter until 2020, while cutting fewer jobs, looks a stretch.
Unilever finds clever twist in takeover defence 6 Apr 2017 The Magnum ice cream maker unveiled measures to increase shareholder value, and implicitly prevent a re-run of Kraft Heinz’s hostile approach. It’s mostly obvious stuff. But plans to review Unilever’s dual Anglo-Dutch structure offer a cunning way to build a political shield.
Credit Suisse raid jabs at private bank model 3 Apr 2017 The Swiss bank has stressed zero tolerance for tax evasion after authorities swooped on three offices. Credit Suisse may be scrupulous, but managing money for the wealthy brings certain recurring risks – not least because of Swiss private banks' historic pledge of utter secrecy.
Unilever can take page from GE’s activist playbook 29 Mar 2017 The 139 bln-euro Magnum ice-cream owner may attract uppity investors for the same reasons Kraft Heinz came calling: low margins and relatively little debt. CEO Paul Polman could keep them at bay by aping GE and seeking an activist's advice. But he'd have to be willing to act.
Akzo activists are useful and best ignored 29 Mar 2017 Holders of a quarter of the Dutch paint maker’s shares think it should engage with hostile bidder PPG, claims activist fund Elliott. Yet by rushing into talks, Akzo would play a trump card too early. Appearing lukewarm, but with shareholders still keen, may lure a better offer.
PPG bid for Akzo fails narrative and maths tests 24 Mar 2017 The U.S. paint and coatings maker says cost savings and the benefits of scale justify a $24 bln offer for its Dutch rival. It’s hard to tell a more visionary tale in a low-growth sector where consolidation is the way to stay ahead. But PPG’s synergy targets don’t add up either.
Unilever’s spreads sale plan contains adequate fat 23 Mar 2017 After Kraft’s aborted bid, the Marmite maker needs a self-help plan. Selling its spreads business would be risky as weak growth prospects may mean a low price. But on modest assumptions a private equity buyer could get a decent return – and kick-start Unilever’s reinvention.
Akzo shareholders, beware the double-Dutch defence 22 Mar 2017 The maker of Dulux paint says a sweetened $24 bln approach by U.S. rival PPG is bad not just for shareholders but the community, customers and employees. It’s hard for a suitor to counter those claims. If such defences become the norm, expect fewer takeovers and lower valuations.
Banks could do more in money laundering battle 22 Mar 2017 ING faces probes over links to a years-old graft case in central Asia, while UK lenders face questions over illicit Russian funds. The common theme is the difficulty of compliance in a world of faceless shell companies. The key is for banks to lobby harder for transparency.
Dutch deliver conventional protest vote 16 Mar 2017 The country’s governing coalition suffered heavy losses in Wednesday’s election. But right-wing firebrand Geert Wilders picked up fewer seats than expected and finished a distant second. The setback for extremism leaves mainstream political parties more fragmented than ever.