Gulf investor pays up for Spanish shopping spree 14 Jul 2015 The ex-prime minister of Qatar is paying 1 bln euros, or a steep 57 times historic earnings, for a 10 pct stake in Spain’s largest department store. It values the equity at 10 billion euros. But El Corte Ingles owns prime real estate. The move may be a prelude to an IPO.
Thruppence: Should World Cup hosts foot FIFA woes? 5 Jun 2015 U.S. authorities are investigating how soccer’s governing body awarded the event to Russia and Qatar. As FIFA’s problems proliferate beyond graft indictments, Breakingviews columnists debate whether it is fair or practical to deprive host countries of the sport’s global fiesta.
Dufry pays up to become duty-free heavyweight 30 Mar 2015 The Swiss travel retailer will pay 3.6 bln euros with debt, or 13.8 times reported 2014 EBITDA, for Italian-listed World Duty Free. That’s bold as Dufry digests another big deal. Despite a big equity-raising backed by wealth funds, debt will hit a punchy 4.3 times EBITDA.
Why the sky-scraping deal fees over Canary Wharf? 30 Jan 2015 Qatar’s $4 bln swoop on Wharf-owner Songbird didn’t take long. Once big shareholders folded, the defence against the lacklustre offer collapsed. Yet the target’s support team could pocket up to $45 mln. M&A due process certainly doesn’t come cheap.
Qatar stake is vote of confidence in BA-owner IAG 30 Jan 2015 Taking a 10 pct stake worth $1.7 bln makes Qatar Airways the biggest investor in British Airways’ parent company. The immediate strategic benefit is limited: the groups already cooperate and IAG gets no new capital. But a deep-pocketed, long-term backer can be helpful.
Qatar’s hostility pays off in Canary Wharf battle 28 Jan 2015 The Gulf state has won over the three other big investors in Songbird, the AIM-listed majority owner of the London financial district. Songbird’s board was caged in: with justification, it sees the $4 bln bid as cheap. But minority investors could suffer by holding out.
Airbus investors are caught in crosswinds 11 Dec 2014 The aircraft maker disappointed investors with a lacklustre 2016 outlook, mainly due to big R&D outlays and increasing costs of producing new planes. Yet medium-term prospects look good and a sale of the $5 bln Dassault stake could bridge temporary shortfalls.
Canary Wharf bid short on tactics and value 4 Dec 2014 Qatar Investment Authority and Brookfield Property have gone hostile with a raised 2.6 bln stg offer for Songbird, owner of London’s easterly finance district. Bypassing the board is not how to buy key UK infrastructure. And the 34 pct premium ignores the Wharf’s trophy status.
Qatari bid highlights Canary Wharf’s potential 7 Nov 2014 Songbird, the majority owner of Canary Wharf Group, has rebuffed a 2.2 bln stg approach from the emirate’s sovereign fund. Eventual success or failure hinges on a few big shareholders. Either way, the interest reflects the east London financial district’s bright prospects.
Qatar is better off with World Cup than without it 12 Jun 2014 The controversy over its hosting of the 2022 soccer jamboree has stained the emirate’s reputation. Yet without the tournament, Qatar has little apart from gas to distinguish itself from more attractive Gulf neighbours. Losing the World Cup would be worse than keeping it.
Three ways for FIFA to score on governance 6 Jun 2014 Ugly allegations of corruption have caught soccer’s governing body offside. FIFA’s setup has improved lately but its congress is unrepresentative, its executive committee is too large, and its president is too powerful. The beautiful game should shoot for a hat-trick of reforms.
Qatar could benefit from dual-track SWF model 6 Aug 2013 The world’s flashiest sovereign wealth fund is under the watch of a new emir and changes in the way Doha manages its money may follow. The Qatar Investment Authority is young and looks messy. Dividing investment between two levels of risk – like other SWFs – might make sense.
Qatar handover will test assertive global push 25 Jun 2013 The emir is handing over control of the tiny state’s considerable wealth and rising global interests to his son, Sheikh Tamim. The country’s influential prime minister may go too. Domestic policy might not change much, but international stakeholders must prepare for uncertainty.
Qatar’s leverage over banks is on the wane 21 May 2013 Doha still has an appetite for financial investments but its targets no longer depend on the Qatari bankroll. Capital is plentiful. The terms of the sovereign fund’s punts on Russia’s VTB and Deutsche Bank suggest the emirate may have to lower its return expectations.
Qatar support for Egypt’s rulers could backfire 17 Apr 2013 The emirate says its financial aid to Egypt is neutral but its billions allow the Muslim Brotherhood government to delay unpopular reforms while the economy deteriorates. At best, Qatar is shoring up its political interests. At worst, it must prepare for an unpleasant backlash.
Stalled Qatar deal leaves EFG Hermes in limbo 10 Apr 2013 The Mideast’s top investment bank agreed to spin off some of its assets into a joint venture with Qatar’s QInvest. Yet with both sides privately betting the deal has been sunk by politics, EFG Hermes must now focus on closing the hefty discount to the sum of its parts on its own.
The cost of Qatar’s punchy spending style 19 Mar 2013 The Gulf state is splashing cash everywhere. The strategy is part financial, part geopolitical - each investment forges a new link to the global system. But tiny Qatar may be overstretching itself in its determination to cultivate alliances.
Egypt needs urgent help to stop it sinking 12 Mar 2013 The Muslim Brotherhood has failed to protect the fragile economy, let alone boost it. The country is gripped by shortages, aid options are narrowing and no date is set for parliamentary elections. The longer Cairo delays an IMF deal, the greater the social and financial risks.
QInvest-EFG Hermes deal tests new Egypt 4 Mar 2013 Ten months have passed and the Qatari firm is still waiting for regulatory approval for its deal to carve up the region’s top investment bank. Criminal allegations against EFG’s co-CEOs make this a political hot potato for Egypt. But both firms may be weaker if nothing is done.
Qatar seeks to spread the wealth with IPO bonanza 21 Feb 2013 The emirate is planning a series of new listings that could allow Qataris to participate in the country’s global expansion. The move by the absolute monarchy looks like an attempt to modernise its traditional relationship with citizens. Financially, it looks a bit ambitious.