Sweden

PayPal takes $2.2 bln step into physical payments

18 May 2018

The online pioneer is buying iZettle, which provides mobile card readers to small merchants. The valuation is higher than U.S. rival Square, and twice the Swedish group’s mooted IPO value. For PayPal, though, it’s a worthwhile move to expand its appeal to real-world retailers.

Volvo IPO will open road for M&A

11 May 2018

The Swedish group’s Chinese owner Geely may list the business it bought in 2010, profiting from a turnaround. That would raise cash for research and development and facilitate dealmaking. But a mooted valuation of up to $30 billion hinges on unrealistic Tesla-style multiples.

Spotify price hikes are dubious profitability plan

27 April 2018

The loss-making music service will soon charge Norwegians 10 pct more to listen to its vast song library. That will test if users value it enough to pay a premium over rival Apple. Spotify’s thin margins mean little benefit to investors even from a similar worldwide hike.

Electrolux buffeted by perfect Trump tariff storm

27 April 2018

The Swedish fridge maker lost a tenth of its value after operating profit almost halved in the first quarter. A rejig of its freezer factories in the U.S. was one culprit. But investors are dubious that cost cuts will enable such a global business to offset higher steel prices.

Nordea is safer on edge of Swedish property frenzy

25 April 2018

Aggressive new entrants have taken a chunk out of the Swedish bank’s mortgage share with hyper-low rates. Nordea and big domestic peers will feel tempted to join in to protect market share. That would be a bad idea – even if Swedish property values weren’t already falling.

Ericsson rebirth as much made in China as Sweden

20 April 2018

The Swedish telecom-kit maker’s shares soared 15 pct after quicker-than-expected cost cuts. That adds credibility to boss Borje Ekholm’s previously unimpressive rescue effort. An even bigger boost could come from anti-Chinese sentiment harming rivals like Huawei and ZTE.

Intesa offers partial hope for Italy’s dud loans

17 April 2018

The Italian lender is nearing a deal with Swedish group Intrum to shed 10.8 bln euros of dodgy loans from its balance sheet. Domestic peers will be cheered by the price, which is higher than rivals have attained in similar transactions. Then again, Intesa is a better bank.

Spotify and its direct listing win popular vote

3 April 2018

The music service earned a stonking $29 bln valuation in its early moments as a public company. Its non-traditional float scored insiders more liquidity, while saving on fees. Was it a real success, either for the company or for its unusual method? Ask this time next year.

Ericsson merits a dysfunctionality discount

31 January 2018

The Swedish telecoms-kit maker reported an operating loss for the fifth consecutive quarter and sales fell 10 percent in 2017. Boss Borje Ekholm promises an improvement this year but the core mobile market is shrinking. A valuation premium to Nordic peer Nokia is hard to justify.

H&M’s unfashionable stock demands total revamp

31 January 2018

The retailer’s operating profit fell by a third in the fourth quarter and operating margin has more than halved in a decade. Its valuation has fallen toward that of dowdier peers. Stopping the rot will at the least require an aggressive online strategy and more store closures.

Viewsroom: Trump solar tax is more burn than balm

25 January 2018

The U.S. president seems to be trying to right past trade wrongs. But business has long since moved on, meaning tariffs on washing machines and solar panels will do more harm than good. Also, Merkel and Modi disappoint in snow-ravaged Davos. Plus: Spotify’s Wall Street snub.

Spotify puts IPO bankers on “disruption” playlist

23 January 2018

The music-streaming service may list its stock in New York without raising money or using underwriters. With private funding plentiful and business models asset-light, other tech groups could follow. It’s another threat to the high fees U.S. banks charge to take companies public.

Tele2 pays late fee for telco “convergence” party

10 January 2018

The Swedish mobile operator is buying cable group Com Hem for $3.2 bln. The idea is to cut shared costs and cross-sell broadband, TV and voice services to customers. It’s a well-worn path in the sluggish telecom industry. But Tele2 faces a long wait to make the deal pay.

Tech salad will come with a side of SLAW in 2018

3 January 2018

Spotify, Lyft, Airbnb and WeWork are all potentially going public in the coming year. None of them may ever match the scale of a FAANG or BAT. But each is disruptive in its own way, and offers investors a unique play on the future of cities, mobility, work and play. Bon appetit!

GE exits 3D-printing fight only slightly bruised

27 December 2017

The U.S. group ended a 15-month tussle for ownership of Sweden’s Arcam by buying hedge fund Elliott’s stake at a modest premium. GE should benefit from having full control of a technology critical to its aviation business, even if it nets Elliott’s Paul Singer a handsome profit.

Geely could be useful back-seat driver at Volvo

27 December 2017

Seven years after buying Volvo Cars, the Chinese group is acquiring Cevian’s 8.2 pct stake in the Swedish truckmaker. The activist gets a decent exit after 11 years, while Volvo gets help with electric vehicles and China. The risk is Geely is getting in at the top of the cycle.

Musical debuts will produce financial syncopation

26 December 2017

Look for Spotify and Vivendi's Universal to float in 2018, thus presenting investors with a choice of content versus distribution. One is an unprofitable tech darling, the other a cash-generative rebound story. Both will be valued too richly, and Spotify is more apt to fall flat.

Spotify and Tencent make oddly logical supergroup

1 December 2017

The Swedish music-streaming service and the Chinese tech giant’s rival unit may swap 10 pct stakes. Tencent gains another trophy asset and access to expertise making users pay. Spotify gets cash and a peek into a huge market. The risk is it muddies already hard-to-price IPOs.

Uber-Volvo deal scrapes self-driving surface

20 November 2017

Providing 24,000 vehicles for the ride-hailing service’s autonomous fleet could pump $1 bln into the Swedish carmaker’s tank. While a decent chunk, the car industry of the future ought to generate multiples of that from running robo-taxis and selling a plethora of other services.

Ericsson’s turnaround signal may weaken

20 October 2017

The telecom-kit maker’s results were less grim than expected, but sales are shrinking, and its operating margin is still feeble. New chief Borje Ekholm will struggle to meet his ambitious profit target unless he can shut – or find buyers for – its various loss-making units.