Nobel Prize for batteries has a negative side 9 Oct 2019 The Swedes awarded this year’s chemistry gong to the creators of the lithium-ion battery. Its use in everything from smartphones to cars should help the energy business become more climate-friendly. But the technology creates some of its own pollution, resource and social risks.
Europe’s $8 bln buyout star outshines U.S. rivals 24 Sep 2019 That’s the market value of Swedish firm EQT after its share price popped 25% on its first morning. The valuation makes sense if pension funds and others keep pouring cash into private equity. Still, the premium to larger and more diverse groups like Blackstone is striking.
Ikea doubles down on China’s risky smaller cities 24 Sep 2019 The Swedish furniture giant will pump $1.4 bln into expanding its operations in the People’s Republic, joining Starbucks and others seeking fresh growth in poorer provinces as mature coastal markets slow. In key aspects, however, China's interior is falling behind, not catching up.
Climate-activist investors are due for a new dive 3 Sep 2019 Treating and moving water can account for 20% of energy use. And many companies are ignoring the risk to their operations of too much or too little of the liquid, judging by a recent industry conference. That presents fertile ground for pushy stock- and bondholders.
Swedish buyout firm places faith in public markets 2 Sep 2019 EQT may raise $550 mln in an IPO, soon after rival BC Partners raised a similar amount in a private sale. Both want to grow abroad and in credit and real estate. Yet choppy markets and the difficulty of valuing private equity firms make EQT CEO Christian Sinding’s job harder.
The Exchange: Banking on water 27 Aug 2019 Wall Street is diving into climate risk - with the exception of water. Torgny Holmgren of the Stockholm International Water Institute explains how that’s starting to change and how properly valuing the asset and smart use of technology are key to solving the crisis.
Wall Street mistakes water for a business washout 26 Aug 2019 Big banks and investors are thin on the ground at water confabs, including this week’s bumper affair in Stockholm. Yet clean, fresh supplies are increasingly scarce. The economic and financial implications interact with climate risks, too. The finance whizzes are missing out.
H&M gets too much credit too soon 27 Jun 2019 The Swedish fashion retailer’s shares rose 10% after strong June sales. The company also said it would sell more clothes at full price and divert more resources to its online business. But to fully deserve the richer valuation, a drop in the operating margin has to be reversed.
Nordic banks’ soft regulators invite U.S. wrath 19 Jun 2019 Shares in Danske and Swedbank have fallen sharply due to concerns about American probes into money laundering. A $900 million fine by Dutch regulators helped ING escape U.S. ire for similar breaches. Laws limiting penalties in Scandinavia mean banks there may not be so lucky.
Lowball Nordic IT sale gives Apax a better exit 18 Jun 2019 The buyout firm accepted a lowly 1.3 bln euro cash-and-shares offer for Norwegian computer services firm Evry from Finnish rival Tieto. The measly 15% premium is less than half the value created by cost savings. Still, a 20% stake in the combined group should be easier to sell.
Sweden provides a cautionary digital tale for HSBC 18 Jun 2019 Hong Kong’s new online banking licences open the UK-based titan to new challenges in a market that accounts for 30% of pre-tax profit. Scandinavian giants such as Swedbank quickly fell prey to startups. And HSBC will be up against the likes of tech-savvy Alibaba and Tencent.
Thrice-ditched Aussie telco has its work cut out 5 Jun 2019 Swedish fund EQT has dropped its toppy $2.3 bln bid for Vocus after due diligence. Shares dropped 20%. It’s the third financial buyer to walk since 2017. It casts doubt on the target’s efforts to integrate deals. New boss Kevin Russell has to find a way to dial up confidence.
Aussie telco buyout exhibits fibre-optic fever 28 May 2019 Sweden’s EQT has offered to buy Vocus for $2.3 bln, a 35% premium to its undisturbed price and far higher than 2017 bids from KKR and Affinity. The price reflects hype around fancy fibre networks, which may not last. Shareholders will be grateful for the opportunity to exit.
Songwriters’ Spotify protest song is off-key 21 May 2019 The Swedish streaming site gets flak from musicians angry at low payouts. It’s a legitimate gripe, but label middlemen take home more than Spotify, which doesn’t even cover its costs. Tech giants like Apple and Amazon, meanwhile, stop CEO Daniel Ek from increasing his prices.
Swedbank CEO exit still leaves iceberg of problems 28 Mar 2019 The Swedish lender has dismissed CEO Birgitte Bonnesen shortly before its annual meeting. That was almost inevitable given allegations that the lender was involved in money laundering in the Baltics. The problem for investors is that the scandal will last longer than her tenure.
Second-hand $4 bln colostomy bag LBO may get messy 26 Mar 2019 Medical-kit maker ConvaTec’s value rose 9 pct after a report that buyout group EQT might be interested. Its shares are down a third since it was floated by private equity in 2016. A new owner could slash costs to rip out cash, but risks sacrificing more market share to rivals.
Spotify pitches Apple lament to easy EU audience 14 Mar 2019 The Swedish music service filed a European Commission complaint alleging that its rival’s payments system hurts competition. It may take years, but the EU has pursued similar cases against the likes of Google. It’s also well timed given the growing backlash against U.S. Big Tech.
EU banks keep stepping on old landmines 20 Feb 2019 A French court fined UBS a record $5.1 bln for helping clients evade taxes in the past, while Swedbank faces allegations about old dodgy transactions linked to Danske Bank’s money-laundering scandal. European lenders seem unable to avoid the damage from past compliance bungles.
Cevian, Nordea dangle truce in bank activism feud 21 Dec 2018 Lenders and shareholder activists rarely gel. But the Nordic bank welcomed the Swedish fund’s 2.3 pct stake. Cevian’s proposals for cost cuts are less radical than, say, a breakup, but could push Nordea’s return on equity to 14 pct. Its surplus capital could be a sweetener.
Ethical investing is cherry on private equity cake 18 Dec 2018 Bridgepoint is bidding $1 billion for Swedish gaming firm Cherry. The buyout group’s scope to pay a big premium and still get a good deal is due to public markets’ aversion to “sin stocks”. Ethical investing is supposed to improve behaviour, not private equity coffers.