SoftBank’s less risky Swiss Re bet is still silly 4 Apr 2018 The Swiss insurer says any investment by the Japanese tech and telecom group won’t exceed 10 percent. A $3 billion stake would be substantially smaller than previously suggested. Given the dubious benefits of any tie-up, though, it’s still a questionable use for SoftBank’s cash.
Drug companies take the anti-Amazon pill 27 Mar 2018 Novartis is selling its consumer health assets to GSK for $13 bln. It makes sense for the former to focus on traditional drugs given the threat from e-commerce. For the latter, the purchase is less risky than a Pfizer deal and may still allow investment in its core business.
Cancelled Swiss IPO is a bearable blow for HNA 27 Mar 2018 The embattled Chinese conglomerate wanted to raise up to $1.4 billion from Gategroup, but pulled the deal over pricing. Listing is harder than selling property or existing shares, but by holding firm on price, HNA avoids looking desperate. That could help with other disposals.
Reckitt may yet benefit from Pfizer’s poor timing 22 Mar 2018 The Dettol maker’s shares jumped after it pulled a bid for the U.S. group’s consumer arm. The auction coincided with CEO Rakesh Kapoor’s struggle to digest a big deal, and rival GSK’s need to focus elsewhere. If Pfizer delays the sale, Reckitt could limber up for a second shot.
HNA’s Swiss airplane food IPO is far from gourmet 6 Mar 2018 The former Chinese deal machine is listing up to 65 pct of Gategroup to help ease its liquidity crunch. The maker of in-flight meals has expanded since HNA paid $1.5 bln for it in 2016. Factor in an IPO discount, though, and HNA will do well to recoup its original investment.
Cowed LafargeHolcim sets sights appropriately low 2 Mar 2018 The new boss of the world’s largest cement maker has scrapped a share buyback and set the group’s EBITDA growth target at 5 pct. Jan Jenisch can probably do better. Still, given LafargeHolcim’s various headaches since its merger the conservatism is understandable.
Viewsroom: Chipmaker battle fries M&A circuits 22 Feb 2018 Broadcom has lowered its hostile bid for Qualcomm after its target upped its longstanding offer for NXP. That decreases the chance the two larger rivals can strike a deal – assuming regulators wouldn’t nuke it. Plus: Credit Suisse shines a rare light on Asian investment banking.
Glencore is a weather vane for mining M&A 21 Feb 2018 The Swiss commodity group’s once-swollen net debt is below cash flow, but it will only decide later this year whether to hike dividends further. That leaves CEO Ivan Glasenberg scope to look for deals. If Glencore can’t find any decent ones, its peers probably won’t either.
Temenos’ $1.9 bln bid raises growth questions 20 Feb 2018 The Swiss bank-software group may buy Fidessa for 36.5 pounds a share in cash. The price looks high and returns low, unless the UK trading-tech group’s clients flock to buy Temenos products. Investors might wonder why, with revenue growing strongly, M&A is necessary.
Nestlé’s tepid year poses bigger questions 15 Feb 2018 Lacklustre 2017 sales have focused investors on issues the Swiss group would rather avoid. Not renewing a shareholder agreement with L'Oréal suggests a rethink of its stake is underway. But the future of sugary brands and a push into health supplements need clearer explanation.
Credit Suisse cushions image blows with hard cash 14 Feb 2018 A fresh probe into Asian hiring won’t help knocks to the Swiss bank’s reputation from the collapse of one of its exchange-traded notes. But Credit Suisse’s results were strong. The more boss Tidjane Thiam combines revenue growth and slashed costs, the more investors will relax.
Danone’s Yakult sale points to a healthier future 14 Feb 2018 The dairy giant is selling most of its stake in Japan’s Yakult and will rake in roughly 1.4 billion euros. The value of the investment that it made in 2003 has nearly quadrupled. The proceeds will help the company meet its debt-reduction goal. The capital discipline is welcome.
SoftBank’s new interest is anything but reassuring 7 Feb 2018 The Japanese firm has already invested $27 bln to fulfill Masayoshi Son’s vision of building a technology giant for the ages. A stake in Swiss Re might add float, but he would be piling into an overcapitalized industry. That’s hardly a recipe for ensuring financial success.
Volatility good and bad for Europe’s bank chiefs 7 Feb 2018 For the past two years Deutsche Bank’s John Cryan, Credit Suisse’s Tidjane Thiam and Barclays’ Jes Staley have been able to blame poor performance on becalmed markets. Higher volatility undermines that excuse. Trading revenues must grow or they risk shareholder revolt.
Volatility shock knocks Credit Suisse’s new image 6 Feb 2018 The value of an exchange-traded fund set up by the Swiss bank to benefit from calm markets has collapsed due to recent turbulence. Though the financial damage to Credit Suisse is minimal, it’s an unwelcome reminder of past mistakes. The reputational fallout could be more severe.
Viewsroom: Trump solar tax is more burn than balm 25 Jan 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.
Davos gathering gets #MeToo balance mostly right 22 Jan 2018 This year’s summit in the Swiss ski resort is chaired entirely by women, with gender a big theme at panels and parties. But the summit's low female attendance reflects the global imbalance of power. Tighter quotas would make Davos more politically correct but less formidable.
UBS’s show of strength is mostly convincing 22 Jan 2018 The Swiss bank plans a 2 bln Swiss franc share buyback, its first since the financial crisis, after a jump in annual pre-tax profits. UBS missed consensus forecasts. But regulatory sign-off means shareholders have greater clarity around its capital returns versus rivals.
Sanofi’s $11.6 bln bid ups investor blood pressure 22 Jan 2018 The French pharma giant is buying U.S. haemophilia group Bioverativ at a whopping 64 pct premium. Sanofi reckons the returns will clear its hurdle rate in three years, but hasn’t explained how. Roche’s rival drug means the deal could end up like Shire’s ill-fated Baxalta swoop.
Richemont reversal is unflattering but necessary 22 Jan 2018 The Cartier owner is paying 2.8 billion euros to purchase online luxury retailer Yoox Net-A-Porter, in which it already has a stake. That is a relatively rich price to buy back a business it used to own. The reversal in strategy is embarrassing but probably for the best.