Canada’s busy deal maven both hands-on and not 19 Dec 2016 Prem Watsa has drafted an airtight policy for Fairfax's $4.9 bln offer for Swiss insurer Allied World, keeping close control of his company. Meanwhile BlackBerry, where he is lead director and a big investor, is trying to parlay its smartphone history into hands-off driving.
KKR gets shot in arm from bumper Capsugel exit 15 Dec 2016 Selling the drug capsule group for $5.5 bln means the U.S. buyout group has tripled its money since buying from Pfizer in 2011. It has also done so without savaging Capsugel’s R&D budget. Acquirer Lonza gets vertical integration but will struggle to get the same kind of return.
Actelion looks like a lose-lose for Sanofi 14 Dec 2016 The French firm is mooted as a buyer for the Swiss biotech group after J&J walked away. The financial logic looks equally strained, and overpaying would smack of desperation about Sanofi's own business. With drug prices under pressure, pharma M&A will not get any more rational.
Rosneft deal is more about Qatar than Glencore 7 Dec 2016 The $54 bln commodity group and the Arab state are buying 19.5 pct of the Russian oil giant for $11 bln. It will boost Glencore's oil presence but the Qataris, who presided over the recent OPEC output pact and own 9 pct of their partner's shares, are making a bigger statement.
Credit Suisse realism does investors little good 7 Dec 2016 The Swiss bank has scaled back its targets for pre-tax profit and balance sheet strength. Boss Tidjane Thiam may have averted another equity hike, but only just, by finding 1 bln Swiss francs in new cost cuts. And his new, more muted vision puts the bank's dividends in question.
Actelion could give J&J hypertension 25 Nov 2016 The U.S. baby lotion-maker is reportedly eyeing the $17 bln Swiss group Actelion, a specialist in blood pressure drugs. Given the latter's high price, J&J would need big cost cuts to make the deal work. Moreover, Actelion is fiercely independent, and faces mounting competition.
Zurich Insurance overhaul short on big thinking 17 Nov 2016 It's good that the Swiss insurer plans to increase cost-cutting and link dividend payouts to earnings. While the emphasis on capital discipline is laudable, boss Mario Greco has yet to show the kind of strategic revamp investors might have hoped for.
ChemChina-Syngenta deal suffering Chinese blight 14 Nov 2016 The Swiss agribusiness group's share price has tumbled, implying a plunge in confidence the $43 bln purchase will happen. The rot seems to be in the PRC, where corporate and political jockeying could prevent needed approval. China Inc will pay a high price if the deal fails.
Richemont earns reprieve from negative watch 4 Nov 2016 The Cartier owner's first half was less alarming than it had warned. Shedding executives and stores should bring greater focus in an era of faltering watch sales. It all lends weight to a sum of the parts analysis that implies the Swiss luxury group is undervalued.
Credit Suisse’s margin pains undo diet gains 3 Nov 2016 Cost control helped the Swiss bank earn 41 mln Swiss francs in the third quarter despite a hefty legal provision. Yet profitability is under pressure in Credit Suisse's wealth management and trading units. Stock-based lending losses in Asia also blot its push into the region.
Cox: First Boston-Bankers Trust may unite in 2017 1 Nov 2016 Credit Suisse and Deutsche Bank bought the Wall Street firms decades ago but are still subscale in the United States. The two could limp along, never meeting their cost of capital. Joining forces, and spinning off the combination, is an alternative with many virtues to consider.
Saint-Gobain loses either way in Sika fight 31 Oct 2016 The French materials group's two-year effort to sneak control of a $9 bln Swiss chemicals maker by buying a 16 pct super-voting family stake has hit a new legal setback. Saint-Gobain could keep trying or make a proper offer - but giving up would be better for its shareholders.
UBS probe neatly captures Hong Kong market dilemma 31 Oct 2016 Regulators are looking into UBS's role in local IPOs. Whatever the outcome, it epitomises a clash between lofty governance goals and too many banks chasing sometimes questionable listing candidates. Long-term, global institutions would gain from taking the high road.
Review: UBS whistleblower sounds cautionary note 28 Oct 2016 Bradley Birkenfeld helped expose tax evasion at the Swiss bank, landing it with a big fine. He was put in jail but also collected a $104 million reward. As Wall Street braces for more penalties, his memoir outlines the perils facing whistleblowers – and those who listen to them.
UBS ban in Hong Kong would compound terrible year 28 Oct 2016 The Swiss bank says a probe into some IPOs might put its corporate finance business in the Asian city on hiatus. UBS is struggling in Hong Kong, and has slid down the league tables. With third-quarter results showing global fees down more than rivals, this comes at a bad time.
Nestle rubs up against limit of consumer demand 20 Oct 2016 The coffee-to-chocolate maker cut its forecast as quarterly sales disappointed. Rivals face similar problems. With little volume growth, niche units like Nestle’s venture capital division will become more important, and pricing tussles with retailers more frequent.
Syngenta investors can depend on Chinese stomachs 20 Oct 2016 Talk of a state-ordered merger rattled shareholders of the Swiss agribusiness group, which has accepted a $43 bln takeover by ChemChina. But food security is crucial for Beijing and there are few comparable targets available. A failed deal would be a big embarrassment too.
ABB breakup an option, not a necessity 21 Sep 2016 Activists are pressing the $49 bln Swiss engineer to split by selling its power grids division. But ABB would lose a business with improving margins and strong order growth. Cost cutting, plus small deals like the $930 mln sale of its cable business, may be enough for now.
Gauging luxury demand now more art than science 14 Sep 2016 Watch-maker Richemont said first-half operating profit will be down 45 percent, with sales poor in all regions. Bag-maker Hermes is to scrap sales targets. With global GDP still to grow by 2.4 percent this year, brands can't just blame weak economies.
Credit Suisse exit prolongs internal upheaval 7 Sep 2016 The Swiss bank has ditched trading head Tim O'Hara six months after boss Tidjane Thiam declared total confidence in him. His replacement oversaw big losses as head of Credit Suisse's securitised business. A plus may be that the struggling markets unit could now be pruned further.