Davos could do with a "DiCaprio ultimatum" on pay 20 Jan 2016 Greed is a root cause of climate change, “The Revenant” star told the World Economic Forum. In reality, most global companies got that message long ago. What’s missing are leaders prepared to pin compensation to environmental targets. Davos attendees have a chance to step up.
Kuoni post-holiday glow explains would-be suitors 12 Jan 2016 Bid interest suggests the $1.1 bln Swiss holiday group was right to get out of traditional tour operating. Its visa processing business looks promising. A buyer wouldn’t get much of a return at current prices, though Kuoni’s potential may not yet be fully visible.
Sweden ignores Swiss lesson on FX intervention 5 Jan 2016 The Swedish central bank is talking about intervening to curb the inflation-dampening strength of the crown. Its own history and the experience of Switzerland, which spectacularly abandoned attempts to cap its currency almost exactly a year ago, augur failure.
New type of dealmaker gives Keurig $14 bln respite 7 Dec 2015 The single-serve coffee group is selling to the family-backed JAB. The 78 pct premium is surely a welcome exit for investors in the struggling company. The novelty, though, is JAB’s caffeine-themed consolidation play, reminiscent of Brazilian 3G’s effort with Heinz and Kraft.
Glencore can’t delay with $2 bln agri-sale 17 Nov 2015 The debt-laden commodities trader is slimming down in agriculture. But two months into the disposal process, one potential buyer says he thinks the business is “not really on the market”. With copper prices hitting a fresh six-year low, Glencore can’t afford to drag its feet.
China catalyst could spark Syngenta chain reaction 13 Nov 2015 The Swiss pesticides group has rejected a $42 bln bid approach from China National Chemical Corp, reports say. Interest from rival Monsanto was rebuffed earlier this year, and last month the Syngenta CEO stepped down. It looks vulnerable to a round of chemical re-engineering.
Credit Suisse will struggle to shed subpar UBS tag 21 Oct 2015 New boss Tidjane Thiam is raising $6.3 bln and cutting costs to turn Credit Suisse into a wealth manager first, rather than private-cum-investment bank hybrid. Yet cross-town rival UBS is already ahead in that respect. Swiss acquisitions are logical, but growth could be elusive.
Syngenta CEO exit opens door to opportunists 21 Oct 2015 Mike Mack will leave the $30 bln Swiss agrochemical company. Shareholders grumbled that the company fumbled a bid from Monsanto. New leadership may be more credible than Mack in cutting costs. Meanwhile, Syngenta looks more open to a bid or a breakup.
ABB’s weakening cash generation is concerning 21 Oct 2015 The Swiss engineer’s cost-cutting zeal bore fruit in the third quarter. But despite squeezing working capital by $845 mln, its cash generation fell year-on-year. ABB is already dogged by slow growth and falling orders. Customers paying up more slowly is an unwelcome trend.
Barclays, Credit Suisse, Deutsche: which to back? 19 Oct 2015 Three of Europe’s top four investment banks have new leadership bent on strategic change. Deutsche Bank’s task is hardest: its top line relies most on low-return trading activity. Credit Suisse’s equities prowess and headstart over Barclays in finding a new CEO give it an edge.
Nestle’s growth target is a pointless distraction 16 Oct 2015 The Swiss food giant missed its long-established growth ambition, yet again. It aims to increase organic sales by 5 to 6 percent. This year, it says the number will be 4.5 percent. It’s not a disaster but suggests the higher number is outdated. Nestle should ditch it.
Credit Suisse wins first-to-the-trough equity edge 12 Oct 2015 The Swiss lender is readying a share sale as part of a strategic review. Adding 5 bln Swiss francs would suffice, but raising more means firepower for acquisitions and regulatory caprice. Boss Tidjane Thiam stands to gain from beating Deutsche Bank and StanChart to the punch.
Swiss banks can look beyond leverage ratio noise 25 Sep 2015 Credit Suisse and UBS could face a 6 pct capital-to-assets ratio requirement, after a proposal was voted through Switzerland’s lower house. That’s higher than for peers, but the swing factor is forthcoming global bail-in rules. In most scenarios, Swiss lenders should cope.
Zurich’s loss of RSA nerve dents its credibility 21 Sep 2015 The Swiss insurer has binned plans to buy its UK peer - and issued a profit warning. A deal at the mooted 5.6 bln stg level could have worked, given RSA’s potential. If Zurich doubted RSA’s ability to recover, it shouldn’t have sniffed around in the first place.
Richemont triggers premature luxury share surge 16 Sep 2015 Surprisingly strong five-month sales from the Cartier owner sent shares up 7 percent. Peers’ stock also bounced. There’s a boost from tourist flows in Europe and relief after a summer of China woes. But it’s far from certain that luxury has turned itself around.
ABB’s $4 bln grid sale is key to reinvigoration 9 Sep 2015 The Swiss engineer is in strategic review mode. As customer demand weakens, it wants to take $1 bln from overall annual costs too. Given growth challenges elsewhere in its empire, ABB could do without its grid operation that generates low profit margins yet is also risk-prone.
Glencore’s giant cash call puts squeeze on rivals 7 Sep 2015 The Swiss trader’s $10 bln debt reduction plan eases balance sheet jitters by cutting net borrowings by a third. Investors get stability at the expense of their dividend. But the move offers a grim view of commodity prices that undercuts the investment case for the whole sector.
Poland makes bank investors political playthings 1 Sep 2015 Warsaw could force lenders to cough up $5.9 bln to relieve borrowers with Swiss franc mortgages not obviously in distress. With elections looming, the party ahead in the polls wants to tax banks’ balance sheets. It may be pure politics, but the danger is that foreign money flees.
Monsanto leaves Syngenta facing awkward questions 26 Aug 2015 The world’s largest seed maker has given up pursuit of its Swiss rival. The $46 bln deal required aggressive assumptions and carried risks. Syngenta’s management now needs to prove its reluctance to talk was worth it.
Monsanto $46 bln Syngenta offer deserves a hearing 26 Aug 2015 The U.S. seed giant’s last cash and shares approach to its Swiss rival was rebuffed. Monsanto has offered a little more, but can’t go much higher without destroying value or relying on rosy assumptions. The pressure is on Syngenta to talk, or show investors it has a better plan.