Monsanto would have to dig too deep for Syngenta 11 May 2015 Big holders in the Swiss agribusiness say they’d back a $50 bln bid, or 10 pct more than the U.S. crops company offered last week. To justify a price that high, however, would require Monsanto to find at least $2 bln in annual cost savings. That sounds like an implausible harvest.
New trading dynamics encourage big FX lurches 11 May 2015 Trading scandals and losses from the Swiss franc’s dramatic January rise have made currency traders more cautious. The result is a market where fewer dealers will challenge trends. It’s like a train with faulty brakes. A little momentum can take exchange rates on a long journey.
Monsanto heaps pressure on Syngenta 8 May 2015 The U.S. seeds giant has made a $45 bln approach to the Swiss pesticide firm. The target rejected this as too cheap and too risky. Syngenta has a point: there will be major political and antitrust hurdles. But it needs to lay out just how it will create more value on its own.
Adecco could have avoided top jobs headache 7 May 2015 The surprise exits of the Swiss staffing group’s CEO and CFO lopped almost $1 bln off its $15 bln value. The self-styled “world’s leading provider of HR solutions” might have handled the departures better – like giving investors advance notice that it was looking for a new leader.
UBS pulls ahead of both activist and rivals 5 May 2015 The Swiss lender’s Q1 profit leapt 88 pct to 2 bln francs. A strong return at the leaner investment banking unit further discredits Knight Vinke’s case for an exit. And with better capital ratios on both main metrics, UBS is piling pressure on less decisive competitors.
UBS has grounds to resist fresh breakup calls 16 Apr 2015 Activist Knight Vinke says the Swiss group’s investment bank gets unfair funding subsidies from wealth management. But the cost of spinning it off could offset a valuation bump for the remainder. With returns up and dividends resurgent, UBS’s current strategy looks a surer bet.
Nestlé wades into purest form of water risk 2 Apr 2015 The $243 bln Swiss giant faces populist protests for bottling and selling H2O from Canada and drought-hit California. The potential harm to its reputation may not be worth the effort. It’s Nestlé’s least profitable business, and consumers might just as well drink from the tap.
Swiss say-on-pay bodes ill for rainmaker wallets 2 Apr 2015 UBS and Credit Suisse face binding shareholder votes on executive compensation for the first time. These will judge aggregate, not individual awards. But Swiss banks must also disclose their top-paid executive. That makes it harder for dealmakers to out-earn their CEOs.
Dufry pays up to become duty-free heavyweight 30 Mar 2015 The Swiss travel retailer will pay 3.6 bln euros with debt, or 13.8 times reported 2014 EBITDA, for Italian-listed World Duty Free. That’s bold as Dufry digests another big deal. Despite a big equity-raising backed by wealth funds, debt will hit a punchy 4.3 times EBITDA.
Holcim scores clear victory in Lafarge deal 20 Mar 2015 The Swiss cement maker has reset deal terms with its French partner. That’s fair – the new exchange ratio keeps the tie-up a merger of equals. But Holcim has also managed to veto Lafarge’s Bruno Lafont as CEO. Lafarge’s concession suggests its shareholders are anxious for a deal.
Clock ticks for Swatch in Apple Watch challenge 17 Mar 2015 Swatch CEO Nick Hayek is sanguine about the tech giant’s attempt to disrupt time. Yet he faces tricky options: lock horns with Tim Cook in a smartwatch war, or move upmarket where Apple will struggle to compete on craftsmanship. Swatch doesn’t look primed for either.
Lafarge-Holcim merger can be rescued as takeover 16 Mar 2015 The European cement makers disagree about the financial terms and governance of their planned tie-up. A “merger of equals” has foundered yet again. To keep the deal’s benefits, the way forward would be for Lafarge to agree to be bought for a suitable premium.
Credit Suisse finds CEO industry fears – but needs 10 Mar 2015 Tidjane Thiam, who will replace Brady Dougan in July, has no ties or loyalty to investment or private banking. And he has a reputation for making bold moves. It’s a combination that should send shivers not just through Credit Suisse, but the City and Wall Street, too.
Art market edges towards crackdown 4 Mar 2015 Monaco arrested a Swiss man who runs bonded warehouses where collectors store treasures. With authorities worldwide trying to stamp out money laundering and tax dodging, the opaque $65 bln art market may now be too big – and too much the exception – to escape regulation.
Credit Suisse earns the chance to be proactive 12 Feb 2015 The Swiss bank has kept its full-year dividend and now aims to slash an extra $75 bln of assets in 2015. Private and investment banking are for once both doing well, and fallout from the rising Swiss franc looks bearable. That gives CS scope to tackle its weak capital position.
UBS payout hike looks hasty 10 Feb 2015 The Swiss bank tripled its dividend, including a special payout, to 0.75 francs a share. But the Swiss franc rise and negative rates will curb profit, while looming regulation and lawsuits are big headaches. This could make UBS’s capital surplus look slimmer in future.
New tax-dodge files put HSBC, politicians on spot 9 Feb 2015 The latest revelations about how the UK bank’s Swiss unit helped clients evade taxes date back eight years. But they still raise questions about how much authorities knew, and what they ignored, when they went after HSBC. The fallout could put the bank back in the dock.
Denmark’s currency peg can avoid Swiss fate 5 Feb 2015 Traders are testing Copenhagen’s determination to keep the crown tethered to the euro. In response, the central bank has cut rates and is amassing reserves. It sounds like Switzerland, which abruptly abandoned its franc cap in January. But history need not repeat itself.
ABB’s growth targets are group’s biggest challenge 5 Feb 2015 The Swiss engineer underperformed in the fourth quarter, sending shares down 2 pct. But profitability is not ABB’s main problem. Underlying margins are up and restructuring is on track. The goal of 4 to 7 pct annual revenue growth until 2020 will be harder to reach.
CRH’s $7.4 bln buy reveals M&A tolerance 2 Feb 2015 It’s a big bet. The Irish building group will increase leverage – even with a big equity issue – to buy surplus assets from Lafarge worth a third of its market cap. CRH got sucked into an auction too. Yet investors cheered. It’s how things work in a low-return, low-growth world.