UBS goes for growth with wealth management rejig 7 Jan 2020 Fresh from hiring rival executive Iqbal Khan, the bank which oversees $2.5 trln is axing unnecessary layers to serve rich clients better and faster. Only 2% of the unit’s jobs will go, though. UBS needs to boost lending to get its cost structure into line with leaner competitors.
Credit Suisse spy scandal calls for CEO bonus cut 23 Dec 2019 Swiss regulators are probing the lender’s surveillance of two senior executives. The fiasco undermines the $33 bln bank’s internal controls, and may deter clients and dealmakers. While he hasn’t been directly blamed, boss Tidjane Thiam owes investors a gesture of solidarity.
Haagen-Dazs cash may melt in Nestlé’s pocket 11 Dec 2019 The Swiss giant is selling its U.S. ice cream unit to a joint venture with buyout firm PAI for $4 bln. A big dollop of debt gives the $312 bln group a taste of private equity returns. After his second big disposal this year, CEO Mark Schneider might be tempted to splash out.
Credit Suisse excuses cloud Thiam’s sunny targets 11 Dec 2019 The Zurich-based bank is aiming for a 10% return on equity next year even in a challenging environment. It doesn’t help that CEO Tidjane Thiam just abandoned a 2019 goal, blaming tough markets. The $32 bln lender’s cut-price valuation suggests investors don’t believe him.
Swiss Re swallows pride with $4.2 bln UK castoff 6 Dec 2019 The Zurich-based insurer will sell its British business to rival Phoenix at a valuation similar to its cancelled public listing. CEO Christian Mumenthaler had few other options. Given the threat of Brexit, foregoing a takeover premium is a price worth paying for a cleaner sale.
Glencore’s new probe applies shove to succession 5 Dec 2019 British police are investigating possible bribery at the commodity giant. Two days ago 62-year-old boss Ivan Glasenberg, whose firm also faces a U.S. probe, said he could retire next year. Having to fight a legal war on two fronts may help him make up his mind.
Merger Monday is cold comfort in longer M&A slump 26 Nov 2019 Deals from LVMH, Novartis, Charles Schwab and peers added up to an impressive-looking $70 bln. Yet 2019 transactions volumes are lower than last year, despite record stock markets, and M&A valuations are falling. Trade wars and growth fears have to ease for a sustained pickup.
Novartis sees too much good in bad cholesterol 25 Nov 2019 The Swiss drugs giant is buying The Medicines Co. and its artery-clearing drug inclisiran for $9.7 bln, or a fat 41% premium. But the sector is crowded and Novartis must wait years for a decent return. Governments and insurers may also tire of paying to treat lifestyle diseases.
Euronext’s Spanish journey looks tortuous 22 Nov 2019 Stephane Boujnah, the exchange’s acquisitive boss, may try to trump Swiss rival SIX’s 2.8 bln euro bid for Madrid-based peer BME. A higher offer may clinch the deal, but would test Euronext’s financial discipline. Appeasing local politicians would also come at a cost.
Swiss bourse buys costly ticket to EU trading room 18 Nov 2019 Zurich-based exchange operator SIX is offering 2.8 bln euros cash for Spain’s BME, which is also being courted by rival Euronext. Building up scale makes sense. But extracting savings to justify the 34% premium may be challenging. It’s an expensive way to gain an EU foothold.
New Credit Suisse investment-bank chief needs axe 11 Nov 2019 David Miller is taking over from James Amine, who helped run the unit for a decade. His top priority is to stop losing market share in key businesses like advising on deals. However, costs also look high, despite recent restructuring. There’s an argument for more cuts.
Richemont jewellery wealth dazzles Tiffany suitors 8 Nov 2019 The Swiss group’s weak first-half results mask the power of its Cartier and Van Cleef brands. The jewellers converted 33% of sales into operating profit, roughly double Tiffany’s margin. That gives rival LVMH a shiny target as it pursues a takeover of the American group.
Consumer giants’ housekeeping turns into hard work 1 Nov 2019 Big groups slimmed down by selling businesses from margarine to beer. But now Pernod Ricard is cooling on a sale of its wine brands, while Nestlé is taking a while to offload its cooked meats unit. Unrealistic price expectations and pumped-up valuations are partly to blame.
Thiam gets brief breathing space after wealth loss 30 Oct 2019 Credit Suisse’s vital wealth management business is holding up despite the exit of top banker Iqbal Khan. And net profit soared, helped by a disposal. Boss Tidjane Thiam gets a temporary respite. But with Khan just starting at UBS, the extent of the damage is yet to materialise.
Cable cowboy joins Swiss circular firing squad 22 Oct 2019 John Malone’s sale of his Alpine cable outfit UPC is off after an investor revolt at its suitor, Sunrise. The erstwhile buyer has to swallow a 50 mln euro exit charge and misses the chance to challenge peer Swisscom. The Liberty Global boss’s M&A halo gets a bit of a dent.
UBS gets mugged by hard market reality 22 Oct 2019 Weak trading revenues pushed third-quarter pre-tax profit down by 21% at the $45 bln Swiss bank. The company is struggling to adjust to a tough environment. Expenses came in at a high 80% of revenue. CEO Sergio Ermotti’s 2021 cost-reduction targets suddenly look fanciful.
Nestlé shrugs off eco worries with water refresh 17 Oct 2019 The $316 bln consumer giant wants to revive a tepid growth in a business dogged by environmental concerns. Splitting the division into three locally-managed units may help the Perrier maker push new products. But any dilution of financial reporting would also mean less scrutiny.
Swiss bank spy fiasco puts UBS succession in frame 4 Oct 2019 While Credit Suisse embarrassed itself with its recent surveillance of Iqbal Khan, the fiasco raised questions about who will succeed Sergio Ermotti atop arch-rival UBS. Strong internal contenders have departed, and Khan just arrived. Ermotti may need to postpone his retirement.
Viewsroom: Mark Zuckerberg is stuck in 2006 3 Oct 2019 That’s when the Facebook CEO rejected Yahoo’s $1 bln takeover bid. Now he uses the decision to justify his grip on control and decisions on data, privacy and the chance of a breakup under a Democratic president. Plus: How a spat over shrubbery almost felled Credit Suisse’s CEO.
Leveraged loan partygoers take a much-needed rest 1 Oct 2019 Growth in risky corporate debt has slowed. Investors worrying about the economy are driving a harder bargain with private equity-owned groups like Shutterfly and Sotheby’s. Yet sovereign bond yields are ultra-low and buyout firms have huge cash piles. The lull may be temporary.