DuPont drives wedge between shareholders and Peltz 5 Feb 2015 Adding two turnaround vets to the $70 bln chemical giant’s board may make shareholders think twice about voting a rival slate from Nelson Peltz’s Trian. DuPont says the activist nixed an offer to add one of his picks because he wanted the spot. He may just have been outplayed.
DuPont’s macro woes hand Nelson Peltz advantage 27 Jan 2015 The $67 bln chemical giant is promising more cuts and a bigger buyback to fend off the activist investor. But it’s already barely hitting estimates. A stronger dollar and falling commodity prices will make that even harder in 2015. DuPont boss Ellen Kullman is on the back foot.
Proxy fight as much about Peltz’s Trian as DuPont 9 Jan 2015 The billionaire activist is seeking four board seats at the chemicals group, his first public contest since Heinz nine years ago. Flexing muscle sends a message to other stubborn targets, like Pepsi. It also gives younger staff at Trian Partners experience in the trenches.
Saint-Gobain’s deal cunning could backfire 8 Dec 2014 The French materials group is seizing control of Swiss peer Sika by paying $2.8 bln for a minority family stake which has majority voting rights. Sika’s board is laudably indignant. And Saint-Gobain’s tactics have a hidden cost of upsetting other investors and the target’s staff.
DuPont chief bobbles rebuttal to Peltz attack 28 Oct 2014 CEO Ellen Kullman touted the $62 bln chemical giant’s scale and research capabilities in opposing the activist’s call for a breakup. But she offered no hard numbers to counter Peltz’s claim that the company could lop off $4 bln in excess costs. That was a missed opportunity.
Rob Cox: Is "stranded costs" a euphemism for fat? 23 Sep 2014 The answer to that question may determine the winner in the latest activist battle to captivate Wall Street: Nelson Peltz’s siege of DuPont. The billionaire’s controversial arithmetic suggests the chemicals giant has grown bloated over its 212 years. He’s on to something.
Peltz takes the long, hard road with DuPont 17 Sep 2014 The activist wants the $60 bln U.S. giant to separate into a fast-growth agriculture unit and a cash-generating chemicals rump. At DuPont’s trading multiple, though, just splitting won’t boost the stock much. Cost-cutting may create more sustainable value, but it’s a harder path.
Battery wager should give chemicals maker a jolt 15 Jul 2014 Albemarle’s $6.2 bln deal for rival Rockwood is a big bet on demand for lithium-ion power cells. Its investors were less than electrified, but cost savings cover the premium offered – and owning a low-cost producer of lithium is a smart play on the rise of electric cars.
Evonik in $400 mln soccer deal it doesn’t need 30 Jun 2014 The German specialty chemicals company is buying a 9 percent stake in a first-tier soccer team, emulating Adidas, Audi, Allianz and Bayern Munich. But Evonik’s products don’t reach end users. The potential benefits of its deal with Borussia Dortmund are hazy at best.
Syngenta can yield extra value for shareholders 24 Jun 2014 Shares leapt on a report Syngenta had held abortive talks with rival Monsanto, in the latest tax-driven push by a U.S. acquirer. There would be big antitrust obstacles. Even if no deal emerges, the bid talk should pressure the Swiss agribusiness giant to tend to its own garden.
Rival’s split makes it harder for Dow to resist 10 Mar 2014 FMC, a $10 bln pesticide-to-battery-parts maker, is splitting its fast-growing ag and pharma businesses from stodgier commodity minerals. It’s similar to the breakup activist Dan Loeb wants at Dow Chemical. Boss Andrew Liveris is standing firm. FMC’s move weakens his case.
Dan Loeb finds Dow looking more Sony than Yahoo 12 Feb 2014 The chemicals giant has rebuffed the activist’s idea to split in two. With shares up since Loeb’s pitch, making a financial case for a breakup is harder. That may leave Loeb waging a less aggressive campaign, as he has at Sony, rather than suiting up for a Yahoo-style proxy war.
Merck share price slump pumps up M&A pressure 27 Jan 2014 Is anyone worth 880 million euros? Merck stock dropped 10 percent after its finance chief left abruptly. The plunge reflects the German pharma group’s challenges and inflated hopes of transformative M&A. Quick completion of its AZ Electronics purchase would calm fraying nerves.
Dan Loeb puts the right accelerant in Dow Chemical 21 Jan 2014 The activist investor wants the company to hive off its petrochemicals unit, a more aggressive move than CEO Andrew Liveris has hinted at. Loeb’s analysis looks optimistic, but a sum-of-the-parts analysis suggests merely breaking up Dow could boost its value by a fifth.
DuPont division ought to paint happy picture 25 Oct 2013 Spinning off commodity chemicals used in pigments will give investors in the U.S. chemicals giant a choice between a cash-generating mature business and an innovative, growth-oriented one. It’s a sensible split, but the rump needs to re-rate for the shares to see big new gains.
Dow Chemical can’t embrace shale gas fast enough 24 Oct 2013 Volatile oil prices led the U.S. chemicals giant to miss on earnings. Meanwhile, products based on cheap natural gas boomed. No wonder Dow is shedding crude-linked assets at a faster clip to invest in a gassier future. It’s another example of shale transforming American industry.
Nobel Peace Prize winner should chasten economists 11 Oct 2013 Fortunately, the Organisation for the Prohibition of Chemical Weapons is far from the economic mainstream. Its existence, however, is a helpful reminder of the power and limits of globalisation, of the importance of governments and of the power of human irrationality.
Solvay pays up to tap into fracking market 7 Oct 2013 The Belgian chemicals group is paying $1.3 bln for Chemlogics, a privately owned U.S. specialist in compounds used in the oil industry. The deal, Solvay’s biggest since 2011, looks pricey. But there should be tax savings, a sales boost, and a chance to ride the global shale boom.
Ackman has Air Products catalyst, now for reaction 26 Sep 2013 The activist hedgie has dislodged the gas firm’s underperforming boss, John McGlade. That quick win brought him a sharp gain of about $100 mln on his 10 pct holding. For bigger, more lasting success, however, a painstaking transformation of the company is now needed.
ThyssenKrupp’s pride well worth 1 billion euros 1 Jul 2013 That’s how much new capital the German steelmaker may need. The RAG foundation, a local rival to the one that controls Thyssen, seems willing to buy a stake. While hurting vanities, this would be an elegant fix to the company’s woes. Pride is a luxury Thyssen can’t afford.