Companies & Funds

Zegna tailors elegant fix for BuzzFeed problem

6 Dec 2021

The Italian suit-maker and the millennial media group are both going public through SPACs. But Zegna has raised extra funds that kick in if investors extract money before the deal closes, as 96% of BuzzFeed’s did. With cash comes confidence; Buzzfeed ended up with less of both.

Boots exit may smooth way for Walgreens buyout

6 Dec 2021

The $40 bln drugstore operator may sell its UK chain, less than a decade after buying it. A sale could raise $8 bln for the U.S. group to beef up its own in-store clinics. And if Chairman Stefano Pessina wants one last big deal, a leaner Walgreens would be an easier target.

Capital Calls: Fund services M&A, Mattress mystery

6 Dec 2021

Concise views on global finance: Shareholders of Amsterdam-listed Intertrust dodge a regulatory crackdown with a 1.8 bln euro sale; the western man credited with Chinese retailer DeRucci’s success finally has his identity revealed.

Saint-Gobain’s U.S. deal will cement its Sika envy

6 Dec 2021

The $34 bln French construction firm tried and failed to buy its Swiss rival, which then went on a growth spurt. Saint-Gobain’s $2.3 bln offer for U.S. group GCP will help it decarbonise. The catch is that Sika made a similar move last month, and the returns on that look better.

UK health robot SPAC is punt on big pharma buyout

6 Dec 2021

The Zaoui brothers are merging their blank-cheque firm with BenevolentAI, which uses tech to discover new drugs. A $440 mln cash infusion will keep computers whirring, but revenue remains distant. Investors including AstraZeneca and Sanofi’s former CEO hint at a future takeover.

Alibaba’s new CFO signals shifting priorities

6 Dec 2021

The Chinese e-commerce company, whose market value has halved to $300 bln this year, is replacing finance chief Maggie Wu. During her seven-year tenure, Alibaba successfully courted foreign investors. Successor Toby Xu’s experience suggests there will be a greater focus at home.

China property market faces more nationalisation

6 Dec 2021

Evergrande, the country’s most indebted developer, has admitted it might formally default. With $10 bln in property bonds maturing in January alone, officials are under pressure to keep the sector from collapsing. The most expedient solution is to put more housing in state hands.

Capital Calls: Zoom, U.S. jobs

3 Dec 2021

Concise views on global finance: The video-conferencing service is investing in Amex Global Business Travel as part of a $5.3 bln SPAC deal; in the United States, only 210,000 positions were added in November, but the unemployment rate fell.

DocuSign shows risk of investing along dotted line

3 Dec 2021

A slowdown in demand ripped $18 bln off the digital document-signing firm’s market value. The company’s response – spending more to revive sales – adds to the near-term pain. For profitless companies reliant on ambitious forecasts, sharp corrections are a signature move.

Nordic drug buyout flop highlights hidden gem

3 Dec 2021

The $8 bln takeover of Swedish Orphan Biovitrum failed after buyers could not secure 90% of the shares. The market reaction suggests the deal is dead. But investor AstraZeneca’s role in the failed bid and its interest in a respiratory disease treatment provides some comfort.

Transatlantic food delivery value gap will narrow

3 Dec 2021

DoorDash and Just Eat Takeaway have similar revenue and growth prospects, but the $57 bln U.S. firm is worth four times as much as its Dutch rival. Better profitability and an earlier move into groceries helps explain the gap. DoorDash’s push into Europe suggests it won’t last.

Didi faces long and perilous journey to Hong Kong

3 Dec 2021

The $38 bln ride-hailing group is eschewing its New York listing for one in the Asian hub amid pressure from Beijing. A take-private would be costly; migrating American depositary receipts could be tricky. Didi will have to navigate Hong Kong's tougher IPO requirements too.

Legal challenge affirms logic of Nvidia mega-deal

3 Dec 2021

U.S. trustbusters are suing to block the chipmaker’s controversial Arm acquisition. A growing price tag, from $40 bln to about $75 bln, undermines the financial value. At least the FTC is, in a way, buttressing the strategic rationale of buying the Switzerland of semiconductors.

It’s a dangerous time to buy China’s property dip

3 Dec 2021

Small Chinese developer Fantasia shocked markets when it defaulted on a $206 mln bond out of the blue, despite $4 bln in cash on its balance sheet. Now creditors are pushing it toward bankruptcy. Investors eying distressed property bonds should think twice; Fantasia has company.

Super-app Grab gets rear-ended

3 Dec 2021

The group’s shares plunged 20% on debut following its $31 bln SPAC merger. Unlike China’s Didi or India’s Paytm, the crash wasn't so much its fault; the Altimeter- and Temasek-backed deal was well-enough constructed. But Grab is in a market pile-up that won’t clear soon.

Bruised UK fund manager throws pricey counterpunch

2 Dec 2021

After years of struggling to hang onto assets, Abrdn is buying consumer platform Interactive Investor for 1.5 bln pounds. It brings growth and a chance to steal share in personal savings. The challenge is ensuring its expensive new bauble shines inside a stodgy asset manager.

Disney meets low bar with new chair

2 Dec 2021

Susan Arnold gave up her job at Carlyle and will succeed Bob Iger as chair of the $260 bln firm. That’s a step better than Twitter. But her 14-year tenure is well above average and edges up to Disney’s parameters. It suggests the media giant could have planned succession better.

Lululemon-Peloton union makes more sense than feud

2 Dec 2021

The exercise firms are locked in legal tussles and each is encroaching on the other’s turf. Given the bike maker’s share price has fallen two-thirds this year and there are obvious costs to cut, the sporty clothing specialist’s better option is to make an offer for its adversary.

CSL’s Swiss drug punt looks like a bad trip

2 Dec 2021

The $99 bln Aussie jab maker is in talks to buy iron-deficiency specialist Vifor for around $7 bln. CEO Paul Perreault has a track record of strong growth and winning M&A. The prospect of subpar returns and a looming patent expiry suggest his golden touch is losing its lustre.

Capital Calls: Dan Loeb, Daily Mail

2 Dec 2021

Concise views on global finance: The billionaire activist swats away his own gadfly investor; the UK tabloid’s controlling Rothermere family sweetens its take-private offer, to the presumable delight of the campaigners on its news desk.