Deals

JetBlue has its “Top Gun: Maverick” moment

28 Jun 2022

With two days before a key deal deadline, the budget airline has pulled out some creative aerobatics to win over target Spirit, and swat away a favored rival bid by Frontier. The offer of more cash up-front is daring – but takes JetBlue’s shareholders deep into the danger zone.

Green deals overcome markets flashing red

28 Jun 2022

Despite widespread investor risk aversion, China’s EV battery giant CATL just raised $6.7 bln in new equity. The decarbonisation theme is dominating big stock sales. Supply chains and higher costs are a concern, but the Ukraine war will help keep capital coming to clean energy.

India’s Zomato gorges on a deal in lean times

27 Jun 2022

As tech companies tighten their belts, half the country’s food-delivery duopoly is paying $570 mln for grocery outfit Blinkit. SoftBank and other sellers swap a down round for a safety net. Using richly valued stock should make it more palatable for the buyer’s shareholders.

Peter Thiel-tied fund fights China fire with fire

24 Jun 2022

A nonprofit fund backed by Silicon Valley bigwigs wants to invest in tech that serves national interests. It raises conflicts, security issues, and takes a page from Beijing's playbook. But given China’s market meddling, it’s not a horrible solution.

Barclays adds risky spice to insipid valuation

24 Jun 2022

The UK bank is scooping up specialist lender Kensington for nearly $3 bln. It’s small, and CEO C. S. Venkatakrishnan is right to try to gee up his low-valued shares with retail assets. Still, he’s also bulking up in the riskier end of the market amid a potential house price dip.

Too bad Netflix isn’t on the block

23 Jun 2022

Boss Ted Sarandos is exploring an advertising partnership to supplement the $80 bln firm’s subscription service. Yet media alliances – Netflix, Hulu, others – have turned ugly. Netflix’s valuation has fallen steeply, and it needs deep cash coffers. A better idea would be a sale.

Capital Calls: Bank stress tests, Japan inflation

24 Jun 2022

Concise views on global finance: U.S. lenders passed the latest Federal Reserve capital exams, but they’re bound to be more stressful next time; the country’s consumer prices rose 2.1% in May, intensifying a standoff between the central bank and bond investors.

Capital Calls: SoftBank Arm-twisting

22 Jun 2022

Concise views on global finance: The UK government may be eyeing desperate measures to keep SoftBank-owned chip group Arm's IPO in London.

Capital Calls: Spirit dogfight costs more each day

21 Jun 2022

Concise views on global finance: Hostile suitor JetBlue bumped up its offer for the budget airline. The bidding war with rival Frontier Airlines is getting more expensive, even as the cost of corporate debt – and thus the burden for the winning suitor – keeps rising.

Euromoney offers warm glow in buyout freeze

21 Jun 2022

The London-listed financial data and events firm is evaluating a $2 bln takeover offer from a private equity consortium. Despite a chunky premium, the buyer can make a decent return with a modest margin boost and limited debt. These qualities may yet attract other bidders.

Capital Calls: Hydrogen IPO, Call centre M&A

20 Jun 2022

Concise views on global finance: Despite Thyssenkrupp postponing its clean energy listing, De Nora is still pressing on with its own one at a lower 3 bln euro valuation; customer-service group Sitel agrees to buy 2.6 bln euro rival Majorel in a cash-and-stock deal.

Baidu video sale hints at a China tech plot twist

16 Jun 2022

The search-engine operator may divest its Netflix-like streaming arm in a $7 bln deal. Ordinarily rivals like Tencent would welcome the opportunity, but the recent anti-trust crackdown will deter them. That clears the way for otherwise unlikely bidders, including state companies.

Capital Calls: Antitrust cops’ quixotic PE warning

14 Jun 2022

Concise views on global finance: Competition chief Lina Khan is using a run-of-the-mill deal to issue a broadside against private equity – but it’s unclear what these tough words mean in practice.

Netflix M&A ad ponder has expensive logic

9 Jun 2022

Boss Reed Hastings has opened the door to advertising as an alternative source of revenue to combat a decline in streaming subscriptions. Buying a platform to kickstart the initiative makes sense – Roku is an obvious candidate. The problem is that prices are still too high.

Capital Calls: China and Australian coal

7 Jun 2022

Concise views on global finance: Chinese coal miner Yankuang Energy may have to increase its offer to Yancoal Australia’s minority shareholders.

Terms don’t kill deals, people do

6 Jun 2022

Thoma Bravo and Anaplan have renegotiated their transaction. Elon Musk officially threatened to back out of his $44 bln buyout of Twitter. Nervous markets make mergers less likely to close. The strength of agreements matters less than the fortitude of directors hashing out deals.

Big four breakup plan, America’s big spenders

2 Jun 2022

EY is considering splitting its audit unit from its fast-growing consulting practice. In this Viewsroom podcast, Breakingviews columnists debate a possible $60 bln valuation and why the plan may create few winners. Also, inflation is creating a murky economic picture stateside.

SPACs go back, but with no future

1 Jun 2022

A freight firm with little revenue and ambitious projections agreed to a $500 mln blank check merger, while Forbes has called its SPAC tie-up off. Looming regulations have taken the shine off these once-popular deals. Banks and companies who stay the course are taking a risk.

AC Milan’s soccer triumph rubs off on Elliott

1 Jun 2022

The U.S. fund is selling the Serie A winner to private equity firm RedBird for $1.3 bln, nearly 5 times sales. That’s rich for a club with chronic losses. After a challenging first half and the pandemic, Elliott looks to have made a respectable return from the Italian team.

Capital Calls: Inflation-proof Dr Martens, Saipem

1 Jun 2022

Concise views on global finance: The UK bootmaker’s polished results offer glimmer of hope to embattled retailers; the Italian energy-services group reassures investors with $550 mln sale of its onshore drilling unit.