Deals

Capital Calls: Sarkozy’s trial

1 March 2021

Concise views on global finance in the Covid-19 era: the former French prime minister’s conviction for trying to bribe a judge creates a new dilemma for the companies on whose board he sits, including hotel chain Accor.

Danone has plenty more cash cows to milk in China

1 March 2021

Chief Executive Emmanuel Faber has unveiled his latest plan to placate activist investors. He wants to sell its $2 bln stake in China Mengniu Dairy. It means pulling out of a growing firm. But peddling Danone’s own brands to thirsty Chinese consumers will keep the cream flowing.

Capital Calls: CPPIB, Barclays, McPlant, DoorDash

26 February 2021

Concise views on global finance in the Covid-19 era: Canada Pension Plan Investment Board's CEO is booted for jab-line jumping; the UK bank wins a legal, if not ethical, victory over financier Amanda Staveley; Beyond Meat partners with McDonald’s and Yum; and DoorDash is too hot.

Evergrande contagion tests Beijing’s generosity

26 February 2021

China’s $10 bln retailer Suning.com threw a financial lifeline to the troubled property developer. Its founder is now selling a controlling stake as the embattled group faces $5 bln of debt due this year. A government bailout, which may be imminent, would send the wrong message.

AT&T clumsily cuts the cord on DirecTV

26 February 2021

The U.S. telecom titan is spinning off its pay-TV business in a $16 bln deal, six years after buying it for $67 bln. TPG will share control while kicking in just $1.8 bln for a 30% stake that includes a 10% cash coupon. It’s a pricey way to ease out of a disastrous acquisition.

Capital Calls: Pharma, Volvo delay, Hotels

24 February 2021

Concise views on global finance in the Covid-19 era: Big Pharma’s new popularity could give it leverage in Congress; China’s Geely can profit from Volvo IPO delay; and boutique hotels feel the heat.

Aussie jobs firm careers into a messy overhaul

24 February 2021

Shares in $8 bln Seek tanked 14% on plans to break in two, lose its founder-CEO and cut its prized stake in Zhaopin. At 14 times EBITDA, the sale values the Chinese unit in line with rivals but lower than Seek’s frothy multiple. Management and investors both deserve a bad review.

Capital Calls: WeWork, HSBC offices, Wells Fargo

23 February 2021

Concise views on global finance in the Covid-19 era: Co-founder Adam Neumann may get a big payment for failure after all; The bank’s plan to shrink its property footprint recalls an earlier effort; And the scandal-plagued lender takes another small step towards rehabilitation.

Capital Calls: Petrobras CEO, Kohl’s

22 February 2021

Concise views on global finance in the Covid-19 era: Brazilian President Jair Bolsonaro nominates a former general to replace the oil group's market-friendly boss, tanking the shares; and U.S. department store Kohl’s has some unhappy shareholders.

Aussie bank deal leaves rarity value on the table

22 February 2021

Four lenders dominate Down Under. That ought to mean the second tier has to dig deep for mergers that help them compete. Yet at $1 bln Bank of Queensland is paying just over book value for ME Bank. It’s a reality check for the other targets no matter how digital-savvy they are.

Capital Calls: Third Point, Kraft Heinz/Hormel

11 February 2021

Concise views on global finance in the Covid-19 era: Dan Loeb’s hedge fund gets a good start in 2021, while Hormel Foods buys peanuts, but pays anything but.

Japanese animation draws rich cast of characters

10 February 2021

Sony beefed up in anime by paying $1.2 bln for AT&T’s Crunchyroll. Netflix is investing in the $24 bln market, HBO locked up Hayao Miyazaki’s coveted catalogue and movies like "Demon Slayer" are becoming box-office hits. IP-hungry companies could put valuations into fast motion.

Capital Calls: Jay vs. Larry

10 February 2021

Concise views on global finance in the Covid-19 era: Jerome Powell takes on Larry Summers in the inflation debate.

Japan’s Renesas steers towards chip M&A pileup

8 February 2021

It's trying to buy UK-based Dialog for $6 bln less than two years after taking over similarly sized IDT. Booming demand for semiconductors used in cars makes it strategically appealing, but the implied return on investment looks unimpressive. The deal engine could be overheating.

Sinopharm inhales invigorating Chinese herbs

28 January 2021

The pharma giant is planning to take Hong Kong-listed China Traditional Chinese Medicine private in a $3.3 bln deal. The market's growth, high margins and political support justify the premium. Relisting on the mainland at a richer valuation will be good for shareholders’ health.

KKR owes $1.3 bln debt of gratitude to China

15 January 2021

Applied Materials will pay the buyout shop $3.5 bln for smaller peer Kokusai instead of the $2.2 bln agreed in 2019. Beijing has delayed giving its blessing so long that the microchip sector improved. The rare upward price negotiation should help even if the deal falls through.

Cleanup peeks through India’s distressed deal mess

7 January 2021

Competing $5 bln bids from Oaktree and Piramal for collapsed housing lender DHFL look closely matched on a mix of criteria. Missed deadlines and mudslinging have marred the process. And yet better recovery rates and a jailed tycoon are good signs for the young insolvency regime.

Li Ka-shing buybacks would rebuild value

6 January 2021

Cash is rolling in from $28 bln CK Hutchison’s restructuring of European and Canadian assets. The Hong Kong billionaire’s ports-to-pharmacies group plans to repurchase stock. With deal-making curtailed by geopolitics, shareholders will appreciate the gesture.

Grab CEO will step into 2021’s tech limelight

21 December 2020

Anthony Tan has steered his $15 bln super-app through the pandemic. With growth in digital payments booming across Southeast Asia, Grab is now charging into wealth management and digital banking. A mooted merger with rival Gojek will only cement Tan’s rising star status.

Hong Kong SPAC deal reeks of desperation

11 December 2020

Marquee names from Joseph Perella to Shaquille O’Neal have lent some legitimacy to the recent spate of shell companies. One near its expiry date trying to buy parts of scandal-ridden financial outfit Convoy strips away the veneer. It’s a good reminder to be wary of such M&A.