Choice Hotels takes a vacation from reality 21 Nov 2023 The Comfort Suites operator has taken another stab at its unsolicited and unwelcome $9.8 bln offer for rival Wyndham. The part-shares deal is easy to rebuff in a wobbly market where cash is king. But switching it to cash could leave Choice with hefty debt and unhappy customers.
Telegraph M&A twist hinges on Gulf leniency 21 Nov 2023 A vehicle backed by Abu Dhabi and a US buyout firm may take control of the newspaper by paying off the debts of its longtime Barclay family owners. Lender Lloyds would win. Yet it all hangs on potentially risky Gulf loans to the Barclays, whose main business is hardly thriving.
Payments sector comedown creates opening for M&A 17 Nov 2023 The once-hot industry has slumped amid rising competition and a possible regulatory clampdown. For online specialists like $34 bln Adyen, the solution is to boost their customer offerings by buying startups. Older players like Nexi and Worldline, meanwhile, are ripe for mergers.
Mars’ posh pivot comes with a rich price 16 Nov 2023 The privately held Snickers maker is buying upmarket British brand Hotel Chocolat for $662 mln. Its premium products may benefit as consumers move away from cheap sugar-rich snacks. But UK shoppers are stretched, and Mars will need rapid growth to make an appetising return.
Capital Calls: Walmart, HelloFresh 16 Nov 2023 Concise views on global finance: Although the US retailer lost nearly 8% of its market value after it indicated that price increases are starting to ease, it should be able to navigate the challenge; the 2.7 billion euro meal-delivery company has become a tasty buyout target.
Two Disney activists aren’t better than one 15 Nov 2023 Mason Morfit’s ValueAct has taken a stake in the $168 bln Magic Kingdom, where it can take its own pushy path or work with fellow cage-rattler Nelson Peltz to shake things up. Dueling campaigns would make boss Bob Iger’s job easier. Tag-teaming doesn’t guarantee success.
Natura takes a bath to pass on Body Shop stink 14 Nov 2023 The Brazilian beauty giant is selling the shower gel retailer for around $260 mln six years after buying it from L’Oréal for $1.1 bln. The 80% price discount reflects the eco-friendly brand’s loss of relevance. For buyer Aurelius, restoring glow requires applying a lot of polish.
Payments-app war drags banks into discomfort zone 14 Nov 2023 The US lenders behind Venmo rival Zelle, including JPMorgan and Bank of America, are now compensating victims of some online scams. They’d rather not, and technically shouldn’t have to. In the cutthroat fintech market, however, customers can be right even when they’re wrong.
Glencore deal is necessary detour on breakup path 14 Nov 2023 CEO Gary Nagle is buying 77% of Teck Resources’ coal arm for $6.9 bln as a prelude to a dirty-fuel spinoff. It’ll backfire if prices fall or authorities intervene. But it’s worthwhile given the reasonable valuation and chance to build a more appealing coal unit for investors.
Vodafone CEO M&A job boosts Italy deal confidence 14 Nov 2023 After successfully offloading the telco’s UK and Spanish arms, Margherita Della Valle may sell all or part of its slowing Italian business. Rival Iliad is the top contender. But the division is now worth perhaps 2 bln euros less than what tycoon Xavier Niel offered last year.
More US-China take-privates could get feisty 14 Nov 2023 A bidding war has erupted for $1.4 bln Nasdaq-listed industrial automation solutions firm Hollysys. One would-be buyer even staged a dawn raid. If a deal succeeds, minority owners of undervalued peers could push for more value, too, as Chinese companies bid farewell to the US.
Alphabet and Robinhood split at rate fork in road 13 Nov 2023 The web search giant sold its stake in the online trading company as their shares head opposite ways. Google’s parent can thrive in a steady economy while Robinhood depends more on faster growth and high-yielding accounts. Elevated borrowing costs favor cash-generating tech.
WWE McMahon’s slugfest loss is shareholder win 13 Nov 2023 The person behind the professional wrestling firm is selling shares just after it merged with Endeavor’s UFC. That could be a precursor to him bowing to Hollywood mogul Ari Emanuel. McMahon may feel it’s anticlimactic. But giving investors clarity on leadership is a victory.
Meta’s China quest thaws thin layer of dense cube 10 Nov 2023 The $828 bln social media company plans to sell virtual reality headsets in the country, 14 years after its Facebook service was banned there. Hardware is a less thorny way to grab revenue. It also puts pressure on the US government to soften its stance on some Chinese tech.
Ping An highlights China property and policy risks 9 Nov 2023 Beijing wants to broker a bailout of troubled developer Country Garden by the $100 bln insurer, Reuters reported. Ping An denies it has been asked. Yet it’s a warning that, as local governments try to defuse debt bombs, even large private companies may face pressure to help.
Private equity superstores overstock the shelves 8 Nov 2023 Blackstone and Apollo say diversification into credit, real estate and beyond makes them better investors. They have been outraised and often outperformed, however, by more focused buyout shops like CD&R. It will take consistently higher returns to justify the conglomerate model.
Telefónica $2 bln German swoop is cheap but risky 7 Nov 2023 The Spanish telco is offering to buy out its Teutonic arm’s minority investors. On the surface, it’s a good time to pounce given the unit’s recent slump. But the immediate financial benefits are sketchy, and the debt-laden parent may have to wait years for a German turnaround.
Morgan Stanley’s new CEO inherits rich pickings 2 Nov 2023 Ted Pick has the money and backing of predecessor James Gorman to make acquisitions that will help the $120 bln Wall Street firm service more of the global elite. While many potential targets look cheap, he can take his time. The most enticing prospects aren’t for sale yet.
Sanofi sickness calls for activist tonic 2 Nov 2023 The pharma group lost nearly $27 bln of market value as it announced more investment in drugs. To keep investors happy, CEO Paul Hudson can sell its consumer business, step up dealmaking and buy back shares. Its long-suffering shareholder L’Oréal has reason to back bold action.
Brookfield’s energy transition Plan C may yet work 2 Nov 2023 The investor’s improved and final $13 bln co-bid for Australia’s Origin looks set to fail after pension fund AusSuper rejected it. A new tweak means the bidders can then launch a tender offer. It would be a desperate messy affair, but Brookfield could emerge with the upper hand.