Capital Calls: AMC’s meme investor backlash 18 Jul 2023 Concise views on global finance: A new lawsuit looking to force a shareholder meeting adds to growing antagonism between $2 bln movie theater chain AMC and the retail investors who buoyed its business during the pandemic. For boss Adam Aron, meme stock stardom comes at a cost.
Sony’s Microsoft truce marks new gaming reality 17 Jul 2023 After opposing its US rival's $69 bln Activision buy, the Japanese group signed a deal over the latter's "Call of Duty" title. It will help Microsoft appease regulatory holdouts, but Sony benefits too. Boss Kenichiro Yoshida can now focus on how to outplay the sector's behemoth.
Activision’s comeback raises $69 bln question 13 Jul 2023 After defeating US trustbusters in court, Microsoft may need more time to seal the deal with UK authorities. The 45% premium struck when the “Call of Duty” maker was reeling looks less generous 18 months later. If negotiations drag, boss Bobby Kotick could push for a sweetener.
Amazon’s fumbled M&A leaves few good options 13 Jul 2023 The $1.3 trln giant splurged on grocer Whole Foods and movie studio MGM. But it hasn’t disrupted these sectors as hoped. Instead, both divisions are becoming more expensive and less promising. Ditching one would be an option if it weren’t so financially painful.
Bain’s Chindata buyout saga verges on absurd 13 Jul 2023 The US investment firm last month offered $2.9 bln for the Chinese data centre operator it already controls after potential rival bids yielded nothing. Now a state-backed group has bested Bain’s offer by 15%, yet is being ignored. It’s an odd way to get the best deal all round.
Capital Calls: Exxon’s $5 bln carbon-capture deal 13 Jul 2023 Concise views on global finance: The oil giant is using its own shares and paying a tiny premium to buy Denbury, the largest US carbon dioxide pipeline operator, in a greenish-looking transaction that mostly helps it pump more crude.
Microsoft-Activision deal not yet game on 12 Jul 2023 The $2.5 trillion tech giant has beaten down the US antitrust regulator. But the similar counterpart in the UK is digging in. Microsoft will have to either renegotiate its $69 billion deal with the gaming company or offer concessions, and then go through approval again.
Capital Calls: Illumina, Domino’s Uber delivery 12 Jul 2023 Concise views on global finance: The EU fines the $30 bln genetic test maker 432 mln euros for closing its 2021 Grail deal prematurely; the pizza chain known for its own delivery app is expanding its service with Uber Eats, a smart move to nab more orders from fickle customers.
Kering’s beauty drive has flashy precedent 12 Jul 2023 François-Henri Pinault paid $4 bln for upmarket perfumes brand Creed, says the FT. At 23 times EBITDA, the deal isn’t cheap but high margins and rapid growth mean it should pay off. It may also allow Kering to fully control its scent business, a gamble that worked with eyewear.
History is against UK and Spanish telecoms M&A 12 Jul 2023 Vodafone and Orange have deals worth $40 bln on antitrust agencies’ desks. Europe has only once approved a similar merger without competitive remedies, which involved a tiny Dutch player. The telcos may have to make big concessions, undermining their tie-ups, or accept defeat.
Drone IPO gives wings to India’s defence industry 11 Jul 2023 IdeaForge’s shares have nearly doubled since their debut, giving the government supplier a $586 mln valuation – or 151 times trailing earnings. It’s a bet that New Delhi will upgrade its military amid tensions with neighbours. India’s defence stocks look primed for takeoff.
Private equity gears up for a deal fest Down Under 11 Jul 2023 Blackstone, EQT, CVC and peers are shifting resources to Australia, partly due to geopolitical tension. The country’s stumbling economy will also leave property, consumer and other firms ripe for buyouts. That means M&A battles – once inflation, rates and debt markets settle.
Ocado has better options than a cheap sale 7 Jul 2023 Bid hopes have pumped up the $6 bln grocer-cum-warehouse operator’s shares. Yet retailers like Amazon would struggle to buy a company that also works for competitors. CEO Tim Steiner could instead sell the UK business, letting the market value Ocado more like rival AutoStore.
Worldpay deal gets buyouts halfway back to normal 6 Jul 2023 Private equity shop GTCR is scooping up 55% of the payments firm at an $18 bln valuation, gifting seller FIS a rich price without any IPO hassle. The transaction defies weak debt and M&A markets, but it also requires flexing fundraising muscles to underpin a huge cash outlay.
Capital Calls: JetBlue’s Spirit sacrifice 6 Jul 2023 Concise views on global finance: The budget airline says it won’t fight a court order nixing a partnership with a larger rival to allay concerns about its $4 bln deal for peer Spirit. It’s unlikely to satisfy antitrust enforcers.
How UBS can cling on to its Swiss purchase 6 Jul 2023 CEO Sergio Ermotti is under pressure to offload Credit Suisse’s local unit to ease political anger over the mega bank merger. But selling it could jettison prized wealth assets and $1-2 bln in annual savings. If UBS avoids mass layoffs it will have a stronger case for keeping it.
Czech sphinx’s Casino bet trumps French insiders 5 Jul 2023 The retailer must choose between two offers to cut its 6.4 bln euro debt load. Daniel Kretinsky’s deal brings more equity, helping the grocer spruce up stores and compete. But he will need France to ditch its preference for domestic owners like rival tycoon Xavier Niel.
Sea giant MSC sets sail on erratic M&A journey 4 Jul 2023 After expanding into logistics and eyeing an airline, the maritime firm may buy a train operator for $6 bln. Diversification is key to countering a shipping downturn. MSC’s owner, the Aponte family, is right to deploy its ample cash reserves, but the bet may prove expensive.
Capital Calls: KKR’s reluctant bidding war 30 Jun 2023 Concise views on global finance: Despite pushing arguments about antitrust and financing risks, the buyout shop ended up parrying a rival suitor for industrials company Circor by matching it on price.
KKR adopts M&A’s new rules in bidding war 28 Jun 2023 A smaller private equity shop is gatecrashing Henry Kravis’s firm and its $1.7 bln deal to buy industrial company Circor. KKR’s response: offer more certainty, not a better price. Hawkish regulators and shaky debt markets are changing dealmakers’ priorities.