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.
Gold Fields shells out to beat the ageing process 31 May 2022 The Johannesburg miner is buying Canada’s Yamana in a $6.7 bln all-share deal, creating the world’s fourth-biggest bullion producer. Scant cost savings don’t justify the premium. Given his middle-aged mines, CEO Chris Griffith has little option but a target with a longer future.
ESG raider needs to dig deeper 31 May 2022 Jeff Ubben’s Inclusive Capital has made a $1.9 bln offer for UK homebuilder Countryside. It’s both a bet on the need for more affordable housing, and an opportunistic raid on a target tainted by governance woes. But the ValueAct founder’s lowball bid needs a little sprucing up.
DSM stocks up on ingredients trend with Swiss deal 31 May 2022 The $29 bln Dutch producer of food supplements is swallowing family-owned Firmenich for shares and 3.5 bln euros in cash. That boosts its appeal with consumer groups seeking to manipulate taste, smell and texture. By making concessions on governance, DSM has got a decent price.
Geely-backed auto SPAC deal revs up too fast 31 May 2022 Unprofitable maker of tech for car cockpits, Ecarx, is going public via a $3.5 bln sale to a blank-cheque firm, but a plan to boost its sales beyond Li Shufu’s marques looks ambitious. The record Chinese deal requires a leap of faith so soon after Didi’s wild listing ride.
Italian telecom network Plan B will be hurdle race 30 May 2022 Telecom Italia and a state-controlled rival want to merge their broadband networks. For KKR, which owns a stake in the $6 bln incumbent’s last-mile unit, it’s a consolation after a failed takeover. Yet any agreement will need to win over investors, bondholders, and regulators.
Busted AGL breakup clears smoggy climate thinking 30 May 2022 The $4.3 bln power producer is ditching half its board, including the CEO and chair, after billionaire Mike Cannon-Brookes rounded up support to torch a demerger plan. With the obstructive old guard gone, it can more swiftly shed coal, be it under new leadership or a new owner.