Hostile warehouse deal just about stacks up 11 May 2022 Real estate firm Prologis wants to buy smaller rival Duke, which has previously rejected a tie-up. The $24 bln all-stock deal represents a 29% premium, which should withstand lurching markets since both firms’ shares tend to move in tandem. It’s appealing enough to deserve a hearing.
“Temptation Island” SPAC dangles drama and sequels 11 May 2022 Banijay, maker of the reality TV show, will merge with betting firm Betclic through a blank-cheque firm, valuing both at 7 bln euros. It’s an odd mix with few synergies, offset by a reasonable valuation. Founder Stéphane Courbit gets a cleaner balance sheet for more deals.
Reinvention tops returns in Philip Morris snus bet 11 May 2022 The tobacco giant has agreed a $16 bln takeover of nicotine pouch maker Swedish Match. The deal brings it closer to being mostly smoke-free by 2025. But only rapid growth or big cost cuts can justify the 39% premium. CEO Jacek Olczak has scant room for legal or regulatory snafus.
Twitter board is dangling over hot water 10 May 2022 The social media company’s directors did not conduct an auction to seek rival offers to Elon Musk’s $44 bln bid, and some have overlapping interests. That leaves them open to accusations of conflicts of interest. Whether the deal goes ahead or not, the board looks exposed.
Pfizer plucks Biohaven out of biotech bears’ lair 10 May 2022 Like tech firms, speculative drugmakers flooded the market in recent years, and valuations rose to unsustainable highs. Now stocks like migraine-specialist Biohaven have crashed back to earth. Pfizer’s cleverly structured $12 bln swoop suggests that’s an opportunity for some.
Grindr’s SPAC profile picture is a blur 10 May 2022 The LGBTQ community’s favoured dating app is listing via a merger with a blank-cheque firm run by a major shareholder. The $2.1 bln price tag looks chunky next to peers like Bumble. Besides data security and governance, investors can fret about potential conflicts of interest.
Philip Morris’ snus deal looks doubly defensive 9 May 2022 The U.S. cigarette maker could beat a faster path to becoming a mostly smoke-free company if it snags the $12 bln Swedish Match and its chewable tobacco packs. A tie-up would be pricy, but investors’ growing yen for recession-proof stocks gives the Marlboro Man an added edge.
Property tie-up puts London landlords in charge 9 May 2022 Capco, owner of retail hub Covent Garden, is planning a 3.6 bln pound merger with West End neighbour Shaftesbury. Capco’s 25% stake in its larger rival helps explain the absence of a premium. If regulators approve, the main benefit will be greater bargaining power with tenants.
Chelsea buyer will struggle in financial league 9 May 2022 A group led by LA Dodgers owner Todd Boehly and U.S. buyout firm Clearlake will pay $3 bln for the UK soccer club. Unlike current owner Roman Abramovich, they’ll be eyeing a return on their investment. Yet $2 bln of pledged spending, including a new stadium, make that tricky.
Musk coinvestor roster underwhelms multiple ways 5 May 2022 Placing money alongside the world’s richest man should be an easy pitch. But tech heavyweights backing his $44 bln Twitter bid with $7 bln still leave a hole, and checks from smaller investors suggest he was scraping the barrel. It indicates skepticism about Musk’s latest idea.
Switch may be high-water mark for data center M&A 3 May 2022 The company, in which activist Elliott has invested, could attract a bid from Brookfield. Even after 2021’s landmark deals, a market cap of nearly $8 bln would make Switch a pricey target. With tech valuations under pressure, this might be the top for data-center dealmaking.
Russian nickel king laughs all the way to the bank 3 May 2022 Vladimir Potanin has snapped up his third financial asset since the war began. The Norilsk Nickel CEO has so far evaded U.S. sanctions despite links to President Putin. Dozens of Russian billionaires are in similar boats, poised to make out like bandits from the Western exodus.
Breakup opposition will smoke out AGL’s C-suite 3 May 2022 A lacklustre plan to split coal power from the retail business is sputtering after Atlassian co-CEO Mike Cannon-Brookes grabbed an 11% stake and vowed to vote no. It leaves boss Graeme Hunt and his team vulnerable. Their exit would open the door to a fresh takeover approach.
Capital Calls: JetBlue antitrust risk haunts Spirit 2 May 2022 Concise views on global finance: The low-cost U.S. airline rejected its midmarket rival's takeover offer. Spirit reckons that even a price 50% higher than its agreed sale to Frontier doesn't compensate for Washington's anti-merger stance.
Elon Musk Twitter coinvestors will be rare birds 2 May 2022 The billionaire’s $44 bln bid for the social media group stretches his Tesla wealth. Lenders with claims on Twitter’s cash are handing him a quarter of the price. But managers of other people’s money, like buyout firms, will struggle to justify investing with the mercurial Musk.
HSBC breakup push requires delicate brushoff 1 May 2022 Chinese insurer Ping An wants the $125 bln bank to spin off its Asian arm. Overall performance has been disappointing, but a messy and costly split could negate any valuation uplift. The challenge for Chair Mark Tucker is to politely tell his biggest investor that it’s wrong.
UK grocer buyout creates bond market indigestion 29 Apr 2022 Banks led by Goldman and BNP Paribas that funded CD&R’s $9 bln Morrisons buyout have sold a chunk of the debt at a big discount. Inflation and a supermarket price war mean bondholders can now name their price. The debt hangover may make other deals trickier.
Musk has at least three Twitter problems to fix 28 Apr 2022 In the first quarter, the $37 bln network’s expenses rose twice as fast as revenue. Users were up 16%, but Twitter admitted it had mistakenly puffed those up in the past. Plus, still it hasn’t proven it can be regularly profitable. That all takes attention Musk may not have.
Elon Musk probably won’t buy Twitter 27 Apr 2022 Sure, the Tesla boss will be on the hook for at least $1 bln if he walks away from the $44 bln deal. But shares in his electric-vehicle firm could rise by more than he loses. The risks to Musk’s China business, regulatory pushback, and Musk’s general flightiness further lengthen the odds.
Elon Musk’s Twitter deal sullies his climate cred 27 Apr 2022 The Tesla CEO’s master plan is to combat global warming, which he calls the “biggest threat” to humanity. Committing most of his available wealth to buying a social media company doesn’t much help the cause. It’s a $33 bln missed opportunity to reduce even more carbon emissions.