India’s Reliance is miscast as M&A stalking horse 21 Apr 2022 Mukesh Ambani’s $230 bln conglomerate is touted as a bidder in big deals from Walgreens’ Boots sale to telecom operator BT. Reliance’s record suggests it’s hardly the new dumb money. Bankers trying to fill a void left by sovereign funds and Chinese buyers may be disappointed.
Musk’s Twitter tilt comes at bad time for Tesla 20 Apr 2022 The billionaire’s quixotic offer for the social-media group will be too big a distraction from running the $1 trln electric-car maker. Tesla faces disruptions from rising costs, supply-chain woes as well as more competition for scarce resources. That demands Musk’s full focus.
Just Eat Takeaway faces humiliating U.S. exit 20 Apr 2022 The food delivery group may sell Grubhub, a business it bought last year for $7.3 bln, an embarrassing U-turn for CEO Jitse Groen. Expanding into the tough U.S. market always looked tricky. Getting out when there are few buyers, just as consumers are squeezed, will be harder.
Capital Calls: KKR and Australia, Danone 20 Apr 2022 Concise views on global finance: The private equity firm’s offer for Ramsay Health Care would almost double Down Under M&A by value this year; the French consumer group’s sales growth boost is offset by inflation fears.
Capital Calls: Blackstone backs perpetual students 19 Apr 2022 Concise views on global finance: The private equity firm is buying a campus housing investment vehicle for $12.8 billion. Steady cash flows and the need for more dorms make it a nice fit for Blackstone’s permanent capital vehicles.
Steinway IPO plays old tunes with new chords 19 Apr 2022 Back in 2013, the piano maker sold itself to hedgie John Paulson for $512 million. Now it’s set to perform for public markets again. Quality and luxury remain main themes, but China and technology are modern harmonies. A valuation well above $1 billion wouldn’t be off-key.
Nielsen activist stand is tough to deliver 19 Apr 2022 WindAcre's resistance to the $10 bln sale of the TV-ratings group pits it against buyer and more prominent agitator-investor Elliott. WindAcre is putting its money where its mouth is, but confusing tactics and a demand for an absurd payoff make its campaign look flaky.
Twitter’s habitat lacks natural predators 18 Apr 2022 Elon Musk’s $41 bln bid has put the social network in play, but closing a deal is harder. The Tesla boss may struggle to recruit partners, while meager earnings make it a stretch for private equity. Tech giants face antitrust concerns and toxic content will put off media suitors.
Twitter can afford to refuse Musk’s $41 bln bid 14 Apr 2022 The world’s richest man says he’ll pay $54.20 a share for the social network, but may sell his 9% stake if the “best and final” but non-binding offer is rejected. It’s less than a week since Musk walked from a deal to join the board. Twitter has multiple reasons to demand more.
Blackstone’s Italian gambit can stay on the road 14 Apr 2022 Looking to deter a rival bid, the buyout group has teamed up with the Benettons to take infrastructure group Atlantia private. The 19 bln euro equity value looks steep. Yet inflation protection from concession assets and cash from an upcoming sale justifies the swoop.
Capital Calls: Thoma Bravo plays favorite PE tune 13 Apr 2022 Concise views on global finance: The private equity firm sells cybersecurity company Barracuda Networks to KKR.
EU bank dumpster divers still have rich pickings 12 Apr 2022 A big investor, probably Capital Group, sold 1.8 bln euros of Deutsche Bank and Commerzbank shares. Betting on the basket cases has worked well since 2020. France’s SocGen and Italy’s UniCredit may offer similar rewards now, though shareholders may have to work a little harder.
Nickel deal upheaval is unfair but reasonable 11 Apr 2022 IGO’s $820 mln bid for miner Western Areas was derailed by KPMG, prompting the buyer to increase its offer by 15%. It’s unclear whether war in Ukraine will alter the nickel market longer-term. Even so, it’s refreshing to see an adviser ditch the usual rubber stamp.
Ex-Goldman conviction is partial justice for 1MDB 8 Apr 2022 A U.S. jury found Roger Ng guilty of corruption linked to the Malaysian fund. His ex-boss who helped organize the scheme may get a lesser penalty for cooperating with prosecutors; the Wall Street firm got off with a $5 bln fine. It’s an imperfect deterrent for future miscreants.
How private LBO lenders can compete with banks 8 Apr 2022 From Thoma Bravo to Apollo, non-bank providers of credit are getting busy. No wonder, since they have some $1.2 trln to invest. They charge more than traditional lenders, but for buyout equity investors that's offset by higher risk tolerance and leverage than banks can offer.
Be ready for a wave of embarrassing DMs 8 Apr 2022 Citigroup is pausing work on blank-check vehicles. The SEC is investigating block trades. And Elon Musk’s Twitter stake and appointment to the board are raising eyebrows. As in past moments of market turmoil, sloppy communications behind the scenes may later lead to red faces.
KKR red card is a Telecom Italia own goal 8 Apr 2022 After months of fumbling, the Italian operator hung up on the U.S. fund’s 10.8 bln euro takeover approach. Stiff opposition in Italy had dampened KKR’s interest. For CEO Pietro Labriola, revamping the hard-pressed group under intense market scrutiny will be twice as hard.
Capital Calls: Credit Agricole’s Italian job 8 Apr 2022 Concise views on global finance: The French lender buys a 9% stake in Italy’s Banco BPM, making it harder for local rivals to launch a bid.
Pérez vs. Benettons will be an uphill struggle 7 Apr 2022 ACS, run by Spanish magnate Florentino Pérez, has sided with Brookfield and GIP to buy road group Atlantia, 33%-owned by the Italian tycoons. A takeover could cost 20 bln euros net of debt, but a looming 8 bln euro asset sale would help. Winning over the Benettons will be harder.
Capital Calls: Buffett’s HP bet, Gambling M&A 7 Apr 2022 Concise views on global finance: Berkshire Hathaway takes a hefty stake in the computer and printer maker; Betting group 888 negotiates a better price for buying UK bookie William Hill.