Divestment

BT pries open door to broadband stake sale

13 May 2021

The UK telecom group may bring in an outside investor to help fund an extra 3 bln pound expansion of its fibre network. Dutch peer KPN has done something similar. For CEO Philip Jansen it’s the first step towards a bigger prize: flogging off a chunk of BT’s main Openreach unit.

Green shoots’ salad days have come and gone

6 May 2021

Toppy valuations for wind and solar sparked Italy’s Eni, Spain’s Acciona and others to hire investment bankers for spinoffs and IPOs of renewables assets. Rising oil prices and fears of a green bubble mean firms now need size and a track record to play. That’s a good thing.

GSK CEO’s best defence is a graceful exit

5 May 2021

The $93 bln drug company is under pressure after activist Elliott took a stake. Boss Emma Walmsley is splitting the group into two, but its struggling pharma unit faces a lengthy turnaround, and may benefit from a new leader. Walmsley could run the new consumer business instead.

Verizon rips off band-aid with moderate punctures

29 April 2021

The $234 bln company wants to ditch AOL and Yahoo, and may get less than it paid a few years ago. That’s never a good thing. But in the media world, such value-destroying deals can be worse. This also enables the firm to get a wad of cash and focus on much bigger tasks, like 5G.

BT keeps eye on the ball by giving soccer the boot

29 April 2021

The UK telecom group may sell some or all of its sports broadcast unit. Where live matches once helped lure broadband customers, the battleground has switched to super-fast fibre connections. Falling subscribers and dubious profitability make TV sport an unnecessary distraction.

EQT pays an electrifying price for U.S. bus ride

23 April 2021

The Swedish buyout group is acquiring two of travel operator FirstGroup’s North American units for $4.6 bln. It’s a punchy valuation. To earn a decent return, EQT will have to boost growth by converting the iconic yellow school bus network into a fleet of clean electric vehicles.

Capital Calls: SXSW

19 April 2021

Concise views on global finance: Rolling Stone publisher Penske Media is taking a 50% stake in hipster arts festival South By Southwest.

Melrose disposal puts spring back in M&A step

19 April 2021

The UK turnaround specialist is selling most of its air conditioning unit for $3.6 bln. Though the implied annual return of 14% is not stellar, further disposals may lift it. Cutting net debt will allow CEO Simon Peckham to hit the acquisition trail again with vigour.

Capital Calls: Goldman Sachs, U.S. currency report

16 April 2021

Concise views on global finance: The Wall Street bank’s communications veteran, Jake Siewert, goes back to the future, sort of; Taiwan is dubbed a forex interventionist but avoids manipulator label.

Ireland bank exodus presages wider EU retrenchment

16 April 2021

Belgium’s KBC may flog most of its $12.3 bln of local assets to Bank of Ireland. NatWest just pulled the plug on Ulster Bank. Tough regulation, large incumbents and low rates played their part. The same factors will push other European lenders to retreat from far-flung markets.

Anglo American tests shareholders’ ESG bona fides

8 April 2021

The miner is giving investors one share in its spun-off thermal coal unit for every 10 already held. The commodity’s kryptonite status means many European institutions will want to get rid of them for the same reason as Anglo. But rising coal prices may turn some heads.

SocGen fund sale is good enough to spur copycats

7 April 2021

The French bank is set to sell its passive investing unit to Amundi for 825 mln euros. While below some estimates of 1 bln euros, CEO Frederic Oudea’s price is adequate and he’s solving a strategic problem. Other banks with subscale fund arms, like UBS, may follow suit.

Capital Calls: Bling deal

6 April 2021

Concise views on global finance in the Covid-19 era: Signet, the owner of jewelers Zales and Kay, is buying rental firm Rocksbox.

Credit Suisse’s spring clean has barely started

6 April 2021

Risk chief Lara Warner and investment bank boss Brian Chin are leaving after the Swiss bank unveiled a $4.7 bln hit from Archegos’ collapse. New board investigations should include deeper soul-searching over recent scandals. Restructuring and business disposals may be necessary.

Capital Calls: BlackRock’s Archegos angle, SPACs

30 March 2021

Concise views on global finance in the Covid-19 era: The fallout from the collapse of Bill Hwang’s family office gives regulators reasons to focus on funds, not fund managers; and bosses of blank-check companies don’t take investor questions.

Capital Calls: WFH deals, Suez Canal, NorNickel

29 March 2021

Concise views on global finance in the Covid-19 era: Fintech firm Broadridge pays a full price for trading platform; with the waterway clear, all sides will be taking up positions for a legal battle royal; the Russian nickel producer cashes in on high copper prices.

Allianz leaps back into M&A game in pricey Poland

26 March 2021

Europe’s top insurer will buy Aviva’s Polish unit for 2.5 bln euros. After more than a decade of eschewing large deals, CEO Oliver Baete is paying a rich 17 times earnings for scale in a key market. Projected savings make the price tag stack up. It may be a sign of more to come.

Capital Calls: Chubb/Hartford, Son of Kozmo

23 March 2021

Concise views on global finance in the Covid-19 era: Insurer Hartford rebuffs an offer from rival Chubb without breaking a sweat; snack-delivery outfit GoPuff raises capital at an $8.9 billion valuation, giving new life to an old Silicon Valley idea.

Suez brings water pistol to French sewage shootout

22 March 2021

CEO Bertrand Camus proposed carving up the group or swallowing an “irreversible” poison pill if Veolia doesn’t raise its 11.3 bln euro bid. Rival boss Antoine Frérot can afford to pay more. But in the absence of other bidders he can first try to kick out Suez’s board.

Credit Suisse is better off without its funds unit

18 March 2021

CEO Thomas Gottstein split the Swiss group’s $477 bln asset management business from its private bank and installed a new head. Yet risk-management issues highlighted by the Greensill saga may deter clients. Industry pressures strengthen the case for selling to a rival like UBS.