Divestment

Fire sale further weakens NMC’s defence

8 January 2020

The $3 billion hospital operator fell 15% after big shareholders dumped its stock. The sale, which follows attacks by short seller Muddy Waters, was needed to repay debt. But it highlights the reluctance of the Gulf group’s backers and management to support its depressed shares.

Japan’s buyout teams face endurance challenge

19 December 2019

Industrial group Showa Denko is buying Hitachi’s chemical arm for $9 bln, disappointing private equity suitors like Bain and Carlyle. Firms are raising record sums in the hope that corporate reforms unleash a wave of dealmaking. Flush with cash, Japan Inc is crashing the party.

German listings breakup puts LBO shop in fast lane

18 December 2019

Hellman & Friedman paid 3 bln euros for the car sales division of classifieds group Scout24. It’s a rich price, but the unit’s racy growth means the buyout fund should make a healthy return. A higher exposure to risky property leaves the seller’s investors with a bumpier ride.

DuPont’s latest reinvention risks deal fatigue

16 December 2019

The $26 bln sale of its nutrition unit looks smart on paper. Yet DuPont has been reworking itself for four years, with no real boost for shareholders. Buyer IFF is still digesting another purchase. And closing is over a year away. Even the right deal can be too much of a grind.

DuPont comes out smelling of roses in $45 bln deal

16 December 2019

Executive Chairman Ed Breen is merging his nutrition and biosciences business into International Flavors & Fragrances. He has secured a premium valuation, cash sweetener and a tax-free transfer for DuPont shareholders. IFF gets little besides the dubious benefits of scale.

Altice scores narrow win with Portugal fibre deal

13 December 2019

Billionaire Patrick Drahi’s telecom group sold half its local broadband network for 2.3 bln euros. Some of the payment is delayed but the price still gives Drahi reason to celebrate. Besides eating into his debt mountain, the cash helps him lay more fibre to stay ahead of rivals.

AB InBev’s Oz M&A party leaves antitrust headache

12 December 2019

The world’s biggest brewer’s $11 bln sale of its Australian unit to Asahi has been challenged by the country’s watchdog. Its tough stance on beer and cider competition may hurt boss Carlos Brito’s plan to cut debt. The Corona-maker has other options, albeit less appetising ones.

Haagen-Dazs cash may melt in Nestlé’s pocket

11 December 2019

The Swiss giant is selling its U.S. ice cream unit to a joint venture with buyout firm PAI for $4 bln. A big dollop of debt gives the $312 bln group a taste of private equity returns. After his second big disposal this year, CEO Mark Schneider might be tempted to splash out.

Orange’s pep pill has few secret ingredients

4 December 2019

The French telecoms group needs ideas to offset a stagnant home market. Africa and the Middle East offer hope, yet they are just a small part of the business. A plan to carve out phone masts is vague, and less ambitious than rival operators. Selling more towers would be bolder.

UniCredit pays up for tricky Turkish escape

2 December 2019

The 28 bln euro Italian bank trimmed its holding in Turkish lender Yapi Kredi. Break fees and a steep discount suggest local partner Koc Group got a good deal. Yet CEO Jean Pierre Mustier frees up capital, and paves the way for a proper exit, if markets and regulators play along.

Bolloré nears rare draw in messy Italian campaign

29 November 2019

Vivendi is to sell 20% of Mediaset, part of a broad truce with the Berlusconi-controlled broadcaster. The deal ends a wasteful legal row with little financial damage for Vivendi’s top investor Vincent Bolloré. Yet his larger Telecom Italia investment is still deep under water.

Packaging sale can cure AB InBev’s hangover faster

28 November 2019

The $133 billion brewer’s U.S. bottle and can production unit is worth up to $6 bln. A sale of even a minority stake can bring net debt below 2 times EBITDA a year earlier in 2022. Soothing investor fears over indebtedness is worth having to rely on another company for vessels.

Telefonica’s self-activism is half a turnaround

28 November 2019

The Spanish phone firm is trying to revive its flagging fortunes before somebody else makes it. Carving out the sprawling and sluggish Latin American operations makes sense, if it leads to a sale. A real activist would demand more clarity on disposals, growth forecasts and costs.

Maybe eBay should rebrand as a VC fund

25 November 2019

The $29 bln firm is a shadow of Amazon in e-commerce, but selling StubHub for $4 bln shows prowess at incubating a business acquired for less than a tenth of that. Off-loading its classified operations could be similarly successful. And eBay’s biggest gains have come from PayPal.

Sinking Thyssenkrupp needs more than a quick lift

21 November 2019

The German group’s shares fell after it cut its dividend. Selling its elevator unit will raise cash but leave a loss-making rump. With restructuring, the steel-to-ships maker could be worth much more than the current 7.5 bln euros, but boss Martina Merz faces an arduous climb.

Aviva’s drift to mediocrity may tempt an activist

20 November 2019

The UK insurer pledged to simplify its business. Yet new CEO Maurice Tulloch’s strategy review disappointed hopes for asset sales, and mostly reaffirmed older aims. The $21 bln group’s sprawling structure, and discount to peers make it a juicy target for an uppity investor.

Smith & Wesson shows limits of a corporate fad

14 November 2019

The gunmaker’s parent is separating firearms from its camping gear unit. Just three years ago it argued diversification would be a plus. There’s a lesson for other industries: Sprawl is no protection, real or perceived, when banks and investors decide a business has turned toxic.

Emerson settlement with Shaw would be win for both

30 October 2019

The clock is ticking for the hedge fund to start a proxy battle at the $44 bln conglomerate. Emerson needs a makeover, and D.E. Shaw wants to burnish its activist cred. A deal that shakes up the board and slashes fat without an immediate bust-up would be a victory for everyone.

AT&T’s brush with activism creates four winners

28 October 2019

The $270 bln U.S. telecom plans to raise margins, add directors and sell assets, and it only took a nudge from Elliott. Both sides look smart, and investors gain too. So do shareholders in other companies: AT&T’s plan to split chair and CEO roles helps them to ask for the same.

Emerson Electric is only half as bad as Shaw says

16 October 2019

The $42 bln conglomerate sports crummy governance, excess fat and a retro penchant for private jets. But there are good reasons the market hasn’t bought into relative newcomer to activism D.E. Shaw’s argument that a breakup would unlock $20 bln of value.