Divestment

Capital Calls: Olympics on TV, Abrdn

10 Aug 2021

Concise views on global finance: NBC Universal's prime-time viewers for the Tokyo games were only half as many as for London 2012, boding ill for traditional U.S. TV; the British asset manager formerly known as Standard Life Aberdeen may be turning the corner.

Capital Calls: Moderna, Qualcomm, US tax, ViacomCBS

5 Aug 2021

Concise views on global finance: The Covid-19 vaccine maker is looking past the pandemic; the telecoms group is offering $4.6 bln for Veoneer; U.S. Democrats are trying to close the carried-interest loophole; ViacomCBS is betting "South Park" can boost its streaming service.

Fear of fatness fuels Pepsi’s $3.3 bln juice deal

3 Aug 2021

The maker of Mtn Dew Cake-Smash is selling seemingly healthier juices lines like Tropicana. Though he’s keeping a finger in the bottle, CEO Ramon Laguarta seems focused on flogging zero-calorie tipple to increasingly obese consumers. That’s why French LBO firm PAI got it cheap.

ABB offers lesson in virtue of simplicity

26 Jul 2021

The $75 bln Swiss industrials giant is selling a power transmission unit to RBC Bearings for $2.9 bln. The rich price vindicates CEO Bjorn Rosengren’s plan to slim down and focus on electrification and robots. That will likely cement a premium valuation versus rival Siemens.

GSK’s messy split opens door to cleaner M&A cure

26 Jul 2021

The British drugmaker could sell its consumer unit after pressure from activist Elliott. The maker of Advil painkillers might be worth $70 bln to a bidder like Procter & Gamble. A sale would mean a faster exit and raise more cash than CEO Emma Walmsley’s spinoff plan.

European payments jewels are wasted in bank vaults

23 Jul 2021

BNP, SocGen, Santander and others process billions of card transactions but the potentially valuable units get no credit within stodgy banks. CEOs may resist spinoffs for fear of missing future growth. Yet sitting on a subscale business means losing ground to digital upstarts.

Capital Calls: Covid fibs, M&A flop, Hard seltzer

23 Jul 2021

Concise views on global finance: Forcing social media to take down vaccine misinformation is a good step on U.S. content rules. Meanwhile, a German real estate deal fails to get enough shareholder votes, and Boston Beer’s hard seltzer sales fizzle.

BHP’s oil exit would be better sooner than later

21 Jul 2021

The mega-miner is reported to be mulling a $15 bln sale of its petroleum arm. The subsidiary’s status as a profit engine amid rising energy prices makes it a tough decision. But even if done at a knock-down rate, CEO Mike Henry can burnish BHP’s allure with oil-hating investors.

Ackman music SPAC flop makes second album trickier

19 Jul 2021

The billionaire’s $4 bln blank-cheque vehicle will seek a new deal after U.S. regulators questioned its purchase of 10% of Universal Music. The false start could put off future targets. For all its investor-friendly features, the vehicle’s backers may end up singing the blues.

Tate & Lyle’s hybrid breakup can sweeten valuation

12 Jul 2021

The $5 bln ingredients maker is selling half its commercial sweeteners unit to a private equity buyer. It gets $1.3 bln in cash and a 20-year deal to keep access to manufacturing plants and corn. The hope is its remaining business will now trade in line with faster-growing peers.

Elliott’s GSK shot tests sickly CEO’s immunity

1 Jul 2021

The activist fund wants the $98 bln drugmaker to conduct a formal search for a new boss before spinning off its consumer unit. That’s a challenge to Emma Walmsley, who plans to remain in charge. A long wait until the next shareholder vote buys time to strengthen her defences.

Atlantia’s M&A treasure chest has use-by date

30 Jun 2021

The infrastructure group is due a $10 bln cash windfall from the forced sale of its Italian motorway unit. Airports or toll roads are in high demand, while mobile payments bets are risky. Without a clear target, CEO Carlo Bertazzo should return more cash to investors or cut debt.

GSK rejig may still leave investors feeling queasy

23 Jun 2021

The $100 bln pharma group set a 5% sales growth target for its new medicines business. Offloading 80% of the consumer unit and loading it up with debt creates an $11 bln war chest, too. But both GSK’s drug pipeline and its under-fire CEO need to deliver for the new plan to work.

Capital Calls: GameStop is a SPAC now

22 Jun 2021

Concise views on global finance: The meme-stock video-game retailer has raised more cash, making it look like an overvalued cash shell.

Capital Calls: Netflix, Flackless SPAC

21 Jun 2021

Concise views on global finance: The streaming service strikes an agreement with Steven Spielberg’s Amblin Partners; Helicopter-taxi company Blade’s phony spokesperson speaks poorly to investors.

Capital Calls: HSBC, MRNA scramble, Cable project

18 Jun 2021

Concise views on global finance: The UK bank’s France sale disappoints; Danaher snaps up Moderna supplier for $9.6 bln; geopolitics sinks internet cable.

Bolloré and Ackman will beat the Vivendi activists

15 Jun 2021

Agitators including Dan Loeb own stakes in the French tycoon’s conglomerate. A messy plan to list most of music label Universal, while selling 10% on the cheap to Bill Ackman’s SPAC, gives them plenty to aim at. But Vincent Bolloré’s near-30% control means he has the upper hand.

Shell’s U.S. rethink betrays lack of wiggle room

14 Jun 2021

The Anglo-Dutch driller may sell assets worth $10 bln in Texas. Not so long ago the U.S. Permian Basin was a key oil major growth area, but now Shell is under pressure to cut emissions. Restricting carbon while earning a financial return is increasingly determining strategy.

Greener Acciona comes with stiff family discount

11 Jun 2021

The $9 bln Spanish group’s valuation is yet to reflect the potential uplift from spinning off its renewables unit. That may be because the clan that owns Acciona will also control the new entity. Even so, investors may warm to the fact it could be worth more than its parent.

Anglo spinoff points to darker future for coal

7 Jun 2021

The mining giant’s thermal coal unit, Thungela, was valued at just $250 mln on its market debut. That’s a third of the EBITDA its South African mines may earn this year. It’s a stark reminder of the black stuff’s rapidly declining worth, and of public investors’ aversion to it.