Old-media stalwart tries out new business model 31 Jan 2018 Thomson Reuters’ $20 bln deal to cede control of its Financial & Risk unit to Blackstone includes a 30-year commitment to help fund the news division. That gives Reuters protection in a competitive industry, assuming its now highly leveraged biggest client prospers.
Blackstone could double its money betting on data 30 Jan 2018 The buyout firm is taking control of Thomson Reuters’ financial unit in a $20 bln deal. With a shade more efficiency and some acquisition-led growth, Blackstone could generate a generous return. The risk comes from adding financial leverage to a cyclical, competitive industry.
Sberbank’s homeward pivot is a no-brainer 30 Jan 2018 The Russian bank is in talks to offload its majority stake in Denizbank. Sanctions had already taken the shine off Sberbank’s expansion abroad. But selling the Turkish lender at its $3.2 bln book value would bolster capital and help it become even more dominant in Russia.
U.S. tax cuts pile on pressure for GE to shrink 24 Jan 2018 They should help, long term. But a big charge contributed to a whopping $9.8 bln fourth-quarter loss at the conglomerate, whose top line also declined. Cost cuts and cash-flow gains buy CEO John Flannery breathing room, but the breakup option is looming increasingly large.
Murdoch’s Sky bid will ride out regulatory storm 23 Jan 2018 The UK competition authority said Fox’s offer for the broadcaster would give Chairman Rupert Murdoch excessive media clout. It may yet call for the deal to be blocked. But Disney’s bid for Fox alters the dynamics. Ring-fencing Sky News could allow the media mogul to get his way.
Nestlé fashions a more activist-friendly board 19 Jan 2018 The CEOs of Zara-owner Inditex and Adidas are among the Swiss giant’s proposed new heavyweight non-executives. Their e-commerce expertise will help steer efforts to sell more directly to consumers. They also pre-empt any move by activist Dan Loeb to install his own candidates.
Aramco IPO beggars needn’t feel like losers 19 Jan 2018 BAML, UBS and Barclays have missed the cut to be global coordinators on the Saudi oil giant’s mega-listing, Reuters reports. Forgoing big fees from a $100 billion IPO will be cause for garment rending. Then again Saudi is a risky client and the process is replete with uncertainty.
Sugar-for-supplements swap will test Nestlé boss 16 Jan 2018 The KitKat maker is selling its U.S. candy arm to Ferrero for a sweet $2.8 bln to invest in products with better growth than junk food. But high valuations for alternatives like vitamin pills limit CEO Mark Schneider’s opportunities to make Nestlé a clean-living champion.
Siemens’ $48 bln health IPO has recovery potential 16 Jan 2018 The German industrial group is floating medical-tech unit Healthineers. Ageing rich-world populations should boost demand for scanning equipment and the like. If the group can sort out its sickly diagnostics division, the mooted price tag could even look cheap.
GKN breakup defence is still on drawing board 12 Jan 2018 The UK engineer grappling with an accounting scandal rejected a $9.5 bln offer from serial acquirer Melrose. Its alternative plan of splitting itself in two makes sense and could deliver more value. But investors need more proof it can fix its business, and a clearer timetable.
Puma spinoff helps Kering’s race-fitness 11 Jan 2018 Gucci’s parent will hand investors most of its stake in the German sports label, a distribution worth 3.5 bln euros. Offloading the lower-end brand should boost the 52 bln euro luxury group’s value. Kering may even be able to leave behind its traditional discount to rival LVMH.
Continental would move to higher gear with breakup 9 Jan 2018 The $57 bln auto supplier is reportedly considering a business overhaul, including listing its tyres unit. That fits with a trend for breakups at auto groups, and would boost its valuation. The Schaeffler family, Continental’s largest shareholder, is a potential roadblock.
Drahi U-turn makes Altice’s problems easier to see 9 Jan 2018 Patrick Drahi is spinning off his cable group’s U.S. unit, raiding it for 900 million euros, and re-organising a struggling European business. The new structure will show whether he is doing enough to tackle slow growth, high debt, and a questionable content strategy.
Ambani’s debt cure is no elixir for shareholders 28 Dec 2017 Anil Ambani says he has rescued his Reliance Communications with a $6 bln firesale. That’s a relief for lenders, assuming buyers turn up as promised. But it’s not the moral victory the tycoon claims. Even if creditors play ball, investors are left with a much diminished company.
KKR benefits from Unilever’s weight-loss drive 15 Dec 2017 The buyout firm is paying $8 billion for the consumer giant’s unloved margarine unit. Though sales are stagnant, hefty leverage and more focused managers should enable KKR to earn a healthy return. What’s less clear is why Unilever was unable to make those improvements by itself.
Li & Fung family rearranges its sweater drawer 15 Dec 2017 The Hong Kong conglomerate is offloading its struggling knitwear, furniture and beauty products divisions for $1.1 bln. Buying them for a healthy price is a group led by the Fung clan. A company dividend will return some proceeds to them. It's a cozy solution to a prickly problem.
China’s medical reform is pain for foreign pharma 15 Nov 2017 Shanghai Pharmaceuticals agreed to buy the China drugs-distribution business of Cardinal Health for $557 million. It looks like a reasonable deal for both sides. It also highlights how even well-meaning medical reforms could prompt some foreign firms to look for the exits.
Fake news clouds real AT&T-Time Warner concerns 15 Nov 2017 America's No. 2 phone company cites 40 years of merger approvals as reasons why its $85 bln takeover should pass muster. A shifting media landscape might justify a new approach. The U.S. president's vitriol over the fate of CNN, which Time Warner owns, is an unhelpful distraction.
GE’s shaman exorcises ghosts of false expectations 13 Nov 2017 It doesn't take much imagination at work to grasp John Flannery's approach to the $178 bln conglomerate. He has halved the dividend, cut earnings guidance and questioned GE's portfolio of industrial assets. Next up is a total restructuring of GE's bloated, under-engaged board.
Mickey Mouse offers Sky investors an escape hatch 9 Nov 2017 Walt Disney has expressed interest in buying parts of Twenty-First Century Fox, including its 39 pct stake in the British TV group. That gives Sky shareholders another option if regulators block Fox’s 11.7 bln pound bid for full control. Disney may even be a more logical owner.