Capital Calls: Illumina, Domino’s Uber delivery 12 Jul 2023 Concise views on global finance: The EU fines the $30 bln genetic test maker 432 mln euros for closing its 2021 Grail deal prematurely; the pizza chain known for its own delivery app is expanding its service with Uber Eats, a smart move to nab more orders from fickle customers.
Capital Calls: Thames Water, Bayer 10 Jul 2023 Concise views on global finance: The indebted UK utility secured a pledge from shareholders to cough up 750 mln pounds over the next two years; the German conglomerate could help long-suffering investors by undoing the disastrous Monsanto deal.
Worldpay deal gets buyouts halfway back to normal 6 Jul 2023 Private equity shop GTCR is scooping up 55% of the payments firm at an $18 bln valuation, gifting seller FIS a rich price without any IPO hassle. The transaction defies weak debt and M&A markets, but it also requires flexing fundraising muscles to underpin a huge cash outlay.
Mission Impossible: Paramount reckoning 5 Jul 2023 Everyone has a price and media mogul Shari Redstone is no different. The trouble is that her conglomerate’s TV networks alone are worth more than its $11 bln market value. Despite a rich history of breakups, it would take a financial Ethan Hunt to extract full value this time.
Capital Calls: Canada is calling Meta’s bluff 23 Jun 2023 Concise views on global finance: The Facebook owner plans to pull news on its platforms in Canada after the country passed a bill that requires internet giants pay publishers. If Australia is any guide, Meta will eventually cave.
Comcast rejigs media script after falling from Sky 16 Jun 2023 The $173 bln cable giant is discussing a cash dowry to lure buyers for its pay TV operator’s German arm. That would remove a distraction as CEO Brian Roberts hunts for a new deal. A sale may be hard to reach. But it’s better to cut the cord sooner than later.
Moncler can inspire Golden Goose’s next step 15 Jun 2023 Skirting a pandemic and war, the maker of Super-Star sneakers doubled sales to 500 mln euros in three years, with rich margins. That’s where Remo Ruffini’s down jackets brand stood before its 2013 IPO. It may tempt owner Permira into a $3 bln sale, or Moncler into a purchase.
SoftBank’s Arm IPO set for double stroke of luck 13 Jun 2023 The chip designer may score Intel as an anchor investor in its planned US float. Meanwhile, customers like $975 bln Nvidia have soared amid an artificial-intelligence frenzy. It makes the company’s puffy valuation hopes slightly less implausible – but not necessarily sustainable.
Sequoia breakup will expose go-local consequences 6 Jun 2023 The venture capital firm, which manages more than $100 bln, is splitting into three. The rebranded China and India arms will operate independently from the US and Europe. It speaks to geopolitical tensions, but runs contrary to natural evolution. And untangling comes with risks.
Russia writedown is Raiffeisen’s best option 30 May 2023 The Austrian bank may spin off its profitable Moscow-based unit. The new Vienna-listed lender could struggle to operate given sanctions, shrinking its depressed value further. Stomaching a 4.1 bln euro loss would force Raiffeisen to atone for years of mindless Russian expansion.
Citi slinks rather than marches out of Mexico 24 May 2023 The US bank will IPO rather than sell the Mexican retail business CEO Jane Fraser once ran. It’s the wiser path after a year of haggling and dramatic market moves. Given Citi’s dismal valuation and past underinvestment, what Fraser does closer to home matters more anyway.
Capital Calls: BT, Mediobanca 18 May 2023 Concise views on global finance: The 14 bln pound UK telco’s vague guidance is a concern for its two big shareholders seeking to recoup losses; the 8.5 bln euro Italian bank buys its biggest boutique yet.
Telecom Italia is stuck in risky game of chicken 4 May 2023 The telco’s board must decide on rival bids from KKR and state investor CDP for its fixed-line grid. None comes close to the 31 bln euro price wanted by top investor Vivendi, but cash is needed to slash debt. If neither side blinks, the group could face a messy capital increase.
EY’s split fiasco will spark slow-motion decline 25 Apr 2023 The audit giant’s bean-counters are insulated against a rapid loss of business after its failed breakup. But EY’s more profitable consulting arm, including its prize tax unit, is less so. More reticent new clients and staff may see the Big Four become the Big Three-and-a-half.
J&J carves itself up at a discount 24 Apr 2023 The healthcare giant is floating part of its Listerine-to-Tylenol business with a mooted price of $40 bln, a 20% discount to rival Haleon. Litigation risk and an inhospitable market may leave J&J with a valuation wound in need of a Band-Aid. For investors, it’s worth the risk.
Man U sale rejig will perturb other soccer sellers 19 Apr 2023 The Glazers want to sell the Red Devils for $7 bln, but may have to settle for a stake sale to private equity instead. That raises the question of whether club valuations have peaked. If so, the likes of Man City’s Silver Lake may find it harder to secure a lucrative exit.
Pirelli will help read China investment tea leaves 4 Apr 2023 Sinochem has denied plans to ditch a 37% stake in the Italian tyremaker. But Beijing’s pressure on state-controlled firms to boost shareholder value and dump non-core assets may lead to a sale. Pirelli’s fate will have a bearing on China’s $1 trln overseas portfolio.
Alibaba breakup sends positive vibes to investors 30 Mar 2023 The $265 bln Chinese tech giant is splitting into six pieces. In this Viewsroom podcast, Breakingviews columnists discuss how the move could be replicated by peers like Tencent and how Beijing’s business charm offensive is sending the right signals to China watchers.
Alibaba drafts breakup blueprint for China tech 28 Mar 2023 The $228 bln e-commerce group is splitting into six units spanning logistics to games, which may be listed. That should unlock value for weary shareholders, and please regulators keen to control strategic businesses. If done right, pressure for Tencent to follow may rise.
Deutsche Bahn $16 bln sale has non-obvious endgame 24 Mar 2023 The German railways group may sell logistics arm DB Schenker for over $16 bln to cut debt. The most obvious fit is rival DSV. But selling to private equity or French shipping giant CMA CGM could mean fewer job cuts, which may be more appealing to Deutsche Bahn’s state owner.