Could Inbev use SAB to crack open Bud? 28 May 2008 If the BelgoBrazilian brewer is spurned by Anheuser, it could always bid for SABMiller instead. Molson might then snap up Miller, putting Bud on the defensive and weakening its independent resolve down the road, when Inbev comes back for another swoop.
Inbev-Bud deal may look better on paper 27 May 2008 A $55bn plan to crunch together the two brewers looks simplicity itself. But the mooted $8.4bn of capitalised synergies won t come easy. To make a takeover stack up, costkiller Inbev will need to lob a handgrenade into Bud s sleepy valley.
Carlsberg’s banks prove surprisingly generous 16 May 2008 The Danish brewer is lucky to get such good underwriting terms for its $6bn rights issue. Carlsberg is highly leveraged, the new shares carry virtually no votes, and the controlling shareholder can t put in any cash of its own. The banks must really want the bragging rights.
Citigroup still haunted by black hole 30 Apr 2008 The bank s role in Parmalat s collapse goes to trial on Monday. Proving Citi abetted fraud through securitisation may leave New Jersey jurors befuddled. But Citi s naming of a vehicle that allegedly disguised debt buconero black hole is easy to grasp.
Cadbury shouldn’t binge on Hershey 29 Apr 2008 The UK confectioner may have lost its crown after Mars bought Wrigley for $23bn. But a metoo deal with struggling Hershey is the wrong response. Cadbury should fix its woeful margins and then eye more enticing targets.
Wrigley loses its taste for public markets 28 Apr 2008 Mars and Warren Buffett are paying a chewy 28% premium for the US gummaker. That s a big gain for shareholders but perhaps not a knockout. But the Wrigley family may be motivated by things other than cash including the fuzzy embrace of a very private new owner.
Wrigley timing is sweet – but Buffett needs more deals 28 Apr 2008 Two years ago, he announced a $4bn acquisition on the eve of Berkshire Hathaway s famous annual meeting. Saturday s crowd of mostly adoring shareholders will love his latest $6.5bn deal to help Mars buy Wrigley. But Buffett needs more deals at least that big.
Mars-Wrigley deal looks a lot like an LBO 28 Apr 2008 It s been nearly a year since megabuyouts dried up. But the $23bn confectionery deal resembles an LBO. Mars and Warren Buffett are finding $13bn of equity. Goldman Sachs and Buffett are providing $10bn of debt. There might be a lesson in the deal for buyout firms.
Pernod defies gloom with healthy E5.6bn Absolut deal 31 Mar 2008 The French spirits group is paying top dollar for the Swedish premium vodka. That plugs a hole in its portfolio with a wellestablished and stillfastgrowing brand. But taking on debt topping 6 times its ebitda is a bet that any economic downturn will be shortlived.
Premier debt could be hard to digest 4 Mar 2008 Shares in the heavily indebted food manufacturer shot up 10% today after it struck a new deal with its banks and halved its dividend. But the company is eating into capex this year rather than its huge debt pile. If 2008 is as bad as last year, it'll have to go back to its banks.
SAB should sit out brewers’ binge 22 Feb 2008 While other brewers mull over deals, the UK brewer has so far remained aloof. That discretion is no bad thing. Beer deals are pricy and SAB's last big buy, Miller, hasn't knocked the lights out.
Premier learns that leaven and leverage don’t mix 11 Feb 2008 Shares in the highly geared UK food group have fallen by twothirds since it doubled in size by buying baker RHM. Rising wheat costs have hit margins and less leveraged competitors seem to be eating its lunch. Public investors have learned a lesson about the downside of debt.
Is Bud vulnerable to an Inbev bid? 6 Feb 2008 Rumours of an Anheuser/Inbev tieup have continued to brew. While the Busch family may find the idea hard to swallow, Inbev is now in a much better position to make a bid. If a friendly deal can't be hatched over a few beers, a brawl can't be counted out.
Fine Swiss chocolate should be recession proof 24 Jan 2008 Lindt & Sprüngli has rebranded the oldfashioned unhealthy sweet as an upmarket, healthy indulgence. A US slowdown and rising raw material prices don t look like slowing its momentum. But chocolate powerhouses Nestle, Hershey and Cadbury will continue to try to catch up.
S&N battle isn’t quite over 17 Jan 2008 Sure, Carlsberg has blinked by raising its offer for the UK brewer to 800p a share and S&N has agreed to talk. But there could still be a quibble over who gets S&N's 15p dividend and an argument about how valuable their Russian venture is.
Does the EU suffer from genetic weakness? 14 Jan 2008 The refusal to stand up to irrational public fears about Frankenstein foods suggests so. A unilateral French move to ban Monsanto s genetically modified corn is the latest twist. This will hurt the continent s farmers and provoke trade tensions, for no good reason.
S&N haggles over last £200m 10 Jan 2008 The UK brewer has rejected Carlsberg and Heineken s sweetened £7.4bn bid, but said it will talk at £7.6bn. Both sides could lose out if a deal doesn't happen. And with so little dividing them, it's now just a matter of which blinks first.
S&N fights phoney war over Russian crown jewel 8 Jan 2008 The UK brewer is rightly accusing Carlsberg of trying to buy their Russian joint venture on the cheap. But even as it talks up the value of BBH, S&N s mature markets are deteriorating. A higher offer, not independence, looks the real prize.
Starbucks can weather McDonald’s coffee assault 7 Jan 2008 America's biggest fast food chain's decision to serve McFrappuccinos is hardly welcome news for Starbucks. But investors are right to shrug. If Starbucks raises its game in food, it should be able to fight off the challenge. And it retains an edge in cachet.
Why the Taittingers are feeling festive 17 Dec 2007 The Taittingers are buying back the family business to focus on premium brands. Europe s wine industry is in crisis, but not champagne. The bubbly s biggest problem is how to meet surging demand. Longterm, the industry needs to expand production.