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.
Sell-off sweetens Starbucks’ rich valuation 12 Dec 2007 A combination of higher commodity prices, stiff competition and analyst downgrades has been a bitter brew for Starbucks' shareholders. The coffee chain has lost 40% of its value this year. But the selloff has made its stillrobust valuation a bit easier to swallow.
Absolut auction should produce premium price 11 Dec 2007 Sweden s privatisation of the vodka company could raise upwards of $7bn so long as the government avoids the temptation to favour a local bidder. The most natural home is Fortune Brands, then Pernod Ricard.
Coke picks the right guy to maintain fizz 6 Dec 2007 The softdrink maker s shares have finally returned to life. CEOapparent Muhtar Kent looks like the right guy to keep the momentum going. Plenty of good news is already priced into the shares, but Coke remains a solid bet in a choppy environment.
Bid-drunk brewers slur their numbers 21 Nov 2007 Carlsberg and reluctant bid target S&N have each used different versions of the same numbers. The effect is that Carlsberg looks like it s paying less than it really is, while S&N looks like it's getting less. Such mischief is bad for both sides' credibility.
S&N defence gets off on wrong foot 20 Nov 2007 In arguing why rivals Carlsberg and Heineken are underbidding, the UK brewer has shown that things aren't great in its core European markets. The bidders may still need to pay more than 750p a share but the bar has probably come down.
Kraft dodges tax hit with smart $2.6bn Post cereal deal 15 Nov 2007 The food giant looks to have sold the Grape Nuts maker at a pittance relative to rivals like Kellogg. But the reverse Morris Trust structure in which Kraft spins off Post and then merges it with Ralcorp saves $1.4bn in taxes.
S&N predators can’t stretch much further 15 Nov 2007 The UK brewer swiftly rebuffed an increased offer from Carlsberg and Heineken. Rightly so it was a mere 4% above the last one. But it s not clear the two brewers can go much further. That leaves them in a tough spot.
Defensive stocks make for an expensive safe haven 7 Nov 2007 Consumer staples stocks have easily outperformed the broader market amid credit worries and the housing slump. But while demand for food, tobacco and beverages may hold steady through a storm, their purveyors' shares are starting to look pricey.
Europe needs a more sober approach to wine reform 6 Nov 2007 The Old Continent produces too much poor quality wine and is losing ground against New World rivals. The EU has some good ideas. But the best way to help the industry compete would be to let the market replace a quasimedieval business model.
What price S&N’s Russian crown jewel? 30 Oct 2007 Carlsberg s bid for the UK brewer puts an implied price of £4.2bn on S&N s half of BBH, their joint venture. That's cheeky. Given BBH's fast growth and strategic importance, £5bn looks more reasonable. To get there, Carlsberg would need to raise its bid to 800p.
Bizarre tie-up underscores Japan’s governance flaws 25 Oct 2007 Japan's economy has made an impressive recovery. But its corporate governance landscape still looks bleak. Oddball deals remain far too common. Unless attitudes change, activist investors will be unable to unlock value.
S&N shows Carlsberg it is up for fight 24 Oct 2007 The UK brewer s claim that its Danish rival has breached the terms of their Russian joint venture raises the stakes in the bid battle. Even if the tactic legally is a long shot, it helps focus attention on the key area of debate the value of 100% control of BBH.
Heineken and Carlsberg prepare to binge on S&N 17 Oct 2007 Bagging the £9bn UK brewer won t be easy, nor will it be cheap. Bid speculation has long made S&N s share price frothy. While there is strategic sense in buying S&N, a deal doesn't look financially attractive.
Cadbury drinks split could pry open two deals 10 Oct 2007 Listing its drinks business in the US next year may leave time for LBO firms, who were the natural buyers, to regain their mojo. By then, Cadbury should also be in a better position to negotiate with Hershey, whose opposition to a merger with the UK group's confectionery business is weakening.
MillerCoors fires shot into Bud’s kingdom 9 Oct 2007 By tying up with rival MolsonCoors in the US, SABMiller is conceding defeat in its fiveyear battle to topple Budweiser. But the UK brewer may yet win the war. With Bud facing stiffer competition, the deal shows up the weakness in the King of Beers own realm.
Dean Foods’ woes show the risks of milking cash flows 2 Oct 2007 The US dairy products giant paid a $2bn dividend when credit markets were strong. That looked sensible for a mature business. A lot of slowgrowing companies have distributed their future cash flows this way. But it can be risky if their prospects decline.