Tchenguiz will have to pay up for M&B 14 Mar 2006 The property tycoon will struggle to drive much value from the UK pub operator beyond piling on debt. In the meantime, Mitchells & Butlers has strong organic growth and consolidation potential. Its owners may drive a hard bargain.
Heinz spiced up by raider talk 28 Feb 2006 The ketchupmaker has rallied amid talk billionaire Nelson Peltz is building a stake to launch a proxy battle and management shakeup. Though it may be a dowdy business, as its latest results attest, Heinz s valuation makes it a juicy target but not necessarily for Peltz.
Cadbury tries to reassure market on margins 21 Feb 2006 The UK confectionery group is delivering strong sales growth, but the shares have been dogged by fears it will miss margin targets in 2006. Though Cadbury has reiterated those targets again, investors may take further persuading. Meanwhile, bid talk puts a floor under the shares.
Diageo reassures market with strong H1 results 16 Feb 2006 The UK drinks group calmed fears of a tougher spirits market with a strong first half, led by impressive growth from developing markets. Diageo's investment proposition of strong cashflow and high returns remains compelling. But questions surround its strategy on beer.
King of Beers faces shrinking realm 3 Feb 2006 AnheuserBusch, the world s biggest brewer, is in a pickle. Having sat on the sidelines of global consolidation, it s now paying a price. Its overdependence on the US hurts, as consumption and prices tank and costs rise. If M&A is the answer, a deal with InBev looks plausible.
Private equity plays it safe with E2bn Galbani sale 17 Jan 2006 BC Partners chose to sell the Italian food company to France's Lactalis, even though it might have wrung more out of a private equity buyer. The reason? Auctions take time, and the buyout market might have deteriorated. And BC has made enough not to fight for every euro.
Coke makes half-hearted gesture on severance pay 23 Dec 2005 The softdrinks maker kept quiet about its decision to allow shareholders a vote on big payoffs for departing executives. Why? Maybe it was ashamed of bowing to the famed Teamsters union. More embarassingly, it would still be rewarding executives for failure.
Cadbury still pick of food industry 13 Dec 2005 Margins may stay under pressure from high energy prices into the second half of next year. That could lead to modest shortterm downgrades. But the UK confectioner is one of Europe's faster growing food groups, thanks to innovation, expansion and the sale of European beverages.
Food sector is ripe for further consolidation 18 Nov 2005 The food industry is obsessed with finding top line growth. Yet its meager successes have come at the expense of margins and earnings. Consolidation could deliver synergies of 69% of sales. That would boost margins, cut capacity and deliver significant shareholder value.
Britvic float poses Pepsi challenge to investors 14 Nov 2005 The UK drinks maker offers good growth and strong brands. But a huge chunk of revenues depends on Pepsi, which also owns 5% of the shares. Pepsi is likely to hold real sway over the listed entity. That may explain why the other owners are apparently selling out on the cheap.
Buyout kings converge on Dunkin’ Donuts 31 Oct 2005 The fast food chain, for years owned by unfocused conglomerates, is attracting strong private equity interest. Considering the market for highpriced coffee, the $2bn price tag for the stodgy chain looks like a bargain.
Governance is key in splitting up Parmalat 28 Oct 2005 It makes sense to split the dairy group s operating activities from the lawsuits it has filed against its banks. But there are conflicts because these banks are also big shareholders. These need to be managed.
Creditors recover 40% of Parmalat investment 6 Oct 2005 Part comes from Parmalat's lawsuits against its banks, who are now big shareholders. If they thwart the suits, investors could get less. Excreditors, some of whom are being sued by Parmalat, will scrap over the new board, and any takeover bids the group may receive.
Reborn Parmalat a complex beast 20 Sep 2005 Investors valuing the Italian dairy group as it relists face a difficult task, since only 60% of its value lies with its milk business. The rest, some E2.1bn, lies in potential legal claims. One solution would be for the company to spin these off into a separate vehicle.
Is champagne a national treasure? 15 Sep 2005 French industrial patriotism is in danger of descending into farce, with reports that Paris wants to keep Taittinger out of foreign hands. After all, this is one company where the owner foreign or otherwise can't take production offshore.
Cadbury dumps European beverages 1 Sep 2005 The UK group was relying on cash flow from its beverages businesses to pay down the debt taken on at the time of the Adams acquisition. But the beverages arm now needs investment itself. Luckily, there should be no shortage of private equity buyers willing to provide it.
Nestle finally gets a break 17 Aug 2005 The maker of KitKat bars has met its own sales targets for the first time in over a year, even though pricing is still tough. Nestle is strong in emerging markets. Yet its core food business looks to be valued somewhere below peers like Unilever. It deserves better.
Pernod chief lashes France over Danone 1 Aug 2005 Patrick Ricard's arguments are sound enough, but they would carry more weight if his own company were exposed to the risk of takeover. If he really believed in free markets, he would scrap the arrangements that let his family control Pernod with less than 10% of the shares.
Cadbury should sell European beverages 26 Jul 2005 The UK confectionery group is expected to sell its European soft drinks business, raising up to £750m for future buybacks and acquisitions. That s good news. Cadbury's Adams acquisition showed it can deliver value from deals, and there is still plenty of growth in confectionery.
Danone soars 12% on bid rumours 19 Jul 2005 A junior French minister has fuelled speculation of a bid for the French food group, saying the government would not stand in the way. Europe s bestperforming food group would carry a hefty price tag. But the market has clearly decided that's not an insurmountable obstacle.