Elliott has limited ammo in UK retail bidding war 4 Mar 2024 The US investment group’s latest $951 mln offer for retailer Currys could have yielded an adequate return. But the target has rejected it. Hiking the offer looks tricky given the ropey UK economy, reduced scope for leverage, and potential rival bidder JD.com’s deep pockets.
JD is logical winner of odd UK retail bidding war 19 Feb 2024 The $37 bln Chinese e-tailer is mulling an offer for Britain’s Currys, also the subject of interest from Elliott Advisors. A feeding frenzy for a sub-$1 bln UK asset with an unproven turnaround story sounds weird. But JD.com’s need to expand overseas is a strong motivation.
Blackstone partly cracks new private equity code 9 Jan 2024 Buyouts have been a drag on big asset managers whose investors now prize steadier income. The firm led by Steve Schwarzman wants to square the circle by raising capital with no expiry date from rich individuals. A risky outcome is that it perversely incentivizes a spending spree.
Muddy Waters sticks a pin in Blackstone’s rump 8 Dec 2023 The short-seller says a mortgage fund run by Steve Schwarzman’s firm is doomed by struggling office properties. The reality may be more nuanced. But Muddy Waters is challenging a fundamental Blackstone selling-point: its ability to outrun the market, in real estate or elsewhere.
Sculptor board moves deal goalposts too far 20 Oct 2023 The hedge fund’s founder Daniel Och is suing to stop a $680 mln sale to Rithm Capital, alleging that a higher offer led by Boaz Weinstein has not been given a fair shake. Some of the choices behind the deal decision are defensible. Stacking the shareholder vote, however, is not.
Flights to safety in a dangerous world are on sale 20 Oct 2023 Fears of war, pestilence or financial collapse usually drive demand for safe assets like US treasuries or gold, making them a gauge of unease. Yet amid spiraling global threats, that isn’t happening. Whether from calm or complacency, the price of geopolitical insurance is cheap.
Capital Calls: Deliveroo 14 Sep 2023 Concise views on global finance: The UK food delivery company’s shares rose 5% amid hopes of a potential deal, but a rich takeout looks unlikely.
Beware the hedge fund deal that’s not about money 23 Aug 2023 Bill Ackman, Marc Lasry and Boaz Weinstein want to buy Sculptor, which manages $34 bln. Instead, Daniel Och’s former shop accepted a lower bid from real estate investor Rithm. Sculptor’s doubts about the moguls’ funding sounds fishy, as does the idea they couldn’t work it out.
Capital Calls: JetBlue’s Spirit sacrifice 6 Jul 2023 Concise views on global finance: The budget airline says it won’t fight a court order nixing a partnership with a larger rival to allay concerns about its $4 bln deal for peer Spirit. It’s unlikely to satisfy antitrust enforcers.
Austrian bank short attack is watchdog’s nightmare 30 Jun 2023 BAWAG shares fell 8% after hedge fund Petrus said the lender had a shoddy business model and poor governance. Sector-beating returns make it a tough target. But following this year’s bank runs, regulators will fret that such campaigns could become a self-fulfilling prophecy.
Man United sale heads into messy added time 15 Jun 2023 The Premier League soccer club is in the final stages of a tense bidding war. In this Viewsroom podcast, Breakingviews columnists debate the merits of offers from a Qatari suitor and chemicals tycoon Jim Ratcliffe, and what options minority investors face if they are shut out.
Odey brokers’ belated rethink is a cautionary tale 12 Jun 2023 JPMorgan, Morgan Stanley and others are reviewing links to the fund manager. Odey’s 2021 firing of his executive team should have been a red flag to do so even before further sexual assault allegations emerged. Brokers’ tardy responses just raise questions about their processes.
Man United takeover drama may end up in court 9 Jun 2023 The $3 bln soccer giant is up for sale. Hedge funds are preparing to fight any attempt by the controlling Glazer family to exclude minority investors from a deal. The club’s relatively low valuation, compared with recent takeovers, suggests a high chance of that happening.
Capital Calls: Buyout loans 23 May 2023 Concise views on global finance: The termination of broadcaster Tegna’s sale to Standard General lets banks off the hook for funding some $8 bln in buyout debt, but clearing the pile of hung loans is just one part of the leveraged finance problem for big lenders.
Capital Calls: Man Group 11 May 2023 Concise views on global finance: The 2.5 bln pound hedge fund manager has appointed insider Robyn Grew as its first female chief executive, replacing retiring boss Luke Ellis.
Italy’s corporate power grab nears expiry date 18 Apr 2023 Premier Giorgia Meloni promised to rely on merit to pick new directors at state-backed firms like $54 bln Eni and $7 bln Leonardo. Instead, she’s stuffing boards with loyalists. Hedge fund efforts to push back at $64 bln green star Enel are a reminder the market also has a say.
Cellnex could use an outsider with a sharp knife 30 Mar 2023 Hedge fund TCI has accused the Spanish tower operator of “mishandling” an ongoing CEO search. Once an M&A machine, the $27 bln firm needs to cut its debt load markedly. That requires a new boss with a fresh perspective, not an insider.
TCI’s Airbus fury may have collateral benefit 22 Feb 2023 Hedgie Chris Hohn says the plane maker’s plan to buy a 30% stake in Atos’s cyber arm will destroy value. He’s probably right, but private investors take a back seat in defence deals, where governments call the shots. His salvo might however help Airbus drive a harder bargain.
KKR can limit the pain of Elliott’s telco blitz 13 Feb 2023 The activist is disrupting the buyout group’s bid for German phone masts firm Vantage Towers. With a 5.6% stake, Paul Singer’s fund is expected to block the delisting until it gets a big payout. But unlike previous Elliott campaigns, KKR has various ways to insulate itself.
Jeff Smith makes for a substitute Warren Buffett 30 Jan 2023 The activist’s $500 mln investment backing a deal by equipment auctioneer Ritchie Bros has come under fire. His support echoes Buffett’s moves at Occidental and elsewhere. Though the Starboard boss lacks folksy shine, he might be up to playing the role in all the ways that count.