Dubai demonstrates the distance ahead of Saudi 1 Nov 2017 The UAE’s most populous emirate has become a global financial hub thanks to a diversified economy and tolerance of Western culture. Now Dubai is pushing a green agenda. The kingdom can learn much from its smaller neighbor, including its imperfections, as it tries to catch up.
Arqiva’s old-school TV vibe creates IPO static 24 Oct 2017 The UK broadcast and mobile masts company plans to raise 1.5 bln stg. An order book of mostly inflation-proofed long-term contracts and the pledge of big dividends are appealing. Less so is its reliance on TV towers rather than the cell ones that are tomorrow’s money spinners.
Telecom stress can take Indian M&A to new heights 24 Oct 2017 A KKR-led consortium reportedly wants to merge two top telecom tower companies, and end up with 45 pct of the enlarged entity. It would be a monster transaction for private equity in India. The strategic rationale looks sound but fixing a valuation might be tricky.
Spanish toll-road bid steamrollers Benettons 18 Oct 2017 ACS has made a 17 billion euro offer for infrastructure operator Abertis, using the balance sheet of its German unit Hochtief. The price is better than a rival bid from Atlantia, controlled by Italy’s Benetton family. It owes more to cheap debt than economic sense.
ACS faces bumpy road to join Abertis battle 13 Oct 2017 The Spanish builder is planning a cash-and-share offer for the toll-road operator using its German Hochtief unit. Beating Atlantia’s $20 billion bid faces several hurdles. The Italian group has offered more cash. For ACS, taking on a lot more debt could also be problematic.
CRH deal cements its U.S. infrastructure bet 21 Sep 2017 The building materials company is buying Kansas-based Ash Grove for $3.5 bln including debt. It’s a full price for a group which likes to buy cheap. Despite doubts over President Trump’s pledge to rebuild highways and bridges, pushing into its key market makes sense for CRH.
China “Belt and Road” waves red flag for investors 18 Sep 2017 Beijing’s vision of infrastructure connecting some 70 countries already has fund firms rushing to create vehicles to lure investment. But broad index ETFs miss that many projects make little commercial sense. Skeptical punters should focus on a narrower set of potential winners.
Telecom Italia breakup is a three-way tug of war 24 Aug 2017 Government ministers are talking about separating Telecom Italia from its network. A breakup could be beneficial for the Italian government, and TI’s biggest shareholder Vivendi. Other shareholders would be harder to satisfy.
Washington has infrastructure backwards 15 Aug 2017 What’s needed to plug a $2 trln investment gap for U.S. airports, roads and such isn’t taxpayer cash. It’s the removal of hurdles to private financing and a change in the mindsets of authorities and consumers. There are good ideas to borrow from the likes of Canada and Australia.
Israeli water deal is a glass half full 7 Aug 2017 Mexichem leaked $220 mln of value on its $1.9 bln purchase of Permira- and kibbutz-backed Netafim. With global populations, drought and pollution growing, though, the drip-irrigation pioneer should fill its new owner’s coffers. India and China, especially, have yet to be tapped.
U.S. water industry trickles toward Wall Street 3 Aug 2017 On the surface, America’s H2O suppliers have much in common with banks. They’re stymied by rates, regulation and too many players, and badly need systems upgrades. That’s encouraging some dealmaking. But with $800 bln in investment needed, the industry needs to pick up the pace.
Cox: Colombia’s peace dividend won’t come easy 27 Jul 2017 The end of a long war against leftist guerrillas should allow Latin America's fourth-biggest economy to attract investment, better allocate capital and grow faster. A trip into rural Colombia reveals how infrastructure neglected for 50 years complicates the challenge ahead.
ACS and Benettons pitch patriotism against brawn 21 Jul 2017 The Spanish construction firm is eyeing a bid for toll-road operator Abertis, rivalling a 16 bln euro offer from the Benetton family’s Atlantia. ACS is smaller and has less firepower, though would keep Abertis Spanish. But the financial logic of a bid is stretched, whoever wins.
Exchange Podcast: Mauricio Cárdenas 18 Jul 2017 After half a century of strife, FARC guerrillas are laying down their weapons and integrating into Colombia's political landscape. The Exchange traveled to Bogota to discuss potential dividends from peace, infrastructure investment and the economy with Colombia's finance minister.
Manila packs a Duterte discount 11 Jul 2017 Equities have delivered poor returns during President Rodrigo Duterte's first year in office. Valuations are similar to regional peers, despite the Philippines' better fundamental growth prospects. Investors are struggling to see past a bloody war on drugs and militants.
Italy’s broadband farce risks state overreach 23 Jun 2017 Ministers are threatening to punish Telecom Italia for building broadband in poor areas. The snag is that it is competing with government-linked rival Enel. Telecom Italia’s French ownership also adds complexity. Whatever the motive, attacking private investment is a risky move.
Trump air-traffic plan flies with rare substance 5 Jun 2017 That's because it's based on Canada's model, years of debate and a 2016 House bill. Updated tech is overdue and the non-profit structure would cut out government without risking a private-sector windfall. Yet it's still no easy win, underlining the challenge for vaguer policies.
Trump budget is schizophrenic on infrastructure 24 May 2017 This week's White House plan adds $200 bln of federal money over a decade. On the flipside, though, it slashes several existing infrastructure-related programs. There are some practical suggestions but, as in the overall budget, smoke and mirrors hamper any real analysis.
Saudis place $20 bln bet against U.S. dysfunction 21 May 2017 The Kingdom's pledge to Blackstone may turn into $100 bln of firepower aimed at upgrading American infrastructure. The problem is finding states and cities that want private cash. Riyadh will need a lot more patience than with its equally huge SoftBank-led tech venture.
Viewsroom: CEO presidency needs boardroom pushback 17 May 2017 Donald Trump’s promise to run the government like a business is proving difficult but Congress could act like strong independent directors to rein in his wayward management. China’s ambitious Silk Road project could leave its people holding the bag. Plus: job cuts at Ford.