Chinese homebuilders see no light at end of tunnel 9 Aug 2023 The property crisis is claiming one of the few big developers left standing. Country Garden might dodge a default but slowing sales make honouring $200 bln of liabilities and building 1 mln apartments hard. Beijing is pushing firms to the brink, and they have reason to push back.
Altice’s beaten-up debt is only a bet for the bold 8 Aug 2023 Patrick Drahi’s telco empire faces a funding crunch, with $60 bln of debt coming due by 2030. He must pull off a tough turnaround in France and sell assets, a tricky task made even harder by a corruption probe. Even with current high yields, Altice debt is a risky punt on Drahi.
Capital Calls: Cathay, Telecoms kit makers, Byju’s 14 Jul 2023 Concise views on global finance: The Hong Kong carrier expects to turn a profit; a push into 5G has caught European telecoms gear makers like Nokia and Ericsson short; India’s troubled ed-tech giant appoints a top former banker to a newly formed advisory council.
History is against UK and Spanish telecoms M&A 12 Jul 2023 Vodafone and Orange have deals worth $40 bln on antitrust agencies’ desks. Europe has only once approved a similar merger without competitive remedies, which involved a tiny Dutch player. The telcos may have to make big concessions, undermining their tie-ups, or accept defeat.
Capital Calls: Eli Lilly gorges on obesity options 27 Jun 2023 Concise views on global finance: The drugmaker found patients losing an incredible 24% of their weight on one of its latest treatments. First-movers don’t always win out in pharma, however, as Pfizer proved with Lipitor. That’s why Lilly is wise to keep investing in alternatives.
Capital Calls: Canada is calling Meta’s bluff 23 Jun 2023 Concise views on global finance: The Facebook owner plans to pull news on its platforms in Canada after the country passed a bill that requires internet giants pay publishers. If Australia is any guide, Meta will eventually cave.
EU phase-out of Huawei, ZTE is tricky but vital 20 Jun 2023 Commissioner Thierry Breton wants EU countries to end use of Chinese telecoms gear on national security grounds. Some states have already cut Huawei and ZTE from 5G networks. The EU survived decoupling from Russian energy, and it can manage this. But it requires German buy-in.
Vodafone’s do-or-die UK deal is a risky bet 14 Jun 2023 The $24 bln telecoms firm is merging its UK mobile business with CK Hutchison’s Three to create Britain’s largest network. It is promising investment to win over competition watchdogs. It could backfire, but CEO Margherita Della Valle has few easy ways to please weary investors.
Telco tycoons’ UK bets look stuck underwater 25 May 2023 Patrick Drahi, Xavier Niel, John Malone and Abu Dhabi’s e& have lost $2.4 bln on about $13 bln worth of investments in BT and Vodafone, Breakingviews estimates. It’s hard to see either firm recovering soon, leaving their big-money backers potentially stuck in the quicksand.
Capital Calls: BT, Mediobanca 18 May 2023 Concise views on global finance: The 14 bln pound UK telco’s vague guidance is a concern for its two big shareholders seeking to recoup losses; the 8.5 bln euro Italian bank buys its biggest boutique yet.
Gautam Adani’s fundraisings offer multiple tests 16 May 2023 His companies are preparing to tap capital markets for some $3 bln, three months after a short attack succeeded in obliterating $120 bln and 50% off his group’s value. It will test the Indian conglomerate’s reputation, his attitude to public equity, and the besieged regulator.
Capital Calls: Wood Group 15 May 2023 Concise views on global finance: Apollo’s aborted bid for the $1 bln UK infrastructure firm prompted a 35% share price fall.
Capital Calls: Unilever, Shopify 4 May 2023 Concise views on global finance: The consumer goods company may need to backtrack on a pay package for its incoming CEO to quell a shareholder revolt; shares in Canadian e-commerce firm Shopify shot up over 20% after it said it was selling its logistics business to Flexport.
Telecom Italia is stuck in risky game of chicken 4 May 2023 The telco’s board must decide on rival bids from KKR and state investor CDP for its fixed-line grid. None comes close to the 31 bln euro price wanted by top investor Vivendi, but cash is needed to slash debt. If neither side blinks, the group could face a messy capital increase.
Capital Calls: Exxon, US regional banks 28 Apr 2023 Concise views on global finance: Exxon’s two golden eggs are the Permian and Guyana; market composure gives time for a First Republic fix.
Brookfield deal models infrastructure-as-a-vibe 12 Apr 2023 The Canadian investment giant is buying container-lessor Triton in a $13 bln deal. Calling it infrastructure may sound like a stretch, given the volatility of the shipping industry. But if what investors really want is infrastructure-like cash flows, the definition can be broad.
Another cultish cost-saving formula gets off-track 29 Mar 2023 Like GE’s Six Sigma and zero-based budgeting at Kraft Heinz, the railroad version of efficiency has gone too far. It is being tested at $120 bln Union Pacific, where a pushy investor wants devotee Jim Vena to be CEO. New industry concerns suggest it’s time to slam the brakes.
Xavier Niel can feast on European telco misery 27 Mar 2023 The French tycoon has assembled a privately owned telecoms empire worth about $33 bln, Breakingviews calculates. Behind the scenes he’s manoeuvring to further spread his wings. Purchases of stakes in Vodafone and Luxembourg-based Millicom signal the scale of his ambition.
Capital Calls: Bank of England, Wonder drugs 23 Mar 2023 Concise views on global finance: The UK central bank has joined peers in raising rates, but there’s not much room to keep hiking. Meanwhile, a drug that might help smokers’ lung is could be good for makers Regeneron and Sanofi, but even better for society.
CRH’s firm foundations go beyond where it lists 2 Mar 2023 The $38 bln cement maker’s stock rose amid plans to move its primary listing to the U.S. The shift may indeed prompt a re-rating of CRH shares. But the main driver of the latter will be its even greater focus on an infrastructure subsidy-rich market, and on higher-margin work.