Vodafone’s deal zeal is a risk factor 12 May 2022 The telecoms group may combine its UK business with smaller rival Three, owned by Hong Kong’s CK Hutchison. Its 39 bln pound debt pile makes a joint venture more likely than an outright purchase. CEO Nick Read’s eagerness to hook up means he may not secure the best deal possible.
China’s private cloud giants sail into storm 10 May 2022 Alibaba and Tencent want to dominate the country's $35 bln data storage and services market. But cybersecurity hawks are pushing contracts toward state-backed firms. Trying to identify and back China's answer to Amazon Web Services may not turn out the way investors expect.
Africa is imperfect solution to Europe’s gas woes 28 Apr 2022 The continent’s vast reserves and growing liquefied gas supplies can cut some of the bloc’s energy dependence on Russia. Yet lack of infrastructure, domestic needs and rigid contracts limit Africa’s ability to boost exports quickly. Political instability is a further headache.
Energy efficiency starts to attract the big bucks 25 Apr 2022 Brookfield’s potential $4 bln pitch for UK boiler repair group HomeServe sounds like small fry for a group with $690 bln of funds. But decarbonising buildings is a key growth area in the energy transition. Institutional investors are manoeuvring to ensure they don’t miss out.
Italian motorway menu serves the Benettons well 21 Apr 2022 The dynasty may merge its Autogrill chain with $4 bln Swiss duty-free specialist Dufry. Though slightly bigger, the latter is suffering the worse Covid-19 hangover. Even though they’re surrendering control, the Benettons would still have a strong hand to get a good deal.
Blackstone’s Italian gambit can stay on the road 14 Apr 2022 Looking to deter a rival bid, the buyout group has teamed up with the Benettons to take infrastructure group Atlantia private. The 19 bln euro equity value looks steep. Yet inflation protection from concession assets and cash from an upcoming sale justifies the swoop.
Ex-Goldman conviction is partial justice for 1MDB 8 Apr 2022 A U.S. jury found Roger Ng guilty of corruption linked to the Malaysian fund. His ex-boss who helped organize the scheme may get a lesser penalty for cooperating with prosecutors; the Wall Street firm got off with a $5 bln fine. It’s an imperfect deterrent for future miscreants.
Pérez vs. Benettons will be an uphill struggle 7 Apr 2022 ACS, run by Spanish magnate Florentino Pérez, has sided with Brookfield and GIP to buy road group Atlantia, 33%-owned by the Italian tycoons. A takeover could cost 20 bln euros net of debt, but a looming 8 bln euro asset sale would help. Winning over the Benettons will be harder.
Capital Calls: U.S. truck drivers go missing 4 Apr 2022 Concise views on global finance: Bonuses and concessions from Washington aren't enough to fill the industry's empty cabs.
CVC throws Telecom Italia a tricky lifeline 29 Mar 2022 The buyout firm wants to buy 49% of the troubled telco’s corporate business, which it values at 6 bln euros. A deal would help CEO Pietro Labriola trim debt. But it could complicate KKR’s push to take the group private. More crossed wires is the last thing shareholders need.
Capital Calls: Telecom Italia takes KKR’s call 14 Mar 2022 Concise views on global finance: The Italian telco’s board decides to start formal talks with the buyout firm, four months after it first proposed a 10.8 bln euro takeover.
Rio’s Mongolian generosity reflects strategic bind 14 Mar 2022 The $120 bln miner has offered $2.7 bln to buy out minority investors in Turquoise Hill, which controls the giant Oyu Tolgoi copper mine. Rio Tinto could have paid less last year. But its lack of metals needed for alternative energy makes it vital to remove any future barriers.
Barcelona’s 5G hype is recipe for hyperventilation 4 Mar 2022 Telecoms bosses converged on the Spanish city this week after a two-year hiatus. From robot dogs to holographic compères, the tech-fest painted a utopian view of a wired future. For CEOs like Vodafone’s Nick Read, the difficulty is making it happen while also making money.
Ericsson Iraq snafu dents already-shaky M&A logic 2 Mar 2022 The telecom kit maker’s shares fell 12% after U.S. authorities said it broke a deferred prosecution agreement over possible payments to Islamic State. A large fine would make the $6.2 bln acquisition of Vonage more risky. That puts pressure on CEO Börje Ekholm to find a way out.
Ericsson’s ISIS fallout could go beyond big fines 16 Feb 2022 The Swedish telecoms group says it may have made indirect payments to Islamist militants in Iraq. That’s way worse than the brown envelopes it sent in places like Vietnam that cost $1 bln in fines. Besides harsher U.S. penalties, Ericsson may find life tougher in its key market.
Vodafone intruder adds hope to activist toolbox 31 Jan 2022 Shareholder Cevian Capital lacks obvious levers to boost the 36 bln pound telco’s performance. Consolidation in markets like Spain, Italy and the UK would lower costs and improve pricing. But success depends on competition watchdogs dropping their opposition to fewer operators.
Capital Calls: GE’s Larry Culp learns to say “no” 25 Jan 2022 Concise views on global finance: It will be a while before the industrial conglomerate’s markets normalize, and its planned breakup takes place. In the meantime GE is trying to cut costs and be more selective. That means less revenue, at least at first.
Capital Calls: Dan Loeb’s gadfly circles again 18 Jan 2022 Concise views on global finance: The U.S. activist’s activists up the ante with call for independent director.
Mammoth re-engineering project begins: Germany 28 Dec 2021 Its manufacturing-led, carbon intensive economy is ill-suited to the 21st century. Chancellor Olaf Scholz and firms like Volkswagen will spend more on green and digital investment. The trick will be to plough on despite short-term supply chain problems and rising labour costs.
Climate-change money will flow freely to Plan B 24 Dec 2021 COP26’s so-so outcome makes damaging temperature rises more likely. At some point, optimal portfolios may require guns and canned food. Until then investors will lean towards shares in Syngenta, Veolia and other companies that aid adaptation to global warming not just mitigation.