Shipping giants will plot course for landbound M&A 22 Dec 2021 Soaring container fees pushed the valuations of seaborne transport companies to record highs. Those trends will reverse in tandem. Still, with sacks of cash on board, ocean-goers like Maersk can buy landlubbing logistics rivals in preparation for the next supply-chain crunch.
Toshiba clears path for big 2022 Japanese buyouts 22 Dec 2021 The $18 bln conglomerate plans to split, but a takeover bid betrayed private equity’s voracious appetite in the country. A few dozen chunky companies suit the LBO financial model, per a Breakingviews analysis. Closer inspection suggests a tempting target among them is Ricoh.
Bolloré’s happy Africa exit hints at more deals 21 Dec 2021 French tycoon Vincent Bolloré may sell his African logistics business to shipping group MSC for 5.7 bln euros. It’s a rich price for an asset tainted by a bribery scandal. He could use the cash to buy more cheap shares in his media group Vivendi, or his own investment company.
KKR sends strong buy signal on European telecom 17 Dec 2021 The private equity firm is paying 1 bln euros for half of a Spanish fibre-optic network at a multiple of 22 times EBITDA. It already owns Madrid-based Masmovil, tilted at Dutch operator KPN in May and is stalking Telecom Italia. Eventually, public investors will get the message.
KKR can still find gems in Telecom Italia’s wreck 16 Dec 2021 Chopped into bits, the struggling Italian telecom operator may be worth 38 bln euros including debt. Its network alone, in which its U.S. stalker has a stake, is probably worth almost half that. A breakup may add a quarter to the fund’s 10.8 bln euro prospective offer.
Billionaire Drahi plays the long game at BT 14 Dec 2021 The Franco-Israeli tycoon has upped his stake in the UK telco to 18%. The government would almost certainly nix a full bid, especially with BT’s fibre-optic rollout hitting top speed. But with operators across Europe falling into private hands, Drahi can afford to sit and wait.
Europe’s phone firms line up for last tower dance 10 Dec 2021 Vodafone and Deutsche Telekom bosses both want to hook up their mast divisions with a partner. France’s Orange is also in the mix, having just completed an internal carveout. With its tower unit already listed, Vodafone has an advantage. An Orange tie-up is the simplest fit.
Bondholders are biggest losers in telco LBO frenzy 1 Dec 2021 Telecom Italia’s bonds fell on fears that the securities may not be redeemed if KKR’s $37 bln buyout succeeds. The M&A boom has made unexpected targets of large public companies. Even when investors enjoy stronger protections, as with UK rival BT, these offer limited solace.
Telecom Italia will keep bankers busy in 2022 29 Nov 2021 KKR’s $12 bln proposal has put the telco in play. The process is likely to involve multiple bidders and key actors including French shareholder Vivendi and the Italian government. As with Telecom Italia’s 1999 leveraged takeover, it’s a boon for bankers, lawyers and consultants.
Mukesh Ambani BT bid would struggle for clear line 29 Nov 2021 His Reliance would earn a so-so return buying the UK telco’s enterprise for 38 bln pounds. It’d be a distraction for his energy-to-retail conglomerate’s huge India ambitions too. He can more comfortably get a taste of a rich market by narrowing his focus to BT’s broadband unit.
Cox: Telecom Italia and the curse of the euro era 25 Nov 2021 The 1999 buyout of Italy’s phone monopoly baptised Europe’s new single currency. The years since have been terrible for the company and its many trophy-seeking owners, who have lost some $23 bln. Here’s why the latest offer from private equity firm KKR offers hope for redemption.
KKR has wiggle room to sweeten Telecom Italia bid 24 Nov 2021 The U.S. private equity group will need to raise its 33 bln euro offer for the Italian telco to win over investors Vivendi and CDP. It’s already the largest buyout in European history. But KKR has ways to fund the deal without overloading Telecom Italia with debt.
Capital Calls: China’s data centre sale 24 Nov 2021 Concise views on global finance: Global Switch is attracting big-name private equity interest, but its quirky setup might justify suitors asking for a discount.
KKR bid is next act in Telecom Italia soap opera 22 Nov 2021 The buyout group wants to take the phone operator private for 10.8 bln euros. Offering less than the pre-pandemic share price looks opportunistic. Yet the 47% premium will tempt all but top investor Vivendi, which is nursing hefty losses. The board should start a conversation.
Biden at war with himself on supply-chain battles 16 Nov 2021 The U.S. president wants to ease bottlenecks but punitive tariffs on Chinese-made port equipment, a vaccine employer mandate, and expiring contracts with a dock workers union stand in the way. Solving the problems require changing Biden's policies. Neither will be fixed soon.
Data-center valuations enter the metaverse 15 Nov 2021 CyrusOne has struck a deal with buyout firm KKR for a rich $15 bln, while peer CoreSite is selling itself to American Tower for $10 bln. Both deals show from different angles how financial and industrial buyers are banking on the arrival of Silicon Valley’s new virtual reality.
Capital Calls: BT’s fibre, Ford vs. Toyota, SocGen 4 Nov 2021 Concise views on global finance: Leaner broadband rollout boosts the UK telco’s defences against uppity investor Patrick Drahi; the two carmakers trade at similar multiples despite the Japanese outfit’s racier performance; the next leg of the French bank’s revamp will be harder.
African phone-mast IPO priced for smooth safari 11 Oct 2021 IHS, which operates 30,000 towers across the continent, is listing in New York after an aborted attempt in 2018. Though its exposure to turbulent Nigeria is a worry, telecom kit has proved its worth in chaotic places. A market value of up to $8 bln reflects a generous discount.
Telefonica can play hard to get in fibre sale 6 Oct 2021 The 23 bln euro Spanish telco may flog a chunk of its super-fast domestic broadband network. With the fibre rollout almost done and debt vaguely in check, Telefonica isn’t desperate for the cash. That means it can wait for a buyer ready to top the reported 15 bln euro valuation.
Capital Calls: Pandora, Facebook files pack punch 4 Oct 2021 Concise views on global finance: A leak with rich people’s offshore activities and a Facebook exposé reinforce perceptions with facts; GitLab’s float shows Microsoft’s wise 2018 buy; Volvo IPO aims to supercharge EV plans; BT’s bid to rule UK broadband may face U.S. competition.