Swiss do their bit for energy resource nationalism 5 Apr 2019 France’s EDF is selling its quarter-stake in fellow utility Alpiq for $489 million. That helps existing Swiss investors take the group private. But it also fits with a wider trend where European states are happier with vital infrastructure being held by domestic owners.
Altaba’s $11 bln tax will be a gift widely shared 4 Apr 2019 Yahoo spent years trying to avoid taxes on selling its stake in China’s Alibaba. After various advisers and schemes failed to find a magic bullet, successor Altaba is paying up. That’s an equitable outcome. It also gives other tax holdouts reason to stop dawdling and pay up.
Apple tea leaves suggest worrying shift on M&A 4 Apr 2019 The $920 bln firm has reduced stock buybacks, its merger specialist now reports to CEO Tim Cook, and its services push needs more oomph. That all suggests bigger deals are coming. Yet one Apple virtue has been avoiding large takeovers that distract from making compelling gadgets.
UniCredit interest gives German bank merger a push 4 Apr 2019 The Italian lender is considering a bid for 9 bln euro Commerzbank if talks with rival Deutsche Bank fail, the FT says. A combination with UniCredit’s German arm makes sense but would leave Deutsche weak at home. That redoubles pressure on the government to back a domestic deal.
France’s $1.5 bln reason to put Renault over Ghosn 4 Apr 2019 That’s how much more the state’s stake in the carmarker could be worth if the discount at which the company is trading disappears. Mending Nissan relations is a precondition. Paris may only do the minimum to help former CEO Carlos Ghosn, who has called for the government’s help.
Euronext-Nasdaq row tests Norway’s market faith 4 Apr 2019 The $800 mln takeover battle for Oslo’s stock exchange should reside solely on financial logic. The cash offers are identical. But Euronext wooed more investors. Allowing Nasdaq to tweak the rules of engagement would be a defeat for capital markets, and Norway.
KKR plays weaker cards well Down Under 3 Apr 2019 The stakes got high in its $1.4 bln buyout of Australian software developer MYOB after a U.S. hedge fund pressed for a better price. It made a reasonable case holding a potential blocking stake, but KKR stood pat and the pushy investor folded. Seasoned gamblers are hard to bluff.
TPG leaves Russian retail with a whimper 2 Apr 2019 A decade after first investing, the buyout group is to sell its stake in retailer Lenta to tycoon Alexey Mordashov at an implied valuation of $1.7 bln. A 12 pct return is decent enough, but still below what TPG might have hoped for.
Publicis’ $5 bln deal would push data fad to limit 1 Apr 2019 The French group may buy Alliance Data’s digital-marketing unit. The mooted price tag is manageable given Publicis’ pristine balance sheet. But the low returns on offer suggest that CEO Arthur Sadoun is worried about keeping up with data-rich ad rivals and tech giants.
Swiss freight group gets pirate’s bounty from DSV 1 Apr 2019 The Danish logistics company is handing over shares worth $4.6 bln for Panalpina after a months-long spat involving activist Cevian and a charitable foundation. The price is too good to turn down. Expert acquirer DSV will have to beat its own track record to make the deal pay.
Viewsroom: Who will drive off with Fiat Chrysler? 28 Mar 2019 Peugeot and Renault both seem keen to merge with the Italo-American carmaker. Either deal could improve earnings from smaller cars, but couldn’t plug all Fiat Chrysler’s gaps in Asia and new tech. Plus: Apple’s underwhelming new services. And can Huawei’s charm offensive succeed?
German bank union teeters on a capital knife-edge 28 Mar 2019 Deutsche Bank could in theory buy Commerzbank without breaching its 13 pct equity target. That requires the benefit of the doubt from regulators on merger costs and accounting, and assumes no changes to Deutsche’s investment bank. Raising more cash undermines the deal’s benefits.
Lyft takes Japanese backer Rakuten on new ride 28 Mar 2019 An IPO valuing the U.S. taxi app at up to $24 bln warrants a fresh look at its biggest shareholder. Lyft will now account for about a fifth of the sprawling Rakuten’s market value. Even with a SoftBank-lite investment success, however, the scattershot approach looks shaky.
Saudi’s $69 bln asset rejig starts banker payback 27 Mar 2019 Aramco is buying a 70 pct stake in chemical group SABIC from the kingdom’s sovereign wealth fund. The reshuffle is mostly an internal affair but the oil giant will issue bonds to pay for it. That gives banks who have spent years courting the company some return for their efforts.
Multiple political bets birth $17 bln health deal 27 Mar 2019 Centene’s purchase of WellCare is a gamble on continued U.S. government support for care of the elderly just as the Trump administration is challenging Obamacare. It’s also a wager that regulators won’t stop the deal or force hefty divestitures. Scale makes that a reasonable bet.
Fiat Chrysler might gain from M&A waiting game 27 Mar 2019 The carmaker is in demand. Already the subject of interest from Peugeot, it could also face a bid from a merged Renault-Nissan, the FT says. Such a deal would be tricky and take time. But patience could give the Agnelli clan better options to solve FCA’s tech and Asian headaches.
Ashley’s retail foray more desperate than inspired 27 Mar 2019 Sports Direct, controlled by Mike Ashley, may pay 61 mln pounds for struggling high street chain Debenhams. But taking on its heavy debt and leases, or restructuring them later, would be tricky. Ashley’s best bet may be to agitate for a higher payoff for his 30 percent stake.
Holding: Time to put M&A cash cow out to pasture 26 Mar 2019 So-called appraisal cases have rewarded shareholders and deterred dodgy deals. But judges’ reluctance to set share prices, an expert-witness scandal and other trends have made them less lucrative. The HP-Aruba merger gives Delaware’s top court a chance to end the tactic.
Fizzy Fevertree valuation depends on global surge 26 Mar 2019 The maker of fancy tonic boosted sales by 40 pct last year. Discerning spirits drinkers have helped lift its valuation to 3 bln pounds, a frothy 33 times forward EBITDA. To justify that premium, Fevertree has to replicate its UK success elsewhere - or find an optimistic buyer.
Uber gets an IPO boost from Middle East deal 26 Mar 2019 The ride-hailing giant will pay $3 bln to acquire Dubai-based rival Careem. It shows the group, which is burning through $1 bln a year, can still spend to grow as it prepares to go public. Amid intense overseas competition, the move gives Uber one less thing to worry about.