Canadian raid may unlock value for G4S investors 11 Apr 2019 Garda World is considering a bid for the UK prisons manager. The 5 billion pound price tag, including debt, looks a stretch for the private Canadian group. But the sale of G4S’s cash management business might still give its long-suffering shareholders a get-out-of-jail-free card.
News M&A battle prints one farce after another 9 Apr 2019 After waving around a toothless credit commitment in its $1.4 bln pursuit of Gannett, Denver Post publisher MNG is going after the board. But its six nominees have ties to either the bidder or its hedge-fund owner. Investors should throw the slate straight into the recycling.
Nordic $3.2 bln telco deal makes little sense 9 Apr 2019 Norway’s Telenor is buying a majority stake in Finland’s DNA and will offer to buy the rest for a total price tag of 2.8 bln euros. The financial returns of this odd move into a mature market will be so slim that CEO Sigve Brekke may do better by handing more cash to investors.
Wynn splurges on a new beginning Down Under 9 Apr 2019 The casino giant wants to buy Australia’s Crown Resorts for $7 bln. Both companies are on the rebound after break-ups with billionaire bosses Steve Wynn and James Packer, and seeking fresh starts. But a hefty 26 pct premium bets too many chips on the return of big spenders.
Japan Post’s insurer returns with better packaging 9 Apr 2019 The postal operator is offloading $3.5 bln of Japan Post Insurance stock. It gives funds to a seller known for dubious M&A. Investors are offered a company at a cheaper valuation and in better health than when this fiddly privatisation process kicked off in 2015.
Engie gets the gas but without the gearing 8 Apr 2019 The French utility’s $8.6 billion deal to buy Petrobras’ Brazilian gas pipelines enables expansion in one of its core areas. Doing so with Canada’s CDPQ limits the extent it needs to push up its debt. That should help keep its new three-year strategy on the road.
Magnit’s Lenta counterpunch has yet to connect 5 Apr 2019 The Russian retailer has lobbed in a rival bid for its domestic rival. Magnit’s approach is fuzzy and barely more generous than oligarch Alexey Mordashov’s swoop for a 42 pct stake in Lenta. But it might prompt minority investors to think twice about which offer they back.
Deutsche Bank’s Brunei hotel ban raises moral bar 5 Apr 2019 The lender joined a celebrity-led boycott of the Dorchester chain after its owner implemented the death penalty for homosexuality. Shunning the sultanate has few costs. But Deutsche will now have to explain relations with countries with similar laws where it has more to lose.
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.