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.
Rare-earth bid reverts Aussie conglomerate to type 26 Mar 2019 After spinning off supermarkets and selling coal, $27 bln Wesfarmers is back adding to its sprawl with a $1.1 bln offer to buy Lynas. The attraction of owning the only major producer of speciality ingredients outside China is clear, but the financial and strategic cases less so.
Second-hand $4 bln colostomy bag LBO may get messy 26 Mar 2019 Medical-kit maker ConvaTec’s value rose 9 pct after a report that buyout group EQT might be interested. Its shares are down a third since it was floated by private equity in 2016. A new owner could slash costs to rip out cash, but risks sacrificing more market share to rivals.
Hostile Indian IT bid does not compute 26 Mar 2019 Larsen & Toubro’s $2 bln tilt offers a measly premium for outsourcer Mindtree. The buyer’s vow to keep the outfit separate to its existing IT businesses seems odd, and deprives the target of a higher-performing parent. A sweeter price and a clearer plan could seal a better deal.
Extra! Newspaper bidder flubs credit test 25 Mar 2019 MNG, owner of the Denver Post, is waving a “highly confident” financing letter from Oaktree to advance its hostile bid for publisher Gannett. Yet MNG isn’t clear if the debt specialist will even bother to lend it $1.7 bln. The tactic is as unconvincing as it is unconventional.