Nelson Peltz becomes gadfly to Disney’s flywheel 5 Mar 2024 A 130-plus page presentation makes a strong case for how and why the $210 bln company's boss Bob Iger didn't do his job. Activist Nelson Peltz’s ideas for fixing Disney are weaker. Still, CEOs run companies; board members keep tabs. In a smaller world, Peltz might win a seat.
Boeing’s reverse deal thrust augurs small tailwind 4 Mar 2024 Jettisoning supplier Spirit AeroSystems in 2005 benefited the plane-maker, but only temporarily. Financial weakness is now compounding 737 MAX woes and hurting shareholders of both companies. Buying back the $4 bln former subsidiary should generate value in quality improvement.
Elliott has limited ammo in UK retail bidding war 4 Mar 2024 The US investment group’s latest $951 mln offer for retailer Currys could have yielded an adequate return. But the target has rejected it. Hiking the offer looks tricky given the ropey UK economy, reduced scope for leverage, and potential rival bidder JD.com’s deep pockets.
UK $4 bln insurance mash-up may yet motor 28 Feb 2024 Direct Line rejected a cash and share offer from its $8 bln Belgian rival Ageas. The target’s depressed share price suggests it has good reason to hold out for more. And synergies related to the two groups’ capital should give Ageas scope to hike its offer.
A $16 bln deal models buyouts’ modest comeback 28 Feb 2024 Private equity’s 2023 was a year to forget; 2024’s near-$100 bln of buyouts is a better start. The carve-out of Truist’s insurance unit shows banks willing to lend, finally, at a decent level. Crazy checks won’t return until rates fall again, but for LBO shops, it’s a start.
Vodafone’s Italy exit puts speed before valuation 28 Feb 2024 The UK telco looks poised to sell its hard-pressed local business to Swisscom for 8 bln euros in cash. The price tag is lower than a previous Iliad offer. But it’s a cleaner exit, and advances boss Margherita Della Valle’s goal of prompt M&A to make her company less sprawling.
Exxon juggles stick of dynamite near Hess deal 27 Feb 2024 The oil giant and Chinese partner CNOOC say Chevron’s $53 bln acquisition of Hess gives them the right to buy the latter’s crown jewel stake in a Guyana oil field. While that threatens to blow up Chevron’s plan, an Exxon purchase also could saddle it with a risky time-bomb.
Capital Calls: Charter and Altice 27 Feb 2024 Concise views on global finance: Tying up Charter, the cable giant backed by the media mogul, with rival Altice USA would form the country’s largest broadband player. That isn’t worth bearing the burden of regulatory hurdles, Altice’s mountain of debt, or its over-rich valuation.
Stephen King ghost-writes trustbusting bestseller 27 Feb 2024 The US FTC is suing to block the $25 bln merger of grocers Kroger and Albertsons partly because of perceived harm to union labor. It resembles, oddly enough, a winning DOJ lawsuit over Penguin’s deal to buy Simon & Schuster. The case has a good shot at becoming a horror classic.
Europe defence push requires clearing M&A barriers 27 Feb 2024 The region is hiking military spending to aid Ukraine and become less dependent on the US. Yet governments are squandering investment on incompatible weapons and systems. Creating more regional champions, like aerospace giant Airbus and missile maker MBDA, is a top priority.
Alcoa forges smart deal out of metal woes 26 Feb 2024 The US metal producer wants to buy Alumina, whose sole asset is 40% of a joint venture with its wannabe new owner. Benefits to Alcoa from the $2.2 bln deal include a simpler structure. And selling investors get a premium despite rising costs and falling aluminium prices.
Ant puts its talent for disruption back on display 26 Feb 2024 The Jack Ma-founded fintech firm has outbid Citadel for Credit Suisse's investment-banking unit in China, Bloomberg reports. A deal makes little sense but would signal the payments-to-lending group is back in good standing with Beijing. A smaller Ant can still surprise.
Capital Calls: Oil M&A 22 Feb 2024 Concise views on global finance: The $11 billion Williston Basin combination of Chord Energy and Enerplus lacks the wow factor of Exxon’s and Chevron’s mega-mergers, but there are sufficient savings to suggest more deals will be on the way.
Universal Music’s John Legend deal is harmonious 21 Feb 2024 The music giant is purchasing a more than 25% stake in Chord for $240 mln, gaining some control over the music with a sliver of its own money at risk. Importantly, Universal is buying Chord from KKR. Swapping tunes between sophisticated buyers legitimizes the business.
Walmart buys TV portal to nowhere 20 Feb 2024 The $484 bln retailer is buying smart-TV maker Vizio for $2.3 bln. It’s a tiny gamble on the possibility the operating system eventually captures individual viewing habits and beefs up ad capabilities. But given Walmart’s M&A track record, chances are, it’s still a waste.
Capital One will struggle to cash in M&A rewards 20 Feb 2024 An $80 bln deal with Discover would create a credit-card giant with a Visa-like payment network and huge cost savings. These perks can only be redeemed by overcoming political foes, regulators and the target’s conduct issues. On balance, it’s wise to buy now, and maybe pay later.
JD is logical winner of odd UK retail bidding war 19 Feb 2024 The $37 bln Chinese e-tailer is mulling an offer for Britain’s Currys, also the subject of interest from Elliott Advisors. A feeding frenzy for a sub-$1 bln UK asset with an unproven turnaround story sounds weird. But JD.com’s need to expand overseas is a strong motivation.
Deal famine is driving private equity evolution 15 Feb 2024 M&A activity fell 30% in 2023 and this year is off to a relatively slow start. In this Viewsroom podcast, Breakingviews columnists discuss how a dearth of deals is spotlighting a shift of focus among traditional buyout houses like KKR and Carlyle into areas like private credit.
Japan’s overseas tech deal crosses financial wires 15 Feb 2024 Electronics design outfit Altium has a smart product and is growing at a decent pace. That doesn't justify Renesas paying $6 bln for the Australian-listed company. Unless the buyer can supercharge revenue, it's another Japanese outbound deal that will generate meagre returns.
Capital Calls: Lyft 14 Feb 2024 Concise views on global finance: The US ride-hailing firm mistakenly forecast 500 basis points of margin improvement for 2024, causing its stock to surge some 60% before it came back to earth.