Capgemini’s clock is ticking in Elliott standoff 15 Nov 2019 The French IT group’s $4 bln deal for Altran is being held up by the activist fund and separate legal action. CEO Paul Hermelin is due to pass the torch to his successor next year. Sweetening the offer to ensure 50.1% of Altran shareholders tender would be a nice parting gift.
ArcelorMittal win will help India heal debt wounds 15 Nov 2019 The country’s top court squashed a decision that threatened the steelmaker’s $6 bln bid for Essar through a new bankruptcy regime. The Mittal family’s homecoming can go ahead. It’s also a timely boost for lenders and investors needed to re-energise the flagging economy.
Thermo Fisher diagnoses rare $10 bln land grab 14 Nov 2019 It’s circling Qiagen, a month after the diagnostics firm changed strategy and ditched its long-time leader. The would-be acquirer may spy an opportunity to snap up its rival while its defenses are weakened. The risk is that outweighs the pursuit of good returns.
If only Viacom-CBS were fixable like Sonic’s teeth 14 Nov 2019 The U.S. media firms are worth a quarter less than when they agreed their $28 bln union, thanks partly to external competition and internal discord. Viacom rejigged its “Sonic the Hedgehog” movie because fans hated the hero’s fangs. In the real world such surgery isn’t an option.
Carl Icahn prints money on both sides of HP-Xerox 14 Nov 2019 The activist was already influential at Xerox, which last week offered over $30 bln to buy HP. Now he’s an investor at its far larger rival, more logically a buyer than a target. Icahn needs an exit from Xerox, and forcing a deal – almost any deal – with HP is one of few options.
SoftBank would win from $15 bln Yahoo-Line rejig 13 Nov 2019 Masayoshi Son’s restless conglomerate may combine its stake in the Japanese search engine with Naver’s holding in the country’s leading messaging app. Both could benefit from a pickup in digital payments. SoftBank, though, would gain new exposure to Line’s more dynamic business.
Health data’s value blooms as anxiety looms 13 Nov 2019 Google’s tie-up with a large hospital chain and purchase of wearable device maker Fitbit aren’t inherently troubling, but expose some gray areas. Laws already protect personal data gathered from the former deal, but not the latter. Google’s interest may prompt a change.
Value fight would drive Peugeot into cul-de-sac 13 Nov 2019 Investors in the French carmaker may question CEO Carlos Tavares’ zeal for a merger with rival Fiat. But holding out for better terms is futile when big shareholders with 50% of voting rights back the plan. Opposing the deal would also undermine Tavares, Peugeot’s top asset.
Buyout groups risk pricey scrum in German lifts 13 Nov 2019 Private equity managers are teaming up to buy Thyssenkrupp’s elevator unit, worth maybe 17 bln euros. That smacks of the ill-fated club deals that epitomised the last buyout boom, although the target’s stable cash flows makes a blowup unlikely. The biggest risk is overpaying.
Saint Gobain’s US deal has little margin for error 13 Nov 2019 The $22 bln construction company is buying Virginia-based Continental for $1.4 bln. CEO Pierre-André de Chalendar is paying a full price to ease his reliance on Europe. Even with hefty cost savings, the French group’s shareholders face a long wait to make an acceptable return.
Walgreens LBO could bring the band back together 12 Nov 2019 Buyout shop KKR and drug chain boss Stefano Pessina achieved the improbable in buying retailer Boots and merging it with the U.S. drug store. The fortunes they made may tempt them to an $87 bln buyout of Walgreens. Once again, they’ll need luck, partners and forgiving markets.
Viewsroom: When the CEO breaks the rules 7 Nov 2019 McDonald’s has provided a map for other firms after ousting boss Steve Easterbrook over a consensual relationship with an employee. Elsewhere, Aramco’s IPO and Fiat Chrysler’s merger with Peugeot. Plus: Breaking Japan’s love of hard cash.
Walgreens Boots LBO is an idea on drugs 6 Nov 2019 Boss Stefano Pessina turned an Italian pharmacy wholesaler into the $55 bln group. But if he’s thinking of taking Walgreens private, that’s in overdose territory. Even if he rolls his 16% stake, he might need $20 bln of new equity – a huge stretch even for today’s buyout firms.
Xerox buying HP is upside-down 6 Nov 2019 The $8 bln digital printer may make an offer for the $27 bln PC maker. That would require a takeover premium about equal to Xerox’s whole market value and would only make sense with massive cost cuts. If the savings are that big, though, HP should be on the case already.
Will a Tiffany bid give LVMH enough sparkle? 5 Nov 2019 Bernard Arnault’s luxury group is offering $15 billion in cash to take home the blue-box jewellery chain immortalised by Audrey Hepburn. The market is betting on a higher bid than the $120 a share on offer. But making a deal work will require a lot of polish.
Tiffany takeover needs a lot of LVMH polish 5 Nov 2019 To earn a positive return on its $15 bln bid in five years, Bernard Arnault’s group will have to lift the jeweller’s revenue growth and margin above its own, a Breakingviews calculator shows. That’s hard. Tiffany investors hoping for a higher offer are testing LVMH’s patience.
Peugeot rescue pays better for China than cars 5 Nov 2019 Dongfeng has made some $2 bln from its 2014 rescue of Peugeot, which aims to merge with Fiat Chrysler. The state-owned car giant can cash out and euthanise its stalled JV with Peugeot too. Both moves would be financially wise, if strategically embarrassing, for China and France.
U.S. bank merger is step in the right direction 4 Nov 2019 First Horizon and Iberiabank are getting together. The new bank will have $75 bln in assets, easier without the old $50 bln threshold for extra regulation. Investors seem to approve. That’s a reaction that could spur needed consolidation – as long as deals add up in other ways.
LVMH’s greatest gift to Tiffany could be privacy 1 Nov 2019 The U.S. jeweler may think Bernard Arnault’s $15 bln offer is stingy. But LVMH’s semi-private embrace might allow Tiffany to undertake the generous investments it needs, and which public investors are unlikely to welcome. Arnault could even bring shareholders along for the ride.
Google’s hardware mishaps may help snag Fitbit 1 Nov 2019 The internet firm’s $2.1 bln offer for the fading fitness-device firm sounds like an easy win. Yet regulators are actively pondering whether past tech takeovers were less benign than they seemed. Google’s best defense may be its poor track record with gear.