Packaging megadeal would have fragile finances 8 Sep 2017 A mooted bid by Sydney-listed Amcor for U.S. rival Bemis could be one of the sector’s biggest-ever deals, worth $6 bln-plus including debt. There is strategic logic – but the takeover would barely eke out an acceptable return, and could require a big equity raising.
With sound packaging, bold M&A can still be done 17 Jan 2012 Shareholders killed Britain’s last ambitious takeover requiring a rights issue. Now the market is applauding a $2 bln move by DS Smith, the packaging group, on a unit of Sweden’s SCA. Showing restraint on leverage and on deal price helps, as does teeing up key investors.
IKEA struggles to stay above board in Russia 15 Feb 2010 The Swedish furniture giant has sacked two top executives in Russia for authorising bribery. IKEA deserves praise for sticking to its values. The retailer may lose out by maintaining a global ethical standard, but ultimately Russia loses more from its culture of corruption.
International Paper in largest-ever timber land sale 4 Apr 2006 The $6bn of proceeds looks like a good price for International Paper s 5m acres. IP wants to retire debt and invest some of the proceeds. It would create more value by returning cash to shareholders.
Private bidder puts Georgia-Pacific together again 14 Nov 2005 Koch Industries is able to pay a fat premium for listed GP because it already owns a forest products business it bought from er, GP. Shareholders are entitled to ask why management broke the company up in the first place.
Italian bond market knocked by Cirio scandal 25 Nov 2002 Cirio's bankers exploited a loophole allowing unrated bonds without any prospectus to end up in the hands of retail investors. Now that the E1.1bn bond has defaulted, retail investors will at least temporarily lose their appetite for corporate bonds.
Hays warns of 10-15% profit shortfall 31 Oct 2002 A deteriorating environment may well be partly to be blame. But so, undoubtedly, has been the long absence of a CEO. The new boss, who joins next week, will have his work cut out. At least the slate has been wiped before his arrival.