Restructuring

Movie theater chain’s spotlight will stay dark

23 Feb 2023

A Pennsylvania pension fund is suing AMC over a decision to issue preferred stock without a vote. The CEO speaks of empowering investors, an irony given his decisions. And ultimately he is missing the point – AMC’s business is too far gone, and will likely need restructuring soon.

Rejigged Renault-Nissan alliance looks headless

30 Jan 2023

The French and Japanese automakers clinched a deal to save their 24-year partnership. Renault will only vote 15% of its stake in Nissan, which now has a similar say in its partner. It avoids a messy divorce, but the lack of a clear leader may make decision-making trickier.

Capital Calls: TikTok’s Beltway visit

30 Jan 2023

Concise views on global finance: The social media app’s CEO Shou Zi Chew is going in front of a U.S. Congressional committee. But it’s leaders outside of Washington that Chew needs to convince.

Snam rethink reflects Europe’s new energy reality

19 Jan 2023

The $18 bln network operator is hiking spending to boost gas flows into Italy and the EU. Stable revenues from such investments can help new CEO Stefano Venier lift EBITDA. But a lighter push into hydrogen and green projects suggests a slower European shift from fossil fuels.

The complexities of EY’s big breakup bet

6 Dec 2022

The Big Four firm is pushing a plan to separate its auditing unit from its consulting business. In this Exchange podcast Andy Baldwin, global managing partner, discusses the challenges of convincing partners in over 70 countries to back the split – and what happens if it fails.

Vodafone CEO exit limits room for quick turnaround

5 Dec 2022

Nick Read is leaving the 25 billion pound telecom group after just four years. Finding a permanent successor may take time, and the board’s focus meanwhile is on completing two deals and improving the group’s weak performance. Bold moves like a breakup may take a back seat.

Credit Suisse banks needn’t break too big a sweat

1 Dec 2022

The lender’s battered shares are now trading just 7% above the price of its $2.4 bln rights issue. A further slump could leave Deutsche, Morgan Stanley and 18 other underwriters with unwanted stock. But they have a margin of safety, and Credit Suisse may have backup options.

Oatly’s best turnaround recipe is dollops of cash

25 Nov 2022

Shares in the $950 mln faux-milk maker are down 80% this year, and revenue growth is slowing. CEO Toni Petersson will struggle to stop burning cash, and has ruled out selling the company. That means a looming capital hike may have to be much bigger than he currently thinks.

Credit Suisse rot infects wealth-management core

23 Nov 2022

The prized division lost 10% of its assets in six weeks, though the outflows have slowed. That undermines CEO Ulrich Körner’s narrative that the group’s problems are all in investment banking. Clients don’t make that distinction, and it’s easier to lose money than win it back.

Debt woes will restrain Enel’s global ambitions

22 Nov 2022

CEO Francesco Starace vowed to cut the 52 bln euro utility’s net debt by 21 bln euros, amid spiralling gas costs. Focusing on fewer regions looks sensible and may shield investments and dividends. But it will hinder Enel’s efforts to stay one of the top energy transition winners.

How Credit Suisse’s turnaround could work

10 Nov 2022

CEO Ulrich Körner is raising $4 bln of fresh equity and shrinking the Zurich-based group’s trading business to put it on a steadier footing. In this Viewsroom podcast, Breakingviews columnists debate the merits of the plan and what’s at stake if it fails.

Renault’s Nissan silence undermines grand revamp

8 Nov 2022

The 9 bln euro carmaker will spin off its electric vehicle unit and partner with China’s Geely on combustion engines. But, while unveiling his strategy in Paris, Luca de Meo remained mum on his Japanese partner. Governance uncertainty makes the complex plans even trickier.

Michael Klein’s fourth act may be his toughest

28 Oct 2022

The former Citigroup rainmaker who went solo and then launched $5 bln of SPACs is now set to run Credit Suisse’s advisory unit. It’s odd for a director to parachute into the C-suite, but the bank had no better pick. The bigger issue is CS First Boston’s clunky ties to its parent.

Credit Suisse legal tab is wildcard for investors

17 Oct 2022

The bank settled an old mortgage case without having to set more money aside. But the bill for future litigation, up to $1.6 bln on its own estimates, will erode earnings. The risk for investors in a looming rights issue is that further nasties bog down the bank’s restructuring.

Credit Suisse can stop rot with $5 bln cash call

5 Oct 2022

Heavy investment-bank losses and higher funding costs risk damaging the Swiss group’s core wealth unit. Chair Axel Lehmann can draw a line by ditching debt trading and slashing costs. To shrink he needs more capital. Asking investors for equity is cleaner than tricky asset sales.

Credit Suisse selloff throws wrench into revamp

3 Oct 2022

The bank’s shares fell 8% on Monday and the cost of insuring its debt soared. Chair Axel Lehmann may struggle to sell assets amid the turmoil, undermining a strategic overhaul. A sustained rout could even force him to raise capital fast – at a painful valuation for shareholders.

SocGen’s new insider CEO requires outsider mindset

3 Oct 2022

The French lender trades at a third of tangible book value – lower than almost all its rivals. Next boss Slawomir Krupa previously ran investment banking and eastern Europe, both of which arguably drag down its shares. Breaking with the past may require shrinking his old charges.

Capital Calls: SPACs’ long shadows

12 Sep 2022

Concise views on global finance: While electric-vehicle startup Nikola is moving beyond its founder, both it and its SPAC-partner peers are mired in supply chain challenges, slipping deadlines and tumbling share price performance.

Capital Calls: Tech bros give Allbirds the boot

9 Aug 2022

Concise views on global finance: The maker of popular nondescript sneakers with a purpose is getting tripped up on demand. Its stock price pounding may make it vulnerable to a takeover.

GSK spinoff boost may be as good as it gets

18 Jul 2022

The drugmaker’s Haleon consumer unit started trading at 40 bln pounds including debt – below the 50 bln pound offer it rejected from Unilever. The Sensodyne maker has hefty borrowings and two big investors eager to sell. But its valuation mostly prices in a healthier future.