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.
Renault is awkward guinea pig for Tesla-like trick 13 Apr 2022 The group may list its electric-vehicle business. Automaker CEOs look enviously at the rich valuation of Elon Musk’s group. Yet Renault’s battery unit is modest, and poor profitability and messy governance would mean its rump combustion operation would look even less desirable.
Naturgy split may be less than sum of its parts 11 Feb 2022 The 25 bln euro Spanish power group is putting renewable energy and gas under one roof and fencing off its regulated network business. It could create value if investors see gas as less worthy of a discount than they have in the past. But that’s a pretty big if.
Eni’s quirky rejig may turn rivals green with envy 24 Jan 2022 Italy’s $54 bln oil major may list stakes in its green energy and biofuels arms, as well as a Norwegian subsidiary. That’s different from rivals which are financing green investments by selling fossil fuels. Yet if Eni’s spinoffs get cheaper financing, others may follow suit.
Toshiba clears path for big 2022 Japanese buyouts 22 Dec 2021 The $18 bln conglomerate plans to split, but a takeover bid betrayed private equity’s voracious appetite in the country. A few dozen chunky companies suit the LBO financial model, per a Breakingviews analysis. Closer inspection suggests a tempting target among them is Ricoh.
Toyota will send its hybrids to the breaker’s yard 14 Dec 2021 The $250 bln carmaker is dramatically increasing its electric ambitions after lagging for years. It could help defend its earnings multiple lead over Ford and GM. But Toyota still lobbies against tougher emissions standards. Powering down its hybrids will add carbon clarity.
Capital Calls: UBS, Pfizer, Peloton 13 Dec 2021 Concise views on global finance: An appeals court has reduced a penalty for the Swiss bank by 60% for tax wrongdoings; the U.S. pharma group is buying a drugmaker to bolster its post-pandemic growth options; real risks are a bigger threat to the bike-app company than fake ones.