Stellantis finds limits of cost-cutting 3 Mar 2021 The 43 bln euro Franco-Italian carmaker’s shares rose after its maiden results following January’s merger. Savings bolster CEO Carlos Tavares’ ambitious profitability goal. To raise the group’s lowly valuation, he needs to expand in Asia and have a bolder electric vehicle plan.
Capital Calls: Petrobras 19 Feb 2021 Concise views on global finance in the Covid-19 era: Brazil's president becomes Petrobras' activist.
Capital Calls: Walmart, Buffett/Chevron 18 Feb 2021 Concise views on global finance in the Covid-19 era: Walmart gets an unfair ding from investors over its latest earnings report; and the Sage of Omaha takes another bet on the profit still to be made from fossil fuels.
Engie’s timid breakup needs green boost 11 Feb 2021 The $39 bln French utility’s shares have lagged peers for years. New CEO Catherine MacGregor is simplifying the rambling group by selling part of its services unit. Spinning off the renewables division could give the stock a roughly 50% bump, and enable more climate-friendly M&A.
Li Ka-shing buybacks would rebuild value 6 Jan 2021 Cash is rolling in from $28 bln CK Hutchison’s restructuring of European and Canadian assets. The Hong Kong billionaire’s ports-to-pharmacies group plans to repurchase stock. With deal-making curtailed by geopolitics, shareholders will appreciate the gesture.
LG missteps into chaebol-challenge spotlight 16 Dec 2020 A pushy investor is unhappy with a spinoff plan by the South Korean empire’s $12 bln holding company. The carve-up’s financial benefits are hard to identify. That brings unwanted attention to a pioneer in corporate restructuring just as the country angles for stricter measures.
EDF shares’ power surge need not be a one-off 26 Nov 2020 The $44 bln state-owned utility has outperformed rivals in the last six months. A deal to secure higher nuclear prices would repair EDF’s main arm and enable CEO Jean-Bernard Levy to mull a renewable energy spinoff. That could boost the company’s value by over a half.
Singapore’s bid for insolvency tourism is at risk 8 Oct 2020 The city-state picked elements of both U.S. and UK bankruptcy law to boost its attractiveness for hosting corporate workouts. But the glacial resolution of water treatment giant Hyflux could discourage the creditors the city needs to support its campaign to become a genuine hub.
Daimler drives into faster lane with luxury refit 6 Oct 2020 The German automaker plans to cut costs by 20% at its Mercedes brand by 2025 and double sales of Maybach luxury cars. Hitting the goals could grow operating profit by nearly two-thirds. Even so, boss Ola Kaellenius may at best catch up with, rather than overtake, rival BMW.
Corona Capital: NYC 30 Sep 2020 Concise views on the pandemic’s corporate and financial fallout: New York City’s economic reboot comes up against a new outbreak.
Unibail’s self-bailout highlights property dilemma 17 Sep 2020 The shopping mall owner plans to raise $4 bln from investors and flog buildings worth nearly $5 bln. Bolstering its balance sheet protects its credit rating even if real estate values fall further. But the rescue depends on buyers and shareholders taking a less gloomy view.
Natixis split could create a European BlackRock 17 Sep 2020 The $8 bln French lender has suffered trading losses and blowouts at its asset management arm. New CEO Nicolas Namias needs to fix these and sever the investment bank. If he can, the funds business could be worth $11 bln and create a tasty potential partner for Amundi or UBS.
HSBC is firing on just one shaky cylinder 3 Aug 2020 The $90 bln lender’s investment bank is the only business that’s really growing, as the group racks up further bad-debt charges. CEO Noel Quinn is cutting costs fast. But with low interest rates crimping revenue, he might need to take a sharper knife to restructuring plans.
Credit Suisse takes right leaf out of rival’s book 30 Jul 2020 CEO Thomas Gottstein will cut costs and deploy more capital in wealth management. A slimmer investment bank would make the lender look more like UBS, which has a higher valuation. To close that gap faster, the new boss could hand savings to investors instead of reinvesting them.
Fast food franchise model has burnt edges 1 Jul 2020 NPC International, the U.S.’s largest Pizza Hut franchisee, filed for bankruptcy. An LBO flip, heated competition, and higher labor costs left it larded with debt. Parent company Yum appears resilient. But its restructuring portends sizzling problems in the franchise model.
Argentina drama comes down to politics and Pac-Man 22 Jun 2020 Talks between the serial defaulter and its largest creditor group have stalled. The remaining gap is not huge. But the government seems intent on scoring a political win and may deploy an unusual strategy to do it. Rising frustrations may make an agreement hard to reach.
Hertz shares may yet be roadworthy 18 Jun 2020 The bankrupt car-rental firm halted plans to sell stock after the SEC raised concerns. Equity is usually wiped out in Chapter 11. But if a re-emergent Hertz could rev its EBITDA up to, say, 60% of pre-pandemic levels, shareholders could stay along for the ride.
Unilever’s reverse reunification is win for FTSE 11 Jun 2020 Two years after UK shareholders rejected plans to create a single parent company in Rotterdam, the $143 bln Anglo-Dutch giant is unifying around a London listing. Investors in the Netherlands will struggle to throw up the same obstacles. The payoff is more M&A flexibility.
Argentina gets too cheeky with its creditors 8 Jun 2020 The serial defaulter wants to put its restructuring to a creditor vote, but leave room to decide later which votes count and which don’t. That would require a tweak to a common clause designed to make bond negotiations simpler. Emerging-market borrowers would be worse off for it.
Corona Capital: Saving/not spending, Pandemic Pig 29 May 2020 Concise views on the pandemic’s corporate and financial fallout: what to make of falling spending and the growing taste for meat alternatives.