UniCredit gets little reward for virus caution 6 May 2020 Covid-19 provisions and restructuring costs risk erasing the $16 bln Italian bank’s profit this year. CEO Jean Pierre Mustier is being more prudent than his peers, but that is not reflected in a lowly stock price. At least investors stand to gain more when the recovery comes.
Restructuring gurus face embarrassment of riches 1 May 2020 While fees from advising on M&A are drying up, helping companies navigate cash crunches and bankruptcy will be a big pandemic money-spinner, probably larger than past crises. Experts like Lazard don’t break out how much they make from such activities. That’s probably wise.
Treasury Wine’s posh-plonk split calls for a toast 9 Apr 2020 The $5 bln Australian winemaker could spin off its prized Penfolds business. That should deliver a higher valuation for the upmarket label and separate it from a ragbag of other brands that need restructuring. A coronavirus-induced glut of luxury grapes will eventually help, too.
Rolls-Royce secures extra viral flying time 6 Apr 2020 The aero engine maker axed its 2019 dividend and borrowed an extra 4 bln pounds. That buys it time to cope with grounded planes which are costing it 50 mln pounds a week. Its key market, long-haul flights, may be the last to recover. But Rolls should have enough cash in the tank.
Frère hands minorities two carrots and one stick 12 Mar 2020 GBL, the holding company of Belgium’s Frère and Canada’s Desmarais families, wants minorities to swap shares in its parent for shares in itself. The catch is the families get double voting rights. The appeal is the offer looks reasonable and the new structure could create value.
GAM does just enough to become a takeover target 20 Feb 2020 The Swiss asset manager saw profits fall 92% as a compliance scandal caused clients to pull funds. New CEO Peter Sanderson is pledging to cut costs and boost margins, but his targets look optimistic. Still, if Sanderson can steady the ship, GAM could look appealing to a buyer.
HNA journey lurches to fitting return home 20 Feb 2020 The Chinese conglomerate was already cash-strapped before the coronavirus hammered travel. Selling assets has been a struggle, leaving $80 bln of debt piled up. A government bailout in the making should imprint a strong reminder about the risks of costly overseas adventures.
RBS’s new strategy has sadly familiar ring 14 Feb 2020 CEO Alison Rose will rename the $34 bln lender NatWest, shrink its investment bank, hike returns and focus on social purpose. Good idea, but RBS has been trying something similar for years. There’s little to trigger a share-price leap that would help the state make a noble exit.
Atlantia charts tentative path to road truce 24 Jan 2020 The $19 bln infrastructure group’s new boss wants outsiders to invest into its units. These include embattled motorway operator ASPI, which risks losing a rich road concession after a bridge collapse. Opening ASPI’s capital to state investors offers a way out of the crisis.
UniCredit pays up for tricky Turkish escape 2 Dec 2019 The 28 bln euro Italian bank trimmed its holding in Turkish lender Yapi Kredi. Break fees and a steep discount suggest local partner Koc Group got a good deal. Yet CEO Jean Pierre Mustier frees up capital, and paves the way for a proper exit, if markets and regulators play along.
Sinking Thyssenkrupp needs more than a quick lift 21 Nov 2019 The German group’s shares fell after it cut its dividend. Selling its elevator unit will raise cash but leave a loss-making rump. With restructuring, the steel-to-ships maker could be worth much more than the current 7.5 bln euros, but boss Martina Merz faces an arduous climb.
Aviva’s drift to mediocrity may tempt an activist 20 Nov 2019 The UK insurer pledged to simplify its business. Yet new CEO Maurice Tulloch’s strategy review disappointed hopes for asset sales, and mostly reaffirmed older aims. The $21 bln group’s sprawling structure, and discount to peers make it a juicy target for an uppity investor.
Russian tech investors see benefits of state grip 19 Nov 2019 Internet group Yandex’s shares jumped after it tweaked its governance to avoid a clampdown on foreign ownership. The new setup hands power to a fuzzy Russian entity, and could enable government meddling. But shareholders have less to worry about than peers in China, or America.
Viewsroom: General Motors strike runs on hot air 10 Oct 2019 Workers downed tools over three weeks ago, despite last-minute concessions by the U.S. carmaker. Job-security fears are a sticking point. So is the union’s need to prove its worth after a kickbacks scandal. Plus: U.S. basketball plays smart defense on China’s Hong Kong backlash.
Commerzbank’s new plan is more sputter than bang 23 Sep 2019 CEO Martin Zielke plans a revamp whose 1.6 billion euro price tag will be funded by selling a Polish bank stake. Investors may welcome cost cuts. But a measly return on tangible equity target of over 4% cements his company’s status as one of Europe’s least profitable big lenders.
Deutsche equities exit breathes life into rivals 8 Jul 2019 CEO Christian Sewing is hacking back the 15 bln euro bank’s unit that sells and trades shares in a bid to boost profitability. That makes sense given the sector’s stagnant revenue and low margins. Rivals should follow, but having one less player will reduce the pressure to act.
Deutsche Bank retreat depends on uber optimism 7 Jul 2019 CEO Christian Sewing will exit equities trading, shed assets worth 288 bln euros and slash jobs. The belated rethink of Deutsche’s global investment banking ambitions makes sense. But the plan requires other divisions to pick up the revenue slack, and no more unforeseen losses.
Chinese booze behemoth distills a sobering reality 24 May 2019 Kweichow Moutai’s state-owned parent may be planning to sell liquor directly through a separate unit. It could help usurp some $6 bln of value from shareholders, Breakingviews estimates. For new and growing MSCI index investors, it’s a stark reminder of China’s governance risks.
Blackstone’s conversion is less than it seems 18 Apr 2019 Turning into a corporation should broaden the buyout shop’s investor base and win inclusion in indexes. Yet a similar move hasn’t done much for rival KKR, and power stays in hands of boss Steve Schwarzman and insiders. They, not passive investors, will decide Blackstone’s value.
Larry Culp struggles to get new GE off the ground 14 Mar 2019 The $90 bln company’s CEO is warning investors to brace for a dismal first quarter and cash flow turning negative this year. His plan to sell more assets and overhaul the troubled power unit could eventually help, but it’s slow going. And a number of risks are out of his control.