Roads & Transportation

Atlantia’s M&A treasure chest has use-by date

30 June 2021

The infrastructure group is due a $10 bln cash windfall from the forced sale of its Italian motorway unit. Airports or toll roads are in high demand, while mobile payments bets are risky. Without a clear target, CEO Carlo Bertazzo should return more cash to investors or cut debt.

FirstGroup rebels may rue waiting for the next bus

25 May 2021

Two shareholders of the UK transport operator may vote against a $4.6 bln sale of its U.S. businesses to EQT. While no knockout, the price looks fair given the lack of other certain offers. A delay could destabilise the company when it needs to focus on opportunities at home.

KKR makes pricey punt on infrastructure frenzy

19 May 2021

The U.S. group is buying UK-based rail and roads investor John Laing for 2 bln pounds. A 35% premium to net asset value looks steep. But KKR can triple its target’s war chest to exploit a post-Covid spending boom, and holding on to the asset allows for more modest returns.

Capital Calls: Sabers down for Project JEDI

10 May 2021

Concise views on global finance: The Pentagon may end the $10 billion cloud project to consolidate U.S. military data after exhausting worse options.

TuSimple $8 bln IPO destination looks out of range

8 April 2021

It values the self-driving truck firm run by financiers and a gamer at 4,260 times 2020 sales. Volkswagen’s Traton, UPS and others are partners. But autonomous vehicles are years off, TuSimple is hauling a load of governance issues and has an investor in a U.S. regulatory probe.

Capital Calls: Trucking IPO

7 April 2021

Concise views on global finance in the Covid-19 era: Startup TuSimple will be listing shares via a traditional initial public offering.

Didi’s IPO could be as bumpy as Dida’s

7 April 2021

The Chinese ride-hailing firm is navigating toward public markets and a $100 bln valuation. Its smaller, similarly named rival's listing effort has stalled in Hong Kong after hitting regulatory, legal, and operational potholes. Didi will have to buckle up for a comparable ride.

Benettons avoid crash at end of Italian road feud

1 April 2021

Atlantia, part-owned by the clothing-to-infrastructure clan, looks set to sell its motorway unit for 9 bln euros to a group led by state investor CDP. The sale should end a row with Rome and cut debt. For the new owners, rising investment means the returns will hardly be racy.

Biden’s $2 trln road trip can’t start soon enough

31 March 2021

Republicans think the president’s infrastructure plan is too big; progressive Democrats think it’s too small. The cost is deceptive because projects still have to surmount local politics and red tape. The main thing is to agree something so that investment and jobs can follow.

Corona Capital: Merck sells Moderna stake

2 December 2020

Concise views on the pandemic’s corporate and financial fallout: The U.S. drugmaker is banking its winnings on an investment in Covid-19 vaccine producer Moderna that dates back to 2015.

Corona Capital: Vaccine storage

16 November 2020

Concise views on the pandemic’s corporate and financial fallout: Warehouse centers get another boost with Moderna’s vaccine prospects.

Corona Capital: Salvatore Ferragamo

10 November 2020

Concise views on the pandemic’s corporate and financial fallout: Faded heels-and-loafers brand Salvatore Ferragamo could benefit from a coronavirus vaccine-induced return to airport shopping, but the Florentine fashion house would still need a makeover.

Corona Capital: Covid-19 tests, Bed Bath & Beyond

1 October 2020

Concise views on the pandemic’s corporate and financial fallout: Diagnostic company Quidel predicts a quarterly earnings bonanza; meanwhile the pandemic turns a struggling retailer into a winner, at least temporarily.

Corona Capital: U.S. sports’ virus-bubble success

29 September 2020

Concise views on the pandemic’s corporate and financial fallout: Professional hockey and basketball associations scored victories keeping infection rates low or at zero in spectator-free games. And less traveling and more sleep helped players up their game. Wall Street take note.

Breakup could remove Benettons’ Italian roadblock

24 September 2020

Atlantia, the clan’s infrastructure group, is at loggerheads with Rome over the sale of its crisis-hit motorway unit. Spinning off the division could end the dispute by establishing a fair market price. It’s a risky manoeuvre, but the threat may bring the government to the table.

Big price for trains just about stays on track

15 September 2020

Blackstone’s infrastructure group may be offering what looks like top dollar – $20 billion – for Kansas City Southern, a 133-year-old U.S. freight railroad. But with interest rates so low, big prices for relatively predictable assets with stable returns may become the new normal.

Corona Capital: Movies, Magazines

7 September 2020

Concise views on the pandemic’s corporate and financial fallout: the U.S. opening weekend of Christopher Nolan’s time travel epic “Tenet” suggests punters aren’t hurrying back to cinemas; Future, publisher of “Metal Hammer” and “Horse & Hound” rocks its way through the crisis.

UK LBO jalopy offers buyout barons last wild ride

14 August 2020

Roadside repair group AA is drawing interest from private equity again. It’s still crippled by a 2.7 billion pound debt load from past takeovers. With a cash injection and thorough service, a new driver could make a decent return, but it would still be a risky journey.

Corona Capital: Telemedicine, Outdated movie rules

10 August 2020

Concise views on the pandemic’s corporate and financial fallout: Men’s wellness outfit Hims matches the online medical consultation trend with a financial one, namely blank-check companies; and Washington finally scraps a “Gone with the Wind”-era regulation.

VW’s China acceleration leaves Renault in the dust

30 July 2020

An uptick in Middle Kingdom car sales helped Volkswagen boss Herbert Diess restate a pledge to make an annual profit, following a half-year loss. By contrast, the French carmaker is losing money and market share. New Renault CEO Luca de Meo’s cost-cutting plan needs more fuel.