Denmark

Goldman shows commerce and governments don’t mix

30 Jan 2014

Danish politicians are angry the U.S. bank is lead investor in the recapitalisation of state-run Dong Energy. It shows that banks can’t be too commercial with government business. And Goldman’s reputation for always being on the better side of deals can backfire.

Investors remain too sweet on Novo Nordisk

31 Oct 2013

Danish diabetes-treatment giant Novo Nordisk suffered a rare earnings miss, and dropped its double-digit growth target. Generic competition and a cancer scare both hurt. Investors promptly erased 6 percent of Novo’s value. But they are still being generous.

Danske’s new broom commences timely deep clean

31 Oct 2013

The Danish bank’s capital, leadership and even advertising have been questioned of late. A new CEO is correct to focus on more cost cuts and throttling back in Ireland. Investors won’t like the hacking back of return goals, but will like signs that Danske is getting a grip.

Hybrids trapped by fickle agencies and firm issuers

11 Jun 2013

Investors are smarting after Dong Energy said it would redeem a hybrid bond below its market price because S&P decided the security was no longer equity. The episode has cost Dong too - and it faces punishment when it sells its next hybrid. This immature market has growing pains.

Carlsberg will struggle to close gap with rivals

18 Feb 2013

The Danish brewer has scrapped margin targets and given a lean profit outlook. Carlsberg binged less on M&A than rivals, but now looks awkwardly reliant on western Europe and Russia. A costly integration plan could narrow, but not close, the shares’ discount to peers.

Even after the knock, Novo Nordisk’s rating is fat

11 Feb 2013

The Danish drugmaker lost about $14 bln in market value after U.S. regulators held off approving a new insulin treatment. As the world grows obese, the diabetes specialist should profit handsomely. But the shares look rich, even after the 13 pct markdown.

ISS deal clears path towards fresh listing

16 Aug 2012

Previous attempts to sell or float the Danish cleaning giant flopped. Now two blue-chip investors are taking 500 mln euros of equity in a private deal. ISS will use the proceeds to get rid of costly junk bonds. That means any future listing becomes a smaller, simpler task.

Denmark is another costly refuge

21 Jun 2012

In search of a safe haven? Denmark ticks the boxes. The economy is strong and the krone isn’t the euro, but shadows it. Tempted investors should think hard. The central bank is against them and two-year yields are negative. Investors only win if Germany exits the euro.

Danish bank rescues highlight EU’s bail-in dilemma

26 Apr 2012

The country has forced two small lenders into mergers. It’s a shift from previous rescues, when senior creditors took a haircut. That should calm bondholders’ nerves about Danish bank paper. But it underlines the difficulties of pushing through a new resolution framework.

UK investors still on guard against hubris in M&A

1 Nov 2011

Britain’s worst shareholder revolt since Pru-AIA has nixed G4S’s $8 bln move into cleaning. The security group’s management couldn’t sell a strategic shift funded by a jumbo share issue. Failure sullies the record of CEO Nick Buckles. But he can probably keep his post.

Market sends CEOs harsh message on M&A

17 Oct 2011

Investors have blown a raspberry at G4S’s $8 bln bid for ISS and related $3 bln rights issue. Europe’s first big corporate transaction since the summer was never going to be easy, and the cash-call is massive. If G4S stock doesn’t recover, opportunistic M&A will be cowed.

IPO shut-down allows strategic bidder to clean up

17 Oct 2011

Private equity is offloading Danish outsourcer ISS to London-listed rival G4S for $8.2 bln – the same value it sought in March’s aborted IPO. So far, so good. But with the IPO market now shut, G4S has got away with paying partly in stock, and has avoided paying a massive premium.

Pandora ordeal shows IPO charms can wear off fast

2 Aug 2011

The Danish jeweller’s debut avoided several sins investors link with private-equity IPOs. But 10 months later, Pandora has unleashed all manner of horrors on shareholders. Europe’s shaky new-issues market hardly needed reminding how risky it can be to back newly public outfits.