Ireland

UK plastics challenge could crumple

31 Jan 2019

Berry Global may trump former owner Apollo’s 3.3 billion pound offer for British packaging firm RPC. But a bid would stretch the U.S. group’s balance sheet while finding cost savings won’t be easy. RPC investors hoping for a bidding war may be disappointed.

Ryanair will weather fare squeeze

18 Jan 2019

The low-cost carrier expects to make less post-tax profit this financial year than previously anticipated as CEO Michael O’Leary cuts fares to attract customers. That’s tough as he is having to pay staff more. But passenger numbers are growing fast enough for his bet to pay off.

Bankers should see Irish pay cap as an opportunity

29 Oct 2018

Ireland’s 500,000 euro salary limit for Allied Irish Bank’s CEO is why the incumbent just quit. But that still buys a lot of Dublin property, and need not deter global talent. Ambitious high-flyers should see the chance to cut their teeth on AIB as the path to a bigger CEO gig.

Ryanair wings recovery on consolidation prayer

22 Oct 2018

Strikes, lower fares and higher fuel costs lopped 7 pct off the budget airline's earnings in its busiest season. Ryanair's high margins and oil hedges are a buffer. But it's relying on less well-protected rivals stalling for its own performance to take off.

Losing reliability is biggest threat to Ryanair

1 Oct 2018

Europe’s largest budget airline cut its full-year profit forecast by 12 pct due to strikes and higher fuel costs. Less profitable rivals are facing similar headwinds. But Ryanair customers are unsure it will fly at critical times like Christmas. That’s a harder issue to fix.

Ryanair budget model is being eroded

23 Jul 2018

The carrier’s post-tax profit fell by a fifth due to strikes and a heatwave that encouraged people to holiday at home. But these one-off problems pose less of a challenge to CEO Michael O’Leary’s low-cost business than rising staff costs and the risk of a chaotic Brexit.

Bank of Ireland reset channels Celtic Tiger ghost

13 Jun 2018

The Irish lender plans to increase its loan book by a fifth and beat a 10 percent return on equity by 2021. A booming domestic economy helps, but the challenge will be avoiding past mistakes of chasing growth at the expense of asset quality. Small wonder investors are sceptical.

Smurfit Kappa loses a suitor, may gain an activist

6 Jun 2018

The Irish paper group irritated shareholders by stonewalling a 9 billion euro offer from International Paper. And it trades at a discount to rivals. Hitting ambitious targets would help close the gap, but an impatient investor could push for a breakup.

Smurfit Kappa’s aloofness looks justified, for now

24 May 2018

The Irish packager spent 460 mln euros on a Dutch mill after snubbing a bid from International Paper. That may bolster the case for staying solo, even if its obduracy is angering shareholders. But the U.S. group can afford to pay more, and make Smurfit’s cold shoulder untenable.

Barclays trolls activist with Irish mortgage foray

18 May 2018

The UK bank has bought a 4.3 bln pound book of Irish mortgages for 4 bln pounds. With fees from securitising the loans and investors lined up, the deal could make sense. But it sits awkwardly alongside new investor Edward Bramson’s strategy to prune the investment bank.

EasyJet’s winning streak relies on rivals’ pain

15 May 2018

The UK airline reported its best ever first-half revenue and turned a pre-tax loss into a small profit after stripping out Berlin expansion costs. Problems that plagued Ryanair and Air France flattered the results. The 6.7 bln pound carrier could use a more reliable propellant.

Once-bitten merger arbitrageurs are twice Shire

27 Apr 2018

The $62 bln Takeda bid should in theory be an attractive hedge-fund plaything. A yawning gap between the offer value and the target's share price suggests otherwise. Multiple currencies and time zones act as deterrents. So too do the scars from Shire's deal with AbbVie.

Bookie investors misjudge odds in political casino

24 Apr 2018

William Hill, Paddy Power Betfair and GVC collectively lost 1 bln stg in value on reports Britain may cap betting-machine stakes and hike levies. That’s worse than feared, but not unimaginable given low UK gambling taxes. Smarter investors would have seen the writing on the wall.

Review: America’s founding was all about the money

13 Apr 2018

“New World, Inc.” explores the role of British merchant adventurers in laying the groundwork for the colonial settlements in Virginia and Plymouth. The book is a prequel of sorts to the Pilgrim creation myth that suggests Mammon, not religious freedom, drove America's creation.

Sage has a big software glitch to fix

13 Apr 2018

Shares in the UK tech group lost a fifth of their value after 2018 sales guidance was cut by an eighth. A U.S. acquisition is growing well. But fewer customers are signing up for the most lucrative contracts. Investors are right to worry the company is still too optimistic.

Smurfit Kappa is boxed in by sweetened bid

26 Mar 2018

The Irish packaging group rejected International Paper’s improved 8.9 bln euro approach. A heftier cash component is largely offset by the U.S. bidder’s falling share price. That makes the offer easier to snub but adds to pressure on Smurfit to cut costs and roll out automation.

Smurfit Kappa can get better mix of paper and pulp

7 Mar 2018

The Irish packaging group rejected International Paper’s approach despite a 27 pct premium. The U.S. suitor will need to offer more cash to tempt investors, but is restrained by high debt. With targets scarce at home, though, the lure of a European foothold may be worth the risk.

Smurfit Kappa takeover is difficult to repackage

6 Mar 2018

The Irish company rejected an unspecified cash-and-stock approach from U.S. rival International Paper. Similar deals suggest the buyer may have to pay up to 40 euros per share to get a hearing. But a cash deal would stretch leverage, while Smurfit investors are wary of U.S. stock.

Spain’s ECB victory is really a win for Germany

19 Feb 2018

The only person left in the race to become European Central Bank vice president is Spanish Finance Minister Luis de Guindos. It’s thus likely that the top job will go to a northern European in 2019. That will please Germans keen for an end to unorthodox monetary policies.

Ryanair buyback can only cushion so much turbulence

5 Feb 2018

The no-frills airline boosted earnings in the three months to December but faces a squeeze from pilot salary demands and still-low fares. A 750 mln euro share buyback will smooth the bumps for investors. But it cannot offset the transition to a lower-growth, higher-cost future.