Netherlands

Thai tycoon rediscovers joy of debt in $6.6 bln bid

23 Apr 2013

Fresh from the leveraged purchase of a stake in insurer Ping An, Dhanin Chearavanont is borrowing $6 billion to buy cash-and-carry group Siam Makro. For Thailand’s richest man, a combination with his convenience stores makes sense – as long as Asia’s boom keeps the cash flowing.

Bart Becht’s $10 bln coffee run has dash of Buffett

12 Apr 2013

The former Reckitt chief is leading a buyout of D.E Master Blenders 1753, the Douwe Egberts coffee house. The hot drinks world should get a jolt. Like Warren Buffett’s recent mega-bid for Heinz, this deal mixes consumer goods, cheap debt and billionaire backers.

Malone swoop frees Barclays but traps Ziggo

28 Mar 2013

Liberty Global has a paper profit of over 40 mln euros after buying 13 pct of Dutch cable company Ziggo from Barclays. It’s typically shrewd of Liberty owner John Malone - Barclays was desperate following a botched share sale. But Ziggo shareholders should have mixed feelings.

Brotherhood faceoff with Sawiris is bad for Egypt

11 Mar 2013

The country’s Islamist rulers have escalated a tax probe on billionaire Nassef Sawiris as he seeks to shift his construction group’s primary listing to Amsterdam. A fight between Egypt and its top entrepreneurial family is the last thing the country needs now.

Carlos Slim takes least-worst option at KPN

20 Feb 2013

The Mexican mogul has belatedly agreed to help the Dutch telco raise 4 bln euros of capital. Slim’s near-28 pct stake is way out of the money. But the alternatives to raising the losing bet were even uglier: a quixotic full bid; heavy dilution; or leaving KPN over-levered.

Dutch bank expropriation ties CDS in knots

12 Feb 2013

The subordinated bondholders of SNS Bank who used credit derivatives as a hedge may be denied a payout after the lender’s nationalisation. It’s not the first time the crisis has shown CDS language to be lacking. Governments’ unpredictability doesn’t help.

KPN’s $5.4 bln cash call avoids breaking junk taboo

5 Feb 2013

The Dutch operator is the first European telco to ask shareholders for fresh funds in this cycle, with a colossal rights issue. A big spectrum bill, failed disposals, and tough competition left few options. Debt is cheap but losing investment-grade status remains a step too far.

Philips: a credible recovery story at a full price

29 Jan 2013

The Dutch electronics giant reported solid results and is selling its home entertainment unit. This represents the latest evidence of a successful overhaul. But after a sustained rally, the stock looks richly priced - despite the promise of a brighter future in lighting and healthcare.

Dutch headed for good old, 2008-style bank bailout

24 Jan 2013

SNS Reaal is running out of road to address big property loan losses. That gives the Dutch government a chance to try out its new bank intervention powers. These should help, but the Netherlands will struggle to achieve the holy grail of bailouts: one that wouldn’t punish taxpayers.

Europe brings the pain for UPS and TNT

14 Jan 2013

Competition watchdogs are barking again, after killing DB-NYSE last year. A likely EU veto has led the U.S. courier to drop a $7 bln bid for its Dutch peer. TNT’s stock is down 50 pct. If the group’s strategy since its demerger has been to get bought, it needs to think again.

KPN’s spectrum binge makes rights issue more likely

17 Dec 2012

The struggling telco will sacrifice dividends after splashing a far higher-than-expected 1.35 bln euros on Dutch mobile spectrum. Forgoing licences wasn’t an option. Carlos Slim’s recent stake-building really doesn’t look too clever. And a capital increase now seems a real risk.

Auctions are wrong way to allocate mobile spectrum

17 Dec 2012

Anxious operators just agreed to pay the Dutch government 3.8 bln euros for 4G spectrum. That amounts to an upfront tax on shareholders and customers, and a big bet for companies. It’s financially inefficient. A pay-as-you-go arrangement would be more sensible than a bidding war.

Shell shares are justifiably expensive

1 Nov 2012

Despite some hiccups in the latest quarter, there was nothing in the Anglo-Dutch oil giant’s results to weaken its investment story. Shell has no shortage of opportunities to invest, a jump in cashflow lies ahead. The shares are pricier - but safer - than rival BP’s.

ASML pays up for tighter control of new technology

17 Oct 2012

The Dutch semiconductor-equipment maker will pay $2.5 bln, mostly in stock, to buy out U.S. partner Cymer. A 61 pct premium looks steep, and valuation details are scant. But synergies should follow. And ASML smoothes the shift to a new generation of chip technology.

T-Mob-MetroPCS won’t end US telco quest for scale

3 Oct 2012

Scale brings better returns for mobile providers. But a combined T-Mobile-MetroPCS will still lack the wherewithal to compete against giants AT&T and Verizon. That means the new company as well as the likes of Leap Wireless have little choice but to dial up more deal-making.

Dutch politics returns to centre – and Europe

13 Sep 2012

After flirting with anti-euro and anti-austerity groups, voters overwhelmingly backed mainstream parties. Fears that a core euro zone state would pick a radical government have receded. But forging a coalition won’t be easy, and fringe voices stand ready to exploit any unease.

Heineken’s $6 bln deal should trigger aftershocks

3 Aug 2012

The Dutch brewer is paying a hefty 17 times EBITDA to take control of Asia Pacific Breweries from partner F&N. Heineken had little choice, as it couldn’t let APB slip through its fingers. This sets up F&N’s next act - the dismemberment of the rest of the conglomerate.

Shell struggles with market myopia

26 Jul 2012

It was never going to be a stellar quarter after the recent fall in oil prices. But Shell’s big Q2 miss is a blow, particularly after its dividend disappointed some investors in Q1. Few oil majors look better-positioned for the future, but expectations-management needs work.

Thai Bev dons beer goggles for taste of Tiger

19 Jul 2012

Thai Beverage has spooked Heineken by paying $3 bln for a piece of the Dutch brewer’s Singaporean partner. It is paying a hefty premium and racking up big debts for less than a fifth of the target. It needs more to make the finances stack up. That will be a tall order.

Douwe Egberts listing has to create its own buzz

4 Jun 2012

Sara Lee’s $5 bln-plus coffee spin-off is percolating towards the Amsterdam exchange. The maker of Douwe Egberts is uncomfortably big in sleepy bits of the coffee market. But the cast-off could thrive if its top team capitalises on lessons learned in beer and baby food.