Portugal

Flying PIIGS nations stir rethink in Europe’s core

12 Aug 2024

Former crisis economies like Spain, Greece and Italy have outpaced France and Germany by up to 20% since the pandemic. Lower exposure to manufacturing, a tourism boom and Brussels funds all helped. The role reversal may push Berlin to tolerate looser fiscal and monetary policy.

Telecom tycoon ensnared by his hefty debt machine

18 Apr 2024

Patrick Drahi built the ocean-spanning Altice empire on the back of aggressive dealmaking and $60 bln of borrowing. The bill is coming due with interest rates elevated. In this Viewsroom podcast, Breakingviews columnists discuss what comes next as bondholders get restless.

Portugal’s crisis threatens growth resurgence

8 Nov 2023

Prime Minister António Costa’s resignation casts a shadow on some of Lisbon’s crucial new energy projects. The relatively vibrant economy was already heading for a slowdown. A swift end to the political upheaval would reassure foreign investors and Lisbon’s EU partners.

Altice’s beaten-up debt is only a bet for the bold

8 Aug 2023

Patrick Drahi’s telco empire faces a funding crunch, with $60 bln of debt coming due by 2030. He must pull off a tough turnaround in France and sell assets, a tricky task made even harder by a corruption probe. Even with current high yields, Altice debt is a risky punt on Drahi.

Lisbon tech schmooze takes baby steps to reality

4 Nov 2022

Amid 2022’s cratering valuations, venture capitalists attending the Portugal-based Web Summit are appropriately more cautious about new startups. Yet crypto crowds are still out in force. That’s despite the need for tech cash to focus more on solving problems like climate change.

Altice Portugal sale would fuel Drahi M&A machine

22 Oct 2021

CVC and Blackstone are eyeing a 7 bln euro deal for the telecom tycoon’s Iberian unit, Bloomberg reported. They could net a tidy return since it has already done the heavy lifting on fibre investment. A sale would give the Sotheby’s owner cash to fund a tilt at France’s Eutelsat.

Altice scores narrow win with Portugal fibre deal

13 Dec 2019

Billionaire Patrick Drahi’s telecom group sold half its local broadband network for 2.3 bln euros. Some of the payment is delayed but the price still gives Drahi reason to celebrate. Besides eating into his debt mountain, the cash helps him lay more fibre to stay ahead of rivals.

Lisbon tech confab is antidote to WeWork gloom

11 Nov 2019

Entrepreneurs and investors who joined the 70,000-strong Web Summit crowd were unfazed by plunging valuations of SoftBank-backed companies, including the office sublessor. Still, the reality check is making sustainable growth and positive cash flow the industry’s new watchwords.

EDP overhaul makes Chinese bid look extra stingy

12 Mar 2019

The Portuguese utility will sell assets to cut debt and invest in renewables. It looks like a balancing act between the demands of activist Elliott, and Portugal’s government. But the potential boost to EDP’s value bolsters the case for rejecting an offer from China Three Gorges.

Elliott kicks China’s EDP bid when it’s down

14 Feb 2019

The activist investor objected to China Three Gorges’ offer for the Portuguese utility. The deal was struggling, and Elliott’s plan, to invest in renewables, isn’t controversial. But the Chinese group’s large shareholding could still be a problem for Paul Singer’s fund.

Altice’s $2.9 bln towers sale locks in 5G premium

21 Jun 2018

Patrick Drahi’s telecoms group has secured a high price for the possible sale of stakes in its French and Portuguese mobile towers. It’s a vote of confidence from private investors like KKR in new superfast networks. But it only makes a modest dent in Altice’s $36 bln debt pile.

China’s Portuguese power bid may yet lure rivals

17 May 2018

It’s no surprise that EDP rejected a lowball 12 billion euro approach from China Three Gorges. The Chinese state’s effective 28 pct stake in the utility suggests a counterbid has little chance of success. But some European utilities may yet have grounds to get involved.

Chinese utility misfires with bid for Portugal’s EDP

14 May 2018

China Three Gorges is offering investors a tiny premium to take control of EDP. This may be a way to avoid paying the near-$11 bln that would be needed for full ownership. But the move could fail entirely without an increase. And being so stingy invites political blowback.

Portuguese power bid tests EU’s open door to China

11 May 2018

China Three Gorges is set to bid for the 77 pct of EDP it doesn’t own. The group has been an investor since 2011, but success would place the 11 bln euro utility under Chinese state control. That will add a spark to European Commission plans to better screen foreign investment.

Europe tests limits of net neutrality benefits

23 Apr 2018

Countries like Britain and the Netherlands are taking a strict approach to rules on treating internet traffic equally whereas the United States may roll them back. If opponents of net neutrality are right, Europeans will end up with less investment in networks and worse services.

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.

Drahi U-turn makes Altice’s problems easier to see

9 Jan 2018

Patrick Drahi is spinning off his cable group’s U.S. unit, raiding it for 900 million euros, and re-organising a struggling European business. The new structure will show whether he is doing enough to tackle slow growth, high debt, and a questionable content strategy.

Portugal beats Italy in bond market pecking order

15 Dec 2017

The country that needed a bailout in 2011 can borrow for less than its larger peer. Investors’ preference for Portuguese debt reflects its more vibrant economy, and messy Italian politics. Lisbon can keep outshining Rome, so long as lax bond markets don’t encourage bad habits.

Europe’s bad-loan struggle risks backfiring

1 Dec 2017

Italy is leading the resistance to a European Central Bank plan to shrink banks’ bad debts. A victory will be empty, though. Ignoring defaulted loans hurts new lending. Failing to clean up legacy balance-sheet risks could also kill off the euro zone’s bank deposit scheme.

EU bank plan exposes mutualisation mirage

11 Oct 2017

The euro zone is pushing a joint deposit insurance scheme to complete its banking union. But the revised backstop might only kick in if national banking systems pass an invasive health check. It’s a reminder of how far European countries are from underwriting each others’ debts.