Sweden

Pfizer tax arbitrage will hasten more deals

29 Apr 2014

The biggest charm of the U.S. drug giant’s $99 bln offer for the UK’s AstraZeneca lies in switching to a lower-tax domicile. The latest and largest such deal raises the odds Congress will tighten rules. Until then, Pfizer’s validation of the tactic will encourage copycats.

Scania holdouts risk overplaying their hand

24 Apr 2014

Some minority investors oppose Volkswagen’s $9 bln bid for the rest of the Swedish truckmaker. But saying “nej” is risky. VW has effectively tied its hands, making a sweetener unlikely. The premium is already generous. If the buyout fails, Scania’s shares could fall steeply.

Volkswagen has no reason to improve Scania bid

18 Mar 2014

Minority owners of the Swedish truckmaker want more than the 53 pct premium offered by Volkswagen. They’re right to try, but limited medium-term synergies don’t justify topping up a generous bid. Sadly the German carmaker can still fall hostage to its executives’ oversized egos.

VW’s $9 bln Scania bid puts own investors second

24 Feb 2014

The German automotive group is offering a 53 pct premium to the Swedish truck maker’s minority owners. Cost savings cover the gap on paper but will take up to 15 years to materialise. And VW investors must stump up $2.7 bln while seeing little short-term benefit.

Atlas Copco expands smartly into a vacuum

19 Aug 2013

The Swedish group is buying Edwards, a UK vacuum-technology specialist. The $1.6 bln deal looks both logical and inexpensive. Luckily for Atlas, the buyout firms behind Edwards were keen to exit an old investment, after a brief and underwhelming experiment with a U.S. listing.

Tele2’s Russia retreat may spur mobile competition

3 Apr 2013

The Swedish telco was hobbled in Russia by a lack of spectrum for data. Now VTB bank is buying Tele2 out for a decent $3.5 bln. Attempts to gatecrash the Kremlin-blessed deal look forlorn. And a stronger Moscow-backed player could make life harder for bigger mobile operators.

Goldman gets reward for taking year-end block risk

13 Dec 2012

Renault’s sale of its 6.5 pct stake in Volvo is a boon for the French carmaker. But it was hazardous for Goldman, which stood to wear as much as 1.5 bln euros in selling the block. Any loss would hurt just as the books are about to close for 2012. The upside? League-table credit.

Spotify’s $4 billion pitch sounds high

24 Apr 2012

The music-streaming firm is seeking new backers at a hefty $3.5 to $4 bln valuation. Spotify boasts a neat idea, rapid growth and Facebook’s friendship. But big licensing fees, which rise in tandem with users, mean it lacks the economics of the best dot-com hits.

AstraZeneca needs a more active chairman

10 Apr 2012

Investors are frustrated with the Anglo-Swedish pharma group’s shrinking collection of blockbuster drugs. It’s time for a major strategic review, led by an active leader willing to tackle taboo topics. There’s an opportunity - a new chair is set to be approved later this month.

With sound packaging, bold M&A can still be done

17 Jan 2012

Shareholders killed Britain’s last ambitious takeover requiring a rights issue. Now the market is applauding a $2 bln move by DS Smith, the packaging group, on a unit of Sweden’s SCA. Showing restraint on leverage and on deal price helps, as does teeing up key investors.