Switzerland

BofA-UBS job swap offers symbolic snapshot

25 Apr 2012

The U.S. group has poached old-school investment banker Alex Wilmot-Sitwell from UBS, just after bold dealmaker Andrea Orcel went the other way. As the Swiss lender shakes up its culture, BofA is also reshaping Merrill. The moves are emblematic of firms adapting to a new reality.

Credit Suisse still shrinking its way to stability

25 Apr 2012

The Swiss bank returned to the black in the first quarter, even though revenue was below the same period of 2011. Cost-cutting helped, and balance sheet shrinkage lifted returns. But Credit Suisse has more to do to meet its capital targets. Choppy markets won’t offer much help.

Pfizer baby food gives Nestle a $12 bln sugar rush

23 Apr 2012

The Swiss food giant is paying a hefty 4.9 times sales for the U.S. group’s infant nutrition arm. That’s partly down to an M&A tug-of-war with rival Danone. But it also reflects Nestle’s rock-solid balance sheet - and the scarcity of big emerging-market growth plays.

Roche runs out of room in $7 bln Illumina bid

18 Apr 2012

The Swiss drugmaker is walking away after failing to cajole the gene-sequencing firm into talks. Shareholders clearly weren’t pushing Illumina to the table, and a wobble in its shares now won’t change that. But Roche could return if the stock continues to languish.

Qatar plays merger-maker at Glencore-Xstrata

12 Apr 2012

The Gulf state has been a successful arbitrageur in the past. Its 5 pct stake in Xstrata is under water following the recent equity market sell-off. But Qatar could provide extra leverage to help the miner extract a sweeter offer from suitor Glencore.

Roche makes tactical gain with Illumina sweetener

29 Mar 2012

The Swiss drugmaker has upped its unsolicited offer for Illumina by $1 bln to $6.7 bln – a smidgen above the gene firm’s market value. That puts real pressure on the board to talk. The stage is set for Roche to add a last sweetener in return for a recommendation.

UBS rolls the dice with Andrea Orcel grab

22 Mar 2012

The Swiss group is preparing to install the Merrill Lynch rainmaker as co-head of investment banking. It’s a sign that crisis- and scandal-scarred UBS can still attract big names. But Orcel’s patchy management track record raises questions about how well he’ll fit in.

Glencore tiptoes onto the Canadian prairies

20 Mar 2012

The commodity trader has roped in two local partners for its $6.1 billion purchase of Viterra, the Canadian grain firm. That setup nearly halves its outlay and takes out some unwanted businesses. It also reduces the risk of a BHP-style political backlash.

Glencore faces fight to land $5.5 bln Viterra deal

12 Mar 2012

Buying Canada’s biggest grain handler would round out the commodity trader’s growing agricultural portfolio. The assets are attractive and the timing is right. But rival bidders, a lack of obvious synergies and Canada’s penchant for resource nationalism may present obstacles.

Glencore shouldn’t overplay its hand with Xstrata

5 Mar 2012

The commodity trader’s CEO, Ivan Glasenberg, has said the deal’s terms are fair and questioned why he should pay a higher premium for miner Xstrata. It’s easy to see why he is acting like he holds all the cards. But in reality, his poker face isn’t that convincing.

Why the league-table bonanza at Glencore-Xstrata?

14 Feb 2012

Seven banks is a pretty full roster for a long-awaited, friendly, all-share merger. Fortunately there are still some other banks out there that can write unconflicted research or advise interlopers. But if more advisers means a bigger bill for fees, investors won’t be chuffed.

Glencore-Xstrata gatecrashers in short supply

10 Feb 2012

A merger backlash could put Xstrata in play. Vale tried to buy it in 2008. And Xstrata’s copper business could tempt Rio or BHP to launch a breakup bid. But such moves look unlikely. Xstrata investors shouldn’t expect outside help in pushing Glencore to sweeten its offer.

UBS claws out fitting path for investment banks

9 Feb 2012

The Swiss bank is nixing some 2010 stock bonuses after a rogue trading-driven loss last year. The firm may end up paying some cash out again to keep bankers happy. But exercising the clawbacks sends the right message to highly paid staff - and trims UBS’s sky-high comp costs.

Credit Suisse’s pain is clearer than its gain

9 Feb 2012

The Swiss bank has posted its first quarterly loss since 2008. Weak markets were partly to blame, but cost cuts and balance-sheet shrinkage also hurt. The firm thinks it will ultimately get ahead of the pack by restructuring now. But payback still depends on business picking up.

Glenstrata deal needs rejig

7 Feb 2012

Some Xstrata investors say they will vote no to the mining merger with Glencore. But a deal may still be possible if both sides can agree a proper board and a sweeter premium for Xstrata. There’s a big incentive to talk: given the mess, neither can go back to the status quo.

Don’t bet against Glenstrata antitrust roadblock

7 Feb 2012

Many customers see Glencore and Xstrata as one, even before their all-share merger. But that won’t stop regulators everywhere poking into Glencore’s secretive business. Market share in copper and zinc isn’t the only concern: bigger miners exert pressure on governments too.

UBS rightly accelerates strategic shift

7 Feb 2012

Just weeks into 2012, the Swiss bank is warning of a tricky Q1. New CEO Sergio Ermotti is cutting assets and jobs in the investment bank faster than expected, to re-orient UBS toward private banking. UBS has special challenges, but this augers ill for the industry all the same.

Xstrata holders right to fret over Mick’s rewards

6 Feb 2012

CEO Mick Davis’s contract promises millions from any takeover, even if he doesn’t hold out for the best price. True, Davis’s existing shares help align his interests with outside shareholders’. But investors should still examine any Glencore deal closely.

Glenstrata board faces huge credibility challenge

3 Feb 2012

A look at the business mix of a merged miner-trader suggests Xstrata’s Mick Davis would be CEO with Glencore counterpart Ivan Glasenberg as deputy. Whatever the two decide, investors will take some convincing that the pair will still be snuggled up come Valentine’s Day 2013.

Glenstrata is sideshow to mining’s epic challenges

3 Feb 2012

A merger of already closely tied Glencore and Xstrata would slightly change the balance of large and mid-sized operators. But however much scale the Western miners amass, they can do little about the really big issues: the super-cycle, the shift to Asia and resource nationalism.