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Bolloré nears rare draw in messy Italian campaign

29 Nov 2019

Vivendi is to sell 20% of Mediaset, part of a broad truce with the Berlusconi-controlled broadcaster. The deal ends a wasteful legal row with little financial damage for Vivendi’s top investor Vincent Bolloré. Yet his larger Telecom Italia investment is still deep under water.

Telefonica’s self-activism is half a turnaround

28 Nov 2019

The Spanish phone firm is trying to revive its flagging fortunes before somebody else makes it. Carving out the sprawling and sluggish Latin American operations makes sense, if it leads to a sale. A real activist would demand more clarity on disposals, growth forecasts and costs.

Man City adds scrappy player to financial roster

27 Nov 2019

Silver Lake is buying about 10% of the Premier League club's owner, valuing the global soccer conglomerate at an eye-popping $4.8 bln. Victory on the pitch won’t be enough to satisfy the buyout shop’s investment goals. That may take winning in streaming, e-sports and even China.

Merger Monday is cold comfort in longer M&A slump

26 Nov 2019

Deals from LVMH, Novartis, Charles Schwab and peers added up to an impressive-looking $70 bln. Yet 2019 transactions volumes are lower than last year, despite record stock markets, and M&A valuations are falling. Trade wars and growth fears have to ease for a sustained pickup.

LVMH can use Bulgari as model for Tiffany revamp

25 Nov 2019

The French luxury house has paid $16.2 bln to secure its U.S. jeweller rival. The final price tag is not too fanciful compared to past bling deals, but LVMH will still need to apply a lot of polish to make it stack up. Its past success at Bulgari gives much comfort.

Euronext’s Spanish journey looks tortuous

22 Nov 2019

Stephane Boujnah, the exchange’s acquisitive boss, may try to trump Swiss rival SIX’s 2.8 bln euro bid for Madrid-based peer BME. A higher offer may clinch the deal, but would test Euronext’s financial discipline. Appeasing local politicians would also come at a cost.

French lottery IPO may be as good as Macron gets

21 Nov 2019

Shares in La Française des Jeux popped 18% as the state-controlled group started trading. Winnings of $2 bln endorse President Emmanuel Macron’s privatisation push. But continuing protests and a national strike will hamper plans to sell more of the $20 bln Paris airport operator.

HSBC markets boss exit presages U.S. and EU pain

20 Nov 2019

Investment-bank head Samir Assaf may be replaced as part of interim CEO Noel Quinn’s shakeup. His division’s consistent 10%-11% return on equity has been solid if unremarkable, and hides weaker U.S. and European units. Cost cuts should fall most heavily in those regions.

EasyJet finds budget way to offset Greta Thunberg

19 Nov 2019

The low-cost carrier will pay 25 mln pounds a year to compensate for CO2 emissions. That’s less green than it sounds. The benefits of offset schemes are disputed and, at just 25 pence per passenger, won’t change behaviour. It’s more about countering the Swedish teen’s guilt trip.

Renault needs to break pay taboo to get right boss

18 Nov 2019

The French carmaker wants a new CEO, whose first job is to mend the Nissan relationship. But pay restraint at state-owned firms will deter contenders like Toyota’s Didier Leroy. Still, Air France busting its remuneration ceiling gives chair Jean-Dominique Senard some flexibility.

Swiss bourse buys costly ticket to EU trading room

18 Nov 2019

Zurich-based exchange operator SIX is offering 2.8 bln euros cash for Spain’s BME, which is also being courted by rival Euronext. Building up scale makes sense. But extracting savings to justify the 34% premium may be challenging. It’s an expensive way to gain an EU foothold.

Aramco’s $1.7 trln price tag pleases almost no one

17 Nov 2019

The Saudi oil giant will offer shares below the $2 trln valuation originally sought by the kingdom’s crown prince. But selling just a 1.5% slice implies the price range is still too rich for foreign investors. The mega-IPO is moving closer towards being a largely domestic affair.

Burberry checks right boxes on path to turnaround

14 Nov 2019

Strong demand for designer Riccardo Tisci’s new collections has helped the UK fashion group offset disruption at its Hong Kong hub. It expects sales in the Asian city to stay under pressure, but teaming up with Tencent to help a push into mainland China may offer some protection.

Value fight would drive Peugeot into cul-de-sac

13 Nov 2019

Investors in the French carmaker may question CEO Carlos Tavares’ zeal for a merger with rival Fiat. But holding out for better terms is futile when big shareholders with 50% of voting rights back the plan. Opposing the deal would also undermine Tavares, Peugeot’s top asset.

Iliad’s baffling buyback tests investor credulity

12 Nov 2019

Xavier Niel’s French telecom group will spend 1.4 bln euros to buy out minority shareholders at a premium. At the same time, the entrepreneur is underwriting a share issue to raise the same amount. It looks a convoluted and costly way for the billionaire to lift his stake.

New Credit Suisse investment-bank chief needs axe

11 Nov 2019

David Miller is taking over from James Amine, who helped run the unit for a decade. His top priority is to stop losing market share in key businesses like advising on deals. However, costs also look high, despite recent restructuring. There’s an argument for more cuts.

Richemont jewellery wealth dazzles Tiffany suitors

8 Nov 2019

The Swiss group’s weak first-half results mask the power of its Cartier and Van Cleef brands. The jewellers converted 33% of sales into operating profit, roughly double Tiffany’s margin. That gives rival LVMH a shiny target as it pursues a takeover of the American group.

Cox: Aramco is an ESG investor’s worst nightmare

7 Nov 2019

The Saudi oil giant’s business model is predicated on humans continuing to spew CO2 into the atmosphere. Its governance makes WeWork look benign. Its monarchy is overly tolerant of human rights abuses and beheadings. Fund managers with a conscience should boycott the deal.

Siemens will sand down its valuation discount

7 Nov 2019

The German industrial group had a good fourth quarter. Shares are valued at 15 times forward earnings, compared with 19 times for peer ABB. If Chief Executive Joe Kaeser can achieve his relatively modest 2020 earnings ambitions, he can close that gap with his European rival.

EU banking union needs more than German concession

6 Nov 2019

Finance Minister Olaf Scholz is willing to consider an EU deposit insurance scheme. Countries like Italy may balk at some of his conditions. That such a sensible plan can take so long to come to fruition shows how far Europe is from rational policy making on financial regulation.