Deals

Apollo may get noodle LBO thrown back in its face

12 Oct 2023

The buyout group could gobble up the UK-listed owner of the Wagamama chain for $862 mln. It looks like a good deal for the acquirer. Apollo’s decision to drop its John Wood takeover this year shows it’s no soft touch, but investors can still hold out for a better dish.

KKR and Carlyle play zero-sum game in credit

11 Oct 2023

The two investing giants are foregoing any cut of profit for their latest European debt funds, further eroding the 2-and-20 standard. Amid a potential industry shakeout, it’s a sensible way to keep management fees flowing, which are more highly prized by public shareholders.

Exxon’s last mega-deal casts shadow on latest one

11 Oct 2023

The $60 bln acquisition of Pioneer will be the energy giant’s biggest since it bought XTO for $31 bln. It overpaid for expertise and acreage in 2009 near a peak in gas prices. Fracking experience gives boss Darren Woods an edge now. The timing may be equally bad, however.

Sports teams’ trophy status boosts private equity

10 Oct 2023

A stake sale could value the NBA’s Golden State Warriors at $7 bln, making it one of the world’s most valuable teams. Billionaires’ scramble for trophy assets is pumping up price tags. That makes sports one of the safest bets around for buyout shops taking a piece of the action.

One $16 bln deal travels lonely dual track

9 Oct 2023

Buyout shops GTCR and Apax may be exploring both a sale and an IPO for insurance broker AssuredPartners. Using two separate paths typically aims to create competitive tension and lift valuations. With equity, debt and M&A markets all cool, neither option poses a plausible threat.

Disney has a weak hand in activist rematch

9 Oct 2023

The $152 bln media giant promised cost cuts to sate cage-rattler Nelson Peltz earlier this year. But that is slow-going and the stock has since fallen by a quarter while peers are up. Now the activist is back and wants a board seat. A weakened Disney’s best bet: invite him in.

Capital Calls: Germany, Schaeffler

9 Oct 2023

Concise views on global finance: Chancellor Olaf Scholz’s resounding defeat in key local elections on Sunday sends a message to Brussels; the German group’s 3.6 bln euro acquisition of auto supplier Vitesco makes sense in an era of greater competition.

Exxon $60 bln deal would mark shale’s middle age

6 Oct 2023

Buying Pioneer, a huge producer of oil in the US Permian, would be a mega-acquisition even for Exxon, but a rational one. It could offer a reasonable return, and the ability to exploit future oil-price spikes. For a maturing Pioneer, now isn’t a bad time to settle down.

SPAC shell games will keep hiding the ball

5 Oct 2023

Firms going public via blank-check companies in 2021 expected nearly $100 bln of revenue this year. They’re looking about $40 bln short. Some like Cazoo are failing; others misled investors. Yet rules to prevent another mania sit in limbo and incentives endure to spur a comeback.

Hedge fund pair trade would end Sculptor standoff

4 Oct 2023

Boaz Weinstein and pals again raised their bid for the $34 bln firm and are now willing to risk clients decamping. Agreed buyer Rithm would be better off just hiring boss Jimmy Levin. The rival suitors don’t want him and could tear up any non-compete contract to sweeten the deal.

Intel’s latest breakup is a test for more to come

4 Oct 2023

The semiconductor giant will hive off more of its empire with IPO plans for its programmable chip unit. Weak markets dinged its last spinoff, but this separation can flout strong profit to highlight $18 bln of hidden value. It’s a dry run for a bigger split down the road.

Alibaba spinoff can deliver two recovery packages

4 Oct 2023

Logistics unit Cainiao’s name may mean “rookie”, but the group is profitable and weaning itself off dependence on its parent. A successful IPO valuing it at $10 bln or more would warm up Hong Kong’s market and show Alibaba’s overhaul is on track after CEO Daniel Zhang’s exit.

Telegraph contenders have three boxes to tick

3 Oct 2023

Suitors are eyeing the UK newspaper, which lender Lloyds recently seized and may now sell for up to 600 mln pounds. The best bid will have a high valuation, a good chance of gaining regulatory approval and solid financial backing. None of the approaches so far offer all three.

Capital Calls: Food prices, Brookfield, SPAC spin

3 Oct 2023

Concise views on global finance: The cost of ingredients for the average UK meal fell 0.1% in September; the Canadian giant’s $1 bln renewables deal reflects how European green assets are getting more appealing; Singapore’s SPAC puts a new spin on blank-cheque targets.

Covid tester buyout hands investors a bitter pill

29 Sep 2023

Cinven is buying back Synlab after floating it just two years ago. Acquiring the German group at a 44% discount to its IPO price is nice for the buyout shop, but hard for investors to swallow. Either way, it reflects ebbing demand for health checks as inflation soars.

Toilet maker artfully unclogs bondholder backup

29 Sep 2023

Embattled Ideal Standard has struck a $640 mln deal to be bought by Germany’s Villeroy & Boch. The key was persuading creditors to accept less than par on 2026 debt. Other struggling companies could make use of similar financial plumbing.

Capital Calls: Pelululemon

28 Sep 2023

Concise views on global finance: The apparel firm and the exercise-bike maker have entered into a five-year partnership, ending a costly feud. For Lululemon, it removes the risk of an outright acquisition. Peloton gains a valuable partner, but still faces an uphill climb.

China plus one will lift India’s capital market

28 Sep 2023

Global funds are doubling down on India, supporting IPOs. JSW Infrastructure attracted $7.3 bln of orders for fewer than $200 mln-worth of shares. It paves the way for big debuts like Ola Electric and Reliance Retail. Investors, though, are entering a market priced to perfection.

Microsoft’s gaming M&A takes it to the next level

27 Sep 2023

The $2.4 trln group’s Activision deal has been picked at by regulators, and it’s exposed to consoles that may be upended by cloud gaming. Still, the $69 bln play diversifies Microsoft into mobile. And it leaves the group better placed to fight the industry’s content wars.

Lithium merger is charged up by tycoon fever

27 Sep 2023

Gina Rinehart, Australia’s richest person, has bought 11% of Liontown, which is sizing up a $4 bln takeover by Albemarle. Whether she makes a full bid or not, she’s only the latest mining billionaire forcing a strategic buyer to dig deeper for an energy transition commodity.