Deals

Capital Calls: Unilever, Shopify

4 May 2023

Concise views on global finance: The consumer goods company may need to backtrack on a pay package for its incoming CEO to quell a shareholder revolt; shares in Canadian e-commerce firm Shopify shot up over 20% after it said it was selling its logistics business to Flexport.

Telecom Italia is stuck in risky game of chicken

4 May 2023

The telco’s board must decide on rival bids from KKR and state investor CDP for its fixed-line grid. None comes close to the 31 bln euro price wanted by top investor Vivendi, but cash is needed to slash debt. If neither side blinks, the group could face a messy capital increase.

Blackstone is cautious enough with its mall IPO

4 May 2023

It has trimmed the size of a $400 mln REIT deal to list Indian shopping malls and pricing looks conservative. A successful float of a portfolio where occupancy rates are near maxed out will give the US fund something small to cheer about in a tough global real estate market.

Eli Lilly’s golden ticket is a regrettable winner

3 May 2023

A voucher system to encourage drug development for neglected diseases has mostly been a limp carrot. For some, though, fast lanes to U.S. FDA approval are worth a fortune, perhaps $30 bln for a new weight-loss treatment. But the pandemic showcased better ways to spur investment.

Buyout barons make bloody return in Europe

3 May 2023

Silver Lake and Bain are facing off to buy German company Software AG amid a revival in takeovers. Cheap stock prices mean deals can work despite debt constraints. But a limited pool of targets will make it hard to deploy $2 trln of dry powder, and stay disciplined.

Private equity is the new fuel for India’s tycoons

3 May 2023

Big conglomerates Reliance, Tata and Bharti are putting more skin in the game by looking to outside shareholders including tech giants and sovereign funds to finance new ventures. It heralds a shift from debt to equity, and towards better governance at the expense of lenders.

Capital Calls: BP, Japanese M&A

2 May 2023

Concise views on global finance: The oil giant will buy back $1.8 bln of shares over the next three months, which is less than investors hoped for; Astellas Pharma is making the most of cheap debt for its $5.9 bln pounce on U.S. eye-treatment specialist Iveric Bio.

The game’s on, not over, for Activision Blizzard

1 May 2023

Microsoft has vowed to fight for its $69 bln takeover despite regulatory opposition. Even if the deal collapses, however, the developer behind “Call of Duty” would be armed with $15 bln of cash, including the break fee. It’s plenty of firepower to wage a stand-alone war.

Glencore’s best Teck tactic is a surgical strike

28 Apr 2023

The Swiss commodities giant has little room to sweeten its $23 bln offer for the Canadian miner without hurting its own shareholders. It can, however, afford a disproportionately higher premium to the controlling Keevil family. Common-stock owners would have to see the upside.

Deutsche’s Numis swoop more logical than it looks

28 Apr 2023

The lender’s $500 mln purchase of the UK broker seems an odd move for CEO Christian Sewing, who once aimed to shrink investment banking. But the valuation isn’t silly, and a deal may boost Deutsche Bank’s corporate lending arm. Numis’s smaller peers may also now seek a new home.

Sumitomo triples down on Jefferies at right time

28 Apr 2023

The $8 bln Wall Street firm’s earnings have slumped with deal flow, so SMFG boss Jun Ohta can boost his stake to 15% at roughly the same price he paid two years ago. This time he has the benefit of knowing his partners better and can get ahead of any boom in investment banking.

Deutsche Boerse data pivot comes at a price

27 Apr 2023

Boss Theodor Weimer is buying fund software firm SimCorp for 4 bln euros. Like peer LSEG, the German exchange is hoping a shift into the faster-growing data business will mean richer valuations. It’s a logical gamble, but such deals are expensive, and take time to pay off.

Capital Calls: US GDP, Eli Lilly, EU budget

27 Apr 2023

Concise views on global finance: Consumer spending provided fragile support for the US economy in the first quarter. Meanwhile pharma group Eli Lilly is racing against rising obesity expectations, and the European Commission faces German hurdles to replacing its budget rules.

Meta is younger dog learning newer new tricks

26 Apr 2023

Mark Zuckerberg cut enough costs last quarter to bolster margins well past expectations, adding 12% to its $530 bln value in after-hours trading. That positions it nicely against competitors pivoting to AI. The issue is that Meta’s metaverse project doesn’t look as fresh.

German $13 bln heat pump sale dents EU green hopes

26 Apr 2023

US firm Carrier Global is buying the energy unit of family-owned Viessmann. It’s a setback for German and European ambitions to create regional leaders in new technology. Yet for continental groups to compete globally, loss of control may be a necessary price.

New UBS investor pitch fits better than old one

25 Apr 2023

Rescuing Credit Suisse is a risky move. But first-quarter results show that the buyer’s existing business is struggling to grow. The merger offers large savings and creates a wealth giant with $3.5 trln of assets. The return of proven cost-cutter Sergio Ermotti as CEO helps.

Credit Suisse mess leaves scattered Swiss debris

24 Apr 2023

A $3 bln state-sponsored UBS takeover prevented the failure of Bern’s other big bank. Yet small, export-oriented Swiss firms now only have one large lender for their needs, and additional bank regulation is likely. Meanwhile, historic US tax issues may come home to roost.

UBS investors’ M&A fears are easing

24 Apr 2023

One question hanging over Chair Colm Kelleher’s Credit Suisse deal was whether there’d be many assets left by the time it closed. But the target’s outflows were smaller than they could have been, and the valuable local unit held up well. That buttresses shareholders’ confidence.

Capital Calls: Disney, Thyssenkrupp

24 Apr 2023

Concise views on global finance: The CEO of the $180 billion entertainment company has to thread the needle between layoffs and degrading value as he finds a successor; the 4 bln euro German steel-to-cars group’s shares tanked after CEO Martina Merz left.

Capital Calls: P&G, ‘South Park’

21 Apr 2023

Concise views on global finance: Prices hikes helped the Tide maker’s sales again as consumers stayed loyal; Paramount and Warner Bros Discovery are suing each other over the show’s rights in a case that reflects shifting strategies on licensing media and intellectual property.