Pity the Paramount common shareholder 20 Aug 2024 Seagram liquor scion Edgar Bronfman Jr. is crashing tech heir David Ellison’s $8 bln bid for the media group, offering to buy out controlling investor Shari Redstone. Other disgruntled voting shareholders play a role. Those without a say get varying degrees of bad options.
Saudi fund’s prudence pivot is only half complete 20 Aug 2024 The $925 bln Public Investment Fund is spending more money locally. That should do more to help Saudi’s diversification push than past international forays. But the domestic projects are often speculative, implying low returns and a continued shortage of foreign co-investors.
Bharti sets strange tone for India’s global push 20 Aug 2024 Tycoon Sunil Bharti Mittal's purchase of a $4 bln stake in BT suggests he sees better use for his capital in a mature UK firm than in India's fast-growing economy. New Delhi may be encouraging firms to go overseas; unfortunately, the first big buy in years barely looks rational.
AMD’s $5 bln deal solidifies AI runner-up status 19 Aug 2024 The $250 bln chipmaker’s data center business will double revenue this year due to demand for artificial intelligence. Buying server maker ZT Systems should help tame rising complexity, allowing speedier deployment of AMD’s chips. Even so, it’s miles behind $3 trln leader Nvidia.
Couche-Tard may find 7-Eleven bid more convenient 19 Aug 2024 The Circle K owner’s preliminary offer sent shares of the retailer’s $38 bln Japanese parent Seven & i up. The target is plotting its own rejig, with support of activist ValueAct. But fair M&A guidelines ensure the bidder a warmer initial reception than the one it got in France.
Europe’s dealmakers begin tough redemption journey 19 Aug 2024 The market share of BNP, Barclays, UBS, SocGen and Deutsche seems to have troughed at around 8% in M&A and 6% in equity underwriting. The days of ever-increasing US dominance may be over. Getting investors to attach more value to these volatile units, though, is the harder job.
Worldline buyout offers rare shot at easy returns 15 Aug 2024 The $2.5 bln French payment firm is an obvious target thanks to its depressed share price. Private equity buyers can wring out a decent return even with zero profit growth in the next few years. And seeing as France is only a minor market, the state is unlikely to meddle.
Southwest shareholders needn’t act like passengers 14 Aug 2024 Rabble-rouser Elliott escalated its battle with the $15 bln airline by unveiling a dissident board slate. The timing is odd: sitting directors just won overwhelming support. It’s a question of persuading investors they deserve a smoother ride than sheep-like flyers tolerate.
Pringles’ $36 bln deal comes with a pinch of salt 14 Aug 2024 Candy maker Mars is acquiring snack rival Kellanova for $83.50 per share in an all-cash deal. Strategically it’s a fit: adding potato chips to M&M’s rounds out the buyer’s offerings. But a whopping $29 bln financing and a hostile regulatory environment add a dose of uncertainty.
Big Beer’s stumbles leave investors ice cold 14 Aug 2024 Heineken shares are down after it disappointed investors hoping for a sport-fuelled profit party. Rival Carlsberg’s valuation has fallen due to a $4 bln soft drinks takeover. For CEOs, emerging markets growth and deals in the right areas are the only way to add fizz to stocks.
Power grids’ low-wattage resources may spark M&A 13 Aug 2024 European electric utilities have to invest big to meet rising demand. Yet balance sheets are laden with debt and raising equity is tough. Some will have to sell assets, or whole companies. Iberdrola’s $5 bln acquisition of a UK peer at a decent premium could be the first of many.
Woodside’s deal poses a new green conundrum 13 Aug 2024 Months after shareholders rejected its climate transition plan, the oil driller is buying an ammonia facility in Texas for $2.4 bln to help hit its emissions reduction goals. But the tech and end-uses are questionable. The return gives investors little to cheer, too.
Cross-border bank deal takes leap of faith 12 Aug 2024 A $2.8 bln investment by Scotiabank helps Ohio-based KeyCorp get out of a capital rut, and at a generous valuation, to boot. For the Canadian lender, the direct benefit of a minority holding in a US peer is less clear. Stake sales of this sort are rare for a reason.
UK wealth buyout requires elbow grease and luck 9 Aug 2024 After an intense courtship, CVC and Abu Dhabi have snapped up investment platform Hargreaves Lansdown for $7 bln. The rich price tag means the new owners will have to slash costs while cranking up sales to make a decent return. That may be tricky if interest rates keep falling.
KKR shows it’s business as usual in Japan Inc 9 Aug 2024 The US fund is offering $4 bln to take IT-specialist Fuji Soft private, a year after activist 3D kicked off a sales process. Despite a strengthening yen and volatile stock market, it's a reminder that there's still value to be unearthed. Similar deals will keep ticking along.
KKR’s corporate PR deal hangs on more bad news 7 Aug 2024 The buyout group is taking control of financial communications company FGS from WPP. At 15 times 2024 EBITDA, the $1.7 bln valuation is rich but below peer FTI Consulting. For the bet to pay off, CEOs will have to face more major crises that require the PR firm’s pricey counsel.
Pringles would make a tasty M&A bite for Mars 5 Aug 2024 Recession fears and weight-loss drugs loom over indulgent snack makers. Yet the M&Ms owner is mulling a bid for $24 bln Kellanova. Even a 30% premium would only match rivals’ valuations; so long as cost savings materialize, taking a bigger piece of a tougher market makes sense.
L’Oréal’s tardy skin care facelift may backfire 5 Aug 2024 After sitting out its IPO, the cosmetics giant is buying 10% of $19 bln dermatology specialist Galderma, which it sold in 2014. The Swiss firm’s fast-growing injectable business is attractive. Yet the move risks making a potential full takeover overly expensive.
Buyout barons enter their spray-and-pray era 2 Aug 2024 Private equity firms like KKR and Apollo have ramped up investment – in turn boosting companies like Ares that provide debt for deals. But as some smaller bets underwhelm, investors are being asked to believe that buyout shops’ contrarian view of the future is the right one.
Airlines’ margins head to lower cruising altitude 2 Aug 2024 Carriers from $2 bln Air France-KLM to $7 bln Lufthansa reported healthy demand in the first half of 2024. But earnings are falling as expenses bite. With the switch to sustainable aviation fuel threatening to push costs ever higher, investors are bracing for smaller margins.