Divestment

UniCredit pays up for tricky Turkish escape

2 Dec 2019

The 28 bln euro Italian bank trimmed its holding in Turkish lender Yapi Kredi. Break fees and a steep discount suggest local partner Koc Group got a good deal. Yet CEO Jean Pierre Mustier frees up capital, and paves the way for a proper exit, if markets and regulators play along.

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.

Packaging sale can cure AB InBev’s hangover faster

28 Nov 2019

The $133 billion brewer’s U.S. bottle and can production unit is worth up to $6 bln. A sale of even a minority stake can bring net debt below 2 times EBITDA a year earlier in 2022. Soothing investor fears over indebtedness is worth having to rely on another company for vessels.

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.

Maybe eBay should rebrand as a VC fund

25 Nov 2019

The $29 bln firm is a shadow of Amazon in e-commerce, but selling StubHub for $4 bln shows prowess at incubating a business acquired for less than a tenth of that. Off-loading its classified operations could be similarly successful. And eBay’s biggest gains have come from PayPal.

Sinking Thyssenkrupp needs more than a quick lift

21 Nov 2019

The German group’s shares fell after it cut its dividend. Selling its elevator unit will raise cash but leave a loss-making rump. With restructuring, the steel-to-ships maker could be worth much more than the current 7.5 bln euros, but boss Martina Merz faces an arduous climb.

Aviva’s drift to mediocrity may tempt an activist

20 Nov 2019

The UK insurer pledged to simplify its business. Yet new CEO Maurice Tulloch’s strategy review disappointed hopes for asset sales, and mostly reaffirmed older aims. The $21 bln group’s sprawling structure, and discount to peers make it a juicy target for an uppity investor.

Smith & Wesson shows limits of a corporate fad

14 Nov 2019

The gunmaker’s parent is separating firearms from its camping gear unit. Just three years ago it argued diversification would be a plus. There’s a lesson for other industries: Sprawl is no protection, real or perceived, when banks and investors decide a business has turned toxic.

Emerson settlement with Shaw would be win for both

30 Oct 2019

The clock is ticking for the hedge fund to start a proxy battle at the $44 bln conglomerate. Emerson needs a makeover, and D.E. Shaw wants to burnish its activist cred. A deal that shakes up the board and slashes fat without an immediate bust-up would be a victory for everyone.

AT&T’s brush with activism creates four winners

28 Oct 2019

The $270 bln U.S. telecom plans to raise margins, add directors and sell assets, and it only took a nudge from Elliott. Both sides look smart, and investors gain too. So do shareholders in other companies: AT&T’s plan to split chair and CEO roles helps them to ask for the same.

Emerson Electric is only half as bad as Shaw says

16 Oct 2019

The $42 bln conglomerate sports crummy governance, excess fat and a retro penchant for private jets. But there are good reasons the market hasn’t bought into relative newcomer to activism D.E. Shaw’s argument that a breakup would unlock $20 bln of value.

Prudential Brexit split only partly reveals value

30 Sep 2019

The 38 bln pound insurer is spinning off its UK asset manager and annuities arm next month. M&G could be worth close to 7.8 bln pounds, according to Breakingviews calculations. To justify the hassle, though, Prudential investors will award its Asian operations a higher rating.

Baidu’s Ctrip sale leaves room for risky wandering

27 Sep 2019

The $37 bln web giant is offloading nearly a third of its holding in China's largest travel agency for $1 bln. Ctrip stock has shed over 30% since Baidu came in; still, thanks to an initial share swap, boss Robin Li can book a profit. Now he needs to spend on more than buybacks.

GE’s Larry Culp is playing a bad hand well

11 Sep 2019

The CEO is selling what he can to save what he must. Ceding control of oil services firm Baker Hughes will mean a hefty writedown for the conglomerate, but it brings divestments to nearly $20 bln on his watch and reduces leverage. That buys Culp time to fix GE’s troubled core.

UK building supplier adopts Peltz’s American dream

3 Sep 2019

Ferguson plans to spin off its British unit and focus on the United States, as suggested by the activist. Trading more in line with U.S. peers should boost shares in the 14 bln pound group. But UK-based holders could make moving the primary listing to New York a tough project.

CNH can release valuation brakes with truck split

30 Aug 2019

The $14 bln Italian-American tractor-to-van group may spin off its struggling commercial vehicle unit, Bloomberg reports. Investors might pay more for a purer agricultural play. And independence might help the subscale vehicle business, whether on its own or in stronger hands.

TechnipFMC may work better with split personality

27 Aug 2019

The $11 bln French American oil and gas servicer is breaking in two not long after merging. Investors in the Paris-listed engineering unit will need a higher risk tolerance, though orders are booming. The remaining pipes and wells business should benefit from a higher multiple.

Bristol-Myers passes $74 bln deal’s first big exam

26 Aug 2019

The drugmaker is stretching to buy ​rival Celgene. To smooth U.S. antitrust review, it put its target’s blockbuster psoriasis treatment on the market. Amgen has won that prize, for an unexpectedly rich $13 bln. That’s a boost for Bristol-Myers’ deal rationale – and its timing.

Transatlantic pet care deal will need grooming

20 Aug 2019

Elanco is paying $7.4 billion in cash and shares to buy Bayer’s animal-health division. The deal may make more sense for the seller than the buyer. The Eli Lilly spinoff will have to ramp up sales and deliver on ambitious cost-cutting plans to make a success of its acquisition.

Knight Vinke tilts at new European energy windmill

20 Aug 2019

The activist investor doesn’t want its 1.3% stake in Swiss utility Alpiq to be squeezed out in a delisting. The offer does look undervalued. But as with its other European energy interventions, Knight Vinke’s worthy crusade for shareholder justice faces stiff headwinds.