Divestment

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.

G4S carve-out lacks compelling valuation bump

9 Aug 2019

The British security firm is spinning off its cash-handling unit, a no-brainer given the shift to digital money. That allows more focus on its core business of guarding people and businesses. But a share price bump requires investors to place a high value on the latter.

Healthineers robot buy puts big price on old veins

8 Aug 2019

The $41 bln Siemens spinoff is paying $1.1 bln for Corindus, which helps automate vascular operations. It’s paying a vein-popping 100 times revenue to stay ahead of Philips in the race to fix ageing blood vessels. Healthineers will have to pump up growth to justify the price.

Bolloré hits right note to mute Vivendi doubters

6 Aug 2019

The French tycoon may sell 10% of Universal to China’s Tencent at a price that values the music label at 30 billion euros. Sceptics who feared a deal wouldn’t happen this year will be silenced. But more selloffs are required to erase Vivendi’s persistent conglomerate discount.

Indian mogul’s ode to Anglo ends on duff note

26 Jul 2019

Anil Agarwal is dumping his roughly 20% stake in miner Anglo American. The complex holding structure, dubbed “poems” by creator JPMorgan, meant he only partly profited as the target’s shares soared. The bigger prize, meshing it with his Vedanta empire, also proved elusive.

WPP disposal offers cautionary tale for Publicis

2 Jul 2019

The UK ad group is selling the debris from a debt-driven acquisition spree under former boss Martin Sorrell. Its $12.3 bln French rival is borrowing to splurge on a data business. Publicis’ lowly valuation shows investors fear that CEO Arthur Sadoun may repeat Sorrell’s mistakes.

John Malone’s M&A nous gets short shrift in Europe

28 Jun 2019

The cable cowboy’s Liberty Global should get $15 bln of cash from Swiss and German asset sales. A lowly share price means investors are worried Malone will waste the money. That’s unmerited: share buybacks and further selloffs seem likelier than a risky acquisition.

Casino takes baby step on road to redemption

28 Jun 2019

The French grocer has simplified its Latin American structure. The bankruptcy of Casino’s parent company Rallye frees it to recapture some value for investors, and offloading stakes in Latam supermarkets would cut leverage. A focused French business could be an easier sell.

Greyhound activist gets few scraps from board coup

25 Jun 2019

Coast Capital failed in its move to revamp the board of FirstGroup, UK owner of the bus operator. True, Chairman Wolfhart Hauser won’t stand for re-election. But the board is mostly unchanged. And, having defeated one revolt, FirstGroup may take longer to break itself up.

Bristol-Myers drug sale tests $74 bln Celgene deal

24 Jun 2019

U.S. trustbusters have butted in once again, forcing the divestiture of a lucrative treatment. Bristol-Myers could have off-loaded its own nascent drug. Instead it may be hoping for a big price. That would support the idea that Celgene was undervalued, but it’s a riskier path.

VW $17 bln IPO gets reform drive back on the road

14 Jun 2019

The German carmaker is offering a smaller slice of its truck unit at a lower valuation, after delaying the float in March. It’s a sign that CEO Herbert Diess wants to simplify the group even if proceeds are less than hoped. That’s encouraging for VW’s often-ignored investors.

Anbang’s Dutch cast-off hopes for third time lucky

10 Jun 2019

Apollo-backed Athora is paying the defunct Chinese group 2.5 bln euros for insurer Vivat, its third owner in five years. The sale spares the blushes of the Dutch regulator for approving the previous sale. The new Bermuda-based owner is not risk-free but looks relatively safer.

Bayer animal-health buyout will need heavy petting

3 Jun 2019

Private equity groups are itching to get their hands on the German group’s flea-powder and tick-collar unit, the FT says. To earn a decent return, a new owner would need to supercharge sales, boost margins and cut R&D. Even then, the mooted 8 bln euro price tag looks excessive.

Chevron’s North Sea deal eases its wounded pride

30 May 2019

The U.S. oil major has sold its assets off the British coast for $2 bln, at a better valuation than recent deals have fetched. Buyer Ithaca should still make a decent return. Chevron shows it hasn’t completely lost its dealmaking nous after being jilted at the altar by Anadarko.

Greyhound sale is first leg of owner’s long trip

30 May 2019

Under pressure from an activist, Britain’s FirstGroup is selling the iconic U.S. coach group and spinning off its UK bus unit. Simplifying the $1.8 bln group should unlock value. But uncertainty over timing and liabilities means investors are miles away from their destination.

Vedanta Zambia mess tarnishes Anglo breakup pitch

22 May 2019

President Edgar Lungu wants to nationalise the Indian firm’s Konkola copper mines. The hit looks manageable for owner Anil Agarwal. But falling out with a government is an eyesore, particularly if he wants investors to back a potential carve-up of Anglo American in South Africa.

Nestlé scrubs up well with private equity makeover

16 May 2019

Nordic buyout group EQT will pay $10 bln for the Swiss giant’s dermal filler and acne cream business. At that price the acquirer will need plump growth assumptions to make an acceptable return. The smart disposal should help boss Mark Schneider keep activist Dan Loeb at bay.

Private equity could choke on Imperial cigar sale

8 May 2019

Imperial Brands could raise 1 bln pounds from a unit that makes premium stogies. Its rapid growth means a buyout group could earn decent returns at that price. Yet concerns over cancer could irk their investors, and complicate an exit. A Chinese peer may be a more logical owner.