Divestment

Europe’s $9 bln tower group offers clear 5G signal

7 May 2019

Mobile-mast specialist Cellnex should benefit from super-fast data networks even if telecom operators fail to recoup their heavy investments. Its latest 2.7 bln euro deal with France’s Iliad and a Swiss group, though, also shows fierce competition for infrastructure-like assets.

UniCredit’s spring clean would aid foreign jaunts

7 May 2019

Italy’s largest bank by assets is mulling a sale of its 2 bln euro stake in local online broker Fineco. Chunky capital gains on the holding would boost UniCredit’s solvency. That’s handy if it decides to make a swoop on in-play Commerzbank.

P&G could gain from shaving off Gillette

22 Apr 2019

The consumer giant’s razor business, which it bought for $57 bln back in 2005, has been blunted by cheaper competition. Sales, profit and market share are shrinking. A new owner might be able to lavish more attention on Gillette, and leave P&G to focus on areas like healthcare.

IWG divides to conquer WeWork discount

15 Apr 2019

The office space group is selling its Japan business for 320 mln pounds. Retreating from one of its most profitable markets makes sense given the local heft of SoftBank, which is backing its $47 bln rival. A plan to offload other regions will reveal value hidden under the desk.

Santander’s $2.9 bln Mexico bid is easy to refuse

12 Apr 2019

The Spanish lender wants to swap the 25 pct of its Latin American unit it does not own for shares in the group. Despite a 14 pct premium, the offer is a lower multiple of book value than when Santander listed it in 2012. Given robust profitability, Mexican investors can hold out.

Engie gets the gas but without the gearing

8 Apr 2019

The French utility’s $8.6 billion deal to buy Petrobras’ Brazilian gas pipelines enables expansion in one of its core areas. Doing so with Canada’s CDPQ limits the extent it needs to push up its debt. That should help keep its new three-year strategy on the road.

Carlyle shows Mubadala benefits of procrastination

8 Apr 2019

The buyout group is acquiring 30-40 pct of Cepsa from the Abu Dhabi fund. The $12 billion enterprise value is in line with the Spanish energy group’s aborted IPO last October. The only downside is that a listing would have made it easier for Mubadala to sell more in future.

Citi’s Northern Rock wager has political spice

2 Apr 2019

The U.S. bank bought 5 bln pounds of mortgages made by the lender which failed in 2008 from the UK government. The state cuts its debt load, and the buyer gets stable high-yielding assets. The risk is that a left-wing executive takes power, and forces lenders to cut rates.

Publicis’ $5 bln deal would push data fad to limit

1 Apr 2019

The French group may buy Alliance Data’s digital-marketing unit. The mooted price tag is manageable given Publicis’ pristine balance sheet. But the low returns on offer suggest that CEO Arthur Sadoun is worried about keeping up with data-rich ad rivals and tech giants.

WPP would win most from $5 bln data-business sale

19 Mar 2019

Buyout groups Advent and Blackstone are circling the ad group’s market-research unit Kantar, Reuters reported. Private-equity buyers could hike margins and combine it with a rival. WPP’s wad of cash and retained access to its consumers’ data sounds more enticing, though.

Daily Mail owner bucks poor media-governance trend

4 Mar 2019

Tycoons like the Bollorés, Lagarderes and Murdochs are often accused of mistreating minority shareholders. The Mail’s Rothermere family, though, is penalising itself through a spinoff. It’s a testament to strong UK rules and a sop to investors whose stakes have underperformed.

Universal Music auction could end on bum note

28 Feb 2019

Buyout group KKR and China’s Tencent may bid for part of Vivendi’s label, Reuters reports. On paper it’s the best way to gain exposure to fast-growing streaming. That means getting emerging market fans to pay for music. Investing alongside Vincent Bolloré also brings risks.

John Malone wins most in Europe’s telco M&A whirl

28 Feb 2019

The cable cowboy’s Liberty Global is selling another business, this time to Swiss group Sunrise for $6.3 bln. As in Germany, Malone gets a premium for a sub-scale operation. The benefits for the buyer from bundling mobile, TV and internet services may be competed away.

Slimmed-down TomTom is now an alluring M&A target

22 Jan 2019

The Dutch company is selling a van-data unit for $1 bln, or more than half the whole group’s market value. That makes its core digital-map business look cheap. With Big Tech and auto giants hoping to dominate software for cars of the future, TomTom may struggle to stay solo.

GSK takes M&A steroids for strategic ailment

19 Dec 2018

The UK drugmaker will mesh its consumer health unit with Pfizer’s, gear it up and spin it off. That should leave more firepower for GSK’s weaker pharmaceutical division. Both businesses should be better off, if boss Emma Walmsley can invest wisely. That’s still to be seen.

Elliott’s best bet with Bayer is a breakup

10 Dec 2018

Paul Singer’s fund has held a stake in the $66 bln German conglomerate for over a year. Litigation fears have pushed the stock down 40 pct in that time. Convincing Bayer to sell its drug and consumer health units could create value, but means getting Singapore’s Temasek onside.

Twin threats crumple DS Smith’s success

6 Dec 2018

The 4.4 bln pound UK packaging company delivered a 32 percent surge in first-half operating profit. A boom in recycling and e-commerce suggests the firm can deliver more of the same. But trade war rumblings and an oversupply of paper are weighing on its share price.

Kier banks face spectre of HBOS-style flop

5 Dec 2018

The engineering group’s share price is near the level at which it needs to issue stock. Further falls could leave banks with shares, a rare event since the fiasco of HBOS in 2008. Brexit and government cuts don’t help. If the sector needs any more capital, it’s an ominous sign.

GSK looks like a better seller than buyer

3 Dec 2018

The UK drug giant is acquiring cancer specialist Tesaro for $5.1 bln and offloading its Horlicks unit to Unilever for about the same amount. It’s a neat way for CEO Emma Walmsley to reshape GSK. But the purchase will take years to pay off – and is much riskier than hot drinks.

Altice wins most from $2 bln fibre sale

30 Nov 2018

Patrick Drahi’s debt-ridden telco needs cash to keep building fast broadband in quiet bits of France. Investors like Allianz will pay up for infrastructure-like assets. Selling a minority stake lets Altice lock in high valuations, while offloading some of the risk if fibre flops.