Divestment

Unilever’s spreads sale plan contains adequate fat

23 Mar 2017

After Kraft’s aborted bid, the Marmite maker needs a self-help plan. Selling its spreads business would be risky as weak growth prospects may mean a low price. But on modest assumptions a private equity buyer could get a decent return – and kick-start Unilever’s reinvention.

Iceland gives hedgies cooler welcome than Greece

21 Mar 2017

Och-Ziff, Goldman Sachs and two funds bought 30 pct of Icelandic lender Arion, with an option to add more. In 2013, those brave enough to back Greek banks got juicier terms. As rare examples of European capital controls, both countries remain risky. Reykjavik is more alluring.

New captain can steer Maersk into calmer waters

8 Feb 2017

The ailing Danish shipping and oil conglomerate reported disappointing fourth-quarter results, halved its dividend and replaced its chairman. Yet a rising oil price, recovering freight rates and Maersk’s coming split mean former SAP boss Jim Snabe is boarding at a turning point.

Revised Walgreens deal full of quiet desperation

30 Jan 2017

To salvage its trustbuster-challenged acquisition of Rite Aid, the two drugstore chains agreed to sell more shops and cut the price by some $2 bln. They're settling for much less, but may have good reason more than a year on. That's if competition problems can even be solved.

RWE gives masterclass in financial alchemy

26 Sep 2016

The troubled German utility is listing a minority stake in its healthy parts - grids, renewables and retail. Nothing will change much operationally. Yet the company hopes the spun-off part, Innogy, will have twice RWE's market cap. If that sounds illogical, that's because it is.

Shrink to greatness? It’s not always that simple

22 Sep 2016

Danish conglomerate Maersk just said it will break up. The shares barely moved. Carving up a complex corporate beast can make great sense - think HP. But some hybrid companies that resist being split, like Rolls-Royce, ABB and AB Foods, may have a point.

E.ON coal legacy has potential for further smudges

10 Aug 2016

Despite a 3.8 bln euro writedown on its fossil fuel assets, German utility E.ON may still be overestimating the value of its soon-to-be spun off subsidiary Uniper. The likelihood of further adjustments, and a costly nuclear settlement, suggests it needs more capital.

SoftBank’s Alibaba selldown is elegantly coded

5 Jun 2016

The Japanese group has raised $6.6 bln by selling securities that swap into shares in the Chinese e-commerce giant. The transaction looks fiddly – but allows SoftBank to navigate U.S. securities laws while keeping some upside. Close links with Alibaba were also crucial.