Divestment

Shell may as well try green plug for valuation gap

27 Jul 2023

The $204 bln group’s shares have outperformed US rivals since it flagged a renewed focus on oil, but still lag Chevron and Exxon Mobil. New boss Wael Sawan could try to close the gap by listing his green energy bits. It’s not certain to work, but is better than more buybacks.

Glencore deal epitomises net zero’s reduced status

27 Jul 2023

The $75 bln miner used to argue it was better to wind down its coal assets than sell them to a less responsible owner. Now CEO Gary Nagle wants to buy a rival and spin off the enlarged coal unit. Investors, distracted by energy security and fat profits, are unlikely to stop him.

Capital Calls: European earnings

20 Jul 2023

Concise views on global finance: Consumer-facing companies Electrolux, Essity and HelloFresh all plunged after weaker-than-expected financial reports.

Royal Mail owner may have a breakup on the way

20 Jul 2023

Parent company IDS chose international-parcels boss Martin Seidenberg as its new CEO. The struggling UK unit doesn’t show up in the near-$3.5 bln group’s share price. But Seidenberg has a window to fix it. If that works, he could boost value by splitting the company in two.

Capital Calls: Exxon’s $5 bln carbon-capture deal

13 Jul 2023

Concise views on global finance: The oil giant is using its own shares and paying a tiny premium to buy Denbury, the largest US carbon dioxide pipeline operator, in a greenish-looking transaction that mostly helps it pump more crude.

Capital Calls: Illumina, Domino’s Uber delivery

12 Jul 2023

Concise views on global finance: The EU fines the $30 bln genetic test maker 432 mln euros for closing its 2021 Grail deal prematurely; the pizza chain known for its own delivery app is expanding its service with Uber Eats, a smart move to nab more orders from fickle customers.

Capital Calls: Thames Water, Bayer

10 Jul 2023

Concise views on global finance: The indebted UK utility secured a pledge from shareholders to cough up 750 mln pounds over the next two years; the German conglomerate could help long-suffering investors by undoing the disastrous Monsanto deal.

Worldpay deal gets buyouts halfway back to normal

6 Jul 2023

Private equity shop GTCR is scooping up 55% of the payments firm at an $18 bln valuation, gifting seller FIS a rich price without any IPO hassle. The transaction defies weak debt and M&A markets, but it also requires flexing fundraising muscles to underpin a huge cash outlay.

Mission Impossible: Paramount reckoning

5 Jul 2023

Everyone has a price and media mogul Shari Redstone is no different. The trouble is that her conglomerate’s TV networks alone are worth more than its $11 bln market value. Despite a rich history of breakups, it would take a financial Ethan Hunt to extract full value this time.

Capital Calls: Canada is calling Meta’s bluff

23 Jun 2023

Concise views on global finance: The Facebook owner plans to pull news on its platforms in Canada after the country passed a bill that requires internet giants pay publishers. If Australia is any guide, Meta will eventually cave.  

Comcast rejigs media script after falling from Sky

16 Jun 2023

The $173 bln cable giant is discussing a cash dowry to lure buyers for its pay TV operator’s German arm. That would remove a distraction as CEO Brian Roberts hunts for a new deal. A sale may be hard to reach. But it’s better to cut the cord sooner than later.

Moncler can inspire Golden Goose’s next step

15 Jun 2023

Skirting a pandemic and war, the maker of Super-Star sneakers doubled sales to 500 mln euros in three years, with rich margins. That’s where Remo Ruffini’s down jackets brand stood before its 2013 IPO. It may tempt owner Permira into a $3 bln sale, or Moncler into a purchase.

SoftBank’s Arm IPO set for double stroke of luck

13 Jun 2023

The chip designer may score Intel as an anchor investor in its planned US float. Meanwhile, customers like $975 bln Nvidia have soared amid an artificial-intelligence frenzy. It makes the company’s puffy valuation hopes slightly less implausible – but not necessarily sustainable.

Sequoia breakup will expose go-local consequences

6 Jun 2023

The venture capital firm, which manages more than $100 bln, is splitting into three. The rebranded China and India arms will operate independently from the US and Europe. It speaks to geopolitical tensions, but runs contrary to natural evolution. And untangling comes with risks.

Russia writedown is Raiffeisen’s best option

30 May 2023

The Austrian bank may spin off its profitable Moscow-based unit. The new Vienna-listed lender could struggle to operate given sanctions, shrinking its depressed value further. Stomaching a 4.1 bln euro loss would force Raiffeisen to atone for years of mindless Russian expansion.

Citi slinks rather than marches out of Mexico

24 May 2023

The US bank will IPO rather than sell the Mexican retail business CEO Jane Fraser once ran. It’s the wiser path after a year of haggling and dramatic market moves. Given Citi’s dismal valuation and past underinvestment, what Fraser does closer to home matters more anyway.

Capital Calls: BT, Mediobanca

18 May 2023

Concise views on global finance: The 14 bln pound UK telco’s vague guidance is a concern for its two big shareholders seeking to recoup losses; the 8.5 bln euro Italian bank buys its biggest boutique yet.

Telecom Italia is stuck in risky game of chicken

4 May 2023

The telco’s board must decide on rival bids from KKR and state investor CDP for its fixed-line grid. None comes close to the 31 bln euro price wanted by top investor Vivendi, but cash is needed to slash debt. If neither side blinks, the group could face a messy capital increase.

EY’s split fiasco will spark slow-motion decline

25 Apr 2023

The audit giant’s bean-counters are insulated against a rapid loss of business after its failed breakup. But EY’s more profitable consulting arm, including its prize tax unit, is less so. More reticent new clients and staff may see the Big Four become the Big Three-and-a-half.

J&J carves itself up at a discount

24 Apr 2023

The healthcare giant is floating part of its Listerine-to-Tylenol business with a mooted price of $40 bln, a 20% discount to rival Haleon. Litigation risk and an inhospitable market may leave J&J with a valuation wound in need of a Band-Aid. For investors, it’s worth the risk.