Private Equity

Blackstone’s Italian gambit can stay on the road

14 Apr 2022

Looking to deter a rival bid, the buyout group has teamed up with the Benettons to take infrastructure group Atlantia private. The 19 bln euro equity value looks steep. Yet inflation protection from concession assets and cash from an upcoming sale justifies the swoop.

Capital Calls: Thoma Bravo plays favorite PE tune

13 Apr 2022

Concise views on global finance: The private equity firm sells cybersecurity company Barracuda Networks to KKR.

EU bank dumpster divers still have rich pickings

12 Apr 2022

A big investor, probably Capital Group, sold 1.8 bln euros of Deutsche Bank and Commerzbank shares. Betting on the basket cases has worked well since 2020. France’s SocGen and Italy’s UniCredit may offer similar rewards now, though shareholders may have to work a little harder.

KKR red card is a Telecom Italia own goal

8 Apr 2022

After months of fumbling, the Italian operator hung up on the U.S. fund’s 10.8 bln euro takeover approach. Stiff opposition in Italy had dampened KKR’s interest. For CEO Pietro Labriola, revamping the hard-pressed group under intense market scrutiny will be twice as hard.

Pérez vs. Benettons will be an uphill struggle

7 Apr 2022

ACS, run by Spanish magnate Florentino Pérez, has sided with Brookfield and GIP to buy road group Atlantia, 33%-owned by the Italian tycoons. A takeover could cost 20 bln euros net of debt, but a looming 8 bln euro asset sale would help. Winning over the Benettons will be harder.

Bank bidders solve tricky German M&A puzzle

5 Apr 2022

Advent and Centerbridge revived their $2 bln Aareal deal by offering a 12% bump and letting rebel shareholders stay invested. It should work, defying the trend of failed German takeovers. The lesson is that debt-free deals with a flexible buyer stand the best chance of success.

Capital Calls: U.S. truck drivers go missing

4 Apr 2022

Concise views on global finance: Bonuses and concessions from Washington aren't enough to fill the industry's empty cabs.

Private equity can pull away from Wall Street

1 Apr 2022

Sponsors like Thoma Bravo are perfecting a playbook that demotes banks by tapping direct lenders for financing and sourcing transactions directly, bypassing auctions. Banks make a chunk of their annual fees from the buyout business. This threatens that pot.

CVC throws Telecom Italia a tricky lifeline

29 Mar 2022

The buyout firm wants to buy 49% of the troubled telco’s corporate business, which it values at 6 bln euros. A deal would help CEO Pietro Labriola trim debt. But it could complicate KKR’s push to take the group private. More crossed wires is the last thing shareholders need.

Hong Kong-based PAG raises private equity IPO bar

29 Mar 2022

At a mooted $15 bln, the Blackstone-backed buyout shop would be valued at 30% of managed assets. Although a rich premium to U.S. peers like TPG, it’d be on par with recent deals involving Asian rivals. The test is if public-market investors assess the growth and mix the same way.

Petrol forecourts can shift to fuel-free future

28 Mar 2022

Despite a push to phase out gas-guzzlers, Britain’s Motor Fuel Group may fetch 5 bln pounds. Selling pricey coffee to drivers charging electric cars offers relatively zippy returns. But beside the threat from home chargers, retailers are muscling in with the same idea.

The Covid effect: Sheds, Hong Kong, Conferences

24 Mar 2022

The pandemic continues to shape business and policy around the world. In this Viewsroom podcast, Breakingviews columnists debate a possible 21 bln euro bid for city-centre warehouses, the relaxing of restrictions in Hong Kong, and a recent conflab of M&A advisers in New Orleans.

Private credit funds take page from start-up book

23 Mar 2022

Lending to deals like Thoma Bravo’s $11 bln purchase of Anaplan – which has no operating cash flow – is toxic for big banks. But private credit funds are signing up. They may be trying to disrupt lending markets while gaining clients. That sounds a lot like a risky tech model.

Prologis has to go extra mile for Blackstone sheds

22 Mar 2022

The property giant offered over $23 bln for Mileway, which owns European warehouses. Sky-high valuations and frenetic M&A imply it’s a good time for Steve Schwarzman’s group to cash out. But limited city space and booming online deliveries mean asset values can keep rising.

Anaplan deal hints at floor under cloud valuations

21 Mar 2022

The business software company is selling to Thoma Bravo for $10 bln. Recent market carnage had trashed once high-flying cloud stocks - Anaplan's by a third or more. If cash-rich private equity firms start picking up companies in the sector, it could stem the decline.

Nielsen bid rejection deserves bad viewer response

21 Mar 2022

The video-ratings group dismissed a $9 billion bid from Elliott and others, a move that sent its shares down sharply. It's OK to hold out for a higher price, and that could be the endgame. But the standalone case for Nielsen is too optimistic, and too late, to be convincing.

Capital Calls: Tencent, Ted Baker

18 Mar 2022

Concise views on global finance: The Chinese web giant may have to separate its mobile payments business from its popular social media arm; U.S. buyout fund Sycamore can afford to be generous towards the hard-pressed UK fashion group’s shareholders.

M&A bankers, like cockroaches, survive everything

17 Mar 2022

Two years ago, top consiglieri convened in New Orleans days before global lockdown. The pandemic in the end didn’t dent business. This week’s convention, the first in person since then, comes with the backdrop of war in Europe. Bankers still have ways to keep the deals coming.

Toshiba board rebel mainly helps governance cause

17 Mar 2022

Director and ex-hedgie Raymond Zage will vote for a proposal urging the company to consider buyout bids and share info with investors. He already backed a breakup, opposed by many funds. Even if offers underwhelm, listening to shareholders and opening up would be a good step.

EQT makes savvy $7 bln play for buyout big leagues

16 Mar 2022

The Swedish group is acquiring Baring Private Equity Asia. The price looks reasonable. And by paying mostly in stock, CEO Christian Sinding is putting his share-price premium to good use. EQT will finally have a global presence, helping it go toe-to-toe with U.S. giants like KKR.