Restructuring

Elliott has a point on BP’s ballooning costs

29 Apr 2025

The activist investor wants the $76 bln UK oil major to cut costs by another $5 bln a year by 2027. BP is pushing back, but its corporate expenses have risen 30% since 2019, while those at bigger peer Shell have fallen. That makes it harder to resist calls for deeper cuts.

Seven & i’s latest revamp leaves stale aftertaste

7 Mar 2025

Incoming boss Stephen Dacus is keeping plans to sell the $37 bln firm’s superstores and list its US business. What’s new is using the proceeds to buy back $13 bln of stock over five years. That’s no strategy for growth or unlocking value. A sale to Couche-Tard still looks best.

Altice’s Patrick Drahi limps on from debt disaster

26 Feb 2025

The tycoon struck a deal to slash his French telco’s 21 bln euro debt pile. While impairing bondholders, the agreement leaves Drahi in control and with some value, reversing the capital structure. The risk is that lenders demand even more to lend to the rest of his global empire.

Nissan offers suitors daunting risk-reward trade

24 Feb 2025

KKR has joined Foxconn in mulling an investment, and some Japanese bigwigs may want to involve Tesla. CEO Makoto Uchida’s turnaround plan could roughly triple the carmaker’s valuation. But it means cutting sticky costs, halting sliding sales and hiking prices. It’s a tall order.

New HSBC CEO leaves growth question on backburner

19 Feb 2025

Georges Elhedery announced $1.5 bln of cost cuts that should help keep the $200 bln bank fairly lean. The bigger problem is HSBC’s revenue, which risks stagnating as rivals expand. The implication is that growth is out of the new CEO’s hands, making a valuation boost unlikely.

BP’s overhaul can start with a new Chair

14 Feb 2025

Activist Elliott Investment Management now has 5% of the $93 bln UK group and wants to sell off its green assets. That might make sense. But investors are more likely to back structural reform if it's overseen by a chair other than current incumbent Helge Lund.

Crabs on a plane pinch budget US airline deal

12 Feb 2025

Spirit rejected rival Frontier’s latest takeover bid and shared synergies worth some $5 bln in favor of a post-bankruptcy standalone future. The suitor, previously thwarted by shareholders, is now at odds with creditors. Crustacean mentality has sabotaged the sanest outcome.

Warner Bros Discovery re-enters the spin zone

12 Dec 2024

Boss David Zaslav engorged his media empire by merging with a rival’s broken-off business. Corporate restructuring sets him up to reverse the trick. A full roster of bank advisers and moves by peers imply dying TV networks are due a reshuffle. Doing so could add $20 bln of value.

Nissan and Honda would drive better together

28 Nov 2024

An emergency overhaul won’t lift profitability much at Renault’s $9 bln alliance partner. And $40 bln Honda’s autos unit is subpar. Merging Japan’s second- and third-largest carmakers would give scope to cut costs, boost earnings and invest more efficiently in EVs and other tech.

One country, two China property crises for tycoons

20 Nov 2024

On the mainland, developers are being forced by Beijing to deliver presold homes. In Hong Kong, developers may chase down buyers who cancel purchases. Mega-rich families of the finance hub can keep their property flagships in decent shape while their onshore peers rot.

China developers’ survival fight gets litmus test

15 Nov 2024

Sunac has given investors four options for restructuring $2 bln of onshore bonds, including an 82% haircut and a debt-for-equity swap. How they vote will reveal their views on both the $3.1 bln firm’s chances of survival and Beijing’s attempts to end the property slump.

Schneider fails first test of CEO succession plan

4 Nov 2024

The French electric equipment maker ousted Chief Executive Peter Herweck after finding him slow in the execution of his strategy. The $150 bln group needs to be fast in hot markets like data centres. But firing its boss after 18 months shows its decision-making is also wanting.

Founder’s syndrome gets a new enabler

25 Oct 2024

Shares in $25 bln WiseTech soared 14% after the software firm dropped its scandal-hit CEO Richard White only to keep him on as "founder and founding CEO". Faced with a classic key-man risk problem, the board chose a farcical workaround. It sets them up poorly for the long run.

HSBC cost cuts expose new CEO’s bigger problem

10 Oct 2024

Georges Elhedery may slash $300 mln of expenses in a plan to combine investment and commercial banking, the FT says. Yet the savings are modest and a new super-division may have downsides. Investors will be more interested in how Elhedery keeps the top line growing as rates fall.

Blackstone polishes its diamond bet to perfection

25 Sep 2024

The buyout shop may target a $4 bln valuation for rock certifier IGI, seven times what it paid last year. Restructuring the Belgium-founded business into an India-led entity and floating it in Mumbai where valuations sparkle helps. At least the company's dressing-up makes sense.

Thames Water fix is a stretch, but possible

6 Aug 2024

The indebted UK utility’s struggles to raise the 3 bln pounds it needs imply impending doom. But while the details are tricky, there remains scope for the UK to offer guarantees or find a way to haircut creditors. A new investor armed with these could yet make a decent return.

Posh UK wealth group flaunts takeover credentials

30 Jul 2024

St. James’s Place is drawing in new client money and cutting costs. That eases concerns that well-heeled Brits would abandon its high-priced service after a recent fee overhaul. Even after a 25% stock pop, the 3.8 bln pound group is cheap. A takeover or buyout looks plausible.

WH Group’s US spinoff can undo hamfisted bet

23 Jul 2024

The China-based pork producer aims to relist the Smithfield unit it bought for $7.1 bln over a decade ago. Trade wars and swine fever have dashed hopes of integrating US and mainland operations. By the same token, Smithfield's Wall Street return can unlock value for its parent.

Olympic Games can withstand Atos farce

26 Jun 2024

The French firm managing the Paris sporting event’s IT backbone is close to bankruptcy. It may find 800 mln euros of short-term financing from President Macron’s government and loans even after creditors ditched restructuring talks. But its future after the Games is less certain.

China property bailout stars align for Vanke

31 May 2024

The country's biggest homebuilder is close to borrowing up to $10 bln. That'd effectively eliminate default risk. Being part-owned by Shenzhen helps, as does having some decent assets to entice lenders. The clincher is Beijing's heightened will to put a floor under house prices.