Restructuring

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.

HSBC’s big pair of shoes will be hard to fill

9 May 2024

The surprise departure of boss Noel Quinn, who dramatically reshaped the firm, puts the globe-straddling bank on the spot: appoint a steward of its strategy from within, or a new thinker from outside? In this Viewsroom podcast, Breakingviews columnists debate the $170 bln choice.

Spotify and Netflix hum different content tunes

4 Dec 2023

The music-streaming service is slashing its workforce by 17% to stem losses. Like Netflix, Spotify is beholden to onerous content costs. But Reed Hastings’ company is making shows and has higher gross margins. Spotify boss Daniel Ek’s ‘buy’ strategy hasn’t borne regular profit.

Capital Calls: Carlyle, Panasonic

22 Nov 2023

Concise views on global finance: The US private equity firm is making a decent return selling its stake in McDonald’s China back to the burger chain. The $25 bln Japanese conglomerate is offloading a chunk of its low-margin automotive unit and will consider a listing, too.

Microsoft will struggle to clean up ugly AI mess

20 Nov 2023

The software giant hired ousted OpenAI boss Sam Altman to run a new in-house artificial intelligence hub. It creates fresh confusion about strategy and brainpower, as CEO Satya Nadella scrambles to preserve his company’s $13 bln investment. There’s probably more upheaval to come.

Carlyle’s next takeover target should be itself

16 Nov 2023

Boss Harvey Schwartz lacks the small-investor firehose or balance-sheet heft of listed rivals that public investors crave. A muddled handover by the firm’s founders slowed progress. They could help now by joining with outside capital to buy the private equity giant out.

Endeavor’s envy could become contagious

7 Nov 2023

The $12 bln talent agency and WWE owner led by Hollywood mogul Ari Emanuel is eyeing options after billionaire François-Henri Pinault paid a rich price for peer CAA. Silver Lake, with 71% of the vote, wants to take it private. A stingy bid risks making minority investors jealous.

Vans owner VF is due a wardrobe refresh

6 Nov 2023

The $6 bln apparel empire’s debt soared as shares sank 40% under its ex-CEO, whose costly deal for Supreme ran counter to its modus operandi. New boss Bracken Darrell’s cost-cutting plan has promise. Selling the streetwear brand and investing in known hits is the best next step.

Tough dealmaking conditions dull Waystar’s shine

31 Oct 2023

The healthcare technology firm is angling for a stock-market listing on the back of rapid, acquisition-fueled growth. With a sale looking difficult and heavy debt bearing down, an IPO may be its private equity backers’ best option, but a mooted $8 bln valuation looks steep.

Smithfield US homecoming looks like pig in a poke

30 Oct 2023

China’s biggest pork firm may relist its US unit in New York. With $7.6 bln in market cap, investors don’t seem to attach much value to its 2013 buy. Moving West is a hedge against geopolitics, but a revaluation is unlikely if the Washington-Beijing relationship remains fraught.

Music fund’s flat deal calls for major key change

25 Oct 2023

Shareholders are pushing Hipgnosis, run by industry veteran Merck Mercuriadis, to overhaul its board and cancel a $440 mln asset sale involving Blackstone. Poor governance and a discount value add weight to their case. A new management team could do better by selling the company.