Restructuring

Suning bailout might model China Evergrande rescue

6 Jul 2021

A public-private consortium including Alibaba has thrown the debt-laden Chinese retailer a $1.4 bln lifeline. There are now lots of cooks in Suning’s kitchen, complicating a business turnaround. But it might be a trial run for restructuring its troubled ally Evergrande.

Capital Calls: U.S. jobs, Didi probe, Pharma LBO

2 Jul 2021

Concise views on global finance: The U.S. added 850,000 jobs in June but the recovery isn't happening everywhere. Meanwhile, Didi is hit with an investigation by a Chinese regulator days after its U.S. listing, and a pharma buyout by EQT and Goldman is a game of hot potato.

Credit Suisse impasse makes Deutsche’s look easy

17 Jun 2021

The German lender righted itself by shedding superfluous bits of investment banking. For the Swiss group, that would mean cutting units like U.S. credit trading, which wealth clients barely use. But those businesses probably generate good returns, making a turnaround more costly.

South Korean self-driving deal spins its wheels

10 Jun 2021

Car-parts maker Mando has the right general idea carving out its autonomous-tech unit into a new business. But the company is keeping full control and not raising any new money. That may yet change. For now, though, the partial overhaul offers shareholders a shabby ride.

Capital Calls: Turkish gas, Generali, Garuda

4 Jun 2021

Concise views on global finance: President Erdogan’s “good news” on hydrocarbons smells off; the Italian insurer’s 1.5 bln euro bid for NN Group’s asset management unit may trigger a shootout; the Indonesian flag carrier’s long struggle to avoid bankruptcy is coming to a head.

Rusal’s upside from clean break only goes so far

19 May 2021

The $6 bln aluminium maker’s plan to demerge carbon-heavy assets could unlock value if ESG-focused investors value the other parts more highly. But the greener entity will still have 28% of polluter Norilsk Nickel and the risk of U.S. sanctions snapback. That might cap any gains.

Capital Calls: Amazon EU tax win, Scooter SPAC

21 Jan 2022

Concise views on global finance: Jeff Bezos’s e-commerce giant wins a victory over the European Union, but the battle has already moved on; Bird’s $2.3 billion price tag is relatively high but less pie-in-the-sky than some recent deals.

Beijing fiddles while Huarong burns

16 Apr 2021

A slow implosion of the state-owned bad debt manager is spooking foreign funds holding $21 bln of its dollar bonds, and beyond. There has been no official signal as the market convulses. Bail Huarong out or let it default; China erodes investor trust leaving it dangling this way.

Virgin Active gives landlords a post-virus sweat

14 Apr 2021

The pandemic-hit gym group founded by Richard Branson wants lower rents. It’s using a new restructuring tool to force the issue with support from other creditors. Faced with a wave of copycats, bruised property owners’ only option is to be more selective about future tenants.

Credit Suisse’s spring clean has barely started

6 Apr 2021

Risk chief Lara Warner and investment bank boss Brian Chin are leaving after the Swiss bank unveiled a $4.7 bln hit from Archegos’ collapse. New board investigations should include deeper soul-searching over recent scandals. Restructuring and business disposals may be necessary.

Aussie power giant spins into climate quandary

30 Mar 2021

AGL Energy hopes running its generation and retail units as separate businesses will lift its slumping stock. But CEO Brett Redman’s pitch is short on financial detail, envisions himself as boss of both parts, and leaves the $5 bln company heavily reliant on fossil fuels.

Messy Singapore deal strains to lay new foundation

24 Mar 2021

CapitaLand wants to sell its property development arm to backer Temasek and list the rest. Even if investors are willing to embrace a carve-up of the $15 bln company, achieving a desired valuation closer to peers such as Lendlease will be hard in a yield-focused market.

Capital Calls: Elon Musk, AstraZeneca

15 Mar 2021

Concise views on global finance in the Covid-19 era: The electric-vehicle maker’s jocular new title of “Technoking of Tesla” tests the theory that deeds matter more than words; fears over the drugmaker’s vaccine risk further delaying the re-opening of Europe’s economy.

Capital Calls: T-Mobile US, Ulta Beauty

12 Mar 2021

Concise views on global finance in the Covid-19 era: The U.S. telecom is benefiting from its merger with SoftBank’s Sprint; the U.S. cosmetics retailer revealed a tidy succession plan, but its business still faces lingering pandemic side-effects.

Stellantis finds limits of cost-cutting

3 Mar 2021

The 43 bln euro Franco-Italian carmaker’s shares rose after its maiden results following January’s merger. Savings bolster CEO Carlos Tavares’ ambitious profitability goal. To raise the group’s lowly valuation, he needs to expand in Asia and have a bolder electric vehicle plan.

Capital Calls: Petrobras

19 Feb 2021

Concise views on global finance in the Covid-19 era: Brazil's president becomes Petrobras' activist.

Capital Calls: Walmart, Buffett/Chevron

18 Feb 2021

Concise views on global finance in the Covid-19 era: Walmart gets an unfair ding from investors over its latest earnings report; and the Sage of Omaha takes another bet on the profit still to be made from fossil fuels.

Engie’s timid breakup needs green boost

11 Feb 2021

The $39 bln French utility’s shares have lagged peers for years. New CEO Catherine MacGregor is simplifying the rambling group by selling part of its services unit. Spinning off the renewables division could give the stock a roughly 50% bump, and enable more climate-friendly M&A.

Li Ka-shing buybacks would rebuild value

6 Jan 2021

Cash is rolling in from $28 bln CK Hutchison’s restructuring of European and Canadian assets. The Hong Kong billionaire’s ports-to-pharmacies group plans to repurchase stock. With deal-making curtailed by geopolitics, shareholders will appreciate the gesture.

LG missteps into chaebol-challenge spotlight

16 Dec 2020

A pushy investor is unhappy with a spinoff plan by the South Korean empire’s $12 bln holding company. The carve-up’s financial benefits are hard to identify. That brings unwanted attention to a pioneer in corporate restructuring just as the country angles for stricter measures.