Restructuring

EDF shares’ power surge need not be a one-off

26 Nov 2020

The $44 bln state-owned utility has outperformed rivals in the last six months. A deal to secure higher nuclear prices would repair EDF’s main arm and enable CEO Jean-Bernard Levy to mull a renewable energy spinoff. That could boost the company’s value by over a half.

Singapore’s bid for insolvency tourism is at risk

8 Oct 2020

The city-state picked elements of both U.S. and UK bankruptcy law to boost its attractiveness for hosting corporate workouts. But the glacial resolution of water treatment giant Hyflux could discourage the creditors the city needs to support its campaign to become a genuine hub.

Daimler drives into faster lane with luxury refit

6 Oct 2020

The German automaker plans to cut costs by 20% at its Mercedes brand by 2025 and double sales of Maybach luxury cars. Hitting the goals could grow operating profit by nearly two-thirds. Even so, boss Ola Kaellenius may at best catch up with, rather than overtake, rival BMW.

Corona Capital: NYC

30 Sep 2020

Concise views on the pandemic’s corporate and financial fallout: New York City’s economic reboot comes up against a new outbreak.

Unibail’s self-bailout highlights property dilemma

17 Sep 2020

The shopping mall owner plans to raise $4 bln from investors and flog buildings worth nearly $5 bln. Bolstering its balance sheet protects its credit rating even if real estate values fall further. But the rescue depends on buyers and shareholders taking a less gloomy view.

Natixis split could create a European BlackRock

17 Sep 2020

The $8 bln French lender has suffered trading losses and blowouts at its asset management arm. New CEO Nicolas Namias needs to fix these and sever the investment bank. If he can, the funds business could be worth $11 bln and create a tasty potential partner for Amundi or UBS.

HSBC is firing on just one shaky cylinder

3 Aug 2020

The $90 bln lender’s investment bank is the only business that’s really growing, as the group racks up further bad-debt charges. CEO Noel Quinn is cutting costs fast. But with low interest rates crimping revenue, he might need to take a sharper knife to restructuring plans.

Credit Suisse takes right leaf out of rival’s book

30 Jul 2020

CEO Thomas Gottstein will cut costs and deploy more capital in wealth management. A slimmer investment bank would make the lender look more like UBS, which has a higher valuation. To close that gap faster, the new boss could hand savings to investors instead of reinvesting them.

Fast food franchise model has burnt edges

1 Jul 2020

NPC International, the U.S.’s largest Pizza Hut franchisee, filed for bankruptcy. An LBO flip, heated competition, and higher labor costs left it larded with debt. Parent company Yum appears resilient. But its restructuring portends sizzling problems in the franchise model.

Argentina drama comes down to politics and Pac-Man

22 Jun 2020

Talks between the serial defaulter and its largest creditor group have stalled. The remaining gap is not huge. But the government seems intent on scoring a political win and may deploy an unusual strategy to do it. Rising frustrations may make an agreement hard to reach.

Hertz shares may yet be roadworthy

18 Jun 2020

The bankrupt car-rental firm halted plans to sell stock after the SEC raised concerns. Equity is usually wiped out in Chapter 11. But if a re-emergent Hertz could rev its EBITDA up to, say, 60% of pre-pandemic levels, shareholders could stay along for the ride.

Unilever’s reverse reunification is win for FTSE

11 Jun 2020

Two years after UK shareholders rejected plans to create a single parent company in Rotterdam, the $143 bln Anglo-Dutch giant is unifying around a London listing. Investors in the Netherlands will struggle to throw up the same obstacles. The payoff is more M&A flexibility.

Argentina gets too cheeky with its creditors

8 Jun 2020

The serial defaulter wants to put its restructuring to a creditor vote, but leave room to decide later which votes count and which don’t. That would require a tweak to a common clause designed to make bond negotiations simpler. Emerging-market borrowers would be worse off for it.

Corona Capital: Saving/not spending, Pandemic Pig

29 May 2020

Concise views on the pandemic’s corporate and financial fallout: what to make of falling spending and the growing taste for meat alternatives.

UniCredit gets little reward for virus caution

6 May 2020

Covid-19 provisions and restructuring costs risk erasing the $16 bln Italian bank’s profit this year. CEO Jean Pierre Mustier is being more prudent than his peers, but that is not reflected in a lowly stock price. At least investors stand to gain more when the recovery comes.

Restructuring gurus face embarrassment of riches

1 May 2020

While fees from advising on M&A are drying up, helping companies navigate cash crunches and bankruptcy will be a big pandemic money-spinner, probably larger than past crises. Experts like Lazard don’t break out how much they make from such activities. That’s probably wise.

Treasury Wine’s posh-plonk split calls for a toast

9 Apr 2020

The $5 bln Australian winemaker could spin off its prized Penfolds business. That should deliver a higher valuation for the upmarket label and separate it from a ragbag of other brands that need restructuring. A coronavirus-induced glut of luxury grapes will eventually help, too.

Rolls-Royce secures extra viral flying time

6 Apr 2020

The aero engine maker axed its 2019 dividend and borrowed an extra 4 bln pounds. That buys it time to cope with grounded planes which are costing it 50 mln pounds a week. Its key market, long-haul flights, may be the last to recover. But Rolls should have enough cash in the tank.

Frère hands minorities two carrots and one stick

12 Mar 2020

GBL, the holding company of Belgium’s Frère and Canada’s Desmarais families, wants minorities to swap shares in its parent for shares in itself. The catch is the families get double voting rights. The appeal is the offer looks reasonable and the new structure could create value.

GAM does just enough to become a takeover target

20 Feb 2020

The Swiss asset manager saw profits fall 92% as a compliance scandal caused clients to pull funds. New CEO Peter Sanderson is pledging to cut costs and boost margins, but his targets look optimistic. Still, if Sanderson can steady the ship, GAM could look appealing to a buyer.