Retail

Kingfisher not an easy buy for Home Depot

4 Dec 2003

The US home improvements giant's home market is saturating. And it certainly has the firepower to do a deal. But it might be hard to find enough synergies to justify paying Kingfisher's shareholders a premium.

Another LBO stuck with banks

2 Dec 2003

CSFB and two Italian banks lent E600m to the buyout of the world s second biggest spectacles group Safilo. But Safilo s performance has deteriorated and its credit rating has slipped. Plans to syndicate the loan have been put on the backburner.

Ahold takes few chances with rights

26 Nov 2003

The Dutch supermarket operator has sought as much money as possible and priced the rights at a steep discount. With Ahold's thirdquarter results disappointing, the underwriters would rather be safe than sorry.

Prada finds Italian banks to replace Deutsche

18 Nov 2003

Prada has been a headache for Deutsche. But if it gets out, it will lose the chance to run the books on the group s IPO when it happens. The Italian luxury group has been embroiled in complex negotiations with Deutsche Bank since it breached the covenants on a E700m loan.

Ahold recovery play continues

7 Nov 2003

The E2.5bn rights issue stablises its finances, potentially allowing the shares to continue their recovery from the brink of disaster. But it is not foolproof. Doubts remain over the Dutch retailer's ability to turn around its US foodservice unit.

Is Sainsbury a bid target?

7 Nov 2003

It isn't hard to see why rumours keep cropping up. For one, Philip Green has ruled Safeway out. And he is taking a lot of money out of Bhs. But potential suitors would have to make pretty brave assumptions to offer a premium over the current share price.

Ahold faces capital-raising barrier

5 Nov 2003

The Dutch supermarket operator is authorised to raise just E1.3bnE1.6bn of equity capital. But it apparently wants to raise more than E2bn. Ahold may not wait until its AGM to seek approval to raise this limit.

PPR loses Gucci’s De Sole and Ford

4 Nov 2003

Gucci may suffer without the CEO and creative soul of the luxury group. PPR committed to buying out Gucci s minorities at a hefty price now looks even more firmly on the hook.

CVC, TPG win war for Debenhams

23 Oct 2003

Rival bidder Permira dropped out of the race after CVC and TPG upped their offer to £1.7bn and secured a doubling of the break fee to £17m. Their move to take advantage of Permira's disarray has paid off.

Debs’ critics have to eat their words

23 Oct 2003

In retrospect, letting the retailer s management work with Permira and risking £6m to lure CVC into the race look like good moves. After all, Debenhams has snared a premium of over 40% and Permira has limped out the loser.

Amazon makes a profit – and it isn’t Christmas

22 Oct 2003

This is the first time the internet retailer has made money outside the bumper fourth quarter. To its credit, Amazon is no longer just a bundle of promises. But its valuation still looks pretty stretched.

Goldman Sachs cools on Debenhams bid

21 Oct 2003

The investment bank is apparently ready to drop out of the £1.8bn takeover on the grounds that the price for the UK retailer is too steep. That means Permira and Blackstone will have to rustle up more equity and take more risk if they want to stay in the race.

Debenhams holds up under pressure

14 Oct 2003

The British department store chain hasn t let either a bid war or the sweltering autumn derail its sales. That s just as well for its two potential buyers, which aren t leaving themselves much room for manoeuvre.

Peter Davis shouldn’t step up to Sainsbury chair

13 Oct 2003

There are big doubts over the strategy he has pursued as chief executive. If Davis becomes chairman, the new CEO may find it hard to think the unthinkable.

Sainsbury needs new ideas

10 Oct 2003

Even under extraordinarily favourable trading conditions, the supermarket group managed to report contracting likeforlike sales. Cost cuts are still coming through. But the chances that Sainsbury s strategy will pan out look ever slimmer.

M&S doesn’t inspire with confidence

7 Oct 2003

True, the UK retailer's sluggish clothing sales are no exception. The hot weather in September didn't do clothes shops any favours. But this is the third quarter in a row that M&S has failed to win market share. And its food business seems to have stalled a bit too.

Kookai parent on the block

3 Oct 2003

Vivarte, the E1.3bn French retail group, has been infected with some of the UK's retail M&A fever. Three potential buyers are circling it. Striking a deal may not be easy. But Vivarte's big shareholders, controlling nearly threequarters of the stock, are selling together.

What kind of auction is best for Debenhams?

2 Oct 2003

Plain sealed bids can extract the highest prices. But they also produce erratic results. In theory, there's less wrong with "formula" sealed bids where the winner pays the second price plus a margin. But open auctions are best.

Ahold refinancing looms large

2 Oct 2003

The Dutch supermarket operator's cash flow has held firm despite its accounting scandal. That makes a refinancing possible. But Ahold needs a growth story to boost the mix of equity it can raise versus debt. That will be a tougher nut to crack.

CVC courts Debenhams retail vote

1 Oct 2003

Under the bid structure it is adopting a scheme of arrangement retail shareholders have disproportionate power to derail the deal. The bidder is promising to carry on giving Debenhams shareholders discounts in its shops even after they tender their shares.