Services

Worldpay’s U.S. suitors will be hard to dismiss

4 Jul 2017

The UK payments processing company has received offers from JPMorgan and Vantiv. These are the sort of buyers that can beef up the American side of the business to deliver much-needed scale. Bids at current pricey levels are compelling in a sector that is ripe for such deals.

French laundry’s $2.6 bln UK raid leaves stains

18 May 2017

Berendsen has rejected a cash-and-share bid from French rival Elis that values the British group at a 36 pct premium. The approach looks opportunistic given the weak pound and the target’s battered share price. Even so, Elis will barely cover its cost of capital.

Chinese courier tagged as fragile by investors

18 May 2017

ZTO is an important player in a hot sector, Chinese e-commerce. And earnings are growing nearly 50 pct annually. Yet the shares have traded poorly since last year's New York flotation. Blame a pricey IPO, fierce competition, rising costs, and a shifting business model.

Indian IT torn between job-hungry world leaders

2 May 2017

Infosys plans to hire 10,000 Americans over two years. That makes sense. Outsourcers are expanding services that require more face-time with clients and U.S. visas may become harder to obtain. But good news for President Donald Trump is bad for Indian premier Narendra Modi.

Spotless bid leaves private equity mess Down Under

21 Mar 2017

The cleaning and catering firm is fielding a surprise $1 bln takeover bid. Long-suffering owners will be tempted to cash out at a 59 pct premium. But IPO buyers won't be made whole. So this will remain a cautionary tale for Australian investors wary of PE-backed flotations.

Takata’s future is full of moving parts

28 Feb 2017

The Japanese auto supplier has concluded a $1 bln U.S. plea deal over deadly airbag inflators. That opens the door to a sale, probably to a Chinese buyer. Yet unanswered questions span legal risks, deal structure, commercial prospects and the fate of existing shareholders.

Outside shareholders tell Tata to shape up

14 Dec 2016

Almost half of minority investors in Tata Consultancy Services voted against removing Cyrus Mistry as a director of the Indian conglomerate's crown jewel. The rebuke sends a clear message to patriarch Ratan Tata: either fix governance or take tighter control of group companies.

CVS-Omnicare portends lower doses of pharmacy M&A

21 May 2015

The drugstore giant’s $10 bln purchase of the pharma services firm gives it entrance to nursing homes and expands specialty medicine distribution. But the increasingly concentrated industry is already raising antitrust concerns. The era of frantic mergers may be nearing an end.

ISS deal clears path towards fresh listing

16 Aug 2012

Previous attempts to sell or float the Danish cleaning giant flopped. Now two blue-chip investors are taking 500 mln euros of equity in a private deal. ISS will use the proceeds to get rid of costly junk bonds. That means any future listing becomes a smaller, simpler task.

UK’s public sector has poor case for strikes

29 Jun 2011

Many state employees face a big increase in pension contributions but they get a better overall deal than peers in the private sector. The UK government is likely to face down the industrial action and it must because as yet the austerity hasn't got very far.

What beats Oxford and costs less than Harvard?

6 Jun 2011

A bunch of star UK professors has an answer: their new $29,400ayear artsonly college. Startup capital is coming from business angels and the academics themselves. It's the educational version of starting a boutique investment bank only with slightly less profit potential.

UK care home furore poses risks for private equity

3 Jun 2011

Four years after selling its stake in Southern Cross, Blackstone is being blamed for the care home operator's woes. The criticism looks wide of the mark. But it's a reminder that buyouts can have a long and toxic political legacy especially when public services are involved.

Groupon IPO another bet on profit-free sales

2 Jun 2011

The Internet coupon company's revenue trajectory looks like a moon shot started in late 2008, the firm racked up $645 mln in revenue in Q1, 15 times what it brought in a year earlier. But profit looks like a submarine voyage so far. It's another test of dotcom optimism.

Dollar Thrifty rivals drive too hard a bargain

9 May 2011

Hertz pulled a Uturn by returning with a hostile $2.2 bln bid to challenge the stalled Avis proposal. But when considering Dollar Thrifty's improved performance and deal synergies, the sweetened offer still looks too low. Either Avis or Hertz needs to step up with more money.

IPO hopefuls want to sit around OpenTable

7 Apr 2011

The backers of nearly every company to market with an Internet angle Zipcar, Pandora, Zillow are conjuring comparisons to the restaurant reservation site whose shares have quintupled since their debut. While similarities exist, none have OpenTable's moat or network effect.

Europe’s first big IPO of 2011 needs the hard sell

28 Feb 2011

ISS is looking to deleverage via a $2.4 bln float. The Danish outsourcing giant isn't the hottest growth story. Recent results are a mishmash of restructuring and bolton deals. But discount pricing plus bid speculation could help ISS relaunch Europe's IPO market with a bang.

Asian tech well placed for a recovering world

9 Feb 2011

From flat panels to semiconductors, Asia's hightech exporters stand to gain from a jobless recovery in the West. Their shares are already breaking from the pack. As investors shift from hedging dollar declines to betting on corporate investment, that trend should continue.

Upbeat UPS can’t be counted on as a bellwether

1 Feb 2011

The U.S. package delivery giant historically has foretold broader economic prospects. So its expectation of recordhigh profit in 2011 should be encouraging. But three dynamics are weakening its role as a GDP fortune teller: online spending, efficiency and international growth.

Easy money may allow PE to give ISS another spin

14 Dec 2010

Private equity firm Apax is mulling an $8.5 bln bid for the Danish cleaning group. That gives current owners EQT and Goldman an alternative exit to the planned IPO. A passtheparcel deal funded with boomtime levels of leverage may be hard for the sellers to resist.

Britain’s unkind cuts may help growth sprout

20 Oct 2010

The government has delivered the promised bloodbath, slashing spending by 81 billion pounds over five years. State employees and welfare dependents will be hit hard. The big risk is that private growth fails to take up the slack. But at least ministers have been decisive.