Vodafone-Verizon fantasy M&A may stay just that
(The author is a Reuters Breakingviews columnist. The opinions expressed are his own)
By Quentin Webb
LONDON, Nov 7 (Reuters Breakingviews) – Fantasy M&A over Verizon Wireless may stay that way. The U.S. mobile phone giant’s ownership structure, split 55-45 between Verizon Communications (VZ.N: Quote, Profile, Research) and Britain’s Vodafone (VOD.L: Quote, Profile, Research), means it is a perennial target of merger speculation. But in fact the status quo looks pretty secure.
Random Penguin could fly
(The author is a Reuters Breakingviews columnist. The opinions expressed are his own)
By Quentin Webb
LONDON, Oct 26 (Reuters Breakingviews) – The Random Penguin could fly. Consolidation makes sense as publishers adapt to the digital era. Hence Bertelsmann and Pearson’s (PSON.L: Quote, Profile, Research) talks to combine their Random House and Penguin imprints.
Vivendi starts to take a T out of TMT
(The author is a Reuters Breakingviews columnist. The opinions expressed are his own)
By Quentin Webb
LONDON, Oct 16 (Reuters Breakingviews) – Vivendi (VIV.PA: Quote, Profile, Research) is taking a “T” out of TMT. The French group was built on the duff notion that telecoms, media and technology assets benefit from common ownership – even if this rarely brings meaningful cost savings or cross-selling opportunities. Now, after ousting Chief Executive Jean-Bernard Levy, nominal chairman and real boss Jean-Rene Fourtou seems keen to shed telecoms assets. But a slimmer Vivendi would still lack coherence.
Telefonica payouts may go on hold for longer
(The author is a Reuters Breakingviews columnist. The opinions expressed are his own)
By Quentin Webb
LONDON, July 26 (Reuters Breakingviews) – Telefonica (TEF.MC: Quote, Profile, Research) may need to put dividends on hold for longer. With Spain’s financial crisis worsening, the telecoms operator has sensibly scrapped the payout for 2012. The move is belated recognition that two previous dividend cuts were too timid, and means the group could now cope with being shut out of bond markets for all of this and next year. But a pledge to reinstate payouts for 2013 could prove too optimistic.
Man Group’s new resolve is welcome
(The author is a Reuters Breakingviews columnist. The opinions expressed are his own)
By Quentin Webb
LONDON, July 24 (Reuters Breakingviews) – Man Group (EMG.L: Quote, Profile, Research) is showing welcome resolve. The UK hedge-fund manager has already suffered as volatile markets dented risk appetite and wrong-footed its flagship AHL trend-following fund. With managed assets falling 10 percent in the first half to $52.7 billion, Man is preparing for more difficulty ahead. Shareholders have fared awfully – the stock has plummeted roughly 75 percent since the start of 2011. They should applaud the new determination. But the outlook remains murky.
Funding ties to Spain hurt Telefonica
(The author is a Reuters Breakingviews columnist. The opinions expressed are his own)
By Quentin Webb
LONDON, July 5 (Reuters Breakingviews) – Telefonica (TEF.MC: Quote, Profile, Research) may need to do more to counter its financial ties to Spain. The phone company’s credit ratings and funding costs are suffering as the country totters, even though three-quarters of sales are abroad.
Glenstrata wobble another blow for M&A bankers
By Quentin Webb
The author is a Reuters Breakingviews columnist. The opinions expressed are his own.
The collapse of Glencore-Xstrata would be a $130 million blow to mergers and acquisitions bankers. Nine banks would lose most of that fee pool, and league-table standing too, if investor pressure nixes the $26 billion Xstrata buyout. Even in a merger boom, that would hurt. But it’s particularly painful in a thin year for deal-making.
Split wouldn’t fix all News Corp’s shortcomings
By Quentin Webb
The author is a Reuters Breakingviews columnist. The opinions expressed are his own.
Spinning off News Corp’s scandal-hit publishing arm won’t solve all Rupert Murdoch’s problems. The media mogul is preparing to drop his long-held resistance to a break-up, according to a report in his own Wall Street Journal. Outside investors will approve on strategic and financial grounds. But with the Murdoch family retaining a firm grip on both parts, governance remains troublesome. That will make it hard to insulate News Corp’s broadcasting and movie operations from Britain’s phone-hacking furore.
London bankers get swift kick from Boots deal
(The author is a Reuters Breakingviews columnist. The opinions expressed are his own.)
By Quentin Webb
LONDON, June 20 (Reuters Breakingviews) – British pharmacy chain Alliance Boots [ABN.UL] has been a bitter pill for London bankers to swallow. KKR’s (KKR.N: Quote, Profile, Research) 12 billion pound leveraged buyout in 2007, then worth about $24 billion, turned nasty for big lenders who backed the deal. Adding insult to injury, none were hired to advise KKR or Boots on Tuesday’s $6.7 billion stake sale to U.S. peer Walgreen (WAG.N: Quote, Profile, Research). The timing couldn’t be worse.
Everything Everywhere LBO: someday, somehow?
(The author is a Reuters Breakingviews columnist. The opinions expressed are his own)
By Quentin Webb
LONDON, June 18 (Reuters Breakingviews) – It sounds more 2007 than 2012. But even if markets aren’t quite ready for an 8 billion pound ($12.5 billion) buyout of Everything Everywhere, it could make sense someday, somehow. Britain’s biggest mobile operator would be a rare investment opportunity, and the sector is beloved by both private equity firms and debt investors.
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