A highly levered money-mover First Data to go public – “Will the offer be sexy enough for investors?”

KKR & Co. LP; Market Cap (as of 03/10/2015): $7.85bn First Data Corporation; Market Cap (as of 03/10/2015): N.A.   Introduction On October 1st, 2015 the KKR-owned payment-processing company, First Data, announced the launch of its initial public offering, aiming to raise about $3.7bn. Apart from being the biggest US Read more…

Corn and wheat: a stable (cointegrating) affair

Given the recent market volatility, and the prolonged commodity rout, we decided to investigate whether some long-term relationships are still present on the market. And, of course, we looked for potential trades arising from the situation. We analysed different commodities on different time-frames (from 5-minute to weekly data). While noise Read more…

Trouble Flows Downstream: Energy Transfer Equity Follows Consolidation Trend

Williiams (WMB); market cap (as of 02/10/15): $27.63bn Energy Transfer Equity (ETE); market cap (as of 02/10/15): $21.96bn   Introduction On Monday September 28, Energy Transfer Equity (ETE) announced to acquire its rival The Williams Company Inc. (WMB) for c. $37.7bn (assuming $4.6bn of Williams’ debt). This transaction happened in Read more…

Teva Pharmaceuticals Heading to the Emerging Markets

Teva Pharmaceuticals Industries Ltd. (TEVA); market cap (as of 02/10/2015): $51.05bn.   Introduction Following a wave of consolidation in the healthcare industry, Teva Pharmaceuticals Industries Ltd. and Representaciones e Investigaciones Médicas, S.A. de C.V. (Rimsa) announced on October 1 that they have entered into a definitive agreement under which Teva Read more…