Sotheby’s Market Cap (as of 4/10/13): $ 3.46bn Daniel Loeb, CEO of the hedge fund Third Point LLC, announced on the 2nd of October that he has upped his stake in the arts auctioneering firm Sotheby’s to 9.3%, making him the firm’s biggest shareholder. Mr Loeb now holds 6.8m shares worth $350m. In response to
Since the crisis hit, interest rates have been kept artificially to the lowest level the world has ever seen. This launched what was called the ‘hunt for yield’. As many investors ran for high-yield junk bonds, risk-averse investors who were uncomfortable with that level of risk turned to quality stocks, i.e. high dividend paying stocks.
The main rationale for the trade is a possible positive surprise of the European economy by the end of the year. The periphery has performed well and the recent resolution of the Berlusconi’s issue has reduced the political risk of the area. Moreover, the economic performances outline the beginning of a recovery path: Italy PMI
Telefonica (Market Capitalization as of 27/09: €52.5bn) Telecom Italia (Market Capitalization as of 27/09: €10.6bn) Recent news regarding Telefonica’s interest in Telecom Italia (“TI”) came to no surprise. The deal fits into the recent revival of dealmaking within the TMT sector and culminates months of speculation surrounding Telecom Italia. M&A Revamp in Telecommunications If
Verizon Communications (Market Capitalization as of 27/05/13: $134.5bn) Vodafone (Market Capitalization as of 27/05/13: $169.2bn) In this follow up on our May 25th article(http://bsic.it/2013/05/25/vodafone-to-do-or-not-to-do-that-is-not-the-only-problem/) we analyze this year’s biggest M&A deal yet, the sale of Vodafone of its 45% stake in Verizon Wireless (henceforth VW) to Verizon Communications for $130bn. The blockbuster deal
BlackBerry Limited (Market capitalization as of 27/09/2013: $4.20bn) Fairfax Financial Holding Limited (Assets under Management as of 30/06: $2.5bn) On September 23rd, Fairfax Financial Holding Limited, a Canadian insurance and investment company, announced it was leading a group of investors to take over BlackBerry Limited, the Canadian smartphone company formerly known as Research In
When first appointed in 2006 by President Bush, Ben Bernanke probably didn’t expect his two terms as the Chairman of the Federal Reserve to be the most decisive ones of the past century. First denying an housing bubble, he had to face its real burst and the most threatening crisis since 1929. In 2008, he
After the huge operating loss and the consequent job-cutting of the second quarter, Blackberry received an offer to go private by Fairfax Financial Holdings Limited for $9 per share. Fairfax holds the 9.9% of Blackberry and is doing the due diligence; on November 4th the company will give more details. There are a lot of
AT&T Inc. (Market Capitalization as of 24/05/2013: $197.6bn) Verizon Communications Inc. (Market Capitalization as of 24/05/2013: $147.0bn) Vodafone Group PLC (Market Capitalization as of 24/05/2013: $144.7bn) Vodafone: M&A since 1985 The strong winds of market activity in the US telecom landscape have recently reignited a dormant flame in the relationship between Vodafone and Verizon
Type of deal: Joint Venture Danone (Market Capitalization as of 23/05/2013 €34.63bn) COFCO: state-owned food company in China China Mengniu Dairy Company Ltd.: (Market Capitalization as of 23/05/2013 HK$ 46.87bn, i.e. €4.68bn) On May 20th 2013, with a press release, Danone, the world leader in fresh dairy products, announced its third attempt to enter the
Yahoo! (Market Capitalization as of 25/05/13: $28.5bn) Tumblr (Market Capitalization: N/A) On May 20th, Yahoo! continued its aggressive strategy since Marissa Mayer took over as CEO by announcing the takeover of New York-based blogging platform Tumblr for $1.1bn, all in cash. Tumblr was founded in 2007 and has more than 108mln blogs and nearly
On May 3, 2013, more than thirteen years since its first close above 1500, the S&P 500 closed above 1600 for the first time, at 1,614.42. Last week it closed at 1,667,47, some say by the end of the summer it may reach 1700 points. There has been a lot of talking lately about the
Not so long ago, prices of oil, steel and gold (just to name a few) were thought to continue floating upwards forever as China entered its third decade of growing with breakneck speed. However, commodity prices have been deteriorating since 2008-2009, in line with sluggish growth and fall in demand in the developed world. This
Last week we suggested shorting three Japanese financials in light of the 10-years JGB price fall, going at the same time long Olympus Corp. and the Nikkei index, in case no more easing was announced on Tuesday night. Kuroda kept monetary policy on hold and so we entered the trade on Wednesday Tokyo early trading.