Are distressed companies really worthless?

In this article, we introduce distressed debt securities. Then, we investigate what are the problems of valuing a company in financial distress and how we can address those problems. Finally, we present some investment strategies that can be applied when a company is financially distressed. Overview Distressed companies are companies that are unable to meet, […]

Summer Deals Recap

As summer comes to an end, BSIC presents its top picks of the season’s most interesting deals. We saw several key themes throughout the summer, notably, a wave of megadeals, with 13 deals over €5bn announced this summer compared with only 2 in the same season last year. Worldwide deal activity was bolstered by an […]

A Five-calories Drink a Day Keeps the Doctor Away…or not? Dr Pepper Snapple Acquires Bai Brands for $1.7bn

Dr Pepper Snapple Group, Inc. (NYSE: DPS) — market cap as of 24/11/2016: $16.031bn Introduction On November 22, 2016, Dr Pepper Snapple Group Inc., an American beverage producer, agreed to acquire Bai Brands, another American beverage producer focused on antioxidant beverages, for $1.7bn. The deal emerges as traditional customers sway away from sugary drinks and […]

Cutrale-Safra going bananas for Chiquita

Chiquita Brands International; market cap (as of 31/10/2014): $676.30mln On Monday October 27th Chiquita Brands International (CQB.N) finally agreed to be acquired for $682mln by Cutrale Group and Safra Group. Therefore, shareholders will receive $14.50 for each of their shares in cash. The price offered is 44% more than Chiquita’s closing share price on 08th […]

Splitting the behemoth: HP to join the separation trend

HP; market cap (as of 10/10/2014): $62.52bn On October 6, 2014 the Hewlett-Packard Company (HP) released its plans to split by end of October 2015 into two potentially Fortune 50 companies: business-oriented HP Enterprise and personal systems-oriented HP Inc. The split is intended to be tax-free for the current shareholders who as a result will […]

Heineken says NO to the next beer

Anheuser-Busch InBev NV, Market Cap (as of 19/09/2014): Market Cap €143bn SABMiller PLC, Market Cap (as of 19/09/2014): Market Cap €73bn Heineken NV, Market Cap (as of 19/09/2014): Market €34bn Beer brewing was historically a local business, with only few brands having a global presence in the estimated $600bn market. Since 1998, when the top […]

BSIC Special Report: Twitter IPO

Months of rumours have finally come to an end: Twitter is joining the ranks of listed internet companies with an IPO in Q4 2013. The market is hyped up and ready to go, but is this offering destined for ridicule as Facebook’s was? Correctly valuing Twitter is of paramount importance if we want to shed […]

BSIC SPRING INTAKE

BSIC is currently recruiting! See the “Join us” section for all the relevant details. Facebook event […]