Top stories
Glencore offers hope
The success of Glencore’s US$10bn IPO has given European ECM bankers a lift after a tough year for new issues.The deal overcame slumping commodity prices and a weak IPO market to price in the middle of its range. The shares, however, fell through issue price on Friday, illustrating the scale of the challenges involved. Owen Wild reports.
Google grows up
Google has completed another step in its journey from start-up to blue chip and for the first time has put debt on its balance sheet, selling US$3bn of three, five and 10-year notes. It is the latest in a spate of rare or debut issues by large tech companies in the past year at levels that are about as close to zero as a corporate can get. Apple and Amazon might be next, reports Danielle Robinson.
Japan's Swiss shopping spree
Japanese M&A financing is set to return to 2008 levels, boosted by Japanese companies’ acquisitive interest in Swiss firms. AA rated drugmaker Takeda Pharmaceutical agreed its €9.6bn acquisition of Switzerland’s Nycomed last week and Toshiba has said that it will buy unlisted Swiss-based meter maker Landis+Gyr.
Shanghai international board nears launch
Foreign companies may soon be able to list on the Chinese mainland after stock market regulators last week said the country was “almost ready” to launch its much-awaited international board after almost a year of planning.
Buyers rush to Pertamina
Indonesian state-run energy firm Pertamina last week completed a blockbuster debut 10-year Global bond issue, taking full advantage of investor hunger for exposure to South-East Asia’s largest economy. Such was its success that it returned just four days later with a 30-year. Umesh Desai reports.
LinkedIn IPO in short supply
To describe the LinkedIn IPO in the context of too much demand and not enough supply is an understatement. Rampant investor interest led to the predictable outcome of a soaring aftermarket, with little consideration for the actual offer price. Institutions that managed to receive an allocation are not alone in counting their blessings.
Setting the standard
Santander UK last week sold the biggest truly public UK RMBS since the start of the financial crisis, printing £3.75bn-equivalent of bonds to eclipse previous master trust sales from competitors Lloyds and RBS. Around 60% of the deal was denominated in dollars, but the sheer size of the offer was a significant achievement. Anil Mayre reports.
Comment: Keith Mullin
Competition thrives in Tokyo
In Tokyo, where I recently visited local investment banks, joint ventures and foreign firms, the after-effects of the March earthquake and tsunami are foremost in everyone’s thoughts, but senior investment bank managers are beginning to focus more firmly on business opportunities, and coverage and origination teams have returned to building deal pipelines.
IFR on Reuters Insider
Analysis - IFR's Keith Mullin on options for Greek debt
IFR Editor-at-large Keith Mullin discusses possible exit strategies for the Greek debt crisis.
Up Front
Much to be proud of
The US$10bn IPO of Glencore will not reach the maximum of US$11bn after some of the greenshoe was used up in stabilisation activities at the tail-end of last week. However, the slightly soft debut should not be allowed to tarnish the achievement of simply getting the IPO to a successful close.
Controlling the message
What’s that thing called? You know, it’s like your brain, but better? Oh yes, Google. Given the company’s all-pervading influence, it was no surprise that its debut bond issue was a storming success – nor that, when you type “Google bond” into the search engine, the first result (of 53m) reads “Google’s sale of $3bn of bonds is widely and justifiably recognised as excellent for Google”.
Shanghai international board nears launch
Foreign companies may soon be able to list on the Chinese mainland after stock market regulators last week said the country was “almost ready” to launch its much-awaited international board after almost a year of planning.
Also In This Issue
- FX metamorphosis
- New UK watchdog bares its teeth
- Appetite for China high-yield in question
- Denmark makes tentative comeback
- Russia switches priorities
- Stalled deals back in the market
- New buyouts please
- Chrysler a hit, but bows to bank demands
- Strong support for FdR but diversification needed
- From bond to CB
- Hanley-Wood distress presents loan-to-own opportunity
- Sbarro pre-pack collapses
- Tepco goes from bad to worse
- Ecofin agrees on naked CDS approach
- Barclays launches UCITS-compliant vol product
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