corporate finance in the news vlerick openday
TRANSCRIPT
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FINANCE IN THE NEWS
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STOCK MARKET EVOLUTION (EUROSTOXX 50)
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UNREST IN MIDDLE EAST
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Stock market reactionJanuary-February 2011
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IMPACT EARTHQUAKE JAPAN
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Hurricane Katarina (S&P 500), 2005
Tsunami (Sri Lanka All Share), 2004
Pearl Harbour (DJI), 1941
Earthquake Kobe (Nikkey 225), 1995
September 11 2001 (S&P 500)
Recent earthquake(Nikkey 225), 2011
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HUGE US DEBT BURDEN
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http://www.usdebtclock.org
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EUROPEAN PUBLIC DEBT LEVELS
Public debt 2011 (%GDP)
EU (27 ) 82.5
Belgium 98
Germany 81.2
Ireland 108.2
Greece 165.3
Spain 68.5
France 85.8
Italy 120.1
Luxembourg 18.2
Netherlands 65.2
Austria 72.2
Poland 56.3
Portugal 107.8
United Kingdom 85.7
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NEW VOCABULARY
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“Grexit”,“Spanic”,…
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BELGIAN GOVERNMENT BONDS 10Y
Source: Bloomberg11
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CONFIDENCE LEVELS REMAIN HISTORICALLY LOW
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RAISING EQUITY: IPOS
� Samsonite (Hong Kong): $1.25 bio
� Prada (Hong Kong): $2.14 bio
� Linkedin (NYSE): $405 mio
� Bankia (Madrid): € 3.1 bio
� Groupon (Nasdaq): $700 mio
� Zynga – Farm Ville (Nasdaq): $1 bio
� Manchester United (NYSE): $223 mio
� Japan Airlines (Tokyo): € 6.3 bio (second largest of 2012)!
� Workday (NYSE): $637 mio
� Coming up (?):
Mexx, Angry birds (Finnish Rovio Entertainment), Dropbox, Bpost
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FACEBOOK IPO
� Amount raised: $ 16 bio ($38 x 421 mio)
� Total Valuation: $104 bio
� Dual-class shares
� Zuckerberg has 18% ownership but 57% of voting rights
� At market value of $104 bio:
� 900 mio users � $115/user
� Revenues: $ 4.04 bio � P/S= 26
� Profit: $ 720 mio � P/E= 144
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FACEBOOK IPO
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RAISING DEBT: RECENT BOND ISSUES
� IBM (AA-): July 2012
� $1 bio (1.875% - 10 years)
� Walt Disney (A): February, 2012
� $1 bio (1.25% - 3 years)
� $0.4 bio (2.55% - 10 years)
� Dr Pepper (BBB): $500 mio (2.7% - 10 years)
� MGM Resorts International (B-): March, 2012
� $1 bio (7.75% - 10 years)
� Very succesful recent issues by Belgian companies (Roularta, ETEX, AB Inbev, Kinepolis, CFE, Arseus, Omega Pharma, Fluxis, DEME, Vandemoortele, Eandis, DEME, Delhaize,…)
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EVOLUTION INTEREST RATES
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EVOLUTION INFLATION
“Inflation is when you pay fifteen dollars for the ten-dollar haircut you used to get for five dollars when you had hair. “
Sam Ewing
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RECENT TRANSACTIONS
� Universal - EMI ($1.9 bio)
� Berkshire Hathaway/3G – Heinz ($23 bio)
� AB Inbev – Modelo ($20.1 bio)
� UPS - TNT Express ($7 bio)
� Dell buyout ($24.4 bio)
� Liberty Global – Virgin Media ($16 bio)
� American Airlines – US Airways (stock swap-combined market cap of $10 bio)
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€ 9.5
Source: Bloomberg
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SOME LOCALLY IMPORTANT TRANSACTIONS
� Immoweb: sold to Axel Springer (€127.5 mio)
�Lutosa: sold to McCain (€225 mio)
� Iris-Canon (€70 mio)
�Glacio - ijsboerke
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MISCELLANEOUS: HOW LONG TO BE A MILLIONAIRE?
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!
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