CAPITAL GOODS: TE Connectivity (TEL NR/NR/A-): Acquisition
Feb-12 12:14
TE has been A- rated since 2014; on the face of it this looks like an easily manageable acquisition without disturbing ratings. Leverage is at multi year lows.
- TE Connectivity has announced the acquisition of Richards Manufacturing from Oaktree for $2.3bn in cash. The target produces utility grid products.
- The deal should add around 0.6x turns of leverage pre synergies. Current adj. net leverage is 1.1x. It’s expected to generate annual FCF more than $500mn exceeding shareholder returns. It also has the option to adjust buybacks.
Want to read more?
Find more articles and bullets on these widgets:
Historical bullets
SONIA: SONIA FIX - 13/01/25
Jan-13 12:03
SONIA FIX - ICE/Bloomberg.
- TISONI1M 4.6693 -0.0168
- TISONI3M 4.5883 -0.0002
- TISONI6M 4.5441 0.0099
- TISONI1Y 4.5044 0.0271
FOREX: Analyst FX Views Amid Strengthening USD Trend
Jan-13 12:03
- *Goldman Sachs expect the dollar to rally by about 5% over the coming year on the realization of new tariffs and continued US outperformance. Even with this upgrade, GS still see the risks tilted towards more dollar strength, and are extending the target on their long USDSEK trade recommendation to 11.60, in line with our new 3m forecast, (revised stop to 11.00).
*ING think the defensive currencies of JPY & CHF can outperform on the crosses, while commodity and emerging currencies should take the brunt of the higher US rate story. Indeed, AUDUSD is not far from 0.60, where we could start to hear speculation over impending RBA intervention. - *SocGen: There is, in sum, a lot of US exceptionalism, and a lot of monetary policy divergence, already ‘in the price’. That, however, won’t stop the market overshooting. The current Bloomberg survey consensus forecast is for EURUSD to be at 1.04 at mid-year, could easily become a consensus forecast that we will be below parity.
- *BofA: Potentially higher trade uncertainty and relative monetary policy keep BofA cautious on EUR in the near term. But they are also getting concerned Euro area bearishness per se is getting "stretched", and some positions could get squeezed. EURJPY lower remains their preferred bearish EUR expression, while also favouring EURCAD downside, partly on their quant signals.
- *JP Morgan Tech: A break below 1.02 in EURUSD turns JPM's attention to the next support that includes the 1.009 Nov 2022 pattern breakout and then the 0.9909 Sep 2022 78.6% retrace.
- *MUFG: Even if there was a second consecutive month of softer US inflation it is difficult to see it triggering a significant dovish repricing of Fed rate hike expectations at the current juncture and reversal of US dollar strength given inflationary fears related to Trump’s policy agenda.
- *Rabobank: Heightened expectations of a February BoE rate cut would likely put the GBPUSD 1.20 level in view. Rabo have brought forward their forecast of GBP1.20 to a 1-to-3-month view (from 6 months).
EQUITIES: Estoxx Put Spread
Jan-13 11:58
SX5E (16th May) 4400/4300ps, bought for 11.3 and 11.4 in 6k.
