What HPE Can Look Forward to After Elliott Becomes Top-Five Investor
Hi, it's Crystal Tse in New York. Today we're breaking down some fresh activist news from Elliott. We also have a new European position from a newer activism fund and take a look at how KKR has been particularly active lately.
Today's top stories
Elliott strikes again, this time with a $1.5 billion-plus position in HPE, the software company that was split from HP in 2015.
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an hour ago
- CNBC
CNBC Daily Open: 'Good reports' from U.S.-China talks could push S&P 500 to new high, analysts say
Trade negotiators from the U.S. and China have met in London, and talks are expected to continue Tuesday, a source familiar with the situation told CNBC's Megan Casella. It seems that coaxing China to relax its rare earths export curbs is at the top of America's agenda, according to a CNBC interview with U.S. National Economic Council Director Kevin Hassett. If China's actions late last week — when it seemingly gave Western automakers concessions regarding those minerals — are any indication, Beijing could be willing to accede to the request. The world's second-biggest economy would demand reciprocity. On June 2, Beijing bristled at Washington's tighter grip on exports of chip design software to China. It's a good thing, then, that Washington also appears to be in a conciliatory mood. "Our expectation is that … immediately after the handshake, any export controls from the U.S. will be eased," Hassett said on CNBC's "Squawk Box." Indeed, Trump has reportedly authorized Treasury Secretary Scott Bessent's team to lift those curbs, according to The Wall Street Journal, and has described receiving "good reports" from the U.S. contingent. If the U.S.-China talks go well, there's a chance the S&P 500, only around 2% off its February high as of Tuesday morning Singapore time, could reach a new peak, noted the JPMorgan trading desk. That'd be something to cheer, of course. But it's slightly disappointing that the S&P could have continued scaling heights from February, or at least broken its closing high much earlier in the year, if not for truculent trade policy from the White House — which, as is evident from the meeting between U.S. and China, governments are still trying to undo. U.S.-China talks set to go into Day 2U.S. President Donald Trump's top trade officials met Chinese counterparts in London on Monday for talks aimed at resolving their trade dispute — particularly with regard to mineral exports. Discussions are set to continue Tuesday. Late last week, in an apparent olive branch, China seemed to offer U.S. and European auto giants something of a reprieve regarding its exports of rare earth elements. Markets inch up globallyU.S. stocks edged up Monday. The S&P 500 added 0.09%, the Dow Jones Industrial Average was mostly flat, and the Nasdaq Composite rose 0.31%. Asia-Pacific markets rose Tuesday. South Korea's Kospi index was up 0.38% at 1:30 p.m. Singapore time. Analysts from Macquarie Group say they think the country's stock market will rally and enter a bull market on the back of "expansionary fiscal policy" from the new government. A new 'Liquid Glass' look for Apple's iOSApple held its annual Worldwide Developers Conference keynote on Monday. At the event, the company announced a redesign to its iOS system called "Liquid Glass," a virtual glass look that was inspired by the Vision Pro and the most significant redesign of its operating system since 2013. Investors were underwhelmed by the announcements — which lacked developments on the AI front — and sent shares down 1.2%. UK in a 'Goldilocks' moment: Nvidia CEO "The U.K. is in a Goldilocks circumstance," Nvidia CEO Jensen Huang said Monday on a panel with British Prime Minister Keir Starmer and Investment Minister Poppy Gustafsson. "You can't do machine learning without a machine — and so the ability to build these AI supercomputers here in the U.K. will naturally attract more startups," Huang said, though he added that the country lacks homegrown AI infrastructure. [PRO] New record for S&P soon?The S&P 500 ticked higher on Monday and continues to chip away at the gap to a new record high. The broad-based index is just 2% below its record close set in February. Several events in the days ahead could prove to be the catalyst that vaults it over the top, according to the JPMorgan trading desk. China's homegrown coffee giants are brewing up a U.S. expansion Chinese beverage chains are redefining coffee culture in the country — and now they're trying to win over customers in the U.S. and beyond. Luckin Coffee, China's largest coffee chain, has expanded aggressively in China and overtaken Starbucks on the mainland, with more than twice as many outlets. After venturing into Singapore, Hong Kong and Malaysia, Luckin is set to take its biggest leap yet with plans to open a branch in lower Manhattan. "New York is probably culturally the best testing ground for an international brand to expand into, especially a Chinese one," said Bernstein senior analyst Danilo Gargiulo, citing the city's diversity and large base of young consumers. "But it's also the most saturated, one of the most competitive markets."
Yahoo
an hour ago
- Yahoo
Macquarie's $3.6 billion S. Korean gas firm draws interest from KKR, Brookfield and industry peers, sources say
By Kane Wu and Yantoultra Ngui HONG KONG/SINGAPORE (Reuters) -Potential bidders for Macquarie Asset Management's South Korean industrial gas firm DIG Airgas include investment firm KKR & Co, Brookfield Asset Management, and French gas supplier Air Liquide, in a deal that could fetch up to $3.6 billion, two sources with knowledge of the matter said. Macquarie has hired Goldman Sachs and JPMorgan to run the sale and is expecting non-binding bids this month, the sources said, declining to be named as the information is not public. DIG Airgas, South Korea's third-largest industrial gas producer, has also attracted interest from infrastructure funds including I Squared Capital and Stonepeak, and U.S.-based global gas and chemical firm Air Products, said the sources. The Seoul-headquartered company has about $170 million to $180 million in earnings before interest, taxes, depreciation, and amortisation (EBITDA), and Macquarie expects a sale to value the firm at 18-20 times core earnings, said one of the sources. DIG Airgas and Air Liquide did not immediately respond to requests for comment. Macquarie, JPMorgan, Goldman Sachs, KKR, Brookfield, I Squared Capital and Stonepeak declined to comment. Air Products declined to comment on the sale. "South Korea is a vital and growing market, and Air Products remains committed to growing its industrial gas business serving customers safely and reliably," its spokesperson said. Established in 1979, DIG Airgas produces industrial gases, electronic gases and gas equipment, according to its website. Macquarie bought the company, formerly known as Dausung Industrial Gases, from South Korean private equity firm MBK Partners for 2.5 trillion won ($1.85 billion) in 2019, local media reported at the time. ($1 = 1,351.8900 won)
Yahoo
an hour ago
- Yahoo
Thames Water lenders demand reprieve on fines in £17bn rescue deal
Thames Water's most senior lenders have demanded a reprieve on historical fines as part of its £17bn rescue package to save the struggling utility giant. A group of creditors led by aggressive US fund Elliot are asking Ofwat for a 'regulatory reset' to avoid hundreds of millions of pounds in fines and penalties as part of proposals to secure the company's future. A source close to the group said they were urging regulators 'not to reach back into history' and instead focus on Thames Water's turnaround efforts moving forward. The attempt to avoid penalties comes after Thames was hit with a record £122.7m fine last month for sewage leaks and breaching dividend rules. Fitch currently estimates that the water sector will face £900m in fines over the next five years. Private equity giant KKR last week abandoned its £4bn takeover bid for Thames, in part because of concerns about future fines. The decision has plunged the debt-laden business into a fresh crisis, amid concern it could run out of cash within months. Creditors have now put forward plans to inject £5bn worth of funding into Thames to help repair its balance sheet, including £3bn of direct investment and £2bn of debt expected to be raised by the group. If the new proposals go ahead, several billion pounds of debt will also be written off by creditors, valuing the total package of support at £17bn. The group claims the debt write-offs will deliver the largest financial loss ever suffered on an infrastructure investment in the UK. However, creditors are targeting a future stock market listing that will ensure a profitable exit. Plans put forward envision a 15-year turnaround effort that will include direct investment in wastewater, sewer capacity, storm overflows, metering and leak detection. A spokesman for the creditors said: 'These investors have the funding and experience required to deliver a transformation of the company's performance which is intended to mark a departure from past failings, creating a 'new' Thames Water that works effectively alongside Government, regulators, and customers to deliver for the environment and economic growth.' Sources close to the creditors said they were hoping to have their package approved by early autumn, with the hope of taking full control of Thames by the end of the year. The proposed rescue will also tee up a potential clear-out of Thames Water's management, as the creditors seek to enlist the relevant experts to improve its fortunes. The future position of Chris Weston, chief executive, is uncertain. An Ofwat spokesman said the regulator had 'been engaging regularly with Thames Water as it has progressed its process to raise additional equity'. The watchdog added it had begun a review of the submission from the creditors and was focused on assessing if the plans were realistic and deliverable. A Thames Water spokesman said: 'Our focus remains on a holistic and fundamental recapitalisation, delivering a market-led solution which includes targeting investment grade credit ratings and returning the company to a stable financial foundation. 'The Board will consider in the weeks ahead the full recapitalisation and turnaround plan submitted by our creditors. Constructive discussions with our many stakeholders continue.' A government spokesman said: 'The company is stable, and government is carefully monitoring the situation. We expect the company to continue to meet its obligations to both customers and the environment.' Thames Water has been embroiled in a row over bonuses paid to its most senior staff members despite its perilous finances. Last week, the Government announced new measures to ban six firms, including Thames Water, from handing bonus payments to their top executives after falling short of standards set by Ofwat. The company confirmed to the Environment, Food and Rural Affairs (EFRA) Committee that 21 members of its senior management team had received 'retention payments' of 50pc of their base salary. In a letter to the EFRA committee Sir Adrian Montague, the chairman of Thames, said the company had promised bonuses totalling £18.5m, to be paid between 30 April 2025 and June 2026. Thames said the additional payments had been paused but said it would not recoup the money already been paid out. Alistair Carmichael, the chair of the EFRA committee, said: 'As a committee, we are trying to seek clarity as to whether these payments fall within the remit of the Government's ban and will be recouped, given that they were not paid to the company's CEO or CFO and are termed by Thames Water as 'retention payments' rather than bonuses.' Thames Water said retention payments were 'commonplace in these types of deals', adding: 'None of the retention payments have been funded by customers.' Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
