Month: June 2011

Italian luxury fashion house Prada is looking to raise between $2bn- $2.6bn in a Hong Kong IPO, ahead of its June 24 listing on the Hong Kong stock exchange.

The Milan –based company anticipates selling 423.28 million shares at an indicative cost range of between $4.69 and $6.17 each.

Prada in a Hong Kong filing on Friday said it expects its half year profit to increase by 46 percent due to it Asia expansion.

The company plans to use the IPO profits to repay bank loans, supplement working capital, expand its sales network and increase shop floor space.

Chicago-based Groupon, the daily deal website which last year rejected a $6bn buyout offer from Google, has filed with the SEC to raise $750m in an initial public offering, the company said on Friday.
 
The IPO will be managed jointly by Morgan Stanley, Credit Suisse and Goldman Sachs, according to details of the filing.
 
The filing specified that shares would trade under the symbol ‘GRPN’ but did not detail how many shares are to be sold and at what price range.
 
The company, which offers discount vouchers for services and products such as restaurant meals, travel, spa treatments and numerous other services, saw sales rocket to $644.7m in Q1 compared to $44.2m a year earlier.

Brazil has welcomed the candidacy of Agustin Carsten, Mexico’s central bank chief, in his pursuit to become the next head of the Washington-based IMF but said it required more time to decide which candidate to support.
 
Brazil’s Finance Minister Guido Mantega however noted on Thursday: “Emerging economies are under-represented in the fund’s leadership, especially Latin American countries.”
 
He added: “Being born in Europe or in the US does not make the candidate the most qualified for the position. According to Mantega candidates’ dedication to reforming the IMF is more significant than their place of birth.
 
Although Brazil has previously shown to be one of the key countries to appeal for more say for emerging markets in global economic affairs, government sources believe Brazil may be favouring Lagarde because of her influence within the IMF and her ability to push through reforms.
 
Carstens, who is currently in Brazil campaigning for backing for his candidacy against French Finance Minister Christine Lagarde, has defended Brazil’s response, saying emerging countries didn’t have enough time to co-ordinate.
 
Lagarde, who began lobbying for support among the emerging markets on Monday, promised during her visit to Brasilia to ‘universalise’ the IMF.
 
Although she is considered the favourite, sources say it is vital for her candidacy to get Brazil’s backing as it is the region’s largest economy. 

French power equipment specialist Schneider Electric has signed an agreement to acquire Spanish software firm Telvent GIT for €1.4bn ($2bn), the company said on Wednesday.

Schneider, the world’s largest producer of low and medium voltage equipment, hopes to reinforce its solution capability for the smart grid electricity software according to a company statement.

Telvent’s shareholders will receive $40 a share under the terms of the offer, which is 16 percent higher than the company’s closing price on Tuesday. The tender offer is expected to start mid-June and close in Q3.

Schneider’s president and CEO, Jean-Pascal Tricoire, said: “The acquisition is in line with our ambition to become a complete solution provider for our customers. Telvent offers software capability that complements and integrates with Schneider Electric’s offering.  It also brings complementary customer base and geographical coverage.”