|Bid||15.71 x 800|
|Ask||15.72 x 900|
|Day's Range||15.56 - 15.81|
|52 Week Range||12.75 - 23.11|
|Beta (5Y Monthly)||1.47|
|PE Ratio (TTM)||29.95|
|Earnings Date||Nov 03, 2020 - Nov 09, 2020|
|Forward Dividend & Yield||N/A (N/A)|
|Ex-Dividend Date||Jun 27, 2007|
|1y Target Est||22.00|
(Bloomberg) -- Dutch phone company Royal KPN NV is facing another potential takeover attempt, and its new suitor faces more hurdles than its predecessors.EQT AB, the European private equity firm, is considering a takeover of KPN in what would be its largest-ever acquisition, Bloomberg reported Friday, citing people familiar with the matter. Shares rose as much as 8.4% in early trading on Monday, the most since March.KPN has long been a target. Less than two years ago rival investment firm Brookfield Asset Management Inc. considered its own approach. Canada’s largest alternative asset manager held talks with Dutch pension funds PGGM and APG Groep NV, but a bid never materialized.In 2013, billionaire Carlos Slim’s America Movil SAB attempted to acquire KPN for $9.7 billion. The bid stalled amid criticism of America Movil for not reaching an agreement with KPN’s management before taking its offer to the market.New LawTo be successful, EQT will not only have to get KPN’s management on board and defeat a takeover defense available to Dutch companies known as a stichting -- it will also have to navigate a new law written to further strengthen the deal defenses of the nation’s businesses, which was approved by both houses of Parliament earlier this year.“The Dutch government has a say in any deal, as KPN is a company with a high level of national interest,” said Konrad Zomer, analyst at ABN Amro. The combined powers of the stichting and the law “can block many deals. A takeover attempt for KPN won’t be straightforward.”The buyout firm is in the early stages of discussing the feasibility of a deal with potential advisers and there’s no certainty it’ll lead to a bid, said the people, who asked not to be identified because deliberations are private. The firm could try to win over the Dutch target by touting its experience with telecom and infrastructure assets as well as its Nordic roots, where good corporate citizenship is prized.Companies in the Netherlands are able to deter unwanted approaches by deploying independent shareholder foundations as a defense. Recent examples include Akzo Nobel NV, Mylan NV and Stork NV, which used preference shares to fend off efforts by hedge funds to fire the board and sell off units.KPN, whose foundation was created after the Dutch government sold down its stake in 1994, is one of the most notable examples of this poison-pill defense.In an attempt to control negotiations with America Movil, KPN’s foundation used preference shares to temporarily gain about half of the company’s stock. Though America Movil, the largest shareholder, had obtained approval from the Dutch financial regulator, it eventually withdrew its offer after concluding it couldn’t acquire enough stock to complete the deal.EQT will also have to contend with a law that allows the Dutch government to block telecom deals on national security grounds. This has become a more delicate issue than when Brookfield made its approach, given U.S. lobbying of European governments to ban Chinese telecom equipment maker Huawei Technologies Co. from local networks.The Dutch government has not implemented a ban, and KPN is still working with Huawei. However, it is choosing a Western vendor for its more sensitive core network.Before Stockholm-based EQT has to face foundations and politicians, a price needs to be agreed. Shares of KPN have fallen 15% in Amsterdam trading this year and are near an all-time low, giving the company a market value of about 9.4 billion euros ($11.1 billion). That’s just under America Movil’s bid offer seven years ago.“I think the KPN shares are undervalued and I can thus understand interest from private equity,” said Zomer. “Without any takeover premium I think the company is already worth 40-50% more than the current market value.”Any bid would be a test for Chief Executive Officer Joost Farwerck, who has been in role for only a year, and has been struggling with a weak consumer unit and the pandemic.Investment firm EQT’s interest in KPN, reported by Bloomberg News, would require a sizable premium for a successful bid, as well as an accord with the board and government on the level of infrastructure investments and employment. This could rule out an intervention by the KPN Foundation, which has an effective poison pill mechanism, and may tempt America Movil to sell its 16% stake, which was built at a high cost of 2.54 euros a share.Erhan Gurses, analyst, Bloomberg IntelligenceEQT does have plenty of experience in telecom deals. It joined with Digital Colony Partners to acquire fiber network owner Zayo Group Holdings Inc. in an $8 billion deal completed in March, and invested in Dutch telecom provider Delta Fiber, German broadband provider Deutsche Glasfaser and Maltese operator Melita.But other analysts are not convinced EQT can overcome the problems facing a Dutch telecom takeover. “We believe the probability of a takeover is low,” said Emmanuel Carlier, analyst at Kempen.(Updated with KPN shares)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
In 2020, many drug stocks have behaved like pot stocks did in 2018. Investors have paid huge premiums on sales for even the promise of a novel coronavirus treatment or vaccine. But if you’re looking for value, consider Pfizer (NYSE:PFE). You can still buy PFE stock at a reasonable price. Source: Manuel Esteban / Shutterstock.com Pfizer was trading at $37/share early on Oct. 8. That’s a market cap of $203 billion, based on 2019 sales of $51.75 billion. But the price-to-earnings ratio is just 14.5 and the 38 cent per share dividend still yields 4.1%, at a time when the 30-year government bond trades at 1.5%. How is this possible? Blame a long history of underperformance, the efforts to improve that performance, and a preference for more speculative issues.InvestorPlace - Stock Market News, Stock Advice & Trading Tips Pfizer’s Covid-19 Play Pfizer is the senior partner in a Covid-19 vaccine effort built on technology from BioNTech (NASDAQ:BNTX) of Germany. Investors seeking a profit on that play have been piling into BioNTech, which had 2019 sales of $109 million but entered trade Oct. 8 at $88/share, a market cap of $21 billion. Analysts say the combination, along with Moderna (NASDAQ:MRNA), are leading the race. While the market will be worth billions, the price is likely to be controlled by governments. Pfizer is the manufacturing partner, with what CEO Albert Bourla, a veterinarian by training, calls an “open checkbook.” Even before Phase 3 trials are done, the company has produced hundreds of thousands of doses of the BioNTech vaccine. 7 Innovative Stocks Pushing Our World Ahead Bourla says his company is “moving at the speed of science.” He has acted as a public face for the effort, seeking to assure consumers the result will be something safe and effective. He is caught between a president who wants to rush emergency use authorizations and a public that’s increasingly skeptical of all vaccines. In addition to the vaccine, Pfizer has begun Phase 1 studies of a treatment for Covid-19, an antiviral that will combine with Remdesivir from Gilead Sciences (NASDAQ:GILD), which Trump has been taking. Pfizer says the combination has proven potent in pre-human studies. Beyond the Coronavirus What makes Pfizer interesting lies beyond COVID, including work on other vaccines, on immunology, and on rare diseases. The company also has cash. It had $22.7 billion of cash on its balance sheet at the end of June. It recently paid $200 million for a 9.9% stake in a Chinese cancer drug company, CStone. Pfizer’s best-known vaccine is Prevnar, for pneumonia, which had sales of $5.85 billion last year. The company recently told analysts it has three more vaccines in development, whose sales could equal that figure by the end of the decade. Pfizer’s best-known drug right now is Xeljanz, an immunosuppressant (called a JAK inhibitor) for which it now has four indications, including arthritis. Xeljanz has the second-largest ad budget in the industry, recording sales of $2.24 billion last year. The Bottom Line on PFE Stock Since becoming CEO, Bourla has sought to pull Pfizer away from its “patent cliff.” Drugs like Viagra and Lipitor have lost patent protection, and are being spun out along with UpJohn from Mylan (NYSE:MYL) into a new company called Viatris. The pandemic forced a delay in that spinoff, so if you’re an income investor you can still get in by buying Pfizer. Selling off aging profit centers, however, puts the main company dividend, which costs $2.1 billion per quarter, into jeopardy. Thus, the stock hasn’t moved much. Pfizer’s current guidance is that 2020 free cash flow will come to $10 billion to $11 billion, cutting the dividend and indicating a yield of 3.6%. But board members like former FDA Commissioner Scott Gottlieb and investment banker Ronald Blaylock have been buying Pfizer lately. You might want to join them. On the date of publication, Dana Blankenhorn did not have (either directly or indirectly) any positions in any of the securities mentioned in this article. Dana Blankenhorn has been a financial and technology journalist since 1978. He is the author of the environmental thriller Bridget O’Flynn and the Bear, available at the Amazon Kindle store. Write him at email@example.com or follow him on Twitter at @danablankenhorn. More From InvestorPlace Why Everyone Is Investing in 5G All WRONG America’s #1 Stock Picker Reveals His Next 1,000% Winner Revolutionary Tech Behind 5G Rollout Is Being Pioneered By This 1 Company Could Tiny “Super” Battery Kill Big Tech? The post Pfizer Is a Value Play in the Covid-19 Frenzy appeared first on InvestorPlace.
Over the past three months, shares of Mylan (NASDAQ: MYL) decreased by 7.81%. Before having a look at the importance of debt, let us look at how much debt Mylan has.Mylan's Debt According to the Mylan's most recent balance sheet as reported on August 6, 2020, total debt is at $12.19 billion, with $8.99 billion in long-term debt and $3.20 billion in current debt. Adjusting for $323.60 million in cash-equivalents, the company has a net debt of $11.87 billion.Investors look at the debt-ratio to understand how much financial leverage a company has. Mylan has $30.16 billion in total assets, therefore making the debt-ratio 0.4. As a rule of thumb, a debt-ratio more than one indicates that a considerable portion of debt is funded by assets. A higher debt-ratio can also imply that the company might be putting itself at risk for default, if interest rates were to increase. However, debt-ratios vary widely across different industries. A debt ratio of 25% might be higher for one industry and normal for another.Importance Of Debt Debt is an important factor in the capital structure of a company, and can help it attain growth. Debt usually has a relatively lower financing cost than equity, which makes it an attractive option for executives.However, interest-payment obligations can have an adverse impact on the cash-flow of the company. Equity owners can keep excess profit, generated from the debt capital, when companies use the debt capital for its business operations.See more from Benzinga * Options Trades For This Crazy Market: Get Benzinga Options to Follow High-Conviction Trade Ideas * Understanding Mylan's Unusual Options Activity(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.