Euronext CEO tests limits of M&A playbook

Allfunds

01/03/2023 10:58

(The authors are Reuters Breakingviews columnists. The opinions
expressed are their own.)
    By Lisa Jucca and Pamela Barbaglia
       MILAN/LONDON, March 1 (Reuters Breakingviews) - Serial
buyer Stéphane Boujnah’s exit from his $6 bln bid for Allfunds
is a lucky escape. Its likely slim returns hardly justified the
price. But he still needs to diversify from equities. A lack of
targets and Euronext’s lowly valuation mean the next deal may
not be any easier.
        
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    CONTEXT NEWS
    Euronext said on Feb. 28 that it had withdrawn its
indicative 5.5 billion euro offer to buy Spanish fund
distribution firm Allfunds.
    Allfunds said on March 1 that the terms of an unsolicited
takeover proposal from Euronext were deemed inadequate by its
board. A Euronext spokesperson told Reuters Breakingviews the
stock exchange operator decided to walk away after carrying out
due diligence. "We did not receive a rejection to our offer,"
the spokesperson added.
   Euronext said on Feb. 22 it had submitted a preliminary
offer to buy Amsterdam-listed Allfunds. The cash and share offer
valued the Spanish group at 8.75 euros per share, the funds
platform operator said in a separate statement. The offer was
announced after Bloomberg reported that Euronext was in
talks with major shareholders of the Spanish group, including
buyout firm Hellman & Friedman.
    Hellman & Friedman and Singapore’s sovereign wealth fund
GIC bought a majority stake in Allfunds in 2017, before listing
the group in Amsterdam in 2021.
    Euronext shares were up over 4% at 72.34 euros, as of 0953
GMT. Allfunds shares fell around 13% to 7.20 euros.

 (Column by Lisa Jucca in Milan and Pamela Barbaglia in London.
Editing by Neil Unmack and Pranav Kiran)
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