Free Trial
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
FINANCIALS
Direct Line results – Ageas bid unchanged on these turnaround numbers. Worth noting Ageas’ cash curve has tightened over the last month but underperformed peer NN Group since AGS announced the bid. That could revert if the bid is shelved.
- Direct Line results appear to show the company starting to turn the corner after the motor claims inflation issues that wiped out profits and dividends. Trading is also reported as being relatively positive so far this year. Its equity is largely undisturbed today.
- DLG is not a EUR issuer but its suitor, Ageas, is. The value of the AGS bid is around 14% above DLG’s current equity price, implying a reasonable chance of deal failure. Fosun, which owns 7.2% of Ageas is reportedly against the deal which is a meaningful hurdle.
- AGS’s EUR cash curve has tightened around 30bp over the last month (Euro sub financials 15bp tighter) so has outperformed but has given back some of its performance YTD vs. NN group (see graphic). The give-back since the bid was announced could well reverse if the deal is shelved, which we will know by EOD 27-Mar.
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
We are facing technical issues, please contact our team.
ok
Your request was sent sucessfully! Our team will contact you soon.
ok