Free Trial

CONSUMER CYCLICALS: Ceconomy; JD.com reportedly showing interest in buying (x3)

CONSUMER CYCLICALS

(CECGR unsec; NR/BB-/BB) (JD; A3/A-)

  • Equities closed +13% but are only pricing +9% today. On a ~30% takeover premium <1/3 chance.
  • €29/26s closed +2/+1pts pricing ~50% chance there (+2/+0.9pt upside remaining).

Not first time JD has shown interest, 29s are coming in from well wide levels - low levered co but razor thin margins, weak cash flow metrics and full European consumer exposure. Trigger piece here

63 words

To read the full story

Close

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.

(CECGR unsec; NR/BB-/BB) (JD; A3/A-)

  • Equities closed +13% but are only pricing +9% today. On a ~30% takeover premium <1/3 chance.
  • €29/26s closed +2/+1pts pricing ~50% chance there (+2/+0.9pt upside remaining).

Not first time JD has shown interest, 29s are coming in from well wide levels - low levered co but razor thin margins, weak cash flow metrics and full European consumer exposure. Trigger piece here