Author: Lily Harper

Unlock the Editor’s Digest for freeRoula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter.European politicians pay lip service to the need to consolidate the continent’s fragmented banking sector. Faced with actual or potential bids — mostly emanating from ambitious Italian lender UniCredit — their instincts run in the opposite direction.For an idea of the scale of political foot-dragging, just think that Italy’s finance minister Giancarlo Giorgetti has suggested he may call in UniCredit’s €10bn bid for Banco BPM under “golden power” rules, ordinarily used to shield strategic industries on national security grounds. Meanwhile, the outgoing…

Unlock the Editor’s Digest for freeRoula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter.Brookfield Asset Management has walked away from an acquisition of Spanish healthcare group Grifols after months of negotiations, sending shares in the short seller target down almost 13 per cent. Brookfield’s decision to withdraw from talks after indicating last week that it could submit a €6.45bn bid for Grifols piles further pressure on the leading maker of medicines derived from blood plasma. The Barcelona-based company has been at the centre of one of the biggest corporate controversies in Spain this year, after a…

Scott Bessent’s hedge fund notched its best returns with a contrarian bet against the Federal Reserve that the burst of US inflation in 2022 would prove more lasting than the central bank predicted.The wager made by the man Donald Trump picked last week to be his Treasury secretary saw Bessent’s Key Square Capital flagship fund score returns of 29 per cent in 2022 as the wider market fell.The bonanza inflation trade involved shorting fixed-income assets and tech stocks generating low revenue that were backed by rival fund managers including Cathie Wood.The move bolstered Bessent’s reputation as an expert in financial…

Unlock the Editor’s Digest for freeRoula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter.Nationwide, the UK’s largest building society, recorded a £2.3bn gain from its purchase last month of listed lender Virgin Money, as it posted a drop in first-half profits.In annual results published on Wednesday, the mutual said the value of net assets acquired in its £2.8bn acquisition had been “well above the price we paid”.“This gain provides significant headroom to cover our investment in integration, as well as in service and value,” said chief executive Debbie Crosbie.John Cronin, an analyst at SeaPoint Insights…

One thing to start: Italian lender Banco BPM has dismissed a bid from rival UniCredit, calling the value of the offer “completely unusual” and saying it failed to reflect the bank’s profitability and future prospects.Welcome to Due Diligence, your briefing on dealmaking, private equity and corporate finance. This article is an on-site version of the newsletter. Premium subscribers can sign up here to get the newsletter delivered every Tuesday to Friday. Standard subscribers can upgrade to Premium here, or explore all FT newsletters. Get in touch with us anytime: Due.Diligence@ft.comIn today’s newsletter:Jefferies stays quiet on AdaniTelegram makes a killing on…

Stay informed with free updatesSimply sign up to the Exchange traded funds myFT Digest — delivered directly to your inbox.Latest news on ETFsVisit our ETF Hub to find out more and to explore our in-depth data and comparison toolsNeuberger Berman is closing its $6mn Global Real Estate ETF on January 6, following its conversion from a mutual fund last year.The manager’s board of trustees approved the liquidation, because the fund had not “reached sufficient scale”, according to a regulatory filing.Neuberger confirmed it was its first ETF liquidation — it launched its first ETFs in 2022.This article was previously published by…

Stay informed with free updatesSimply sign up to the European banks myFT Digest — delivered directly to your inbox.The boss of Poland’s largest bank said a capital shortage created by the high cost of compensating those caught up in a mortgage mis-selling dispute had left the sector ill-equipped to fund the country’s green energy transition. Szymon Midera, chief executive of state-controlled PKO BP, also warned of fresh uncertainty from a new and separate wave of lawsuits from customers that threatened to prolong the problem, while also slowing the pace of banking sector consolidation.Banks need to co-finance green projects to help…

Unlock the Editor’s Digest for freeRoula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter.US investment firm White Oak has accused Marsh, the world’s biggest insurance broker, of fraudulent conduct in its work for Greensill Capital, the finance provider that collapsed in scandal three years ago.The private credit firm has intensified its $143mn suit against Marsh in London’s High Court, arguing in a filing on Friday that the broker made “fraudulent misrepresentations” about insurance covering invoice-backed financial products that White Oak had bought from Greensill.The San Francisco-based investment firm’s escalated claims against Marsh hinge on a…

Unlock the Editor’s Digest for freeRoula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter.The author is partner at law firm Maurice Turnor GardnerIn my experience, the last thing recent creators of great fortunes do is expend energy on contemplating their mortality. But, as their lawyer, I see it as my role to provoke them into making personal planning a priority — they need some elementary “death admin”, with their will as a starting point.Will preparation and related activity are a cornerstone of my practice and I come out in a rash when I discover that…

Unlock the Editor’s Digest for freeRoula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter.Top law firms Simpson Thacher & Bartlett and Herbert Smith Freehills are opening offices in Luxembourg, as they look to capitalise on the country’s growing status as the “gateway to Europe” for private capital.Both firms are planning to open their offices early next year, they confirmed to the Financial Times. US law firm Simpson Thacher has hired three funds partners from “magic circle” rivals A&O Shearman and Clifford Chance to start its office, while London-headquartered HSF has also hired two lawyers from…