HSBC Chair Search, Blue Owl’s Stock Buyback, and Bending Spoons’ roll-Up Strategy Dominate Dealmaking Landscape
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A tumultuous period for corporate governance, private credit, and European tech consolidation defined the latest developments in dealmaking and finance, according to recent reports. Investors are closely watching developments involving HSBC’s leadership, Blue Owl’s efforts to stabilize its stock price, and the ambitious acquisition strategy of italian firm Bending Spoons.
HSBC Board Ends Chaotic Chair Search with familiar Face
The HSBC board concluded its protracted search for a new chair by unanimously selecting Brendan Nelson,a former KPMG partner who has served as interim chair since October. The decision followed pitches from high-profile candidates including Goldman Sachs executive Kevin Sneader and ex-UK chancellor George Osborne,but ultimately landed on a figure already within the bank’s orbit.
The process, described as “messy” and reminiscent of a similar struggle 15 years prior, was elaborate by the unexpected early departure of former chair Sir Mark Tucker. The board sought a candidate possessing financial services experience, deep knowledge of China, diplomatic skills to navigate US-China relations, and the capacity for extensive travel. Finding an individual meeting all criteria proved elusive, with debate even arising over what constituted sufficient “Asia experience.” Ultimately,Nelson’s lack of Asia experience proved a convenient resolution to these disagreements. Though, given Nelson’s age of 76, some observers suggest this appointment may simply delay another, more thorough search in the near future.
Blue Owl Deploys $200 Million to Bolster Stock Price Amid Private Credit concerns
Private credit giant Blue Owl has spent $200 million repurchasing stock across its asset manager and two largest publicly traded credit funds, a move intended to counter a meaningful slide in its share price. This action follows a period of volatility sparked by the abandonment of a proposed merger of two of its funds, a deal that an FT report revealed could have resulted in substantial losses for some investors.
Shares in Blue Owl have been under pressure amid broader anxieties about falling yields and potential defaults in the debt markets. The firm has actively sought to reassure investors, disputing claims of significant risk within its private credit portfolio, which focuses on lending to data centers and software companies. The stock buyback, which included $35 million from company executives
News Round-Up
FT Alphaville.Argentina’s President Javier milei’s government is preparing to issue foreign bonds for the first time in years following a well-timed loan from the Trump administration and unexpected election victories in October, Bloomberg reports. Another company backed by Donald trump Jr.’s venture capital firm has secured a US government contract, as reported by the FT.
Ovo founder aims to retake control after proposing £200mn investment (FT). Glencore slashes 1,000 jobs as part of cost-cutting drive (FT). Trump sons’ bitcoin venture sheds almost 40% of its value in crypto turmoil (FT). Binance names co-founder Yi He as co-chief executive (FT). AI era requires ‘totally different’ approach to regulation, says FCA boss (FT). Meta poaches senior Apple designer Alan Dye to support AI glasses push (FT). Activist campaigns more likely to target female CEOs (FT).
Due Diligence is written by Arash Massoudi, Ivan Levingston, Ortenca Aliaj, Alexandra Heal and Robert Smith in London, James Fontanella-Khan, Sujeet Indap, Eric Platt, Antoine Gara, Amelia Pollard, Kaye Wiggins, Oliver barnes and Julia Rock in New York, George Hammond and Tabby Kinder in San Francisco, and arjun Neil Alim in Hong Kong. Please send feedback to [email protected].
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