Hints and tips:
...He will be replaced by Uber’s current head of international rides, Pierre-Dimitri Gore-Coty. More here....
...DD’s Arash Massoudi and FT colleagues Stephen Morris and Laurence Fletcher burnt the midnight oil to digest the announcement. You can read their report here....
...Investors take the spotlight in potential $200bn Altria-Philip Morris tie-up deal Wednesday’s DD led off on the poor market reception to the potential tie-up between Marlboro makers Altria and Philip Morris...
...The deal was structured as a so-called Reverse Morris Trust, which allowed P&G to spin out and sell the assets to Coty without paying capital gains tax....
...At the beginning of Q3, the sector was expected to report 9.7 per cent earnings growth and that the cuts to earnings estimates were led by Coty, Tyson Foods and Philip Morris....
...Tobacco company shares have fallen as well, with Philip Morris down nearly 10 per cent, as smoking is much more prevalent in emerging-market countries....
...A number of other deals have deployed the tax saving Reverse Morris Trust structure, including Dow Chemical’s sale of part of its chlorine business to Olin....
...The New York Post first reported that Coty had won the auction to acquire control of the P&G assets using a tax-efficient “Reverse Morris Trust” structure in which P&G would spin the operations off, giving...
...The businesses’ $6bn in revenue roughly equals that of Coty, making it difficult for Coty to buy them for cash. Instead, P&G will execute a “Reverse Morris Trust”....
...The Coty/P&G Beauty brands combination from last week provides a rare example of a collar on debt. Coty is combining with the P&G businesses in a so-called Reverse Morris Trust....
...To minimise its tax bill, P&G has structured the deal as a “Reverse Morris Trust”....
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