Latest news with #AMP
Irish Times
10 hours ago
- Business
- Irish Times
Paul Coulson faces last stand in battle to retain control of Ardagh
Ten years ago last month, Dublin businessman Paul Coulson walked away from a €3 billion deal to buy a glass-bottle business being sold by French building materials group Saint-Gobain. It seemed a rare moment of restraint for a man in a hurry, having spent the previous 15 years turning a once sleepy Irish bottle company into a multibillion-euro packaging giant – Ardagh Group – through a series of purchases funded by debt raised in the high-cost, junk-bond market. It would not last long. Less than a year later, Coulson unveiled a similar-sized transaction, but one that would catapult Ardagh into the business of making cans for beers and fizzy drinks. Today, that business – Ardagh Metal Packaging (AMP), whose customers range from Coca-Cola and Heineken to Nestlé – has surfaced as a prized asset as Coulson and holders of some of wider group's $12.5 billion (€10.7 billion) of borrowings scramble to salvage what they can from an empire saddled with too much debt. Coulson effectively owns 36 per cent of Ardagh Group. READ MORE Ardagh Group has acknowledged for more than a year that it needs to reduce its liabilities, after both its glass and beverage cans businesses had been hit since the Covid-19 pandemic by inflation, soaring interest rates, and soft consumer demand on both sides of the Atlantic. The heavily-indebted business proposed in March that a group of senior unsecured bondholders write off much of the $2.32 billion they are owed in exchange for taking full ownership of the glass containers part of the business. The plan also envisaged Ardagh Group spinning its shares in AMP into new company (NewCo). This would be 80 per cent owned by Coulson and other existing Ardagh Group shareholders – with the unsecured creditors receiving the remaining 20 per cent. Holders of a further $1.79 billion of the group's riskiest debt, so-called payment-in-kind bonds issued by a holding company at the top of the Ardagh corporate tree, know they're toast, with these notes trading below 5 per cent of their original value. Talks with the unsecured creditors broke down in May after they pitched a proposal that would see them take 40 per cent, rather than 20 per cent, of AMP, which has seen its prospects improve in recent quarters, even as the glass containers arm of the group continues to grapple with weak demand. The unsecured creditors also wanted the $784 million of preference shares they were being offered in the NewCo to be increased to $1.07 billion. AMP, in which Ardagh Group has a 76 per cent stake, is listed on Wall Street, where investors have also recently come to appreciate the improving outlook for this business – even as the glass side struggles. The market value of AMP, which has $3.98 billion of ring-fenced borrowings, has jumped more than 45 per cent to $2.59 billion so far this year. This was driven by a spike in April when its chief, Oliver Graham, signalled that the business had 'turned a corner', helped by a rebound in demand for energy drinks, sparkling water and health segments. The value of Coulson's indirect 27 per cent stake in AMP has increased as a result to more than $700 million. This is well off the $1.7 billion it was worth when the stock debuted on the New York Stock Exchange almost four years ago. It is also a fraction of the now 73-year-old's €2.4 billion interest in the wider Ardagh Group when it peaked in April 2021 – before the group delisted and floated its beverage cans unit. It emerged last week that certain bondholders have offered Coulson – who remains on the board of the group, having retired as chairman in late 2023 – and other investors in Ardagh Group $250 million to hand over total control of the empire to creditors and walk away. Shareholders include management and investors that remained on board a tiny version of the current group that was listed in Dublin more than two decades ago. The bondholders clearly do not feel the need to keep Coulson on after a restructuring. This differs from the case of fellow former junk-bond darling, Denis O'Brien , when his overindebted Digicel mobile phone company ran out of road two years ago. Digicel had no equity value when its bondholders took control in a subsequent debt-for-equity swap. However, the creditors left O'Brien with a 10 per cent stake and stock warrants that would entitle him to a further 10 per cent, subject to the company meeting certain targets, knowing they needed him to maintain key relationships with regulators and politicians across its 25 emerging and, in some cases, frontier markets. The problem for Ardagh Group bondholders is the corporate web structure – including a company set up in April 2022, at a time when interest rates were soaring globally, under the group to hold its 76 per cent stake in AMP. This was designated a so-called unrestricted subsidiary, putting its assets out of reach of group creditors. The directors of that subsidiary sought fit last year to set up another unit to hold the prized asset. Bondholders thinking they can wave off Coulson and a small number of legacy investors in Ardagh Group with a $250 million check had better have the bottle for a battle.
Sky News AU
2 days ago
- Business
- Sky News AU
Section 899 of Trump's Big Beautiful Bill makes US assets ‘less attractive' to Aussie investors
AMP economist My Bui has claimed she is 'quite concerned' about the impact of section 899 of US President Donald Trump's Big Beautiful Bill on Australian businesses. Treasurer Jim Chalmers spoke to his American counterpart Scott Bessent this morning and used the call to lobby him over the Section 899 tax proposal, which forms part of Donald Trump's Big Beautiful Bill. If the Bill passes, it could result in Australia being deemed a 'discriminatory foreign country', which could result in Australian businesses investing in America being charged higher taxes.
Saudi Gazette
3 days ago
- Entertainment
- Saudi Gazette
Lacey breaks off from FaZe Clan: What's shocking him so far
The ES Times — At first, it sounded like a joke. Now it's official: Nick "Lacy" Fosco is no longer part of FaZe Clan. The announcement came straight from Ricky 'Banks' Bengston during a livestream on May 6, when he bluntly declared, 'Lacy is fired from FaZe. Not kidding.' The clip quickly went viral, racking up over 7.4 million views and sparking widespread speculation. No official reason Despite the public fallout, no clear reason has been provided by either Banks or Lacy. Lacy briefly addressed the matter during a Twitch stream, saying, 'I know everyone thinks it's just a joke. It's not. This is very serious,' before abruptly ending the stream. Various speculations As expected, online speculation intensified. While Lacy hasn't made any public demands of FaZe Clan, the silence from his inner circle has only deepened the mystery. Even Rani — a close friend and known associate of streamer 'StableRonaldo' Netz — has remained quiet. Viewers have noticed the lack of updates or statements across Twitch and other platforms. What's next? The next big public appearance for Lacy is expected at the Fortnite FNCS Pro-Am on May 10 in Los Angeles, where he's set to appear alongside StableRonaldo. Some believe this could be the moment when more details are revealed. Is there a bigger change coming? One theory making the rounds is that this might be part of a larger shift involving FaZe Clan and AMP. Speculation intensified after both Lacy and Fanum — a streamer closely tied to AMP — were suddenly wiped from their respective social media accounts. Banks himself even responded to a cryptic post from Fanum, further stoking the fire. Final word For now, there are more questions than answers. Given FaZe Clan's history of dramatic exits and shakeups, this could either be a genuine fallout or part of a larger strategic move. Whether it's a feud, a brand shift, or a carefully staged stunt, fans won't have to wait long to find out.
ABC News
4 days ago
- Business
- ABC News
Why markets are discounting the risk of an oil supply disruption
Shane Oliver, AMP's chief economist and head of investment strategy, says financial markets are betting the risk of an energy supply shock has now receded with the price of oil now below what it was when Israel first attacked Iran.
The Advertiser
4 days ago
- Business
- The Advertiser
Servos urged not to price gouge after oil price hike
Service station owners have been put on notice not to take advantage of customers due to volatile fuel prices caused by conflict in the Middle East. Treasurer Jim Chalmers has written to the Australian Competition and Consumer Commission calling for the watchdog to monitor for potential price gouging at the bowser by operators. Petrol prices have been fluctuating following uncertainty in the Middle East with Iran and Israel trading air strikes and the US bombing Iranian nuclear facilities. Fears of an escalation in the conflict had prompted concern of fuel facilities being impacted which would see oil prices rise further. Dr Chalmers said drivers needed to be treated fairly at the fuel pump. "We don't want to see service stations do the wrong thing by Australian motorists," he told reporters in Brisbane on Tuesday. "We don't want to see this volatility in global oil prices lead to more than justifiable changes in the price that Australian motorists pay at the bowser." Oil prices had been sitting about $62 per barrel at the start of June, before rising to $79 following US strikes on Iran. While the price has moderated since a ceasefire agreement was reached, economists had warned the cost could rise to above $100 a barrel if fuel supplies were impacted by further strikes. Consumer watchdog chair Gina Cass-Gottlieb has been asked to report back to the treasurer on price-gouging issues. "I would expect the ACCC ... to investigate any concerns arising about misrepresentations regarding petrol prices, false and misleading conduct or anti-competitive conduct in petrol markets, and to take appropriate action," Dr Chalmers said in a letter to the commission. AMP chief economist Shane Oliver said should the price of oil reach above $100 a barrel, it would add 25 cents per litre to retail petrol costs. He said an increase in petrol costs could push up inflation, which would flow on to other parts of the economy. "If the oil price went to $100 to $150 a barrel and it's a much bigger boost to inflation, the Reserve Bank of Australia would be inclined to wait before cutting interest rates again," he told AAP. "The price of airfares could go up, as well as plastic prices, which affects a lot of household goods." Service station owners have been put on notice not to take advantage of customers due to volatile fuel prices caused by conflict in the Middle East. Treasurer Jim Chalmers has written to the Australian Competition and Consumer Commission calling for the watchdog to monitor for potential price gouging at the bowser by operators. Petrol prices have been fluctuating following uncertainty in the Middle East with Iran and Israel trading air strikes and the US bombing Iranian nuclear facilities. Fears of an escalation in the conflict had prompted concern of fuel facilities being impacted which would see oil prices rise further. Dr Chalmers said drivers needed to be treated fairly at the fuel pump. "We don't want to see service stations do the wrong thing by Australian motorists," he told reporters in Brisbane on Tuesday. "We don't want to see this volatility in global oil prices lead to more than justifiable changes in the price that Australian motorists pay at the bowser." Oil prices had been sitting about $62 per barrel at the start of June, before rising to $79 following US strikes on Iran. While the price has moderated since a ceasefire agreement was reached, economists had warned the cost could rise to above $100 a barrel if fuel supplies were impacted by further strikes. Consumer watchdog chair Gina Cass-Gottlieb has been asked to report back to the treasurer on price-gouging issues. "I would expect the ACCC ... to investigate any concerns arising about misrepresentations regarding petrol prices, false and misleading conduct or anti-competitive conduct in petrol markets, and to take appropriate action," Dr Chalmers said in a letter to the commission. AMP chief economist Shane Oliver said should the price of oil reach above $100 a barrel, it would add 25 cents per litre to retail petrol costs. He said an increase in petrol costs could push up inflation, which would flow on to other parts of the economy. "If the oil price went to $100 to $150 a barrel and it's a much bigger boost to inflation, the Reserve Bank of Australia would be inclined to wait before cutting interest rates again," he told AAP. "The price of airfares could go up, as well as plastic prices, which affects a lot of household goods." Service station owners have been put on notice not to take advantage of customers due to volatile fuel prices caused by conflict in the Middle East. Treasurer Jim Chalmers has written to the Australian Competition and Consumer Commission calling for the watchdog to monitor for potential price gouging at the bowser by operators. Petrol prices have been fluctuating following uncertainty in the Middle East with Iran and Israel trading air strikes and the US bombing Iranian nuclear facilities. Fears of an escalation in the conflict had prompted concern of fuel facilities being impacted which would see oil prices rise further. Dr Chalmers said drivers needed to be treated fairly at the fuel pump. "We don't want to see service stations do the wrong thing by Australian motorists," he told reporters in Brisbane on Tuesday. "We don't want to see this volatility in global oil prices lead to more than justifiable changes in the price that Australian motorists pay at the bowser." Oil prices had been sitting about $62 per barrel at the start of June, before rising to $79 following US strikes on Iran. While the price has moderated since a ceasefire agreement was reached, economists had warned the cost could rise to above $100 a barrel if fuel supplies were impacted by further strikes. Consumer watchdog chair Gina Cass-Gottlieb has been asked to report back to the treasurer on price-gouging issues. "I would expect the ACCC ... to investigate any concerns arising about misrepresentations regarding petrol prices, false and misleading conduct or anti-competitive conduct in petrol markets, and to take appropriate action," Dr Chalmers said in a letter to the commission. AMP chief economist Shane Oliver said should the price of oil reach above $100 a barrel, it would add 25 cents per litre to retail petrol costs. He said an increase in petrol costs could push up inflation, which would flow on to other parts of the economy. "If the oil price went to $100 to $150 a barrel and it's a much bigger boost to inflation, the Reserve Bank of Australia would be inclined to wait before cutting interest rates again," he told AAP. "The price of airfares could go up, as well as plastic prices, which affects a lot of household goods." Service station owners have been put on notice not to take advantage of customers due to volatile fuel prices caused by conflict in the Middle East. Treasurer Jim Chalmers has written to the Australian Competition and Consumer Commission calling for the watchdog to monitor for potential price gouging at the bowser by operators. Petrol prices have been fluctuating following uncertainty in the Middle East with Iran and Israel trading air strikes and the US bombing Iranian nuclear facilities. Fears of an escalation in the conflict had prompted concern of fuel facilities being impacted which would see oil prices rise further. Dr Chalmers said drivers needed to be treated fairly at the fuel pump. "We don't want to see service stations do the wrong thing by Australian motorists," he told reporters in Brisbane on Tuesday. "We don't want to see this volatility in global oil prices lead to more than justifiable changes in the price that Australian motorists pay at the bowser." Oil prices had been sitting about $62 per barrel at the start of June, before rising to $79 following US strikes on Iran. While the price has moderated since a ceasefire agreement was reached, economists had warned the cost could rise to above $100 a barrel if fuel supplies were impacted by further strikes. Consumer watchdog chair Gina Cass-Gottlieb has been asked to report back to the treasurer on price-gouging issues. "I would expect the ACCC ... to investigate any concerns arising about misrepresentations regarding petrol prices, false and misleading conduct or anti-competitive conduct in petrol markets, and to take appropriate action," Dr Chalmers said in a letter to the commission. AMP chief economist Shane Oliver said should the price of oil reach above $100 a barrel, it would add 25 cents per litre to retail petrol costs. He said an increase in petrol costs could push up inflation, which would flow on to other parts of the economy. "If the oil price went to $100 to $150 a barrel and it's a much bigger boost to inflation, the Reserve Bank of Australia would be inclined to wait before cutting interest rates again," he told AAP. "The price of airfares could go up, as well as plastic prices, which affects a lot of household goods."
