FINWIRES · TerminalLIVE
FINWIRES

Puig Shares Plunge as Merger Talks with Estée Lauder Called Off

By
Puig Shares Plunge as Merger Talks with Estée Lauder Called Off

Puig Brands (PUIG.MC) shares tumbled more than 13% by Friday midday after negotiations for a proposed combination with Estée Lauder fell through.

The Spanish fashion and beauty company and New York-listed Estée Lauder announced on Thursday that they failed to reach an agreement to combine their respective businesses.

The potential merger, first disclosed March 23, would have created a $40 billion luxury beauty group, Reuters noted. The transaction would have combined Estée Lauder brands like Tom Ford, Clinique and MAC with Puig's own labels, including Carolina Herrera and Charlotte Tilbury.

Puig Chief Executive Officer Jose Manuel Albesa said the decision will not affect the company's strategic growth plans or its long-term value creation.

"Our robust capital structure gives us flexibility to pursue a range of strategic choices aligned with our long-term priorities. We will continue to take a highly selective, value-driven approach to M&A to further complement our portfolio," Albesa added.

Meanwhile, Estée Lauder intends to focus on the execution of its Beauty Reimagined ​strategy and prioritize its long-term growth. President and Chief Executive Officer Stéphane de La Faverie said the company will "continue to evaluate and evolve our portfolio to ensure we have the right assets to drive the most compelling growth opportunities, including both potential acquisitions and divestitures."

Related Articles

CVC Lands Groupe Bruxelles Lambert's Support to Make EUR11 Billion Bid for Italy's Recordati
US Markets

CVC Lands Groupe Bruxelles Lambert's Support to Make EUR11 Billion Bid for Italy's Recordati

CVC Capital Partners (CVC.AS) secured backing from Groupe Bruxelles Lambert (GBLB.BR) to move ahead with a 10.7 billion-euro bid for Italian pharmaceutical company Recordati (REC.MI).A consortium led by the two investment firms on Friday launched a voluntary cash tender offer for all of Recordati's shares at 51.29 euros per share. The per-share price reflects a 12.89% premium to Recordati's closing price on March 25, just before CVC first made a non-binding approach.CVC-controlled Rossini, which owns a 46.82% stake in Recordati, agreed to tender its shares under the offer. The buyers will also have support from Abu Dhabi Investment Authority's Luxinva, CPP Investment Board Private Holdings, PSP Europe, StepStone-advised funds, AlpInvest-advised funds, MGG Strategic, CapSol funds, and Andrea Recordati.The deal is expected to close in the fourth quarter, subject to regulatory approvals and acceptance by shareholders representing at least 66.67% of Recordati's share capital. Following the tender offer, Recordati is intended to be delisted from Euronext Milan and under joint control of the consortium.CVC in 2018 acquired a majority stake in the pharmaceutical company, which was founded in the early 1900s as a small pharmacy. It now has divisions covering specialty and primary care, rare diseases, along with industrial operations.CVC and Groupe Bruxelles Lambert shares inched up in early morning trading in Amsterdam and Brussels, respectively, while Recordati's stock was down slightly in Milan.

$CVC.AS$GBLB.BR$REC.MI
Lenovo Posts Fastest Quarterly Growth in Five Years on AI Boom
US Markets

Lenovo Posts Fastest Quarterly Growth in Five Years on AI Boom

Lenovo (HKG:0992) posted record fiscal fourth-quarter revenue and its fastest quarterly growth in five years as strong demand for artificial intelligence and rapid server expansion drove earnings sharply higher.Revenue for the three months ended March 31 rose 27% year over year to a record $21.6 billion, according to a Friday Hong Kong bourse filing, surpassing the Visible Alpha consensus estimate of $19.6 billion.Profit attributable to equity holders surged 479% to $521 million in the fiscal fourth quarter from $90 million a year earlier.Earnings per share came in at $0.0380 from $0.0071 in the corresponding period last year, compared with the Visible Alpha consensus estimate of $0.03 per share.For fiscal 2026, profit attributable to equity holders rose 38% to $1.91 billion from $1.38 billion a year earlier.While annual revenue climbed 20% to a record $83.1 billion, above the Visible Alpha estimate of $80.9 billion.Lenovo said AI-related revenue accounted for 38% of total fourth-quarter revenue and increased 84% year over year.The company said all three business groups delivered double-digit revenue growth despite tariffs, rising component costs, and the war in the Middle East.Lenovo added that AI server revenue posted high double-digit growth during the year, supported by a $21 billion pipeline at the end of fiscal 2026.Chief Executive Yang Yuanqing told Reuters earlier this year that the company had raised PC prices to offset surging memory costs amid a worsening global memory chip shortage while accelerating its expansion into the fast-growing AI inference market."We expect PC unit sales to face pressure, but believe we can still grow revenue and maintain profitability," Yang told Reuters in February.Looking ahead, Lenovo said it will continue to expand its Hybrid AI strategy through AI-enabled devices, enterprise infrastructure, and services offerings as businesses increasingly shift toward real-time AI inferencing and hybrid AI deployments.The company said it expects to begin deliveries of Nvidia's Rubin-based AI platforms in the second half of calendar 2026."Our hybrid AI vision puts us at the forefront of AI inferencing and AI democratization, so I'm fully confident that we will achieve our goal to become a $100 billion company in two years," Yang said in an interview after the earnings release, according to Bloomberg.

$HKG:0992
Take-Two Posts Smaller-Than-Expected Loss, Affirms 'GTA VI' November Launch Timeline
US Markets

Take-Two Posts Smaller-Than-Expected Loss, Affirms 'GTA VI' November Launch Timeline

Take-Two Interactive Software (TTWO) reported a smaller-than-expected fiscal fourth-quarter loss late Thursday, while the video game publisher said it was on track to launch the highly anticipated "Grand Theft Auto VI" on Nov. 19.Take-Two's loss narrowed to $0.32 per share in the three months ended March from $21.08 the year before, compared with the FactSet-polled consensus calling for a $0.57 loss. Net bookings, which are products and services sold digitally and physically, remained flat year over year at $1.58 billion.Last week, Wedbush Securities expected bookings at the high end of the company's $1.51 billion to $1.56 billion range, saying the metric could exceed the company's own guidance.NBA 2K26, Grand Theft Auto Online, Grand Theft Auto V and Toon Blast were among the largest contributors to net bookings, Take-Two said. Overall revenue increased to $1.68 billion in the March quarter from $1.58 billion a year ago.GTA VI's launch date was a key investor focus heading into the print. Originally scheduled to come out in 2025, Take-Two's Rockstar Games delayed the release of this iconic series first to May 26 this year and then to Nov. 19.Take-Two said Thursday GTA VI is set to be launched on Nov. 19. It will be available on PlayStation 5 and Xbox series X/S."We believe Fiscal 2027 will establish new record levels of operating performance driven by the November 19th launch of Grand Theft Auto VI, along with strong execution across our portfolio," Take-Two Chief Executive Strauss Zelnick said in a statement.The company's stock rose 6.2% in after-hours trading. It is down 7% this year through Thursday's close.Oppenheimer expects GTA VI to contribute $3.45 in non-GAAP EPS in fiscal 2027, assuming 40 million units are sold at a $70 base price. However, buyside estimates indicate that more than 50 million units may be sold, analyst Martin Yang said in a research note published earlier this week.An incremental 10 million GTA VI sales would add $1 to 2027 estimates, Yang said. "While we view (50 million) unit sales in (fiscal 2027) as possible, we believe management is unlikely to guide to such an optimistic goal initially," according to the report.For fiscal 2027, Take-Two expects net bookings in a range of $8 billion to $8.20 billion. That compares with 19% growth to $6.72 billion in the year just ended.EPS for the full year is pegged at $0.55 to $0.75, swinging from a loss annually. The consensus on FactSet is for GAAP EPS of $2.43. The company expects revenue between $7.90 billion and $8.10 billion.Bookings are projected to come in between $1.32 billion and $1.37 billion for the three-month period ending June 30, Take-Two said. The company anticipates a net loss of $0.15 to $0.23 and revenue between $1.45 billion and $1.50 billion. Analysts polled by FactSet expect a first-quarter loss of $0.40 per share.

$TTWO