Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 
OFFON

4-Traders Homepage  >  Equities  >  Nyse  >  JPMorgan Chase       

JPMORGAN CHASE
Mes dernières consult.
Most popular
Report
SummaryChartsNewsAnalysisCalendarCompanyFinancialsConsensusRevisions 
News SummaryMost relevantAll newsSector newsTweets

Vantiv sets punchy price on Worldpay

share with twitter share with LinkedIn share with facebook
share via e-mail
0
07/06/2017 | 12:01am CET

LONDON (Reuters Breakingviews) - Worldpay discovered on Wednesday that a couple of birds in the bush are sometimes worth a bit more than one in the hand. A day after Britain’s biggest payment processor said it had received approaches from both Vantiv and JPMorgan, the company plumped for the former’s offer of nearly $10 billion in a mix of cash and shares. That took the shine off the share price of both the buyer and its target. Perhaps because the deal only makes sense with some very charitable assumptions.

If the acquisition goes ahead, Worldpay investors will receive 55 pence for each share they own as well as 0.0672 new Vantiv shares. The total package is worth a fifth more than Worldpay’s June 30 closing price of just under 315 pence and means that investors in the British company would own roughly 41 percent of the larger group. That’s decent but not quite as lofty as the 450 pence offer that several analysts said might be in the offing.

Probably just as well from Vantiv’s point of view. Worldpay says the two boards have identified substantial potential savings but neither side has yet to produce any estimates. But to justify a premium of around $1.6 billion, they would need to make roughly $225 million of pre-tax cost savings per year, according to a Breakingviews calculation. Eliminating duplicated costs in the United States will no doubt play a central role, but even so the goal appears ambitious.

There are a couple of other niggling concerns. One is why JPMorgan decided not to bid. Another is that Vantiv Chief Executive Charles Drucker and his Worldpay peer, Philip Jansen, will jointly run the company. Such setups can be a recipe for conflicts and muddled visions. However, neither is as worrying as investors’ knee-jerk reaction to the deal.

Vantiv shares fell as much as 5 percent from their previous close, before recovering slightly later. The less enthusiastic investors in the U.S. company are about the deal, the less appealing it becomes for those who own its British peer.

By Swaha Pattanaik

Stocks treated in this article : JP Morgan Chase & Company, Vantiv Inc, Worldpay Group
share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news on JPMORGAN CHASE
11:49a GOLDMAN SACHS : London-based investment banks to face closer EU scrutiny - docum..
11:42a Samsung, Honda sign up for IBM`s quantum computing
06:02a JP MORGAN CHASE MPANY : Chase Freedom® Adds New Mobile Wallets Category to 5% Ca..
12/14 JP MORGAN CHASE MPANY : Newsbriefs
12/14 JP MORGAN CHASE MPANY : Fund for Detroit minority small business owners swells t..
12/14 JP MORGAN CHASE MPANY : Kroger launches new mobile payment option
12/14 Intertrust hires new CEO and launches Luxembourg AIFMD offering
12/13 JP MORGAN CHASE MPANY : Detroit’s Entrepreneurs of Color Fund Nearly Tripl..
12/13 JP MORGAN CHASE MPANY : Kroger and Chase Pay Announce Mobile Payment Partnership..
12/13 HSBC : JP Morgan and American Express back cyber startup Menlo Security in $40m ..
More news
News from SeekingAlpha
08/17 Market Failure - The Forgotten Source Of Crisis
08/17 45 $100+ Billion Companies In The S&P 500
08/17 Tracking Glenn Greenberg's Brave Warrior Advisors Portfolio - Q2 2017 Update
08/16 Picking Stocks Fantasy Football Style - Cramer's Mad Money (8/15/17)
08/16 Foregone Conclusions Become Well-Known Facts
Financials ($)
Sales 2017 102 B
EBIT 2017 40 896 M
Net income 2017 24 992 M
Debt 2017 -
Yield 2017 2,02%
P/E ratio 2017 15,14
P/E ratio 2018 13,70
Capi. / Sales 2017 3,56x
Capi. / Sales 2018 3,37x
Capitalization 363 B
Chart JPMORGAN CHASE
Duration : Period :
JPMorgan Chase Technical Analysis Chart | 4-Traders
Technical analysis trends JPMORGAN CHASE
Short TermMid-TermLong Term
TrendsBearishBullishBullish
Income Statement Evolution
Consensus
 
Mean consensus OUTPERFORM
Number of Analysts 30
Average target price 100 $
Spread / Average Target -4,0%
EPS Revisions
Managers
NameTitle
James Dimon Chairman & Chief Executive Officer
Marianne Lake Chief Financial Officer & Executive Vice President
Lori A. Beer Chief Information Officer
Rohan Amin Chief Information Security Officer
Lee R. Raymond Lead Independent Director
Sector and Competitors
1st jan.Capitalization (M$)
JPMORGAN CHASE5.05%363 141
JP MORGAN CHASE & COMPANY22.76%363 141
INDUSTRIAL AND COMMRCL BANK OF CHINA LTD33.33%309 843
BANK OF AMERICA30.23%299 672
WELLS FARGO7.78%291 829
CHINA CONSTRUCTION BANK CORPORATION28.49%240 348