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What Will £5bln Buy You?

19 February 2014 by HCM

According to the market, £5bln will clearly help you buy a UK retailer. There were renewed speculations around MRWLN (Wm. Morrisson Supermarkets Plc) as a group of banks are rumoured to be preparing a £5bln financing package for private equity groups. On the back of these speculations, MRWLN’s risk premium took another leg wider in the afternoon (its 5 year CDS has more than double since the beginning of the year, widening from 70bps to 156.5bps). At the other end of the price action, the Liberty Media sphere was also busy, with Mr Malone allegedly drawing plans for his succession, which would involve assets’ sale. Retailers and Cable have been 2 very popular themes recently. In Europe, it is mainly based on speculation, and it merely shows that the market is a bit short of ideas at the moment.