Research Market strategy
By Swissquote Analysts
Published on 09.11.2021
Morning news

McAfee to Be Acquired by an Investor Group for over $14 Billion

Topic of the day

McAfee Corp., a global leader in online protection, announced it has entered into a definitive agreement to be acquired by an investor group led by Advent International Corporation ("Advent") and Permira Advisers LLC ("Permira"), Crosspoint Capital Partners ("Crosspoint Capital"), Canada Pension Plan Investment Board ("CPP Investments"), GIC Private Limited ("GIC"), and a wholly owned subsidiary of the Abu Dhabi Investment Authority ("ADIA") (collectively, "the Investor Group"). As part of the transaction, the Investor Group will acquire all outstanding shares of McAfee common stock for $26.00 per share in an all-cash transaction valued at approximately $12 billion on an equity value basis, and over $14 billion on an enterprise value basis after giving effect to repayment of McAfee debt. The purchase price represents a premium of approximately 22.6% over McAfee's closing share price of $21.21 on November 4, 2021, the last trading day prior to media reports regarding a potential sale of McAfee.

Swiss stocks

The Swiss stock market got off to a somewhat friendlier start to the new week with gains across the board in the leading SMI index. The SMI gained 0.3 per cent to 12,353 points. Among the 20 SMI stocks, there were 15 price gainers and 5 price losers. 28.70 (Friday: 35.54) million shares were traded. The index heavyweight Nestle (-0.8%) was at the bottom of the list after the share suddenly came under pressure in afternoon trading. There was no new news on the company. The big driver for the SMI was Richemont shares (+2.5%). It was bought on the news that activist investor Third Point appears to have built up a significant stake in the luxury products maker. It is now pushing for action to drive up the share price, fashion website Miss Tweed reported, citing unnamed sources. Credit Suisse (+0.9%) also found itself on the winning side. At Alcon (+1.0%), an acquisition provided share price fantasy.

International markets


European equity markets ended Monday's session mixed and close to balance, stalling after a series of record highs last week as they await the release of US inflation figures for October, due on Wednesday. The Stoxx Europe 600 index rose less than 0.1% to 483.6 points. In Paris, however, the CAC 40 set a new closing high of 7,047.48 points, having gained 0.1% as did the SBF 120. The DAX 40 in Frankfurt and the FTSE 100 in London lost 0.1%.Shares in Henkel AG & Co. KGaA fell sharply on Monday after it issued a more downbeat outlook for the full year on continued raw-material and supply-chain woes. At its third-quarter earnings release, the German consumer-goods company confirmed its 2021 outlook for organic growth at 6%-8%, but said its full-year adjusted earnings before interest and taxes margin and adjusted earnings per share would be at the lower end of its previously guided ranges, due to additional negative impacts from increased raw-material and transport costs. Bouygues SA said it has reached an agreement to acquire energy company Engie SA unit Equans, in a move that would make the French conglomerate’s energy-services division its largest by revenue. Bouygues will acquire 100% of the technical-services provider for 7.1 billion euros ($8.2 billion), merging it with its existing energy-and-services arm.

United States

U.S. stocks closed at record highs, while Tesla shares fell after a Twitter poll run by Chief Executive Elon Musk urged him to sell a chunk of his stock. The S&P 500 was up 0.1% as of 4 p.m. ET trading, hitting a record for the eighth consecutive trading session, a feat it hasn't accomplished since 1997. The technology-focused Nasdaq Composite also ticked up 0.1%, while the Dow Jones Industrial Average gained 0.3%. Both indexes reached fresh records. Stocks have rallied in recent weeks on strong corporate earnings and signs that the economic recovery remains on track, including data showing a rebound in job growth in October. The spate of upbeat earnings reports have helped offset concerns that mounting inflation could hurt corporate profits. About 81% of S&P 500 companies that have reported results this season have topped analysts' earnings forecasts, according to Refinitiv. Tesla Inc. shares fell after Chief Executive Elon Musk signaled he was open to selling 10% of his holdings. Shares in the electric-vehicle maker were down 2.9% midday Monday after Mr. Musk, the company’s largest stockholder, launched a weekend poll of his 63 million followers on Twitter, asking them if he should sell the stake, worth around $21 billion at Friday’s market close, to pay taxes. About 58% of the 3.5 million participants voted in favor of the sale and Mr. Musk tweeted that he had been “prepared to accept either outcome.” Monday’s slip took a small sliver off a rally that has carried Tesla shares up 68% this year, propelling the company into a small group with market values topping $1 trillion and making Mr. Musk the world’s richest person. Citigroup Inc. will spend between $1.2 billion and $1.5 billion on personnel costs stemming from the shutdown of its consumer banking business in South Korea. In a regulatory filing Monday, the bank said the costs are related to termination and benefit expenses. Citigroup expects to recognize the charges throughout 2021 and 2022.


Negative signs continued to dominate the stock markets in East Asia and Australia on Tuesday. The decline in the Nikkei-225 is somewhat more pronounced, with the index falling by 0.7 per cent to 29,311 points after initial gains. In China, the Shanghai Composite and the Hang Seng Index are little changed.


Treasury yields eased back in Asia after they rose across the board on Monday, with the benchmark 10-year and 2-year rates climbing by the most in a day since late October, as investors began positioning for global reopening trades and digested approval of the infrastructure package.


UBS lowers AMS target to 19 (19,50) CHF – Neutral
UBS rises Gea target to 50 (48) EUR – Buy
Citi rises Boss target to 63 (60) EUR – Neutral

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