European Event-Driven Analyst

Jesus Rodriguez Aguilar

Jesús is an Insight Provider (Event-driven) on the Smartkarma network, where he looks across sectors at opportunities arising from securities mispricing (both credit and equity), share classes, bid announcements, prospective bids, and special situations. He has served as Economic and Business Advisor at the Spanish Congress in Madrid. Prior to that, he has worked in the City of London: as a Credit Analyst at Bloomberg; Event-driven associate at former boutique European Research; and doubled as Special Situations and Equity-linked VP (convertible bonds) at Merrill Lynch. Jesús has an MBA from the London Business School, a BA (Hons.) degree in Economics from the Complutense University in Madrid, and a BA (Hons.) in Law from U.N.E.D., also in Madrid.

Concordia/Rothschild: Simplified Offer Filing

Concordia/Rothschild: Start of Offer Period

Event-Driven

<ul>
<li>Concordia (38.9% stake) points out that none of Rothschild's businesses require a high amount of capital thus a listing brings more troubles than advantages (the enlarged family concert owns 54.5%).</li>
<li>Lo and behold, a possible €48/share cash offer, partly financed with Rothschild's cash holdings (via dividend and extraordinary dividend) is the solution, arguably cheap for a high-quality firm.</li>
<li>My conservative Fwd P/E-based SOTP valuation is €53.9/share. There's some margin to improve the offer. Spread is 2.3%/5.6% (gross/annualised). I would be long the shares.</li>
</ul>


Concordia (38.9% stake) points out that none of Rothschild's businesses require a high amount of capital thus a listing brings more troubles than advantages (the enlarged family concert owns 54.5%).
Lo and behold, a possible €48/share cash offer, partly financed with Rothschild's cash holdings (via dividend and extraordinary dividend) is the solution, arguably cheap for a high-quality firm.
My conservative Fwd P/E-based SOTP valuation is €53.9/share. There's some margin to improve the offer. Spread is 2.3%/5.6% (gross/annualised). I would be long the shares.


Concordia/Rothschild & Co: Back to the Origins