Red Sea Shipping Risks

A Colorado court disqualified Trump from its 2024 ballot, Google owes $700M in a Play store settlement, Citi is facing a #MeToo claim, the IRS may be forgiving $1B in taxpayer penalties, Brazil’s credit rating was raised by the S&P, and shippers are avoiding the Red Sea.

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Litquidity Capital
December 20, 2023

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Good Morning,

A Colorado court disqualified Trump from its 2024 ballot, Google owes $700M in a Play store settlement, Citi is facing a #MeToo claim, the IRS may be forgiving $1B in taxpayer penalties, Brazil’s credit rating was raised by the S&P, and shippers are avoiding the Red Sea.

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Let’s dive in.

Before The Bell

As of 12/19/2023 market close.

Markets

  • US stocks rose thanks to the Fed’s recent dovish shift on rates

    • The Dow led indices with a 0.68% gain

  • European stocks rose after comments from European Central Bank officials and data encouraged optimism for rate cuts 

  • Oil futures continue to climb due to Red Sea shipping risks

Earnings

  • FedEx shares tumbled ~8% after lowering its revenue forecast due to weaker demand (CNBC) 

  • What we're watching this week: 

    • Today: General Mills, Micron, MillerKnoll, BlackBerry

    • Thursday: Nike, Carnival 

  • Full calendar here

Headline Roundup

  • Trump disqualified from 2024 ballot in Colorado, court says (BBG)

  • Google to pay $700M in Play store settlement (WSJ)

  • Citi suit raises #MeToo claims at Wall Street’s top levels (BBG)

  • IRS zaps nearly $1B in penalties for taxpayers (WSJ)

  • Brazil’s credit rating raised by S&P after overhaul of tax code (BBG)

  • The office market had it hard in 2023. Next year looks worse (WSJ)

  • Investment Firm H.I.G. scraps plans for future standalone tech funds (BBG)

  • Shippers have already diverted about 35B in cargo from the Red Sea amid fears of attacks (CNBC)

  • Singapore tightens vape enforcement on travelers amid global crackdown (BBG)

  • Tesla wannabes are running out of road (WSJ)

  • Tougher French immigration bill passes, Macron’s parliament majority wobbles (RT)

  • Private shale drillers set to cut spending after boom in 2023 (BBG)

  • U.S. Bank fined $36M for freezing unemployment debit cards during COVID-19 pandemic (CNBC)

  • Comcast says data of 36M accounts was compromised in breach (WSJ)

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Deal Flow

M&A / Investments

  • German national railway company Deutsche Bahn began the sale process for its DB Schenker logistics unit, which could be worth as much as $21.3B (BBG) 

  • Spain will acquire a stake in Telefonica worth as much as $2.2B through its investment vehicle Sepi as Saudi Arabia builds up its own position in the company (BBG) 

  • The State of Berlin will acquire state-owned Swedish national power company Vattenfall’s district heating business in Berlin for $1.8B (RT) 

  • European retailers Intermarche and Auchan Retail will acquire hypermarket and supermarket stores valued at $1.5B from Casino Guichard Perrachon, which needs cash as it undergoes a debt restructuring (BBG) 

  • Carlyle Group and Insight Partners acquired risk-management software and services provider Exiger for ~$1.2B (WSJ)

  • Gina Rinehart and Chile’s SQM agreed to jointly acquire Western Australian lithium prospect Azure Minerals for $1.1B after Rinehart disrupted an earlier bid for the business in October (FT) 

  • Blackstone will sell its entire $833M 23.6% stake in India's largest real estate investment trust Embassy Office Parks (RT) 

  • Kodiak Gas Services agreed to buy CSI Compressco in an $854M all-stock deal (MW) 

  • Spanish renewable power company Acciona Energias is looking to sell a portfolio of solar and wind power assets in Spain worth as much as $547M (RT) 

VC

  • UK-based consumer lending fintech company Updraft raised a $346M debt / equity deal led by Jefferies and Santander (EU)

  • Lightmatter, a startup designing photonic chips to speed up computing, raised a $155M Series C-2 at a $1.2B+ valuation led by GV and Viking Global Investors (BW)

  • 3D metal printing startup Seurat Technologies raised a $99M Series C led by NVIDIA (PRN)

  • Employee-centric healthcare network solution Employer Direct Healthcare raised $92M in a secondary investment at a $1B valuation led by Insight Partners (PRN)

  • Lassen Therapeutics, a clinical-stage biotech company developing antibody therapeutics for fibrotic diseases, raised an $85M Series B led by Frazier Life Sciences and Longitude Capital (BW)

  • Cybersecurity training startup SimSpace raised a $45M round led by L2 Point (TC)

  • NewLeaf Symbiotics, an agricultural biotech startup focused on the discovery, production, and commercialization of products containing microbes, raised a $45M Series D led by Gullspång Re:food (PRN)

  • Atavistik Bio, a biotech company discovering the next generation of precision allosteric therapeutics inspired by the body’s natural regulators, raised a $40M funding round led by The Column Group, Lux Capital, and Nextech Invest (AB)

  • Anti-ransomware startup Halcyon raised a $40M Series B led by Bain Capital Ventures (TC)

  • Unnatural Products, a biotech startup combining AI and chemistry to create targeted therapeutics, raised a $32M Series A led by Merck Global Health Innovation Fund (FN)

  • Sweetch Energy, a renewable energy company specializing in osmotic energy, raised a $27.5M Series A led by Révolution Environnementale et Solidaire (FN)

  • Dog cancer treatment startup ImpriMed raised a $23M Series A led by SoftBank Ventures Asia (TC)

  • Agtonomy, a startup specializing in autonomous and AI solutions for agriculture, raised a $22.5M Series A led by Momenta (FN)

  • ScaleOps, a startup automating Kubernetes configurations, raised a $21.5M Series A led by Lightspeed Venture Partners (TC)

  • TuMeke, a computer vision platform that automatically assesses injury risk in manufacturing facilities, raised a $10M Series A led by Intel Capital (PRN)

  • Salt Labs, a loyalty and payments technology company, raised $8M in funding from Third Prime (PRN)

IPO / Direct Listings / Issuances / Block Trades

  • Lendbuzz, a US auto loans platform using AI to offer auto loans to customers without credit history, hired investment banks for an IPO that could value the fintech at over $2B (RT) 

  • ServiceTitan, a startup that makes software to help contract workers manage their businesses, revived preparation for an IPO in 2024 (RT)

Debt

  • Chemicals producer BASF is raising $1.5B through privately-placed debt (BBG) 

  • Engineering firm Robert Bosch is raising $1.2B through a private debt market that caters to blue-chip companies (BBG) 

  • High-end fitness club chain Equinox is looking to raise over $1B through a mix of new debt and preferred equity to refinance $1.5B of debt coming due early next year (WSJ)

  • India’s Vedanta approved raising as much as $409M in the local bond market (BBG)

Fundraising

  • Technology-focused middle market PE firm Clearhaven Partners raised over $580M for its Clearhaven Fund II (WSJ) 

  • Partech, a Paris, France-based tech investment firm, launched a $395M venture fund (FN) 

  • Pivotal Life Sciences, a global investment firm dedicated to investing in companies involved in healthcare innovation, closed its Pivotal bioVenture Partners Fund II at $389M (FN) 

  • Turnspire Capital Partners, an NYC-based PE firm, closed its Turnspire Value Fund II at $275M (FN)

Crypto Corner

  • Do Kwon will not be imminently extradited to either the US or South Korea after a Montenegro appeals court annulled an earlier ruling (BBG) 

  • Bankrupt crypto exchange FTX Trading announced a settlement with liquidators for FTX's Bahamas unit (RT)

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