WSJ : Sugar Industry Merger Challenged by Justice Department

Sugar Industry Merger Challenged by Justice Department
Antitrust lawsuit alleges U.S. Sugar’s proposed acquisition of Imperial Sugar is anticompetitive

WASHINGTON—The Justice Department filed an antitrust lawsuit challenging U.S. Sugar’s proposed purchase of rival Imperial Sugar, arguing the tie-up would lead to consumers and businesses paying more for refined sugar.

The suit, filed Tuesday in a Delaware federal court, is the fourth major deal challenge in recent months from the department, which has been following through on a Biden-era enforcement pledge to take a harder line against industry consolidation.

Privately-held U.S. Sugar, headquartered in Clewiston, Fla., farms more than 200,000 acres of sugar cane in the state. In March it announced an agreement to purchase Texas-based Imperial Sugar, whose operations include a large refinery in Georgia, from Dutch-based Louis Dreyfus Company B.V. The deal was valued at about $315 million, according to the Justice Department lawsuit.

The department alleged the deal would leave most sales of refined sugar across the Southeast in the hands of only two producers, which it said was an unlawful reduction in competition that would spur higher prices for a product vital to the nation’s food supply.

“U.S. Sugar and Imperial Sugar are already multibillion-dollar corporations and are seeking to further consolidate an already cozy sugar industry,” said the department’s new antitrust chief, Jonathan Kanter, who won Senate confirmation last week.

Mr. Kanter said the deal “substantially lessens competition at a time when global supply chain challenges already threaten steady access to important commodities and goods.”

Neither U.S. Sugar nor Louis Dreyfus immediately responded to requests for comment.

When the companies announced their agreement, they said the deal would boost dependable sugar supplies with increased production and reduced costs.

Tuesday’s lawsuit marks the latest sign of the Biden administration’s tougher stance on antitrust enforcement. Earlier this year it blocked a more than $30 billion insurance-industry merger between Aon PLC and rival Willis Towers Watson PLC. It is currently challenging a partnership between American Airlines Group Inc. and JetBlue Airways Corp. as well as a deal that would combine two top publishers, Penguin Random House and Simon & Schuster.

WSJ : Elon Musk’s Tax Bill on Stock Options Fell Along With Tesla’s Share Price

Elon Musk’s Tax Bill on Stock Options Fell Along With Tesla’s Share Price
Sliding stock price lowers CEO’s tax bill by about $380 million from peak but also limits deductions the EV maker can take

Elon Musk already faces a federal tax bill approaching $2.7 billion on exercising Tesla Inc. TSLA 1.74% stock options. It would have been bigger if the company’s share price hadn’t fallen after he tweeted about selling stock.

The stock fluctuations have financial consequences for the U.S. government, Mr. Musk and Tesla. When the share price goes down, it not only reduces how much tax the Tesla chief executive owes the U.S. government in the short term, it also lowers his total potential tax payments linked to those shares if he sells them in the future. Any such later sales also may not be taxed by California because Mr. Musk moved his residence to Texas last year.

At the same time, exercising the options at a lower stock price could weigh on the company he controls. The tax deductions that Tesla can claim for that part of Mr. Musk’s compensation package are effectively reduced if he exercises options at lower share prices.

The electric-vehicle maker’s chief executive initiated a wave of exercising Tesla options and selling shares on Nov. 8, and he has now turned more than six million options into shares, selling about $3 billion worth to cover tax withholding along with about $6 billion of other shares.

Mr. Musk made the moves while arguing with lawmakers over tax policy and after conducting a Twitter poll about whether he should liquidate 10% of his stockholdings in Tesla, a plan Twitter users backed. Tesla’s stock slumped more than 15% in the week following the Twitter poll, a period that also included the market debut of electric-vehicle rival Rivian Automotive Inc.

The stock-price declines had a significant impact on the tax he owes, lowering it by more than $380 million so far from its recent all-time peak, an analysis by The Wall Street Journal of Mr. Musk’s and Tesla’s securities disclosures shows.

The tax figures are estimates; his actual bills may vary.

On Sept. 14, weeks before his first public comments about selling or his Twitter poll, Mr. Musk had authorized a plan under which he would exercise at least some of his nearly 23 million vested stock options set to expire worthless in August 2022.

The day he set the plan, Tesla shares closed at $744.49. At that price, exercising the options would have cost him $290.50 in federal taxes per share. A day earlier, congressional Democrats had proposed raising tax rates that, if enacted, would mean options exercised in 2022 at that day’s price would cost Mr. Musk $331.84 each.

Mr. Musk, the world’s richest person on paper with a net worth of more than $300 billion, according to the Bloomberg Billionaires Index, doesn’t take a cash salary from Tesla and has at times described himself as cash-poor. Before November, he rarely sold Tesla stock. In September, he publicly signaled that he would face what he called a huge tax bill on exercising options.

Tesla’s shares have risen sharply since September. The company posted strong quarterly results, and rental-car company Hertz Global Holdings Inc. said it had ordered 100,000 Teslas, sending the valuation of Mr. Musk’s company above $1 trillion.

On Nov. 4, before Mr. Musk exercised an option under the plan or disclosed its existence, Tesla stock hit an all-time closing high of $1,229.91 a share. At that price, Mr. Musk could expect a federal tax bill of about $481.51 for each option he exercised and even more in 2022 under the stiffer Democratic social spending and climate bill that passed the House Nov. 19.

Mr. Musk has reported exercising roughly 6.4 million options through Nov. 19, and his average federal tax cost per share is about $421.59. That is higher than it would have been in September but more than 12%, or $382 million, below the early November highs. Because he is selling newly obtained shares to pay the taxes, he generally ends up with the same number of shares regardless of the price, just at a lower cost basis and with less cash owed to the government than when the price was higher.

Neither Mr. Musk nor the electric-vehicle company responded to requests for comment. They haven’t disclosed the details of the preset trading plan. Such plans can prompt sales or purchases at specific dates or share prices.

As Mr. Musk continues to exercise his options, his tax bill shrinks if Tesla’s share price falls, but the company fares worse—it gets smaller tax deductions for Mr. Musk’s compensation at lower share prices. For every $1 million that Mr. Musk’s option-exercise income goes down, he saves $370,000 in federal income taxes, and Tesla loses $210,000 worth of deductions.

That tension can be lessened when the fortunes of a company and its largest shareholder are intertwined if they are trying to get the lowest combined tax bill.

“You can see there may be an incentive in combination for the parties to lowball the value, that Tesla only gets a 21% deduction and Musk is picking it up at 37%,” said Steve Rosenthal, senior fellow at the Tax Policy Center in Washington. “Every dollar lower saves, collectively, 16 cents for the two parties.”

Mr. Musk, in a Nov. 13 tweet, pointed to his sales of Tesla stock that he had held for a longer time than the ones just obtained by options. He owes more in capital-gains tax than he would have if he had instead sold his newly obtained shares. “A careful observer would note that [this is]... closer to tax maximization than minimization,” he wrote.

Mr. Musk’s tax for exercising his options is calculated on the difference between the price he has to pay to exercise the option, the so-called strike price, and the value of the shares when the option is exercised. The options that expire in August cost $6.24 to exercise and the difference between that and the actual share price is taxed as ordinary income. That is a 37% top tax rate plus 2.35% in Medicare taxes and likely more in California taxes because he lived and worked there during part of the time he held the options.

Even for a long-term holder of Tesla stock, as Mr. Musk has been, there are other reasons a near-term share dip around the time of exercising options benefits him as he increases his holdings.

If Mr. Musk thinks Tesla is a good long-run investment above current prices, his incentive is to spend as little money as possible to secure more shares. Unlike a typical stock sale where the executive ends up with more cash after taxes if the share price is higher, these transactions are different. They typically require him to spend cash or surrender shares and leave him with shares, but not cash.

Beyond that, future gains above the exercise price are taxed as capital gains. If held for more than a year and then sold, that means a 23.8% rate under current law or a 31.8% rate under the Democratic plan, both lower than ordinary income tax. Those gains also would likely not be taxed in California, because Mr. Musk moved to Texas last year.

If Mr. Musk, 50 years old, holds those shares until his death, he wouldn’t pay any income tax, a policy he labeled “questionable.” His heirs would receive the shares and would owe income taxes only when they sell and then only on the further appreciation after his death. Estate taxes may apply.

“Probable capital allocation skill of heirs is lower than original creator,” he tweeted this month, “so I am in favor of an estate tax.”

FT : Madame Rêve and the rebirth of Paris’s smartest neighbourhood

Madame Rêve and the rebirth of Paris’s smartest neighbourhood
The launch of a luxury hotel is the latest makeover turning the quartier into the city’s new ‘golden triangle

The Parisian waiter bends over the candle at an empty table and fiddles with it. He then repeats the ritual at each adjoining table. Finally, I realise what he is doing: he is aligning the candles into a perfect line, just as the nearby Arc de Triomphe du Carrousel is perfectly aligned with the Arc de Triomphe. The waiter straightens himself, triumphant: he has perfected the ground-floor café of Paris’s new Madame Rêve hotel. In this underlit room of warm wooden colours and eight-metre ceilings, almost everybody striding along the oak floors looks beautiful.

The people who put together the hotel have the Parisian eye, which can alight on the tiniest blemish in a room: a woman wearing the wrong colours, a tasteless bag sticking out from a stall, a foreigner talking too loudly. An imaginary red alert flashes on the blemish, and perfection is restored. In 2021, the Parisian eye has been applied not just to Madame Rêve but to the entire 1st arrondissement. For good and bad, central Paris has undergone top-end cosmetic surgery.

The 1st is more or less the geographical heart of Paris and therefore, arguably, of the world. It’s a tiny arrondissement, just 1.83 sq km, much of which consists of the Louvre, the Tuileries Garden and the Forum des Halles shopping centre. The building that has become Madame Rêve originally opened in 1888 as a giant, arcaded post office, a kind of Haussmannian people’s palace. At the time, the 1st was a packed and booming neighbourhood with perhaps 70,000 inhabitants. There were fabulous parties and newly rich industrialists prowling for excitement. A few steps from the post office were the Bourse de commerce and the food market at Les Halles, the “belly of Paris”. Around the corner but still inside the arrondissement, the Samaritaine department store showcased the luxuries of the age.

Later the arrondissement faded. The Bourse lost its grandeur. The Halles market was torn down in 1971 and re-arose as a hideous, mostly underground shopping mall. Until recently, quite ordinary people could afford to live in the 1st. In early 2002, when I moved to Paris, apartment prices in the arrondissement averaged less than €4,000 per sq m.

The 1st’s marginalisation continued with La Samaritaine’s closure in 2005. Meanwhile, the quartier’s arcaded main drag, the Rue de Rivoli, degenerated into an angry traffic jam with mid-range shops. The post office was the last monument to go. It has a place in Parisian popular culture as the city’s only “la Poste” that stayed open nights. Everyone has stories of arriving here at five minutes to midnight to pay taxes and get the all-important stamp showing you had beaten the French state’s deadline. But as administration moved online and people stopped sending letters, the massive post office became redundant. It too closed in 2015. After that, you would come to the 1st for the Louvre, the Tuileries or work, but not for much else. In 2018 the arrondissement had just 16,093 inhabitants.

The revival began with the second conversion of Les Halles in 2016, this time into a park and passable shopping mall with an open, canopied roof. But the arrondissement’s full makeover has occurred in just the past 18 months. After the pandemic hit, the Rue de Rivoli was closed to cars and turned into a cycling street with four bike lanes. Suddenly, you could get from the Louvre to almost anywhere in central Paris in 10 minutes. Meanwhile, in a locked-down world hungry for beauty, the global success of the Netflix series Call My Agent!, about a fictional talent agency located at 149 Rue St Honoré in the 1st, restored some of the arrondissement’s glamour.

Last May, the Bourse reopened, now housing the billionaire François Pinault’s contemporary art collection. A month later, La Samaritaine, owned by Pinault’s billionaire rival Bernard Arnault, emerged from its 16-year makeover. Madame Rêve joined them in October. In 2024 the Fondation Cartier for contemporary art is scheduled to arrive, moving from southern Paris to a new home on the Place du Palais-Royal, five minutes’ walk from the hotel. Boosters of the 1st say it’s replacing the chicest section of the 8th as the city’s new “triangle d’or” — golden triangle. Given the wealth pouring in, “gold” may be understating it. Apartment prices in the 1st have already nearly quadrupled this century, to more than €12,000 per sq m.

Laurent Taïeb, creator of Madame Rêve, has one thing in common with Donald Trump: in 2016 the latter converted Washington DC’s Old Post Office into the Trump International Hotel, currently being sold and renamed after being tarred by his presidency. But Taïeb, previously a designer of cafés and restaurants, says: “My point of departure was to respect the history and to cite it.” Madame Rêve’s café, for instance, retains the immense ceilings and pillars of the old post office’s dispatch room.

In Madame Rêve, explains Taïeb, the ground floor evokes the 1880s. The upper two levels, built on top of the former post office, carry the visitor back into the 21st century. Almost everywhere in the hotel you are sublimely aware of Paris. This isn’t one of those standard-issue luxury palaces where you could be in Los Angeles or Macau. Half of the 82 rooms, which are all on the same floor, overlook the Haussmannian rooftops and the neighbouring 17th-century St-Eustache church. St-Eustache isn’t quite Notre-Dame, and Taïeb could surely have built a better church himself, but he praises its “haunted castle” aspect. His other rooms overlook a soothing interior garden, because the new theme of Parisian architecture is the “vegetalisation” of this hitherto stone city. The rooms are decorated with 800 items of philately-themed art that Taïeb bought from an anonymous collector. Very unusually for Paris, many rooms have terraces.

The pride of Madame Rêve will be its rooftop bar, which opens next spring, and where you will feel you are in a Disney film of Paris. In a four-minute stroll around the plant-filled, tree-lined roof, you can take in the Eiffel Tower, Notre-Dame, the Panthéon, the Sacré-Coeur church, the Pompidou Centre and also, unfortunately, the 1973 Montparnasse Tower. Taïeb, excited by the new trend of remote work, hopes that Parisians and laptop-carrying nomadic workers alike will throng the roof and the hotel’s two restaurants. And as if to claim absolution for this palace of international consumption, rooftop solar panels will provide half the building’s hot water.

Inside, Taïeb’s eye and nose have perfected every detail. The lifts and corridors are scented with the hotel’s signature perfume, a mix (I am told) of rose and cedar. The lamp fittings are in the shape of a woman’s décolleté with corset — a nod to the imaginary Madame Rêve herself, title character of Alain Bashung’s 1991 song. Taïeb brought in the best French craftspeople to create vases and numerous other objects that draw on a late 19th-century aesthetic. Wandering around the hotel, you sometimes feel that the only blot on this landscape is you.

I asked Taïeb, a disarmingly cheerful, hoarse-voiced bald man, whether the beauty of his hotel was intimidating. “Of course,” he admitted. “It can be. But we have tried to create an emotional pathway.”

My pathway was more hedonic. In the downstairs café with its Sardinian chef and Mediterranean cuisine, I had arguably the best squid I’ve ever eaten. The upstairs restaurant, La Plume, about to open, will be Japanese-French. The highlight of my stay was a 90-minute massage in the spa. I don’t think I have ever actually felt relaxed, but I have read about it in books and this is what it must be like.

Every time I left Madame Rêve I was assailed by Fear of Missing Out, but I dutifully explored everything within a seven-minute walk. The gardens of the Palais-Royal are possibly the best stroll in Paris, and sufficiently hidden away to remain one of this city’s least overcrowded beauty spots. Pinault’s collection at the Bourse was perfectly enjoyable. Behind it, the Forum des Halles — the traditional entryway to Paris from the suburbs by local train — is an open garden where a much more proletarian crowd sits eating takeaway lunches. Les Halles has gone from eyesore to democratic public space — a necessity in a city whose people are cooped up in tiny apartments.

The new Samaritaine is more than a shop. It aspires, fabulously, to be a Parisian monument. The staff member who helped me jostle through the throng one recent weekday afternoon said that in the first three months since reopening, the “Samar” notched up 1.5m visitors, far more than expected. The new shop offers a mix of Parisian high style and “street”. The English word has become a term of praise in upmarket Paris and can denote anything from street fashion to street architecture to La Samaritaine’s “Street Caviar by Prunier”, which sells caviar sandwiches or even burgers to take out. Outside, on the newly pedestrianised Rue de la Monnaie, Parisians sit in the sun admiring the store’s twin facades: one an impeccable example of art nouveau, its neighbour impeccable art deco. Only in Paris. Here’s a shopping experience Amazon cannot replace.

As I said goodbye to the high life, I felt that central Paris had jumped from gentrification to plutocratisation. Even many people in the 1 per cent of French incomes can no longer afford to buy here. In another era, the post office and perhaps the Bourse might have been converted into housing. Instead, practically the only members of the lower orders still living in the 1st are the poor souls freezing in sleeping bags on the Rue de Rivoli at night. I put it to Taïeb that today’s arrondissement of millionaires and monuments recalls the inequality of the 1880s. “Certainly,” he said. “But everyone can enjoy it. You can get a coffee in our café that costs about the same as in other Paris cafés. Anyone can walk into the Samaritaine.”

It’s true. Paris is morphing from a place to live in, or even an open-air museum, into an open-air luxury department store to drop into. You can lament the change, but no city could have accomplished it more elegantly.

FT : Bulgari and MB&F develop joint watch project

Bulgari and MB&F develop joint watch project
The jewellery powerhouse’s decision to work with the niche watchmaker may bring similar tie-ups throughout the industry

Sitting by a window in a quiet corner of Geneva’s Ritz-Carlton hotel, sunlight pouring in on their smiling faces, MB&F’s Maximilian Büsser and Bulgari’s Fabrizio Buonamassa Stigliani seem relieved that — at last — they can talk about what they have been working on for the past two years.

When the founder of boutique Swiss watchmaker MB&F originally met the creative director of Italian jewellery house Bulgari at the 2017 Dubai Watch Week fair, it was, as Büsser says, “love at first sight”. Two years later, they agreed to work on a project together.

And today — just as the fifth edition of the biannual Middle Eastern watch show gets under way — the pair have announced the Legacy Machine FlyingT Allegra: a domed wristwatch covered in precious stones.

While tie-ups between watchmakers and jewellery houses are not unheard of, the collaboration of a niche independent such as MB&F with a global luxury powerhouse is highly unusual — and likely to send ripples to some corners of the watch industry.

As businesses, MB&F and Bulgari could not be more different. Büsser says the company he founded in 2005 produced 215 watches and turned over SFr15m ($16.2m) last year. Bulgari does not publicly disclose its annual figures but, according to Morgan Stanley’s most recent annual watch industry report, published last March, the Italian company sold an estimated 44,000 watches in 2020, with turnover of SFr261m.

Bulgari’s owner, the giant French luxury conglomerate LVMH, reported revenues of €3.4bn in 2020 for its entire watches and jewellery division (which includes other Swiss watchmakers, such as Tag Heuer and Hublot).

Both men appear conscious of the unlikely association. “A multibillion-dollar company speaks to a midget?” asks Büsser, his pitch rising. “This is monumental, because it never happens.”

“For us, it was dangerous,” says Buonamassa Stigliani, stoically. “For me, personally, it was dangerous. We don’t need to make this kind of collaboration. For us, it’s a different segment. We don’t have a watch like this in our assortment.”


In total, there will be 40 watches, 20 in red gold and 20 in white gold. MB&F took responsibility for the watchmaking, with Bulgari doing the same for the jewellery. Both companies will take 10 of each model to sell to their clients. Büsser says the equal split reflects a similar investment arrangement between the two companies, adding that a collaboration “should never be a [purely] business decision because then the product will be skewed”.

But, according to Bulgari’s chief executive Jean-Christophe Babin, this is not a one-way street, even if the sale of 20 watches — each costing $185,000 — will make a far greater impression on MB&F’s bottom line. For him, the benefit will be reinforcing Bulgari’s status as a fine watchmaking company.

The watch is based on MB&F’s 2019 critical hit, the Legacy Machine FlyingT, designed by Büsser for his wife (“T” is for “Tiffany”, his wife’s name, as well as for “tourbillon”). Buonamassa Stigliani was then given free rein to redesign what was MB&F’s first model for women. The echo of the original — with its bulbous form and dizzying vertical flying tourbillon — is still very much there, but it now has a bespoke case and what Buonamassa Stigliani calls a “chaotic mix-and-match of precious stones in different shapes” set into the case and dial, in the spirit of Bulgari’s Allegra jewellery collection.


Büsser, despite being a self-confessed “dictator”, has past form in releasing his inventive, highly esoteric watch designs into the hands of fellow industry creatives. The “&F” in the brand name stands for “and friends”.

At first, that meant working with watchmakers and movement engineers to bring his creative vision to life. But, in 2009, he set a precedent for himself by volunteering his HM2 design to industry veteran Alain Silberstein. More recently, he worked with renowned hand-engraver Eddy Jaquet and Chinese sculptor Xia Hang, but he also partnered with fellow independent Swiss watchmaker H Moser & Cie earlier in the year.

“There’s some sort of masochism in it, seeing my pieces modified in a way I’d never do it,” says the 54-year-old Swiss. “When I do a collab, I have to let go. It’s a dictatorship detox.”

Although Büsser is no stranger to partnerships, the coming together of two of the industry’s most prolific creative forces marks new territory for both men considering the difference between the two companies.

On the Bulgari side, Buonamassa Stigliani is often described as the natural successor to Gerald Genta, the Swiss artist and watch designer who defined 20th century luxury watchmaking with designs such as the Royal Oak and the Nautilus, commissions for Audemars Piguet and Patek Philippe respectively. The Italian’s Bulgari Octo and Serpenti watches are also widely considered to be modern-day icons. Earlier this month, a version of the Octo Finissimo won the top prize at the prestigious Grand Prix d’Horlogerie de Genève, usually referred to as the Oscars of the watch world.

“It was a great pleasure for me,” says the 50-year-old of the collaboration with MB&F. “The biggest frustration as a watch designer when you play with a jewellery brand is that you cannot explain or show the power of these [precious] stones in a watch, because the dial and the glass are so close together.” The original FlyingT’s snow globe-like dome offered more space than you would find in a regular wristwatch.

Both red and white-gold models are covered in more than three carats of diamonds, but the standout decorations are the five enormous coloured stones set on to the dial — tsavorites, amethysts, tanzanites and tourmalines appear on both, with the red gold carrying a rubellite and the white gold version a topaz.

From above, the Legacy Machine FlyingT Allegra’s towering flying tourbillon looks like a mechanical fish in a tropical tank. From the side, it looks more like the flying car from The Jetsons. Büsser describes it as a “flying saucer” and considering some of his past creations have been inspired by forms as diverse as a frog and a Can-Am racecar, this appears to be a compliment to Stigliani’s design.

Nevertheless, the process was clearly painful for him. “I am 100 per cent a symmetrical guy,” says Büsser. “So this was gut-wrenching. It’s not my language, but that’s why it’s interesting. My wife buys me things I wouldn’t buy for myself and her gifts take me somewhere I wouldn’t otherwise go. That’s basically what we’re doing here.”

When asked about the possibility of further collaborations, Büsser simply says the Legacy Machine FlyingT Allegra is “like a concept car”. Instead, the two creative directors are content to marvel at what they have created together — “our baby”, as Buonamassa Stigliani refers to it. “Fabrizio took the FlyingT,” says Büsser pointing to a drawing dated 15 June 2020, “and honestly, in 27 seconds, designed what you see here.”

FT : Martin Gilbert battles rival in effort to take over River and Mercantile

Martin Gilbert battles rival in effort to take over River and Mercantile
Takeover offers push London asset manager’s shares up 12% as bidding war appears likely

Martin Gilbert is battling a rival suitor for the London-listed asset manager River and Mercantile as he attempts to create a new competitor in the UK’s investment industry.

The veteran dealmaker has submitted a bid for River and Mercantile, which has also received an offer from Premier Miton, a rival fund house led by chief executive Mike O’Shea.

A bidding war now appears likely with River and Mercantile’s shares surging 12 per cent higher during morning trading in London on Tuesday.

The rival bidders have until December 21 to confirm their takeover offers. Neither has disclosed any pricing details of the bids they have already made.

AssetCo, the Aim-listed acquisition vehicle chaired by Gilbert, at present owns 5.85 per cent of River and Mercantile, while Premier Miton holds a 5 per cent stake.

Gilbert is one of the UK investment industry’s most prolific dealmakers. He founded Aberdeen Asset Management in 1983 and after multiple acquisitions then helped to engineer its merger with Standard Life in 2017 to create the company now known as Abrdn.

Gilbert is deputy chair of River and Mercantile but has recused himself from the company’s board while discussions about a deal take place.

Earlier this year, AssetCo acquired Saracen Fund Managers, the Scottish asset management boutique, and it also holds stakes in Rize ETF and Parmenion, an advisory business previously owned by Abrdn.

Peel Hunt, the broker, said Premier Miton needed to scale up to achieve its financial potential and was likely to be able to extract larger cost synergies from any deal with River and Mercantile.

Peel Hunt added: “AssetCo is keen to scale up, has an existing platform (through its Saracen business) and might be able to part fund any deal in cash.”

An analyst who declined to be named said the board of River and Mercantile faced a “real dilemma” in evaluating the takeover offers, which were both likely to be a mixture of cash and shares.

“There is significant uncertainty attached to the valuation of AssetCo’s shares, which trade at a very wide discount . . . This could affect the structure and value of the AssetCo offer.”

Both approaches are conditional on the completion of the sale of River and Mercantile’s solutions business to Schroders for £230m in a deal that was agreed last month. The completion of that deal would leave R&M with assets of about £5.6bn.

Mike O’Shea has served as the chief executive of Premier Miton since November 2019 following the merger of Premier Asset Management and Miton. O’Shea joined Premier in 1986 and rose to become chief in 2005.

Premier Miton’s share price dipped 0.9 per cent during morning trading in London while shares in AssetCo were unchanged.

FT : Soriot links AstraZeneca jab to low UK hospitalisation rate

Soriot links AstraZeneca jab to low UK hospitalisation rate
Chief executive says more data are needed to establish why Europe currently has a higher rate of hospital admissions

The AstraZeneca vaccine can help stave off serious Covid-19 illness in older people for longer, according to the head of the Anglo-Swedish pharmaceuticals company, as he noted that the UK has had fewer hospitalisations than Europe recently.

The vaccine developed by AstraZeneca and Oxford university has been used extensively across the UK, where the number of people admitted to hospital has continued to fall even as infections are increasing.

But it was used much less in Europe, where a surge in infections and hospitalisations has put health services on high alert. Austria, where hospitalisations are at 28.7 people per 100,000 compared with the UK’s 12 per 100,000, this week reimposed a full lockdown to help slow the spread of coronavirus.

Speaking on the BBC’s Today programme, AstraZenca chief executive Pascal Soriot said: “It’s really interesting when you look at the UK, there was a big peak of infections, but not so many hospitalisations relative to Europe.”

Asked if the big rise in European hospitalisations was linked to the bloc’s failure to use the Oxford/AstraZeneca vaccine in older people, Soriot replied: “What I’m saying is that T-cells do matter and in particular as it relates to the durability of the response, especially in older people, and this vaccine has been shown to stimulate T-cells to a higher degree in older people.”

T-cells, which help the body “remember” past infections and kill pathogens if they reappear, influence how long people remain resistant to diseases that they have previously contracted or been immunised against.

Soriot added: “We haven’t seen many hospitalisations in the UK, a lot of infections . . . But what matters is: are you severely ill or not? Are you hospitalised or not?”

Pressed as to whether there was a potential connection with the Oxford/AstraZenca jab, he said: “There’s no proof of anything, we don’t know. But we need more data to analyse this and get the answer.”

The UK used AstraZeneca’s jabs heavily at the start of its vaccination campaign, when it began immunising older and more vulnerable people first. Many European countries stopped using it, especially for younger people, because of fears about a possible link with rare blood clots.

Some scientists have disputed the implication that mRNA vaccines such as the Pfizer jab do not provide good T-cell protection.

Danny Altmann, professor of immunology at Imperial College London, said any suggestion that mRNA vaccines do not induce T-cell protection was “incorrect on so many levels”.

Another immunologist, Andrew Croxford, replied: “Oh gawd.”

The Oxford/AstraZeneca vaccine faces an uncertain future in the UK after being sidelined from the booster programme, which the country is relying on to avoid further restrictions.