CMA CGM + Bolloré Logistics – 'this is not the end of the story'
Only half way there, it seems
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UPDATE: The Loadstar apologizes for any inconvenience caused to CEVA Logistics resulting from the mistaken publication of a draft article written by The Loadstar’s financial columnist, which briefly appeared online. The published article represents the opinion of the columnist, although it also acknowledged that CEVA exited 2014 with positive momentum, as reported in its recent fourth quarter earnings announcement.
Ceva Logistics has mostly been in the news for the wrong reasons since the onset of the credit crunch. The key question ...
Comment on this article
Sam
March 20, 2015 at 11:23 amWhy most talented people are leaving and who is staying ?
Where are company pipeline wins ?
Where is the culture that supports honest discussions ?
Where are true leaders who listen and care about employees ?
Alessandro Pasetti
March 20, 2015 at 2:12 pmI think those are all legitimate questions, Sam.
In truth, the way it looks Ceva employees will likely have to pay a high price for poor management.
All the best,
Alessandro Pasetti
John
March 22, 2015 at 7:18 pmYou can have the greatest business, but if you pay
so much for it that you have to pay much more money
to the bank than you can make, you are dead in the
water.
The first time that this became critical was in 2012
and the company tried to cut costs but destroyed the
freight business. It did not help and the bondholders
had to become shareholders.
Now the company will probably have to sell off parts of the business
to buy time. 2 billion debt, 2 billion cumulated loss,
400 million loss. The debt is in dollars and the dollar
continues to rise.
Sam
March 23, 2015 at 11:05 pmI would question cluster appointments of leaders – on what basis – are they experienced turnaround managers with proven projects?
I feel sorry for trapped shareholders – they need to throw more cash in down the road.
Why does somebody need to buy this co when you can just pick up customers (you are not buying any asset and what goodwill do they have?)?
Gianfranco
March 24, 2015 at 3:43 pmSorry for the shareholders? The private equity made a lot of money. Buying junk bonds at 30 cents in the dollar and charging 12% interest to CEVA gives a return of 12/30 or 40% per year.
Heads I win, tail you lose.
Alessandro Pasetti
March 26, 2015 at 12:15 pmIn fact, there’s little value in the equity, and most of its enterprise value, or take-out value in this instance, will be represented by net debt.
Best,
AP
Keith
April 17, 2015 at 8:28 amI really hope that CEVA can ‘come out’ of their current finance situation fast…
Really hope that all my ex-colleagues in CEVA is all well and good.
After all, work & life balance.
Be Happy and Healthy always!
KP
Alessandro Pasetti
April 17, 2015 at 8:44 pmHi Keith,
It’s hard to say what’s going to happen next (not sure you saw the recent announcement this week about additional disposals), but we obviously share your feelings.
All the best,
AP
Roberto
August 06, 2015 at 4:26 pmI am curious about this “17 regional clusters” strategy. Can anyone tell me where these 17 clusters are located?