Guy Hands' Deutsche Annington comeback falls victim to market turmoil

 

Stock market turmoil today claimed the scalp of one of Europe’s biggest IPOs in recent years, dashing hopes of a €1 billion (£850 million) comeback from private equity mogul Guy Hands.

Deutsche Annington, Germany’s largest residential landlord, had been due to list in Frankfurt today but the  launch — which would have valued the company at  11 billion including debt — was pulled at the eleventh hour by Hands’ Terra Firma vehicle due to “persistent adverse market conditions”.

Terra Firma had been hoping to use part of the €1 billion expected to be raised from the Deutsche Annington listing to return money to investors ahead of launching a new fund.

The decision also comes after a month of mayhem in global markets, triggered by Federal Reserve chairman Ben Bernanke’s signals that the US central bank is ready to slow the pace of its stimulus programme for the world’s biggest economy.

The FTSE 100 sank 1.6% today as investors also fretted over the renewed spectre of eurozone turmoil. Germany’s Dax index has lost 8% since May.

Bailed-out Portugal has seen two Cabinet ministers resign over harsh budget cuts this week, while Greece is being given a three-day ultimatum to spell out how it will deliver austerity measures or face an end to aid payments.

Markets were also shaken by weak data from China and continued political chaos in Egypt, which is pushing up the cost of oil. IG analyst David Madden said: “It looks as if we could be headed for another summertime crisis in the eurozone, as Portugal’s government crumbles and bond yields spike. Combine this with a political crisis in Egypt and yet more bad news from China and you have the recipe for a very choppy day on the markets.”

Hands’ move to pull the float comes as a huge setback for the Guernsey-based financier, who is struggling to rebuild his reputation after a disastrous £4 billion takeover of the music retailer EMI in 2007.

Experts will now be watching closely to see whether Hands is able to offload wind farm operator Infinis and Irish gas company Phoenix over the coming months. He has also appointed bankers to look at selling or floating Odeon, the cinema group.

One former Terra Firma investor said today: “The markets are sketchy at the moment and it’s no surprise to see this being pulled. The only exit route at the moment seems to be the IPO market and even that’s a gamble at the moment.

“In terms of Hands, there’s no doubt this would have helped his cause but he has a loyal band of Asian followers so it’s hard to write him off. I doubt many of the other investors burnt by EMI will be back to support him though.”

Sport
Premier League Live
footballLIVE Follow all the Premier League action as it happens
News
The slice of Prince Charles and Princess Diana's wedding cake and the original box from 29 July 1981
newsPiece of Charles and Diana's wedding cake sold at auction in US
Life and Style
3D printed bump keys can access almost any lock
gadgets + echSoftware needs photo of lock and not much more
News
James Argent from Towie is missing, police say
peopleTV star had been reported missing
PROMOTED VIDEO
Arts and Entertainment
Gregg Wallace in Summer's Supermarket Secrets
tv All of this year's 15 contestants have now been named
News
i100(and it's got nothing to do with the Great British Bake Off)
Arts and Entertainment
Inside the gallery at Frederick Bremer School in Walthamstow
tvSimon Usborne goes behind the scenes to watch the latest series
Life and Style
A picture taken on January 12, 2011 shows sex shops at the Paris district of Pigalle.
newsThe industry's trade body issued the moratorium on Friday
Arts and Entertainment
Could we see Iain back in the Bake Off tent next week?
tv Contestant teased Newsnight viewers on potential reappearance
Life and Style
Silvia says of her famous creation: 'I never stopped wearing it. Because I like to wear things when they are off the radar'
fashionThe fashion house celebrated fifteen years of the punchy pouch with a weighty tome
News
ebooksAn evocation of the conflict through the eyes of those who lived through it
News
i100
Voices
The Ukip leader has consistently refused to be drawn on where he would mount an attempt to secure a parliamentary seat
voicesNigel Farage: Those who predicted we would lose momentum heading into the 2015 election are going to have to think again
Arts and Entertainment
Cara Delevingne made her acting debut in Anna Karenina in 2012
film Cara Delevingne 'in talks' to star in Zoolander sequel
Sport
Mario Balotelli pictured in his Liverpool shirt for the first time
football
News
i100
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

Network Engineer (CCNP, CCNA, Linux, OSPF, BGP, Multicast, WAN)

£35000 per annum: Harrington Starr: Network Engineer (CCNP, CCNA, Linux, OSPF,...

DevOps Engineer (Systems Administration, Linux, Shell, Bash)

£50000 per annum: Harrington Starr: DevOps Engineer (Systems Administration, L...

Data Scientist (SQL, PHP, RSPSS, CPLEX, SARS, AI) - London

£60000 - £70000 per annum: Harrington Starr: A prestigious leading professiona...

Financial Technical Consultant (C++, C#, Finance, MSc, PhD)

£50000 per annum: Harrington Starr: Financial Technical Consultant (C++, C#, F...

Day In a Page

Ukraine crisis: The phoney war is over as Russian troops and armour pour across the border

The phoney war is over

Russian troops and armour pour into Ukraine
Potatoes could be off the menu as crop pests threaten UK

Potatoes could be off the menu as crop pests threaten UK

The world’s entire food system is under attack - and Britain is most at risk, according to a new study
Gangnam smile: why the Chinese are flocking to South Korea to buy a new face

Gangnam smile: why the Chinese are flocking to South Korea to buy a new face

Seoul's plastic surgery industry is booming thanks to the popularity of the K-Pop look
From Mozart to Orson Welles: Creative geniuses who peaked too soon

Creative geniuses who peaked too soon

After the death of Sandy Wilson, 90, who wrote his only hit musical in his twenties, John Walsh wonders what it's like to peak too soon and go on to live a life more ordinary
Caught in the crossfire of a cyber Cold War

Caught in the crossfire of a cyber Cold War

Fears are mounting that Vladimir Putin has instructed hackers to target banks like JP Morgan
Salomé's feminine wiles have inspired writers, painters and musicians for 2,000 years

Salomé: A head for seduction

Salomé's feminine wiles have inspired writers, painters and musicians for 2,000 years. Now audiences can meet the Biblical femme fatale in two new stage and screen projects
From Bram Stoker to Stanley Kubrick, the British Library's latest exhibition celebrates all things Gothic

British Library celebrates all things Gothic

Forthcoming exhibition Terror and Wonder: The Gothic Imagination will be the UK's largest ever celebration of Gothic literature
The Hard Rock Café's owners are embroiled in a bitter legal dispute - but is the restaurant chain worth fighting for?

Is the Hard Rock Café worth fighting for?

The restaurant chain's owners are currently embroiled in a bitter legal dispute
Caribbean cuisine is becoming increasingly popular in the UK ... and there's more to it than jerk chicken at carnival

In search of Caribbean soul food

Caribbean cuisine is becoming increasingly popular in the UK ... and there's more to it than jerk chicken at carnival
11 best face powders

11 best face powders

Sweep away shiny skin with our pick of the best pressed and loose powder bases
England vs Norway: Roy Hodgson's hands tied by exploding top flight

Roy Hodgson's hands tied by exploding top flight

Lack of Englishmen at leading Premier League clubs leaves manager hamstrung
Angel Di Maria and Cristiano Ronaldo: A tale of two Manchester United No 7s

Di Maria and Ronaldo: A tale of two Manchester United No 7s

They both inherited the iconic shirt at Old Trafford, but the £59.7m new boy is joining a club in a very different state
Israel-Gaza conflict: No victory for Israel despite weeks of death and devastation

Robert Fisk: No victory for Israel despite weeks of devastation

Palestinians have won: they are still in Gaza, and Hamas is still there
Mary Beard writes character reference for Twitter troll who called her a 'slut'

Unlikely friends: Mary Beard and the troll who called her a ‘filthy old slut’

The Cambridge University classicist even wrote the student a character reference
America’s new apartheid: Prosperous white districts are choosing to break away from black cities and go it alone

America’s new apartheid

Prosperous white districts are choosing to break away from black cities and go it alone