Private Markets Sector
Private equity keeps eating London's public markets while regulators and short sellers circle two high-stakes deals.
Thames Water's private lenders are throwing everything at the wall to stop the new UK government from taking the company public—offering the government veto power over major decisions (a 'golden share') plus letting local authorities have a bigger say. Think of it like a parent trying to negotiate with a teenager: instead of losing control entirely, the lenders are saying 'we'll give you decision-making power over the big stuff.' The catch is huge: if the government nationalises anyway, taxpayers could face a multi-billion-pound bill to repay all the debt, since previous cases show lenders pursue full payment when that happens. The government hasn't said yes yet, citing its preference for greater public control of essential services.
The UK government contractor Mitie is being taken private after 37 years on the London stock exchange, sold to OCS Group (owned by private equity firm Clayton, Dubilier & Rice) for £3.1 billion at 221.6p per share—a 46.8% premium to Monday's close. This is like a mid-sized family business getting scooped up by a bigger fish; Mitie's 84,000 staff will now work for a private-equity-owned operation alongside OCS's 135,000 people. The deal is another blow to London's listing market, which has seen Intertek, easyJet, Beazley and Schroders also agree to takeovers this year, all heading for private ownership where quarterly earnings pressure and stock-market scrutiny disappear.
SpaceX announced its first earnings report as a public company will drop August 4, a date that also unlocks the floodgates: insiders can start selling 20% of their eligible locked-up shares (up to 911.5 million shares) starting August 6, with an extra 10% potentially freed if the stock stays 30% above the $135 IPO price. The stock bounced 7% on the news, trying to end a seven-day losing streak, though it's still down 43% from its June intraday peak of $225.64. This is like having your bedroom key locked for months, then suddenly being told on a specific date you can start opening the door—smart investors wonder if insiders will rush to the exit with massive share sales, flooding the market and pushing the price down further.