Stripe and Advent launch $53bn bid for unresponsive PayPal
A landmark $53bn takeover approach for PayPal by Stripe and Advent International highlights a shifting payments landscape, while surging AI demand lifts ASML and Middle East tensions push oil higher.
Stripe and Advent International have submitted a $53bn joint takeover proposal to PayPal, offering $60.50 per share in a deal that would keep the company intact under equal ownership. The bid, backed by roughly $50bn in committed bank financing, follows an initial approach in early April but has so far gone unanswered by the California-based group. PayPal shares surged 15% in pre-market trading on the news.
The aggressive move targets a pioneer of digital payments that has struggled to maintain momentum against newer rivals like Apple Pay and Google Pay. Slowing growth has eroded much of the valuation PayPal achieved during the pandemic, making it an attractive target for a combined bid that avoids a breakup.
Tech demand counters wider market weakness
In the technology sector, Dutch chip-making equipment giant ASML provided concrete evidence that the artificial intelligence investment cycle remains intact. The company raised its full-year net sales forecast to between €43bn and €45bn, up from a previous range of €36bn to €40bn, after second-quarter sales climbed to €9.3bn. Chief executive Christophe Fouquet noted that AI investments are driving demand for both advanced logic and memory chips.
The results offered a reprieve for tech investors worried about a potential AI bubble, pushing ASML shares up 5.7%. Analysts highlighted that chipmakers are not only ordering new machines but heavily upgrading existing equipment, indicating a push to maximize current capacity.
Geopolitics and growth fears weigh on equities
European equities retreated, with the FTSE 100 falling 0.78% and Germany’s Dax dropping 1%. The risk-off mood was driven by escalating Middle East hostilities, with Brent crude jumping 1.5% to $86 a barrel as the US and Iran exchanged attacks. Weakness was compounded by data showing Chinese economic growth slowed to 4.3%, missing Beijing's target range.
The geopolitical conflict is rippling through corporate supply chains, with UK homebuilder Barratt Redrow warning of 3% to 4% build cost inflation driven by rising energy prices. Barratt still completed 17,667 homes and announced a £400m shareholder return, but its forward sales dipped slightly. In another sign of domestic corporate stress, Thames Water confirmed it holds just £515m in cash to survive until year-end as it scrambles to avoid temporary nationalisation under an £18.5bn debt pile.
