Tuesday newspaper round-up: Truth Social, Thames Water, Presidio
The value of Donald Trump’s stake in Truth Social fell by more than $1bn on Monday after the social media company revealed it lost $58.2m last year and an auditor disclosed “substantial doubt” over its ability to continue operating. Shares in Trump Media & Technology Group, the owner of Truth Social, dropped 21.5% as investors scrutinized the fundamentals of its business. The former president’s vast stake in the firm was worth about $4.88bn on paper after its extraordinary stock market debut last week . After Monday’s sell-off, it was valued at about $3.83bn. – The Guardian
Thames Water has hired the restructuring firm that worked on the special administration of Bulb Energy as it scrambles to stave off nationalisation. The crisis-stricken water firm has appointed advisers at Teneo as it confronts an imminent financial crisis. Concerns are growing that the UK’s largest water company, which serves 15 million people, could be taken over by the Government in a special administration amid a standoff between its shareholders and the water industry regulator. – The Telegraph
US investment firm Clayton, Dubilier & Rice has agreed to buy IT business Presidio from UK rival BC Partners, according to several people familiar with the details, in the latest sign that private equity dealmaking is starting to come back to life. The investment, which values Presidio at around $4bn, comes after a significant slowdown in the past 18 months as the buyout industry, which relies on debt to acquire businesses, felt the effects of higher interest rates. – Financial Times
A group of companies that received £9 million in taxpayer funding via Rishi Sunak’s Future Fund is on the brink of collapse after the government accused them of “breaches” of scheme rules. Several businesses part-owned by Nova Group Holdings, a start-up investment group backed by Sir Terry Leahy, are “insolvent” after the state-owned British Business Bank called in their loans, administrators have said. – The Times
Up to 1.6 million more pensioners will be paying income tax within four years as a result of Conservative stealth raids, new analysis has revealed. As many as 9.3 million older people will be paying the tax by 2028 after the Government froze the threshold at which people start to pay. Currently, 8.5 million pensioners pay income tax – but analysis by the House of Commons Library has found that the frozen threshold means an extra 1.6 million will pay the tax than would have done if the threshold had risen along with inflation since 2021. – The Telegraph
A consortium of high-net-worth individuals including Justin King, the former chief executive of J Sainsbury, has raised £50 million to seek acquisitions in the premium restaurant sector. Hestia Hospitality, named after the Greek goddess of home and hospitality, has completed three small deals but is in “heads of terms” to buy two bigger businesses as it targets £100 million of revenues within three years. – The Times