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HSBC buys Silicon Valley Bank’s arm for £1

In today’s top stories, HSBC rescues Silicon Valley Bank’s UK arm, analysts see 52% upside in chip designer Alphawave Semi and Carl Icahn prepares for a proxy fight at Illumina. Meanwhile, Citi analysts are bullish on solar stocks and Sanofi buys Provention Bio for $29bn.

HSBC buys Silicon Valley Bank UK

The UK’s start-up sector breathed a huge sigh of relief Monday morning after HSBC [HSBA.L] rescued the UK division of SVB. The deal — worth £1 — means depositors’ money will be protected. Russ Shaw, founder of Tech London Advocates, told Bloomberg that a collapse would have “decimated” the sector as he estimates 40% of UK start-ups have accounts or links to SVB.

Icahn takes on Illumnia

Billionaire activist Carl Icahn is set to wage a proxy fight against Illumina [ILMN]. The gene sequencing company’s acquisition of Grail in 2021 without regulatory approval has cost shareholders approximately $50bn, Icahn argues. The American financier plans to nominate three people to the board “before the reckless decision making escalates into a no-return situation”, he wrote in a letter seen by The Wall Street Journal. Illumnia has asked its shareholders to vote against Icahn’s nominations. 

Barclays’ upside for UK chip designer

A small player in the chip industry, Alphawave Semi [AWE.L], has caught the attention of Barclays analysts Simon Coles and Rohan Bahl, who have initiated coverage with an ‘overweight’ rating and a price target of £1.60, implying an upside of 52.4%. In a note to clients seen by CNBC, the analysts wrote that their bullish outlook was based on “Alphawave’s leading IP position within the rapidly growing data centre space, which should drive sales and profit growth”.

Citi’s solar energy picks

As countries continue to ramp up clean energy investments and transition away from fossil fuels, Citi analysts expect solar stocks to be the main beneficiaries of this “rapid and transformational change”. Solar is “faster to install than other energy sources, and is a steadier energy generator than wind and hydro,” the analysts wrote in a note seen by CNBC. Their top picks are companies focused on commercial solar projects, including Enphase [ENPH], SolarEdge [SEDG] and Shoals Technologies [SHLS].

Sanofi buys Provention Bio for $29bn

Biopharmaceutical firm Provention Bio [PRVB] skyrocketed 265% pre-market Monday on news that Sanofi [SAN.PA] is acquiring it for $2.9bn or $25 per share. The deal will give Sanofi access to Provention Bio’s Tzield, the only FDA-approved treatment that can delay the onset of type 1 diabetes. "Given our existing partnership and complementary work in the diabetes and immunology spaces, we foresee a seamless integration and execution," Sanofi’s executive vice president Olivier Charmeil said in a statement.

Polymetal considers Kazakh switch

Shares in Polymetal [POLY.L] have been in a downward trend ahead of the release of its Q4 and full-year earnings on Thursday. The mining company announced in January that it intends to move its primary listing to Kazakhstan to help restore shareholder value. While a switch would allow its dividend programme to be restarted, there’s uncertainty about what it would mean for London-listed shares, which Berenberg analysts already deem severed from its business.

WANdisco’s US listing plans in doubt

Fraudulent irregularities have been uncovered in WANdisco’s [WAND.L] books. The company has revised its revenue expectations for 2022, down from $24m to $9m and the data activation company has “no confidence” in its bookings expectations for the year. The news last week came just days after it announced it was considering a US IPO – its London shares are currently suspended. Paddy Power owner Flutter [FLTR.L] is also eyeing a US listing.

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