Mitsubishi is backing a Singapore-listed trader bashed by short-sellers, paying $1.1 bln at a big premium. Noble needs such a vote of confidence. But the Japanese group is actually endorsing Olam – a firm supported by Temasek that has been spared the worst of the commodity rout.
Cinda Asset Management started as a dump for dodgy bank loans but expanded into funds, insurance and brokerage. Now it’s looking to swallow Hong Kong lender Nanyang for around $8.8 bln. At more than twice its own book value, Cinda needs many benefits to make the deal stack up.
A judge says David Murdock duped shareholders, independent directors, lawyers and bankers when he took the produce vendor private two years ago for $1.6 bln. The deceit will cost him $150 mln. It’s also a sad reminder that even carefully vetted deals can be rotten at the core.
GDP expanded at a 3.7 pct pace in the second quarter and 2.7 pct year-on-year. The jobs market looks steady. For central bankers like the Fed’s Bill Dudley, that ought to be more “compelling” than the now-arrested slide in shares. Zero interest rates are past their sell-by date.
War-torn Ukraine has agreed a 20 percent haircut with a group of rebellious creditors. That’s half the loss Kiev originally wanted. Yet it’s not much of a victory for lenders either: with the economy in tatters and doubts continuing, creditors will be lucky to escape another hit.
The tumbling oil price has raised fears that Shell shareholders might balk at the $70 billion the Anglo-Dutch energy group agreed to pay for smaller rival BG. While the premium may now look bigger, so should the cost savings, even now that black gold has lost its shine.
The selloff has brought an abrupt end to a record-breaking run for share sales in the People’s Republic. This will hurt local brokers, which dominate onshore listings, more than foreign banks. A sharp slowdown in Chinese M&A, up 70 pct so far this year, also looks inevitable.
Troubled 1Malaysia Development Berhad denies a state-backed fund is pulling a $5 billion lifeline. Abu Dhabi’s relationship with 1MDB has become an embarrassment, and Malaysia’s sliding currency complicates the bailout. But walking away would make things worse for the Gulf state.
The soft-drinks giant has done more than many corporations to nurture water resources. Now CEO Muhtar Kent reckons he can hit Coke’s goal of replenishing every liter it uses five years early. But the company’s claim that it will be water neutral doesn’t yet pass the taste test.
The U.S. investment bank joins a long list of counterfeits that includes Apple stores, police stations and British villages. They’re easy to mock, but also veil a broader readiness to bend rules in search of profit. Properly channelled, that ingenuity and pluck could be powerful.
Equities are rallying after a Fed official cast doubt on the need for a September rate rise. China’s slowdown and sliding commodities may warrant circumspection among global central bankers. But market gyrations don’t. Monetary policy inaction should be for the right reasons.
China’s slowdown and weaker currency have hit share prices of bauble-peddlers LVMH and Swatch. The hunt is on for luxury’s next hotspot. India and Brazil show promise, but a mix of scale, rising incomes and inequality is elusive. Better opportunities may be closer to home.
Wang Jianlin’s Wanda group will buy the operator of Ironman events from its private equity owner for $650 mln. Endurance sports are booming. But turning China’s newly affluent onto day-long stints of running, swimming and cycling looks harder than luring them into Wang’s cinemas.