The company is offloading its bleach and vinyl-related chemicals to smaller rival Olin using the esoteric reverse Morris Trust structure. The valuation looks solid, especially considering the tax savings. Yet investors should remain wary given the history of such complex deals.
The likes of Uber and Airbnb are rising fast. A new report projects, for example, the new breed of lodging services alone will grow nearly 20-fold over the next decade, to over $100 bln of bookings. Sharing is also cutting prices. The effects could elude official GDP figures.
Big U.S. lenders scarcely mentioned the risk in their annual meeting documents in 2014. Since then, though, Jamie Dimon’s firm was hacked and cybersecurity has surged up the agenda. Wells Fargo and Citi said more in this year’s proxies, but JPMorgan could set a new standard.
Kraft Heinz is the third time the Sage of Omaha and the trio behind AB InBev have joined forces, after swoops on the ketchup maker and Tim Hortons. The partners’ patience, financial firepower and industry experience give them big advantages. Bigger deals may lie down the road.
Many American parents and teenagers believe a top-flight university degree is a necessary ticket to success. A new book tries to calm them down. The sentiment is comforting, but the statistics don’t quite support the meritocratic message. The Ivy League still gives a big edge.
JPMorgan and 15 other banks paid Fannie Mae and Freddie Mac $18 bln to settle home-loan fraud charges, yet the Japanese lender is fighting back at trial. It’s a risky move that may prove shrewd after U.S. court rulings this week. It isn’t a requirement to roll over for Uncle Sam.
A $13.7 bln leveraged buyout of the U.S. Spanish-language broadcaster in 2007 ran headlong into an ad bust. A little pluck, in the form of a savvy deal with Televisa, and some luck, thanks to an unexpected source of revenue, turned things around. A decent payday now awaits.